What do you do when your retirement plan is being sold off?
Hartford announced this week they are selling off their retirement plans and also stopped selling annuities and and looking to sell off their life insurance division.
What do you do when the company goes through such a change? Look at the financials and check again perhaps a year later to see the new reflections of the merger or buy out and see how that affects the financial strength.
What if you Hartford or other company 401K is being discontinued? Generally your employer will have a new third part administrator set up and have new investment options. Do not be surprised if they push Target Date Funds in the meeting. Why? It helps reduce the liability to employer and others involved in such as sponsored investment company. Another consideration for you is check and see if there is a brokerage window that would allow you outside financial advisor and expanded products as well?
Don't panic over the change this may be a blessing to you and your money in the process. Seek advice and get inform of all your options: Rollover now? Partial access now? New plan may in fact provide better expense control as many plans are being watched and pressure is on employers to provide more efficient investments and expenses.
Lastly, if your plan is changing realize there may be other significant changes being made such as matching dollars of vesting or other provisions and listen and ask questions and get clear on the changes.
If all of this bores you then consider getting it reviewed by a professional and pay a fee to get more objective advice.