I was excited to see the annual 401K statement from one of my former employers had arrived. I was expecting a high return on my current investment, just like last year.
Sure enough, the return was exponential. I smiled, but the smile soon turned into deep laughter.
I had earned $.01 during the past year, and my total balance was a staggering $.03. Not bad. I wish I could get those kinds of returns on all my accounts.
Three years ago, when I was laid off from said pristine company, I transferred all the funds to another account. Evidently a penny was missed, and it has been slowly starting a family.
I thought of the cost of generating and sending the statement to me, and how the company that services the 401K is losing money on me. I thought about calling them and asking them to issue me a check, but why go through all that trouble? It’s their problem. After all, my investment is growing.
The question is: Why don’t they have a low balance trigger that flags these sorts of issues? It probably doesn’t happen that often, but how would the company know? Why should I tell them?
I’m curious to see how much my money will grow over the years, and whether the company will ever realize the problem. The funniest part?
60% of the money is invested in stocks and 40% in bonds. I’ve heard of penny stocks, but penny bonds? Go figure.
[This was resolved in 401K Woes Resolved]