The Great Retirement Treasure Hunt: Uncover Billions in Lost 401ks and IRAs!

Greetings to my wonderful community! This is Tony from Advanced Wealth Management, and today we're embarking on an adventure—a treasure hunt, if you will. But we're not talking about pirates, gold, or sunken ships. We're talking about something far more relevant to your life: your forgotten retirement funds.

According to recent data, as of May 2023, there are a jaw-dropping 29.2 million forgotten 401k accounts in the United States. These accounts hold a staggering $1.65 trillion in assets. Yes, you read that right—trillion with a 'T'! And if you think that's alarming, consider this: the number of forgotten 401ks has surged by over 20% since May 2021.1

The High Stakes of Forgotten Funds

Let's not mince words. Ignoring these lost assets is like leaving a treasure chest buried in the sand. You're essentially giving up on resources that could make your retirement years far more comfortable and secure. As Benjamin Franklin wisely said, "A penny saved is a penny earned." In the context of retirement, those "pennies" can add up to a whole lot more.

Your Five-Step Treasure Map to Recovering Lost Retirement Funds

1. X Marks the Past Employers

The first step in any treasure hunt is to know where to look. If you've switched jobs a few times—which is increasingly common these days—reach out to your past employers. Here's how they might handle your forgotten funds based on the amount:

• Up to $1,000: They can issue a check to your last known address. If you've moved, you'll need to request a new check.

• Between $1,000 and $5,000: Employers can automatically roll these funds into an IRA. You'll need to contact them to find out how to access this account.

• Over $5,000: Your funds are likely still in your old employer's plan. You should consider rolling these over to an IRA that you actively manage.

2. The National Treasure Database

If you've moved residences and didn't inform your past employers, your funds might be turned over to the state's unclaimed property office. You can search for your name on the National Association of Unclaimed Property Administrators (NAUPA) website or your state-specific unclaimed property office to discover any forgotten retirement funds.

3. The Department of Labor's Treasure Chest

If your past employer went out of business or terminated their retirement plan, don't despair. The Department of Labor (DOL) has an abandoned plan databaseol.gov) where you can find information about unclaimed retirement benefits.

4. The PBGC Lifeline

The Pension Benefit Guaranty Corporation (PBGC) is another excellent resource. If you've lost track of a defined benefit pension plan, the PBGC can help you find it. Visit their website for more information.

5. The Forgotten IRAs

Last but not least, don't forget about IRAs. Go through your old bank and investment statements, and reach out to financial institutions you've worked with in the past. They can help you identify any dormant or inactive IRAs.

The Eighth Wonder of the World: Compounding

Albert Einstein once called compounding the eighth wonder of the world. Even if you haven't contributed to these accounts in years, the power of compounding can turn your small stash into a treasure trove over time.

Need a Guide on Your Treasure Hunt?

Navigating the maze of lost retirement funds can be daunting. But remember, you're not alone. At Advanced Wealth Management, we've been guiding clients through the complexities of financial planning for over two decades. We're here to help you reclaim your financial treasures and make your retirement dreams a reality.

As the Bible says, "For where your treasure is, there your heart will be also" (Matthew 6:21). So let's find that treasure and secure your heart's desires for a fulfilling retirement.

Knowledge is Power! Reclaim your forgotten retirement funds and let the eighth wonder of the world—compounding—turn them into a treasure chest for your golden years.

Financial Disclosure: This blog is for informational purposes only and should not be considered financial advice. Consult with a financial advisor for personalized advice. Advanced Wealth Management is a registered investment advisory firm in the state of Florida.