Latest news with #Savova
Yahoo
02-06-2025
- Business
- Yahoo
Delaying Your 401(k) Rollover Could Cost You $76K, Study Finds
Even though much of the financial world is now digitized, rolling over your 401(k) still often involves a more complicated process that can't be done online. Many plans require you to transfer funds via mail, which can lead to delays in getting your funds invested into your new account. Find Out: Read Next: While you might not think too much about the consequences of this lag time, it can lead to thousands of dollars in lost retirement savings, according to a new study conducted by PensionBee. Here's a look at how much you stand to lose due to delays in a 401(k) rollover. Putting off rolling over your funds and mail delays that are out of your control can have serious financial consequences, especially when you take a long-term view. According to the PensionBee study, even brief two- to eight-week market absences during rollovers can cost savers tens of thousands of dollars, particularly during periods of market volatility. The study found that for savers with a $100,000 401(k) balance, an eight-week processing delay could mean $76,000 in lost returns over 30 years. A $50,000 balance could experience a $38,442 loss due to an eight-week processing delay, and a $10,000 balance could experience a $7,688 loss. Even shorter-term delays can lead to significant losses — a two-week rollover delay could compound to a $37,512 loss over 30 years if you're starting with a $100,000 balance. Be Aware: As these figures show, delaying your 401(k) rollover can have significant financial consequences. But the risks of delaying a rollover go beyond lost returns. 'Everyone thinks they'd never forget a retirement account, but there are 30 million unclaimed accounts that tell us otherwise,' said Romi Savova, founder and CEO of PensionBee. 'For job-changers, each position can become another account left behind. The average person switches jobs 12 times, so the sheer volume of personal admin can be very difficult to manage.' Forgetting to roll over old accounts can make you subject to fees that can eat away at your savings. 'People are often unaware that there are fees associated with retirement accounts,' Savova said. 'While your employer may cover some or all of your fee burden while you're employed, that responsibility can shift entirely onto former employees, often with minimal notice.' If you have a 401(k) account with a balance of $7,000 or less, these fees can eliminate your entire savings. 'Employers can automatically force out small balances into poorly performing Safe Harbor IRAs, which can deplete balances entirely,' Savova said. 'These bad defaults are marked by high fees and low returns, often below 2%. If you don't act fast and have an account under $1,000, your employer may cash it out automatically, leaving you to foot the associated fees and tax penalties.' Rolling over a 401(k) can be a complicated task, but it's important to tackle it sooner rather than later. 'While the system needs to change, consumers can immediately take several steps to minimize downsides,' Savova said. 'First, take an active role in the process. Rolling over a 401(k) is a multistep process, and delays at any point can be costly. When it comes to retirement, time in the market is more important than timing the market — even a few weeks or months out can mean thousands lost over a lifetime.' If you're rolling a 401(k) balance from a former employer into a new 401(k), you may not have a lot of choices, but if you choose to roll into an IRA, make sure you are choosing your provider wisely. If possible, find a provider that offers digital-first solutions with automated tracking. 'The best providers will offer digital rollover solutions, avoiding checks in the mail, and excellent customer support when speaking with your old provider is inevitable,' Savova said. 'Customer-focused providers handle the paperwork burden, proactively follow up with your previous plan administrator and keep you updated throughout the process.' Also, pay attention to more than just fees when choosing a provider. 'While high fees over 1% should generally be avoided, also consider the customer support model and technological capabilities,' Savova said. 'The right provider becomes a partner in your retirement journey, not just a place to store your money.' More From GOBankingRates 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth This article originally appeared on Delaying Your 401(k) Rollover Could Cost You $76K, Study Finds
Gulf Insider
04-05-2025
- Business
- Gulf Insider
European Union To Ban Anonymous Crypto & Privacy Tokens By 2027
The European Union is set to impose sweeping Anti-Money Laundering (AML) rules that will ban privacy-preserving tokens and anonymous cryptocurrency accounts from 2027. Under the new Anti-Money Laundering Regulation (AMLR), credit institutions, financial institutions and crypto asset service providers (CASPs) will be prohibited from maintaining anonymous accounts or handling privacy-preserving cryptocurrencies, such as Monero and Zcash. 'Article 79 of the AMLR establishes strict prohibitions on anonymous accounts […]. Credit institutions, financial institutions, and crypto-asset service providers are prohibited from maintaining anonymous accounts,' according to the AML Handbook, published by European Crypto Initiative (EUCI). The AML Handbook. Source: EUCI The regulation is part of a broader AML framework that includes bank and payment accounts, passbooks and safe-deposit boxes, 'crypto-asset accounts allowing anonymisation of transactions,' and 'accounts using anonymity-enhancing coins.' 'The regulations (the AMLR, AMLD and AMLAR) are final, and what remains is the 'fine print' — aka the interpretation of some of the requirements through the so-called implementing and delegated acts,' according to Vyara Savova, senior policy lead at the EUCI. She added that much of the implementation will come through so-called implementing and delegated acts, which are mostly handled by the European Banking Authority: 'This means that the EUCI is still actively working on these level two acts by providing feedback to the public consultations, as some of the implementation details are yet to be finalized.' 'However, the broader framework is final, so centralized crypto projects (CASPs under MiCA) need to keep it in mind when determining their internal processes and policies,' Savova said. Click here to read more… Source Zero Hedge
Associated Press
19-03-2025
- Business
- Associated Press
PensionBee Empowers U.S. Savers With New Roth and Contribution Options
PensionBee, a leading online retirement provider, announced today the addition of Roth and Traditional IRA contribution capabilities to its mobile app. All users are eligible to make tax-advantaged contributions directly through the platform, granting greater flexibility and control over their retirement planning. PensionBee's U.S. app first launched in December 2024 and provides a streamlined solution for combining old workplace 401(k)s and IRAs into a modern retirement account. This most recent update harnesses simplicity to engage users around their retirement. With just a few taps, customers can now top up retirement accounts with pre-tax and post-tax contributions, all from within the app. 'We launched in the U.S. intent on placing retirement control back into consumers' hands,' said Romi Savova, CEO of PensionBee. 'Enabling Roth and Traditional IRA contributions is the next step toward that goal, and a timely one, as U.S. consumers struggle against a backdrop of confusing retirement solutions.' Best Retirement Management Platform The FinTech Breakthrough Awards program recently recognized PensionBee's innovation in the retirement space with an award for 'Best Retirement Management Platform.' PensionBee is a modern solution designed to help mass-market savers consolidate, manage, and keep saving for their retirement on their terms. PensionBee differentiates itself through its: Intuitive product offering, with a digital platform across the web and a mobile app Best-in-Class investment proposition, utilizing ETFs powered by State Street Personalized customer service, with a dedicated 'BeeKeeper' for each customer Educational resources, to help consumers make informed financial decisions 'We are honored to be recognized as the 'Best Retirement Management Platform' and proud to receive this external validation of our mission,' said Savova. 'The retirement industry has been slow to innovate, often leaving behind those who need support the most. This award acknowledges our commitment to developing intuitive technology that empowers individuals to take control of their financial futures, regardless of their investment experience or account size.' The FinTech Breakthrough Awards is the premier awards program founded to recognize fintech innovators, leaders, and visionaries worldwide. The 9th annual awards were among the most competitive, with over 4,500 nominations across categories. Rapid Growth in the U.S. Market PensionBee's expansion into the U.S. market has been met with strong customer engagement in just the first few months of operation, validating the strong market demand for simplified, transparent retirement solutions. With exclusive educational content and seamless contribution functionality— customers can achieve financial security with ease. PensionBee's mission is to democratize retirement planning, providing transparency and accessibility in an often opaque and underserved system. PensionBee continues to build on its strategic partnership with State Street Global Advisors (SSGA), offering customers access to a range of investment portfolios that use SSGA's model portfolios, exclusively consisting of SSGA-managed exchange-traded funds. In February 2025, PensionBee further strengthened its U.S. presence through a strategic partnership with SS&C Technologies to introduce a Safe Harbor IRA for employers and former employees. Under the leadership of CEO Romi Savova, PensionBee now manages over $7 billion in assets for more than 265,000 customers worldwide. By addressing over 85% of the global defined contribution market, PensionBee is revolutionizing retirement management, delivering financial wellness solutions that meet the needs of everyday savers. The updated app with Roth and Traditional IRA contribution capabilities is available immediately to all PensionBee customers. About PensionBee PensionBee is a leading online retirement provider, helping people easily consolidate, manage, and grow their retirement savings. The company manages over $7 billion in assets and serves over 265,000 customers globally, with a focus on simplicity, transparency, and accessibility. PensionBee Inc. is registered with the Securities and Exchange Commission as an investment adviser. We do not provide in-person advice. PensionBee Inc. (Delaware Registration Number SR20241105406) is located on 85 Broad Street, New York, New York, 10004. SOURCE: PensionBee Inc. Copyright Business Wire 2025. PUB: 03/19/2025 09:08 AM/DISC: 03/19/2025 09:08 AM
