Hello:
I have a question about so called “round trip” transactions. I have done this (by accident) without knowing about this policy. On the company’s website that mages 401K there is no info that I can find about this situation. I got a letter from them saying that I “engaged in excessive exchange activity” although at none of the occasions was anything intentionally. Obviously the amounts were small. Now they decided to “revoke my online trading privileges” for one year!! (not so sure what something I am paying for can be called a privilege. My questions to you:
1 How legal is this and what kind of privileges they have to do it? (including the time).
2. Can I fight this in any way?
3. Even if they can impose this shouldn’t be there a way for me to sell my investments in case of massive losses ONLINE instead of waiting for days
to do this via regular mail?
2007-02-12 05:55:03 · 3 answers · asked by Eu Lupu 2 in Business & Finance ➔ Investing
Sorry to say, but yes it is perfectly within the rules outlined when you bought into the fund...( those pages and pages that you just glance at before you hit " accept")
BUT... I'm fairly certain that you should have recieved a " warning " letter....did you " round trip" more than twice? three times?..... Even so...if you can get a phone number, and talk to a rep...sometimes by " playing dumb" and asking for " help" to protect your capital...they can either over-ride the revocation...or at least trade you into something conservative ( safer) for awhile.
IT'S worth a shot....good luck.
P.S. I know you're angry, but don't show it...play the " guy that needs help"......everyone likes to be a hero....but they'll turn on you if you start " demanding this and that!!!"
2007-02-12 16:36:05 · answer #1 · answered by jebediabartlett 6 · 0⤊ 0⤋
Yes, it is legal. Fund Managers have the right to refuse a trade at anytime. They discourage short term trading to protect the "fund" excess trading can cause the fund value to decrease. I worked for a large financial institution for seven years.
The policy is outlined in the funds prospectus which most of us do not read. You may be able to find more information regarding this on the IRS web site.
Remember your 401K is for long term investing. I am not in a position to give advice without knowing all the facts but most people that trade frequently end up selling low and buying high the best thing to do is choose a balanced portfolio mixture of stocks and bonds that you are comfortable investing in and let it go.
Good Luck.
2007-02-12 06:17:16 · answer #2 · answered by Sandra D 3 · 0⤊ 0⤋
If the 2008 Bush/Cheney PLUNGE interior the Rupert-Murdoch-owned Dow business to 6,900 would be while in comparison with the Obama-regulations' 14,seven hundred.80 Dow, then would desire to anticipate that 401k money owed are in very stable hands. The GOP's deregulation-brought about 2007-2008 financial equipment MELTDOWN did no longer help people's 401k's the two, i'm having a guess. what's with this unwillingness on the element of $multi-millionaires$ to pay their honest share of the sales (taxes) mandatory to maintain American stable and on a direction to finished restoration?
2016-09-29 00:30:57 · answer #3 · answered by intriago 4 · 0⤊ 0⤋