Some insurance agents breaking law with 401(k) rollovers
June 4, 2019 by Greg Iacurci
Rolling money out of a 401(k) plan to fund an insurance product, like an annuity or life insurance policy, can be a difficult, tense decision for retirees. After all, seniors are earmarking a large chunk of their nest egg.
Wink’s Note: “Source of funds” is a long-standing issue of concern regarding insurance-licensed only agents. Unregistered investment advice is WRONG. It is punishable by loss of license, fines, and even jail time depending on the state you are in. Insurance-licensed only reps should not be recommending the liquidation of any securities products. However, as a consumer, I made a decision to liquidate my 401(k), and roll it into an annuity; there is nothing wrong with that. I was not advised by any agent to do so- he merely completed the paperwork for the annuity to assist me. Completely legal and not in the least inappropriate. -sjm