IRA and 401K client funds at MF Global were less likely to be missed. Could this be some of the money that is unaccounted for?
Fairfax, VA (PRWEB) December 14, 2011
The Financial Success Institute announced today that it has formed a new blog resource to help individuals who may have held self directed IRA or self directed 401K money inside of MF Global and its affiliate Lind-Waldock and who cannot recover some or all of their money.
Founder and CEO of the Financial Success Institute, Richard Geller, today said, “IRA and 401K balances tend to just sit there. In many cases the owners of these accounts aren’t paying a lot of attention to what happens with them. And some of the self directed IRA and self directed 401K funds were held in the form of cash balances at MF Global and its affiliates including Lind-Waldock and customers cannot access this cash.”
Geller quoted a New York Times article citing testimony by Jon Corzine and CME Group's Duffy, “Terrence A. Duffy, executive chairman of the CME Group, told lawmakers that MF Global had used $175 million in customer funds to lend from one arm of the firm to another — an assertion that, on its face, may not be illegal — and that Mr. Corzine had known about it."
Geller pointed out that the same article cited individuals such as farmers who may have lost funds invested with MF Global. "It's not just farmers. It's individuals who hold self directed IRA or self directed 401K funds and who invest in futures. These people were holding balances in their brokerage accounts and now are wondering if they'll get their money back. And we are contacted by many folks who hold their money in other brokerages, balances in their self directed IRA or self directed 401K, who wonder if their funds are safe."
According to FinancialSuccessInstitute.org, the best place for cash to be held in an IRA or 401K is in an insured bank in a separate account. “It is probably safe enough to hold balances in brokerage accounts, but it is smarter to hold balances in banks because the FDIC insures the bank balances and this is much more clear than it is for money held in brokerage accounts.”
How can an IRA or 401K account holder be assured of their cash being there? Geller said, “best to have a 401K where you can be your own custodian. Since you are the custodian of your money you aren’t having to trust some third party to nearly this extent. It is much less likely your money will be lost in a self directed 401K. Especially when you hold the balances in an FDIC insured bank account.
Geller said that there are hidden dangers with self directed IRAs and that the Financial Success Institute has a special page it has set up to educate consumers. “All the consumer has to do is visit the FinancialSuccessInstitute.org MF Global is our money safe page and they can leave questions and comments and we’ll do our best to get answers.”
Geller was quick to add that someone who is missing money should pursue all legal and regulatory remedies. "We cannot do anything about MF Global misappropriating your money if that indeed happened. But if people get together and work hard to find out where their funds are, we feel that this can create pressure that could resolve the matter more quickly than otherwise."
Financial Success Institute helps people take a more active role in their retirement through alternative investments such as real estate and mortgage notes and gold ownership. Financial Success Institute specifically advises anyone to get expert help with their particular situation and not to rely upon any advice found on the Internet.