UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next
Author: Ma1colm Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76079  
Subject: 401(k) and Death Benifits Date: 12/24/1999 1:42 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Hi All,

I'm 31 and have in the last couple months been making my first ever contributions to a 401(k) plan. The company I'm working for is in the process of switching plan administrators from Norwest to New England Financial. As part of this I signed the Death benifit designation form, which finaly gets me to the meat of my question. When I was reading through this (and swearing profusly at the lack of a good index fund in the new plan) I discovered that my my wife will only receive an annuity based on 50% of whatever is the current value in holdings when I die. The annuity is for the rest of her life and it doesn't specify how that calculation is made (I'm still waiting for them to return my call about this). What gives? Is this standard? If it's my money when I put it in the investment, should't it all go to my Wife and/or Son? Is there a vehicle for preventing this immediate loss? The scenareo I'm imagining is this -- I die at age 60, and my wife who is 10 years older then I am can only reasonably expect 10 years of these annuity payments. I doubt that it will make up for the 50% hit on my investments. Please let me know if I should be raising the roof over in the HR office about this or would that be tilting at windmills.

Thanks,

Ma1colm
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Macro Economics

Ringing the NASDAQ Bell
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement