The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing


Subject:  Converting my 401K-- Big Loss!!! Date:  12/16/1998  11:29 AM
Author:  BBQFool Number:  7334 of 96306

I am desperately in need of some help in understanding the process of converting my 401k from one company to another. I was recently traded from one company to another as part of an acquisition. At the same time they moved my 401k from Putnam to Cigna who manages the 401k for the new company. On 9/30 my 401k was valued at $137k on my quarterly statment from Putnam. On 10/31, the date they transitioned the account from Putnam to Cigna, it should have been valued at $153k based on the closing market prices from 10/30. However, they only transferred $65k from Putnam to Cigna. Apparently, according to Putnam, I have sufferd an $88k loss as part of the 'conversion'. The Putnam rep on the phone tried to explain it as a loss on shares I had purchased at a higher price. Wouldn't that have already been taken into account on the market valuation on my statement? Even if the investments had actually declined in value, which I don't believe they have, that loss should have been reflected in my ending market value on my quarterly statement. If I buy a stock for $20 and now it is only worth $10, its market value is $10. I should still get $10 when I sell it. The way I understand this conversion process, I only get $4.25. My account has basically been devalued to the point where I am only getting back my contributions and the matching contributions of the company with almost no growth to show for my years of investing. Can someone please help me understand this??? (I have already posted this to the 401K board, but I need all the help I can get!)

Copyright 1996-2019 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us