E*TRADE (ETFC) recently introduced OneStop Rollover, an online program that makes it faster and easier for individual investors to invest their 401(k) savings from a previous employer into a professionally-managed portfolio. The program is first designed to make the transition process much easier, but it also addresses investors growing interest to have a professional review their investment allocations.
This new program introduction comes on the heels of a recent E*TRADE study that showed 37 percent of adults in the United States would like to work with a professional to help manage their savings account but don’t think they have enough money to do so. Even more telling is a part of the survey that shows 56 percent of adults think that managing an IRA required more financial know-how than they have right now.
Lena Haas, SVP of Investing and Retirement at E*TRADE, explained that this new program would help the many investors who wish to move their 401(k) away from a previous employer. She said, “Many investors realize that leaving a 401(k) at a former employer may not be in their best interests, however they are reluctant to start the rollover process because they are unaware of their choices or overwhelmed by the steps involved.” Along with the new program, E*TRADE will have dedicated Rollover Specialists to further simply the whole process.
The introduction of OneStop Rollover coincides with the implementation of a new federal law that requires full fee disclosure to each individual 401(k) account. High fees can hit a portfolio very hard, and E*TRADE is clearly trying to step in and provide more low cost alternatives to the average investor.
Click here to read the full press release from E*TRADE.