My wife’s investment assets are about to be switched over to another brokerage firm. She’s always had an account at TD Ameritrade and when she changed jobs, we felt it was the natural choice to open a traditional IRA account there.
When she called to checkup on the status of the transfer a week after the check from her former company was supposed to arrive at the brokerage firm, she was greeted by what I can only assume is a salesperson. From what my wife told me, the conversation after they told her the money hasn’t arrived yet went something like this.
Brokerage: We can help you with investment options and make sure that you have a well thought out plan to tackle your future.
Emma: Oh I’d like that, how do we get started?
Brokerage: Oh we… actually, how much money is being transferred into the 401k?
Emma: Oh about $8000 since I didn’t work there for that long
Brokerage: oh………… for that amount of money, you might as well not invest. Good bye.
Yes, he actually hung up. I’ve been resisting about posting anything bad about brokerages, even when someone emailed me and told me that they lost $50,000 in one day just because they couldn’t log into TD Ameritrade’s website to cover their short position recently. I felt that it was hard for the brokerage to give any money back for that person because it was impossible for the company to know which claims are true and which are false. However, there is absolutely no excuse for that person to hang up like that. $8,000 is more than enough money to be invested in the stock market. There is absolutely no reason for that person to discourage Emma in that way. Even if it was $800, everyone should be encouraged to save and invest as long as it’s for the long term.
I will be looking for another place to move all her assets. They have lost our business.