Thursday, July 23, 2009

FBC/Nationwide Exchange Out Form for 403(b)

From the FBCRetire.com website:

Outgoing Exchange Form

To obtain this form, please contact your FBC / Nationwide Retirement Specialist.

Use this form to transfer or exchange your FBC / Nationwide 403(b) account to another approved vendor.

Fax the completed form to (800) 597-8206.

You see, the FBC is going to require that you speak with one of their "registered reps" before they allow you to move money out of their 403(b) plan - they make money from the plan and have a vested interest in keeping you in the plan. Even if you somehow obtain a form on your own (which is the purpose of this post) you will probably receive a call trying to "save" the assets from leaving. Ironically, the representatives that are touted as CFP's and advisors are not allowed to give investment advice. Of course, this doesn't stop them from doing so. Last year a client of mine was given the advice of putting 25% in the American Growth Fund, 25% in American Capital World Growth and Income, 25% in one of the American Balanced funds and 25% in the Vanguard Short Term Bond Index. The "advisor" told my client that things could get bad.....yet my clients allocation to stocks was increased by this move (keep in mind I like Vanguard and American). So, FBC reps DO give advice, they just aren't supposed to and it DOESN'T appear to be very good.

If you want to get your money out of the FBC/Nationwide plan and don't want to talk with one of their "advisors", you can utilize this attached form (unless of course they change it.....at which point I'll find it and post again).

Complain to your employer that this practice of withholding forms so that an FBC paid advisor can try to talk you out of moving your money is unethical in my opinion and should be stopped.

Scott Dauenhauer CFP, MSFP, AIF

FBC - Outgoing Exchange Form
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