Many 401(k) accounts with balances of $5,000 or less have been overlooked.
This Week's Focus: Unclaimed Funds
Before jumping into this week's financial insights, let's pause to acknowledge some serious global events. Recently, we witnessed devastating occurrences in Haiti and Afghanistan, including a significant earthquake and political upheaval. In such troubling times, many are left wondering how they can contribute to relief efforts. Fortunately, there are credible organizations actively assisting those affected.
Returning to Work + Establishing Boundaries
You might have noticed a surge of discussions about office attire as we transition back to in-person work. Perhaps you've browsed popular stores or websites to find outfits that help you feel prepared. But maybe it's wise to hold off on those purchases.
(Just to clarify, I've been in your shoes. I refreshed my wardrobe for Spring 2020 events right before everything changed due to COVID. Eighteen months later and I still have unworn items, since I've relied on just a few Zoom-friendly tops.)
It seems we're not rushing back to our offices anytime soon. As reported by Chip Cutter, the longer remote work persists, the more many of us prefer it. A recent PWC study indicated that 41% of employees wish to continue working remotely indefinitely, a rise from 29% in January. Companies like Apple and Facebook have also delayed office returns.
Employers are concerned that prolonged remote work may lead to a disconnect, increasing the chances of their talent being lured away, especially in sectors like healthcare and technology.
The good news? If you enjoy working from home, you might get to keep that setup a bit longer. If not, consider refreshing your resume. Either way, ensure your home life remains separate from your work life—my chat with Terri Cole on setting firm boundaries is enlightening. And perhaps, wait a little longer before investing in office wear.
Are You Missing Any Funds?
It's a tantalizing thought. Whenever I feature this topic on TV, it garners significant interest. So, I decided to check missingmoney.com, a site backed by the National Association of Unclaimed Property Administrators. If you're curious, start broad—search using your last name and the states you've lived in. If your name is common, try your first initial too. While I didn't find anything, one of my children did. Quick search, satisfying result.
Yet that's not the only unclaimed money out there. With many changing jobs an average of 12 times during their careers, countless 401(k) accounts with under $5,000 remain unclaimed. According to 2013 estimates, this amounted to $8.5 billion, and surely it's more today.
Two new bipartisan congressional proposals aim to address this issue. They propose creating a database for lost workplace retirement accounts and proactively contacting owners of funds exceeding $1,000, similar to missingmoney.com.
This money is crucial. While 401(k) and IRA balances have soared recently, many are still facing financial challenges stemming from the pandemic. Research highlighted by Michelle Singletary in The Washington Post indicates that 51% of working adults feel the pandemic has hindered their ability to achieve long-term financial goals. The National Retirement Risk Index shows nearly half of American households may struggle to maintain their standard of living in retirement.
Credit or Debit: What's Your Choice?
It used to be that only gas stations charged more for credit card payments. However, more small businesses are now passing on credit card fees to customers. Five years ago, only 2% of small businesses did this; today, that figure has risen to 5%. Big companies often hide these costs within their price adjustments instead.
Travel Plans Impacted?
Lastly, cancellations are rising again due to concerns over the Delta variant. If you're unsure about an upcoming trip, Dr. Leana Wen offers guidance for making informed decisions regarding travel to weddings, family gatherings, or vacations.
