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Retirees Suffer in Rollover Boom

Some retirees who lost large portions of their 401(k)s after rolling over into IRAs are filing complaints about brokers enriched by their risky investments.

By John Hechinger, Bloomberg | Updated on June 17, 2014

Kathleen Tarr says AT&T Inc. employees used to look to her as “their de facto 401(k) expert.” Visiting their homes and offices, she advised them on their retirement plans as they called up balances on computer screens.

But Tarr actually worked for Royal Alliance Associates, a brokerage firm owned by insurer American International Group Inc. (AIG). She encouraged hundreds of departing AT&T employees to roll over their retirement money into the kind of risky high-commission investments that Wall Street’s self-regulatory agency warns against on its website.

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