economy
Retirement nest eggs are in jeopardy. SAFER Act is the answer
Americans saving for retirement often follow the “buy and hold” strategy, urging them to block out the daily volatility of markets, stick to long-term investment plans, and avoid playing stockbroker. The stock market’s growth over the last 15-20 years proves why that approach makes sense despite financial crises, geopolitical conflict, and fiscal showdowns.
TL;DR
- State governments can seize retirement assets through escheatment if accounts are not actively managed.
- Escheatment laws have shifted from reuniting owners with forgotten assets to a broad standard triggered by minimal inactivity.
- Walter Schramm lost $92,000 in market growth when Delaware escheated his Amazon stock.
- Ohio's budget included a provision to permanently seize unclaimed property for a new stadium, though an injunction paused it.
- The SAFER Act, a bipartisan bill, proposes a uniform national standard to protect securities ownership.
- States like Oregon, Illinois, Connecticut, Nevada, and Florida are advancing similar inactivity standards.
- Reforming state escheatment laws and passing the SAFER Act are crucial for protecting retirement savings.