Intereseting transaction with Fidelity

So, have been with Fidelity for close to 30 years. Now being retired, I occasionally take some money out of my accounts. Yesterday, I called to make a small withdrawl to be transferred to my bank account. The person helping me asked me this question, "What are you going to use the money for?" I was taken aback by such a question as this is the first time I have ever been asked this question. My answer was, "I want to use my money in the way I see fit". When I asked why she would ask such a question she said that transferring funds from a retirement account to a bank account is one the most common ways to launder money......So next time I have the craving to transfer 2 dollars out of an account and state I am laundering this money.....wait, no that is not correct....I am going to use this money to DO laundry....

Disgusting , I would have told her strong language it was not her business to ask ....

On the other hand, she may have been looking out for you. Sometimes us old folks get scammed out of our money and lose all our retirement funds. An unusual withdrawal from those funds is a sign that something is not Kosher in Denmark.

If you had told her that your house needs a new A/C or you are looking for a used car for one of the grand kids, then those are just 'life events' that are what those funds are for. If you said that you are sending it to Nigeria to get a lottery winning, then that sets off alarm bells.

Timbo23 said:

On the other hand, she may have been looking out for you. Sometimes us old folks get scammed out of our money and lose all our retirement funds. An unusual withdrawal from those funds is a sign that something is not Kosher in Denmark.

If you had told her that your house needs a new A/C or you are looking for a used car for one of the grand kids, then those are just 'life events' that are what those funds are for. If you said that you are sending it to Nigeria to get a lottery winning, then that sets off alarm bells.

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Exactly right.

I don't know how old the OP is, but I figured older simply because he called to speak with someone to transfer the money.

And yeah, I'm sure she was just trying to be nice.. Most of the people working for Fidelity and Schwab etc, are nice and enjoy working with people.

Actually a new AC or car for the Grandkids could be just as much a scam as the Nigerian thing.....

"they' can find on line that one of your grand children had a wreck and then call pretending to be him or her and needing some money to put down on a new/used car. It happened to the mother of some friends of ours the week after their son was in a wreck.

Timbo23 said:

On the other hand, she may have been looking out for you. Sometimes us old folks get scammed out of our money and lose all our retirement funds. An unusual withdrawal from those funds is a sign that something is not Kosher in Denmark.

If you had told her that your house needs a new A/C or you are looking for a used car for one of the grand kids, then those are just 'life events' that are what those funds are for. If you said that you are sending it to Nigeria to get a lottery winning, then that sets off alarm bells.

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If I may ask, do you think it was more likely she was looking out for the IRS, or the OP?

OMCHamlin said:

If I may ask, do you think it was more likely she was looking out for the IRS, or the OP?

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Pretty darn sure the IRS new before the question was answered. All the big brokerage companies feed the IRS data.

I hope they ask me tomorrow when I transfer some from saving to checking to buy a new lawn tractor (no idea what make yet). Actually I can make the transfer without a telephone call. I can do it on-line. Done that before; but I will do it at the bank tomorrow.

To answer questions raised; I am 67. The amount was right at 1K. I prefer to do transactions over the phone. When I call, I can be sure of no fraud since there are safeguards in place and I initiate the transaction. I have done this the same way, probably a dozen times since retirement about 4 years ago. This was the first time I was asked this question. I can appreciate her looking out for me, but the rude and disrespectful way she treated me was what bothered me most.

Xrayist said:

To answer questions raised; I am 67. The amount was right at 1K. I prefer to do transactions over the phone. When I call, I can be sure of no fraud since there are safeguards in place and I initiate the transaction. I have done this the same way, probably a dozen times since retirement about 4 years ago. This was the first time I was asked this question. I can appreciate her looking out for me, but the rude and disrespectful way she treated me was what bothered me most.

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Glad you spelled out "rude part" not every one was getting your drift

Dan in MI said:

Pretty darn sure the IRS new before the question was answered. All the big brokerage companies feed the IRS data.

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"Looking out for" can mean many things. Think "fealty"…

Must just be who you are dealing with. I recently requested $25,000 out of my cash account. All my advisor wanted to know was when I was going fishing again. We then talked fishing for ten or fifteen minutes.

Oh, and on the small world things twice now were have ran into each other while fishing one of the flat sandy spots off the coast. Sand Dabs yum!

I watched a show where the lady called her adult son and asked for some money for an emergency. it was her number AND her voice as well.
But it was not her. If you had received that call, would you doubt it? AI is definitely a concern now, and the scammers will use any new trick they can.

bigbillyboy said:

Glad you spelled out "rude part" not every one was getting your drift

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No, I sure wouldn't have thought she was rude.

We use Schwab, and while I've never called them on the phone, we used TD Ameritrade before them. I did speak with them (TD) a few times. They were always pleasant on the phone.

Timbo23 said:

On the other hand, she may have been looking out for you. Sometimes us old folks get scammed out of our money and lose all our retirement funds. An unusual withdrawal from those funds is a sign that something is not Kosher in Denmark.

If you had told her that your house needs a new A/C or you are looking for a used car for one of the grand kids, then those are just 'life events' that are what those funds are for. If you said that you are sending it to Nigeria to get a lottery winning, then that sets off alarm bells.

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I think that's it.

I have seen enough seniors scammed. It never ends. Friends and relatives have been hit. Actually, I have been an indirect victim myself after a con man emptied a seven figure investment account of friends.
As I recall , Fidelity has put in place more safeguards to try to stop some of it. I recall them asking me for additional contacts if they suspected fraud or scams, or any funky behavior. I have no problem with someone trying to protect my accounts.
And I am happy to get calls and texts questioning credit card or debit card purchases. Our banks have frozen our accounts several times in recent years because of attempted fraudulent activity.

You didn't say she was rude and disrespectful in your original post. You didn't acknowledge that she was looking out for you in the original post either.
Still, if it bothers you, you should follow it up with Fidelity. No one likes to be treated poorly.

"On the other hand, she may have been looking out for you. Sometimes us old folks get scammed out of our money and lose all our retirement funds. An unusual withdrawal from those funds is a sign that something is not Kosher in Denmark."
Agree. MIL had all sorts of problems before she passed. One of those problems was giving access to personal or banking info. We had to put a limit on how much money she had on hand or could withdraw.

Xrayist said:

So, have been with Fidelity for close to 30 years. Now being retired, I occasionally take some money out of my accounts. Yesterday, I called to make a small withdrawl to be transferred to my bank account. The person helping me asked me this question, "What are you going to use the money for?" I was taken aback by such a question as this is the first time I have ever been asked this question. My answer was, "I want to use my money in the way I see fit". When I asked why she would ask such a question she said that transferring funds from a retirement account to a bank account is one the most common ways to launder money......So next time I have the craving to transfer 2 dollars out of an account and state I am laundering this money.....wait, no that is not correct....I am going to use this money to DO laundry....

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You did not give the amount but asking about a large withdrawal is a federal law (rule).

Never attribute to malice any action that can be explained away as mere incompetence.

What are you going to use the money for?

Guns.

Please hold while I transfer you to my supervisor...