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.
However, laws on the books in most states, if not properly reformed, could jeopardize the retirement nest eggs of those who saved and invested in a responsible manner.
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What very few Americans know is that their state government may have the legal right to undermine the “buy and hold” approach to saving. If you do not engage with your brokerage account in specific ways, the state deems your assets lost and assumes ownership on your behalf. This shocking maneuver is called escheatment.
Take Walter Schramm, who opened an E-Trade account in the 1990s and invested about $6,000 worth of
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