On Episode 31, I talk with Gaurav Sharma of Capitalize. Capitalize helps you keep track of your retirement account when you move from one employer to the next. They help you choose a new retirement account so you don’t lose access and advantages of the old retirement account. They also handle all the paperwork at no cost to you, the consumer.
I thought this episode was particularly interesting because I didn’t know much about this problem. It’s fascinating to hear all the different ways that people lose access and lose track of their retirement savings. Some lose it because they leave it with a previous employer and it just sits in that old account. Some decide this is my money so I’m going to take it out and they lose more than 30 percent of their money to taxes and fees.
Gaurav and the team at Capitalize solve this problem by simplifying it and taking all the headaches away. We talk about how common a problem this is, how aware people are of the Capitalize solution, why retirement accounts need to evolve like many other financial accounts, especially now that we’re living in the digital age, raising capital, and a whole lot more.
Before we go ahead and get into the episode, I wanted to ask if you, as a listener, could take a minute to rate the show and please write a review. I use those reviews to help make the show better and if you have specific comments, you can always reach out to me at firstname.lastname@example.org. So without further ado, Gaurav Sharma of Capitalize. I hope you all enjoy the show.
Gaurav’s journey through Wall Street to Capitalize
Why retirement accounts are tied to employers
More than 15 million people change jobs each year
Those retirement accounts left behind are lost or forgotten
The IRS collects $30bn in yearly fees from early withdrawals
3 million people leave accounts behind
$1.3tn is currently in dormant accounts
Capitalize removes all heavy lifting
They help you remove your money and explain where you can move it
Consumers will end up with an IRA and an active 401k
A new retirement account is needed for the fintech era
Named to Time’s List of 100 Best Inventions 2021
Best piece of advice, “do things that don’t scale”
Todd is the host of PitchIt: the fintech startups podcast, a weekly interview show featuring emerging fintech founders and leading venture capitalists. He is responsible for leading the content team which covers fintech through daily & weekly email newsletters, editorial, virtual events, and in-person conferences. He has been covering fintech, banking, and venture capital for more than 15 years, including speaking regularly at industry events.