Normal Blackout

[austin3515]

Does anyone have a sense for what a normal number of days would be not for the blackout itself, but to be out of the market in cash.  I know plans typically go into blackout before the liquidation date to ensure everything has a chance to settle, and on the other end it often stays in blackout until everything is completely up and running which at times is after the repurchase.  I'm looking for a typical amount of time to be sitting in cash.  Are there any statistics?  I have some participants in a blackout complaining it was too long, and I don't have any way to evaluate whether or not this particular conversion was atypical or what.

I should note that blackout did not extend beyond the window disclosed in the blackout notice.  Obviously the market is either up  or it is down in these things, and as "luck" would have it, the market was up in this particular time frame.  I did not think it was appropriate or advisable for me to mention any specifics here so I won't.

[Kevin C]

I don't think there is a typical time period. The main thing that determines the length of the blackout is how much, if any, the old firm cooperates with the transition.  We've had some where we received data files within a day or two after the funds arrived and they were out of the market less than a week. We've had others where we didn't get a data file until 1 or 2 weeks after the funds arrived and the data file was garbage.  Those were out of the market closer to 3-4 weeks.  Every one is different.

[Bird]

I agree with Kevin.  I'd like to say that it shouldn't take more than 2 weeks, and that's really more than should be necessary if all parties cooperated...but there's the rub.  I don't think anyone can "do" anything about as long as it's all completed within the noticed window (and I'm not sure what is actionable after that anyway).

[hr for me]

agree with Kevin C that a  lot is going to depend on the actual data transfer and the prior recordkeeper. If the client has a good relationship and is paying the prior recordkeeper to work on it before the transition, sending test files, etc the time period will go a lot faster.  If the client has a bad relationship and is  not even trying to get the information out in a timely manner since they know they have already lost the client, it can take longer.

If the time period is less than what was communicated (which should have been based on reasonable statistics/expectations from both the prior and new recordkeepers), that's just expectations that the client needs to manage with their employees.  What is happening with other clients and other plans can be like comparing fruits --different investment choices, setups issues, etc.

And my personal estimate of reasonability would be 7-14 days.