Reported 5 days ago
A recent Vanguard study reveals that many Americans are losing out on billions in retirement savings due to the common mistake of leaving rollover funds in cash. When individuals transition their 401(k) to an IRA, the funds often convert to cash, which earns minimal interest. This oversight can lead to a substantial loss of potential wealth, with estimates suggesting each investor could miss out on over $130,000 by age 65 if they fail to reinvest. The industry needs to address this issue, with calls for automatic investment defaults to maximize retirement savings.
Source: YAHOO