News on the ‘Billion-Dollar Blind Spot’ of 401(k)-to-IRA Rollovers Revealed by Vanguard
Monday, 16 September 2024, 10:57
News of Key Findings
Vanguard's latest study reveals a startling aspect of 401(k)-to-IRA rollovers. Investors often default their rollovers to cash, leading to suboptimal returns. This behavior represents a significant missed opportunity in investment strategy.
Understanding the Blind Spot
The 'billion-dollar blind spot' arises when retirement accounts remain idle in cash. This default setting can undermine potential growth due to inflation and missed investment gains.
Recommendations for Investors
- Review Options: Investors should review their rollover options carefully.
- Research Investments: Conduct research to identify suitable investment opportunities.
- Consult Financial Advisors: Seek advice from professionals for personalized strategies.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.