Workers miss out on billions in investment gains by pulling retirement savings out of the stock market after switching jobs—often without meaning to. When people roll 401(k) balances from their old company’s plan into an individual retirement account, the money is frequently held as cash until they select new investments. Many never do, according to new research from Vanguard Group.
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The 401(k) rollover mistake that costs retirement savers billions
“They couldn’t figure out why they weren’t earning any money when the stock market was showing high returns,” said Pio, who estimated the couple lost about $100,000 by missing the rally.
