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30% of Americans Leave IRA Rollovers in Cash for 7 Years: Here’s What That Costs You
Key takeaways
- According to research cited by the Money Guy Show, nearly 30% of IRA rollovers remain uninvested in cash seven years later.
- Brian Preston from the Money Guy Show warns that nearly 30% of IRA rollovers (SPY) remain uninvested in cash seven years later, calling it the missing half of retirement planning.
- Idle cash earning 0.38% in savings accounts costs investors substantially—a $10,000 investment in SPY would return $12,551 more over a decade than keeping it in cash.
According to research cited by the Money Guy Show, nearly 30% of IRA rollovers remain uninvested in cash seven years later. The issue is not limited to rollovers. Vanguard s data also shows that 55% of direct contributions into employer-sponsored retirement plans sit in cash for 12 months before ever being deployed into mutual funds, index funds, or ETFs.
Brian Preston from the Money Guy Show warns that nearly 30% of IRA rollovers (SPY) remain uninvested in cash seven years later, calling it the missing half of retirement planning.
Idle cash earning 0.38% in savings accounts costs investors substantially—a $10,000 investment in SPY would return $12,551 more over a decade than keeping it in cash.
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