I encountered a small scale version of this situation a few years back — my dad’s wife had a 403b that had been in cash or cash equivalents for the better part of a decade. This was mostly during the bull market too. Even investing conservatively it would have been double the value. It really drives home how important sane defaults like a target date fund can be. And also default opt in/increases/etc.
To be clear, I DON’T advise anyone leaving their money in a bank, there are way better places to put it. Stocks, real estate or whatever, I just hate when people put their money away and have no idea what it’s doing.
I encountered a small scale version of this situation a few years back — my dad’s wife had a 403b that had been in cash or cash equivalents for the better part of a decade. This was mostly during the bull market too. Even investing conservatively it would have been double the value. It really drives home how important sane defaults like a target date fund can be. And also default opt in/increases/etc.
Reminds me of an old commercial I saw. https://www.youtube.com/watch?v=w1gMkw6WDXE
To be clear, I DON’T advise anyone leaving their money in a bank, there are way better places to put it. Stocks, real estate or whatever, I just hate when people put their money away and have no idea what it’s doing.
It’s a shame too because they’ve already done the hard part by saving.
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