Don't Make This $24,000 Retirement Savings Mistake

Sometimes, doing nothing at all can cost you. If you have cash that was automatically rolled over from your 401(k) to an IRA, for example, forgetting to invest those funds could end up being a very expensive mistake.

According to a report from the Employee Benefit Research Institute (EBRI), it's a mistake that far too many retirement savers are making. Nearly one-quarter of IRAs have what the EBRI calls "extreme allocations." These are portfolios holding less than 10% in equities. To put that in perspective, most retirement savers should be investing 50% to 80% in equities, depending on their age.

The EBRI found that many of these extreme portfolios are held in Safe Harbor IRAs. These accounts are created when 401(k) balances of less than $5,000 are automatically rolled out of the plan after an employee leaves the company. The investments are sold before the money is moved, and the new account typically holds the funds in cash or a cash equivalent. 

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Source Fool.com