Are you leaving money on the table?

Are You Leaving Money on the Table?

Imagine this: You’re cleaning out a drawer and come across an old 401(k) statement from a job you left years ago. As you look at it, you start to wonder—how much money have you forgotten about?

If this sounds familiar, you’re not alone. Many people lose track of retirement accounts, miss investment opportunities, or make financial decisions based on common misconceptions. The good news is, there are ways to take control and make the most of your savings.

Let’s look at some common financial missteps and how to avoid leaving money on the table

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Some of the most common ways people leave money on the table are:

🗂️ Losing track of old retirement accounts (happens to the best of us)

💼 Misunderstanding rollover options

📈 Missing out on investment opportunities

💸 Overpaying for services

🎁 Ignoring employee benefits (don't sleep on these!)

Now, let's break these down and explore solutions to stop the financial leak.

The Case of the Forgotten 401k

Meet Sarah, a 35-year-old marketing professional who has changed jobs three times since college. With each job, she contributed to a 401(k) but never got around to consolidating them. It was always on her to-do list, but life got in the way.

Why It Matters: Losing track of old 401(k)s doesn’t just mean forgotten money—it also means missing out on potential investment growth.

What You Can Do: Take stock of any old retirement accounts and consider rolling them into your current 401(k) or an IRA to simplify management and optimize investment options. Not sure if you had a 401(k)? Contact your former employer’s benefits department—they can help you track it down.

Rollover Revelations: Debunking the Myths

Many people believe that rolling over a 401k always incurs penalties or taxes. This misconception often leads to inaction.

The Truth: A direct rollover from one qualified retirement account to another typically doesn't trigger taxes or penalties. This is often the best choice when choosing to rollover your old retirement accounts.

Pro Tip: Consider rolling over into a "market-safe" account if you're concerned about market volatility. These accounts can offer protection against market downturns while still providing growth potential. In most cases, zero is your hero, if the markey turns down, your premiums are safe.

The Hidden Cost of Inaction

Let's crunch some numbers:

Old 401k left alone: $10,000 with 5% annual return

Rolled over 401k: $10,000 with 7% annual return (due to better potential market growth)

After 20 years:

Old 401k: $26,533

Rolled over 401k: $38,697

Potential money left on the table: $12,164

That's money down the drain.

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Missed Opportunities: The Invisible Thief

John, a small business owner, always thought investing was for "people with money". He kept his savings in a low-interest savings account, missing out on years of potential market gains.

The Wake-Up Call: While keeping some cash liquid is a good choice, letting too much sit idle can cost you significantly in the long run.

The Fix: Educate yourself on basic investment principles or consult with a financial advisor. Even small, regular investments can grow substantially over time thanks to compound interest.

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Take Control of Your Financial Future

Don’t let common mistakes drain your hard-earned money. Whether it’s consolidating old 401k's, making informed rollover decisions (with our help of course), or putting your savings to work through smart investing, small steps today can lead to significant financial gains tomorrow.

By staying proactive and seeking professional guidance (by yours truly), you can maximize your wealth and ensure your money is working for you—not sitting idle.

As always, let Financial Advantage Consultants be the financial advantage that YOU deserve.

Laura Munoz, Senior Advisor with Financial Advantage Consultants.