230: 401(k) Decay

Our employer retirement plans, collectively holding over $12 trillion, are often our largest assets. For years, the conventional wisdom has been to roll these funds into IRAs when changing jobs. However, a troubling trend is emerging: one-third of workers are cashing out their plans when they leave a job, wiping out their savings. We're also seeing a record number of people taking hardship distributions from their 401(k)s, and even social media influencers are encouraging people to cash out their retirement funds entirely.

This week, we're diving deep into this alarming trend of mismanaging retirement savings. We'll explore the reasons behind these decisions and, more importantly, provide practical advice on how to get your retirement planning back on track.