Is it possible that commenter is putting money into retirement accounts but not putting that money into any funds, etfs, or bonds? But even then, I would hope it’s in a money market type core position where they are getting some return. But I rolled over all my stuff into a target fund at my new employer 9 years ago. I’m up 21% on my cost basis.
I mean maybe, but 401ks almost always require you to set a target fund or indicate a preferred risk level just to set an account up. So unless the commenter went out of their way to not allow their 401k to be invested, it would almost certainly be invested in, at least/lowest risk, an interest bearing cash equivalent, like a MMF as you mentioned. And MMFs were crazy last year, some earning like 7% with essentially no risk and great liquidity.
Is it possible that commenter is putting money into retirement accounts but not putting that money into any funds, etfs, or bonds? But even then, I would hope it’s in a money market type core position where they are getting some return. But I rolled over all my stuff into a target fund at my new employer 9 years ago. I’m up 21% on my cost basis.
I mean maybe, but 401ks almost always require you to set a target fund or indicate a preferred risk level just to set an account up. So unless the commenter went out of their way to not allow their 401k to be invested, it would almost certainly be invested in, at least/lowest risk, an interest bearing cash equivalent, like a MMF as you mentioned. And MMFs were crazy last year, some earning like 7% with essentially no risk and great liquidity.
Yeah, it’s a bit of a stretch. I know folks forget to do this when setting up IRAs, but kind of hard to do with 401k. Who knows.