![This retirement misstep could cost you more than $100,000 in savings. Here's what to know.Here's what to know.](https://assets2.cbsnewsstatic.com/hub/i/r/2024/07/24/f1f41d26-5011-4d3e-a7d0-e524ca048b87/thumbnail/1200x630/e71fcd992bfe8baba019d0ecc475dfa7/gettyimages-1498933745.jpg?v=5501038cbc281520ff9fdc308faab7dc)
This retirement misstep could cost you more than $100,000 in savings. Here's what to know.Here's what to know.
CBSN
Millions of workers are making a critical mistake with their IRA rollover accounts — one that could cost them $130,000 or more in foregone investment gains, according to new Vanguard research.
The issue stems from a quirk in the retirement system, with individual retirement accounts legally required to steer all direct contributions and most rollovers into cash, making it the "de facto default" for IRAs, Vanguard noted. That's not the case for 401(k)s, which have default options that direct workers into investments like target-date funds and the like.
The problem, Vanguard says, is that many workers appear unaware that their IRA savings are funneled into cash, a historically poor performer when compared with equities and other investments. Keeping one's retirement assets in cash not only means that workers are losing out on the potential long-term gains, but are also eroding the value of their savings due to inflation.
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Wall Street and corporate America are not exactly known for embracing uncertainty, a characteristic possibly at play as more than 90 business leaders on Friday announced they are backing Kamala Harris for president, saying the vice president would "continue to advance fair and predictable policies that support the rule of law, stability and a sound business environment." Roger Altman, Founder & Senior Chairman of Evercore Shellye Archambeau, former CEO of MetricStream Carl Bass, former CEO of Autodesk Tom Bernstein, President and Co-Founder of Chelsea Piers Afsaneh Beschloss, Founder & CEO of Rock Creek Jeff Bewkes, former CEO of Time Warner W. Michael Blumenthal, 64th U.S. Secretary of the Treasury and former CEO of both Bendix and Unisys Rosalind "Roz" Brewer, former CEO of Sam's Club; former CEO of Walgreens Boots Alliance; former COO of Starbucks Ursula Burns, former CEO of Xerox; Chairwoman of Teneo; Founding Partner of Integrum Holdings Maverick Carter, CEO of The SpringHill Company Ken Chenault, Chairman and Managing Director of General Catalyst and former Chairman and CEO of American Express Peter Chernin, Co-Founder & Partner of TCG Tony Coles, Chairperson & former CEO of Cerevel Tim Collins, Founder, CEO, and Senior Managing Director of Ripplewood Ron Conway, Founder & Managing Partner of SV Angel W. Don Cornwell, Co-founder, former Chairman & CEO of Granite Broadcasting Corporation Robert Crandall, former President and Chairman of American Airlines Mark Cuban, Co-founder of costplusdrugs.com Richelieu Dennis, Founder and Executive Chair of Sundial Group of Companies Barry Diller, Chairman & Senior Executive of IAC and Senior Executive of Expedia; Former Chairman and CEO of Paramount Pictures and Fox, Inc. John Doerr, Chairman of Kleiner Perkins Arnold Donald, former CEO of Carnival Corporation Eugene J. Duffy, Investment Banker Blair Effron, Partner & Co-Founder of Centerview Partners José E. Feliciano, Co-Founder and Managing Partner of Clearlake Capital Group David P. Fialkow, Co-Founder & Managing Director of General Catalyst Anne Finucane, former Vice Chair of Bank of America Lynn Forester de Rothschild, Chief Executive of E.L. Rothschild Ken Frazier, former Executive Chairman, President & CEO of Merck Mark Gallogly, Co-Founder and Managing Principal of Three Cairns Group; Co-Founder of Centerbridge Partners Chad Gifford, Former Chairman of Bank of America David Grain, Founder and CEO of Grain Management Logan Green, Chairman and former CEO of Lyft Daniel J. Halpern, Co-founder and CEO of Jackmont Hospitality Bruce Heyman, Former U.S. Ambassador to Canada and former Managing Director of Private Wealth at Goldman Sachs Mellody Hobson, Co-CEO and President of Ariel Investments; Chairman of Starbucks Roger Hochschild, former CEO and President of Discover Financial Services Reid Hoffman, Partner at Greylock Partners and Co-Founder and Executive Chairman of LinkedIn Glenn Hutchins, Chairman of North Island or Co-Founder of Silver Lake Blake Irving, former CEO of GoDaddy Tony James, former President, CEO & Executive Vice Chairman of Blackstone; Founder of Jefferson River Capital David Jacobson, Senior Advisor and former Vice Chair of BMO Financial Group; Former U.S. Ambassador to Canada Earvin "Magic" Johnson, Chairman and CEO, Magic Johnson Enterprises Brad Karp, Chairman of Paul, Weiss Jeffrey Katzenberg, Founder & Managing Partner of WndrCo Ellen Kullman, President and CEO of Carbon3; former Chair and CEO of DuPont Todd Lachman, Founder of Sovos Brands Chris Larsen, Co-Founder and Executive Chairman of Ripple Jeff Lawson, former CEO of Twilio Ted Leonsis, CEO of Monumental Sports & Entertainment Aaron Levie, Co-Founder & CEO of Box Ed Lewis, former Chairman and CEO of Essence Communications, co-founder Essence Magazine William M. Lewis, Jr. Michael Lynton, Chairman of Snap, Inc., former CEO of Sony Entertainment Tracy V. Maitland, President and Chief Investment Officer of Advent Capital Management Helena Maus, CEO of Archetype and Marker Collective Marissa Mayer, co-founder and CEO of Sunshine Products, former CEO of Yahoo! T.J. McGill, Co-Founder of Evergreen Pacific Partners and Suzanne Sinegal McGill, Co-Founder of Rwanda Girls Initiative Danny Meyer, Founder & Executive Chairman of Union Square Hospitality Group Raymond J. McGuire, President of Lazard Dustin Moskovitz, Co-founder and CEO of Asana Alan Mulally, former CEO of Ford Anne Mulcahy, former Chairman and CEO of Xerox James Murdoch, Founder & CEO of Lupa Systems; former CEO of 21st Century Fox Laxman Narasimhan, former CEO of Starbucks Indra Nooyi, former Chairman and CEO of PepsiCo Peter Orszag, former Director of the United States Office of Management and Budget and CEO of Lazard Deven J. Parekh, Managing Director of Insight Partners Sean Parker, Founder of Napster; Founder and Chairman of Parker Institute for Cancer Immunotherapy Charles Phillips, Co-founder and Managing Partner of Recognize; former President of Oracle and former CEO of Infor; Laurene Powell Jobs, Founder and President of Emerson Collective Penny Pritzker, 38th U.S. Secretary of Commerce; founder and Chairman of PSP Partners Vasant Prabhu, former CFO and Vice-Chair of Visa Spencer Rascoff, Founder and CEO of 75 & Sunny Ventures; Co-Founder and former CEO of Zillow Punit Renjen Rachel Romer, Founder of Guild Education Robert Rubin, former U.S. Treasury Secretary; Senior Counselor at Centerview Partners Kevin P. Ryan, Co-founder, MongoDB, Business Insider, GILT Groupe, Zola, Pearl Health, Affect Therapeutics, and Transcend Therapeutics Faiza J. Saeed Dan Schulman, former President & CEO of PayPal Jim Sinegal, Co-Founder and Former CEO of Costco Dan Springer, former CEO of Docusign Tom Steyer, Founder and former Co-Senior-Managing-Partner of Farallon Capital Jeremy Stoppelman, CEO of Yelp Scott Stuart, Founding & Managing Partner of Sageview Capital Larry Summers, 71st United States Secretary of the Treasury and President Emeritus of Harvard University Hamdi Ulukaya, Founder & CEO of Chobani Daniel Weiss, Co-Founder and Managing Partner of Angeleno Group Steve Westly, Founder and Managing Partner of The Westly Group Ron Williams, former CEO of Aetna Robert Wolf, former CEO of UBS Americas
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A website claiming to be a local San Francisco news outlet named KBSF-TV published a baseless claim on Monday alleging that Vice President Kamala Harris was involved in a June 2011 hit-and-run incident that left a 13-year-old girl paralyzed. Harris was California's attorney general at the time, and has been a longtime Bay Area resident.