In 2021, a 34-year-old investor followed what sounded like standard advice. He rolled about $50,000 from his 401(k) into a Traditional IRA with the help of a local financial advisor. Then he did what many people are told to do with retirement money.<\/p>\n
\u201cI’ve for the most part ignored it as that was always the advice I was given,\u201d he wrote<\/a> in Reddit\u2019s personal finance community recently.<\/p>\n Five years later, when he finally checked, the account balance was just over $52,000. After one of the strongest multiyear stretches for U.S. stocks in recent memory, his retirement money had barely moved.<\/p>\n Don’t Miss:<\/p>\n \u201cHoly hell, you missed four of the best years ever,\u201d one commenter wrote. \u201cIt should be roughly double if it\u2019s in an index stock fund.\u201d And as another person said, \u201cYou would have made more money in a high-yield savings account.\u201d<\/p>\n Several commenters ran the math. A simple investment in a low-cost S&P 500 index fund starting in early 2021 would have turned $50,000 into roughly $85,000 to $95,000 by now, depending on dividends and timing. Even conservative alternatives like Treasury bills<\/a> or money market funds<\/a> would have outperformed the account\u2019s actual return.<\/p>\n One highly upvoted comment summed it up this way: \u201cYou have actually lost money if you factor inflation over that time period.\u201d<\/p>\n Trending: Americans With a Financial Plan Can 4X Their Wealth \u2014 Get Your Personalized Plan from a CFP Pro<\/a><\/p>\n As the discussion unfolded, a few explanations kept coming up.<\/p>\n First, fees. Many commenters assumed the advisor was charging around 1% annually<\/a>. On a small account, that fee alone can quietly eat into already modest returns. \u201cA 2% fee over 40 years will eat like half the gains,\u201d one person warned.<\/p>\n Second, overly conservative investments. Multiple commenters speculated that the advisor may have placed the money into bond-heavy or income-focused funds. Rising interest rates over the past few years hit bond funds particularly hard.<\/p>\n \u201cA 20\/80 stock-bond portfolio would have about that return,\u201d one person said, adding that such an allocation made little sense for someone in their early 30s.<\/p>\n The original poster later confirmed that the IRA was spread across several funds, including one called Bluerock. Others quickly pointed out that this fund had produced returns well below even basic cash alternatives over the same period.<\/p>\n \u201cThat is worse than a [money market fund],\u201d one commenter wrote after calculating the long-term performance. \u201cThis is gross negligence.\u201d<\/p>\n See Also: Wall Street’s $12B Real Estate Manager Is Opening Its Doors to Individual Investors \u2014 Without the Crowdfunding Middlemen<\/a><\/p>\n Other commenters reassured him that moving an IRA is straightforward. \u201cJust called Vanguard and it was super smooth,\u201d one person shared. \u201cThey walked me through everything.\u201d<\/p>\n Some also suggested services designed to help people evaluate advisors before committing. WiserAdvisor<\/a> is a free service that helps match you with pre-screened financial advisors based on your goals, investment style, and comfort level with risk. You answer a few questions, and they connect you with vetted advisors so you can compare your options before committing.<\/p>\n The silver lining, according to most commenters, is timing. The investor noticed the problem now instead of 10 or 20 years later.<\/p>\n \u201cNobody says ignore your money,\u201d one commenter wrote. \u201cThey say don\u2019t obsess daily, don\u2019t panic sell, don\u2019t time the market.\u201d<\/p>\n Read Next: It\u2019s no wonder Jeff Bezos holds over $250 million in art \u2014 this alternative asset has outpaced the S&P 500 since 1995, delivering an average annual return of 11.4%. Here\u2019s how everyday investors are getting started.<\/a><\/p>\n Image: Shutterstock<\/p>\n UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily<\/a>, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets.<\/p>\n Get the latest stock analysis from Benzinga:<\/p>\n This article A Financial Advisor Told Him To Move $50K Out Of His 401(k) Into A Traditional IRA In 2021. Five Years Later, He’s Only Up $2K<\/a> originally appeared on Benzinga.com<\/a><\/p>\n \u00a9 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.<\/p>\n","protected":false},"excerpt":{"rendered":"In 2021, a 34-year-old investor followed what sounded like standard advice. 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