If you’ve changed jobs — and nearly 40 million Americans do each year — there’s a good chance you’ve left a 401(k) behind with a former employer. It might not seem urgent, but ignoring that account can quietly erode your savings, potentially costing you tens of thousands of dollars over time.

Let’s break down the risks of leaving an old 401(k) unmanaged — and how to protect your retirement with a smarter strategy.

The Hidden Risks of Forgotten 401(k) Accounts

1. High Fees Eat Away at Your Balance

The average 401(k) plan charges 0.5% to 2.0% in annual fees. These include:

• Administrative fees

• Investment management fees

• Mutual fund expense ratios

Many investors aren’t even aware they’re paying these. Over time, those seemingly small percentages can have a massive impact on growth.

📊 Example:
A 35-year-old with $50,000 in a 401(k) earning 7% annually:

• With 0.5% fees: grows to $502,000 by age 65

• With 2.0% fees: only grows to $328,000
  That’s a loss of $174,000 — just from higher fees.

2. No One Is Watching the Market For You

Old 401(k)s often become "set it and forget it" accounts. But the market changes, your life changes, and your risk tolerance changes.

Without active management:

• Your asset allocation may drift (e.g., too much in stocks or bonds)

• No rebalancing means you’re more exposed to market volatility

• You miss out on better-performing investments or safer options

A 2023 Vanguard study found that investors who regularly rebalanced saw annual returns up to 0.48% higher than those who didn’t.

3. Risk of Losing Track of Your Money

The U.S. Department of Labor estimates there are more than 29 million forgotten or abandoned 401(k) accounts, totaling over $1.65 trillion in unclaimed assets.

Common reasons this happens:

• You move and forget to update your address

• Your old employer switches plan providers

• You forget login details or account info

🔍 Many people don’t realize their funds are still invested in underperforming assets — or worse, sitting in cash, doing nothing.

The Smart Move: Roll Over to a New Account

Rolling your old 401(k) into a Rollover IRA or another qualified plan gives you more control, lower costs, and access to personal guidance. It also simplifies your financial picture.

Key benefits of a rollover:

• Avoid hidden fees and gain transparency

• Customize your portfolio to your goals and risk tolerance

• Consolidate multiple accounts for easier tracking

• Access expert advice for better performance and tax efficiency

You don’t lose tax-deferred growth. In fact, rolling over into an IRA is a non-taxable event if done correctly.

✅ Bonus: If you're 59½ or older, rolling over may allow flexible income strategies like annuity ladders or structured withdrawals, helping you plan for retirement income more efficiently.

Take Control of Your Future Today

Neglecting your old 401(k) doesn’t just mean lost money — it means lost opportunity.

Whether you’re early in your career or nearing retirement, now is the time to make sure every dollar is aligned with your long-term goals. Consolidating and optimizing your retirement accounts is a key step toward financial clarity and growth.

Schedule Your Free 401(k) Review Today

At Nemnich Life and Wealth, we specialize in helping individuals:

• Track down lost or forgotten 401(k)s

• Analyze current fees and performance

• Roll over old accounts into flexible, optimized portfolios

• Plan for income, protection, and legacy

Let us help you reclaim control of your retirement.

👉 [Schedule a complimentary consultation today] or call us at 314-737-0520