What if the biggest risk to your money isn’t losing it—but letting it sit still?
Here’s a true story that shows how much of a difference it makes to actually invest your money instead of leaving it parked in a “safe” account.
A missed opportunity
A 22-year-old woman had saved $5,000 in her company’s 401(k). When she switched jobs, her employer asked where to transfer the money. She was busy getting started in her new job, so she didn’t respond. Her account was automatically rolled into a money market fund at a partner bank.
That was five years ago. Her money has been sitting there ever since.
What could she have done differently?
Instead of leaving her money sitting in a money market fund, she could have invested it in an S&P 500 fund.
- Money market funds are ultra-safe. You won’t lose money, but your balance barely grows.
- The S&P 500 tracks the biggest U.S. companies. It’s riskier, but over time it’s delivered far more growth.
The numbers tell the story
Here’s how her $5,000 would have grown in each option:*
The bottom line
- Today in a money market: ~$5,600
- Today in the S&P 500: ~$13,400
That’s a difference of nearly $7,800. She’d have more than double the money if she had been invested.
Your takeaway
This isn’t about looking back with regret—it’s about using this story as a nudge to check on your own money.
- Do you know where your old 401(k) or rollover account is invested?
- Is your cash sitting in a “safe” spot but not actually growing?
- Could moving even part of it into an index fund change your long-term picture?
A money nudge for you:
This week, take five minutes to log in and see where your money is sitting. If it’s in cash or a money market, consider shifting it into an investment that actually grows.
Small steps like this can make a huge difference in your financial future.
Notes & Sources:
- Annual S&P 500 total returns used here come from SlickCharts data, e.g., −4.38% (2018), 31.49% (2019), 18.40% (2020), 28.71% (2021), −18.11% (2022), 26.29% (2023), and 25.02% (2024) SlickCharts.
- Current mid-2025 return estimated as ~10.88% SlickCharts.
- Money-market rates are estimated—0.5% early, rising to ~4% in recent years—with national average around 0.46% as of 2025 Bankrate, YCharts, FRED.