Dunlap advised viewers to keep their investments out of “financial cleansing” in a viral TikTok clip. Courtesy of Dunlop
Finance ticker Tory Dunlap shared a fundamental investing blunder that’s gone viral.
He said that many people are not investing the money in their retirement accounts, resulting in “financial laundering”.
“It’s literally costing people millions,” she said, and commentators are reacting and feeling their oversight.
A clip from a podcast in which finance coach Tory Dunlap shares one of the most common investment mistakes people make with their retirement accounts is sparking shock and applause on TikTok.
In March, Dunlap appeared on the “Growing Up with Devon” podcast, billed as an “adulthood survival guide”, hosted by Devon Verkhiser, a former child star who appeared on Nickelodeon’s “Ned’s Declassified School Survival”. Guide” as the titular role.
During her appearance, Dunlap — a self-described “financial feminist” who offers money advice aimed at young women — described a “very specific mistake” around Roth IRAs and other retirement accounts that she sees among workers. sees, but “especially women.”
“It’s not like a bank account where you can put money in and be like, ‘Cool, I’m done,’” Dunlap said in the clip, which has been viewed 4.4 million times. “You not only have to put money into the account, but you need to go and buy things with the money.”
When people invest money in Roth IRAs and then fail to invest those funds (such as in index funds, stocks, or bonds), the money remains in “financial laundering.” And it’s an oversight that he said could cost people millions of dollars.
Commenters noted that they too were ignorant of how Roth IRAs function, thus proving Dunlap’s point.
One wrote, “Thank god I learned square dance in school instead.” Another quipped, “I know some of these words.”
Many people said they felt it was important for them to invest money in the fund. Another commenter said, “I totally thought a Roth IRA worked for you, I needed a financial guy.”
Others lament the fact that they only recently became aware of how to invest their Roth IRA funds. “I’ve worked in corporate for 7 years and I just learned this,” wrote one. Another said: “I’ve been gone so long, don’t know it’s crazy.”
Insider has reached out to Dunlap for comment.
Read the original article on Insider
Source
