According to a new Vanguard study, 28% of workers who rolled over their Vanguard IRA from from a 401(k) left funds uninvested for at least seven years. Empower CEO Ed Murphy joins Wealth! to discuss this critical mistake and how you can avoid it when planning for your retirement.

Murphy explains that one way to avoid leaving funds uninvested is to stay in your retirement plan when you change jobs or retire. "You don't necessarily have to take the money out and roll it to an IRA. Oftentimes, it's better to leave it in the plan and get the benefit of better pricing," he explains. If you choose to roll over, he emphasizes the importance of consulting an advisor to ensure the money not only gets properly invested, but invested in a way that meets your personal finance goals.

He notes that not all Americans are able to enroll in retirement plans through their employers, and that when there is no automatic payroll deduction, many Americans don't save for retirement at all. Thus, he stresses the importance of getting more small companies to offer retirement plans.

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This post was written by Melanie Riehl