More than four in ten U.S. households (42%) own individual retirement accounts, amounting to 55.5 million households.
Newly published research from the Investment Company Institute found that traditional and Roth IRAs account for 36% of household financial assets among those owning them, and those individuals were more likely to have engaged in rollover activity, with those owning Roth IRAs also having higher contribution rates.
The study also reveals that IRA holders are generally willing to take some investment risks, with more than 70% holding mutual funds and more than 30% holding ETFs within their IRAs.
Among those with traditional IRAs, 62% of them included rollover assets and 43% of those with rollovers had contributed to their traditional IRAs in addition to the rollovers. Information about rollovers was sought from multiple sources, including financial advisors, employer-provided materials, and content from financial services firms.
Almost nine in ten respondents with traditional IRAs had preserved their entire employer-sponsored retirement plan balance in their most recent rollover. This was mostly due to not wanting to leave assets with their previous employer, consolidation of assets, and desire for more investment options.
In the tax year 2022, two in ten traditional IRA-owning households made contributions, while twice as many Roth IRA owners did so.
The ICI report, The Role of IRAs in US Households’ Saving for Retirement, 2023, included two surveys conducted in mid-2023 that also found that around two-thirds of traditional IRA–owning households in mid-2023 indicated that they have a multicomponent strategy for managing income and assets in retirement.
By listening for what truly matters and where clients want to make a difference, advisors can avoid politics and help build more personal strategies.
JPMorgan and RBC have also welcomed ex-UBS advisors in Texas, while Steward Partners and SpirePoint make new additions in the Sun Belt.
Counsel representing Lisa Cook argued the president's pattern of publicly blasting the Fed calls the foundation for her firing into question.
The two firms violated the Advisers Act and Reg BI by making misleading statements and failing to disclose conflicts to retail and retirement plan investors, according to the regulator.
Elsewhere, two breakaway teams from Morgan Stanley and Merrill unite to form a $2 billion RIA, while a Texas-based independent merges with a Bay Area advisory practice.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
