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.
Federal prosecutors say the scheme used fake investment accounts and a fictitious financial advisor to lure victims into romance-fueled fraud.
Morgan Stanley sought to claw back recruiting bonus money from Darryl Cohen.
Referrals from centers of influence may open the door, but the real key to success for advisors comes from clarity about their ideal clients and where they want to show up.
Three advisor groups overseeing more than $700M in combined client assets head to new firms.
New research finds most Americans fear a US retirement crisis, while skepticism grows toward AI financial advice and crypto in retirement plans.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
