A total of $280 billion is likely to be rolled over into IRAs this year, creating an opportunity that financial service firms cannot ignore, according to a new study from Cogent Reports.
The "Investor Rollover Assets in Motion" study shows that 9 percent of investors with at least $100,000 in investable assets is likely to roll over savings into an IRA account this year, Cogent says. The report included interviews with 4,170 investors.
Twenty-four percent of investors have at least one retirement account from a previous employer and these accounts hold 25 percent of the investors’ assets.
“Although the well-known challenge of investor inertia around rollover IRAs holds true, the size of the pool of assets in play says it all—this is a market that providers cannot ignore,” says Cogent vice president Linda York.
Fidelity Investments and Vanguard retained their status as the top two desired providers for rollover IRAs. E*Trade, Ameriprise and J.P. Morgan Chase moved into the top 10 this year. The other firms rounding out the top 10 are Charles Schwab, USAA, Wells Fargo Advisors, Edward Jones and T. Rowe Price.
Low fees and expenses are the top criteria investors cited as the reasons for selecting a particular provider. Other top criteria include an easy rollover process, brand reputation and having an existing relationship with a provider.