IRA Rollovers Finding More Homes Online
Individual retirement account rollovers are taking up residency with online investment providers, according to Cogent Research.
One in three (32%) affluent and high-net worth investors have assets currently sitting in former employer retirement plans like 401(k), 403(b), and 457 plans, according to a new report on the rollover IRA and retirement income market from Cogent. Thirty-nine percent of those surveyed said they are likely to roll their assets into an IRA within the next 12 months. With an average account balance of nearly $200,000, this puts about $450 billion dollars of retirement assets potentially in play over the next 12 months, the firm noted.
Online investment providers, as opposed to the full-service advisory practices, are most likely to be the beneficiaries of these rollover assets in motion, according to Cogent. Four of the top five rollover IRA destinations are firms traditionally known as online or discount brokers, many of which also have substantial 401(k) plan franchises.
The top destinations for rollover IRA assets include Fidelity Investments, Vanguard, Charles Schwab, Merrill Lynch and USAA, the data showed. Several players in the credit union industry have started beefed-up online alternatives for services ranging from financial planning to buying and selling trades.