According to research from Cogent involving more than 4,000 affluent investors, $280 billion is expected to be rolled over into IRAs this year. Key life events are the major trigger for rollovers by these investors, whose decisions are driven by low fees and expenses from their IRA provider, ease of process, brand and an existing relationship.
Interestingly, 24% of these affluent investors — defined as those with at least $100,000 of investable assets — have money in at least one former employer’s retirement plan. On average, 25% or more of their investable assets remain there. Along with the obvious potential for plan advisors to capture rollovers, the other opportunity seems to be roll-ins, which should benefit everyone (assuming that it is suitable, of course).
Cogent also named the top 10 IRA rollover brands, headed by Fidelity, Vanguard, E*TRADE and Charles Schwab.
