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Cogent Reports™: $280 Billion Likely Headed to Rollover IRAs in 2014

January 26, 2014

One-Quarter (25%) of Former Employer-Sponsored Retirement Plan Owner Assets Remain Dormant CAMBRIDGE, Mass. --(BUSINESS WIRE)-- One in ten (9%) investors with at least $100,000 in investable assets is likely to roll over a total estimated $280 billion into IRAs this year. One in four (24%) investors has at least one retirement plan with a previous employer where a significant portion (25%) of his/her investable assets still resides. These and other findings are included in Investor Rollover Assets in Motion TM , a Cogent Reports™ study from Market Strategies International . “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,” said Linda York , vice president in the syndicated division. While key life events—changing employers and retiring—remain the top triggers for initiating a rollover transaction, investors who are likely to roll assets report that their top criteria when selecting a Rollover IRA provider are low fees and expenses, followed by an easy process, brand reputation and having an existing relationship with the financial services company. Evolving Brand Preferences Fidelity Investments and Vanguard retain their status as the top desired providers for Rollover IRAs amid variability with investor preference in the latest rankings. Three firms—E*TRADE, Ameriprise and J.P. Morgan Chase—strengthen their market positions and secure placement in the top 10 for Rollover IRA consideration. “Opportunities exist in this very competitive market for the providers who acknowledge investor fee sensitivity and make it easy, especially for existing customers, to transfer idle retirement plan assets into a Rollover IRA,” said Julia Johnston-Ketterer , senior director and author of this year’s Investor Rollover Assets in Motion study. Top 10 Preferred Rollover IRA Destinations (Investors with a former employer-sponsored retirement plan and are likely to roll assets into a Rollover IRA in the next 12 months) 1. Fidelity Investments 2. Vanguard 3. E*TRADE 4. Charles Schwab 5. USAA 6. Ameriprise 7. Wells Fargo Advisors 8. J.P. Morgan Chase 9. Edward Jones 10. T. Rowe Price Source: Market Strategies International , Cogent Reports TM Investor Rollover Assets in Motion TM , December 2013 About the Investor Rollover Assets in Motion Study Cogent Reports interviewed a sample of 4,170 affluent investors that were recruited from the Research Now opt-in online panel. Respondents were required to have at least $100,000 in investable assets (excluding real estate). Due to its opt-in nature, this online panel (like most others) does not yield a random probability sample of the target population. As such, it is not possible to compute a margin of error or to statistically quantify the accuracy of projections. Market Strategies International will supply the exact wording of any survey question upon request. About Market Strategies International Market Strategies International is a market research consultancy with deep expertise in communications, consumer/retail, energy, financial services, healthcare and technology. The firm is ISO 20252 certified, reflecting its commitment to providing intelligent research, designed to the highest levels of accuracy, with meaningful results that help companies make confident business decisions. Market Strategies conducts qualitative and quantitative research in 75 countries, and its specialties include brand, communications, customer experience, product development, segmentation and syndicated. Its syndicated products, known as Cogent Reports, help clients understand the market environment, explore industry trends and evaluate and monitor their brand and products within the competitive landscape. Founded in 1989, Market Strategies is one of the largest market research firms in the world, with offices in the US, Canada and China . Read Market Strategies’ blog at FreshMR , and follow us on Facebook , Twitter and LinkedIn . Market Strategies International Anne Fallon , 617-715-7611 anne.fallon@marketstrategies.com Source: Cogent Reports


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