Investors are expected to rollover about $280 billion into IRAs this year, with almost 10 percent of affluent investors moving assets, according to Market Strategies International. Almost a quarter of investors have at least one retirement account with a former employer. Those accounts hold about a quarter of those investors’ assets, too.
Where, though, are those assets going?
MSI identified the top 10 firms investors choose to roll their assets into. The report found low fees and expenses were the top criteria for investors choosing a rollover destination.
Interestingly, an existing relationship with the firm was only the fourth most important factor, the report found. Respondents cited an easy rollover process and a firm with a good reputation as more important criteria than having an existing relationship.
“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,” Julia Johnston-Ketterer, senior director and author of the Investor Rollover Assets in Motion study, said in a statement.
MSI surveyed more than 4,100 investors with at least $100,000 in investable assets for the report.
The top 10 rollover destinations:
10. T. Rowe Price
9. Edward Jones
8. JPMorgan Chase
7. Wells Fargo Advisors
5. USAA (United Services Automobile Association)
4. Charles Schwab
1. Fidelity Investments