SOURCE: Spectrem Group

September 08, 2011 08:00 ET

Investors Place IRAs With Firms They Know

Nearly Half (48%) Choose Providers Based on Existing Account Relationships; At Least 61% Involve a Financial Advisor

CHICAGO, IL--(Marketwire - Sep 8, 2011) - In the IRA rollover market, relationships matter.

Nearly half (48%) of retirement plan participants who rolled plan balances into IRAs during the past 2 years chose their rollover institution based on whether they already had an account there, according to a new study, "The IRA Rollover Market 2011," released today by Spectrem Group.

This makes existing relationships the No. 1 factor driving the choice of IRA providers. Other factors include: wide range of investment choices (29%), excellent customer service (28%), recommended by financial advisor (27%), record of strong investment performance (27%) and low fees (26%).

"Participants making IRA decisions are proving quite loyal to the financial companies with whom they have a working relationship. Financial services providers that want a share of this important market should make a point of cross-selling to participants and establishing strong relationships early in their lifecycles," said George H. Walper, Jr., President of Spectrem Group.

Advisor relationships also play a key role in IRA rollover decisions. Depending upon their circumstances, at least 61% of investors involved a professional advisor in the process. Among job changers, for example, 61% used a professional advisor for rollovers. That percentage rose to 74% for those who were retiring and 77% for investors with large balances over $100,000.

Additional insights are available on Spectrem's Millionaire Corner website ( They include:

The Spectrem Group study "The IRA Rollover Market 2011," is based on an online survey of 940 individuals who have had the opportunity to roll over a qualified retirement plan balance of $5,000 or more within the past 2 years. The survey was conducted in July 2011, and the data have a margin of error of plus or minus 3.2 percentage points.

About Spectrem's Millionaire Corner
Spectrem's Millionaire Corner website ( is a powerful source for up-to-the-minute news and information for investors, about investors designed to fuel financial growth. It incorporates Spectrem Group research as well as outside information. In the future, the site will offer financial advisor referrals.

About Spectrem Group
Spectrem Group is a strategic consulting firm specializing in the affluent and retirement markets, integrating proprietary research with expertise in building business, marketing and M&A strategies. Its professionals have held senior management positions at leading global companies.

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