Willie Sutton was a bank robber, whose heyday was in the '30's and '40's. He has also been the source of the famous account where in response to the question, "Why do you rob banks?"...he answers, "Because that's where the money is." In reality, he never actually said this...these were the words of an overly-ambitious reporter during a jailhouse interview. Willie Sutton did say, "It is a rather pleasant experience to be alone at bank at night," which is an illuminating quote in itself. For more on Willie Sutton, check out this FBI file on famous cases, "Willie Sutton"
Having informed you of this useless tidbit about Willie Sutton, I'd like to ask the question, "Why do financial advisors prospect for IRA rollover business?" In this case, the answer is unquestionably, "Because that's where the money is."
Good article in the August On Wall Street entitled, "The Rollover Chase", which brings up a number of interesting points:
- The amount of money in retirement plans now totals between $2-3 trillion.
- Annual IRA rollovers are estimated to be about $200 billion in 2005, and could exceed $500 billion in a few years.
- 70% of persons who have rolled assets from an employer plan to a traditional IRA did so because of: a job change, retirement, or termination.
- Advisors who want to accumulate IRA rollover assets should focus on client niches, e.g. teachers, university professors, city workers, employees at specific corporations, etc.
Speaking of good resources on the IRA Rollover market, I would also refer to a good piece in the Horsesmouth of a year or so ago entitled, "IRA Rollover Assets - Tapping the Mother Lode." See this link:
IRA Rollover Assets--Tapping the Mother Lode
Retirement plan assets represent an enormous source of new business--by some estimates, annual IRA rollovers will clear $400 billion by 2010. Here's how to target those assets and zero in on likely rollover candidates.
Hope this all helps. Talk to you soon. Ciao!