Study shows investors with 401(k)s, IRAs have larger balances

Fidelity Investments conducted an analysis of its investors that have both Individual Retirement Accounts and 401(k) plans. It found that the average combined balance in both accounts was $212,600. Investors on the verge of retirement, or already retired, had a combined balance of $359,000. The analysis also highlighted the sharp increase in the number of Americans seeking guidance as they work to achieve their saving and investing goals.

The report found that individuals who have both types of accounts save a lot more, an average of $10,300 annually, compared to $5,750 a year for 401(k) only and $4,150 for IRA only.

“This unique and integrated analysis covering more than 18 million accounts clearly underscores the importance of using both an IRA and 401(k) to help maximize long-term, tax-deferred growth potential, and as essential complements to other retirement income sources such as Social Security, a pension, annuities and brokerage accounts,” said Kathleen Murphy, president of personal investing at Fidelity Investments. “As investors strive to take more control of their personal economy in an unpredictable world, Fidelity’s investment professionals work closely with them to understand their priorities and goals, and help them create a tailored plan that can fit their personal situations.”

The number of investors taking advantage of advice has jumped since 2008. The number of people who had one-on-one retirement planning sessions with Fidelity representatives rose 8 percent from 2010 to 2011. That number increased 48 percent from 2008 to 2011. There was a 32 percent increase in seminar attendance at Fidelity Investor Centers from 2010 to 2011. From 2008, that increase was 68 percent. Website visitors also increased by 6 percent from 2010 to 2011 and by 26 percent from 2008 until 2011.

Fidelity Investments is one of the world’s largest providers of financial services, with assets under administration of $3.5 trillion, including managed assets of $1.6 trillion, as of Jan. 31, 2012.


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