I’m quite sure this post won’t end up as a “most popular” one, however these facts are quite interesting to me. I recently came across IRA statistics put out by the Investment Company Institute. Granted, the data is from 2014 but it’s still fascinating IRA data.

  • There’s 5.4 trillion dollars in IRA’s
  • Assets in IRA’s have grown 10% per year
  • Nearly 49 million households have a traditional IRA
  • That’s about 40% of the population
  • An additional 20.3 million own Roth IRA’s
  • 46% of IRA’s are invested in mutual funds
  • The rest are in brokerage accounts
  • The IRA breakdown is 38% in stock funds, 13% in world equity funds, 21% held target date and lifecycle funds, 20% are in bond funds, 9% in money markets

Take a look at the growth of IRA’s over the years:

 

IRA's are the cornerstone of any great retirement plan

IRA assets have grown about 10% per year for the past 38 years.

 

The advent of the Roth IRA has definitely increased the popularity of individual retirement accounts. Roth IRA’s make planning for retirement increasingly flexible from a tax and investment perspective. As a financial advisor with many many IRA’s under management, I can only hope this trend continues to grow over time.