ICI: Traditional IRA Holders Own More Annuities
National Underwriter (Life and Health Financial Services Edition) (09/17/02) p.47; Bell, Allison

A new report by the Investment Company Institute shows that those who own traditional individual retirement accounts are more likely to own whole life insurance policies and annuities than those who own Roth IRAs, though in some ways the households are similar, sharing close annual household incomes and marital status. Both groups also have similar risk tolerance, but the researchers say that those who made the financial decisions in traditional IRA households are generally older and more likely retired than those in Roth or employer-sponsored IRA households, and Roth IRA holders also have lower IRA assets and total assets. The report shows that 51 percent of traditional IRA holders have whole life insurance policies with a cash value, 12 percent have IRAs at life insurers, and 28 percent own fixed or variable annuities, while only 42 percent of Roth IRA owners have whole life policies with cash values, 6 percent have their IRAs at life insurers, and 16 percent own annuities.


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