IRA rollovers are a "unique asset-gathering opportunity," a report released Monday by McKinsey claims. The consulting firm found that over the next five years, rollovers are expected to drive between 40% and 50% of net new money for wealth managers and will total $7 trillion in assets or between 12% and 14% of all household assets by 2015.
The problem for wealth managers, McKinsey notes, is that they have largely "failed to mobilize their advisory forces," adding that less than half of brokerage clients receive help from their advisors on rollovers.
That's not to say wealth managers are not without opportunities to capture those assets. Among the strategies successful managers need to implement, according to McKinsey, are institutionalizing advisor practices, enhancing home office support, leveraging the brokerage call center and implementing a "quick and seamless" rollover process.
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