Americans Neglect Investing Outside Tax-Qualified Plans.Americans in recent years have focused more attention on planning for their retirements, but research sponsored by SunAmerica Inc., Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , shows that they don't don't 1. Contraction of do not. 2. Nonstandard Contraction of does not. n. A statement of what should not be done: a list of the dos and don'ts. save outside of their 401(k) and other qualified plans. The research, performed by Spectrem Group, a consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a in San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden , found that only half of participants in company-sponsored plans invest in funds outside the plan, and only one in seven owns annuities. The longer they are in 401(k) plans, the more likely participants are to invest elsewhere, but Spectrem found that fewer than two in three do so after 11 years in a 401(k). However, 76% of households with annual incomes of $100,000 or more invest elsewhere. In other research, Spectrem found that there are 2.9 million U.S. households with net worths of $1 million or more, excluding primary residences. That's double the figure for 1990. An additional 14.5 million households have net worths of $500,000 to $1 million. |
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