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CUs Need to Seize the Opportunity to Take Rollover Retirement Assets

VANCOUVER, B.C.-Right now, more than 35 million Americans are over 65 and control $10.7 trillion in retirement assets. Credit unions can take some of that for their own, ISYS Director of Resource Development Michael J. O'Brien told participants in NAFCU's 37th Annual Conference & Exhibition. If that sounds like a...

By Staff Writer | Updated on July 27, 2004

VANCOUVER, B.C.-Right now, more than 35 million Americans are over 65 and control $10.7 trillion in retirement assets. Credit unions can take some of that for their own, ISYS Director of Resource Development Michael J. O’Brien told participants in NAFCU’s 37th Annual Conference & Exhibition. If that sounds like a lot though, by 2025, the largest segment of the society will be over 55. The first thing credit unions should do is identify sources of rollover from relationships the credit union already “owns,” like from a sponsor and their existing personnel. Then identify at large where the credit union can gain market, like companies going out of business where they need to rollover their company sponsored retirement plans or other places employees may be leaving and need to rollover. To accomplish this, “Education is critical,” O’Brien said. Educate appropriate credit union staff, educate you sponsor, educate the participants, and educate perspective members. Designate one person to be the retirement account expert. The consumer with the retirement account needs to feel the credit union has the expertise to do what is best for them, he said. In getting this education, the credit union needs to understand what cannot be rolled over as well. “The members first experience with your credit union cannot be a negative one,” O’Brien stated. And look in unexpected places. “The number of people who have the most IRAs are those that make less than $25,000,” he pointed out. Only 19% of workers kept their IRA with the original 401(k) provider, according to 1999 data presented by O’Brien.

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