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If you're considering investing in mutual funds, you're not alone. Some possible ways to invest in mutual funds are through taxable accounts, IRAs and retirement savings accounts. The Investment Company Institute (ICI), a national association of the American investment company industry, reports that, as of May 2002, half of all U.S. households and one out of every three Americans owned mutual funds. What kinds of people buy mutual funds? Chances are they're just like you:
Are you in your prime earning years? The vast majority (83%) of mutual fund households are headed by individuals 25 to 64 years of age. 13% of households owning mutual funds are headed by individuals age 65 or older, and 4% are headed by individuals younger than age 25.
Do you participate in a company-sponsored retirement plan? Almost one-third of U.S. households, 32.7%, held mutual funds in employer-sponsored retirement plans as of May 2002. These plans include 401(k), 403(b) and 457 plans as well as SEP-IRAs, SAR-SEP IRAs and SIMPLE IRA plans.*
Are you investing outside your company's retirement plan? A somewhat larger share of U.S. households, 34.5%, owned mutual funds outside employer retirement plans, in accounts either purchased directly from fund companies or through financial professionals. Many people find that financial professionals are critical in helping them manage money in taxable accounts, traditional and Roth IRAs, Coverdell Education Savings Accounts, and variable annuities.*
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