Roth IRA investors seem to have no fear, regardless of age or account size. They are increasing their exposure to equities to as much as 66.3% of their account values.
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Many even above age 70 had a 52.1% allocation to equities. Bonds made up only a sliver of Roth allocations. Even those with the smallest accounts had 61.5% of as little as $10,000 invested in equities.
Roth IRAs are drawn down last during retirement so investors have more time to allow stocks to grow.
Taxable accounts and tax-deferred accounts are drawn on first. Roth accounts have non-deductible contributions and tax-free distributions.
Even those with $250,000 or more in their Roth accounts had a 48% allocation to equities—slightly lower but still significantly higher than traditional IRA accounts. IRA rollovers of that size had 38.4% allocated to equities.
Roth IRAs are viewed as more of an accumulation and growth
vehicle instead of a retirement income producing vehicle.
The analysis by the Employee Benefit Research Institute surveyed nearly 15 million individual retirement accounts.