Americans Pump Billions Into Iras

Posted: April 15, 1991

In the months leading up to tonight's midnight tax-filing deadline, Americans have been feverishly pouring billions of dollars into Individual Retirement Accounts at a far faster pace than in 1990, according to Money magazine's Small Investor Index.

Discount broker Charles Schwab, for example, has opened 17,500 new IRA accounts this year, compared with 12,700 for the same period a year ago. At Fidelity Investments, investors with existing IRAs have added 15 percent more cash to their accounts than they did a year ago.

Analysts give two reasons for the heightened interest in IRAs. "People who fear the recession are spending less and saving more," says Jennifer Martin, editor of the IRA Reporter in Brainerd, Minn. In addition, she notes, "They are looking to take advantage of whatever tax shelters are still available."

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