Start Saving before Age 30 and Talk to Your Kids About the Financial Facts of Life, TD Ameritrade Boomer Survey Suggests

  Start Saving before Age 30 and Talk to Your Kids About the Financial Facts
  of Life, TD Ameritrade Boomer Survey Suggests

When it comes to retirement readiness, good financial behaviors and discipline
              may trump external challenges such as the economy

Business Wire

OMAHA, Neb. -- December 13, 2012

When it comes to Baby Boomers and retirement preparedness, a little
self-restraint and planning makes a big impact on success, according to a new
Investor Index Survey released by TD Ameritrade, Inc. (“TD Ameritrade”), a
broker-dealer subsidiary of TD Ameritrade Holding Corporation (NYSE:AMTD).

The survey was conducted among both non-retired and semi- or fully-retired
Baby Boomers and unveiled key characteristics and behavioral differences among
respondents who consider themselves financially prepared for retirement
(“Prepared”) and those who reported they are financially unprepared for
retirement (“Unprepared”).

Successful Boomers are Conservative, Even in Good Times
More than half (54%) of Prepared Boomers reported that when times are good
financially, they remain conservative with their money, compared to just 35
percent of Unprepared Boomers who reported the same. Similarly, 41 percent of
Unprepared Boomers admitted they are more carefree with their money when times
are good, compared to just 30 percent of Prepared Boomers. And when asked if
they tend to be patient and plan things carefully, 53 percent of Prepared
Boomers agreed, compared to 38 percent of Unprepared Boomers.

“Financial discipline for anyone is tough, and it’s especially challenging for
Boomers who grew up during a time when self-realization and fulfillment was
the norm,” said Lule Demmissie, managing director, investment products and
retirement, TD Ameritrade. “Despite the challenges, it’s imperative that all
Americans embrace a more regimented approach to saving for retirement if they
expect to be prepared for the future.”

Financial Success Impacted by Personal Choices, Parental Communication
Overall, Prepared Boomers seemed to make better financial choices than those
Boomers who did not successfully prepare for retirement. They started saving
significantly earlier than Unprepared Boomers (median age 30 versus 35).
They’re also significantly more likely to save for retirement by having money
automatically deducted from their pay than those who are Unprepared (74% vs.

However, it’s worth noting that Prepared Boomers were slightly more likely to
have family who could help fund college expenses or a new home compared to
Unprepared Boomers. Unprepared Boomers also reported having greater than
average health care expenses.

Surprisingly, the education levels, annual household incomes and financial
saving and spending behaviors of parents had a negligible effect on the
financial success of Baby Boomers with respect to saving for retirement.
However, if their parents talked to them about proper money management habits,
the results were positive. In fact, Boomers who grew up in households where
parents talked about money management and saving for retirement are
significantly more likely to be Prepared (42%) than Unprepared (29%).

Top Factors that Affected Retirement Preparedness
When Prepared Boomers were asked what has allowed them to stay on track and
successfully save for retirement, their top three unprompted responses were
personal actions they have taken:

  *Budgeting and regular saving (37%)
  *Participation in a company retirement plan, such as a 401(k) (20%)
  *Controlling their spending and incurring little or no debt (20%)

Conversely, Unprepared Boomers cited external factors as the top three reasons
they are not on track for retirement:

  *Loss of or poor employment (35%)
  *High costs of living and a poor economy (33%)
  *Above-average healthcare expenses (12%)

Despite Economic Factors, Unprepared Boomers Accept Responsibility
Despite pointing to the above external factors as top reasons for falling off
track, many Unprepared Boomers still blame themselves for falling behind,
perhaps acknowledging they could have done something to avoid it. More than
half (53%) of Unprepared Boomers said they agree that their own actions are to
blame rather than outside factors like the economy. And 47 percent of this
group said they were not on track with respect to saving for retirement even
before the economic downturn in 2008.

“There are always going to be external factors that get in our way, especially
when it comes to finances,” continued Demmissie. “The key is to focus on what
you are able to control and act accordingly so you can meet your goal.”

Boomers interested in getting back on track are encouraged to visit
TDAmeritrade's website, which offers a number of free retirement planning
resources that can help investors pursue their goals, including:

1. WealthRuler™ retirement calculator that can help you estimate your
retirement readiness

2. Amerivest^® Portfolios, which will help you develop a diversified portfolio
that will fit your needs and help you pursue your retirement goals

3. Access to a network of knowledgeable, independent third-party registered
investment advisors (RIAs) through the TDAmeritrade AdvisorDirect^TM

4. Access to Life 2.0^TM, an educational resource that provides investors with
tailored financial guidance and support based on life stage.

For more information on the surveys, including key findings, visit TD
Ameritrade's online newsroom or follow the Company on Twitter,


Survey Method
An online survey was conducted with N = 2,000 U.S. Baby Boomers between
October 10 and 12, 2012, by Head Research on behalf of TD Ameritrade, Inc.
Sample was drawn from major regions in proportion to the U.S. Census,
including New England (5%), Mid-Atlantic (16%), South (25%), Midwest (22%),
Southwest (12%), West (20%). Approximately 50% of respondents in each region
were male and 50% female. All respondents were required to be: 1) Baby Boomers
(i.e., born between 1946 and 1964) and 2) Shared or sole household
decision-makers concerning saving for retirement. Two primary groups were
defined based on financial preparedness for retirement: 1) Prepared:
“Somewhat” or “very prepared” financially for retirement (n = 1,430) and 2)
Unprepared: “Somewhat “or “very unprepared” financially for retirement (n =
570). The survey took each participant 16 minutes to complete, on average. The
statistical margin of error for overall results in this study is +/- 2.2%.
This means that, in 19 out of 20 cases, survey results for questions based on
all Baby Boomers (i.e., N = 2,000) will differ by no more than 2.2% in either
direction from what would have been obtained by measuring the opinions of all
Baby Boomers in the USA.

About TDAmeritrade Holding Corporation
Millions of investors and independent registered investment advisors (RIAs)
have turned to TD Ameritrade's (NYSE: AMTD) technology, people and education
to help make investing and trading easier to understand and do. Online or over
the phone. In a branch or with an independent RIA. First-timer or
sophisticated trader. Our clients want to take control, and we help them
decide how - bringing Wall Street to Main Street for more than 36 years.
Please visit TD Ameritrade's newsroom or for more information.

Brokerage services provided by TDAmeritrade, Inc., member FINRA
( /SIPC ( /NFA (

About Head Research
Head Research is a division of Head Solutions Group (U.S.) Inc., a leading
market research partner for Financial Services companies in North America.
With offices in New York, Toronto, and Montreal, Head delivers the deep
customer insights that increase institutional knowledge and propel business

About Amerivest Investment Management, LLC
Amerivest is an investment advisory service of Amerivest Investment
Management, LLC, a registered investment advisor.Brokerage services provided
by TD Ameritrade, Inc.TD Ameritrade, Inc. and Amerivest Investment
Management, LLC are both wholly owned subsidiaries of TD Ameritrade Holding
Corporation. Amerivest is a trademark of TD Ameritrade IP Company,
Inc.Amerivest provides non-discretionary and discretionary advisory services
for a fee.Risks applicable to any portfolio are those associated with its
underlying securities.For more information, please see the Amerivest
Disclosure Brochure (ADV Part 2).

All investments involve risk, including loss of income payments and loss of
principal. Past performance does not guarantee future results. There is no
assurance that the investment process will consistently lead to successful
investing. Asset allocation and diversification do not eliminate the risk of
experiencing investment losses.

**Minimum asset level required. There is no charge or obligation for the
initial consultation with the RIA. Once you select an RIA, you will pay
advisory fees and standard brokerage fees. Brokerage transactions executed
through TD Ameritrade are subject to standard transaction charges. You should
review an RIA’s Form ADV, other applicable advisor disclosure document(s) and
the AdvisorDirect Disclosure and Acknowledgement Document prior to engaging an
RIA. The Form ADV contains important disclosure information relative to an
RIA’s services and fees. RIAs charge an ongoing investment advisory fee for
their services. RIAs will pay TD Ameritrade fees for their participation in
the AdvisorDirect program. Those fees will usually constitute a percentage of
the advisory fees you will pay your RIA. For additional details about the fees
paid to TD Ameritrade and other conflicts of interest, please review the
AdvisorDirect Disclosure and Acknowledgement Document and ask your RIA about
its specific arrangement with TD Ameritrade. You are solely responsible for
evaluating any advisor that you are considering. Please note: Under no
circumstances should participation by a certain RIA in AdvisorDirect be
considered an endorsement or recommendation by TD Ameritrade for that
particular RIA.

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