TD Ameritrade Survey: Americans Plan to Save, Not Spend, Tax Refunds

  TD Ameritrade Survey: Americans Plan to Save, Not Spend, Tax Refunds

      Single Women, Married Men and Boomers Less Frugal With Tax Refund

                          Generation Y Plans to Save

Business Wire

OMAHA, Neb. -- February 6, 2013

Nearly half (47%) of Americans expect to receive an income tax refund in 2013.
Among them, 47 percent plan to save their refund money and 44 percent plan to
pay off debt, according to a recent survey released by TD Ameritrade, Inc.
(“TD Ameritrade”), a broker-dealer subsidiary of TD Ameritrade Holding
Corporation (NYSE:AMTD).

Survey respondents also plan to use their refund to purchase necessities
(28%), invest (15%), or to donate their refund to charity (6%). Only 15
percent said they plan to spend their refund on discretionary items.

“It’s good to see that people are more likely to save their tax refund or use
it to pay down debt rather than perhaps spending it unwisely,” said Lule
Demmissie, managing director, investment products and retirement at TD
Ameritrade. “We would also encourage people to consider investing the money
for the future. Contributing lump sums like year-end bonuses or tax refunds
can be a good way to bolster a retirement account.”

When it comes to men and women, an interesting shift occurs once they get
married, according to the data.Single women are least likely to save their
tax refund (37%), while married women are most likely (56%) to save. The
opposite is true of men, as 54 percent of single men say they will save their
tax refund money and only 41 percent of married men say they’ll save it.

The survey also uncovered a difference in priorities between the generations.
Younger generations have possibly learned a thing or two from the financial
crises they have witnessed, as nearly two-thirds (58%) of Generation Y intend
to save their income tax refund, compared to just 36 percent of Generation X
and 40 percent of Baby Boomers who say the same.

Demmissie continued, “As we approach this year’s April 15th deadline for
filing federal and state income tax returns, investors should remember that
it’s also the deadline to make contributions for the 2012 tax year to a
Traditional or a Roth Individual Retirement Account ("IRA").” By doing so,
investors can take advantage of the tax benefits that these retirement
accounts can provide, such as:

  *federal tax-free growth and tax-free withdrawals (for those investors
    meeting IRS requirements, like age) (Roth IRA)
  *the ability to deduct contributions on your income taxes now and pay the
    taxes when you make qualified withdrawals in retirement (Traditional IRA)

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


TD Ameritrade does not provide tax advice. We suggest you consult with a
tax-planning professional with regard to your personal circumstances.

Survey Methodology
An online survey was conducted among N=1,000 Americans 18+ years old from
November 16-17, 2012, by Head Research on behalf of TD Ameritrade, Inc. Sample
was drawn from major regions in proportion to the U.S. Census. The statistical
margin of error for overall survey results in this study is +/- 3% (assumes
panelists do not differ from non-panelists, and respondents do not differ from
non-respondents). This means that, in 19 out of 20 cases, survey results for
questions based on all survey respondents (N=1,000) will differ by no more
than 3% in either direction from what would have been obtained by measuring
the opinions of all adult Americans. Baby Boomers = born 1946 to 1964; Gen X =
born 1965 to 1976; Gen Y = born 1977 to 1989.

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. TD
Ameritrade has time and again been recognized as a leader in investment
services. Please visit TD Ameritrade’s newsroom or for more

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
action. Head Research is separate from and not affiliated with TD Ameritrade,
which is not responsible for its policies and services.

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