The Key to Retirement Readiness: Stay Debt-Free

TD Ameritrade survey suggests course of action for successful retirement planning

OMAHA, Neb.--()--Nearly 30 percent of Baby Boomers are financially unprepared for retirement 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). But what can we learn from the 71 percent of Boomers who say they are financially prepared to live a comfortable life in retirement?

Boomers who successfully prepared for retirement said the top 5 things that contributed to success were:

#1 – Limiting use of credit (67%)
#2 – Saving early and consistently (58%)
#3 – Spending less on luxuries / discretionary items (58%)
#4 – Having employment with an excellent salary (56%)
#5 – Investing in / maintaining a well-balanced portfolio (51%)

“While earning a good salary certainly makes saving and limiting the use of credit easier, the survey shows that there are some things all of us can do to help us be better financially prepared for a comfortable retirement,” said Lule Demmissie, managing director, retirement, TD Ameritrade. “Saving early and automatically, adopting more conservative spending habits and investing in a well-balanced portfolio are things we can all do. If you can’t afford to save or invest a lot, consider small incremental deposits in a no-fee retirement account, and increase them as your salary increases. This path doesn’t mean you have to cut out all discretionary spending. Instead, you reprioritize your spending to allocate more wisely to things that make you most happy while cutting back on those expenditures that don’t really add much to your happiness and allocate that to your savings.”

Boomers interested in getting back on track in the new year are encouraged to visit TD Ameritrade'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 examine your retirement plans

2. Amerivest® Portfolios, a service to provide a diversified portfolio designed for your needs and helping you pursue your retirement goals

3. Access to a network of knowledgeable, independent third-party registered investment advisors (RIAs) through the TD Ameritrade AdvisorDirectTM program.*

4. Access to Life 2.0TM, 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, @TDAmeritradePR.

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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 TD Ameritrade 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 www.amtd.com for more information.

Brokerage services provided by TD Ameritrade, Inc., member FINRA (www.FINRA.org) /SIPC (www.SIPC.org) /NFA (www.nfa.futures.org)

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.

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.

Contacts

TD Ameritrade Holding Corporation
For Media:
Christina Goethe, 201-369-8541
Communications & Public Affairs
christina.goethe@tdameritrade.com
On Twitter @TDAmeritradePR
or
For Investors:
Jeff Goeser, 402-597-8464
Investor Relations & Finance
jeffrey.goeser@tdameritrade.com

Release Summary

Nearly 30 percent of Baby Boomers are financially unprepared for retirement according to a new Investor Index Survey released by TD Ameritrade. What can you learn from the 71 percent who are prepared?

Contacts

TD Ameritrade Holding Corporation
For Media:
Christina Goethe, 201-369-8541
Communications & Public Affairs
christina.goethe@tdameritrade.com
On Twitter @TDAmeritradePR
or
For Investors:
Jeff Goeser, 402-597-8464
Investor Relations & Finance
jeffrey.goeser@tdameritrade.com