TD Ameritrade Poll: Most Americans Plan to Save or Invest Their 2011 Tax Refunds

OMAHA, Neb.--()--Most Americans who anticipate a tax refund this year won’t be spending it flippantly, according to a recent survey conducted by TD Ameritrade Holding Corporation (NASDAQ:AMTD). Just over 50 percent of Americans expect to get a refund on either their state or federal tax return this year, and among them, 63 percent plan to save or invest at least part of the money they receive.

Just 14 percent of respondents expecting a tax refund this year said they would use the money to splurge on luxuries like a new mobile phone or travel, but roughly half expect to use some of the money to pay down debt (51%) or pay for necessities like food or utility bills (48%).1

“While this pragmatism may be a result of current economic conditions, it’s nevertheless good to see that people are more likely to save their tax refund rather than perhaps spending it unwisely,” said Lule Demmissie, managing director, investment products and retirement at TD Ameritrade, Inc. (“TD Ameritrade”). “Contributing lump sums like year-end bonuses or tax refunds is one way to bolster a retirement account.”

This year, April 17* is the deadline for filing federal and state income tax returns. And, investors should remember that it's also the deadline to make contributions for the 2011 tax year to a Traditional or a Roth Individual Retirement Account (“IRA”) and take advantage of the tax benefits 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)

During tax time, investors have already gathered most of the information and paperwork needed to re-evaluate their retirement plans. Demmissie points out that investors should consider using this opportunity to review their portfolio, revise any part of their strategy that may not be working for them, and build on their plan.

TD Ameritrade’s Retirement Center offers a number of free resources that can help investors with retirement planning – including: “Cost of Waiting” calculator, retirement planning checklists for every life stage, whether you are starting, nearing or arriving at retirement, retirement articles from third-party professionals and online retirement seminars that cover topics like small business retirement plans, making the most of your retirement, and understanding Social Security, Medicare and retirement.

For more information on TD Ameritrade Holding Corporation’s surveys, including key findings, visit http://www.amtd.com/newsroom/research.cfm or follow the company on Twitter @TDAmeritradePR.

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

AMTD-G

About the Survey

These results are based on a telephone survey conducted in ORC International’s CARAVAN® on behalf of TD Ameritrade Holding Corporation. One thousand six (1,006) adults participated in a telephone survey conducted October 13-16, 2011. The margin of error in this survey is ±3.1 percentage points. This means that in 19 cases out of 20, survey results based on 1,006 respondents will differ by no more than 3.1 percentage points in either direction from what would have been obtained by seeking the opinions of all adults living in the United States age 18 and older. ORC International and TD Ameritrade Holding Corporation are separate, unaffiliated companies and are not responsible for each other’s products and services.

About TD Ameritrade Holding Corporation

Millions of investors and independent registered investment advisors (RIAs) have turned to TD Ameritrade’s (NASDAQ: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. An official sponsor of the 2012 U.S. Olympic Team, 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 ORC International

ORC International is a leader in global market research with expertise in Information Technology and Telecommunications, Healthcare, Financial Services, Public Services and Consumer Behavior. For more information, visit www.opinionresearch.com.

1Respondents expecting a tax refund this year are planning to use their refund for more than one purpose. That’s why the percentage total exceeds 100%.

*The traditional tax return filing deadline is April 15 of each year, but April 15, 2012, is a Sunday and April 16, 2012, falls on Emancipation Day, a legal holiday in the District of Columbia, making April 17 the next business day.

Contacts

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

Contacts

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