This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

TD Ameritrade Boomer Survey Finds Financial Discipline Key To Success In Retirement (Graphic: TD Ameritrade)

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 TimesMore 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 CommunicationOverall, 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. 54%).

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.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,135.72 +38.82 0.21%
S&P 500 2,101.04 +2.51 0.12%
NASDAQ 4,982.8090 +15.6680 0.32%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs