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 2.0 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, @TDAmeritradePR. AMTD-G