Can Parents Groom Financially Successful Sons and Daughters?

TD Ameritrade Investor Index Survey Separates Financial "Doers" from "Dreamers"

OMAHA, Neb.--(BUSINESS WIRE)-- Parents may play a more vital role than they realize in shaping the financial attitudes and behaviors of their children according to the latest Investor Index survey released by TD Ameritrade Holding Corporation (NASDAQ: AMTD). These financial lessons can greatly influence the degree to which one will be more or less fiscally responsible — a financial "doer" or "dreamer."

• Doers' Parents Spoke to Them About Money — According to the survey, 57 percent of "doers" reported that their parents frequently talked to them about earning money and saving it, compared to 46 percent of "dreamers" who reported the same. More "doers" (77%) also reported that their parents encouraged them to have a goal and set money aside, compared to "dreamers" (66%).
• Doers' Parents Modeled Good Financial Behavior — And while teaching financial lessons is important, it's just as critical for parents to practice what they preach. According to the survey, 74 percent of "doers" reported having parents who not only taught them the importance of saving for the future, but also led by example, compared to 64 percent of "dreamers." Seventy-one percent of "doers" also said that their parents established and stuck to a budget, compared to just 62 percent of "dreamers."

Financial "doers" are defined as those who have a 401(k), 403(b) or an IRA and do at least five of the following:

• Behave more like a saver than a spender
• Live within their means
• Automatically deposit money from their monthly income into savings
• Have a budget and follow it
• Track household expenses
• Pay off credit card debt as quickly as possible
• Contribute to an employer-sponsored retirement account
• Contributed to an IRA in 2010

"Dreamers," on the other hand, are defined as those who do four or fewer of the above-mentioned behaviors and may or may not have retirement accounts.

"Parents have a profound impact on their children in many ways, and financial matters are no different," said Lule Demmissie, managing director of investment products and retirement at TD Ameritrade, Inc. a broker-dealer subsidiary of TD Ameritrade Holding Corporation. "Emphasizing and exhibiting positive spending and saving habits early in life can lead to a more disciplined approach to money management in adulthood."

And disciplined they are. In fact, 78 percent of "doers" consider themselves to be savers, not spenders, compared to just 33 percent of "dreamers." The survey also found that the structured behaviors of financial "doers" translate into other areas of their lives as well. For example:

• 80 percent of "doers" get a physical exam once a year, compared to 72 percent of "dreamers"
• 63 percent of "doers" regularly exercise three to five times a week, compared to 49 percent of "dreamers"
• 82 percent of "doers" regularly eat a healthy and balanced diet, compared to 71 percent of "dreamers"

"Doers" by definition are also more prepared than "dreamers" for retirement, largely because they are taking proactive steps and planning ahead. Not surprisingly, the lack of effort by "dreamers" to do the same has impacted their confidence. While 80 percent of "doers" said they are confident they will achieve their retirement goals, fewer (59%) "dreamers" reported the same.

"When it comes to building a nest egg — while there are certainly risks along the way - you generally get out of it what you put into it," Demmissie said. "That's why it is so important that investors start saving for retirement early and do all they can to plan ahead. Putting aside small amounts is better than nothing at all. Over time, investors will see a difference."

Investors seeking to get their long-term financial plans started or back on track can visit www.tdameritrade.com for access to a variety of online portfolio planning and analysis tools, call TD Ameritrade 24/7 at 800-669-3900, or speak with an investment consultant at any of the company's 100+ branch locations.

For more information on TD Ameritrade's annual Investor Index survey series, including key findings, visit www.amtd.com.

AMTD-G

Survey Methodology
These results are based on a survey conducted by Maritz, Inc. on behalf of TD Ameritrade Holding Corporation. One thousand five hundred and nine (1,509) adults between 22 and 81 years participated in a telephone survey from July 20 through August 17, 2011. The margin of error in this survey is ±2.5%. This means that in 19 cases out of 20, survey results based on 1,509 respondents will differ by no more than 2.5 percentage points in either direction from what would have been obtained by seeking the opinions of all adults living in the United States age 22 through 81. Maritz, Inc. and TD Ameritrade Holding Corporation are separate, unaffiliated companies and are not responsible for each other's products and services.

About Maritz
St. Louis-based Maritz is a sales and marketing services company, which helps companies achieve their full potential through understanding, enabling, and motivating employees, channel partners, and customers. Maritz provides market and customer research, communications, learning solutions, incentive initiatives, rewards and recognition, effective meeting, event and incentive travel management services, and customer loyalty programs. For more information, visit www.maritz.com or contact us at 1-877-4MARITZ.

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 (http://www.FINRA.org/) SIPC (www.SIPC.org)/NFA (www.nfa.futures.org).

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

Source: TD Ameritrade Holding Corporation

News Provided by Acquire Media