Business & Finance
Business and Finance
Business and Finance
Mon, January 31, 2011 
OMAHA, Neb.--([ BUSINESS WIRE ])--The recession of 2008-2009 has decreased Americansa™ tolerance for risk, according to a new [ survey ] released by TD Ameritrade Holding Corporation (NASDAQ: AMTD).
"The recession was a alight bulba™ moment for many in this country, causing sophisticated investors and beginners alike to re-evaluate how they save and invest for their futures"
According to the findings, 62 percent of investors changed their approach to investing in the aftermath of the 2008-2009 economic recession. Reallocating more assets to fixed income or moving more assets to mutual funds or managed accounts were the most common activities. In fact, 28 percent of investors reported moving more money into bonds or CDs following the aftermath of the recession, while 23 percent reported moving their money to mutual funds or other managed investment products.
Seeking the help of financial professionals is also increasingly important to respondents, as nearly one quarter (22 percent) of investors report relying more on a professional investment advisor following the recession.
aThe recession was a alight bulba™ moment for many in this country, causing sophisticated investors and beginners alike to re-evaluate how they save and invest for their futures,a said Stuart Rubinstein, managing director of client engagement at TD Ameritrade. aMany Americans today have adopted more cautious money management habits. They are also looking for added guidance a" whether that be through products that feature more education and assistance or financial advisors a" both of which can help investors better understand how to manage their money.a
Between the sexes, men proved to be particularly impacted in terms of risk tolerance compared to their female counterparts. Key findings to support this trend include:
- 33 percent of investors who moved more money into bonds or CDs following the recession were men, compared to 21 percent of women who did the same.
- 25 percent of male investors report relying more on a professional investment advisor following the recession compared to 18 percent of female investors who reported the same.
- 27 percent of investors who moved their money to mutual funds or other managed investment products following the recession were men, compared to 18 percent of women who did the same.
- 35 percent of male investors report being more selective in the stocks they buy following the recession compared to 24 percent of female investors.
Despite their efforts to protect wealth, male investors have not been discouraged by the markets. In fact, the number of men who reported investing new money in the stock market following the recession (20 percent) is twice that of women who reported the same (10 percent).
TD Ameritrade offers the following tips for wary investors looking to begin 2011 on the right track:
1. Educate yourself. Financial education is important for all levels of investors, whether experienced or just starting out. [ Investools(TM) Investor Education ]offers financial classes and workshops to help empower investors to rely on their own investment knowledge.
2. Be informed. Independent research provides investors with the information needed to help make informed investing decisions. TD Ameritrade offers [ online investing and trading ideas and valuable research ] from third-party industry leaders to help investors create and implement the trading or investing strategy that best fits their needs.
3. Act! Financial planning is not effective unless you take action. For investors needing added guidance in pursuing their long-term investment goals, [ Amerivest Guided Portfolios ] provides ongoing investment management and rebalancing. For professional money management and financial planning assistance, TDAmeritradea™s [ AdvisorDirecta" ] service can refer investors to a knowledgeable, independent Registered Investment Advisor (RIA) who can help them pursue their investment goals.
4. Pursue a new strategy. According to a recent survey, exchange traded funds (ETFs) are being used more frequently in retirement accounts among TDAmeritrade clients. TDAmeritradea™s [ ETF Market Center ] includes a list of more than 100 commission-free ETFs a" from a variety of well-known providers a" that have been evaluated and selected by independent experts at Morningstar Associates, LLC, a registered investment advisor and unit of Morningstar, as well as easy-to-use tools to help investors build better-diversified portfolios more cost-effectively.
5. Consider making a change. [ Converting a Traditional IRA to a Roth IRA ] could equate to substantial savings. Thanks to new regulation changes in 2010, investors of all income levels are now eligible for a Roth conversion.
For more information, visit [ http://www.tdameritrade.com/welcome4.html ].
AMTD-G
Before investing in any ETF, carefully consider the investment objectives, risks, charges and expenses involved. For a prospectus containing this and other important information, please visit the TD Ameritrade Web site or contact a TD Ameritrade Client Services representative at 800-669-3900. Please read the prospectus carefully before investing.
ETFs are registered investment companies that trade on an exchange like a stock. Commission fees apply. Those who practice frequent dollar cost averaging and active traders may generate trading costs that outweigh any cost benefit. Trading prices may not reflect the actual Net Asset Value of the underlying securities. ETFs can entail risks similar to direct stock ownership and are subject to risks similar to those of their underlying securities, including, but not limited to, market, sector or industry risks, and those regarding short-selling and margin account maintenance.
The list of commission-free ETFs selected by Morningstar Associates is subject to change without notice. Morningstar Associates does not warrant this information to be accurate, complete or timely. Morningstar Associates is not responsible for any damages or losses arising from the use of this information. Past performance is no guarantee of future results. Use of the list of commission-free ETFs by ETF Market Center users does not establish an advisory relationship with Morningstar Associates. Particular commission-free ETFs may not be appropriate investments for all investors, and there may be other ETFs or investment options that are more suitable. Neither Morningstar Associates nor Morningstar, Inc. is affiliated with TD Ameritrade and its affiliates.
Neither Investools Inc. nor any of its officers, employees, representatives, agents or independent contractors are, in such capacities, licensed financial advisors, registered investment advisors or registered broker-dealers. Investools Inc. does not provide investment or financial advice or make investment recommendations, nor is it in the business of transacting trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular clienta™s situation. Nothing contained in this communication constitutes a solicitation, recommendation, promotion, endorsement or offer by Investools Inc. of any particular security, transaction or investment.
Investools Inc. and TD Ameritrade, Inc., are separate but affiliated companies and are not responsible for each othera™s services or policies.
Amerivest Guided Portfolios is a discretionary investment advisory service of Amerivest Investment Management, LLC, an SEC-registered investment advisor.Brokerage services provided by TD Ameritrade, Inc., member FINRA/SIPC/NFA.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 II).
Potential AdvisorDirect clients should typically have at least $200,000 in assets to invest. Some RIAs have higher or lower minimum asset requirements. 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 RIAa™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 RIAa™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.
Past performance of a security does not guarantee future results or success.
Diversification does not eliminate the risk of experiencing investment losses.
About the Survey
These results are based on a survey conducted by Harris Interactive on behalf of TD Ameritrade Holding Corporation. One thousand eighty-eight (1,088) adults between 22 and 80 years participated in an online survey conducted September 28 through October 19, 2010.The margin of error in this survey is 3.0 percentage points. This means that in 19 cases out of 20, survey results based on 1,088 respondents will differ by no more than 3.0 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 80.Harris Interactive and TD AmeritradeHolding Corporation are separate, unaffiliated companies and are not responsible for each othera™s products and services.
About Harris Interactive
Harris Interactive is a global leader in custom market research with offices in North America, Europe and Asia locations. For more information, please visit [ www.harrisinteractive.com ].
About TD Ameritrade Holding Corporation
TD Ameritrade Holding Corporation (NASDAQ: AMTD), through its brokerage1 and education subsidiaries, combines innovative trading technology, easy-to-use and understand [ trading tools ], investment services, investor education and superior client service to create a market-leading financial services experience. Home to Kiplingera™s #1 online broker,2 the award-winning thinkorswim trading technology,3 and the respected Investools investor education program, TD Ameritrade provides millions of retail investors, traders and independent registered investment advisors with the tools, service and support they need to help build confidence in todaya™s rapidly changing market environment. For more information and resources for journalists, please visit the TD Ameritrade newsroom at[ www.amtd.com ].
1 TDAmeritrade, Inc., member FINRA ([ www.FINRA.org ]) /SIPC ([ www.SIPC.org ]) /NFA ([ www.nfa.futures.org) ], and TDAmeritrade Clearing, Inc., member FINRA/SIPC.
2 TD Ameritrade was ranked #1 and received an overall score of 5 stars (tied for first place with one other broker) in the Kiplingera™s Online Broker Ratings, Kiplingera™s Personal Finance, 02/2011.Fourteen brokers were rated in the categories: Costs, Web site usability, Investment choices, Customer service, and Research and tools.
3 thinkorswim, prior to joining TD Ameritrade, earned 4.9 stars, the top score, in the category aTrading Technology,a and was rated #1 overall online broker in Barrona™s ranking of online brokers, 3/15/2010. thinkorswim was evaluated versus others in eight total categories, including trade experience, trading technology, usability, range of offerings, research amenities, portfolio analysis and reporting, customer service and education and costs. thinkorswim topped the list in 2006, 2007, 2009 and 2010 with the highest weighted-average score. Barrona™s is a registered trademark of Dow Jones & Company © 2006-2010.
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