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62% of Investors Have New Investment Approach


Nearly two-thirds, 62%, of investors have changed their approach to investing following the recession, TD Ameritrade found in a survey. The most common changes were moving into fixed income, cited by 28%, and into mutual funds and managed accounts, cited by 23%.

And 22% are relying more on a financial processional following the economic downturn.

"The recession was a 'light bulb' moment for many in this country, causing sophisticated investors and beginners to re-evaluate how they save and invest for their futures," said Stuart Rubinstein, managing director of client engagement at TD Ameritrade. "Many Americans today have adopted more cautious money management habits. They are also looking for added guidance-whether that be through products that feature more education and assistance or financial advisers-both of which can help investors better understand how to manage their money."

Surprisingly, since men are usually more comfortable with risk, the survey showed that men have become more conservative than women following the recession, with 33% of men moving into bonds or CDs, compared with 21% of women. Twenty-five percent of men are relying more heavily on a financial professional since the downturn, compared to 18% of women, and 25% of men have moved assets into mutual funds or managed products in this time, compared to 18% of women.

 

AARP to Offer Financial Guidance Through Schwab

AARP and Charles Schwab are partnering to offer AARP members financial guidance through Schwab.

The program, called AARP Financial Guidance Services, includes complimentary financial consultations, educational seminars at Schwab's 300 branches, a dedicated toll-free number and a fee rebate on the Schwab Managed Portfolios, a professionally managed, diversified portfolio of mutual funds covering a range of investment strategies.

"Our members tell us that achieving financial security is their top goal along the way to living their best lives," said AARP President John Wider. "This new program will give them easy access to straightforward information and financial guidance from a familiar source in a pressure-free setting to help them with their goals and dreams."

Schwab EVP Ben Brigeman added: "The challenging economy has disrupted how Americans are thinking about and planning for retirement. Their need for information and access to resources is greater than ever."

 

Quote of the Week

“While not at a fast pace, the economy will continue to recover both here and around the globe. People are starting to believe that more and more.”

-James A.C. Kennedy

Chief Executive Officer, T. Rowe Price Group Inc.