Ameritrade, Online Brokers See Gold Mine in Retirement Planning

by Trefis Team
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As economic uncertainty leads consumers to increase (or plan to increase) their savings, investment advisers are offering portfolios to suit their specific needs. Ameritrade’s (NYSE:AMTD) online advisory service launched Amerivest Supplement Income Portfolio, a set of actively managed mutual funds intended to help generate income, with options to investors to customize the payment amount and schedule. [1] The portfolio aims to provide investors with income supplementing other sources of retirement income, such as social security and pensions. Ameritrade competes with other brokerages as Charles Schwab Corporation (NYSE:SCHW) and E*Trade Financial (NASDAQ:ETFC).

See our complete analysis of Ameritrade’s stock here

Other Brokerages Following Suit

Charles Schwab released nine key guidelines for better retirement planning as almost a quarter of the nation’s population will approach retirement age in the next 20 years. [2] According to TD Ameritrade’s annual New Year’s Resolution survey in 2012, 51% of the people surveyed intend to save for a financial emergency and 30% want to start or bolster their retirement savings. [3] October saw Americans building up their savings, as consumer spending grew less than expected even as income recorded the largest gains in seven months. [4] Ameritrade and Schwab are also enhancing their technology offerings to advisers in order to increase their efficiency in serving their clients. [5] [6]

Our Price estimate for Ameritrade is $22, which is a premium of about 40% to the current market price.

Understand How a Company’s Products Impact its Stock Price at Trefis

  1. TD Ameritrade Announces the Launch of Amerivest Supplemental Income Portfolios, TD Ameritrade Newsroom []
  2. New Schwab Principles Designed to Help Americans Get Ready to Live on Retirement Income, Charles Schwab Press Release []
  3. Americans Waiting For Economic Uncertainty to Clear; 2012 New Year’s Resolutions are All About “Me”, TD Ameritrade Newsroom []
  4. Orders for U.S. Durable Goods Fall as Demand Cools for Jets, Capital Goods, Bloomberg []
  5. TD Ameritrade Institutional’s New Options Market Center, a Powerful Trio of Technology, Expertise and Education, TD Ameritrade Newsroom []
  6. Schwab Talks Technology for Independent Investment Advisors at Annual Conference, Charles Schwab Press Release []
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