Financial Literacy Month is a good time to think about your financial wellness. Throughout the month TD Ameritrade will be sharing education ideas and resources to help grow investors’ financial literacy.
April is National Financial Literacy Month, which means it’s a good time to ask: do you consider yourself financially “literate?” It’s an important consideration for investors, because markets are constantly changing, and everyone’s financial plans can use a thorough spring cleaning and review to see what’s working and what isn’t.
Investor education never really ends. So for Financial Literacy Month 2019, TD Ameritrade is launching an Investor’s Manual to help readers better understand financial topics. Whether you’re just getting started with investing or want to explore it all, the TD Ameritrade Investor’s Manual is your guide.
According to a recent TD Ameritrade survey, investors have some homework to do. For example, among survey respondents, only one in five Americans knew the 401(k) contribution limit for 2019 (it’s $19,000). Only a third of those surveyed knew how much they were paying in fees for their 401(k) accounts, and just 35% knew this year’s contribution limit for traditional IRAs ($6,000).
To be sure, money managers and other market professionals
with decades of experience might tell you that they’re still learning about
markets and investing, and that nobody really has all the answers. Like we
said, investor education never really ends.
With that in mind, here are a few key questions to jump-start
our financial literacy exploration:
Here are a few more figures worth noting from our survey of about 1,000 U.S. adults with at least $10,000 in investable assets (conducted by the Harris Poll in mid-February 2019):
52% were aware they can contribute to both 401(k) and traditional IRA accounts (11% said didn’t think this was possible; 21% said they didn’t know).
57% understood that “maxing out” their 401(k)s for the year means meeting the annual IRS contribution limit.
57% considered a company match for their 401(k) accounts as “free money.”
40% mistakenly believed that you need to be in a certain tax bracket to qualify for contributing to a traditional IRA.
Only 38% were aware of the required minimum distributions for IRAs, while just 22% knew the correct contribution deadline period for their IRAs (for 2018, it’s January 1 to April 15).
By devoting time to sit down, thoroughly discuss these questions with your loved ones, and seek guidance, you can make progress toward finding answers and pursuing your targets.
Here are brief summaries of topics we cover in our Investor’s Manual:
For beginning investors: Stocks, bonds, ETFs, and mutual funds
For advanced investors: Options, futures, and forex
For the risk-takers: Cryptocurrencies
Saving for retirement: IRAs, 401(k)
Financial knowledge is indeed powerful stuff, and although there are bound to be a few gaps in anyone’s financial literacy, the good news is that TD Ameritrade has a wide range of investing resources to help.
TD Ameritrade Network is brought to you by TD Ameritrade Media Productions Company. TD Ameritrade Media Productions Company and TD Ameritrade, Inc. are separate but affiliated subsidiaries of TD Ameritrade Holding Corporation. TD Ameritrade Media Productions Company is not a financial adviser, registered investment advisor, or broker-dealer.
April 3, 2019
Financial Literacy Month Series: What Does Financial Literacy Mean to You?
How much do you know about the world of finances? If your answer leaves you wanting more, then join us for a discussion about the importance of financial literacy and what it means for you and your family.
Instructor – Ben Watson
April 10, 2019
Financial Literacy Month Series: How to Get Younger Generations Involved
Time is the greatest gift you can give younger investors. Learn how to get them involved with finances at an early age, and take away some ideas for starting those important conversations about financial topics.
April 17, 2019
Financial Literacy Month Series: Turning Goals into Action
Planning and having goals is all well and good, but if you just stop at the planning stage, you’re only halfway there. Learn how to take your investing from goals to action.
for thinkMoney ®
Financial Communications Society 2016
for Ticker Tape
Content Marketing Awards 2016
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