Key questions and answers from the third quarter earnings call conducted by TD Ameritrade Corp. (AMTD: chart) on July 17, 2008.

Richard Repetto (Sandler O'Neill): How do you look at your return on investment spending thus far?

Joe Moglia: $100 million was the original number we talked about and then there was another $50 million. We have incredible pre-tax margins because we do a good job of managing our business.

As part of managing the business we look at being able to reallocate, we have got an opportunity we think to be able to grow sustainable quality long-term earnings, if that means potentially reallocating some of the pre-tax margins into our investments for growth we will do that.

So the dollars at least that we have spent so far if you recall back when we did the original $100 million, we said look, we believe this is going to work. If it works, we are going to continue to fund some things. If it does not work, we are going to eliminate those.

Prashant Bhatia (Citigroup Global Markets): On the net new assets year-to-date of about $20 billion, could you give us a little bit of color on what maybe the one or two big drivers of that number is?

Joe Moglia: Keep in mind a year ago we really did not have a competitive offering for the long-term investor, unlike today. The investment for growth is paying off and we are seeing take-up in our portfolio allocation services.

We are definitely seeing enhanced productivity with regard to the branches. We are seeing better overall service as well as strong referrals from the call center with regards to clients and back to the sales organization.

And we have seen a pick up in client asset retention over the span of the last year or so as well, and a part of that is because more of our clients today are consolidating with us, whereas a year ago we didn’t have a comprehensive enough solution for them to be able to come to us with.

Prashant Bhatia (Citigroup Global Markets): What are some of the key products that you are going to launch to give them an even more complete set?

Joe Moglia: We just recently announced Pattern Matcher which is a sophisticated chart type of tool and service that our clients will be able to take advantage of. We continue looking at enhancing our conditional orders or the tools associated with that.

We are going to rollout in the fall a more enhanced version with regards to Amerivest. We also already been rolling out more of a fixed income product and service and the ability to do fixed income ladders online as well. We have fixed income wizards to be able to do that.

Prashant Bhatia (Citigroup Global Markets): On the portfolio that’s re-pricing, as that rolls off are you going to stay more short duration on that portfolio and maybe take a little bit more of short-term paying?

Joe Moglia: That will be a function of literally what the market looks like at that particular point in time, what rates look like, what is the shape of the curve, etc. So those decisions get made frankly when you need to make those decisions.

Prashant Bhatia (Citigroup Global Markets): On headcount, where are you now in terms of sales force and how much does that grow by the end of the year?

Joe Moglia: The overall sales representation throughout the country for us is about 750. We try to manage that dynamically as well. If there are branches or parts of the country that we think potentially by having increased sales people would enhance that productivity we will not hesitate to do that.

Howard Chen (Credit Suisse): Can you give us an update on some of the other investment initiatives you may be seeing from pilot kiosks you tried to implement?

Joe Moglia: We have definitely seen a pick up in our overall fixed income business. We have seen a pick up in our mutual fund business. We have seen a pick up in our Amerivest business.

We continue to work on rolling out different types of products and offerings with regards to our cash management, with regards to the pilots and the kiosk idea, that is really still early.

Remember our client segmentation strategy is incredibly focused and we really do believe in the philosophy that we exist for the benefit of our clients and shareholders. So when we spend time working on new products and services we work very hard to make sure the products and services that our clients care about and that we can earn some small return on as well.