On Tue, Feb 17, 2026 at 8:10 PM, Vickie Rabourn via bivio.com
<user*26711600001@bivio.com> wrote:
We have always done what your club does when funds need ot be transferred to a member: Sell shares. Send money to our club account. Cut a check for the member. However, try to transfer shares to a member or cash to their personal account. Schwab will not cooperate. Even if the first three people tell you, "Sure. No problem. Just fill out this form." Not!! The underlings do not understand that the transaction will not go through.
It took us about 8 months to transfer shares to a member's personal brokerage account, and Schwab's upper echelon made it very clear to us that this was a one-time exception that would NEVER again be allowed. You cannot even imagine the number of hoops we had to jump through. It was stressful, exhausting, and frustrating. The withdrawing member even contacted the SEC. That may have been why Schwab finally relented. Let me reiterate: Schwab does NOT want to deal with investment clubs.
Thank you Vickie. I'm a little confused however. My question has to do with transferring shares from the Club's brokerage account to a personal brokerage account. For example, transferring shares from a club's Schwab account to a member's personal brokerage account at Schwab or to maybe a Fidelity account. We have no issues transferring cash because we have a registered bank account with Schwab. Transferring cash is a breeze. Once we sell stock and the cash is available in the Schwab account we simply do an online transfer to the club's registered bank account. When that is completed, we write checks for partial or full withdrawals. So, shares transfers, not cash. Hope this helps clarify.
"Investment clubs are limited to like to like outbound transfers. Most investment clubs at Schwab will open a like registered bank account at an outside institution and move cash out that way. Investment clubs can also open like registered brokerage accounts at outside institutions to facilitate assets movement."
Club members cannot transfer shares from a Schwab club account to a personal account or to any 3rd party account. Schwab does not like that they inherited club accounts when they bought TD Ameritrade and expressly discourages them. They say - and this is from the top, "Clubs should meet to discuss stocks and the market. Then invest only in their own personal accounts."
For Clubs that have Fidelity as their brokerage, have you run into any problems transferring stocks/shares to individual partners accounts. For further clarity and an example, if a partner has a personal Schwab account, are you able to transfer shares to their personal account in cases of withdrawals and part of a payout? Again, have you run into any problems with Fidelity during the process of transfers?
Thanks.
Kathy McGovern on
My club has been with Fidelity for about a year and we have transferred stocks to a couple of withdrawing members with no difficulties. Schwab would not allow us to do this so we changed brokerages.
Kathy McGovern
On Feb 18, 2026, at 3:21 AM, KENNETH MONTGOMERY via bivio.com <user*32056900001@bivio.com> wrote:
Thank you! Same situation with our Club. We are working on the transition to Fidelity.
On Tue, Feb 17, 2026 at 8:10 PM, Vickie Rabourn via bivio.com
<user*26711600001@bivio.com> wrote:
We have always done what your club does when funds need ot be transferred to a member: Sell shares. Send money to our club account. Cut a check for the member. However, try to transfer shares to a member or cash to their personal account. Schwab will not cooperate. Even if the first three people tell you, "Sure. No problem. Just fill out this form." Not!! The underlings do not understand that the transaction will not go through.
It took us about 8 months to transfer shares to a member's personal brokerage account, and Schwab's upper echelon made it very clear to us that this was a one-time exception that would NEVER again be allowed. You cannot even imagine the number of hoops we had to jump through. It was stressful, exhausting, and frustrating. The withdrawing member even contacted the SEC. That may have been why Schwab finally relented. Let me reiterate: Schwab does NOT want to deal with investment clubs.
Thank you Vickie. I'm a little confused however. My question has to do with transferring shares from the Club's brokerage account to a personal brokerage account. For example, transferring shares from a club's Schwab account to a member's personal brokerage account at Schwab or to maybe a Fidelity account. We have no issues transferring cash because we have a registered bank account with Schwab. Transferring cash is a breeze. Once we sell stock and the cash is available in the Schwab account we simply do an online transfer to the club's registered bank account. When that is completed, we write checks for partial or full withdrawals. So, shares transfers, not cash. Hope this helps clarify.
"Investment clubs are limited to like to like outbound transfers. Most investment clubs at Schwab will open a like registered bank account at an outside institution and move cash out that way. Investment clubs can also open like registered brokerage accounts at outside institutions to facilitate assets movement."
Club members cannot transfer shares from a Schwab club account to a personal account or to any 3rd party account. Schwab does not like that they inherited club accounts when they bought TD Ameritrade and expressly discourages them. They say - and this is from the top, "Clubs should meet to discuss stocks and the market. Then invest only in their own personal accounts."
For Clubs that have Fidelity as their brokerage, have you run into any problems transferring stocks/shares to individual partners accounts. For further clarity and an example, if a partner has a personal Schwab account, are you able to transfer shares to their personal account in cases of withdrawals and part of a payout? Again, have you run into any problems with Fidelity during the process of transfers?