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The Fun Never Stops in 2020 - Attn Folio Clubs
On its website, TDAmeritrade offers accounts for both partnerships and investment clubs noting that investment clubs may be partnerships. 

Is there any advantage in choosing one over the other for TDAmeritrade? Our investment club is a partnership. As one of posters suggested, it may be better to register as a partnership to avoid the anti-investment club bias. 

Also, does anyone know whether we will need signatures of all the partners for TDAmeritrade or can we get by with just an authorized agent / general partner signature? 

Thanks. 

Ty Hughes | 571-382-0700



On Dec 4, 2020, 11:03 PM -0500, Stuart Lange via bivio.com <user*25028600001@bivio.com>, wrote:
A "back door" to Schwab is available through TDAmeritrade.  I spoke with them today and they are accepting new club accounts even though they are in the process of mergong with Schwab.  The integration of the two is going to be completed sometime within the next 16 months to 3 years

On Fri, Dec 4, 2020 at 5:53 PM Peter Dunkelberger via bivio.com <user*26984900001@bivio.com> wrote:
Did you ask about partnerships organized for investing?  The term "investment club" can have a lot of baggage.

Peter Dunkelberger 

On Fri, Dec 4, 2020 at 5:41 PM Ty Hughes via bivio.com <user*3139700001@bivio.com> wrote:
I contacted Schwab today. They said they are not opening any new investment club accounts. 

The search continues. I would appreciate hearing from anyone who is happy with their current broker. 

Best regards,

Ty Hughes | 571-382-0700
On Dec 4, 2020, 15:27 -0500, Paul Madison via bivio.com <user*31595900001@bivio.com>, wrote:
Our family club uses Fidelity and it does do Account Sync with bivio.  I had been with Fidelity for 20 years before starting the family club so I was very familiar with it.  Free commissions and good research available.  I like it a lot.

BTW, Fidelity is one of the few brokers who does HSAs (Health Spending Accounts - must have a High Deductible Health Insurance Plan).

Paul Madison

On Fri, Dec 4, 2020 at 1:47 PM Laurie Frederiksen <laurie@bivio.biz> wrote:
On Fri, Dec 4, 2020 at 12:01 PM Mike & Kim Potter via bivio.com <user*22890200001@bivio.com> wrote:
Our club will be transitioning to another broker (not InteractiveBrokers) and I'm wondering since Folio has a 90 day hold on half of our cash, how will that be handled?  Does anyone know?

 

I'd recommend you ask Folio about that.  I don't believe it ended up being a problem when we transitioned our club account last spring,  but I don't completely remember.

Laurie Frederiksen
Invest with your friends!
www.bivio.com

Become our Facebook friend!  www.facebook.com/bivio
Follow us on twitter!  www.twitter.com/bivio
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Mine is at TD. They want all the partners names(signed document) and there is another form...for authorized agents(signed by each). You have to update the info if you change authorized person/s.
Those forms should be available on the website.


On 12/5/2020 12:10 PM, Ty Hughes via bivio.com wrote:
On its website, TDAmeritrade offers accounts for both partnerships and investment club.s noting that investment clubs may be partnerships.

Is there any advantage in choosing one over the other for TDAmeritrade? Our investment club is a partnership. As one of posters suggested, it may be better to register as a partnership to avoid the anti-investment club bias.

Also, does anyone know whether we will need signatures of all the partners for TDAmeritrade or can we get by with just an authorized agent / general partner signature?

Thanks.

Ty Hughes | 571-382-0700



On Dec 4, 2020, 11:03 PM -0500, Stuart Lange via bivio.com <user*25028600001@bivio.com>, wrote:
A "back door" to Schwab is available through TDAmeritrade. I spoke with them today and they are accepting new club accounts even though they are in the process of mergong with Schwab. The integration of the two is going to be completed sometime within the next 16 months to 3 years

On Fri, Dec 4, 2020 at 5:53 PM Peter Dunkelberger via bivio.com <user*26984900001@bivio.com> wrote:
Did you ask about partnerships organized for investing? The term "investment club" can have a lot of baggage.

Peter Dunkelberger

On Fri, Dec 4, 2020 at 5:41 PM Ty Hughes via bivio.com <user*3139700001@bivio.com> wrote:
I contacted Schwab today. They said they are not opening any new investment club accounts.

The search continues. I would appreciate hearing from anyone who is happy with their current broker.

Best regards,

Ty Hughes | 571-382-0700
On Dec 4, 2020, 15:27 -0500, Paul Madison via bivio.com <user*31595900001@bivio.com>, wrote:
Our family club uses Fidelity and it does do Account Sync with bivio. I had been with Fidelity for 20 years before starting the family club so I was very familiar with it. Free commissions and good research available. I like it a lot.

BTW, Fidelity is one of the few brokers who does HSAs (Health Spending Accounts - must have a High Deductible Health Insurance Plan).

Paul Madison

On Fri, Dec 4, 2020 at 1:47 PM Laurie Frederiksen <laurie@bivio.biz> wrote:
On Fri, Dec 4, 2020 at 12:01 PM Mike & Kim Potter via bivio.com <user*22890200001@bivio.com> wrote:
Our club will be transitioning to another broker (not InteractiveBrokers) and I'm wondering since Folio has a 90 day hold on half of our cash, how will that be handled? Does anyone know?

I'd recommend you ask Folio about that. I don't believe it ended up being a problem when we transitioned our club account last spring, but I don't completely remember.

Laurie Frederiksen
Invest with your friends!
www.bivio.com

Become our Facebook friend! www.facebook.com/bivio
Follow us on twitter! www.twitter.com/bivio
Follow Us on Google+

Click here to Subscribe to the Club Cafe email list. Click here to Unsubscribe


--
Thanks,
Genie
(816) 516-3727
TD Ameritrade wanted, and I assume still does, each partner's signature when TDA bought out Scottrade. About a year ago, we thought we would use our uninvested funds for checking with TDA, but again we needed the signature of every partner. Too much trouble-we might write 2-4 checks a year, which means $20 bucks a year in fees to TDA. But it was too much trouble to get everyone's signature.

Peter Dunkelberger

Virus-free. www.avg.com

On Sat, Dec 5, 2020 at 1:18 PM Genie Shoffey via bivio.com <user*15744200001@bivio.com> wrote:
Mine is at TD. They want all the partners names(signed document) and there is another form...for authorized agents(signed by each). You have to update the info if you change authorized person/s.
Those forms should be available on the website.


On 12/5/2020 12:10 PM, Ty Hughes via bivio.com wrote:
On its website, TDAmeritrade offers accounts for both partnerships and investment club.s noting that investment clubs may be partnerships.

Is there any advantage in choosing one over the other for TDAmeritrade? Our investment club is a partnership. As one of posters suggested, it may be better to register as a partnership to avoid the anti-investment club bias.

Also, does anyone know whether we will need signatures of all the partners for TDAmeritrade or can we get by with just an authorized agent / general partner signature?

Thanks.

Ty Hughes | 571-382-0700



On Dec 4, 2020, 11:03 PM -0500, Stuart Lange via bivio.com <user*25028600001@bivio.com>, wrote:
A "back door" to Schwab is available through TDAmeritrade. I spoke with them today and they are accepting new club accounts even though they are in the process of mergong with Schwab. The integration of the two is going to be completed sometime within the next 16 months to 3 years

On Fri, Dec 4, 2020 at 5:53 PM Peter Dunkelberger via bivio.com <user*26984900001@bivio.com> wrote:
Did you ask about partnerships organized for investing? The term "investment club" can have a lot of baggage.

Peter Dunkelberger

On Fri, Dec 4, 2020 at 5:41 PM Ty Hughes via bivio.com <user*3139700001@bivio.com> wrote:
I contacted Schwab today. They said they are not opening any new investment club accounts.

The search continues. I would appreciate hearing from anyone who is happy with their current broker.

Best regards,

Ty Hughes | 571-382-0700
On Dec 4, 2020, 15:27 -0500, Paul Madison via bivio.com <user*31595900001@bivio.com>, wrote:
Our family club uses Fidelity and it does do Account Sync with bivio. I had been with Fidelity for 20 years before starting the family club so I was very familiar with it. Free commissions and good research available. I like it a lot.

BTW, Fidelity is one of the few brokers who does HSAs (Health Spending Accounts - must have a High Deductible Health Insurance Plan).

Paul Madison

On Fri, Dec 4, 2020 at 1:47 PM Laurie Frederiksen <laurie@bivio.biz> wrote:
On Fri, Dec 4, 2020 at 12:01 PM Mike & Kim Potter via bivio.com <user*22890200001@bivio.com> wrote:
Our club will be transitioning to another broker (not InteractiveBrokers) and I'm wondering since Folio has a 90 day hold on half of our cash, how will that be handled? Does anyone know?

I'd recommend you ask Folio about that. I don't believe it ended up being a problem when we transitioned our club account last spring, but I don't completely remember.

Laurie Frederiksen
Invest with your friends!
www.bivio.com

Become our Facebook friend! www.facebook.com/bivio
Follow us on twitter! www.twitter.com/bivio
Follow Us on Google+

Click here to Subscribe to the Club Cafe email list. Click here to Unsubscribe


--
Thanks,
Genie
(816) 516-3727

Virus-free. www.avg.com
"investment club" is not a legal entity, at least as far as the IRS goes. What tax return form do you file? And I would presume that your partnership has a name that probably has the word "club" in it. So I think no matter how you sign up with TDA, you will fill out the form appropriate for your legal structure with the name of your organization. The only reason I suggested inquiring about partnerships is that sometimes the person at the brokerage is not familiar with an investment "club", but they understand a partnership organized for investment purposes.

Peter Dunkelberger

On Sat, Dec 5, 2020 at 1:11 PM Ty Hughes via bivio.com <user*3139700001@bivio.com> wrote:
On its website, TDAmeritrade offers accounts for both partnerships and investment clubs noting that investment clubs may be partnerships.

Is there any advantage in choosing one over the other for TDAmeritrade? Our investment club is a partnership. As one of posters suggested, it may be better to register as a partnership to avoid the anti-investment club bias.

Also, does anyone know whether we will need signatures of all the partners for TDAmeritrade or can we get by with just an authorized agent / general partner signature?

Thanks.

Ty Hughes | 571-382-0700



On Dec 4, 2020, 11:03 PM -0500, Stuart Lange via bivio.com <user*25028600001@bivio.com>, wrote:
A "back door" to Schwab is available through TDAmeritrade. I spoke with them today and they are accepting new club accounts even though they are in the process of mergong with Schwab. The integration of the two is going to be completed sometime within the next 16 months to 3 years

On Fri, Dec 4, 2020 at 5:53 PM Peter Dunkelberger via bivio.com <user*26984900001@bivio.com> wrote:
Did you ask about partnerships organized for investing? The term "investment club" can have a lot of baggage.

Peter Dunkelberger

On Fri, Dec 4, 2020 at 5:41 PM Ty Hughes via bivio.com <user*3139700001@bivio.com> wrote:
I contacted Schwab today. They said they are not opening any new investment club accounts.

The search continues. I would appreciate hearing from anyone who is happy with their current broker.

Best regards,

Ty Hughes | 571-382-0700
On Dec 4, 2020, 15:27 -0500, Paul Madison via bivio.com <user*31595900001@bivio.com>, wrote:
Our family club uses Fidelity and it does do Account Sync with bivio. I had been with Fidelity for 20 years before starting the family club so I was very familiar with it. Free commissions and good research available. I like it a lot.

BTW, Fidelity is one of the few brokers who does HSAs (Health Spending Accounts - must have a High Deductible Health Insurance Plan).

Paul Madison

On Fri, Dec 4, 2020 at 1:47 PM Laurie Frederiksen <laurie@bivio.biz> wrote:
On Fri, Dec 4, 2020 at 12:01 PM Mike & Kim Potter via bivio.com <user*22890200001@bivio.com> wrote:
Our club will be transitioning to another broker (not InteractiveBrokers) and I'm wondering since Folio has a 90 day hold on half of our cash, how will that be handled? Does anyone know?

I'd recommend you ask Folio about that. I don't believe it ended up being a problem when we transitioned our club account last spring, but I don't completely remember.

Laurie Frederiksen
Invest with your friends!
www.bivio.com

Become our Facebook friend! www.facebook.com/bivio
Follow us on twitter! www.twitter.com/bivio
Follow Us on Google+

Click here to Subscribe to the Club Cafe email list. Click here to Unsubscribe

Peter - what is the $20 a year fee for?
Thanks
Kim Potter
On Saturday, December 5, 2020, 03:19:04 PM EST, Peter Dunkelberger via bivio.com <user*26984900001@bivio.com> wrote:


TD Ameritrade wanted, and I assume still does, each partner's signature when TDA bought out Scottrade.  About a year ago, we thought we would use our uninvested funds for checking with TDA, but again we needed the signature of every partner.  Too much trouble-we might write 2-4 checks a year, which means $20 bucks a year in fees to TDA.  But it was too much trouble to get everyone's signature.

Peter Dunkelberger

Virus-free. www.avg.com

On Sat, Dec 5, 2020 at 1:18 PM Genie Shoffey via bivio.com <user*15744200001@bivio.com> wrote:
Mine is at TD.  They want all the partners names(signed document)  and there is another form...for authorized agents(signed by each).  You have to update the info if you change authorized person/s.
Those forms should be available on the website.


On 12/5/2020 12:10 PM, Ty Hughes via bivio.com wrote:
On its website, TDAmeritrade offers accounts for both partnerships and investment club.s noting that investment clubs may be partnerships. 

Is there any advantage in choosing one over the other for TDAmeritrade? Our investment club is a partnership. As one of posters suggested, it may be better to register as a partnership to avoid the anti-investment club bias. 

Also, does anyone know whether we will need signatures of all the partners for TDAmeritrade or can we get by with just an authorized agent / general partner signature? 

Thanks. 

Ty Hughes | 571-382-0700



On Dec 4, 2020, 11:03 PM -0500, Stuart Lange via bivio.com <user*25028600001@bivio.com>, wrote:
A "back door" to Schwab is available through TDAmeritrade.  I spoke with them today and they are accepting new club accounts even though they are in the process of mergong with Schwab.  The integration of the two is going to be completed sometime within the next 16 months to 3 years

On Fri, Dec 4, 2020 at 5:53 PM Peter Dunkelberger via bivio.com <user*26984900001@bivio.com> wrote:
Did you ask about partnerships organized for investing?  The term "investment club" can have a lot of baggage.

Peter Dunkelberger 

On Fri, Dec 4, 2020 at 5:41 PM Ty Hughes via bivio.com <user*3139700001@bivio.com> wrote:
I contacted Schwab today. They said they are not opening any new investment club accounts. 

The search continues. I would appreciate hearing from anyone who is happy with their current broker. 

Best regards,

Ty Hughes | 571-382-0700
On Dec 4, 2020, 15:27 -0500, Paul Madison via bivio.com <user*31595900001@bivio.com>, wrote:
Our family club uses Fidelity and it does do Account Sync with bivio.  I had been with Fidelity for 20 years before starting the family club so I was very familiar with it.  Free commissions and good research available.  I like it a lot.

BTW, Fidelity is one of the few brokers who does HSAs (Health Spending Accounts - must have a High Deductible Health Insurance Plan).

Paul Madison

On Fri, Dec 4, 2020 at 1:47 PM Laurie Frederiksen <laurie@bivio.biz> wrote:
On Fri, Dec 4, 2020 at 12:01 PM Mike & Kim Potter via bivio.com <user*22890200001@bivio.com> wrote:
Our club will be transitioning to another broker (not InteractiveBrokers) and I'm wondering since Folio has a 90 day hold on half of our cash, how will that be handled?  Does anyone know?

 

I'd recommend you ask Folio about that.  I don't believe it ended up being a problem when we transitioned our club account last spring,  but I don't completely remember.

Laurie Frederiksen
Invest with your friends!
www.bivio.com

Become our Facebook friend!  www.facebook.com/bivio
Follow us on twitter!  www.twitter.com/bivio
Follow Us on Google+

Click here to Subscribe to the Club Cafe email list.  Click here to  Unsubscribe


--
Thanks,
Genie
(816) 516-3727

Virus-free. www.avg.com
The checking account issue seams strange. We got checks with our account......years ago. We use check once or twice a year. Never saw a fee from TDA for this.
Genie

On 12/5/2020 4:35 PM, Mike & Kim Potter via bivio.com wrote:
Peter - what is the $20 a year fee for?
Thanks
Kim Potter
On Saturday, December 5, 2020, 03:19:04 PM EST, Peter Dunkelberger via bivio.com <user*26984900001@bivio.com> wrote:


TD Ameritrade wanted, and I assume still does, each partner's signature when TDA bought out Scottrade. About a year ago, we thought we would use our uninvested funds for checking with TDA, but again we needed the signature of every partner. Too much trouble-we might write 2-4 checks a year, which means $20 bucks a year in fees to TDA. But it was too much trouble to get everyone's signature.

Peter Dunkelberger

Virus-free. www.avg.com

On Sat, Dec 5, 2020 at 1:18 PM Genie Shoffey via bivio.com <user*15744200001@bivio.com> wrote:
Mine is at TD. They want all the partners names(signed document) and there is another form...for authorized agents(signed by each). You have to update the info if you change authorized person/s.
Those forms should be available on the website.


On 12/5/2020 12:10 PM, Ty Hughes via bivio.com wrote:
On its website, TDAmeritrade offers accounts for both partnerships and investment club.s noting that investment clubs may be partnerships.

Is there any advantage in choosing one over the other for TDAmeritrade? Our investment club is a partnership. As one of posters suggested, it may be better to register as a partnership to avoid the anti-investment club bias.

Also, does anyone know whether we will need signatures of all the partners for TDAmeritrade or can we get by with just an authorized agent / general partner signature?

Thanks.

Ty Hughes | 571-382-0700



On Dec 4, 2020, 11:03 PM -0500, Stuart Lange via bivio.com <user*25028600001@bivio.com>, wrote:
A "back door" to Schwab is available through TDAmeritrade. I spoke with them today and they are accepting new club accounts even though they are in the process of mergong with Schwab. The integration of the two is going to be completed sometime within the next 16 months to 3 years

On Fri, Dec 4, 2020 at 5:53 PM Peter Dunkelberger via bivio.com <user*26984900001@bivio.com> wrote:
Did you ask about partnerships organized for investing? The term "investment club" can have a lot of baggage.

Peter Dunkelberger

On Fri, Dec 4, 2020 at 5:41 PM Ty Hughes via bivio.com <user*3139700001@bivio.com> wrote:
I contacted Schwab today. They said they are not opening any new investment club accounts.

The search continues. I would appreciate hearing from anyone who is happy with their current broker.

Best regards,

Ty Hughes | 571-382-0700
On Dec 4, 2020, 15:27 -0500, Paul Madison via bivio.com <user*31595900001@bivio.com>, wrote:
Our family club uses Fidelity and it does do Account Sync with bivio. I had been with Fidelity for 20 years before starting the family club so I was very familiar with it. Free commissions and good research available. I like it a lot.

BTW, Fidelity is one of the few brokers who does HSAs (Health Spending Accounts - must have a High Deductible Health Insurance Plan).

Paul Madison

On Fri, Dec 4, 2020 at 1:47 PM Laurie Frederiksen <laurie@bivio.biz> wrote:
On Fri, Dec 4, 2020 at 12:01 PM Mike & Kim Potter via bivio.com <user*22890200001@bivio.com> wrote:
Our club will be transitioning to another broker (not InteractiveBrokers) and I'm wondering since Folio has a 90 day hold on half of our cash, how will that be handled? Does anyone know?

I'd recommend you ask Folio about that. I don't believe it ended up being a problem when we transitioned our club account last spring, but I don't completely remember.

Laurie Frederiksen
Invest with your friends!
www.bivio.com

Become our Facebook friend! www.facebook.com/bivio
Follow us on twitter! www.twitter.com/bivio
Follow Us on Google+

Click here to Subscribe to the Club Cafe email list. Click here to Unsubscribe


--
Thanks,
Genie
(816) 516-3727

Virus-free. www.avg.com

--
Thanks,
Genie
(816) 516-3727

​Update.
 
I spoke with both Schwab and TD Ameritrade this morning. According to the Schwab representative, Schwab has raised its account minimum for new investment clubs to ​$1 million. The same representative said the $1 million thresholds would apply to partnership accounts whose business is investing, even if the partnership was not called an investment club. The lower $250k threshold only applies to businesses. I don’t know why Schwab draws that distinction because the legal entity is a general partnership regardless of whether it operates as an investment club or a business. Schwab clearly does not want to deal with small investment clubs. However, Schwab has grandfathered all existing investment club accounts, so they are not subject to the $1 million minimum.

TD Ameritrade was far more accommodating and helpful, although I expect that will change as their operations are absorbed by Schwab over the next 18 months. TD Ameritrade’s application is a little easier than that of Schwab. The TD Ameritrade rep said that a copy of the partnership agreement with signatures would suffice in lieu of individual partner signatures on the account application. (We’ll see if that advice is correct.)

One small difference between the Schwab and TD Ameritrade account applications is in the disclosure of beneficial ownership. The TD Schwab threshold is 10%, while the TD Ameritrade threshold is 25% (10% for foreign entities).

So, I think we are going to try to move our FolioInvesting account to TD Ameritrade.

Best regards,

Ty Hughes

 
 
1
In my opinion, this is very disappointing and short-sighted on Schwab's part.  A lot of people use their work with IC's to discipline themselves about staying connected with their investments, and to help with research not only for the club, but also for their personal account(s).  In a lot of cases, their stake in their club is only a small portion of their overall holdings.  Working with TDA's investment website is vastly different from working with Etrade's, and an individual is likely to prefer one over the other, or choose one based on which site the club deals with.  Discouraging clubs may be inadvertently turning away business.


On Mon, Dec 7, 2020 at 10:28 AM, Ty Hughes via bivio.com
<user*3139700001@bivio.com> wrote:

Update.

I spoke with both Schwab and TD Ameritrade this morning. According to the Schwab representative, Schwab has raised its account minimum for new investment clubs to $1 million. The same representative said the $1 million thresholds would apply to partnership accounts whose business is investing, even if the partnership was not called an investment club. The lower $250k threshold only applies to businesses. I don't know why Schwab draws that distinction because the legal entity is a general partnership regardless of whether it operates as an investment club or a business. Schwab clearly does not want to deal with small investment clubs. However, Schwab has grandfathered all existing investment club accounts, so they are not subject to the $1 million minimum.

TD Ameritrade was far more accommodating and helpful, although I expect that will change as their operations are absorbed by Schwab over the next 18 months. TD Ameritrade's application is a little easier than that of Schwab. The TD Ameritrade rep said that a copy of the partnership agreement with signatures would suffice in lieu of individual partner signatures on the account application. (We'll see if that advice is correct.)

One small difference between the Schwab and TD Ameritrade account applications is in the disclosure of beneficial ownership. The TD Schwab threshold is 10%, while the TD Ameritrade threshold is 25% (10% for foreign entities).

So, I think we are going to try to move our FolioInvesting account to TD Ameritrade.


Best regards,

Ty Hughes



1
One of BetterInvesting's roles is as an advocate for its member clubs.
I hope Ken Zendel sees your message, Daniel, and uses those points in communication with TDA, Schwab, E*Trade and other brokers.

Linda Glein

Linda





On Mon, Dec 7, 2020 at 9:43 AM Daniel Williams via bivio.com <user*33673100001@bivio.com> wrote:
In my opinion, this is very disappointing and short-sighted on Schwab's part. A lot of people use their work with IC's to discipline themselves about staying connected with their investments, and to help with research not only for the club, but also for their personal account(s). In a lot of cases, their stake in their club is only a small portion of their overall holdings. Working with TDA's investment website is vastly different from working with Etrade's, and an individual is likely to prefer one over the other, or choose one based on which site the club deals with. Discouraging clubs may be inadvertently turning away business.


On Mon, Dec 7, 2020 at 10:28 AM, Ty Hughes via bivio.com
<user*3139700001@bivio.com> wrote:

Update.

I spoke with both Schwab and TD Ameritrade this morning. According to the Schwab representative, Schwab has raised its account minimum for new investment clubs to $1 million. The same representative said the $1 million thresholds would apply to partnership accounts whose business is investing, even if the partnership was not called an investment club. The lower $250k threshold only applies to businesses. I don't know why Schwab draws that distinction because the legal entity is a general partnership regardless of whether it operates as an investment club or a business. Schwab clearly does not want to deal with small investment clubs. However, Schwab has grandfathered all existing investment club accounts, so they are not subject to the $1 million minimum.

TD Ameritrade was far more accommodating and helpful, although I expect that will change as their operations are absorbed by Schwab over the next 18 months. TD Ameritrade's application is a little easier than that of Schwab. The TD Ameritrade rep said that a copy of the partnership agreement with signatures would suffice in lieu of individual partner signatures on the account application. (We'll see if that advice is correct.)

One small difference between the Schwab and TD Ameritrade account applications is in the disclosure of beneficial ownership. The TD Schwab threshold is 10%, while the TD Ameritrade threshold is 25% (10% for foreign entities).

So, I think we are going to try to move our FolioInvesting account to TD Ameritrade.


Best regards,

Ty Hughes



1
Thanks Linda!


On Mon, Dec 7, 2020 at 12:42 PM, Linda Glein via bivio.com
<user*21345500001@bivio.com> wrote:
One of BetterInvesting's roles is as an advocate for its member clubs.
I hope Ken Zendel sees your message, Daniel, and uses those points in communication with TDA, Schwab, E*Trade and other brokers.

Linda Glein

Linda





On Mon, Dec 7, 2020 at 9:43 AM Daniel Williams via bivio.com <user*33673100001@bivio.com> wrote:
In my opinion, this is very disappointing and short-sighted on Schwab's part.  A lot of people use their work with IC's to discipline themselves about staying connected with their investments, and to help with research not only for the club, but also for their personal account(s).  In a lot of cases, their stake in their club is only a small portion of their overall holdings.  Working with TDA's investment website is vastly different from working with Etrade's, and an individual is likely to prefer one over the other, or choose one based on which site the club deals with.  Discouraging clubs may be inadvertently turning away business.


On Mon, Dec 7, 2020 at 10:28 AM, Ty Hughes via bivio.com
<user*3139700001@bivio.com> wrote:

Update.

I spoke with both Schwab and TD Ameritrade this morning. According to the Schwab representative, Schwab has raised its account minimum for new investment clubs to $1 million. The same representative said the $1 million thresholds would apply to partnership accounts whose business is investing, even if the partnership was not called an investment club. The lower $250k threshold only applies to businesses. I don't know why Schwab draws that distinction because the legal entity is a general partnership regardless of whether it operates as an investment club or a business. Schwab clearly does not want to deal with small investment clubs. However, Schwab has grandfathered all existing investment club accounts, so they are not subject to the $1 million minimum.

TD Ameritrade was far more accommodating and helpful, although I expect that will change as their operations are absorbed by Schwab over the next 18 months. TD Ameritrade's application is a little easier than that of Schwab. The TD Ameritrade rep said that a copy of the partnership agreement with signatures would suffice in lieu of individual partner signatures on the account application. (We'll see if that advice is correct.)

One small difference between the Schwab and TD Ameritrade account applications is in the disclosure of beneficial ownership. The TD Schwab threshold is 10%, while the TD Ameritrade threshold is 25% (10% for foreign entities).

So, I think we are going to try to move our FolioInvesting account to TD Ameritrade.


Best regards,

Ty Hughes



1
Laurie, I sent the following to BetterInvesting:

I think Folio has done it's clients a major disservice. They
did not give clubs enough time to accomplish this change.

Seriously:
They announced this on Dec 7th without regard for the
following

The Holiday season which means people had only 23 business
days.
A time of unprecedented delayed mail delivery.
Clubs only meet 1 x month and often not during December
Clubs must pass a motion to make such a change
Clubs have to gather signatures from multiple people during
a time when they cannot meet in person!

This is infuriating. THEY are being unreasonable.
I ask that on behalf of its members BetterInvesting lodge a
protest with Goldman Sachs/Folio.
We also have a Folio Investing account and have decided to move the account to E*Trade. Folio Investing did not provide much advanced notice. 

If you don't want your account automatically moved to Interactive Brokers, you must opt out with Folio Investing no later than January 8 (Friday). You can do this by email or phone. With email, you will have record of your election. I was not able to reach them by phone.

When you opt out, you'll receive this response:

We have received your request to opt out of the transition to Interactive Brokers, LLC. 
 
You must take one of the following actions by January 29, 2021: (i) selling your securities and withdrawing your cash, or (ii) transferring your account(s) to another broker-dealer (Folio account transfer fees are waived.).
 
If you do not complete your transfer to another broker-dealer by January 29, 2021, your account(s) will be restricted to sell transactions only and you will be charged a transfer fee of $100 per account when you transfer your account(s) to another firm.  
 
If you elect to liquidate your accounts instead and do not withdraw your funds by January 29, 2021, your account will be restricted to sell transactions only.

Hope this information is helpful.

Ty H.


Your note makes a lot of very valid points Linda. This is also all happening during the busiest support time of the year. Clubs who have tax reporting issues to address with Folio may have a much more difficult time doing so.

It will be interesting to hear what response you receive from Better Investing.

Laurie Frederiksen
Invest with your friends!
www.bivio.com

Become our Facebook friend! www.facebook.com/bivio
Follow us on twitter! www.twitter.com/bivio
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On Wed, Jan 6, 2021 at 1:17 PM Ty Hughes via bivio.com <user*3139700001@bivio.com> wrote:
We also have a Folio Investing account and have decided to move the account to E*Trade. Folio Investing did not provide much advanced notice.

If you don't want your account automatically moved to Interactive Brokers, you must opt out with Folio Investing no later than January 8 (Friday). You can do this by email or phone. With email, you will have record of your election. I was not able to reach them by phone.

When you opt out, you'll receive this response:

We have received your request to opt out of the transition to Interactive Brokers, LLC.
You must take one of the following actions by January 29, 2021: (i) selling your securities and withdrawing your cash, or (ii) transferring your account(s) to another broker-dealer (Folio account transfer fees are waived.).
If you do not complete your transfer to another broker-dealer by January 29, 2021, your account(s) will be restricted to sell transactions only and you will be charged a transfer fee of $100 per account when you transfer your account(s) to another firm.
If you elect to liquidate your accounts instead and do not withdraw your funds by January 29, 2021, your account will be restricted to sell transactions only.

Hope this information is helpful.

Ty H.


Another thing I would add to this list of complaints is that in all likelihood it will mean dealing with Folio over two more tax seasons.  I had hopes we would be able to select a new broker and accomplish the move before the end of 2020.  I was wrong - didn't happen.  We only have 11 in our club but needed lots of signatures and it was the strangest holiday season ever.  But I transmitted all gazillion pages to Fidelity yesterday!!

Kim Potter
BI Brighton Model Investment Club


On Wednesday, January 6, 2021, 01:23:39 PM EST, Laurie Frederiksen <laurie@bivio.biz> wrote:


Your note makes a lot of very valid points Linda.  This is also all happening during the busiest support time of the year.  Clubs who have tax reporting issues to address with Folio may have a much more difficult time doing so.

It will be interesting to hear what response you receive from Better Investing.

Laurie Frederiksen
Invest with your friends!
www.bivio.com

Become our Facebook friend!  www.facebook.com/bivio
Follow us on twitter!  www.twitter.com/bivio
Follow Us on Google+

Click here to Subscribe to the Club Cafe email list.  Click here to  Unsubscribe


On Wed, Jan 6, 2021 at 1:17 PM Ty Hughes via bivio.com <user*3139700001@bivio.com> wrote:
We also have a Folio Investing account and have decided to move the account to E*Trade. Folio Investing did not provide much advanced notice. 

If you don't want your account automatically moved to Interactive Brokers, you must opt out with Folio Investing no later than January 8 (Friday). You can do this by email or phone. With email, you will have record of your election. I was not able to reach them by phone.

When you opt out, you'll receive this response:

We have received your request to opt out of the transition to Interactive Brokers, LLC. 
 
You must take one of the following actions by January 29, 2021: (i) selling your securities and withdrawing your cash, or (ii) transferring your account(s) to another broker-dealer (Folio account transfer fees are waived.).
 
If you do not complete your transfer to another broker-dealer by January 29, 2021, your account(s) will be restricted to sell transactions only and you will be charged a transfer fee of $100 per account when you transfer your account(s) to another firm.  
 
If you elect to liquidate your accounts instead and do not withdraw your funds by January 29, 2021, your account will be restricted to sell transactions only.

Hope this information is helpful.

Ty H.


Makes me so happy my club stayed with bivio and didn't transfer to folio

Diane Ellison

From: club_cafe@bivio.com <club_cafe@bivio.com> On Behalf Of Laurie Frederiksen
Sent: Wednesday, January 6, 2021 11:23 AM
To: The Club Cafe <club_cafe@bivio.com>
Subject: Re: [club_cafe] The Fun Never Stops in 2020 - Attn Folio Clubs

Your note makes a lot of very valid points Linda.  This is also all happening during the busiest support time of the year.  Clubs who have tax reporting issues to address with Folio may have a much more difficult time doing so.

It will be interesting to hear what response you receive from Better Investing.

Laurie Frederiksen
Invest with your friends!
www.bivio.com

Become our Facebook friend!  www.facebook.com/bivio
Follow us on twitter!  www.twitter.com/bivio
Follow Us on Google+

Click here to Subscribe to the Club Cafe email list.  Click here to  Unsubscribe

On Wed, Jan 6, 2021 at 1:17 PM Ty Hughes via bivio.com <user*3139700001@bivio.com> wrote:

We also have a Folio Investing account and have decided to move the account to E*Trade. Folio Investing did not provide much advanced notice. 

If you don't want your account automatically moved to Interactive Brokers, you must opt out with Folio Investing no later than January 8 (Friday). You can do this by email or phone. With email, you will have record of your election. I was not able to reach them by phone.

When you opt out, you'll receive this response:

We have received your request to opt out of the transition to Interactive Brokers, LLC. 

 

You must take one of the following actions by January 29, 2021: (i) selling your securities and withdrawing your cash, or (ii) transferring your account(s) to another broker-dealer (Folio account transfer fees are waived.).

 

If you do not complete your transfer to another broker-dealer by January 29, 2021, your account(s) will be restricted to sell transactions only and you will be charged a transfer fee of $100 per account when you transfer your account(s) to another firm.  

 

If you elect to liquidate your accounts instead and do not withdraw your funds by January 29, 2021, your account will be restricted to sell transactions only.

Hope this information is helpful.

Ty H.