Transition from TDA to Schwab
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My club has been with Schwab for over 20 years. There are four items that you may want to keep in mind while dealing with the transition: 1. Schwab allows check writing on the brokerage account. There is no need for a separate bank account. 2. For partners who have a personal account at Schwab, the investment club account was added as an additional account under the personal account login. The drawback was that if I logged in at a club meeting, everyone could see the balances of all my accounts. You may want to ask Schwab how the transition will be handled. 3. About a year ago, I was finally able to get Schwab to establish a separate login for me that only displays the investment club account. It no longer is incorporated into my personal account login. This login is still personal to me, and not shared. 4. For the last several years, I have been under the impression that Schwab was not accepting new accounts for investment clubs. If you have a TDA account, this appears to be an opportunity to obtain a Schwab account as a grandfathered customer. I would recommend going through the transition process to see if Schwab meets your needs, before shopping for a different brokerage firm. If you miss this opportunity to get a Schwab account now, you may not be able to later. Jack Ranby, Treasurer, Grants Partners Investment Club Thank you John for your insight. Most appreciated Sent from my iPhone > On Mar 20, 2023, at 4:08 PM, John W Ranby Trustee PGM Cariboo Trust via bivio.com <user*15792700001@bivio.com> wrote: > > My club has been with Schwab for over 20 years. There are > four items that you may want to keep in mind while dealing > with the transition: > > 1. Schwab allows check writing on the brokerage account. > There is no need for a separate bank account. > > 2. For partners who have a personal account at Schwab, the > investment club account was added as an additional account > under the personal account login. The drawback was that if I > logged in at a club meeting, everyone could see the balances > of all my accounts. You may want to ask Schwab how the > transition will be handled. > > 3. About a year ago, I was finally able to get Schwab to > establish a separate login for me that only displays the > investment club account. It no longer is incorporated into > my personal account login. This login is still personal to > me, and not shared. > > 4. For the last several years, I have been under the > impression that Schwab was not accepting new accounts for > investment clubs. If you have a TDA account, this appears to > be an opportunity to obtain a Schwab account as a > grandfathered customer. I would recommend going through the > transition process to see if Schwab meets your needs, before > shopping for a different brokerage firm. If you miss this > opportunity to get a Schwab account now, you may not be able > to later. > > Jack Ranby, Treasurer, Grants Partners Investment Club Thanks for the excellent advice. We are currently with TDA and transitioning to Schwab. Karen > On Mar 20, 2023, at 5:08 PM, John W Ranby Trustee PGM Cariboo Trust via bivio.com <user*15792700001@bivio.com> wrote: > > My club has been with Schwab for over 20 years. There are > four items that you may want to keep in mind while dealing > with the transition: > > 1. Schwab allows check writing on the brokerage account. > There is no need for a separate bank account. > > 2. For partners who have a personal account at Schwab, the > investment club account was added as an additional account > under the personal account login. The drawback was that if I > logged in at a club meeting, everyone could see the balances > of all my accounts. You may want to ask Schwab how the > transition will be handled. > > 3. About a year ago, I was finally able to get Schwab to > establish a separate login for me that only displays the > investment club account. It no longer is incorporated into > my personal account login. This login is still personal to > me, and not shared. > > 4. For the last several years, I have been under the > impression that Schwab was not accepting new accounts for > investment clubs. If you have a TDA account, this appears to > be an opportunity to obtain a Schwab account as a > grandfathered customer. I would recommend going through the > transition process to see if Schwab meets your needs, before > shopping for a different brokerage firm. If you miss this > opportunity to get a Schwab account now, you may not be able > to later. > > Jack Ranby, Treasurer, Grants Partners Investment Club Jack: Thanks for the information. Our club will be switched over to Schwb in May and I also will have personal accounts there. Does Schwab charge trade fees or other fees on the accounts? Thanks Joe Griffith Treasurer Moneymakers Investment Club > On 03/20/2023 5:08 PM John W Ranby Trustee PGM Cariboo Trust via bivio.com <user*15792700001@bivio.com> wrote: > > > My club has been with Schwab for over 20 years. There are > four items that you may want to keep in mind while dealing > with the transition: > > 1. Schwab allows check writing on the brokerage account. > There is no need for a separate bank account. > > 2. For partners who have a personal account at Schwab, the > investment club account was added as an additional account > under the personal account login. The drawback was that if I > logged in at a club meeting, everyone could see the balances > of all my accounts. You may want to ask Schwab how the > transition will be handled. > > 3. About a year ago, I was finally able to get Schwab to > establish a separate login for me that only displays the > investment club account. It no longer is incorporated into > my personal account login. This login is still personal to > me, and not shared. > > 4. For the last several years, I have been under the > impression that Schwab was not accepting new accounts for > investment clubs. If you have a TDA account, this appears to > be an opportunity to obtain a Schwab account as a > grandfathered customer. I would recommend going through the > transition process to see if Schwab meets your needs, before > shopping for a different brokerage firm. If you miss this > opportunity to get a Schwab account now, you may not be able > to later. > > Jack Ranby, Treasurer, Grants Partners Investment Club Joe: The investment club account is not charged for self-placed trades through the website for buy/sell trades of common stocks and moving funds to and from a money market fund. There are fees if you call on the phone to place a trade. Once you get into mutual funds and bonds, it depends on what you buy/sell and how you place the trade whether fees apply. Schwab will probably provide a fee schedule as part of the transition. Or check its website. Jack Thanks. No maintenance fees on accounts? > On 03/22/2023 6:57 PM John W Ranby Trustee PGM Cariboo Trust via bivio.com <user*15792700001@bivio.com> wrote: > > > Joe: > > The investment club account is not charged for self-placed > trades through the website for buy/sell trades of common > stocks and moving funds to and from a money market fund. > There are fees if you call on the phone to place a trade. > > Once you get into mutual funds and bonds, it depends on what > you buy/sell and how you place the trade whether fees apply. > Schwab will probably provide a fee schedule as part of the > transition. Or check its website. > Jack Weâve had our club account with Schwab since 2008 and no maintenance fees have ever been charged. Steve Foster Circle of Friends Sent from my iPhone > On Mar 22, 2023, at 4:06 PM, Joseph Griffith via bivio.com <user*34354100001@bivio.com> wrote: > > Thanks. No maintenance fees on accounts? >> On 03/22/2023 6:57 PM John W Ranby Trustee PGM Cariboo Trust via bivio.com <user*15792700001@bivio.com> wrote: >> >> >> Joe: >> >> The investment club account is not charged for self-placed >> trades through the website for buy/sell trades of common >> stocks and moving funds to and from a money market fund. >> There are fees if you call on the phone to place a trade. >> >> Once you get into mutual funds and bonds, it depends on what >> you buy/sell and how you place the trade whether fees apply. >> Schwab will probably provide a fee schedule as part of the >> transition. Or check its website. >> Jack Thanks Steve > On 03/22/2023 7:39 PM Steve Foster via bivio.com <user*26719700001@bivio.com> wrote: > > > Weâve had our club account with Schwab since 2008 and no maintenance fees have ever been charged. > > Steve Foster > Circle of Friends > > Sent from my iPhone > > > On Mar 22, 2023, at 4:06 PM, Joseph Griffith via bivio.com <user*34354100001@bivio.com> wrote: > > > > Thanks. No maintenance fees on accounts? > >> On 03/22/2023 6:57 PM John W Ranby Trustee PGM Cariboo Trust via bivio.com <user*15792700001@bivio.com> wrote: > >> > >> > >> Joe: > >> > >> The investment club account is not charged for self-placed > >> trades through the website for buy/sell trades of common > >> stocks and moving funds to and from a money market fund. > >> There are fees if you call on the phone to place a trade. > >> > >> Once you get into mutual funds and bonds, it depends on what > >> you buy/sell and how you place the trade whether fees apply. > >> Schwab will probably provide a fee schedule as part of the > >> transition. Or check its website. > >> Jack I have received this from TDAmeritrade and am not sure exactly what they mean. The only checks we ever right on our account are to member who has decided to quit the club or to a member that has paid for an expense that she needs to be re-imbersed for.
On Monday, March 20, 2023 at 04:08:36 PM CDT, John W Ranby Trustee PGM Cariboo Trust via bivio.com <user*15792700001@bivio.com> wrote:
My club has been with Schwab for over 20 years. There are
four items that you may want to keep in mind while dealing with the transition: 1. Schwab allows check writing on the brokerage account. There is no need for a separate bank account. 2. For partners who have a personal account at Schwab, the investment club account was added as an additional account under the personal account login. The drawback was that if I logged in at a club meeting, everyone could see the balances of all my accounts. You may want to ask Schwab how the transition will be handled. 3. About a year ago, I was finally able to get Schwab to establish a separate login for me that only displays the investment club account. It no longer is incorporated into my personal account login. This login is still personal to me, and not shared. 4. For the last several years, I have been under the impression that Schwab was not accepting new accounts for investment clubs. If you have a TDA account, this appears to be an opportunity to obtain a Schwab account as a grandfathered customer. I would recommend going through the transition process to see if Schwab meets your needs, before shopping for a different brokerage firm. If you miss this opportunity to get a Schwab account now, you may not be able to later. Jack Ranby, Treasurer, Grants Partners Investment Club Karen: Our Schwab account was created many years ago as a partnership entity. I don't know whether Schwab has labeled it an "investment club." I do know that we have no restrictions on to whom we can write checks on the brokerage account. I also know Schwab has not notified us of any new restrictions. I do know that for several years, Schwab was not seeking to create accounts for investment clubs. Perhaps TDA had so many investment clubs that Schwab has had to address the category anew and has developed new guidelines. I can only hope our account is grandfathered to keep our current abilities. For clubs involved with the transition, I would suggest contacting the Schwab account executive in the local branch assigned to your account. Our representative has been very helpful over the years being our advocate with the rest of Schwab. That would be my choice of source for answering any questions. Jack Ranby Schwab investment clubs would be missing out on one of the golden
perks, indefinably delaying recognizing capitol gains by
transferring appreciated stocks to withdrawing members. E*Trade
does provide for this service. You might consider transferring the
account there. *Disclosure; I am invested in E*Trade's parent company, Morgan
Stanley. Lee Weygandt, Treasurer Market Miners Investment Club On 3/26/2023 4:53 PM, Karen Wilson via
bivio.com wrote:
Inability to transfer stock to fund withdrawals is a huge drawback in that it forces the partnership to sell stocks (and capture any gains) to pay cash to a departing partner. This can have costly financial consequences to all partners who then receive unwanted and unplanned income in the current tax year from forced stock sales. Of particular concern to me is that those over 63 might be stepping over Medicare's income thresholds and trigger IRMAA surcharge taxation which is costly, especially if that partner and their spouse are both over 63. Inability to control how withdrawals are paid would be a reason for our partnership to disband now while we have the ability to distribute stock upon a liquidation. John Munn Capitol Investors
More than a huge problem, it's a partnership killer for Schwab. Can anyone with a Schwab share whether or not all partners are listed on the account ? Maybe that would circumvent the exclusion. Scott
We do NOT a show all partners on Schwab. But will look into it. We unfortunately have to pay out surviving spouses as we are all senior members. Question if we give stock instead of money; what is their cost basis? How does that effect our ongoing account? Thanks Dan Cohn Atlanta Sent from my iPhone On Mar 29, 2023, at 11:18 AM, SB via bivio.com <user*1595500001@bivio.com> wrote:
The cost basis for transferred stocks will be described in the Withdrawal report. Scott |
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