TDAmeritrade moving our account to Schwab - No third party payments
Looking for information regarding brokerage accounts. We have used TDAmeritrade for a while with good support and services. They are moving our account to Schwab. Schwab does not allow payments to be distributed to anyone other than the investment club, requiring a separate account at a bank or other financial institution in order to handle club distributions to the partners. This will not work for us. I do not want to maintain separate accounts. Any suggestions from other members that have brokerage accounts that allow distributions?
My club just switched over from TDAmeritrade to Schwab. Afterwards a partner did a partial withdrawal and the Schwab representative said that we can open another broker account somewhere else and transfer to that account and then transfer it to the partners. I told her what is the use of using Schwab then, I might as well go to the other broker. She agreed and said that she was a TDAmeritrade employee that got switched over and completely agreed with me. We ended up selling some stock and I wrote the partner a check. Schwab sent me a survey and I blasted them for that policy.
John
On Fri, Sep 15, 2023 at 2:35â¯PM Dale and Kristeen Witt via bivio.com <user*34833800001@bivio.com> wrote:
Looking for information regarding brokerage accounts. We have used TDAmeritrade for a while with good support and services. They are moving our account to Schwab. Schwab does not allow payments to be distributed to anyone other than the investment club, requiring a separate account at a bank or other financial institution in order to handle club distributions to the partners. This will not work for us. I do not want to maintain separate accounts. Any suggestions from other members that have brokerage accounts that allow distributions?
On the better investing list it was mentioned that the workaround was. They said that investment clubs can just make all the members of the club agents on the account. They will have individual log-ins to the account, and each will have an adjustable level of access to the account functions. That way, all the members will be first party participants, and can receive distributions of stock/cash from the club account. You have to use the authorized agent form, when setting up the account.
Kind of backward in my opinion
My club just switched over from TDAmeritrade to Schwab. Afterwards a partner did a partial withdrawal and the Schwab representative said that we can open another broker account somewhere else and transfer to that account and then transfer it to the partners. I told her what is the use of using Schwab then, I might as well go to the other broker. She agreed and said that she was a TDAmeritrade employee that got switched over and completely agreed with me. We ended up selling some stock and I wrote the partner a check. Schwab sent me a survey and I blasted them for that policy.JohnOn Fri, Sep 15, 2023 at 2:35â¯PM Dale and Kristeen Witt via bivio.com <user*34833800001@bivio.com> wrote:Looking for information regarding brokerage accounts. We have used TDAmeritrade for a while with good support and services. They are moving our account to Schwab. Schwab does not allow payments to be distributed to anyone other than the investment club, requiring a separate account at a bank or other financial institution in order to handle club distributions to the partners. This will not work for us. I do not want to maintain separate accounts. Any suggestions from other members that have brokerage accounts that allow distributions?
Not sure why you experienced this. We have had our investment account with Schwab for over 20 years. I just did a partial withdrawal to a club members bank account via wire transfer with no issues and it was completed within an hour. There may be a standard wire fee which in our case was waived.
The club or any member needs to build a relationship with the account representative at Schwab. All investment houses will be the same and the relationship is what makes the difference. Start with a member who has an account with Schwab and let them be the interface. Better yet if there is a local office and the meeting is face to face.
Roman
Sent from my iPhone
On Sep 15, 2023, at 5:36 PM, Dale and Kristeen Witt via bivio.com <user*34833800001@bivio.com> wrote:
Looking for information regarding brokerage accounts. We have used TDAmeritrade for a while with good support and services. They are moving our account to Schwab. Schwab does not allow payments to be distributed to anyone other than the investment club, requiring a separate account at a bank or other financial institution in order to handle club distributions to the partners. This will not work for us. I do not want to maintain separate accounts. Any suggestions from other members that have brokerage accounts that allow distributions?
The club or any member needs to build a relationship with the account representative at Schwab. All investment houses will be the same and the relationship is what makes the difference. Start with a member who has an account with Schwab and let them be the interface. Better yet if there is a local office and the meeting is face to face.
Roman
Sent from my iPhone
On Sep 15, 2023, at 5:36 PM, Dale and Kristeen Witt via bivio.com <user*34833800001@bivio.com> wrote:
Looking for information regarding brokerage accounts. We have used TDAmeritrade for a while with good support and services. They are moving our account to Schwab. Schwab does not allow payments to be distributed to anyone other than the investment club, requiring a separate account at a bank or other financial institution in order to handle club distributions to the partners. This will not work for us. I do not want to maintain separate accounts. Any suggestions from other members that have brokerage accounts that allow distributions?
A distribution is not the same as a check. We were given a checkbook and can pay whoever, but I assume distributions means as the club is dissolving, payments may not go to other than members.
Good luck.
Anne Weeks
On Friday, September 15, 2023, 5:35 PM, Dale and Kristeen Witt via bivio.com <user*34833800001@bivio.com> wrote:
Looking for information regarding brokerage accounts. We have used TDAmeritrade for a while with good support and services. They are moving our account to Schwab. Schwab does not allow payments to be distributed to anyone other than the investment club, requiring a separate account at a bank or other financial institution in order to handle club distributions to the partners. This will not work for us. I do not want to maintain separate accounts. Any suggestions from other members that have brokerage accounts that allow distributions?
Schwab just gave me this info: In order to transfer the funds out of the account, you will need to transfer them to another account registered identical to the investment club held at another financial institution that will allow third party distributions.
which one I don't know
Not sure why you experienced this. We have had our investment account with Schwab for over 20 years. I just did a partial withdrawal to a club members bank account via wire transfer with no issues and it was completed within an hour. There may be a standard wire fee which in our case was waived.
The club or any member needs to build a relationship with the account representative at Schwab. All investment houses will be the same and the relationship is what makes the difference. Start with a member who has an account with Schwab and let them be the interface. Better yet if there is a local office and the meeting is face to face.
Roman
Sent from my iPhone
On Sep 15, 2023, at 5:36 PM, Dale and Kristeen Witt via bivio.com <user*34833800001@bivio.com> wrote:
Looking for information regarding brokerage accounts. We have used TDAmeritrade for a while with good support and services. They are moving our account to Schwab. Schwab does not allow payments to be distributed to anyone other than the investment club, requiring a separate account at a bank or other financial institution in order to handle club distributions to the partners. This will not work for us. I do not want to maintain separate accounts. Any suggestions from other members that have brokerage accounts that allow distributions?
Dan Cohn
404 862 5640
404 862 5640
Not a great solution. The form is detailed and all members need to complete it and if you add or delete a member, you need the repeat the process for all members.
We only have 3 authorised agents and move funds per my earlier email. Note we only withdraw via cash, no stock transfers which our bylaws do not allow.
Roman
On Sep 15, 2023, at 6:02 PM, Norman Gee via bivio.com <user*125100001@bivio.com> wrote:
Sent from my iPhone
On Sep 15, 2023, at 6:02 PM, Norman Gee via bivio.com <user*125100001@bivio.com> wrote:
On the better investing list it was mentioned that the workaround was. They said that investment clubs can just make all the members of the club agents on the account. They will have individual log-ins to the account, and each will have an adjustable level of access to the account functions. That way, all the members will be first party participants, and can receive distributions of stock/cash from the club account. You have to use the authorized agent form, when setting up the account.
Kind of backward in my opinion
My club just switched over from TDAmeritrade to Schwab. Afterwards a partner did a partial withdrawal and the Schwab representative said that we can open another broker account somewhere else and transfer to that account and then transfer it to the partners. I told her what is the use of using Schwab then, I might as well go to the other broker. She agreed and said that she was a TDAmeritrade employee that got switched over and completely agreed with me. We ended up selling some stock and I wrote the partner a check. Schwab sent me a survey and I blasted them for that policy.JohnOn Fri, Sep 15, 2023 at 2:35 PM Dale and Kristeen Witt via bivio.com <user*34833800001@bivio.com> wrote:Looking for information regarding brokerage accounts. We have used TDAmeritrade for a while with good support and services. They are moving our account to Schwab. Schwab does not allow payments to be distributed to anyone other than the investment club, requiring a separate account at a bank or other financial institution in order to handle club distributions to the partners. This will not work for us. I do not want to maintain separate accounts. Any suggestions from other members that have brokerage accounts that allow distributions?
You can't write a check to anyone against the cash portion of your account? You can at Fidelity.
Carole Jansen
Treasurer
Wise Investment Club
On Fri, Sep 15, 2023, 4:35 PM Dale and Kristeen Witt via bivio.com <user*34833800001@bivio.com> wrote:
Looking for information regarding brokerage accounts. We have used TDAmeritrade for a while with good support and services. They are moving our account to Schwab. Schwab does not allow payments to be distributed to anyone other than the investment club, requiring a separate account at a bank or other financial institution in order to handle club distributions to the partners. This will not work for us. I do not want to maintain separate accounts. Any suggestions from other members that have brokerage accounts that allow distributions?
I spoke with Schwab about this exact thing, can't pay a partner w stock, unless they have the like account. So looks like the club absorbs the capital gain. Is Fidelity a better option? Any info appreciated
Sent from my iPad
Mary Fran Novak
On Sep 15, 2023, at 5:20 PM, Carole Jansen via bivio.com <user*8441200001@bivio.com> wrote:
You can't write a check to anyone against the cash portion of your account? You can at Fidelity.Carole JansenTreasurerWise Investment ClubOn Fri, Sep 15, 2023, 4:35 PM Dale and Kristeen Witt via bivio.com <user*34833800001@bivio.com> wrote:Looking for information regarding brokerage accounts. We have used TDAmeritrade for a while with good support and services. They are moving our account to Schwab. Schwab does not allow payments to be distributed to anyone other than the investment club, requiring a separate account at a bank or other financial institution in order to handle club distributions to the partners. This will not work for us. I do not want to maintain separate accounts. Any suggestions from other members that have brokerage accounts that allow distributions?
According to Schwab you can write a check to anyone, it's transferring stock that's the problem, unless they have a like-named account--ex mary jones at my investment club. What good is that
Sent from my iPad
Mary Fran Novak
On Sep 15, 2023, at 5:58 PM, MARY NOVAK <mfnrn@aol.com> wrote:
I spoke with Schwab about this exact thing, can't pay a partner w stock, unless they have the like account. So looks like the club absorbs the capital gain. Is Fidelity a better option? Any info appreciatedSent from my iPadMary Fran NovakOn Sep 15, 2023, at 5:20 PM, Carole Jansen via bivio.com <user*8441200001@bivio.com> wrote:You can't write a check to anyone against the cash portion of your account? You can at Fidelity.Carole JansenTreasurerWise Investment ClubOn Fri, Sep 15, 2023, 4:35 PM Dale and Kristeen Witt via bivio.com <user*34833800001@bivio.com> wrote:Looking for information regarding brokerage accounts. We have used TDAmeritrade for a while with good support and services. They are moving our account to Schwab. Schwab does not allow payments to be distributed to anyone other than the investment club, requiring a separate account at a bank or other financial institution in order to handle club distributions to the partners. This will not work for us. I do not want to maintain separate accounts. Any suggestions from other members that have brokerage accounts that allow distributions?
We haven't made any distributions to a partner in stock, all have preferred cash so far. That may change as we get older and dissolve our partnership, but we will cross that bridge when we come to it. Given how easy Fidelity has been to work with, I am not anticipating a problem. I expect that any partner that wants a distribution in stock would either already have, or would open, a Fidelity brokerage account. If they want to then transfer that stock to another brokerage firm, that is up to them.
Carole Jansen
I spoke with Schwab about this exact thing, can't pay a partner w stock, unless they have the like account. So looks like the club absorbs the capital gain. Is Fidelity a better option? Any info appreciatedSent from my iPadMary Fran NovakOn Sep 15, 2023, at 5:20 PM, Carole Jansen via bivio.com <user*8441200001@bivio.com> wrote:You can't write a check to anyone against the cash portion of your account? You can at Fidelity.Carole JansenTreasurerWise Investment ClubOn Fri, Sep 15, 2023, 4:35 PM Dale and Kristeen Witt via bivio.com <user*34833800001@bivio.com> wrote:Looking for information regarding brokerage accounts. We have used TDAmeritrade for a while with good support and services. They are moving our account to Schwab. Schwab does not allow payments to be distributed to anyone other than the investment club, requiring a separate account at a bank or other financial institution in order to handle club distributions to the partners. This will not work for us. I do not want to maintain separate accounts. Any suggestions from other members that have brokerage accounts that allow distributions?
What is "the like account" mean?
On Sep 15, 2023, at 7:01 PM, MARY NOVAK via bivio.com <user*7094300001@bivio.com> wrote:
According to Schwab you can write a check to anyone, it's transferring stock that's the problem, unless they have a like-named account--ex mary jones at my investment club. What good is that
Sent from my iPad
Mary Fran Novak
On Sep 15, 2023, at 5:58 PM, MARY NOVAK <mfnrn@aol.com> wrote:
I spoke with Schwab about this exact thing, can't pay a partner w stock, unless they have the like account. So looks like the club absorbs the capital gain. Is Fidelity a better option? Any info appreciatedSent from my iPadMary Fran NovakOn Sep 15, 2023, at 5:20 PM, Carole Jansen via bivio.com <user*8441200001@bivio.com> wrote:You can't write a check to anyone against the cash portion of your account? You can at Fidelity.Carole JansenTreasurerWise Investment ClubOn Fri, Sep 15, 2023, 4:35 PM Dale and Kristeen Witt via bivio.com <user*34833800001@bivio.com> wrote:Looking for information regarding brokerage accounts. We have used TDAmeritrade for a while with good support and services. They are moving our account to Schwab. Schwab does not allow payments to be distributed to anyone other than the investment club, requiring a separate account at a bank or other financial institution in order to handle club distributions to the partners. This will not work for us. I do not want to maintain separate accounts. Any suggestions from other members that have brokerage accounts that allow distributions?
Judy - the account name has to be the exact name. So my club account is under ABODI Investment Club so we can only transfer stock to another account named ABODI Investment Club. Somebody's personal account will not be named that so we can't make a transfer of stock.
What is "the like account" mean?According to Schwab you can write a check to anyone, it's transferring stock that's the problem, unless they have a like-named account--ex mary jones at my investment club. What good is thatSent from my iPadMary Fran NovakOn Sep 15, 2023, at 5:58 PM, MARY NOVAK <mfnrn@aol.com> wrote:I spoke with Schwab about this exact thing, can't pay a partner w stock, unless they have the like account. So looks like the club absorbs the capital gain. Is Fidelity a better option? Any info appreciatedSent from my iPadMary Fran NovakOn Sep 15, 2023, at 5:20 PM, Carole Jansen via bivio.com <user*8441200001@bivio.com> wrote:You can't write a check to anyone against the cash portion of your account? You can at Fidelity.Carole JansenTreasurerWise Investment ClubOn Fri, Sep 15, 2023, 4:35 PM Dale and Kristeen Witt via bivio.com <user*34833800001@bivio.com> wrote:Looking for information regarding brokerage accounts. We have used TDAmeritrade for a while with good support and services. They are moving our account to Schwab. Schwab does not allow payments to be distributed to anyone other than the investment club, requiring a separate account at a bank or other financial institution in order to handle club distributions to the partners. This will not work for us. I do not want to maintain separate accounts. Any suggestions from other members that have brokerage accounts that allow distributions?
Okay. So how can two accounts have the same name?
On Sep 15, 2023, at 8:24 PM, John Rice via bivio.com <user*24380400001@bivio.com> wrote:

Judy - the account name has to be the exact name. So my club account is under ABODI Investment Club so we can only transfer stock to another account named ABODI Investment Club. Somebody's personal account will not be named that so we can't make a transfer of stock.
What is "the like account" mean?According to Schwab you can write a check to anyone, it's transferring stock that's the problem, unless they have a like-named account--ex mary jones at my investment club. What good is thatSent from my iPadMary Fran NovakOn Sep 15, 2023, at 5:58 PM, MARY NOVAK <mfnrn@aol.com> wrote:I spoke with Schwab about this exact thing, can't pay a partner w stock, unless they have the like account. So looks like the club absorbs the capital gain. Is Fidelity a better option? Any info appreciatedSent from my iPadMary Fran NovakOn Sep 15, 2023, at 5:20 PM, Carole Jansen via bivio.com <user*8441200001@bivio.com> wrote:You can't write a check to anyone against the cash portion of your account? You can at Fidelity.Carole JansenTreasurerWise Investment ClubOn Fri, Sep 15, 2023, 4:35 PM Dale and Kristeen Witt via bivio.com <user*34833800001@bivio.com> wrote:Looking for information regarding brokerage accounts. We have used TDAmeritrade for a while with good support and services. They are moving our account to Schwab. Schwab does not allow payments to be distributed to anyone other than the investment club, requiring a separate account at a bank or other financial institution in order to handle club distributions to the partners. This will not work for us. I do not want to maintain separate accounts. Any suggestions from other members that have brokerage accounts that allow distributions?
The club can open an account with another broker with the same name but a partner in the club can not. That is why we can't transfer stock to a partner.
Okay. So how can two accounts have the same name?Judy - the account name has to be the exact name. So my club account is under ABODI Investment Club so we can only transfer stock to another account named ABODI Investment Club. Somebody's personal account will not be named that so we can't make a transfer of stock.What is "the like account" mean?According to Schwab you can write a check to anyone, it's transferring stock that's the problem, unless they have a like-named account--ex mary jones at my investment club. What good is thatSent from my iPadMary Fran NovakOn Sep 15, 2023, at 5:58 PM, MARY NOVAK <mfnrn@aol.com> wrote:I spoke with Schwab about this exact thing, can't pay a partner w stock, unless they have the like account. So looks like the club absorbs the capital gain. Is Fidelity a better option? Any info appreciatedSent from my iPadMary Fran NovakOn Sep 15, 2023, at 5:20 PM, Carole Jansen via bivio.com <user*8441200001@bivio.com> wrote:You can't write a check to anyone against the cash portion of your account? You can at Fidelity.Carole JansenTreasurerWise Investment ClubOn Fri, Sep 15, 2023, 4:35 PM Dale and Kristeen Witt via bivio.com <user*34833800001@bivio.com> wrote:Looking for information regarding brokerage accounts. We have used TDAmeritrade for a while with good support and services. They are moving our account to Schwab. Schwab does not allow payments to be distributed to anyone other than the investment club, requiring a separate account at a bank or other financial institution in order to handle club distributions to the partners. This will not work for us. I do not want to maintain separate accounts. Any suggestions from other members that have brokerage accounts that allow distributions?