Tell me about Charles Schwab??

4,433 Views | 15 Replies | Last: 2 yr ago by Stat Monitor Repairman
BTHOB-98
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11:17a, 4/27/23
I have TD Ameritrade account that is transferring over to Schwab.

I am a little worried about this. https://finance.yahoo.com/news/banking-sector-decline-impacted-charles-120001785.html

Should I be looking for another platform for trading?
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Good Poster
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12:03p, 4/27/23
AG
I wouldn't be concerned about this. Schwab bank saw a high outflow of assets to Schwab brokerage in the interest of seeking higher returns in money market funds, etc. That is going to affect the earnings of Schwab bank in the short run and the banking situation didn't help leading to a lower stock price.

Overall, Schwab bank is not highly leveraged like you saw in SVB and some of the others institutions that aree really hurting right now.
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ToddyHill
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In reply to BTHOB-98 • 7:15a, 4/28/23
AG
I've been with Schwab for many years. I have a good relationship with the Branch Manager in Knoxville, and visit with him 4 or 5 times per year. I was on a call a couple of weeks ago with him, and two other investment professionals from their Indianapolis office...and this was a topic of discussion. Long story short, I don't think you have anything to worry about. Yes, deposits from the banking side when down, but in March deposits into the brokerage side soared (people looking for a safe haven). Without their input (based on my own due diligence), I also bought some Schwab stock, as I think it's undervalued (interestingly, Schwab does not allow any of their employees to recommend their stock).. Good luck.
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txaggieacct85
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In reply to ToddyHill • 3:44p, 4/28/23
AG
ToddyHill said:
I've been with Schwab for many years. I have a good relationship with the Branch Manager in Knoxville, and visit with him 4 or 5 times per year. I was on a call a couple of weeks ago with him, and two other investment professionals from their Indianapolis office...and this was a topic of discussion. Long story short, I don't think you have anything to worry about. Yes, deposits from the banking side when down, but in March deposits into the brokerage side soared (people looking for a safe haven). Without their input (based on my own due diligence), I also bought some Schwab stock, as I think it's undervalued (interestingly, Schwab does not allow any of their employees to recommend their stock).. Good luck.
famous last words. I understand SIPC only covers up to $500K
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In reply to txaggieacct85 • 7:54p, 4/28/23
AG
txaggieacct85 said:
famous last words. I understand SIPC only covers up to $500K
500k per account. and SIPC is hardly the first line of defense for something like this. again, not worried about schwab.
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exp
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5:54p, 4/29/23
AG
Charles Schwab bank and the investment firm are totally separate. Bank could outright fail and it wouldn't effect your investment account.
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infinity ag
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8:31p, 4/29/23
I started with Datek in 1999. That became Ameritrade. Then that became TD-Ameritrade. Now it will become Charles Schwab.
OK. I hope they don't take any features away or add fees.
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infinity ag
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In reply to exp • 8:32p, 4/29/23
exp said:
Charles Schwab bank and the investment firm are totally separate. Bank could outright fail and it wouldn't effect your investment account.

I have much more than $250k (the FDIC limit) in my brokerage account at TDA. What are my risks of failure? Money is all in ETFs and some stock.
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In reply to infinity ag • 8:44a, 4/30/23
AG
infinity ag said:
exp said:
Charles Schwab bank and the investment firm are totally separate. Bank could outright fail and it wouldn't effect your investment account.
I have much more than $250k (the FDIC limit) in my brokerage account at TDA. What are my risks of failure? Money is all in ETFs and some stock.
Do some research on the difference between FDIC and SIPC insurance. But again, neither of those government organizations are the first line of defense against an investment institution going down. I wouldn't be concerned (with the little info you've shared).
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LMCane
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In reply to BTHOB-98 • 7:21a, 5/1/23
one of my 401Ks is with Schwab

their trading platform is confusing as @#$@#$

much less user friendly than my personal Fidelity brokerage website
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Stat Monitor Repairman
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12:39a, 5/27/23
Quote:
As we head into a long weekend with no final resolution as of yet on the U.S. debt ceiling, we want you to know we're here to help you navigate the uncertainty. In times like this, we recommend focusing on your overall financial plan and long-term goals, and of course we'll provide information and support as the situation evolves.
Translation:

Get ready to take some losses.
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Cyp0111
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8:30p, 5/27/23
It's a custodian. So unless there is massive fraud where they take the shares you own in a company or ETF, you should be fine. I believe the only consideration is cash allocation in a brokerage account if memory serves me correctly
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Herknav
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9:05p, 5/27/23
AG
//Habe brokerage accounts at Ameriprise Financial, Edward Jones, First Command, Fidelity and Charles Schwab. My personal preference (and the with the most worth) is C Schwab. It's my 401 and account I use to get the trade prices daily with no commish.//just my thoughts//
//Herknav sends//
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Stat Monitor Repairman
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11:53a, 5/28/23
Earlier this year:

'smart thing to do is hold some amount of cash.'

Now:

'Don't hold cash! You better positioned with broker as a custodian.'

I think we got a real problem once the aggregate effect of people moving cash is felt. A lot of these banks and money market accounts are paying next to nothing.

Regular banks are still paying 0.05% on cash sitting in a checking account. What happens when a mass of people finally wise up and pull money sitting idle in checking and brokerage accounts?

I don't even think we've got to that point yet.
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Frisco86
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In reply to Stat Monitor Repairman • 1:07p, 5/28/23
AG
I only keep minimum in my operational account at JPM. I will transfer $5k periodically from online high interest accounts. But I have been doing this for multiple years, even when rates were lower. Now is a bonanza with interest increase more than covering any cost of living change due to inflation.

Is quite simple and recommend it to anyone that maintains cash balance reserve. At TDA I have parked cash balances at SWVXX (4.9%) and SNOXX (4.8%) as both invest in short term treasury and thus rates have been rising. These move with the short term rates. Will eventually move back into equities. Am retired so preservation of capital is priority 1.
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Stat Monitor Repairman
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In reply to Frisco86 • 4:52p, 5/28/23
Thats a good call on that. Might be the solution I'm looking for.
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