Schwab Information Thread with FAQ, Links, Tips and Q&A

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loghound
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by loghound »

galawdawg wrote: Tue Jul 12, 2022 5:04 pm
G-Force wrote: Tue Jul 12, 2022 4:45 pm Talked to a local financial consultant at a branch about getting the Vanguard fee waiver on my Schwab accounts. I told him I would be transferring in a $260k IRA and heard I was eligible if my assets were over $250k. The consultant checked on the status of the fee waiver, called me back the next day, and told me you need to have 1 million in assets at Schwab to get the fee waiver. He asked his team if there were any exceptions and they said "no". Has anyone heard this before? I'm wondering if this is a new requirement or a mis-informed consultant.
Two things could be going on here. There have been a few reports that some offices have a higher threshold for granting a fee waiver for the purchase of Vanguard mutual funds. Schwab may have also changed that threshold when they increased the purchase fee for Vanguard mutual funds to match what Fidelity had been charging for a number of years.

Some in your situation who switch to Schwab choose to convert their mutual funds to the equivalent ETF at Vanguard before transferring in-kind. Others may transfer their Vanguard mutual funds but when making new purchases choose either an ETF or a mutual fund from a different fund family.

I personally divested of my Vanguard holdings in favor of Schwab offerings...for the funds I invest in I found that the Schwab funds offered expense ratios as low or lower than Vanguard's equivalent funds and performance that was on par over the long-term.

Hope that is helpful!
I think a year or two Schwab changed the 'no fee' feature of vanguard from a pretty low number (like $50k? or $150k or something -- maybe $250k?) to $1M -- I'm pretty sure that this is hard and fast and they don't grant exceptions to this.

Keep in mind that I'm pretty sure Schwab (really most brokerages) get a kick-back when their customers buy a 'free' mutual fund.
I would have written a shorter letter, but I did not have the time. | - Blaise Pascal
G-Force
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by G-Force »

galawdawg wrote: Tue Jul 12, 2022 5:04 pm I personally divested of my Vanguard holdings in favor of Schwab offerings...for the funds I invest in I found that the Schwab funds offered expense ratios as low or lower than Vanguard's equivalent funds and performance that was on par over the long-term.
Hope that is helpful!
Thanks for your thoughts and insights. Have you found a good intermediate tax exempt bond fund and money market fund at Schwab that compares with Vanguard's offerings? Those are really the only two Vanguard funds that I own in my taxable account that I would hate to loose. While I realize I could continue to hold those funds at Schwab, I couldn't buy more shares without the fee.
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by tj »

G-Force wrote: Sun Jul 17, 2022 10:21 am
galawdawg wrote: Tue Jul 12, 2022 5:04 pm I personally divested of my Vanguard holdings in favor of Schwab offerings...for the funds I invest in I found that the Schwab funds offered expense ratios as low or lower than Vanguard's equivalent funds and performance that was on par over the long-term.
Hope that is helpful!
Thanks for your thoughts and insights. Have you found a good intermediate tax exempt bond fund and money market fund at Schwab that compares with Vanguard's offerings? Those are really the only two Vanguard funds that I own in my taxable account that I would hate to loose. While I realize I could continue to hold those funds at Schwab, I couldn't buy more shares without the fee.
You were unsuccessful at requesting fee waiver?
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galawdawg
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by galawdawg »

G-Force wrote: Sun Jul 17, 2022 10:21 am
galawdawg wrote: Tue Jul 12, 2022 5:04 pm I personally divested of my Vanguard holdings in favor of Schwab offerings...for the funds I invest in I found that the Schwab funds offered expense ratios as low or lower than Vanguard's equivalent funds and performance that was on par over the long-term.
Hope that is helpful!
Thanks for your thoughts and insights. Have you found a good intermediate tax exempt bond fund and money market fund at Schwab that compares with Vanguard's offerings? Those are really the only two Vanguard funds that I own in my taxable account that I would hate to loose. While I realize I could continue to hold those funds at Schwab, I couldn't buy more shares without the fee.
Our tax liability is such that we don't use tax-free funds. For a money market fund, SWVXX currently yields 1.41%, just 0.08% less than VMFXX which is negligible IMO (a difference of $80.00/yr on a $100,000 position).

Here are Schwab's money market funds: https://www.schwab.com/money-market-funds
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jjunk
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by jjunk »

Just a point of reference on the fee waiver. I did get the waiver on my account when I moved over, it was over 1M that was transferred. They also gave me lower options trading fees when I asked for it (from .65/contract to .40/contract). The only issue we had was they didnt apply the VG waiver correctly to our new RIRAs which led to a week and a half of trying to clean things up. Since we hold VG Balanced in our accounts, it was important to have the waiver. All is working properly now though. I'm semi-happy with Schwab in the 6mos we've been with them. While they've made some pretty big mistakes, they also eventually cleaned them all up. Still undecided if we'll stay or leave after the holding period for the bonus we received (which is 1yr).
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by G-Force »

tj wrote: Sun Jul 17, 2022 10:46 am You were unsuccessful at requesting fee waiver?
Correct. I was told the requirement is 1 million and not $250k as previously reported. As I don't have 1 million they did not give me the waiver.
tj
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by tj »

Can someone PM me a financial consultant that is on board with what we do?

When I contacted a random one, they would not respond to my questions about fee waivers and transfer bonuses matches.
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by mggray17 »

G-Force wrote: Mon Jul 18, 2022 7:07 am
tj wrote: Sun Jul 17, 2022 10:46 am You were unsuccessful at requesting fee waiver?
Correct. I was told the requirement is 1 million and not $250k as previously reported. As I don't have 1 million they did not give me the waiver.
I moved about $700K to Schwab in the beginning of the year and when I asked about the Vanguard fund waiver, I was also told the threshold is 1Mil.
I wasn't that concerned about holding Vanguard mutual funds, so I didn't press further.
I did receive an $1800 bonus for rolling a $500K+ IRA to them. Then weren't willing to offer a bonus for the other $200K I moved.
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by TomatoTomahto »

There are 12 pages of posts to this (otherwise) useful thread, so apologies for asking what might be already answered questions.

I am going to move stuff over from V to S. The bonus will be a very generous $7k combined.

My wife's account is MF only. I assume that I need to "upgrade" the account to brokerage so that she can convert MF to ETFs.

I don't think there's a PRIMECAP ETF. Should I leave it at V or transfer it in kind? More generally, it appears that transferring ETFs is more beneficial than transferring MFs; is this true? My general preference is for MF everything else equal, but I am not wedded to the idea (I mostly prefer trading at NAV price regardless of trade timing).

We will have significant assets in excess of the amount needed to get the bonus. Should I leave those amounts at V for later transfer to S (ie, additional bonus later) or perhaps ETrade?
I get the FI part but not the RE part of FIRE.
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by tj »

TomatoTomahto wrote: Tue Aug 09, 2022 8:16 am There are 12 pages of posts to this (otherwise) useful thread, so apologies for asking what might be already answered questions.

I am going to move stuff over from V to S. The bonus will be a very generous $7k combined.

My wife's account is MF only. I assume that I need to "upgrade" the account to brokerage so that she can convert MF to ETFs.

I don't think there's a PRIMECAP ETF. Should I leave it at V or transfer it in kind? More generally, it appears that transferring ETFs is more beneficial than transferring MFs; is this true? My general preference is for MF everything else equal, but I am not wedded to the idea (I mostly prefer trading at NAV price regardless of trade timing).

We will have significant assets in excess of the amount needed to get the bonus. Should I leave those amounts at V for later transfer to S (ie, additional bonus later) or perhaps ETrade?
If you don't mind maintaining multiple accounts, there's no reason to transfer everything.
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jeffyscott
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by jeffyscott »

TomatoTomahto wrote: Tue Aug 09, 2022 8:16 amMy wife's account is MF only. I assume that I need to "upgrade" the account to brokerage so that she can convert MF to ETFs.
If you want ETFs and it is a taxable account, then, yes.

If you don't have a mutual fund fee waiver at Schwab and plan to buy more Vanguard mutual fund shares, then you would have to pay transaction fees on purchases (there's no fee to sell).

If you would prefer to keep the mutual funds, you can just transfer as is. This is what we plan to do, since we prefer mutual funds and have a fee waiver (though, not likely to be buying much anyway, being retired).
More generally, it appears that transferring ETFs is more beneficial than transferring MFs; is this true?
Not for us, given that we have a fee waiver.
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by iamblessed »

galawdawg wrote: Sun Jul 17, 2022 12:19 pm
G-Force wrote: Sun Jul 17, 2022 10:21 am
galawdawg wrote: Tue Jul 12, 2022 5:04 pm I personally divested of my Vanguard holdings in favor of Schwab offerings...for the funds I invest in I found that the Schwab funds offered expense ratios as low or lower than Vanguard's equivalent funds and performance that was on par over the long-term.
Hope that is helpful!
Thanks for your thoughts and insights. Have you found a good intermediate tax exempt bond fund and money market fund at Schwab that compares with Vanguard's offerings? Those are really the only two Vanguard funds that I own in my taxable account that I would hate to loose. While I realize I could continue to hold those funds at Schwab, I couldn't buy more shares without the fee.
Our tax liability is such that we don't use tax-free funds. For a money market fund, SWVXX currently yields 1.41%, just 0.08% less than VMFXX which is negligible IMO (a difference of $80.00/yr on a $100,000 position).

Here are Schwab's money market funds: https://www.schwab.com/money-market-funds
Does Schwab only pull money from the core to pay bills or all money market funds once the core runs out of money? Like Fidelity
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galawdawg
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by galawdawg »

Sorry but I don't have the answer to that question. I prefer to use my Schwab Bank checking account rather than using my brokerage account for bill payments and other outside transactions. Schwab has excellent 24/7 customer service, I'm sure they can explain how funds are used for bill payment from your brokerage account if your cash balance becomes too low.
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VictorStarr
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by VictorStarr »

iamblessed wrote: Tue Aug 09, 2022 1:14 pm
galawdawg wrote: Sun Jul 17, 2022 12:19 pm
G-Force wrote: Sun Jul 17, 2022 10:21 am
galawdawg wrote: Tue Jul 12, 2022 5:04 pm I personally divested of my Vanguard holdings in favor of Schwab offerings...for the funds I invest in I found that the Schwab funds offered expense ratios as low or lower than Vanguard's equivalent funds and performance that was on par over the long-term.
Hope that is helpful!
Thanks for your thoughts and insights. Have you found a good intermediate tax exempt bond fund and money market fund at Schwab that compares with Vanguard's offerings? Those are really the only two Vanguard funds that I own in my taxable account that I would hate to loose. While I realize I could continue to hold those funds at Schwab, I couldn't buy more shares without the fee.
Our tax liability is such that we don't use tax-free funds. For a money market fund, SWVXX currently yields 1.41%, just 0.08% less than VMFXX which is negligible IMO (a difference of $80.00/yr on a $100,000 position).

Here are Schwab's money market funds: https://www.schwab.com/money-market-funds
Does Schwab only pull money from the core to pay bills or all money market funds once the core runs out of money? Like Fidelity
Schwab does not auto liquidate money market finds. You have manually sell MM funds.
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by iamblessed »

VictorStarr wrote: Tue Aug 09, 2022 4:14 pm
iamblessed wrote: Tue Aug 09, 2022 1:14 pm
galawdawg wrote: Sun Jul 17, 2022 12:19 pm
G-Force wrote: Sun Jul 17, 2022 10:21 am
galawdawg wrote: Tue Jul 12, 2022 5:04 pm I personally divested of my Vanguard holdings in favor of Schwab offerings...for the funds I invest in I found that the Schwab funds offered expense ratios as low or lower than Vanguard's equivalent funds and performance that was on par over the long-term.
Hope that is helpful!
Thanks for your thoughts and insights. Have you found a good intermediate tax exempt bond fund and money market fund at Schwab that compares with Vanguard's offerings? Those are really the only two Vanguard funds that I own in my taxable account that I would hate to loose. While I realize I could continue to hold those funds at Schwab, I couldn't buy more shares without the fee.
Our tax liability is such that we don't use tax-free funds. For a money market fund, SWVXX currently yields 1.41%, just 0.08% less than VMFXX which is negligible IMO (a difference of $80.00/yr on a $100,000 position).

Here are Schwab's money market funds: https://www.schwab.com/money-market-funds
Does Schwab only pull money from the core to pay bills or all money market funds once the core runs out of money? Like Fidelity
Schwab does not auto liquidate money market finds. You have manually sell MM funds.
To make sure the core has enough in it to cover bills.
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by RetiredAL »

iamblessed wrote: Tue Aug 09, 2022 1:14 pm
galawdawg wrote: Sun Jul 17, 2022 12:19 pm
G-Force wrote: Sun Jul 17, 2022 10:21 am
galawdawg wrote: Tue Jul 12, 2022 5:04 pm I personally divested of my Vanguard holdings in favor of Schwab offerings...for the funds I invest in I found that the Schwab funds offered expense ratios as low or lower than Vanguard's equivalent funds and performance that was on par over the long-term.
Hope that is helpful!
Thanks for your thoughts and insights. Have you found a good intermediate tax exempt bond fund and money market fund at Schwab that compares with Vanguard's offerings? Those are really the only two Vanguard funds that I own in my taxable account that I would hate to loose. While I realize I could continue to hold those funds at Schwab, I couldn't buy more shares without the fee.
Our tax liability is such that we don't use tax-free funds. For a money market fund, SWVXX currently yields 1.41%, just 0.08% less than VMFXX which is negligible IMO (a difference of $80.00/yr on a $100,000 position).

Here are Schwab's money market funds: https://www.schwab.com/money-market-funds
Does Schwab only pull money from the core to pay bills or all money market funds once the core runs out of money? Like Fidelity
Not quite true about Fidelity --

If you use Fidelity's automated periodic Retirement Distribution system, Fidelity lets you select which "Fidelity Fund(s)" within the designated retirement account to process the withdraw from, and if that/those funds go to zero, then Fidelity will withdraw from any "Fidelity Fund". Note the term "Fidelity Fund". Fidelity will not sell a non-Fidelity fund, nor a stock, nor an ETF, nor a bond, to satisfy the withdrawal. This automated process is for retirement accounts only.

For a manual money move from a retirement account, or a money move from non-retirement accounts, you must have the cash available in the core account to perform the money move. My experience has been that upon the completion of a sell order, the money move can be done without waiting for the settlement date. Remember that fund sell orders complete sometime during the night, thus those fund sells are not generally available to move until the next morning.

Schwab does not have this kind of retirement distribution sell-n-withdraw system. At Schwab you must have the cash in the core account to move money. I do not know know how quickly an ETF sale shows as available cash to move. I know from handling my Dad's IRA RMD, I can move the $ from a fund sale the next day.
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by drzzzzz »

iamblessed wrote: Tue Aug 09, 2022 1:14 pm
galawdawg wrote: Sun Jul 17, 2022 12:19 pm
G-Force wrote: Sun Jul 17, 2022 10:21 am
galawdawg wrote: Tue Jul 12, 2022 5:04 pm I personally divested of my Vanguard holdings in favor of Schwab offerings...for the funds I invest in I found that the Schwab funds offered expense ratios as low or lower than Vanguard's equivalent funds and performance that was on par over the long-term.
Hope that is helpful!
Thanks for your thoughts and insights. Have you found a good intermediate tax exempt bond fund and money market fund at Schwab that compares with Vanguard's offerings? Those are really the only two Vanguard funds that I own in my taxable account that I would hate to loose. While I realize I could continue to hold those funds at Schwab, I couldn't buy more shares without the fee.
Our tax liability is such that we don't use tax-free funds. For a money market fund, SWVXX currently yields 1.41%, just 0.08% less than VMFXX which is negligible IMO (a difference of $80.00/yr on a $100,000 position).

Here are Schwab's money market funds: https://www.schwab.com/money-market-funds
Does Schwab only pull money from the core to pay bills or all money market funds once the core runs out of money? Like Fidelity
Only core/settlement account per my recent conversation with them
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by rob »

I'm looking for experiences (I know in theory it works out) on the cost basis accounting carry over to Schwab via a ACAT/Transfer in kind.....
- What issues did you have and what solutions?
- Anything to do ahead of time (obviously will print out that info)?
- How about a mixed covered and non-covered tax lots?

- Any experiences with eTrade or Fido (I realize this is a Schwab thread)?
| Rob | Its a dangerous business going out your front door. - J.R.R.Tolkien
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by jeffyscott »

I am wondering about the time it will take to transfer from a mutual fund only Vanguard account, the old legacy platform, to Schwab. Has anyone done this and was it an ACAT transfer, taking just a few days or a manual transfer taking much longer?

We have one of the old mutual fund only accounts at Vanguard and want to move it directly to Schwab, without first converting to a brokerage account, before Vanguard's new fees hit on Sept. 30. I had another, non-Vanguard, mutual fund only account that I was told could take up to 6 weeks and possibly even longer to transfer, so I am hoping that would not be the case for Vanguard.
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by tj »

jeffyscott wrote: Thu Aug 11, 2022 6:55 am I am wondering about the time it will take to transfer from a mutual fund only Vanguard account, the old legacy platform, to Schwab. Has anyone done this and was it an ACAT transfer, taking just a few days or a manual transfer taking much longer?

We have one of the old mutual fund only accounts at Vanguard and want to move it directly to Schwab, without first converting to a brokerage account, before Vanguard's new fees hit on Sept. 30. I had another, non-Vanguard, mutual fund only account that I was told could take up to 6 weeks and possibly even longer to transfer, so I am hoping that would not be the case for Vanguard.

What are the new vanguard fees?
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by chemocean »

Thanks galawdawg.
I met in person with a Schwab representative.
One fact I did learn is that the transfer bonus amount is based on the highest balance of ONE single account type (Roth, traditional, after tax [individual or Joint]) for each SSN, not on the entire amount being transferred. This greatly reduces the value of the two bonuses. My decision to move will be based on the transfer on death processes of both first and surviving spouses at Schwab. I have some familiarity with that process at Vanguard.

Since we are still converting Traditional to Roth, we need to transfer both Traditional to Roth for each SSN so we don't have to convert across custodians, even though we are getting a bonus for only one of the accountsw.

Since I got pushed off the mutual fund platform at Vanguard to the Brokerage platform, I might as well convert from mutual funds to ETFs for easy transfer to another custodian. Found out that three of the four funds in my retirement accounts at Vanguard have ETFs as a share class of the mutual fund at Vanguard. This means these conversion will be done at NAV at the end of the day with no premium/discount or spread issues. I converted one these funds today and will see how the transaction goes.

We have a joint after-tax Mutual Fund in our new brokerage account with sizeable unrealized capital gains. Since transferring this account will not affect the transfer bonus, I am inclined just to leave this account at Vanguard.

We worked with a fee-only CFP several years ago, who helped us to consolidate (lump) our accounts at Vanguard. But my personal inclination as a splitter is now showing up in these transfer decisions.
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by jeffyscott »

tj wrote: Thu Aug 11, 2022 9:56 am
jeffyscott wrote: Thu Aug 11, 2022 6:55 am I am wondering about the time it will take to transfer from a mutual fund only Vanguard account, the old legacy platform, to Schwab. Has anyone done this and was it an ACAT transfer, taking just a few days or a manual transfer taking much longer?

We have one of the old mutual fund only accounts at Vanguard and want to move it directly to Schwab, without first converting to a brokerage account, before Vanguard's new fees hit on Sept. 30. I had another, non-Vanguard, mutual fund only account that I was told could take up to 6 weeks and possibly even longer to transfer, so I am hoping that would not be the case for Vanguard.

What are the new vanguard fees?
Mutual fund-only accounts:
$20 for each Vanguard mutual fund. We'll waive the fee if you have at least $1 million in qualifying Vanguard assets.

https://investor.vanguard.com/client-be ... count-fees

Long discussion here: viewtopic.php?t=383446
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by BogleTaxPro »

tj wrote: Thu Aug 11, 2022 9:56 am What are the new vanguard fees?
viewtopic.php?t=383446
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by jeffyscott »

chemocean wrote: Thu Aug 11, 2022 10:02 am Since we are still converting Traditional to Roth, we need to transfer both Traditional to Roth for each SSN so we don't have to convert across custodians, even though we are getting a bonus for only one of the accounts.
You could transfer just one and have multiple accounts for the other. For example, transfer only the TIRA and then create a new Roth account at Schwab for the conversions. Or just get all the conversions that you are doing this year done and then do next year's after you move the other account for a new bonus.

I believe the current policy is that you can get another bonus after 12 months, so you could then transfer the old Roth into the new one for a new bonus (assuming Schwab is still amenable to matching any other bonuses that may be around at that time).
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by tibbitts »

chemocean wrote: Thu Aug 11, 2022 10:02 am One fact I did learn is that the transfer bonus amount is based on the highest balance of ONE single account type (Roth, traditional, after tax [individual or Joint]) for each SSN, not on the entire amount being transferred.
Interesting; thanks for posting that. I wonder if brokerage transfer bonuses at other providers also work that way?
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by mkc »

chemocean wrote: Thu Aug 11, 2022 10:02 am Thanks galawdawg.
I met in person with a Schwab representative.
One fact I did learn is that the transfer bonus amount is based on the highest balance of ONE single account type (Roth, traditional, after tax [individual or Joint]) for each SSN, not on the entire amount being transferred. This greatly reduces the value of the two bonuses.
Interesting. Then things have changed since I asked about that last year, or it may be local-office dependent:
galawdawg wrote: Thu Aug 05, 2021 5:43 pm
mkc wrote: Thu Aug 05, 2021 5:25 pm Another topic brought up a good question on the transfer bonuses...

Let's say there's a couple, each have an IRA and they have joint MF/brokerage accounts at 2 other entities...

How does Schwab determine the number of allowed transfer bonus(es)?
When we moved to Schwab, when they matched the competitor bonus, Schwab matched each tier to each account. For example, Ally Invest is offering:

$3,000 for $2MM+
$2,000 for $1MM - $1.99MM
$1,200 for $500k - $999.9k
$600 for $250k - $499.9k
$300 for $100k - $249.9k
$250 for $25k - $99.9k
$100 for $10k - $24.9k

So if Schwab matches that for the couple and each account earns the bonus based upon the amount in that account, the couple would receive (for example):

His $485k IRA: $600
Her $510k IRA: $1,200
Their $1.2 million taxable brokerage: $2,000 (Schwab bases the bonus on the amount transferred in, not how many entities the funds come from)

Hope that helps!
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by sycamore »

tibbitts wrote: Thu Aug 11, 2022 12:06 pm
chemocean wrote: Thu Aug 11, 2022 10:02 am One fact I did learn is that the transfer bonus amount is based on the highest balance of ONE single account type (Roth, traditional, after tax [individual or Joint]) for each SSN, not on the entire amount being transferred.
Interesting; thanks for posting that. I wonder if brokerage transfer bonuses at other providers also work that way?
At E-Trade my total bonus was based on the total assets across 2 accounts.

The bonus was pro-rated to the respective accounts.

You need to check the terms and conditions of the bonus offer as those can vary not only from broker to broker but offer to offer from the same broker.
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by RubyTuesday »

chemocean wrote: Thu Aug 11, 2022 10:02 am Thanks galawdawg.
One fact I did learn is that the transfer bonus amount is based on the highest balance of ONE single account type (Roth, traditional, after tax [individual or Joint]) for each SSN, not on the entire amount being transferred.
This is not my experience. I think transfer bonus terms and conditions are very much local office dependent.

Schwab matched eTrade bonus offers for us based on aggragate assets transferred in each account by owner. And then about 5 months later we got additional bonuses (i.e. less than 12 months later) when we transferred additional assets.

My advice, figure out what you actually qualify for under a competitor’s offer and ask for the match. If Schwab won’t match it, then go with the competitor.
“Doing nothing is better than being busy doing nothing.” – Lao Tzu
RubyTuesday
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by RubyTuesday »

I’ll also add that I’ve been very satisfied with Schwab customer service.

An example from this week.

We are about to close on the sale of our house. We plan to wire the proceeds to our Schwab account. I got the wire instructions online and sent to title company. Just to be sure, I sent an email to my Schwab rep late Sunday to confirm wire instructions and make sure there were no inbound restrictions (I don’t do wires often). Btw, I chose my rep based on him being a CFA charter holder and not being in licensed insurance. He called me first thing Monday, congratulated me on the sale, confirmed wire instructions, and said he would be available during closing if there was an issue. He did ask if I needed any assistance with investing the proceeds, but as soon as I told him my plans (short term T-bill ladder because proceeds will fund upcoming new construction), he didn’t try to sell anything, other than providing info on Schwabs money market funds. He said the plan sounds good, provided contact info for a fixed income specialist who could guide me through setting up the treasury ladder if I needed help, at no cost.

Then he followed up with an email with all the info we had discussed.

I was genuinely impressed.
“Doing nothing is better than being busy doing nothing.” – Lao Tzu
Jaylat
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by Jaylat »

FYI: Schwab has three "Government and Treasury Money Funds" that are all considered US treasury money market funds but have have various yields, strategies, etc. All have fixed values but slightly different investments:

Schwab Government Money Fund – Investor Shares (SNVXX)
Schwab Treasury Obligations Money Fund – Investor Shares (SNOXX)
Schwab U.S. Treasury Money Fund – Investor Shares (SNSXX)

After some research, I've classified them as follows:

Fund Duration Yield
SNVXX 26 days 1.83% Treasuries, Agencies, repos
SNOXX 15 days 1.88% Treasuries and repos
SNSXX 36 days 1.57%. Treasuries only

If you are looking for income exempt from state and local taxes, SNSXX is the best, with 84% of fund income considered to be from "U.S. Government Obligations." The other ratios are:

SNOXX: 69%
SNVXX: 37%

Big difference!

Usually I get lots of great info from calling Schwab. In this case I wasn't able to find anyone who could knowledgeably describe the difference between the three funds.
Random Poster
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by Random Poster »

Can someone please PM me the contact information of a Schwab consultant/advisor that they would recommend contacting?

I just talked to one in my immediate area and he did not inspire any measure of confidence at all—saying that Schwab did not charge any fees to buy a Vanguard mutual fund, which I am rather confident is simply incorrect (absent any fee waiver that has been granted to someone).

Thank you.
Most experiences are better imagined.
tj
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by tj »

Random Poster wrote: Fri Aug 12, 2022 2:33 pm Can someone please PM me the contact information of a Schwab consultant/advisor that they would recommend contacting?

I just talked to one in my immediate area and he did not inspire any measure of confidence at all—saying that Schwab did not charge any fees to buy a Vanguard mutual fund, which I am rather confident is simply incorrect (absent any fee waiver that has been granted to someone).

Thank you.
I already asked for this, nobody wants to do this. :(
Random Poster
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by Random Poster »

tj wrote: Fri Aug 12, 2022 3:12 pm
Random Poster wrote: Fri Aug 12, 2022 2:33 pm Can someone please PM me the contact information of a Schwab consultant/advisor that they would recommend contacting?

I just talked to one in my immediate area and he did not inspire any measure of confidence at all—saying that Schwab did not charge any fees to buy a Vanguard mutual fund, which I am rather confident is simply incorrect (absent any fee waiver that has been granted to someone).

Thank you.
I already asked for this, nobody wants to do this. :(
So who did you end up using? :D
Most experiences are better imagined.
tj
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by tj »

Random Poster wrote: Fri Aug 12, 2022 3:15 pm
tj wrote: Fri Aug 12, 2022 3:12 pm
Random Poster wrote: Fri Aug 12, 2022 2:33 pm Can someone please PM me the contact information of a Schwab consultant/advisor that they would recommend contacting?

I just talked to one in my immediate area and he did not inspire any measure of confidence at all—saying that Schwab did not charge any fees to buy a Vanguard mutual fund, which I am rather confident is simply incorrect (absent any fee waiver that has been granted to someone).

Thank you.
I already asked for this, nobody wants to do this. :(
So who did you end up using? :D
I still have my accounts at the other brokerages.
nalor511
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by nalor511 »

If you go to Schwab with MF shares, do yourself a favor and convert to ETF shares first if applicable. Even if you get the fee waiver, the process at Schwab is not seamless like at VG. My Schwab rep is good.
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galawdawg
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by galawdawg »

tj wrote: Fri Aug 12, 2022 3:37 pm
Random Poster wrote: Fri Aug 12, 2022 3:15 pm
tj wrote: Fri Aug 12, 2022 3:12 pm
Random Poster wrote: Fri Aug 12, 2022 2:33 pm Can someone please PM me the contact information of a Schwab consultant/advisor that they would recommend contacting?

I just talked to one in my immediate area and he did not inspire any measure of confidence at all—saying that Schwab did not charge any fees to buy a Vanguard mutual fund, which I am rather confident is simply incorrect (absent any fee waiver that has been granted to someone).

Thank you.
I already asked for this, nobody wants to do this. :(
So who did you end up using? :D
I still have my accounts at the other brokerages.
To both...you may be more likely to get a response if you provide the city where your closest Schwab office is located...
Random Poster
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by Random Poster »

galawdawg wrote: Fri Aug 12, 2022 4:29 pm

To both...you may be more likely to get a response if you provide the city where your closest Schwab office is located...
Santa Fe, New Mexico.

But I really don’t care where the representative is located—or should I?
Most experiences are better imagined.
tj
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by tj »

galawdawg wrote: Fri Aug 12, 2022 4:29 pm
tj wrote: Fri Aug 12, 2022 3:37 pm
Random Poster wrote: Fri Aug 12, 2022 3:15 pm
tj wrote: Fri Aug 12, 2022 3:12 pm
Random Poster wrote: Fri Aug 12, 2022 2:33 pm Can someone please PM me the contact information of a Schwab consultant/advisor that they would recommend contacting?

I just talked to one in my immediate area and he did not inspire any measure of confidence at all—saying that Schwab did not charge any fees to buy a Vanguard mutual fund, which I am rather confident is simply incorrect (absent any fee waiver that has been granted to someone).

Thank you.
I already asked for this, nobody wants to do this. :(
So who did you end up using? :D
I still have my accounts at the other brokerages.
To both...you may be more likely to get a response if you provide the city where your closest Schwab office is located...
I thought I did mention this - Phoenix. When I asked about Vanguard fee waivers, they sent me information about OneSource funds - this did not inspire confidence. They ignored the question about matching brokerage competitor offers
Last edited by tj on Fri Aug 12, 2022 4:54 pm, edited 1 time in total.
nalor511
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by nalor511 »

Random Poster wrote: Fri Aug 12, 2022 4:31 pm
galawdawg wrote: Fri Aug 12, 2022 4:29 pm

To both...you may be more likely to get a response if you provide the city where your closest Schwab office is located...
Santa Fe, New Mexico.

But I really don’t care where the representative is located—or should I?
It doesn't matter at all the location, I do not want to meet my rep in person. I do want to have an office near me in case I every need one though
Kbg
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by Kbg »

Quick question. I have not bought bonds in the secondary market through Schwab. I was looking at their interface last night and had a bunch of TIPS up. In their display there was a YTM column which had all positive values. Can I assume the YTM values are computed correctly for TIPs?

I ask because until not too long ago TIPs were negative yielding...and if I do purchase I want ensure I'm not making an error.

Tks in advance!
RubyTuesday
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by RubyTuesday »

Kbg wrote: Wed Aug 17, 2022 12:14 pm Quick question. I have not bought bonds in the secondary market through Schwab. I was looking at their interface last night and had a bunch of TIPS up. In their display there was a YTM column which had all positive values. Can I assume the YTM values are computed correctly for TIPs?

I ask because until not too long ago TIPs were negative yielding...and if I do purchase I want ensure I'm not making an error.

Tks in advance!
I don’t know the answer to your question, but it may get a better response from either Kevin M or Jeffyscott over at the Trading Treasuries (nominal and TIPS) thread.
“Doing nothing is better than being busy doing nothing.” – Lao Tzu
chemocean
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by chemocean »

RubyTuesday wrote: Thu Aug 11, 2022 8:47 pm
chemocean wrote: Thu Aug 11, 2022 10:02 am Thanks galawdawg.
One fact I did learn is that the transfer bonus amount is based on the highest balance of ONE single account type (Roth, traditional, after tax [individual or Joint]) for each SSN, not on the entire amount being transferred.
This is not my experience. I think transfer bonus terms and conditions are very much local office dependent.

Schwab matched eTrade bonus offers for us based on aggragate assets transferred in each account by owner. And then about 5 months later we got additional bonuses (i.e. less than 12 months later) when we transferred additional assets.

My advice, figure out what you actually qualify for under a competitor’s offer and ask for the match. If Schwab won’t match it, then go with the competitor.
I don't really understand the current E*Trade for two accounts. I need to look into more.

My impression is that you get the full bonus for transferring the first account and about half that much for transferring the second account. The problem is that each account (traditional or Roth) is in the middle of the bonus range. So my understanding of the E*trade bonus is that we would get about 50% of the bonus compared to if the bonus was based on the sum of the traditional AND Roth balances.

At this point, I am less enthusiastic about transferring to any other custodian because I UNDERSTAND the Vanguard processes, even though they be customer service response might be slow and sometimes prone to errors. I personally have not had a major errors in transactions.
Random Poster
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by Random Poster »

chemocean wrote: Wed Aug 17, 2022 12:48 pm At this point, I am less enthusiastic about transferring to any other custodian because I UNDERSTAND the Vanguard processes, even though they be customer service response might be slow and sometimes prone to errors. I personally have not had a major errors in transactions.
Slow is an understatement.

I have been on hold at Vanguard for going on 1.5 hours now just to ask a simple question about ACATS transfer of ETF shares. It takes 45 minutes just to get to talk to someone, but they don’t know the answer, so then they put me on hold to talk to someone else, and on and on the process goes.

Extremely frustrating.
Most experiences are better imagined.
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galawdawg
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by galawdawg »

Kbg wrote: Wed Aug 17, 2022 12:14 pm Quick question. I have not bought bonds in the secondary market through Schwab. I was looking at their interface last night and had a bunch of TIPS up. In their display there was a YTM column which had all positive values. Can I assume the YTM values are computed correctly for TIPs?

I ask because until not too long ago TIPs were negative yielding...and if I do purchase I want ensure I'm not making an error.

Tks in advance!
While I haven't purchased TIPS, the YTM certainly should be correct...I don't know why it wouldn't.

Have you reached out to your dedicated consultant or contacted a fixed income specialist at Schwab to confirm? You can reach a fixed income specialist at 877-903-8069. While you can reach someone at Schwab 24/7, I think those particular folks work "Vanguard" hours. :wink:
Kbg
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by Kbg »

Ok, thanks! Thought I'd try here first. Will give Schwab a call.
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by galawdawg »

chemocean wrote: Wed Aug 17, 2022 12:48 pm The problem is that each account (traditional or Roth) is in the middle of the bonus range. So my understanding of the E*trade bonus is that we would get about 50% of the bonus compared to if the bonus was based on the sum of the traditional AND Roth balances.

At this point, I am less enthusiastic about transferring to any other custodian because I UNDERSTAND the Vanguard processes, even though they be customer service response might be slow and sometimes prone to errors. I personally have not had a major errors in transactions.
Certainly if your top priority is collecting an extra couple hundred dollars then you may be disappointed if Schwab doesn't pay you what you believe you should receive for transferring your portfolio. However, if you value the availability, competence and responsiveness of customer service, account features and offerings and the other benefits Schwab offers that Vanguard doesn't and simply view the bonus as "icing on the cake" then you may find Schwab a highly satisfying brokerage. Ultimately it is a personal decision about which brokerage(s) will best meet your needs. Good luck with whatever you decide! :happy
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by TomatoTomahto »

nalor511 wrote: Fri Aug 12, 2022 3:52 pm If you go to Schwab with MF shares, do yourself a favor and convert to ETF shares first if applicable. Even if you get the fee waiver, the process at Schwab is not seamless like at VG. My Schwab rep is good.
Due to factors not related to either broker, we initiated transfers of MFs rather than ETFs in a couple of our accounts. How much of a mistake was this? We don't expect to sell any MF shares for quite some time, perhaps never, other than in IRAs for RMDs. I guess if it's a royal pain, we could ACAT them back to Vanguard when the time comes.

Btw, moving an Irrevocable Trust for one of our kids was a lot less smooth than the other accounts and apparently will involve a notary and hard copy paperwork. Revocable Living Trusts were a piece of cake (so far).
Last edited by TomatoTomahto on Wed Aug 17, 2022 1:33 pm, edited 1 time in total.
I get the FI part but not the RE part of FIRE.
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by TomatoTomahto »

galawdawg wrote: Wed Aug 17, 2022 1:26 pm
chemocean wrote: Wed Aug 17, 2022 12:48 pm The problem is that each account (traditional or Roth) is in the middle of the bonus range. So my understanding of the E*trade bonus is that we would get about 50% of the bonus compared to if the bonus was based on the sum of the traditional AND Roth balances.

At this point, I am less enthusiastic about transferring to any other custodian because I UNDERSTAND the Vanguard processes, even though they be customer service response might be slow and sometimes prone to errors. I personally have not had a major errors in transactions.
Certainly if your top priority is collecting an extra couple hundred dollars then you may be disappointed if Schwab doesn't pay you what you believe you should receive for transferring your portfolio. However, if you value the availability, competence and responsiveness of customer service, account features and offerings and the other benefits Schwab offers that Vanguard doesn't and simply view the bonus as "icing on the cake" then you may find Schwab a highly satisfying brokerage. Ultimately it is a personal decision about which brokerage(s) will best meet your needs. Good luck with whatever you decide! :happy
YMMV, but Schwab agreed that they would consider one of the account owner's accounts in aggregate, making it eligible for a high bonus.
I get the FI part but not the RE part of FIRE.
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by galawdawg »

TomatoTomahto wrote: Wed Aug 17, 2022 1:31 pm
nalor511 wrote: Fri Aug 12, 2022 3:52 pm If you go to Schwab with MF shares, do yourself a favor and convert to ETF shares first if applicable. Even if you get the fee waiver, the process at Schwab is not seamless like at VG. My Schwab rep is good.
Due to factors not related to either broker, we initiated transfers of MFs rather than ETFs in a couple of our accounts. How much of a mistake was this? We don't expect to sell any MF shares for quite some time, perhaps never, other than in IRAs for RMDs. I guess if it's a royal pain, we could ACAT them back to Vanguard when the time comes.
If you don't intend to purchase any more mutual fund shares (assuming they are VG funds), then there is absolutely nothing wrong with just keeping the mutual funds rather than converting. Also, if you have a fee waiver to purchase VG mutual funds, then there is no disadvantage to sticking with VG mutual funds at Schwab to buy, hold and sell.

I believe that many recommend converting Vanguard mutual funds to their ETF equivalents before transferring out of Vanguard for simplicity and to eliminate any concerns about whether they can be held at brokerages outside of VG.

So no "royal pain" to transact those mutual funds at Schwab IMO.
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Re: Schwab Information Thread with FAQ, Links, Tips and Q&A

Post by mkc »

galawdawg wrote: Fri Aug 12, 2022 4:29 pm
tj wrote: Fri Aug 12, 2022 3:37 pm
Random Poster wrote: Fri Aug 12, 2022 3:15 pm
tj wrote: Fri Aug 12, 2022 3:12 pm
Random Poster wrote: Fri Aug 12, 2022 2:33 pm Can someone please PM me the contact information of a Schwab consultant/advisor that they would recommend contacting?

I just talked to one in my immediate area and he did not inspire any measure of confidence at all—saying that Schwab did not charge any fees to buy a Vanguard mutual fund, which I am rather confident is simply incorrect (absent any fee waiver that has been granted to someone).

Thank you.
I already asked for this, nobody wants to do this. :(
So who did you end up using? :D
I still have my accounts at the other brokerages.
To both...you may be more likely to get a response if you provide the city where your closest Schwab office is located...

Also interested in a recommendation, Knoxville, TN is our closest branch location.
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