Schwab's Troubles Continue: Is It The End Of The Schwab Era? | What's Happening With Schwab Bank?
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- เผยแพร่เมื่อ 14 ต.ค. 2024
- Is Schwab abandoning its banking business & is this the end of the Schwab era? Schwab's stock price hasn't stopped dropping since their Q2 earnings announcement this week. Watch on & find out what the latest Schwab news means for you & me as Schwab customers.
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*Sources can be found in first pinned comment
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Here is the overview for Bond Beginners:
1. Bond Basics
What A Bond Is & How A Bond Works
Why Invest In Bonds
New Issue vs Secondary Market Bonds
Interest Rates & Bond Prices
Current Yield & Yield To Maturity
Always Remember This!
Buying At Par, Above Par & Below Par
Different Types Of Bonds
Wrap-Up
2. The Risks Of Bond Investing
Seven Key Bond Risks
Credit Risk
Interest Rate Risk
Reinvestment Risk/Call Risk
Inflation Risk
Liquidity Risk
Currency Risk & Country Risk
Bond Risk Mitigation Strategies
Wrap-Up
3. US Treasuries Overview
What Are US Treasuries
Why Invest In Treasuries
Where Can You Buy Treasuries
How Are Treasuries Taxed
Wrap-Up
4. Treasury Bills
What Are Treasury Bills (T-Bills)
When Do T-Bill Auctions Happen
Where Should You Buy At Auction
Auto-Roll When Buying At Auction
Where To Find Recent Auction Results
High Rate vs Investment Rate
Reopening Auctions
Cash Management Bills (CMBs)
Buying & Selling On Secondary Market
Wrap-Up
5. Treasury Notes & Bonds
What Are Treasury Notes & Bonds
When Do Auctions Happen
Buying Treasury Notes & Bonds
Auction High Yield vs Interest Rate
Floating Rate Notes (FRNs)
Treasury Zeros (STRIPS)
Wrap-Up
6. TIPS (Inflation-Protected)
What Are TIPS
When Do TIPS Auctions Happen
Nominal vs Real Yields
Negative Yields
How Do You Adjust TIPS For Inflation
Taxes On Phantom Income
Secondary Market Liquidity
Wrap-Up
7. I-Bonds (Inflation-Protected)
What Are I-Bonds
How Does I-Bond Interest Work
I-Bonds vs TIPS
The Annual I-Bond Limit
Wrap-Up
8. Agency Bonds
The Universe Of Bonds
What Are Agency Bonds
How Are Agency Bonds Taxed
Treasuries vs Agencies
Who Might Want To Consider Agencies
Yield-To-Call & Yield-To-Worst
Where Can You Buy Agency Bonds
Wrap-Up
9. Municipal Bonds
Our Bond Universe Gets More Complex
What Are Municipal Bonds
How Safe Are Munis
How Are Munis Taxed
The De Minimis Rule
Social Security & Medicare Premiums
Treasuries, Agencies & Munis
Who Might Want To Consider Munis
Wrap-Up
10. Corporate Bonds
Our Bond Universe Is Complete
What Are Corporate Bonds
How Safe Are Corporates
Corporate Bond Hierarchies
Five Key Features Of Corporate Bonds
How Are Corporates Taxed
Treasuries vs Corporates, Etc.
Who Might Want To Buy Corporates
Wrap-Up
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Here is the overview for Bond Masters:
1. Stocks vs Bonds
Historical Performance
Are Bonds Really Less Volatile
Why Invest In Bonds
Accumulation vs Decumulation
Allocation of Stocks vs Bonds
Wrap-Up
2. Which Bonds Might Be Right For You
Treasuries & Other Types of Bonds
Nominal vs Real Yields
Inflation vs Non-Inflation-Protected
Taxable vs Tax-Advantaged Accounts
Wrap-Up
3. Bond Ladders & Other Bond Strategies
Normal vs Inverted Yield Curve
What Is A Bond Ladder
5 Important Bond Laddering Questions
Laddering When Rates Are Rising
Laddering When Rates Are Falling
Laddering When Rates Are Uncertain
What Is A Bullet
What Is A Barbell
Wrap-Up
4. Holding to Maturity vs Selling Early
Why Hold to Maturity
When To Sell Early Before Maturity
Tax Implications Of Selling Early
Wrap-Up
5. Individual Bonds, Bond Funds, Etc.
Why Buy Individual Bonds
Why Buy Bond Funds
Bond Fund Considerations
Key Bond Fund Concepts
CDs vs Treasuries
Other High-Yield Investments
Wrap-Up
6. Our B.E.S.T. Model Portfolios By Age
Our B.E.S.T Model Portfolios By Age
Model Portfolios In The Industry
B.E.S.T Model Portfolio Difference
How Much Do You Need To Retire?
How I Use The Rules of 100, 110, & 120
B.E.S.T Model Portfolios (20s)
B.E.S.T Model Portfolios (30s & 40s)
B.E.S.T Model Portfolios (50s & 60s)
B.E.S.T Model Portfolios (70s+)
Wrap-Up
7. The Decumulation Phase
What Is The Decumulation Phase?
Bear Markets & Recessions
What Can You Do In Bad/Bear Markets
Decumulation Tax Considerations
The 4% Rule
The Bucket Strategy
The Flooring Approach
Jen’s Bucket Strategy With A Twist
Wrap-Up
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SOURCES & FOLLOW-UP VIDEOS FOR TODAY'S VIDEO:
Schwab Q1 2024 Update: th-cam.com/video/dRuieAoZ9PE/w-d-xo.html
Schwab Money Market Funds: th-cam.com/video/Sydo00hfmJo/w-d-xo.html
How To Buy T-BIlls On Schwab: th-cam.com/video/mPWiEDlVwsI/w-d-xo.html
www.google.com/finance/quote/SCHW:NYSE
finance.yahoo.com/quote/SCHW/history/
www.aboutschwab.com/investor-relations
www.schwab.com/cash-investments
www.schwab.com/money-market-funds
banks.data.fdic.gov/bankfind-suite/financialreporting
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First, Schwab's Q2 YOY "key financial metrics" got better, not worse. So, take a chill pill. Secondly, bank deposits that "keep shrinking" is arguably not a bad thing. After all, what is a bank's worst enemy? Bad loans, not shrinking deposits. So, the focus of your _sky-is-falling_ mentality is misplaced, to say the least. It's amazing that you "educated" your viewers (your words) to move their deposits into a money market account, and when they do, in your convoluted rationale, you somehow characterize this as a bad thing. Jeez... 🤨
I am a Schwab and Fidelity customer and active trader. What is frustrating with Schwab is they don’t automatically move money from their money market to cash available to trade and if you sell it will not take effect until the next day. What compounds the frustration is that I place limit orders which may take several days to execute and in some cases won’t execute at all therefore losing interest on that money. Fidelity on the other hand allows you to place a trade and will automatically move the funds from their money market therefore you get interest up until the trade settles.
Why on green Earth TD Ameritrade sold to C.Schwab. Why not Chase ?
But Schwab's banking problem, could be a "national" problem? If that is the case, interest rate will go down sooner.
No more schwab trade, all handled by TDA/TOS now. I have both SSE and TOS accounts and all looks OK. Support is much better.
When my account was with TD AmeriTrade, the funds from a sell order of money market fund was immediately available for buying securities. I'm frustrated it is lost when my account was moved to Schwab. My feeling is that the feature is there, but the Schwab management just do not bother to carry it forward. 😒😒
I’m with Schwab and have most of my money in SWVXX, which I can simultaneously sell cash secured puts with. It’s fantastic!
If you want to place an order for stock at Schwab, you need to sell your SWVXX which takes 24 hours. Then after waiting a day if you place a limit order that does not execute it takes another 24 hours to move the money back.
Jennifer, welcome back! So happy to see you looking healthy and full of energy. :) Thank you for the heads up on Schwab.
Thanks for the heads-up on SCHW. You really did tell what you think... I cannot grasp how someone can leave more than $100 in a brokerage/bank account that pays 0.45%.
Personally ,it requires some work and planning on my part to transfer money from another online bank, which pays 5%, to SCHW, although it is worthwhile.
I like the fee reimbursement on the ATM and the commission free Tbills purchased at auction; I stay below the SIPC limit and I am not planning to buy the SCHW stock anytime soon...
In conclusion, 🤩Jennifer, you are always the best!
I love my checking account at Schwab. I like the fact that they reimburse ATM fees and as you mentioned good customer service. I have a brokerage account with 20k in it so I’m well below the limit. I hope they can solve their issues because I would be sad to move away from them.
I like the ATM fee reimbursement also. Won't this go away with the banking side of Schwab?
Fidelity does the same worldwide ATM reimbursement except they also pay 4.97% on the money in that checking account. Schwab pays like 2.3%
@@wanderingdoc5075 I think we only get 0.45% in the checking?
Your brokerage account is NOT FDIC insured. The money has to be in Schwab Bank which IS FDIC insured or a FDIC insured CD .
Gonna miss their international ATM fee reimbursement. Whats a good alternative?
Jennifer: Thanks for your take on the situation. I have been averaging down and buying more Schwab stock this week. I think the drop in share price is overblown and once the fed begins its cutting cycle, I expect the stock to rebound nicely. That said, i could be wrong. I have been a loyal Schwab customer for decades and have seen Schwab go through a multitude of ups and downs. I'm staying the course.
Your wrong..., this was/is the start of bear markets....
Me too. I've bought more.
I think we may see a hard situation and a market drop or two before things get better.
It sounds to me that the banking side has grown so much that it has become a bit of a liability for them. So, they are doing the responsible thing and shrinking it back down to an easily manageable size. That will probably be better for Schwab in the long run.
I’m invested with Schwabs CDs . It’s fdic protected . Not worrying about it
A CD seriously? Boo! If the banking system collapsed today there is no money to pay you. FDIC protection doesn't mean you will ever see a dollar when a collapse happens. Individual investors are one of the last groups to get paid which means all the money will have been paid out to claimants like other banks, bond holders etc. long before you and then there's nothing left for you. Haven't you realized by now everything's bankrupt and we (world) are operating on borrowed time? On Wall Street there is something called the smart money vs. dumb money. You should understand from the tone of this message what camp you are in. You better learn what smart money does or the dumb money is going to wipe you out.
Me too👍👏😍
@@BearPapa49 do you.know how long it takes to get your money back if ever?
@@jaxjaxvang4910 to get the highest cd rate click on trade "bonds" and look at the cd rates you want. Then click on trade "cd's" and look at the rates. You will notice the rates are higher when you use the bonds menu to select cd's
But their returns are below market.
Thanks for this video.
DO NOT,.. repeat,.. DO NOT move your account to Schwab.
I moved an IRA account to them from Fidelity a couple of years ago.
I trade pretty actively,... stocks, options, treasuries,.. in it and so real time updates to every column in the account screen is pretty critical.
And over the last few months their account screen updates don't reflect accurate balances, stock & option prices, bids and asks,....
And this was before the Microsoft data center problem the end of last week.
It cost me a couple thousand dollars in option losses last week.
On Thursday and Friday when the real SHTF,... when even my JPM account wasn't operating properly, I had to go to Robinhood, where I have a small trading account, to verify quotes, bids and asks.
I just could not count on Schwab's summary and especially the order placement and verification screen to provide accurate prices, bids and asks.
I brought this up to Schwab when I originally found columns not reflecting accurate pricing updates and balances a couple of months ago.
They told me their IT department would check into it.
A few weeks later they even sent out a message to all clients that their IT was working on this issue.
It wasn't fixed before the MSFT ordeal and it was exacerbated during it.
I'm moving out of Schwab.
Probably going back to Fidelity.
Or maybe to CitiGroup, who because they don't have any brick and mortar branches in Texas pays 5% or so on cash balances,.. or they did when I thought about moving from JPM to them last year.
Although Robinhood is is childishly wonky,.. it has some good points,. like it pays 5% on uninvested cash,..it's ok for trading options,.. which seems to be its focus,....it shows option orders on the account summary page while. it buries stock orders in a too inconvenient to track screen.
And then you have to cancel the order and recreate a new to change the order... I don't even know if you can trade bonds,.. which I use my JPM account for mostly,... so it's no Fidelity.
But I am definitely moving out of Schwab.
@jcgoogle1808: Does Fidelity charge monthly or annual fees to keep a brokerage account with global ATM-fee reimbursement? Thanks!
@@BettyOuyang
Fidelity doesn't charge a fee to have a brokerage account in the US anyway. All of its stock and options fees are as low as any other,
They do charge interest on margin and short positions..
I've never had any kind of a credit or debit card with them, so not sure about ATM fees.
Running out of options for brokerage diversification...
Most of my money is with Schwab. I’m an option trader who migrated from TD Ameritrade and love Think or Swim. I also have Fidelity, but don’t trade options in that account. Another great Schwab feature is that I can have money in SWVXX, while at the same time sell cash secured puts. I consider it “double dipping”.
@@sandrahoward5512 is the ‘paperless ‘ option in think or swim good? For someone who never actually executed a coveted call? The software is confusing
Consider Fidelity because you get interest from the cash reserved in the brokerage account even if selling cash secured puts.
do you need to manually move cash from SWVXX prior to seeing put assigned or does it auto pull ?
@@bhall7997 No, I keep almost all of my portfolio worth in SWVXX and I’m able to sell cash secured puts with the entire amount simultaneously. I’m fortunate, in that, cash secured puts are my favorite trade. If covered calls were my favorite, I’d have less in SWVXX, because of having to own stocks.
@@bhall7997 Auto, which is why I moved to Fidelity.
Was not aware their upper management bailed on Schwab, always alarming
The deposit outflows are customers buy US treasures with their cash, not abandoning the Bank.
The Schwab checking account is awesome. I hope they don't mess with it.
Something's off. Take your 4pm ending balance today and compare it to your 4pm ending balance tomorrow. The Day's Gain / Loss does not reconcile or roll forward. Ever... I call often, they know the problem persists. It is inexcusable.
I was forced into Schwab via the buyout of Ameritrade, and my trading experience worsened immediately. Now transitioning my account to Fidelity, knowing that Fidelity is far from being optimal.
How is Fidelitys mobile trading app? Is it close to as good as TDs? I absolutely loved the TD mobile app!
My experience with Schwab was that they practiced age discrimination, after that, I wanted nothing to do with them. Like you I was using Ameritrade, but once I heard of the buyout, I moved all my funds to Fidelity. Fidelity takes some time getting use to, because it is a lot different from TD, but overall, have had a good experience with them.
I hated being sold out of TD Ameritrade.
Every thing online was “cleaner” and easier to understand.
I was with TD Ameritrade on purpose.
The persons I have spoken with at Schwab have been very nice and real informative and easy to talk to.
@jlvandat69 I have no issues with Schwab trading. but the end of day results don't make any sense. The math is totally wrong. They show an equities price down or up, but the investments total value goes the opposite way. That's impossible.
@@shawnirwin6633 I left Fidelity years ago because they started charging a manage fee on deposits.
Man I hope this isn't the end. My TD Ameritrade accounts just got converted to Schwab 3 months ago. I don't want to switch again.
Same here. I don't think the Schwab brokerage will be affected. The issue is with their bank, so they're shrinking it down to focus on the brokerage business which is doing well.
Same, but it seems like mergers happen every 5 years or so.
My TD Ameritrade account got moved too, after a lot of Schwab red tape. But it didn't start as a TD Ameritrade account; it was a Datek account before that. Datek was acquired by TD Ameritrade. I can't remember, but I think it was a different account before Datek. So I expect the acquisitions to continue!
@@utubewillyman My computer was infected with a virus just days before the transition, so it was extra stressful for me. After restoring my computer from an old system image, it took me a week to reconfigure ToS the way I like it, while at the same time getting situated with the new brokerage accounts. I do not wish to go through that stress again. Hopefully, Schwab is a big enough whale that it won't get acquired by someone else. I'm disappointed to hear how they mismanaged the banking side, but it sounds like they are acting responsibly by shrinking it down to a more manageable size.
I know how you feel, I went from Scottrade to TD Ameritrade and now Schwab. It never seems to end.
I’m a happy Schwab customer for more than 30 years.
Schwab is not used to the new higher for longer rate environment and is still struggling as customers pile into the higher return products. Schwab expected rates to be back down by now and customers being just fine collecting .45% on their idle cash like in the past. And has found out investing in long bonds is not such a good idea. I'm hanging in there as I like Schwab and I expect them to work things out as well or better than the rest of the banks that have the same problem.
Schwab is not the only bank with that problem.
Just hoping the banks and markets don’t crash in the fairly near future.
I am a Schwab trader. The day Crowdstrike went down was a terrible day for Schwab-- I couldn't execute any trades at all and got stuck with some tanking stocks thanks to that fiasco. I have not been impressed with them at all-- I was a TD Ameritrade customer and wish we could go back to that
👍👍👍👍
Agree.
switch to IBKR , Excellent in trade execution, honest spreads , customer sevice AND 4.83 % on settled cash.
Wow..I do not know what to think. A case of bad timing on their long term bonds at historically low rates? Or a really bad call with no one up the line putting the brakes on making such an ill conceived move? Concerning…
Previously, most of my assets were at Schwab, but now it's a bank account for their excellent ATM card for international travel and a relatively small brokerage account (a requirement to keep the ATM card). I hope they don't eliminate their excellent ATM card, or I will simplify and leave them forever.
The ATM card is why I opened my Schwab accounts. It seems logical to me if they get out of the banking business, that would include the ATM card. We will find out soon I suppose.
@@Rose-nb6su I suspect Schwab will have to continue the no-fee ATM card or they will lose customers to Fidelity which offers it.
@@Rose-nb6suyup also
Yep, we got stuck with Schwab when they absorbed TDA. Between the 2 of us we have been with multiple other companies, and Fidelity is my favorite and way better. TDA was better also. We will begin the transfer process over the next couple months. The problem with the sweep accounts, and delayed trades is very frustrating.
Brokerage firms like Schwab, Goldman, and Morgan Stanley are learning that it is hard to be a bank if you don’t have huge scale like JP Morgan, BofA, and Wells. They needed the government protection during the GFC, but the regulations are so tough.
If a publicly traded company opts to outsource overseas to reduce expenses, it should begin by outsourcing the CEO, CFO, CTO position.
By saving millions in this manner, the company can maintain the employment of numerous American workers.
These employees, in turn, will contribute to the local economy in various ways.
You don't need huge scale to succeed in banking. Community banks and credit unions are examples of that.
Their banking business was the reason I opened an account with the company.
Well that was a mistake, sooner or later you will have problems.
I doubt it. Love Schwab so for for international travel. Others don't even offer anything close without a fee.
Thanks for the heads up on Schwab. I just moved more of my brokerage accounts to Schwab. But I moved my husband’s to Fidelity. I was part of the transition from TD Ameritrade to Schwab. I think I’ll give this some more thought before acting.
Schwab has excellent customer service and features. Welcome.
I have two Schwab accounts trading PM margins, I transferred one to TDA trading under TOS. The one in Schwab stays at SSE. They both are not perfect but the TOS is better in margins. All the trading tool is TOS, the rest are still Schwab like banking stuff, Bonds, funds, CD and Market funds. The transition is only the trading tool (no more SSE) - mostly for active trading actually.
Jennifer, Thanks a lot for your SIPC, FDIC and analysis. Having Brokerage and Bank businesses under the same Schwab name causes customers and share holders confusion.
Can you help us to further understand the potential by clarify different scenarios as follow:
1. If an individual has an IRA account and a Joint account, shouldn't the SIPC double the protection to $1,000,000?
2. What extra amount and how Schwab Excess-SIPC should work for brokerage accounts?
3. Isn't that true the trillion dollar assets under Schwab management are not the brokerage's asset thus cannot be liquidated as Schwab's, except those not fully paid in margin accounts?
4. Isn't it true IRS law disallows margin accounts in IRA and let alone asset to be lend out?
Despite market devaluation, it may be advantages for Schwab to spin out their banking business. Just like GE, Dell, HP, etc.
Thanks so much for a useful information! Am also new with Schwab! My former boss has his $ there for over 30 years, he said Schwab is never going down 🙏💞
I just joined Schwab last summer. I’m impressed with their helpful and friendly customer service, despite my under $100 grand account. I brought my wife over to Schwab and she is impressed too. We were with Truist and PNC banking. I don’t see a need to change from Schwab. I found this video very informative.
Hope he is right.??
Hope and no knowledge or confidence is not a strategy for success.
Usually if a brokerage fails, it is being salvaged by another firm. So,no use having sleepless nights worrying.
Schwab bank did the same thing most other banks did with purchasing long term lower rate US Bonds.
I love Schwab’s customer service and would hate to see it change. Every brokerage has something more and something less. You don’t have to have just one.
I am a schwab banking customer and they are the worst. I had many years of good service, but in the last 4 years they have canceled my card 3 times while I was overseas, leaving me high and dry. The 2nd time they "sent" me replacement cards 4 times after I returned to the US to try to resolve the problem, they finally told me to open a local account and the would wire money to that account. Overseas they really don't have support, you can try to chat with them or their bot, but I have never had any success with that.
I am fed up with Charles Schwab and WILL CANCEL my account as soon as I can get back to the US.
This might be the only reason they bought TD Ameritrade-for the deposits because they never planned to make their interest rates competitive with Vanguard and the Treasury Department.
Schwab needs something similar to Fidelity's SPAXX with no fee cash sweep.
Thanks for the analysis. I like Schwab overall, but hate the next-day delay in using SWVXX funds. I'm not an active trader but have had instances where I wanted to buy a dip and lost the initial rebound. (Of course, this has probably saved me from a couple falling knives too.) Anyway if you commit to moving the money there should be instant credit, and they can reconcile on the back end.
100 percent agree with you. If your money in Schwab is not over the LIMIT, you don't need to worry.
What’s the money limit?
What does over the limit mean?
250,000 FDIC insured deposits
Guess them buying TD Ameritrade didn’t help much.
That’s ok. JP Morgan will come along and buy them just like all the other floundering banks.
Pretty soon there will be just one bank. Get ready for the United States of Morgan.
Thank you for the revelation that you're not currently thrilled with Schwab and another brokerage house. I'm curious of what's the 2nd one you're not thrilled with.
well we know it isn't Fidelity...
Me too.
I'd like to know as well, who is the other broker?
The video is defending interesting and useful
What I don’t understand is that. Say you are someone with substantial assets at Schwab investment in mix of stocks, etfs etc, 5-10m
And you don’t invest into Schwab stock. What risk are you assuming by staying with Schwab?
Probably none, but if the COO and CFO have left, whose to say the fund managers won't start leaving... if the do, then there may be some risk involved in my opinion.
@@sonjasssggg4575 the risk if managers leave and you invest into funds they run?
None. Most of us are not holders of Schwab stock. Schwab is a custodian of our electronically held stock, mutual fund, etf and bonds. In the event the company collapses, these would be transferred to another custodian. If the Schwab bank collapsed, you are FDIC insured to the limit allowed by law. So I think Jennifer is throwing up a lot of dust here. I have better things to worry about than every quiver of Schwab’s quarterly earnings. Best wishes!
Hi J... you mentioned moving from an old brokerage to Schwab is on hold. Perhaps there is another video to be made on who this old brokerage is and why you're not happy with them? Is it Vanguard?
I’m curious as well
It's not Vanguard - stay tuned, we'll have more videos along those lines coming shortly
@@DiamondNestEgg interesting. Then I'm guessing it's Fidelity. Can't wait to see what's going on. thank you. I'm super confused as to whether I need to move $ out of Schwab or not.
@@kellylee514 Hi Kelly. Jennifer posted this video last week - it might be helpful for you: th-cam.com/video/7Mmnd-UMKg8/w-d-xo.html Eva
Schwab has this statement regarding assets over SIPC limits:
Does Schwab have any additional protections for client securities beyond those provided by SIPC?
Yes, in addition to SIPC, Schwab clients receive an extra level of coverage through "excess SIPC" insurance protection for securities and cash. This helps ensure claims will be covered in the event of a brokerage firm failure and funds covered by SIPC protections are exhausted. Schwab's Excess SIPC program has a $600 million aggregate (meaning the most the program will pay for the Excess SIPC portion of the losses). Commodity interests, futures contracts and cash in futures accounts are not protected by SIPC.
On the base SIPC protection of $500k, is that total equity, bond, and cash values? If a portfolio if over that amount are you at the mercy of the "excess" coverage?
@@billl1127 Just posted in a separate comment and then saw this. On Schwab's website apparently it states they have "The combined total of our SIPC coverage and our "excess SIPC" coverage means Schwab provides protection up to an aggregate of US$600 million, limited to a combined return of US$150 million per customer, up to US$1.15 million of which may be in cash.
@@personalperspective Seems like I won't have to worry then. Thanks.
@@personalperspective Aggregate means total amount, what happens to the rest after that aggregate is consumed?
Former TD customer. SCHWAB customer service is terrible. Most recent call they were so busy I had to be in a callback que. Its like tring to call the IRS.. Never had anything like that with TD or Fidelity.
I also liked TD app way better
@@stefanrodriguez3059 Totally agree. I loved that TD app.
OMG, TDs mobile app is (was) unparalleled. I have screamed at customer service at Schwab so many times now that I can't count. Who was the genius that that thought trashing the best mobile trading app in existence would be a good idea?
@@willporter9620
You said that right.!!
Schwab's cheap money deposits went to the high money market funds. That shouldn't last forever. it will go down once they start to cut the fed rate. It may not draw as much once there isn't so much $ difference. They saved their good sweeps for their best customers...or those with lots of $. We also haven't had any suprise long-term downturns recently where investors got stuck in margin for months on end. Also seems like fewer people have been using margin. The dumb thing is, I would have never looked for the money market funds had Schwab had offered. the automatic sweep on cash. They save that for exclusive customers. That's not to mention that many TD customers didn't like Schwab charts, order flow, etc. That's money that went out the door.
I think I might move out of Schwab soon as well too. They aren't as good as TD Ameritrade. The whole not automatically putting your cash into a money market account sucks.
TD didn't do that either though...
Why put your cash in a MM?Robinhood provided 5.5% on cash accounts.
Newsflash: Schwab bought TD Ameritrade about 15 months ago
@@stuartreynolds9297is Robinhood FDIC insured?
I am wandering if Vanguard would be a good option to move Schwab money to. Thoughts? Do they have the same cash account like Schwab or are they more like Fidelity? I really don't like the delays with repurchasing Treasury Bills either. I really like TRowe Price Mutual Funds, but Not their Brokerage. They have great customer service, especially as a Summit member ( on Mutual Fund side). Their stock funds do great!
I moved $1M from my Fidelity IRA to Schwab to get their $2500 xfer bonus offer. Now they're stuck there until Apr'25 if I wanna retain that bonus
You transferred that much money just for a 0.25% bonus?
@@xuansu9036 It's an in-kind transfer of stocks/etfs from a Fidelity IRA to an already existing Schwab IRA. The amount of time I spent in the process is very well worth the bonus I gained - it's almost free money to me. Go online on fin msg boards and read up on this topic of bank/brokerage bonuses and you'll get varying pro & con opinions. To me, the pros far outweighed the cons.
@@xuansu9036 Also, that $2500 bonus would represent 3% of my projected passive income from dividends/interest in my IRA holdings this year. So yeah, it was worth it.
@@xuansu9036I was about to say the same thing, not a very smart move at all.
Wondering if my stocks r safe with Schwab? Should I pull out everything? U give an excellent presentation 💕💕
Jennifer, you mentioned there is another brokerage you are unhappy with. Which one is it, and why? Thanks!
Yes, curious minds want to know.
Yes, do tell, please.
Let it go.
@@m.r.2183 It’s gone.
Schwab had over 500 million exposed in Chinese real estate conglomerates which are going down, hence the laying off of personnel to save 500 million announced late last year.
Thank You Jennifer! What a clever presentation.
0p
Jennifer... which brokerage firm are you unhappy with ? Can we hear who and why ? Thanks for all you do for us !!!
Yes Jennifer please share. Thank you
I think she would’ve told us if she wanted to let us know but probably doesn’t wanna get in trouble by talking bad about somebody directly and we don’t want her to get in trouble and go off the air!
@@JanaFav She's allowed her opinion, however she's classy enough that she will wait until she has the data or better info before going public.
TD was good and Schwab acquisition killed it. Moved out of Schwab it sucks.
I hate ThinkOrSwim. Should have called it SinkAnd Drown.
Say more about insurance of Schwab brokerage accounts. Also, what is the possibility of Schwab declaring bankruptcy?
Wow. I am always amazed and impressed with your analysis, clarity and method of presentation. I appreciate what you do. I don't see this in all the other, so called, "financial talking heads" online.
I was a TD client that moved to Schwab as part of the private client last group in May. The transition has been scary! Here are the reasons: 1) if you look at the balance you have one day after 9pm (when funds are done pricing) and add the change shown the next day- oftentimes it doesn't equal the balance showing on day 2! 2)There does not appear to be an accurate accounting of projected YTD income which I need for tax and retirement planning purposes. 3) The daily cash balance isn't always correct depending if you purchased something that day - ie the purchase of a bond from a money market sometimes shows as a big negative to cash 4) I don't have access to prior TD statements to try to balance out this mess. YES I WILL BE MOVING MY ACCOUNTS AS SOON AS I AM CONFIDENT HOW MUCH MONEY I HAVE IN SCHWAB
Schwab use to have the best customer service of any bank. Now it is clear the company has dropped this as a priority. In saying that it’s hard to Imagine Schwab not being around in the future.
Good information. I'm waiting to hear about some kind of merger with another bank or brokerage from Schwab.
Very clear thinking ! Well done and thank you for sharing these insights
I never went with Schwab. At the time I could not transfer funds electronically to my bank. Had to wait for a check in the mail. No other brokerage was doing that stupidity.
Great video! You do a great job of explaining your take so that I think most of us have no trouble following and understanding you synopsis of what must have taken you a lot of time and effort to dig into. Thanks!
Hi Jennifer whose the other broker that you think is not so hot?
Great job. Very detailed analysis of the problems at Schwab and how that affects their clients. Glad I’m subscribed to your channel and that it popped up on my feed.
One thing I noticed looking into Schwab checking accounts is you can't do international wires which is a drawback.
Not accurate. I've done an international wire to the UK, from the US, with no issues whatsoever. Had a VERY helpful woman from their currency exchange office assist me, and there was no charge for the wire. Schwab has excellent customer service, and lots of free benefits.
@josephroberts7374 no, i'm talking about incoming wires. see their website
talking about incoming wires
this is excellent. glad to find your channel.
SCHWAB customer ....2yr with Wealth Managed accounts...EXCELLENT content....Worried with recent news/announcements - sizable layoffs.
so confused…so if you have, for example, $1 million dollars of aapl stock in an ira in schwab and it goes under, are you only covered for $250,000 under SIPC?
schwab states they have additional coverage on top of sipc coverage: "The combined total of our SIPC coverage and our "excess SIPC" coverage means Schwab provides protection up to an aggregate of US$600 million, limited to a combined return of US$150 million per customer, up to US$1.15 million of which may be in cash. This protection becomes available in the event SIPC limits are exhausted. "
All of my money is in Schwab. I'm also using the bill pay option and have been since 2010. Schwab's customer service is the best plus Clause Schwab is head of the IMF which is like a double-edged sword I know, but you would think Schwab would be ahead of the curve. This does have me worried though.
I appreciate very much in how clear you are and moreso on the clarity on data and metrics to support your position. New subscriber!
4:33 Thank you for the reminder about money market funds.
Schwab was not able to complete stock orders today (7/19). I entered 2 limit orders in my Schwab account shortly after the market opened and both would have filled if I had entered them in either my Vanguard or Fidelity Accounts. Schwab still has the day orders as open two hours after the market closed. The problem is that the Crowdstrike software update took down Schwab's order system but had no impact on Vanguard or Fidelity where I entered orders with no problems today.
I was not able to buy a money market fund today either
I had trouble a few weeks ago buying T bills for my mom's account. It seems to be an ongoing issue and the entire website needs an upgrade. I'm so glad I transferred my TDA to Fidelity before the conversion began.
my 401k is with Schwab and I have a Roth with them. It was a little worrisome on 7/19 when I logged in and did not see the combined balance of the two accounts, only my Roth. My heart dropped to my stomach for a bit thinking something happened to my money. But all is well today I see the full amount invested in Schwab. I like them. I'm staying with them. I hope this doesn't take their customer service down. Vanguard was once great in that too, now look at them! I have $$ with them too. Like Schwab more.
The two day limit orders that I entered in my Schwab account early on Friday are still reported as "open" on Saturday 7/20/24. I am very active and have accounts with 5 brokerage firms. Schwab was the only one with this problem which has not yet been resolved. All online brokers that I use have periodic problems but Schwab has the most. I do like having the Morningstar, S&P and Argus research reports that are only available at Schwab.
@@gpags0205 I've have accts with Schwab, Vang, and Fidelity. No real problems with any of the three.
Just discovered this channel. Goodo. I'm very satisfied small time active trader and I look forward to your future updates as Schwab transitions into a smaller self.
Moving my portfolios from Schwab to Fidelity
prepare for careless customer service
They have Lloyd's of London covering the uninsured portion so I'm not sure what the worry is
This makes me wonder about their management, if not about their ability to survive. Interest rates are about to go down lower, and quicker due to the recession. Which will resolve all their issues with the low interest long term bonds. So are they making the same mistake they made when they bought those bonds? Namely assuming that the current environment will persist indefinitely.
My Schwab advisors are just the best. I would be very upset if I had to switch because that changed. Hoping these changes are smooth.
👍👍👍👍
Other than atm reimbursements they just seem boring and middle of the road. The website needs a redo.
I'm a schwab customer and only leave a few bucks in the cash account the rest is in various MM accounts as you suggest!
Your communication is clear, assertive and easy to follow. Pls keep on it.
18:17 Hold up - I have over $4M at Schwab brokerage, and it's all invested (no sweep cash) in SCHB, SNSXX, and various treasuries. (I also have Fidelity CMA accounts and a 401K.) But unlike the banking side, with the brokerage my investments are segregated from Schwab so it's safe in case of, say, bankruptcy. And SIPC protects against fraud/theft/etc., up to $500K. So should I really limit my brokerage holdings at Schwab to $500K?
I'm in a similar situation. My holdings at Schwab are above the $500k SIPC limit but they are half in equities, ETFs and treasuries and half in SWVXX and SNSXX. I'm confused if I should limit my funds in my brokerage account to the $500k SIPC limit.
@@cmh54321 Same here. As I understand it the brokerage is segregated from the bank, and it is the bank side that is holding the Treasuries. So, in the event that it becomes overwhelming, it's the bank side that would suffer the consequences. Though we all know the Fed would likely create a backstop in a worst case scenario. Also, it sounds like they are intentionally shrinking the bank, so that should dramatically reduce their exposure to the Treasury market which is the root cause of the stress. The core business seems to be doing fine.
I asked one of the top 3 AI's "If I have money in both SNSXX and SCHB, what is the maximum insurance coverage I will get from FDIC and SIPC" and found the answer, if accurate, to be surprising and sobering. I noticed cut and paste results from AI's tend to get deleted from the comments section but I hope this helps.
I’m very concerned as well. Ugh don’t know what to do here. 😮
I believe Scwab, like most brokers, have supplemental private insurance to cover accounts up to 5M or more. I recall asking about this during the small bank collapses a couple of years ago when Schwab stock cratered.
Does that mean the international atm reimbursement benefit is going away?😮
How's IBKR?
Insightful Video DiamondNestEgg. Thank you for sharing your thoughts on Schwab. It was very helpful to me.
Comprehensive and easily comprehensible superb video. Thank you!
My TD Ameritrade account was a great thing to me.. but of course I was forced to be converted to a Schwab account.. its not the same.. but I am not a huge investor so I could all go to another platform...
SCHW bought TD Ameritrade and now my commissions and fees are higher. Maybe they are looking at CONTINUOUS price increased, that many traders don't pay attention to as their future growth driver, because as you said, they are getting out to the Banking Business.
O' Yeah...I am going elsewhere as a Day Trader, specifically because of the fees. I wish I had listen to that call that day. I would have place a nice downside trade for sure.
Woow great info. Had no idea they were having problems. I just have the brokerage account. I would hate to have to move to another brokerage account.
Schwab has always been good to me, great platform and service.
Hi Jen , want to know is T bill protected by government or FDIC or SPIC ? I bought T bill through Schwab .
Thank you
Glad to see you call Schwab on the carpet so unequivocally. You’d think they’d manage their PR better than this, but I guess not.
Schwab cheated me on a trade today. I have screenshots to prove it.
Thx for this analysis and explanation on Schwab.
Fidelity is better than Schwab and Vangaurd
except their customer service is the WORST. Totally careless
M1 Finance is offering 5% yield on savings accounts up to 5 million dollars FDIC insured. Have you reviewed them?
Thanks for this update!
Thank you for the thorough and interesting due diligence deep dive. I subscribed your channel hoping to see more!
are there maybe plans that TD had in the works or at least at a blueprint phase that since the purchase of TD that Schwab might be going pick-up and run with?
Decided to buy PFE $25.60 6.6% YIELD!! outperform --Bank Sweep (4.5%,) + appreciation...
So far so good...
How do you lock in higher rates in case the Fed lowers rates?
I just bought and locked the 2 year CD
Thanks for this information and guidance. You are the only person, whom I am aware of, who is covering this topic.
👍👍👍👍
Yes. No fractional shares and can't link external bank are big no no to end Schwab
I think you can buy fractional shares via their Stock Slices, but it’s only available for companies in the S&P 500.
Yes you can link external bank accounts. I've done it
@@tiana0048me too
What do you mean “can’t link external bank”? Unless we are talking about two different things you definitely can.
You can google and find many people report that they can't link external bank with Schwab. Schwab is too far behind from average broker firm
Besides Fidelity which is my main broker, what other broker would you recommend beside Schwab. I have moved all my funds to Fidelity from Schwab and looking for a 2nd broker. I do not like to put all my eggs in one basket.
I have accounts at Schwab, Fidelity, and Vanguard. I really haven't had many of the complaints others have had. They all seem to work for me.
Could I transfer just part of my holding on brokerage account thx
Are they safe for money market funds? I was told you can lose monry
I have not been thrilled with Schwab's investor platform. On a scale of 1-10 I'd give it a 5. As a former TD user, I miss my TD platform.