📢 Get our popular bond course bundle & save $80: www.diamondnestegg.com/home#_paa2isucf ⭐ Bond Beginners (our foundational-level bond course): www.diamondnestegg.com/bond-beginners ⭐ Bond Masters (our intermediate-level bond course): www.diamondnestegg.com/bond-masters 👉 And join our super-supersaver membership for regular market updates & monthly live member Q&As th-cam.com/channels/nexoc6tvesvcCEzZhmI-Ag.htmljoin >>>>>>>>>> WATCH NEXT Our Bond Courses vs TH-cam Membership | Which Is Right For You: th-cam.com/video/H5h4Eyh0hjo/w-d-xo.html Bond Beginners Course Sneak Peak | I-Bonds vs TIPS: th-cam.com/video/uXPzbje1g2E/w-d-xo.html Bond Masters Course Sneak Peak | How To Build A Bond Ladder: th-cam.com/video/p90IDmXn19s/w-d-xo.html >>>>>>>>>> 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 >>>>>>>>>> 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 >>>>>>>>>> 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 >>>>>>>>>> Thanks for visiting our personal finance channel! We hope this content will help fast-track your financial journey! Everyone's financial journey is different. 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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.
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. 😒😒
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.
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.
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.
@@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
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.
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”.
@@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.
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.
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
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…
Like Ingles and their systems catastrophe being dependent on a single source of failure (for those that don't know, Ingles supermarkets were down for DAYS as they only had one data server center in Asheville when it flooded earlier this year), having a single source of connectivity and data storage/processing is criminally negligent and irresponsible. Schwab - call me. Seriously.
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.
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.
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.
The problem still remains. I'm only with them for now because of Think or Swim, but the gain/loss data between the two platforms doesn't reconcile. It is inexcusable.
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!
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.
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.
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.
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.
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.
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 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.
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.
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?
@@SurfCityBill 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.
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.
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.
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!
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. "
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.
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.
@@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.
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.
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
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.
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.
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 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.
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.
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 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.
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.
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!
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.
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.
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 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.
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.
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!
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.
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?
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.
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.
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!
Customer's securities are protected under the SEC financial responsibility rules (e.g. rule 15c3-3) so why would you worry so much about Schwab's stock price? I have to believe the regulators and auditors are doing their job to make sure Schwab is in compliance... I am an ordinary retail customer with brokerage accounts both at Fidelity and Schwab and I'm much happier with Schwab's customer service.
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?
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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
>>>>>>>>>>
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
>>>>>>>>>>
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
>>>>>>>>>>
Thanks for visiting our personal finance channel! We hope this content will help fast-track your financial journey! Everyone's financial journey is different. Please note that: 1) there are questions/ comments which I will not be able to answer without fully understanding your financial, personal & other circumstances & 2) we will not ask you to call us or send us money in the comments on this channel or any of our other social media accounts, so if you see comment(s) along those lines, it is most likely spam - PLEASE DO NOT ENGAGE WITH SPAMMERS OR GIVE OUT YOUR PERSONAL INFORMATION FOR YOUR OWN SAFETY.
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.
Running out of options for brokerage diversification...
Jennifer, welcome back! So happy to see you looking healthy and full of energy. :) Thank you for the heads up on Schwab.
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.
Was not aware their upper management bailed on Schwab, always alarming
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.
The Schwab checking account is awesome. I hope they don't mess with it.
The deposit outflows are customers buy US treasures with their cash, not abandoning the Bank.
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?
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.
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.
You don't need huge scale to succeed in banking. Community banks and credit unions are examples of that.
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…
Like Ingles and their systems catastrophe being dependent on a single source of failure (for those that don't know, Ingles supermarkets were down for DAYS as they only had one data server center in Asheville when it flooded earlier this year), having a single source of connectivity and data storage/processing is criminally negligent and irresponsible. Schwab - call me. Seriously.
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
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.
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.
There are probably unrecognized gains / losses which would not be reflected in the balance.
The problem still remains. I'm only with them for now because of Think or Swim, but the gain/loss data between the two platforms doesn't reconcile. It is inexcusable.
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!
Schwab has always been good to me, great platform and service.
Moving my portfolios from Schwab to Fidelity
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.
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 like td better the interface and everything
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.
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.
How's IBKR?
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.
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.
Schwab bank did the same thing most other banks did with purchasing long term lower rate US Bonds.
Schwab needs something similar to Fidelity's SPAXX with no fee cash sweep.
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.
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?
@@SurfCityBill 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?
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.
Fidelity is better than Schwab and Vangaurd
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!
Schwab customer service keeps customers. What a concept for the rest of corporate America to learn! Great video.
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. "
Say more about insurance of Schwab brokerage accounts. Also, what is the possibility of Schwab declaring bankruptcy?
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.
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.
Does that mean the international atm reimbursement benefit is going away?😮
I’m a happy Schwab customer for more than 30 years.
Other than atm reimbursements they just seem boring and middle of the road. The website needs a redo.
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 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.
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
Your communication is clear, assertive and easy to follow. Pls keep on it.
Thank You Jennifer! What a clever presentation.
0p
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
this is excellent. glad to find your channel.
4:33 Thank you for the reminder about money market funds.
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.
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’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.
Thanks for explaining your investments to us. You made my day.
They have Lloyd's of London covering the uninsured portion so I'm not sure what the worry is
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 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.
TD was good and Schwab acquisition killed it. Moved out of Schwab it sucks.
I hate ThinkOrSwim. Should have called it SinkAnd Drown.
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'm a schwab customer and only leave a few bucks in the cash account the rest is in various MM accounts as you suggest!
Very clear thinking ! Well done and thank you for sharing these insights
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.
Of course I am seeing this video in Nov. 3 weeks after starting as a Schwab banking customer
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.
Comprehensive and easily comprehensible superb video. Thank you!
Thank you
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.
Hi Jennifer whose the other broker that you think is not so hot?
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.
Good information. I'm waiting to hear about some kind of merger with another bank or brokerage from Schwab.
Thx for this analysis and explanation on Schwab.
Could I transfer just part of my holding on brokerage account thx
Thanks for this update!
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.
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.
Wondering if my stocks r safe with Schwab? Should I pull out everything? U give an excellent presentation 💕💕
how does this affect SCHD?
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.
Schwab’s management is much much worse than TDA...
Are they safe for money market funds? I was told you can lose monry
Wow! Well done!
How long did it take customers at SVB to recoup the losses?
Thank you as usual
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.!!
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.
Interesting , something to think about
They need to do fractional shares with everything, not just s and p 500.
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.
Fidelity is good but you give up some with their higher management fees.
Hey DN, after purchasing T-bills using funds in a Schwab account, how do I redirect the Treasury payout to another bank account?
Great video! Thank you.
They also told me that my 3 accounts were each SIPC protected at 500 k. Not so sure about that
I find your videos very knowledge based and informative. 🎉
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!
What does this mean for Schd ?
I appreciate very much in how clear you are and moreso on the clarity on data and metrics to support your position. New subscriber!
Is it still safe to invest in etf such as schd?
What is a HELOC loan?
Customer's securities are protected under the SEC financial responsibility rules (e.g. rule 15c3-3) so why would you worry so much about Schwab's stock price? I have to believe the regulators and auditors are doing their job to make sure Schwab is in compliance... I am an ordinary retail customer with brokerage accounts both at Fidelity and Schwab and I'm much happier with Schwab's customer service.
SCHWAB customer ....2yr with Wealth Managed accounts...EXCELLENT content....Worried with recent news/announcements - sizable layoffs.
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?
Great video, Thank You!
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.