You are right, but i's a fair question to ask pertaining to any broker. We used Schwab as the primary example because 25 year old life coaches have raised the topic out there and are generating lots of fear so we piggy backed off of it and asked a question everyone ought to ask. What happens if any financial institution I hold money with goes bankrupt?
I ended up at Schwab because they bought out TD Ameritrade in whom I was far happier. I do not like Schwab's rules and how they have handled the Think or Swim app. TD was better IMHO.
Keith is 100% right. Lots of problems with Schwab with my TD Ameritrade account. If it wasn't for the TOS "better than great platform" I would have moved both of my accounts away instead of just one.
I'm in the same boat. Schwab is hot garbage compared to TD. My profit loss numbers in ThinkorSwim don't make any sense and the response time for in the app is atrocious.
You really are by far my favorite finance individual. Everything is broken down. It’s very simple. It’s very skeptical. It’s very no nonsense and there’s no fluff. I think every video I’ve seen that you produced. I’ve always learned something. Thank you for what you do.
Thank you for the kind words! It's comments like this that encourage us to keep doing what we're doing. We aim to follow the KISS technique - keep it simple and straightforward. We're glad that shows. :)
I ended up with a Schwab account because USAA dumped me there. I actually like it a lot better. Before that I had Smith Barney. That was No Bueno. Merril Lynch was okay but that was before the internet, and you had to actually call your broker. LOL.
I remember watching a bit somewheres that Robinhood kept giving new members free shares of this random small cap biotech company and then charging the company 25 cents per shareholder proxy material they had to deliver, which caused the company to complain to the SEC about the soaring costs of paying Robinhood 25 cents per the enormous influx of new shareholders. Sounds like the plot to a Coen Brothers movie 😂
FYI . If you put your money into several banks just remember after 3 to 5 years if there isn't enough activity in the account, the banks can close the account and hand it over to the states unclaimed assets. Then you have to deal with the state to hopefully get your money back. This happened to my father on 2 accounts he forgot he had. With my emergency cash accounts that just sit in different banks and credit unions I set up a reminder to email me twice a year to take $1 dollar out, and them I put that dollar back. This qualifies as activity. Is it necessary? Im not sure but Id rather not find out ...
Joe here. That's a very useful comment. For older relatives that would be a concern (dementia, for example). For overseas and domestic accounts I login once a month (or year) and that seems to suffice. Any account that's paying you interest should be sending tax forms which is a useful reminder to login. Great point, thank you for the comment!
I have my accounts automatically ACH between each other on a monthly basis and that qualifies as "activity". Also works great for meeting the direct deposit minimums to avoid being charged a monthly fee.
Was the question ever answered? I just heard a lot of words without a definite answer, did I miss it? Example: Chapter labeled "Is Schwab safe?" 4:32 to 9:12 - This is a yes or no question without a yes or no.
I have a Schwab account. If I didn't think Schwab was safe, I wouldn't have a Schwab account. We present the facts. You make your own decisions. Joe P.
@@Nanalyze Right on, I also have Schwab and really like it. Was just thinking I missed your answer somehow, but I watched it twice and didn't fine a definite yes or no so figured I missed it and thought I'd ask. Watch all of your videos BTW, great stuff. Thank you for the reply.
Yes we try not to say things like "Schwab is safe" because then when they run into financial trouble we'll hear no end of it. :) Instead, we assumed the worst and then looked at what might happen. Whatever the outcome, investors with assets under certain cutoff points (stated in the video) will be made whole. Another thing to consider that the video mentions is how societal pressures will often force government to step in and make things whole. With such a large number of accounts, Schwab represents a lot of people. Really glad to hear you watch all our videos man! Thank you! That's great to hear :) Joe P.
@@Nanalyze I agreed with the post here that questioned your video. In my opinion, you never answered the question about what happens if Schwab goes bankrupt. I thought your video title makes it sound like this is a video about the consequences for the broad market if a big brokerage firm goes under. You give good basic advice but the title was clickbait for me
“Wall Street is not in the business of making you money it’s in the business of generating transactions” 12:41 . I believe this is why decentralization is so attractive.
Just recognize what a margin account is for - in and out trades and if you want to short stocks. The interest they charge is way too high to hold anything long term on margin. But I do think it's a bit nuts M1 is pushing people to leveraged accounts. That will get people in trouble.
Some a fairly successful retired couple with $2 or $3M basically needs to set up accounts with 5 to 10 different brokerages. What a challenge that would be for tax strategies, RMDs, proper diversification, amongst other issues.
Yes, it does pose some challenges around tax document gathering, required minimum distributions, taking 4% from total assets if you follow the 4% rule, etc. Aggregating your assets in a simple spreadsheet helps a lot.
I miss TD Ameritrade. They did great for me all these years. Now I see more than a few videos concerned with Schwab going bankrupt. Makes me feel like I should leave Schwab.
Instant analysts on TH-cam often spout nonsense because there is no barrier to entry these days. What formal source do you have that speculates Schwab is going bancrupt? Haven't seen this but have seen plenty of people spreading rumors.
@@Nanalyze No formal source. So far they seem solvent while making some odd changes to the banking side of their business. I don't care for them as much as TD Ameritrade. I don't see why these videos are even popping up questioning whether Schwab is going bankrupt. I don't see these videos for other brokerage firms like Fidelity or Vanguard. I definitely don't see them for other big banks like Chase. Why are they even being made? Even if wrong, it gives the "If there is smoke, there is fire" feel to Charles Schwab. If they had no problems, no one would be making videos like this one.
"Videos" aren't reliable. What is reliable is the number or morons posting clickbait junk to get attention. I haven't seen any legitimate concerns being raised about the health of Schwab's business but we'll always be keeping an eye out for that. Joe P.
@@Nanalyze I haven't either. I looked at Schwab's fundamentals and they seemed solvent. I tell you, you do hate seeing a brokerage you use even being talked about in the same breath as bankruptcy after you watched the 2008 burn down. Doesn't feel great at all.
they wont even disclose why their system was down for 2.5 hours this week . Blaming it on a unknown vendor - how convenient. been with them for many years - no longer
@@Nanalyze other companies have issues to . I tried opening an account with chase this week . Talked with 3 workers at account service center and they could not get an account created for me. They tell me to go to branch to resolve. Sad times in brokerage times
I have accounts at the 3 top brokerages. Schwab was my client in the 80s when they had 300 employees. I met chuck, that’s what the company called him. What I don’t like about Schwab. They have been making money sweeping accounts cash every night and make money. If you want the current 5 % on cash these days you have to direct money into an account. The other 2, when I have a settled account it just sits in an account that makes the current 5%.
I’ve talked with several investment advisors and I still don’t use one. I just use my Roth and 401k and I buy bonds. I can’t get I’ve the fees, and paying them to lose money. I want to use a investment advisor, but I just don’t know.
The three fund portfolio approach is extremely simple and effective for those who understandably don't want to navigate the financial advisor minefield: th-cam.com/video/1LYR3hD8VFA/w-d-xo.html
I'm currently thinking about opening a new account and can't decide between a high fee legacy platform and one of the low fee mobile first platforms. The low fee platforms really lend themselves to my approach when I'm investing small amounts every month.
Charles Schwab is not going bankrupt as the clickbait beckons. This company has over 11 trillion under management including some of my assets. Now all these other online only entities, I would worry about them a smidge.
@@Nanalyze You're right there is no way of knowing for sure, but they're the largest brokerage in the world and there's never been a negative story about Fidelity having any financical problems. I guess I assume they're fine, but who knows Anyway; maybe you could do a follow up video sometime and actually explain what would happen if Schwab or a Fidelity goes bust; both to their clients and to the financial markets. Would they be another Lehman or would it need to be a BOA or bigger?
@@888strummer Trying to anticipate the effects of a large brokerage failure is rather pointless because the financial industry is quite complex. This video looked at failure from the perspective of clients and beyond that would be quite speculative. The interest is noted though.
Hey that's great to hear! To be honest I haven't read the book, just pulled some quotes from it. I suspect it will be good though and fully intent to read it. Joe P.
I've had an M1 account for over three years now. No fees, zero problems, 5% APR on cash accounts. I've had another account in TD Ameritrade, which was bought by Schwab. Not only did Schwab liquidate all my assets during the transfer (which is a taxable event), but I've had to call them multiple times, email them, and upload documents to get my money out. This whole process took over three weeks. Fidelity (much better than Schwab, IMHO) offers the same pie/percentage portfolio option as M1 but for a substantial monthly fee. Finally, M1 offers margin as a sort of a loan for unexpected expenses (instead of selling your positions). It's not the best idea, I agree, but it's better than what most banks will offer.
Things are always working well until they're not. Systemic risk has a habit of blindsiding people. It's hard to see why offering margin to everyone is a good idea.
While the book "Fooled by Randomness" was a long and arduous read/listen, it speaks of some of the same truths you profess! Thanks for your excellent information and commentaries!
The amount of scams is measured in billions - annually - and an entire company (Chainalysis) has been created around reporting on the illicit activities that happen in the crypto world. Until the trilemma problem gets solved the entire space needs to be treated with extreme caution. The whole "democratizing access to wealth" spiel was a dead giveaway that anything but that is happening in reality. Many don't like when we say that but it's the truth. Joe P.
It all comes down to whether a person is an investor or a trader and the size of their portfolio. If someone wants to invest under 50K, then M1 is a perfectly good choice. Zero fees and limited trade windows may be helpful remedies for overreacting to every tick or supposed "market crash." If someone has over 1M, Fidelity is a better choice for your peace of mind. IMO, Robinhood (simple, intuitive, and lacking in more advanced tools) is more for beginner traders than investors. Finally, if you found yourself watching and reacting to the latest news daily, then perhaps a sack of gold on the remote island would be more of your thing. 🙂
Retail "traders" have their asses handed to them predictably so that leaves us with discussing investing. Robinhood pushes their customers who they "value so much" to invest in shite so that says a lot about their values. Yep, daily news is just noise. As someone once said, the stock market is just a giant distraction from the business of investing.
@@pastmyprime6330 It was. We talked about societal pressures on government to make things whole that come with being part of a group of 30 million account holders.
Until Vanguard starts dabbling it seems to be speculation. Robinhood makes their money off options and crypto so clearly they're going to push their consumer base towards asset classes that ultimately lose investors' money.
@@richarddelotto2375 I too can't figure out the shwabb thing, I haven't made a trade dine it changed . I love ameritrade. Is fidelity simular to that? Also how had was it to transfer funds?
Schwab wasn’t user friendly imo. Etrade (Morgan Stanley) seems to work best for me. I did open an account with interactive brokers but never ended up using it. Robinhood was my first “brokerage”. Transferred out of there.. New subscriber. Appreciate your style 🤜🏻🤛🏼
Your brokerage assets are protected under rule 15c3-3. All fully paid long securities must be under control or possession. In other words, locked up in a vault for lack of better terms. These shares cannot be lent out, this would cause a segregation violation. These firms are constantly shifted and they test for this.
How about Meet Kevin / House Hacks? Pro tip: Never invest through brokerages that are not insured. And do not exceed the (FDIC or other) insurance limit.
I have been learning all I can about stock investing this last month or so, and I keep coming back to the same thought. Big money wants me to give them my money and pay me back pennies called dividends. Because of a bad marriage, I'm 61 and just now putting aside to retire when I can't work anymore. I thought stocks were the answer. But , as an example, if I have 10K to invest now, big money will give me about $100 a month back. Sorry but I don't see the point. What am I missing?
I was with Schwab for less than a year in '22. For active traders their platform is painful to use. I spent many hours on the phone with the children they have in customer service. NO MORE!
You got someone on the phone in customer service? Unheard of these days. :) Customer support is quite important when you need it. That's where IB seems to lack.
I trade options primarily. I make 1-10 trades per day. Schwab has several different platforms (Schwab. Com/edge/central etc) & they all perform different functions so I needed to keep several screens open at the same time & bounce around for different trades. WHY can't you pick a platform you're comfortable with and use only one? I spoke with them several times about this. Their answer was " well when we purchased this company we inherited that platform and this company got us that platform. In other words they purchased a majority of their customers and never consolidated them into their own . There was also an incident where one of my positions closed when it shouldn't have. They sent me an agreement maybe 10 pages long and reimbursed me. It was maybe 9 months of that & I had enough
Good question. To us, that would fall into the "fintech" category that we'd steer clear of. We prefer to use publicly traded firms for brokerage accounts :)
😏-Sooo.....Because we are a data driven economy borrowing large amounts of Yen to purchase stocks, Hedge funds and digital currency is out of the question because it would be detrimental to our fragile economy wouldn't it?
Something for you to understand. Shitty little fees are irrelevant. What matters most is the trade execution. If you are buying 5,000 shares of stock, do you care more about the $7 fee or the fact that one platform acquired the stock at $10 per share and another acquired the stock at $10.10. First platform acquired those shares for $50,000. The second platform acquired the shares for $50,500. Saving $7 on stipulated fees when you paid $500 more for the stock is a bad deal. Focus on expert trade execution, not on irrelevant little fees.
Whether or not retail investors should use an advisor is a different convo really. Using a simple three fund approach you can pay a whole lot less in fees (described here: th-cam.com/video/1LYR3hD8VFA/w-d-xo.html ). Jones charges, what, like 1%? Then whatever products they push you towards will likely also have fees. They say that fees are the single biggest predictor of performance in the long run. Try to pay as little as possible.
The cash part on Schwab was interesting. If you leave up to $250K cash in your brokerage account, that falls under SIPC and not FDIC?? Hidden diversification tactic unlocked. Possibly.
That's not something I've heard before since we really keep things tight as it is. Thank you for the feedback and we'll look to continue providing a fire hose of insights as opposed to the rambling talking heads you find on many channels. Joe P.
your brokie is insolvent, then you wait minimum 1 year to solve your reimbursement. for the moment stay away from markets. go for food, cooper, silver gold, cigarettes, or whiskey.
Stopped watching when you called the best performing asset in the last 15 years "Crapto". I'm 54 and will be retiring next year because of "Crapto" lol. Do some research buddy.
If you don't like it when pundits warn people about asset classes with scams measured in billions then Nanalyze probably isn't for you. Thanks for the man bites dog story but crapto has fleeced more retail investors than anything else in recent memory.
I cant say how but someone very close to be opened his business and within 1.5 years its valued half billion already . It’s easier than one might think 😂. Ofc luck to get into a good business is important
The harder you work, the luckier you get. ;) Creating a business that goes from nothing to half a billion in 1.5 years is extremely tough to do. What you don't see are all the founders who fail to even get off the ground - and there are loads. VCs vet companies for a living and they still lose money on nine out of ten startups. We have a piece coming out Tuesday that touches on this.
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Charles Schwab has $7 Trillion (yes, Trillion) in assets under management. They have $18+ Billion in annual revenue. They ain't going bankrupt.
You are right, but i's a fair question to ask pertaining to any broker. We used Schwab as the primary example because 25 year old life coaches have raised the topic out there and are generating lots of fear so we piggy backed off of it and asked a question everyone ought to ask. What happens if any financial institution I hold money with goes bankrupt?
@@Nanalyzeat 65 years old I'm not listening to a 25 year old 👶😂
@@lkd06 25 year old life coach influencer is a must-have job these days based on how many of them are popping up ;)
@@Nanalyze mediocrity sells
just to say tho.. the schwab trillions to be fair are ON PAPER and also linked to the value of the dollar itself; a trillion poops is still poops
I ended up at Schwab because they bought out TD Ameritrade in whom I was far happier. I do not like Schwab's rules and how they have handled the Think or Swim app. TD was better IMHO.
Good to hear feedback from people that came in by no choice of their own. If the experience degraded then that's not good.
Keith is 100% right. Lots of problems with Schwab with my TD Ameritrade account. If it wasn't for the TOS "better than great platform" I would have moved both of my accounts away instead of just one.
I left Schwab in 2009 after a consultant there forked me over, and I went to TOS. Now forced back into Schwab 😢
I'm in the same boat. Schwab is hot garbage compared to TD. My profit loss numbers in ThinkorSwim don't make any sense and the response time for in the app is atrocious.
You really are by far my favorite finance individual. Everything is broken down. It’s very simple. It’s very skeptical. It’s very no nonsense and there’s no fluff. I think every video I’ve seen that you produced. I’ve always learned something. Thank you for what you do.
Thank you for the kind words! It's comments like this that encourage us to keep doing what we're doing. We aim to follow the KISS technique - keep it simple and straightforward. We're glad that shows. :)
I ended up with a Schwab account because USAA dumped me there. I actually like it a lot better. Before that I had Smith Barney. That was No Bueno. Merril Lynch was okay but that was before the internet, and you had to actually call your broker. LOL.
Ah yes, the old days. Widespread availability of fee-free trading has been both a blessing and a curse.
@@vdanger7669 for me it was TD Ameritrade
And my heart nearly stopped when I saw the words "Schwab" and "bankrupt" in the title
I remember watching a bit somewheres that Robinhood kept giving new members free shares of this random small cap biotech company and then charging the company 25 cents per shareholder proxy material they had to deliver, which caused the company to complain to the SEC about the soaring costs of paying Robinhood 25 cents per the enormous influx of new shareholders.
Sounds like the plot to a Coen Brothers movie 😂
Just another great example of why we wouldn't touch that platform with a 10-foot stick.
FYI . If you put your money into several banks just remember after 3 to 5 years if there isn't enough activity in the account, the banks can close the account and hand it over to the states unclaimed assets. Then you have to deal with the state to hopefully get your money back. This happened to my father on 2 accounts he forgot he had. With my emergency cash accounts that just sit in different banks and credit unions I set up a reminder to email me twice a year to take $1 dollar out, and them I put that dollar back. This qualifies as activity. Is it necessary? Im not sure but Id rather not find out ...
Joe here. That's a very useful comment. For older relatives that would be a concern (dementia, for example). For overseas and domestic accounts I login once a month (or year) and that seems to suffice. Any account that's paying you interest should be sending tax forms which is a useful reminder to login. Great point, thank you for the comment!
I have my accounts automatically ACH between each other on a monthly basis and that qualifies as "activity". Also works great for meeting the direct deposit minimums to avoid being charged a monthly fee.
@@imzjustplayin That's quite clever, thank you for the comment!
@@imzjustplayin thats a great idea. Thank you. 👍
Was the question ever answered? I just heard a lot of words without a definite answer, did I miss it? Example: Chapter labeled "Is Schwab safe?" 4:32 to 9:12 - This is a yes or no question without a yes or no.
I have a Schwab account. If I didn't think Schwab was safe, I wouldn't have a Schwab account. We present the facts. You make your own decisions. Joe P.
@@Nanalyze Right on, I also have Schwab and really like it. Was just thinking I missed your answer somehow, but I watched it twice and didn't fine a definite yes or no so figured I missed it and thought I'd ask. Watch all of your videos BTW, great stuff. Thank you for the reply.
Yes we try not to say things like "Schwab is safe" because then when they run into financial trouble we'll hear no end of it. :) Instead, we assumed the worst and then looked at what might happen. Whatever the outcome, investors with assets under certain cutoff points (stated in the video) will be made whole. Another thing to consider that the video mentions is how societal pressures will often force government to step in and make things whole. With such a large number of accounts, Schwab represents a lot of people. Really glad to hear you watch all our videos man! Thank you! That's great to hear :) Joe P.
@@Nanalyze I agreed with the post here that questioned your video. In my opinion, you never answered the question about what happens if Schwab goes bankrupt. I thought your video title makes it sound like this is a video about the consequences for the broad market if a big brokerage firm goes under. You give good basic advice but the title was clickbait for me
@@888strummer Yes, good basic advice is what we give around here.
“Wall Street is not in the business of making you money it’s in the business of generating transactions” 12:41 . I believe this is why decentralization is so attractive.
But then the crypto trilemma rears its ugly head.
Never open or use a margin account. It will get you in financial trouble.
Someone once said that expert investors never use margin and those who aren't experts definitely shouldn't ;)
I've had margin accounts for the last 30 years and never been in trouble, not even close
@@lkd06 You can always find a man bites dog story, but they're the exception not the rule
Just recognize what a margin account is for - in and out trades and if you want to short stocks. The interest they charge is way too high to hold anything long term on margin. But I do think it's a bit nuts M1 is pushing people to leveraged accounts. That will get people in trouble.
@@jirky015 It sure will
Some a fairly successful retired couple with $2 or $3M basically needs to set up accounts with 5 to 10 different brokerages. What a challenge that would be for tax strategies, RMDs, proper diversification, amongst other issues.
Yes, it does pose some challenges around tax document gathering, required minimum distributions, taking 4% from total assets if you follow the 4% rule, etc. Aggregating your assets in a simple spreadsheet helps a lot.
I miss TD Ameritrade. They did great for me all these years. Now I see more than a few videos concerned with Schwab going bankrupt. Makes me feel like I should leave Schwab.
Instant analysts on TH-cam often spout nonsense because there is no barrier to entry these days. What formal source do you have that speculates Schwab is going bancrupt? Haven't seen this but have seen plenty of people spreading rumors.
@@Nanalyze No formal source. So far they seem solvent while making some odd changes to the banking side of their business. I don't care for them as much as TD Ameritrade. I don't see why these videos are even popping up questioning whether Schwab is going bankrupt. I don't see these videos for other brokerage firms like Fidelity or Vanguard. I definitely don't see them for other big banks like Chase. Why are they even being made? Even if wrong, it gives the "If there is smoke, there is fire" feel to Charles Schwab. If they had no problems, no one would be making videos like this one.
"Videos" aren't reliable. What is reliable is the number or morons posting clickbait junk to get attention. I haven't seen any legitimate concerns being raised about the health of Schwab's business but we'll always be keeping an eye out for that. Joe P.
@@Nanalyze I haven't either. I looked at Schwab's fundamentals and they seemed solvent. I tell you, you do hate seeing a brokerage you use even being talked about in the same breath as bankruptcy after you watched the 2008 burn down. Doesn't feel great at all.
That's true. We'll keep an eye on this for sure. Joe P.
they wont even disclose why their system was down for 2.5 hours this week . Blaming it on a unknown vendor - how convenient.
been with them for many years - no longer
Did you notice how all the other brokers were also down at the same time? This was covered in an earlier comment.
@@Nanalyze vanguard and fidelity had same issue, but no one will say what it was. Maybe a request from the fed ??. Just saying
@@wondercharlie-thesupercat3763 Surprised that nothing formal has been said about why this happened
@@Nanalyze other companies have issues to . I tried opening an account with chase this week . Talked with 3 workers at account service center and they could not get an account created for me. They tell me to go to branch to resolve. Sad times in brokerage times
@@wondercharlie-thesupercat3763 I heard traders say that if you had an advisor account you could log in and place trades no problem
I have accounts at the 3 top brokerages. Schwab was my client in the 80s when they had 300 employees. I met chuck, that’s what the company called him. What I don’t like about Schwab. They have been making money sweeping accounts cash every night and make money. If you want the current 5 % on cash these days you have to direct money into an account. The other 2, when I have a settled account it just sits in an account that makes the current 5%.
Good old Chuck ;) Yes, would be nice if Schwab paid 5% automagically on idle cash.
I’ve talked with several investment advisors and I still don’t use one. I just use my Roth and 401k and I buy bonds. I can’t get I’ve the fees, and paying them to lose money. I want to use a investment advisor, but I just don’t know.
The three fund portfolio approach is extremely simple and effective for those who understandably don't want to navigate the financial advisor minefield: th-cam.com/video/1LYR3hD8VFA/w-d-xo.html
Maybe the M in M1 stands for ‘margin’!😂
You might be right about that.
I'm currently thinking about opening a new account and can't decide between a high fee legacy platform and one of the low fee mobile first platforms. The low fee platforms really lend themselves to my approach when I'm investing small amounts every month.
All platforms these days are low-fee. I don't know of any that charge for trades anymore. Joe P.
Schwab's Think or Swim trading site is very good. Easy to use...Reliable...
I use Vanguard for my Roth, Fidelity for my taxable account and HSA, and Schwab for research.
Makes sense to diversify across providers
Charles Schwab is not going bankrupt as the clickbait beckons. This company has over 11 trillion under management including some of my assets. Now all these other online only entities, I would worry about them a smidge.
To be fair, the title didn't say they were going bankrupt. ;) Agree with you.
Fidelity is larger than Schwab; the largest one out there; and is in much better shape financially than Schwab and most of the others
@@888strummer Fidelity is a privately held company so how can we tell they're better off financially?
@@Nanalyze You're right there is no way of knowing for sure, but they're the largest brokerage in the world and there's never been a negative story about Fidelity having any financical problems. I guess I assume they're fine, but who knows Anyway; maybe you could do a follow up video sometime and actually explain what would happen if Schwab or a Fidelity goes bust; both to their clients and to the financial markets. Would they be another Lehman or would it need to be a BOA or bigger?
@@888strummer Trying to anticipate the effects of a large brokerage failure is rather pointless because the financial industry is quite complex. This video looked at failure from the perspective of clients and beyond that would be quite speculative. The interest is noted though.
Thank you for the book recommendation, l enjoyed all the books you have recommended in previous videos. Looking forward to more
Hey that's great to hear! To be honest I haven't read the book, just pulled some quotes from it. I suspect it will be good though and fully intent to read it. Joe P.
This was some genuinely useful information.
That's what we like to hear :)
Smashed the like button at dual master 💪 good honest content here
Cheers for the sub! That supports our work.
I've had an M1 account for over three years now. No fees, zero problems, 5% APR on cash accounts. I've had another account in TD Ameritrade, which was bought by Schwab. Not only did Schwab liquidate all my assets during the transfer (which is a taxable event), but I've had to call them multiple times, email them, and upload documents to get my money out. This whole process took over three weeks. Fidelity (much better than Schwab, IMHO) offers the same pie/percentage portfolio option as M1 but for a substantial monthly fee. Finally, M1 offers margin as a sort of a loan for unexpected expenses (instead of selling your positions). It's not the best idea, I agree, but it's better than what most banks will offer.
Things are always working well until they're not. Systemic risk has a habit of blindsiding people. It's hard to see why offering margin to everyone is a good idea.
Very informative. Thank you!
That's what we love to hear, thank you!
While the book "Fooled by Randomness" was a long and arduous read/listen, it speaks of some of the same truths you profess! Thanks for your excellent information and commentaries!
You're most welcome!
I have Vanguard I’m happy
We absolutely love their low-fee products
Great and informative video thanks!
Great to hear, thank you!
Schwab is an independently audited publicly traded corporation, is Fidelity?
Fidelity Investments is a privately held company
Thumbs up for "crapto"
The amount of scams is measured in billions - annually - and an entire company (Chainalysis) has been created around reporting on the illicit activities that happen in the crypto world. Until the trilemma problem gets solved the entire space needs to be treated with extreme caution. The whole "democratizing access to wealth" spiel was a dead giveaway that anything but that is happening in reality. Many don't like when we say that but it's the truth. Joe P.
Very interesting perspective. Thanks for sharing.
Very glad you found this useful!
SIPC insurance is fundamentally sound
Let's hope so
It all comes down to whether a person is an investor or a trader and the size of their portfolio. If someone wants to invest under 50K, then M1 is a perfectly good choice. Zero fees and limited trade windows may be helpful remedies for overreacting to every tick or supposed "market crash." If someone has over 1M, Fidelity is a better choice for your peace of mind. IMO, Robinhood (simple, intuitive, and lacking in more advanced tools) is more for beginner traders than investors. Finally, if you found yourself watching and reacting to the latest news daily, then perhaps a sack of gold on the remote island would be more of your thing. 🙂
Retail "traders" have their asses handed to them predictably so that leaves us with discussing investing. Robinhood pushes their customers who they "value so much" to invest in shite so that says a lot about their values. Yep, daily news is just noise. As someone once said, the stock market is just a giant distraction from the business of investing.
Oops maybe I made a mistake investing with m1 I might switch to a larger broker
Everyone needs to do their own due diligence but our approach is to avoid anything too shiny and new and stick with old dull and boring. ;)
Great video, Joe. Where is that long bridge in the background?
Glad you enjoyed the video! That bridge is in the entirely underrated Columbia River Gorge :) Joe P.
@@Nanalyze Puts on Columbia River Gorge!
@@gbibbo1977 Hopefully it never gets "discovered" else it won't be nearly as much fun :)
I really like Schwab trading platform, information and quickness of response to trades, superior to other platforms I’ve tried.
We like it too
If your gonna analyze potential bank failures then you should also do a deep dive into the solvency of the FDIC/SIPC…
That's a systemic risk that - if triggered - would have much larger repercussions than what was discussed in this video.
@@Nanalyze if the banks fail so do the FDIC/SIPC…clearly a systemic risk that should be intertwined into any discussion of bank failures imo
@@pastmyprime6330 It was. We talked about societal pressures on government to make things whole that come with being part of a group of 30 million account holders.
Robinhood is no Fidelity and never will. Vanguard new CEO is in Crypto and or Bitcoin now.
Until Vanguard starts dabbling it seems to be speculation. Robinhood makes their money off options and crypto so clearly they're going to push their consumer base towards asset classes that ultimately lose investors' money.
hi handsome great channel, topic and opinion thank you.
"Hi handsome" is a greeting you hear a lot when navigating the Bangkok suburbs.
Our accounts went involuntarily to Schwab when they bought Ameritrade. We hated the loss of functionality and fled to Fidelity.
There are numerous comments on this video from Ameritrade customers not liking their forced migration to Schwab
@@richarddelotto2375 I too can't figure out the shwabb thing, I haven't made a trade dine it changed . I love ameritrade. Is fidelity simular to that? Also how had was it to transfer funds?
Schwab wasn’t user friendly imo. Etrade (Morgan Stanley) seems to work best for me. I did open an account with interactive brokers but never ended up using it. Robinhood was my first “brokerage”. Transferred out of there.. New subscriber. Appreciate your style
🤜🏻🤛🏼
That's great to hear, thank you! If it works, don't fix it.
Your brokerage assets are protected under rule 15c3-3. All fully paid long securities must be under control or possession. In other words, locked up in a vault for lack of better terms. These shares cannot be lent out, this would cause a segregation violation. These firms are constantly shifted and they test for this.
Yes these firms are highly regulated, at least the large publicly traded ones
Thank you. 😎
You're very welcome
Hey Nanalyze,
Have you read about the Great Taking? That laws were changed that all assets held in brokerage can be seized to make creditors whole....
No, haven't read the book. We're basing this analysis on facts in the public domain from the horse's mouth.
*Schwab ain't going bankrupt sonnie boy*
We don't think they will, either. But it's been a topic that we've been asked about quite a bit lately. :)
How about Meet Kevin / House Hacks?
Pro tip: Never invest through brokerages that are not insured. And do not exceed the (FDIC or other) insurance limit.
This piece was largely focused on brokers/banks.
I have been learning all I can about stock investing this last month or so, and I keep coming back to the same thought. Big money wants me to give them my money and pay me back pennies called dividends. Because of a bad marriage, I'm 61 and just now putting aside to retire when I can't work anymore. I thought stocks were the answer. But , as an example, if I have 10K to invest now, big money will give me about $100 a month back. Sorry but I don't see the point. What am I missing?
Sorry I meant $100 per year not month
You need money to make money. At your age you don't have much time left which means you'll have to count on social security.
What if you are holding Treasuries? Those should be exempt from creditor claims?
Each of the institutions describes what they do or don't cover. Treasuries are probably covered but you should check with the source.
Nice picture of the Hood River bridge
Good eye!
Brokerage failure shouldn't be a problem unless they Corzine (steal) your money
Government not making things whole - or even just taking things - is a systemic risk that can't be hedged aside from international diversification.
I was with Schwab for less than a year in '22. For active traders their platform is painful to use. I spent many hours on the phone with the children they have in customer service. NO MORE!
You got someone on the phone in customer service? Unheard of these days. :) Customer support is quite important when you need it. That's where IB seems to lack.
And when you say "active trading" hopefully that refers to dollar-cost-averaging ;)
I trade options primarily. I make 1-10 trades per day. Schwab has several different platforms (Schwab. Com/edge/central etc) & they all perform different functions so I needed to keep several screens open at the same time & bounce around for different trades. WHY can't you pick a platform you're comfortable with and use only one? I spoke with them several times about this. Their answer was " well when we purchased this company we inherited that platform and this company got us that platform. In other words they purchased a majority of their customers and never consolidated them into their own . There was also an incident where one of my positions closed when it shouldn't have. They sent me an agreement maybe 10 pages long and reimbursed me. It was maybe 9 months of that & I had enough
Bail-Ins...😊
Bail ins or bail outs, there's only one person footing the bill here. Joe Taxpayer.
What about trading 212?
Good question. To us, that would fall into the "fintech" category that we'd steer clear of. We prefer to use publicly traded firms for brokerage accounts :)
😏-Sooo.....Because we are a data driven economy borrowing large amounts of Yen to purchase stocks, Hedge funds and digital currency is out of the question because
it would be detrimental to our fragile economy wouldn't it?
There is no free lunch investors find out yet again
Something for you to understand. Shitty little fees are irrelevant. What matters most is the trade execution. If you are buying 5,000 shares of stock, do you care more about the $7 fee or the fact that one platform acquired the stock at $10 per share and another acquired the stock at $10.10. First platform acquired those shares for $50,000. The second platform acquired the shares for $50,500. Saving $7 on stipulated fees when you paid $500 more for the stock is a bad deal. Focus on expert trade execution, not on irrelevant little fees.
Fees are a thing of the past now. The spread you're referring to is something out of the investor's control but a point worth noting.
FDIC has 4% of funds in a crash for accounts 250k sleep well
If the cow manure hits the spinning blades then societal pressures will force politicians to make things whole by printing more money ;)
Any opinion on Edward Jones?
Whether or not retail investors should use an advisor is a different convo really. Using a simple three fund approach you can pay a whole lot less in fees (described here: th-cam.com/video/1LYR3hD8VFA/w-d-xo.html ). Jones charges, what, like 1%? Then whatever products they push you towards will likely also have fees. They say that fees are the single biggest predictor of performance in the long run. Try to pay as little as possible.
@@Nanalyze thank you for your reply. What do you mean by a "3 fund approach."
@@tomasaldente2622 Explained here: th-cam.com/video/1LYR3hD8VFA/w-d-xo.html
Run away.
Speaking of charlatans , he mentioned the Motley Fool
Not impressed with the tripe they publish on a daily basis
Well we the people are the creditors that created the social security administration with our signatures for the fictitious person.
It's all a bit of a mess innit
The cash part on Schwab was interesting. If you leave up to $250K cash in your brokerage account, that falls under SIPC and not FDIC?? Hidden diversification tactic unlocked. Possibly.
That should be the case since the cash balance in brokerage is treated separately from the checking balance per their stated rules.
So under the bed then?
Probably the safest bet provided you keep it on the low down
So I've heard! Lol
💃;)
You don't own your shares the brokerage firms do. Wow what a bunch of bad info. Professor
This was covered in the piece you didn't watch there professor ;)
Study Bitcoin, self-custody
This wasn't about bitcoin but cheers for the shout out
🥳🥳✌️✌️✌️
Appreciate your support as always!
Work on delivering your message in a more concise way
That's not something I've heard before since we really keep things tight as it is. Thank you for the feedback and we'll look to continue providing a fire hose of insights as opposed to the rambling talking heads you find on many channels. Joe P.
your brokie is insolvent, then you wait minimum 1 year to solve your reimbursement. for the moment stay away from markets. go for food, cooper, silver gold, cigarettes, or whiskey.
The whiskey sounds like a solid plan
@@Nanalyze where else you have 45%
Stopped watching when you called the best performing asset in the last 15 years "Crapto". I'm 54 and will be retiring next year because of "Crapto" lol. Do some research buddy.
If you don't like it when pundits warn people about asset classes with scams measured in billions then Nanalyze probably isn't for you. Thanks for the man bites dog story but crapto has fleeced more retail investors than anything else in recent memory.
@Nanalyze just the greedy dummies. Buy, hold, and self-custody Bitcoin only, and you're golden. K bye dummy. 👋
"You're golden." Thank you for amazing advice Nostradamus. ;)
I cant say how but someone very close to be opened his business and within 1.5 years its valued half billion already . It’s easier than one might think 😂. Ofc luck to get into a good business is important
The harder you work, the luckier you get. ;) Creating a business that goes from nothing to half a billion in 1.5 years is extremely tough to do. What you don't see are all the founders who fail to even get off the ground - and there are loads. VCs vet companies for a living and they still lose money on nine out of ten startups. We have a piece coming out Tuesday that touches on this.
@@Nanalyze the worst part is that he just became a worser person with really bad attitude. Bad personality and worse to his closest. A lost soul
That really sucks. Work will do that sometimes :) Must never be too consumed.