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Schwab move $250K for $600 bonus
Old 12-01-2012, 06:18 PM   #1
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Schwab move $250K for $600 bonus

Hi all

I am wondering if anybody took this offer by Schwab to move $250K of IRA money and get $600.

I have my IRAs in VG, but free money is always attractive.

Pros, cons?

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Old 12-01-2012, 09:10 PM   #2
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Fidelity is running a similar deal. I'll have a 401k to rollover late next year, but until then everything is where I need it.
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Old 12-01-2012, 10:09 PM   #3
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With these rollover deals, are the offers typically less (or $0) if one already has an account with the brokerage?
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Old 12-02-2012, 06:10 AM   #4
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I'll stick with Vanguard. That Schwab needs to pay money to get an account transferred doesn't set right and leads me to conclude there could be other issues to worry about.
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Old 12-02-2012, 07:34 AM   #5
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I would not do it. Too much hassle for $600, and there may be strings attached.
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Old 12-02-2012, 09:30 AM   #6
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Originally Posted by GrayHare View Post
With these rollover deals, are the offers typically less (or $0) if one already has an account with the brokerage?
The fine print on the schwab site says new or existing IRAs

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Originally Posted by MichaelB View Post
I'll stick with Vanguard. That Schwab needs to pay money to get an account transferred doesn't set right and leads me to conclude there could be other issues to worry about.
Used Schwab for many years, no problems at all, no gimmicks, no sales pitches, very pleased. Lots of places offer cash or something to open an account.

But for $600 to move 250k that I already had invested... I'd probably pass.
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Old 12-02-2012, 11:23 AM   #7
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I'll stick with Vanguard. That Schwab needs to pay money to get an account transferred doesn't set right and leads me to conclude there could be other issues to worry about.
ETrade has a similar offer effective until the end of the year. I was tempted to transfer new money from my 401K but then I will lose the quarterly dividend which will be more than $600.
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Old 12-02-2012, 12:31 PM   #8
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We took advantage of the Etrade offer this year, and a similar TD Ameritrade offer last year. Both times, we transferred shares, not cash, so didn't need to liquidate anything or miss out on any dividends. It didn't cost anything, and the hassle was all-told a couple hours. The fine print, as far as I can tell, is that if we do this again and close the Etrade account, we'll have to pay about $60 each. However, the TD Ameritrade offer paid any account closure fees, so a similar offer in the future would take care of that problem. All in all, I'd say it was well worth it for us.
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Old 12-02-2012, 09:17 PM   #9
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If you do the transfer, do your IRA investments stay invested while everything moves over? And even if they could do a transfer in-kind, I'd be worried that they would mess it up, cash out the equities and that my IRA investments would be out of the market for the month it takes to move over.
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Old 12-02-2012, 10:08 PM   #10
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In-kind xfers have always been done correctly for me, but perhaps I've been lucky. I scribble on the xfer form "IN KIND" in big letters and keep a copy. Everything stays invested during such xfers since basically they are nothing more than an electronic blip that moves each holding from one account to another.
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Old 12-02-2012, 11:06 PM   #11
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Originally Posted by wanaberetiree View Post
Hi all
I am wondering if anybody took this offer by Schwab to move $250K of IRA money and get $600.
I have my IRAs in VG, but free money is always attractive.
Pros, cons?
Not entirely free, you will get a 1099-misc for this transaction so Uncle Sam will want his cut.
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Old 12-03-2012, 07:08 AM   #12
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I'll stick with Vanguard. .......
It takes more than 0.24 basis points to bribe me. Unless you do an in-kind transfer, normal daily market movement could wipe out the $600 in the blink of an eye.
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Old 12-03-2012, 07:21 AM   #13
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It takes more than 0.24 basis points to bribe me. Unless you do an in-kind transfer, normal daily market movement could wipe out the $600 in the blink of an eye.
+1

The deal that Ing Sharebuilder ran a few months ago was a much better deal.
$250 to move $25,000 in IRA assets.

Did this for both myself and DW and the bonuses have indeed been paid.
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Old 12-03-2012, 12:57 PM   #14
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It takes more than 0.24 basis points to bribe me. Unless you do an in-kind transfer, normal daily market movement could wipe out the $600 in the blink of an eye.
In my way of thinking, why turn down .24 basis points on an in-kind transfer? It's free money.
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Old 12-03-2012, 02:11 PM   #15
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It takes more than 0.24 basis points to bribe me. Unless you do an in-kind transfer, normal daily market movement could wipe out the $600 in the blink of an eye.
(pedant on)

Actually, it's 24 basis points, which is the same as 0.24%. A basis point is usually defined as 0.01% so 0.24 basis points on $250K would be $6, or 0.0024%.

(pedant off)

Still, you are right to some degree, 0.24% is noise given the day to day machinations of the market. But it's still free money, so to speak, assuming there aren't strings attached. And I've been a satisfied Schwab customer since 1989.
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Old 12-03-2012, 04:09 PM   #16
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My bad, I dropped a couple digits.

100 bp = 1% = .01
24 bps = .0024 = $600/$250,000
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Old 12-03-2012, 04:12 PM   #17
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Here open 25 $10000 accounts get $5000.

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Old 12-03-2012, 04:18 PM   #18
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Ziggy is right a basis point is .01% or .0001.

Over the years I have taken advantage of a number of bonus. I have collected modest amount money $100 to $200, free morningstar newsletters etc. from Fidelity, Ameritrade, OptionsExpress, and gotten my Mom money from Schwab. There is a minor hassle involved, in but the hourly earning rate isn't bad.

Part of the reason for me to do so is just to check out the functionality of the other brokerage. So I can boast well I've have had accounts with lots of the major brokerages and I like Schwab the best when the topic comes up on ER
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Old 12-03-2012, 04:34 PM   #19
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Has anyone worked the 'account retention' card? A modified version of it worked for me last year and DH is getting an ipad for Christmas with the $ .
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Old 12-03-2012, 05:29 PM   #20
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Careful with in-kind transfers. I tried to transfer my Fidelity employer 401k to Vanguard and even though the funds are in Vanguard funds-Fidelity would liquidate and send cash to Vanguard to reinvest. I spoke to Vanguard several times and they checked with their legal dept- no way around it.
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