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Old 04-30-2016, 11:45 AM   #21
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- my sister is in the camp of wanting hand holding, wanting a managed portfolio, etc...
That seems to be the clue. Schwab certainly offers portfolio managing services (hand holding) and charges for them. But you can also be a complete DIYer. AFAIK, you can open a Schwab account, buy a TSM or S&P 500 index fund and maintain the account paying no more than you would at Vanguard or Fidelity. You do need to not buy other available services to keep the cost equivalent to Vanguard. That is, keep it apples to apples.


I stick with Schwab because DW would require handholding should I predecease her. Our relationship with the Schwab FA and the local office give me a little peace of mind that she could carry on (I've done a folder of instructions) with little effort and without fear of a shark attack. In the meantime, I'm able to use Schwab as a low cost DIY brokerage.
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But.. the couple hundred our advisor earns off of me - I see that it's worth her while (and part of her job) to call me every 3-6 months. LOL.
As I mentioned in a post above, your advisor doesn't actually earn compensation "off you." The amount in your account, the services you choose and your activity level go into a formula that determines part of their compensation but that amount isn't deducted from your account. It's a payroll expense just like the other brokerage houses.
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Old 05-01-2016, 10:20 AM   #22
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As I mentioned in a post above, your advisor doesn't actually earn compensation "off you." The amount in your account, the services you choose and your activity level go into a formula that determines part of their compensation but that amount isn't deducted from your account. It's a payroll expense just like the other brokerage houses.
I think we all understand that "earns off of me" is shorthand for "earns as a result of being the Schwab employee to whom my accounts, which hold mostly index fund, are assigned."
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Old 05-01-2016, 10:26 AM   #23
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Schwab investments by default are not assigned to an advisor, and do not result in advisor fees being paid.

For example, say there is $50K of stock held. The value of the stock is what the market dictates. Dividends are reinvested or go into brokerage sweep account.
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Old 05-01-2016, 11:20 AM   #24
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Schwab investments by default are not assigned to an advisor, and do not result in advisor fees being paid.

For example, say there is $50K of stock held. The value of the stock is what the market dictates. Dividends are reinvested or go into brokerage sweep account.
I don't know about "by default," but when I log in to my Schwab accounts, there's a link at the very top, slightly to the right of center, that is labeled "My Consultant." I didn't choose the consultant. Schwab chose her, and she reached out to me. I don't pay any fees for the consultant, but I understand that she makes a bit for being assigned to my accounts. She has run some retirement calculations for me, and from time to time she invites me to a talk given by one of her colleagues.

Are you saying that you don't have a "My Consultant" link when you log in to your Schwab accounts?
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Old 05-01-2016, 11:47 AM   #25
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The "consultant" on the Schwab intro page when you sign in is simply a relationship manager. If I have a problem or a question, that person is a good point of contact and, to me, better that dealing with a 1-800 voice. The office is within blocks of where I live and I can stop in if I need something or want to make a deposit. I have had the same designated person for a number of years. Once in a while we will get invited to an event or a lunch - maybe one a year. Usually once or twice a year she will check in by email to see if we need anything. Otherwise, she doesn't bother me.
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Old 05-01-2016, 12:02 PM   #26
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I don't know about "by default," but when I log in to my Schwab accounts, there's a link at the very top, slightly to the right of center, that is labeled "My Consultant." I didn't choose the consultant. Schwab chose her, and she reached out to me. I don't pay any fees for the consultant, but I understand that she makes a bit for being assigned to my accounts. She has run some retirement calculations for me, and from time to time she invites me to a talk given by one of her colleagues.

Are you saying that you don't have a "My Consultant" link when you log in to your Schwab accounts?
I do not have a my consultant link. I opened this account at a branch. Will keep looking.
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Old 05-01-2016, 12:47 PM   #27
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The "consultant" on the Schwab intro page when you sign in is simply a relationship manager. If I have a problem or a question, that person is a good point of contact and, to me, better that dealing with a 1-800 voice.
I understand that. My Schwab person is the same way. What I'm saying is that for providing these small services, the Schwab person is making a small amount of money based on the amount in my accounts. I don't pay this money to her out of my funds. Schwab pays it as part of their cost of doing business.
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Old 05-01-2016, 01:03 PM   #28
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I do not have a my consultant link. I opened this account at a branch. Will keep looking.
Interesting. I always assumed everyone had one.

When I log in, the consultant link is in the red box shown. When I click it, it brings up her contact information.
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Old 05-01-2016, 01:22 PM   #29
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Probably has to do with the value of the account, that's fairly common. I know Fidelity and at least one more brokerage firm does that.
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Old 05-01-2016, 01:39 PM   #30
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Interesting. I always assumed everyone had one.

When I log in, the consultant link is in the red box shown. When I click it, it brings up her contact information.
Just "Contact Us" which has a flyout menu for finding local branch/consultant and other contact methods.
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Old 05-01-2016, 02:28 PM   #31
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I have used Schwab bank and brokerage since 1998 and am very happy. Along with refund of ATM fees they do not charge me the $25 fee to transfer funds to another bank within the US. This is a first step in the monthly process of transferring funds for living expenses to Switzerland, where I live, via the fantastic Transferwise facility. This perk might be related to account size...not sure...but I am not questioning it. It shows up on my statement as a debit balanced by a credit, which zeros out the fee. With respect to an assigned advisor, I had one which I never used, but lost the service when I moved out of the US. They said that they aren't allowed by law to provide financial advice to clients outside the US. The nonprofit I worked for in the States used TIAA-CREF for 403(b) retirement accounts and they also dropped my free account advisor when I moved for the same reason. Schwab really doesn't bother me with calls or offers, which is perfect for me. -BB
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Old 05-02-2016, 03:36 PM   #32
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so do I real trust Swabb's FA............... NOT at all after reading the link.. The FA was not to excited when I wanted to put my money in a Vanguard mutual fund... I feel that I might go back to Vanguard.

Financial Consultants receive more compensation if a client is invested in a Schwab-affiliated mutual fund or one of the over 4,000 third-party no-load, no-transaction-fee mutual funds available through Schwab's Mutual Fund OneSourceŽ service, compared to other third-party mutual funds for which Schwab charges a transaction fee. This is reflected in the table below based on Average Revenue Rates.

Financial Consultants receive less compensation for ETFs than mutual funds. They earn more compensation if a client is invested in a Schwab-affiliated ETF or one of the over 100 third-party no-commission ETFs available through the Schwab ETF OneSourceŽ service (see table below) compared to all other third-party ETFs.
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Old 05-02-2016, 03:50 PM   #33
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I have an account at Schwab where I keep individual stocks and individual bonds I hold. I have no mutual funds or ETFs. Other than the $8.95 per trade I pay them absolutely nothing. I contact "my consultant" only when an issue arises and he has been very helpful. I have wired money in and out of the account and the fees have been waived.

In fact we are attending (along with others) a six coarse dinner next week at a local restaurant with a wine pairing at each course paid for by Schwab. We also went to a pre-opening of the Star Wars movie in mid-December. We have not found them annoying in any way realizing they are just doing their job. All one must do is politely say "no" when they offer other services.
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Old 05-02-2016, 06:43 PM   #34
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I have wired money in and out of the account and the fees have been waived.
Schwab gives you three outgoing domestic wire transfers per quarter for free if your balance is over $100K. Incoming is free.
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Old 05-02-2016, 08:27 PM   #35
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so do I real trust Swabb's FA............... NOT at all after reading the link.. The FA was not to excited when I wanted to put my money in a Vanguard mutual fund... I feel that I might go back to Vanguard.
I feel I have the information I need to make an informed decision. Your mileage my vary.
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