Consolidating Cash Assets to a Single Brokerage - Fidelity or Schwab?

Yes, I believe it will be taxable as it is not a discount. So expect it to be included in your 1099.
 
PaunchyPirate said:
... I'd be moving 7 figures over 3 accounts if I transfer it all.
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With that kind of money, I would suggest that you contact the two branch managers with a description of the kind of rep you would like to work with. Young/old, male/female, investing interests, years of experience, etc. and ask to interview a couple of candidates at each shop. IMO the rep is a lot more important than the name over the door and, really, $2500 is a nice number but it is a tenth of one percent of a $2.5M portfolio. So should IMO not be a huge factor in a decision. The first test for the rep interviews is to ask them the questions in your post just now.
 
OldShooter said:
With that kind of money, I would suggest that you contact the two branch managers with a description of the kind of rep you would like to work with. Young/old, male/female, investing interests, years of experience, etc. and ask to interview a couple of candidates at each shop. IMO the rep is a lot more important than the name over the door and, really, $2500 is a nice number but it is a tenth of one percent of a $2.5M portfolio. So should IMO not be a huge factor in a decision. The first test for the rep interviews is to ask them the questions in your post just now.
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What you describe above is exactly what I plan on doing. My questions about the bonus treatment are just part of the equation. Thanks.
 
PaunchyPirate said:
Reviving this thread after a bit of dormancy.
...
Also, does anyone know if the $2500 bonus amount mentioned in this thread is still around? I'd be moving 7 figures over 3 accounts if I transfer it all.
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I've transferred several times among various brokerages and various account types but only one account at a time so I'm not sure what would apply with one promotion for transfer of several accounts. The promotions for single account transfer I've received have been deposited into the new account and if that account is an IRA (Roth or Standard) it is not taxed and doesn't count toward IRA contribution.
 
For seven figures the bonus is negotiable. Fidelity put me on the phone with a rep and we “chatted” about it before settling on a number. It is taxable, if it is a taxable account transfer.
 
I think Fidelity is more agressive in paying a bonus. I say that because of posts I've seen here. But it coulld be that Schwab will pay a similar bonus, but I don't know the answer you'll get.

If you have one or two accounts, then you pick one or the other based on the bonus.

Situtations are different. There may be other factors important to you. A change in strrategy may be upcoming for us. Spouse just opened a 403(b) at Fidelity. It now seems possible that in 2023 we might evolve from Schwab + Vanguard to Schwab + Fidelity. Fidelity offers a Vanguard institutional class funds in this 403(b) that would be appropriate. That is unexpected.
 
PaunchyPirate said:
Reviving this thread after a bit of dormancy.

I believe I've made up my mind to leave Vanguard, probably after the first of the year. But I have a couple preparation steps I can do this year. I'm researching both Schwab and Fidelity as many do.

If I'm successful in getting a bonus from either of them to switch my accounts over, is that bonus considered taxable income? Will they send me a tax form to use with my taxes? Since I manipulate my income for ACA purposes, I want to know how much it could impact my income for the year.

Also, does anyone know if the $2500 bonus amount mentioned in this thread is still around? I'd be moving 7 figures over 3 accounts if I transfer it all.
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In my experience with other brokers, the portion which goes into a taxable account is taxable. The portion which goes into tax deferred is not. That is, it follows the nature of the account involved.
 
target2019 said:
... If you have one or two accounts, then you pick one or the other based on the bonus. ...
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Really ?!!?!

At best the bonus is a few tenths of one percent of the assets the OP is planning to move. IOW it has no economic effect on him at all. Certainly there are other factors that will be more important in a relationship, despite the brokerage marketeers who hope to focus potential clients on the pittance being offered.
 
I've been with Schwab for years and overall very pleased. They just updated their "Portfolio Performance" page and it's pretty cool.
 
Here is a reason to consider keeping funds spread among more than one institution.

Found out today that my elderly in-laws were scammed recently. They got conned into giving the scammers access to their brokerage online account and away went the available cash.

With funds spread among more than one institution, scammers could not get access to all of one's funds.
 
Lewis Clark said:
Here is a reason to consider keeping funds spread among more than one institution.

Found out today that my elderly in-laws were scammed recently. They got conned into giving the scammers access to their brokerage online account and away went the available cash.

With funds spread among more than one institution, scammers could not get access to all of one's funds.
Click to expand...


Thats so awful. Can you elaborate on what exactly happened so others don't make same mistake?
 
Lewis Clark said:
Here is a reason to consider keeping funds spread among more than one institution.

Found out today that my elderly in-laws were scammed recently. They got conned into giving the scammers access to their brokerage online account and away went the available cash.

With funds spread among more than one institution, scammers could not get access to all of one's funds.
Click to expand...
+1
Sorry that happened.

Vendor, fund, or account based issues are one of the problems with consolidation.
 
FREE866 said:
Thats so awful. Can you elaborate on what exactly happened so others don't make same mistake?
Click to expand...

I don't have all the details since my in-laws were not completely lucid while relating the story.

One of them made a purchase on Amazon. There was a problem, or thought there was a problem, so they called what they thought was Amazon customer service but was actually the scammer phone number.

Scammer (posing as Amazon rep) told them there were known scams in progress (no kidding!!) and that they should call their brokerage company, where they have their credit card. One of them asked the scammer if they had the brokerage company phone number. Of course, the scammer gave them another scammer phone number.

At some point, the scammer (posing as a brokerage rep) sent them an email with a link to click on to "troubleshoot" the problem. Of course, this gave the scammers access to all of their funds at that brokerage.

The scammers then told my in-laws that the only way to protect their money was to wire their available cash at the brokerage firm to the "Federal Reserve for investigations". Of course, this had my in-laws wire money to the scammers. And once funds are sent by wire they are gone forever.

At some point, my in-laws were told not to tell anyone about this, because it might compromise the investigation.

This isn't all the details but it is all I recall from the conversation. They have reported the scam to the relevant law enforcement authorities, but little is likely to happen on that front.
 
That is so sad. I hope you'll follow up to protect them from future scams. Once targeted, they will be prime candidates for more of the same.
 
^^^^ That scam is active. “Amazon” called my 83 yo mother last week to tell her there was a problem with an item she’d purchased. They asked her questions like “Where do you bank?,” and “What is your brokerage?” It was all foreign accents that she could barely understand, so she was probably driving them equally crazy telling them to repeat things and to speak up. At some point they transferred her to a “Fraud Investigator” who suggested that she needed to apply for a new Social Security number. Finally, after an hour, she got suspicious and said she needed to loop in her son (me), at which point they hung up abruptly. She promised me she didn’t give them any details or account numbers. Scary, close call.
 
Verizon now has a “Potential Spam” caller ID flag. I set my phone to send unknown callers straight to voicemail. As of yesterday nearly all of them have this flag. I get 7-8 per day that are mostly spammers but some are scammers.
 
I have accounts in Fidelity, TD Ameritrade, and Schwab but TD and Schwab will soon be merged into Schwab. I will be equally split between Fidelity and Schwab soon. I feel fine with that move.
 
Lewis Clark said:
I don't have all the details since my in-laws were not completely lucid while relating the story.

One of them made a purchase on Amazon. There was a problem, or thought there was a problem, so they called what they thought was Amazon customer service but was actually the scammer phone number.

Scammer (posing as Amazon rep) told them there were known scams in progress (no kidding!!) and that they should call their brokerage company, where they have their credit card. One of them asked the scammer if they had the brokerage company phone number. Of course, the scammer gave them another scammer phone number.

At some point, the scammer (posing as a brokerage rep) sent them an email with a link to click on to "troubleshoot" the problem. Of course, this gave the scammers access to all of their funds at that brokerage.

The scammers then told my in-laws that the only way to protect their money was to wire their available cash at the brokerage firm to the "Federal Reserve for investigations". Of course, this had my in-laws wire money to the scammers. And once funds are sent by wire they are gone forever.

At some point, my in-laws were told not to tell anyone about this, because it might compromise the investigation.

This isn't all the details but it is all I recall from the conversation. They have reported the scam to the relevant law enforcement authorities, but little is likely to happen on that front.
Click to expand...


Wow.....that is so scary. Thx for sharing this info though, hopefully it will prevent others from going down this path
 
Lewis Clark said:
I don't have all the details since my in-laws were not completely lucid while relating the story.

One of them made a purchase on Amazon. There was a problem, or thought there was a problem, so they called what they thought was Amazon customer service but was actually the scammer phone number.

Scammer (posing as Amazon rep) told them there were known scams in progress (no kidding!!) and that they should call their brokerage company, where they have their credit card. One of them asked the scammer if they had the brokerage company phone number. Of course, the scammer gave them another scammer phone number.

At some point, the scammer (posing as a brokerage rep) sent them an email with a link to click on to "troubleshoot" the problem. Of course, this gave the scammers access to all of their funds at that brokerage.

The scammers then told my in-laws that the only way to protect their money was to wire their available cash at the brokerage firm to the "Federal Reserve for investigations". Of course, this had my in-laws wire money to the scammers. And once funds are sent by wire they are gone forever.

At some point, my in-laws were told not to tell anyone about this, because it might compromise the investigation.

This isn't all the details but it is all I recall from the conversation. They have reported the scam to the relevant law enforcement authorities, but little is likely to happen on that front.
Click to expand...
I received an email from Amazon today warning of such scams
 
I think I will have to deviate from my intended single basket objective. Schwab simply does not have access to any 5% CDs over 1 year. At least not that I can see. I am not really interested or comfortable messing with uninsured investments AKA bonds.

We will be taking $0.5 out and investing $0.25 each in Navy Federal's 5% 15 Month CD. Sorry Schwab.
 
ShokWaveRider said:
I think I will have to deviate from my intended single basket objective. Schwab simply does not have access to any 5% CDs over 1 year. At least not that I can see. I am not really interested or comfortable messing with uninsured investments AKA bonds.

We will be taking $0.5 out and investing $0.25 each in Navy Federal's 5% 15 Month CD. Sorry Schwab.
Click to expand...
Have you talked to anyone at the bond desk? I don't even bother with the web interface.
 
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