Schwab doesn't support automated, recurring sales of SWVXX?!

[COcheesehead]

I agree with this and will look at changing as I age. But SWVXX has a current yield in excess of 5.2%, so there's that.

Fidelity has similar options.

 

[tulak]

Fidelity has similar options.

As does Vanguard. And to their credit, their MM has a better yield than Fidelity.

I wouldn’t be surprised if Schwab starts cutting costs elsewhere, like Vanguard has with customer service. I’m waiting to see what Fidelity does. It’s a tough business.

 

[COcheesehead]

As does Vanguard. And to their credit, their MM has a better yield than Fidelity.

I wouldn’t be surprised if Schwab starts cutting costs elsewhere, like Vanguard has with customer service. I’m waiting to see what Fidelity does. It’s a tough business.

Fidelity has 31 different money markets - one to fit almost everyone.

 

[Texas Proud]

Don't know if this will be helpful or not. Go to the Investment Income page that shows the monthly income. On the right hand side of the table is a few options, one of which is export as a .csv file. If you choose that you can download data for 2022, 2023 and for the next 12 months. It has the date, which account, security description, amount, type, symbol, and weather is received or estimated.

Not a calendar, but gives you the information.

Yes!! Much better than me trying to calculate myself... not ideal but better than I had...


Now just have to see how often I want this and if I remember...

 

[pb4uski]

I'm a Schwab customer. All in there other than Fido for HSAs. I also have an online savings account at Discover Bank, currently 4.3%. I have a monthly "paycheck" transfer for Discover to our local credit union checking account. I usually replenish the Discover Bank account to a year of transfers and $25k emergency fund in December each year. This sidesteps the problem the OP is having, albeit at a very minor cost.

The Discover savings account is the "gatekeeper"... all transfers to or from myvarious investment accounts and our spending accounts go through this account.

 

[teej1985]

Just got off the phone with Schwab, and I have to say I'm pretty flabbergasted. Turns out they don't offer a way to automatically sell a set amount of their premium money market fund (SWVXX) on a recurring, monthly basis. This seems like a very basic function that any full-featured brokerage would offer. How does Schwab think their older/retired customers should go about setting up a monthly, automated income stream to fund their spending?

If this is actually not possible, and you have to manually log into your Schwab account and click through the "sell" procedure every month like a robot, then I'll be transferring all my funds out of Schwab to a more user-friendly brokerage . It's almost beyond belief that something this basic is not possible at Schwab.

Has anyone else found this to be a major annoyance, or is it just me?

I'm sure this is by design. Fidelity and Vanguard have money market mutual funds that you can use for auto-sweeps, so perhaps they are better brokerages for those in the distribution stage rather than the accumulation stage.

Sounds like Fidelity is currently offering big bucks if you get the right person on the phone:

https://www.bogleheads.org/forum/viewtopic.php?p=7397687#p7397687

 

[jazz4cash]

I see estimated annual income by security but no by month... the cash flow stmt shows estimated income by security type but not by security...


I might be missing something or you get a better stmt than I do...

I see estimated annual income in the ‘Holdings’ section of the statement. There are two more sections in the statement…go past ‘Activity’ down to ‘Estimated Cash Flow’. All my Fido accounts have this info in the statement.

Edit: OK, Now I see what you are saying. The estimated cashflow is not itemized by security.

 

[COcheesehead]

I'm sure this is by design. Fidelity and Vanguard have money market mutual funds that you can use for auto-sweeps, so perhaps they are better brokerages for those in the distribution stage rather than the accumulation stage.

Sounds like Fidelity is currently offering big bucks if you get the right person on the phone:

https://www.bogleheads.org/forum/viewtopic.php?p=7397687#p7397687

Prime money markets, the high yielding MMs at Fidelity, are not auto sweeps. To move money into a prime money market, you must do a buy, otherwise your cash moves to a core settlement account, with good, but not superior yields. Withdrawals follow a hierarchy of core settlement fund, then money market.

 

[teej1985]

Prime money markets, the high yielding MMs at Fidelity, are not auto sweeps. To move money into a prime money market, you must do a buy, otherwise your cash moves to a core settlement account, with good, but not superior yields. Withdrawals follow a hierarchy of core settlement fund, then money market.

I mean, SPAXX is almost at 5% at the moment and that (or FZFXX) the core in the Fidelity brokerage accounts which is clearly better than Schwab's cash sweep. Even Fidelity's CMA cash sweep is over 2% IIRC. I just use FDLXX and Fidelity auto liquidates it.

 

[audreyh1]

I mean, SPAXX is almost at 5% at the moment and that (or FZFXX) the core in the Fidelity brokerage accounts which is clearly better than Schwab's cash sweep. Even Fidelity's CMA cash sweep is over 2% IIRC. I just use FDLXX and Fidelity auto liquidates it.

Same here. Currently the difference is minuscule.

 

[rayvt]

I am gong to throw in a question I am interested in now.


I saw that Schwab has an income screen that estimates how much income you will receive for the next year. It is broken down by month so IMO a good thing.


Anybody know if some other broker does this? I was checking VG and did not see it there either...

Etrade does.

 

[meleana]

Just got off the phone with Schwab, and I have to say I'm pretty flabbergasted. Turns out they don't offer a way to automatically sell a set amount of their premium money market fund (SWVXX) on a recurring, monthly basis. This seems like a very basic function that any full-featured brokerage would offer. How does Schwab think their older/retired customers should go about setting up a monthly, automated income stream to fund their spending?

If this is actually not possible, and you have to manually log into your Schwab account and click through the "sell" procedure every month like a robot, then I'll be transferring all my funds out of Schwab to a more user-friendly brokerage . It's almost beyond belief that something this basic is not possible at Schwab.

Has anyone else found this to be a major annoyance, or is it just me?

What about the bank account you want the money transferred to? Could you set up a monthly auto transfer from the Schwab account to them via your banks website?

 

[Texas Proud]

Etrade does.

Hmmmm, does it sweep money? What interest does it pay?


I was trying to find it online but there are references to very low rate and then a 'sweep' that is over 5%...


IIRC this was the broker that kept track of all my orders, the ones filled and the ones not filled..


Might have to look at them a bit...

 

[RobLJ]

I'd suggest sucking it up and just transferring monthly. We have Schwab for our brokerage and Fidelity for my 403b and DW's rollover IRA. The latter would do automatic sells from DW's cash, but not my Fidelity 403b, which requires an approval from my university's HR for any withdrawal. Transferring too much to a rollover from mine might jeopardize my State health benefits (can't find out how much would be a problem), so I'm just accepting "inconvenience" with my eye on the prize. I do withdrawals once a year per my and DW's account, so it isn't much of an inconvenience.

It is what it is. I have Schwab for the taxable brokerage purposefully, in case there is a problem with Fidelity. That's after combining DW's IRAs into Fidelity. A withdrawal/transfer from Schwab takes about 2 minutes.

 

[ERhoosier]

Personally I have no need for making automated withdrawals (from Schwab or any other broker.

But Schwab does offer automatic WDs in their "Intelligent Income" program for those who desire this 'service'. Not sure of the details or investment restrictions.

https://www.schwab.com/automated-investing/intelligent-income#footer

 

[indiajust]

I have never used a monthly sweep. I prefer to keep roughly a year in cash. That way I don't need to bother with cash except when my allocation is off. My sells and buys tend to group about twice a year, so that's when I adjust cash amount.

I use the investment income feature as a quick estimate for tax liability.

I write checks on the attached schwab bank, so I don't really have anywhere to sweep to, since everything gets paid from the bill payer software with the brokerage attached bank. It's bank/atm/investing/bill paying... all in one. I have not had a free standing bank account since the 90's.