You're right. There is a better option. Standard sweeps go to Schwab Bank with interest rate at a pittance.What kind of interest do you get on your free cash? When I called and asked I was told .1%... There should be a better option IMO...
Why not just ask at Schwab/nearest branch?... Question now is, is there anything close to VTABX that Schwab has? ...
I use a hardware token provided by Schwab, whereas wife uses text to her phone.
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What kind of interest do you get on your free cash? When I called and asked I was told .1%... There should be a better option IMO...
Why not just ask at Schwab/nearest branch?
Fido and Schwab will both assign a named rep to customers who have over a certain amount of assets with them. I have a call in to my rep to see what the number is and I'll edit this post when I get it. If you qualify, tell the person you're talking to how much you are moving to them and ask if you can get a dedicated rep assigned. If that's OK, then ask to talk t the branch manager, tell him/her what kind of rep you'd like (sex, experience, interests, etc.) and ask if you can interview a couple of candidates. IMO most of the relationship is not with the house but with the rep. Always check any rep at https://brokercheck.finra.org/.
My rep has never tried to sell me anything. He's not commissioned though he does get spiffs for customer referrals to some Schwab services. He answers questions, helps with administrivia and is generally a nice and helpful guy. IIRC broklercheck says he has about 20 years in the business.
Edit: I just logged on at Schwab and can buy VTABX, no problem.
Vanguard is a joke. Web site is way out of date and clunky. They ban the inverse and leveraged ETFs from trades. Get a real broker.
Question now is, is there anything close to VTABX that Schwab has?
This brings up another question, maybe a new thread. Would it be worth saving the commission fee and going with ETF? I have only briefly looked at the differences and long term "seems" to be the same as far as returns.
Excellent advice! I had not thought of that.Even better, if you're moving some significant funds to Schwab, don't be afraid to negotiate that commission away. I find it easiest to ask my assigned rep for a "consideration" in person at the local branch. I'm frequently successful.
Thanks! Always open to different strategies! I will keep this in mind for sure.I have the VTSAX divs and CG's paid in cash and then buy VTI with those dollars. And new money is put into VTI.
My suspicion has always been that ETFs were invented for just this reason -- to suck investors into trading. Trading is how brokers have historically made their money and conventional mutual funds with end-of-day pricing took that steak off their plate. A few hours difference in the purchase or sale price of a mutual fund is completely irrelevant to a long-term investor.... ETF give you sales/purchase value at any time of the trading day versus after the market close values for MF. ...
VT (total world stocks) is the ETF flavor of VTWAX. VTI is US only. So is VTI a strategy change or a typo?... I hold a large (to me) position of VTSAX at Schwab. Because I've had it a number of years, there is a significant LTCG, so it would be costly to sell VTSAX and buy VTI from a tax standpoint. Instead, I have the VTSAX divs and CG's paid in cash and then buy VTI with those dollars. And new money is put into VTI. ...
You're right. There is a better option. Standard sweeps go to Schwab Bank with interest rate at a pittance.
When this policy went into place, I groused to my Schwab guy and he suggested SWVXX. We've been using that ever since though I haven't done any research on alternatives. (https://www.schwab.com/public/schwa...ent/money_markets_funds/purchased_money_funds)
I don't begrudge them the policy; they have to make money somewhere. Other brokerages tout better sweep deals, but they are making their money somewhere too.
Yes. That's why I said: "Standard sweeps go to Schwab Bank with interest rate at a pittance."Thanks for this info.... but it seems that it is not a sweep account but a MM account you move money in and out of...
Vanguard and Fidelity are both good firms. Vanguard invented the index mutual fund concept and the low fee model. We’re currently working with both but will be consolidating to Vanguard later this year.After reading through some of the post, I notice vanguard funds keep coming up a lot. Are their funds preferred over another for any particular reason? My account is with USAA and they sold off to Schwab so I have an option to jump that ship if I want. I have about two weeks to do so. I'm thinking of just going with Vanguard. I have also seen their name when looking up funds on other sites. I'm not going to keep many stocks, so if they are more focused on other types of investments I think they may be a good option to look at. Anyone had experience with Schwab and Vanguard? Is there anything I would be missing from Schwab? Thanks in advance.
They have an affinity for Medallion signature guarantees (MSGs) they can’t get over.