|
|
Schwab Wealth Services anyone??
09-16-2021, 03:11 PM
|
#1
|
Full time employment: Posting here.
Join Date: Oct 2015
Posts: 900
|
Schwab Wealth Services anyone??
I have been a long time DIY Schwab guy and was recently contacted by assigned "Schwab Wealth Consultant" from the "Schwab Wealth Services Team". Per my conversation with my consultant, he stated this was a new program at Schwab whereby they offer a swat team of specialists (i.e. Financial Planning, Tax Specialists, Wealth/Estate Planning Specialists). He stated this was a "free" service targeting higher level account holders. I did some google searches and could not find any propaganda on Schwab's site, but my guy's comment was the program was so new the marketing materials are not online yet. I googled the individuals and they all seem to be legit. Additionally, he seemed to know all my account balances. I am moving forward with a follow up call to listen thinking there eventually will be a pitch for services, but perhaps this is Schwab's way of going on offense to try an keep higher balance clients from being picked off by the competitors?
Have any of you Schwab account holders been contacted by these folks?
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
09-16-2021, 07:27 PM
|
#2
|
Thinks s/he gets paid by the post
Join Date: Oct 2007
Location: Willamette Valley, Oregon
Posts: 1,979
|
No. At least not yet. But now you have me curious.
__________________
Dreams Worth Dreaming are Dreams Worth Planning For. I Spent a Career Planning for Early Retirement.
|
|
|
09-16-2021, 09:32 PM
|
#3
|
Recycles dryer sheets
Join Date: Aug 2013
Posts: 399
|
Following this topic.
Maybe it’s free during the rollout phase and you were lucky to be in this initiation rollout.
It does sound interesting!
|
|
|
09-17-2021, 06:19 AM
|
#4
|
Thinks s/he gets paid by the post
Join Date: Jul 2013
Posts: 1,871
|
Quote:
Originally Posted by DawgMan
He stated this was a "free" service targeting higher level account holders...
eventually will be a pitch for services
|
Sounds like you have a handle on things.
They wouldn't be doing it if it didn't make them money.
|
|
|
09-17-2021, 07:06 AM
|
#5
|
Thinks s/he gets paid by the post
Join Date: Jan 2013
Posts: 3,405
|
Like the OP, I searched and only found wealth management, a fee based service. Will be interested in what you find.
About a year ago I was contacted by one of the local Fidelity offices to make an appointment to review my investments. Clearly someone was targeting higher value unmanaged accounts. It's the office I have had problems with in the past so I declined. Nothing from the smaller office a few miles away that has provided much better service. No hungry sales people there, maybe because the demographic is a little higher end and they don't feel the need to upsell.
|
|
|
09-17-2021, 07:25 AM
|
#6
|
Full time employment: Posting here.
Join Date: Oct 2015
Posts: 900
|
My next meeting is this coming Wed with a "Sr Financial Planner" who is going to give me a Personal Financial Plan created by Money Guide Pro... a $1500 cost that is free for Wealth Service clients!! Again, somewhat skeptical as to where this may go before the big pitch shows up, but I will play along for now and report back to the group. I remember a few years ago trying Personal Capital and doing a couple of calls with their investment guys. In that case, it was clear they were making a pitch. Here, they have been upfront they are supposedly not making a pitch. The way I look at it, it never hurts to take a listen and get another set of "professional" eyes in reviewing my portfolio.
|
|
|
09-17-2021, 08:39 AM
|
#7
|
Recycles dryer sheets
Join Date: Jun 2015
Posts: 396
|
We have 3 accounts between 2 of us at Schwab, total is around $275k, I guess we are not candidates to become Wealth Service clients, would be interesting to know what is a threshold for such free services
|
|
|
09-17-2021, 09:35 AM
|
#8
|
Thinks s/he gets paid by the post
Join Date: Jul 2013
Posts: 1,871
|
Quote:
Originally Posted by Exit 2024
We have 3 accounts between 2 of us at Schwab, total is around $275k, I guess we are not candidates to become Wealth Service clients, would be interesting to know what is a threshold for such free services
|
Don't know about Schwab, but rumor has it that Fidelity's cutoff is 7 figures.
|
|
|
09-17-2021, 09:37 AM
|
#9
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2008
Location: On a hill in the Pine Barrens
Posts: 9,670
|
Quote:
Originally Posted by DawgMan
My next meeting is this coming Wed with a "Sr Financial Planner" who is going to give me a Personal Financial Plan created by Money Guide Pro... a $1500 cost that is free for Wealth Service clients!! Again, somewhat skeptical as to where this may go before the big pitch shows up, but I will play along for now and report back to the group. I remember a few years ago trying Personal Capital and doing a couple of calls with their investment guys. In that case, it was clear they were making a pitch. Here, they have been upfront they are supposedly not making a pitch. The way I look at it, it never hurts to take a listen and get another set of "professional" eyes in reviewing my portfolio.
|
Looking forward to hear your opinion after Wednesday. It would be great if a company offers something extra useful to an existing client. But I believe you'll hear about a fee for enhanced services, or something like that.
|
|
|
09-17-2021, 09:40 AM
|
#10
|
Recycles dryer sheets
Join Date: May 2010
Posts: 497
|
following and skeptical
Long time schwab diy guy here. Please post update
Thanks
__________________
You've got to ask yourself one question: Do I feel lucky? Well, do ya, punk?
Retired July '11 investments in very low cost index and mutual funds, balance once a year at best.
|
|
|
09-17-2021, 10:23 AM
|
#11
|
Thinks s/he gets paid by the post
Join Date: May 2016
Location: Mid-Atlantic
Posts: 2,643
|
Quote:
Originally Posted by mrfeh
Sounds like you have a handle on things.
They wouldn't be doing it if it didn't make them money.
|
Yes, but the "how" also matters. If they're pushing Schwab funds with higher expense ratios, that's worse than them simply having data that customer retention is much higher when customers can get fiduciary advice and research done for no additional cost. Or, a more middle ground, maybe they find their annuity sales are higher among clients with this service, so they offer it for free to everyone and it pays for itself because of those who fall for it.
__________________
-Looking to FIRE in the mid-2020s, which would be our mid-50s.
|
|
|
09-17-2021, 11:03 AM
|
#12
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2008
Location: On a hill in the Pine Barrens
Posts: 9,670
|
For reference:
Schwab S&P 500 Index Fund (SWPPX) Net Expense Ratio 0.020%
Vanguard 500 Index Fund Admiral Shares (VFIAX) Expense ratio 0.04%
Of course there are many more funds to compare...
|
|
|
09-17-2021, 01:39 PM
|
#13
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2017
Location: City
Posts: 10,308
|
Quote:
Originally Posted by Exit 2024
We have 3 accounts between 2 of us at Schwab, total is around $275k, I guess we are not candidates to become Wealth Service clients, would be interesting to know what is a threshold for such free services
|
Thresholds and names of Schwab programs have moved around over the years. Latest, per my Schwab guy when I asked him a few months ago, is $1M assets held at Schwab for "Pinnacle" level and $10M for the next step with clients "handled out of New York." We are Pinnacle; I don't remember what the top level is called. For us, Pinnacle doesn't amount to much. We have a rep assigned and he does an excellent job at administriva and any research we ask for. We're also told that our support calls are routed to a higher-capability phone center. Hard to tell about that, but we always get good service and minimal wait times.
Our guy knows we're DIY, so I doubt if he'd refer us to anything like the OP describes. Anyway, we have never heard of it.
Interestingly, I added a HELOC at USBank as a cash cushion while we are building a new second home. After seeing our balance sheet, they moved our checking account (our only relationship with them) into their "Private Wealth Management" program, which garnered one prospecting call from a woman who knew very little about investing.
__________________
Ignoramus et ignorabimus
|
|
|
09-17-2021, 03:07 PM
|
#14
|
Thinks s/he gets paid by the post
Join Date: Jan 2013
Posts: 3,405
|
Quote:
Originally Posted by OldShooter
Thresholds and names of Schwab programs have moved around over the years. Latest, per my Schwab guy when I asked him a few months ago, is $1M assets held at Schwab for "Pinnacle" level and $10M for the next step with clients "handled out of New York." We are Pinnacle; I don't remember what the top level is called. For us, Pinnacle doesn't amount to much. We have a rep assigned and he does an excellent job at administriva and any research we ask for. We're also told that our support calls are routed to a higher-capability phone center. Hard to tell about that, but we always get good service and minimal wait times.
Our guy knows we're DIY, so I doubt if he'd refer us to anything like the OP describes. Anyway, we have never heard of it.
Interestingly, I added a HELOC at USBank as a cash cushion while we are building a new second home. After seeing our balance sheet, they moved our checking account (our only relationship with them) into their "Private Wealth Management" program, which garnered one prospecting call from a woman who knew very little about investing.
|
Curious what HELOC rate and terms you were quoted at US Bank. A couple of years ago, maybe three, I started the process, but never followed through. The rate then was very favorable.
|
|
|
09-17-2021, 03:26 PM
|
#15
|
Recycles dryer sheets
Join Date: Nov 2006
Posts: 121
|
Have not recd that pitch yet. Did get the expensive dinner years ago when they tried to get us into their pricey wealth management group. Going DIY has gotten us 3X more than we ever planned for in this time period.
|
|
|
09-17-2021, 03:27 PM
|
#16
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2017
Location: City
Posts: 10,308
|
Quote:
Originally Posted by Another Reader
Curious what HELOC rate and terms you were quoted at US Bank. A couple of years ago, maybe three, I started the process, but never followed through. The rate then was very favorable.
|
Well, it was kind of a screwy deal. I had an old HELOC, unused for probably a decade, that was left over from a business deal. I asked them to freshen that one up with better rates and they ended up starting from scratch. I did not shop it because I only need this cash for a year or two during construction and I thought that using them would be the easiest. So I just took whatever came out the end of the pipe. Rate ended up at 20bps over prime, 30 year term, $250K ceiling. So currently 3.45% but I have not drawn on it yet.
__________________
Ignoramus et ignorabimus
|
|
|
09-17-2021, 04:56 PM
|
#17
|
Recycles dryer sheets
Join Date: Aug 2003
Posts: 224
|
Dawgman,
My wife and I are Schwab clients. We each have low 7 figure accounts and have an assigned Schwab rep who is local (and fantastic). OldShooter mentions service levels, I don't know anything about that and didn't ask when we began to shift away from Vanguard over a year ago. (Thanks for the info OldShooter)
I had several discussions early on with the Schwab rep and he mentioned that we had access to experts based on our asset levels. He would recommend services based on our discussions. I do hear from our rep occasionally by phone and get the occasional personal email when he comes across a topic that he knows I want to hear about. Earlier this year he set up an appointment with a Schwab tax planning expert. We had a 40 minute Zoom discussion with a tax attorney turned Schwab specialist. He stressed that the discussion and future communication (we got a 'recommendation' report) weren't in lieu of getting local tax and estate planning help. It was a fantastic discussion and the report was extremely helpful. We have some SFH and condo rental units and the discussion and report addressed those rental units in addition to the brokerage. We talked about some family wealth and estate topics based on what we told him about our goals and our teenage children.
In discussions before and after with my rep, he mentioned that the services, in small amounts, are free and that they do them frequently with clients. My Schwab rep is my go to guy for general questions and the owner of the local accounting firm that prepares my tax return is my go to guy for tax questions. These two people have been extremely helpful in my current DIY situation. We do plan to move slightly beyond DIY over the next couple of years. It was really comforting to hear that we were positioning ourselves correctly for a segue to assisted planning in the future.
There has been zero pressure for moving into managed accounts or services with fees. Although we did talk about it based on my wife not being comfortable with running investments in case of my untimely demise. I brought the topic up, not the Schwab guy.
I've been thrilled with the help.
Kind Regards,
|
|
|
09-19-2021, 09:33 PM
|
#18
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2013
Location: Limerick
Posts: 5,633
|
We have about $4M with Schwab and haven’t heard anything about this new program. Haven’t heard about anything called Pinnacle either. We were DIY for years, but now have about $1.3M in managed accounts to test them out. I’ve seen info on their Private Client program that sounds similar to the new program mentioned above, but there are fees involved. I’m interested if they have something new with no fees. Our go to guy moved to Schwab from USAA when our accounts moved, so we’ve been with him for years.
|
|
|
09-20-2021, 05:02 PM
|
#19
|
Full time employment: Posting here.
Join Date: Oct 2015
Posts: 900
|
Ok, I have a little more information from an email exchange with my assigned "QB". I will still report back after my call/meeting Wed, but here is what I am being told so far about "Wealth Services"...
"... the minimum balance for Wealth Services is $10M at Schwab. We are not part of Schwab Private Client, which is our Registered Investment Advisor arm of Schwab.
There are a lot of services available to our clients of all asset levels and stages of life. Our planning tools, research and investment capabilities and access to advisors is available to all of our clients. The type of advice and depth of planning varies by the client’s personal situation and stage of life. The Wealth Services Team specializes in helping clients who have needs that many others do not. For example, the vast majority of the clients Wealth Services work with will be impacted by some, if not all, of the tax law changes that were proposed last week. By contrast, most clients won’t be impacted by the proposed changes.
It’s not that the products and services available to Wealth Services clients is “better” rather it’s just more relevant and specialized to what they need at this level of wealth."
To be continued...
|
|
|
09-20-2021, 05:44 PM
|
#20
|
Thinks s/he gets paid by the post
Join Date: Jan 2013
Posts: 3,405
|
Quote:
Originally Posted by DawgMan
Ok, I have a little more information from an email exchange with my assigned "QB". I will still report back after my call/meeting Wed, but here is what I am being told so far about "Wealth Services"...
"... the minimum balance for Wealth Services is $10M at Schwab. We are not part of Schwab Private Client, which is our Registered Investment Advisor arm of Schwab.
There are a lot of services available to our clients of all asset levels and stages of life. Our planning tools, research and investment capabilities and access to advisors is available to all of our clients. The type of advice and depth of planning varies by the client’s personal situation and stage of life. The Wealth Services Team specializes in helping clients who have needs that many others do not. For example, the vast majority of the clients Wealth Services work with will be impacted by some, if not all, of the tax law changes that were proposed last week. By contrast, most clients won’t be impacted by the proposed changes.
It’s not that the products and services available to Wealth Services clients is “better” rather it’s just more relevant and specialized to what they need at this level of wealth."
To be continued...
|
Pretty sure Fidelity has similar services, or soon will if they don't.
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|