Coach me: moving from Vanguard to Schwab

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BarbWire

Recycles dryer sheets
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I want to move three accounts (1 brokerage, 2 inherited IRAs) from Vanguard to Schwab, where I already have a small brokerage account. Assets to be moved are about $3.5M. In the brokerage account I hold VG ETFs and Chevron. In the IRAs I hold Wellingon and Wellesley which can be converted to cash to move without penalty if necessary. I think all of those ducks are in a row ....

An acquaintance has given me the name of their CSR at Schwab, who is a VP and has been with Schwab for 17 years. The acquaintance is also FIRE'd, has (I think) a similar net worth, and says the VP-CSR is very responsive (not my experience in the past decade with my revolving door of "dedicated Flagship representatives" at Vanguard.)

So do I reach out to the VP first and ask about moving the accounts? Should Schwab give me any enticements for moving the funds to them? Will Vanguard charge me to close the accounts (on another thread someone mentioned being charged $100/account by VG).

How should I approach this to have the smoothest experience and the best bang for my buck?
 
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With those numbers, Schwab will assign you a dedicated rep. Let them know what you intend to do and Schwab will walk you through the process.
 
I don't want a random dedicated rep -- I want the one whose name was given to me.(who understands FIRE individuals who are nomads, self-directed, and out of the USA for months at a time). Do I arrange that by contacting her first?
 
I would ask about possibly moving first. Find what incentives are out there. E-Trade has some now, they should match that.
 
BarbWire said:
I don't want a random dedicated rep -- I want the one whose name was given to me.(who understands FIRE individuals who are nomads, self-directed, and out of the USA for months at a time). Do I arrange that by contacting her first?
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Yes, contact the rep to nail down the details.

Schwab will reimburse fees you incur for moving. Need a notary for Vanguard form? Schwab will reimbure that and the account closing fee.

The brokerage you are moving will be combined into your existing brokerage, if you ask.

Inherited IRA's require more, but I'm not the person to ask.

When you use a Vanguard mutual fund, that can be moved into a brokerage (I've done that), but otherwise you ask the rep.

Vanguard mutual fund(s) in your Schwab account can be sold with no cost, but buying more of a mutual has a fee (unless they assign you some freedom with that since your accounts are sizeable.
 
Got it. I will look at the Schwab link above (thanks!) and then decide whether to phone or email the rep. I prefer email so that I have a written record of the conversation.
 
"Vanguard mutual fund(s) in your Schwab account can be sold with no cost, but buying more of a mutual has a fee (unless they assign you some freedom with that since your accounts are sizeable."

Yes, good point. I wouldn't buy more of these mutual funds (VTI, VUG, etc) but would buy the Schwab equivalent.
 
I moved from Vanguard to Schwab at the beginning of 2023. I moved a similar size set of assets. 1 taxable account, 1 traditional IRA, and 1 Roth IRA. My assets were different than yours, but I switched all my Vanguard funds to ETFs and they transferred fine. They gave me a $6000 bonus for that amount back then. Perhaps they are not being as generous today. They prorated the bonus into the various accounts. So the amount that goes in the taxable account will be taxable to you (it shows up as a dividend or interest on your 1099). The amount that goes into the IRAs is not taxable.

Step one is to contact your guy at Schwab. I do not know if you and your friend live in the same location, but it is possible that Schwab reps are geographic based and he may or may not be able to handle your account if you aren't in his geography. But you won't know until you contact him. He will likely want to speak with you in person at some point.

They made it an easy process for me. I was well aware of things as they progressed. The bonus money came in 45 days after full funding of the accounts. You need to maintain the amount invested for 1 year or they can claw back the bonus.
 
Also, just do know that Schwab is like any other company. Employees come and go. My contact has since left the company. I manage my own investments, so I don't feel the need to have a dedicated rep. I have one assigned to me, but I have never contacted him. I made it clear at the beginning of my relationship that I was going to manage my own investments. When I need help with something, I call the main Schwab phone number and they have always been able to help me as needed.

It's unclear what level of support you are expecting from your Schwab rep. They have different programs where they handle your investments or not. That is what they will want to discuss with you in person.
 
Start the process. Use Customer Service. Ask all those questions up front. If you have a Schwab branch near where you live, ask for an in person meeting to discuss your questions.

Seriously. The CSR with 17 years experience and is a VP is the branch VP. They will just delegate this function to someone to work out the details with Vangard. They will decide who is assigned to your account. It MAY/MAY NOT be the branch VP.

But, whoever they assign to your account, given the size, they will be very knowledgeable, will take the time to understand your needs, and will gladly coordinate whatever you need.
 
We have fairly serious money at Schwab, too, and have a dedicated rep. We are on a first name basis and I contact him maybe twice a year for help with some administrivia or a question. I work at the relationship because I do not want to just be a name in his book when I need help. He reciprocates. People do come and go, but I've gotten lucky with this guy and we are probably going on ten years.

Reps do get paid on assets that they bring in. It is not huge, but they do pay attention. There is also a schedule of customer incentive payments based on assets coming in.

I suggest not directly contacting the rep you've heard of. She may not be the best fit for you. I would instead suggest this: Contact the branch manager and explain what you plan to do, what your needs are, and what rep characteristics you'd like to see. Age, experience, sex, investing interests, longevity with the firm. Anything is fair game. Also bring the rep you know of into the conversation as a candidate. Then ask the branch manager to recommend two or three people. Discuss them and then set up interviews. You want someone you can "click" with. You may end up with the rep name you know, but she is not the only fish in the pond. This is not like getting married but you are looking for a long-term relationship. Investing time and effort up front is wise.

(Any rep that is assigned to you will be a VP. It is no big deal.)
 
So going to a branch and interviewing possible reps won't work. I am a nomad, and out of the country many months of the year. The rep who has been suggested is in Colorado which is not my domicile state. The folks who recommended her were indeed her local clients in Colorado for many years but they too are now nomads and domiciled a different state.

I mostly want a dedicated rep not for investing advice (but I could use some tax advice as I get nearer SSA and RMD age) but to have someone who knows that I travel a lot and can be unreachable for days at a time, and that yes, the ATM withdrawal in Sri Lanka is probably legit and not a reason to freeze my accounts. (VG "locked" my account access when I logged in from Laos--stupidly not using a VPN--and despite being Flagship Select I could not get anyone to untangle that until I returned to the US).

So the rep would need to be the person who I can contact if things go south. If they delegate administrative minutia to an underling, that's fine if it is done properly. (At Vanguard I needed administrative assistance with something about once a year. The rotating cast of poorly trained individuals at the Flagship 800 number was a nightmare).

I need to think more about how to approach this, given my inability to be "tied" to any branch office. Maybe I call her, explain my situation which is similar to her current long term clients, and see where she takes the conversation...hmmmm
 
I have two reps at Schwab. The junior rep is more administrative but very good and either answers the phone when I call or calls me back promptly. The more senior rep can place trades (the junior rep can't place trades) and is also very responsive.

If you have a "home base" of sorts in the US them go to the nearest branch and ask to speak with the branch manager and explain what you want to do. There are a lot of things that I don't like about Schwab, but their customer service is first rate.

If you don't have a home base and want to PM me, I can provide you with the contact information for my reps. They're based in Sarasota, Florida.
 
pb4uski said:
If you don't have a home base and want to PM me, I can provide you with the contact information for my reps. They're based in Sarasota, Florida.
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Thanks. I just "started a conversation" with you -- if that is not the same as PM'ing please let me know.
 
I had TD which was acquired by Schwab, Schwab is horrible in my opinion compared to TD. I am unable to trade half of the stocks in my account on my own and requires me to call them for trades. Also won't let me pre and post hour trade except for a couple hours before and after trading hours. Will be looking to go elsewhere.
 
^^^^^^^

I suppose your trading profile would potentially dictate which major company you would w*rk with. I'm fine with Vanguard but I rarely sell individual stocks and I can do that on line if I so desire. YMMV
 
I am also another TDAmeritrade customer acquired by Schwab. I am currently in the process of transferring everything to Fidelity. Accounts above 2M and Schwab did not seem to care at all. The rep was the same one I last had before the transition at Schwab. There was no offer of anything to stay (I did not ask either).
I dislike Schwab's website, account statements, etc.

There is nothing inherently wrong with Schwab, they just have a website that seems dumbed down for novice investors. So I think they have a different customer target in mind than what I am. Ironically, I assumed they were buying TDAmeritrade for their technology, but it appears they were just buying accounts.
But I do think they like the ThinkOrSwim platform TDAmeritrade had.

FYI: I was a TDAmeritrade customer from way back in 1993 when it was just called Ceres Brokerage. No website, had to call to make trades back then. I also participated in the IPO for Ameritrade.
 
Thanks to everyone for your help and suggestions. I think I now have a strategy for approaching Schwab to inquire about the possibility of moving these accounts, what rewards would be offered to me,and what services they would make available for someone who is basically a buy-and-hold index ETF investor.

I've noted that I need to ask about RMD services as I currently take an RMD from an inherited IRA and will take my own RMDs in a few years. And I need to ask about their equivalents of VGs Wellington and Wellesley funds (and see if I get the same or similar answers from different reps during phone interviews).

FYI -- I have been with VG for30+ years and like many here am frustrated with the direction it has taken in the past few years. I don't particularly like the CS website (I've have a small brokerage account there) but their customer service has been excellent the1-2x per year I call, which is important to me.

Thanks again for the coaching!
 
We have been satisfied Schwab customers for years, and some of my Ameritrade accounts were recently converted over. I liked the Ameritrade platform, but was also already familiar with the Schwab one, so the switch was minimal impact to us. We are buy & hold so we only trade when we rebalance. We have a dedicated rep but don't really use him for anything except the odd question now & then.

Quick Schwab customer service anecdote: At an airport in Mexico a few years ago, DH withdrew money from our Schwab checking via ATM on arrival and absent-mindedly walked off leaving the card inserted/logged in. The person behind us in the ATM line noticed and took a $270 withdrawal from our account. When DH realized what happened hours later, a call to Schwab had the card canceled and the money back in our account that day. I was very surprised Schwab refunded the money since it was 100% our mistake.
 
Do you lose transaction history information if you switch from VG to Schwab?
 
Echard said:
Do you lose transaction history information if you switch from VG to Schwab?
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The only account that is important for is the individual account holding ETFs, if I read the OP correctly. Cost basis should transfer over, mine did when moving MF from VGD to Schwab 10+ years ago.

The question is an important reminder to have documentation of original cost, even if the cost basis transfers.
 
Echard said:
Do you lose transaction history information if you switch from VG to Schwab?
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As noted by FlaGator and TexasProud, my understanding is that when I move my taxable account from VG to Schwab:
  • Cost basis info should transfer (I am hoping this will transfer lot-by-lot in each ETF , and not just the average cost basis for the entire ETF)
  • Transaction history will NOT transfer.
Therefore on my "to do" list for this week is to download the PDF file for cost basis (looks like that might be fairly simple on the VG website, but with the new Fisher-Price interface it might be challenging) and -- probably with a lot of cut-and-paste into a spreadsheet -- download all transactions for 2023 and 2024.

I have my "interview calls" with a couple of Schwab Customer Service advisors next week. I am working on my "script" now (questions about transfer mechanics, what will CS provide under Private Client services, what administrative support services can I get from my dedicated CSR/team, ...

...and listen for any hard-sell for Asset Management services (no!) and whether they mention the current Schwab Investor Rewards....
 
Echard said:
Do you lose transaction history information if you switch from VG to Schwab?
Click to expand...

I did not - although it might take a few weeks for the cost basis to "show up."
 
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