Coach me: moving from Vanguard to Schwab

[Texas Proud]

My lot information did transfer over in my IRA.... IOW, I have a history of when they were bought but no cost basis with them..

 

[indiajust]

Other than the high minimum Thomas partners and Windhaven accounts, I have used almost every schwab service and product since the mid 90's. I have always had excellent service, both local office and remote, plus individual product line support office. The TD/Schwab merger has improved website and offerings, all things technology work better than ever. The turnover was the downside.

Schwab has more remote work and international service than VG so I suspect this will be an improvement. Big customer base in japan/parts of SEA.

I use their Direct Indexing accounts for my anchor positions in taxable accounts, after tax performance optimization. They have a personalized Robo ETF account as well which serves has downside minimization.

I came for their low cost structure, stayed for the service, migrated into robo traded funds for tax efficiency. Dozens of rollovers without a hitch.

I still trade individual stocks, but without the detail focus of thinkorswim. There may be some truth to novice investor focus comment. My trades follow motley fool mostly, not fundamentals or patterns.

 

[youbet]

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.

ThinkOrSwim is available on Schwab.

 

[youbet]

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.

Can you give some detail regarding the types of stocks you can’t trade without calling in?

 

[teej1985]

I use their Direct Indexing accounts for my anchor positions in taxable accounts, after tax performance optimization. They have a personalized Robo ETF account as well which serves has downside minimization.

What's your experience with the direct indexing? Has it proven to be beneficial above it's costs? Isn't it like 60bps?

 

[Texas Proud]

Well, I was just looking at my account and the cost basis of my wife's account moved from Vanguard to Schwab...

Maybe mine did not move as some was bought a few decades ago...

Well, looking further... it is the MFs that do not have cost basis... my ETF does have it...

 

[indiajust]

What's your experience with the direct indexing? Has it proven to be beneficial above it's costs? Isn't it like 60bps?

Works like a charm. I did the SCHK account version, considering opening one for MCSI EAFE also. It has outperformed SCHK itself. Not only does the tax loss harvesting pay for itself, Schwab optimizes across all your accounts, not just the Direct Index account. After a flurry of early trades, I see one or two shuffles a month. It all integrates with quicken so I have full personal documentation. The usual pdf statements are longer, but its all automated.

I remain convinced that this account is a great anchor for mid/large cap US momentum/growth as cheap as possible.

 

[indiajust]

As a result of this success, I am migrating my taxable brokerage positions into the index. I am keeping my eclectic bets and letting the robo do anything that looks indexy.
If I do the MSCI EAFE account, I plan to migrate my international picks into that account.
I would end up with a smaller brokerage account of oddballs and eccentric bets, with all the mainstream stuff taken care of by the robos.

 

[indiajust]

The Schwab Intelligent Portfolio robo is better for nervous folks. It has half the volatility of SPX. But that applies to the upside as well as down. Super cheap since it is all ETF, just a tiny bit of cash drag. This one works for an IRA too. The Direct Index is pointless in an IRA.