FYI: (This is a follow-up article.)
The Charles Schwab Corporation announced today that it has entered into a definitive agreement to acquire assets of USAA’s Investment Management Company, including brokerage and managed portfolio accounts for $1.8B in cash. The companies have also agreed to enter into a long-term referral agreement, effective at closing of the acquisition, that would make Schwab the exclusive wealth management and brokerage provider for USAA members.
Regards,
Ted
https://www.businesswire.com/news/home/20190725005916/en/Charles-Schwab-Corporation-Acquire-Assets-USAA’s-Investment
Comments
Schwab does offers a few things:
https://moneysmylife.com/charles-schwab-promotions/
TD Ameritrade will offer me up to $600 to move my assets:
https://moneysmylife.com/td-ameritrade-promotions/
Tiered bonus for moving your account to TD:
https://screencast.com/t/Whk0Jc7YKP
Looks like I will give USAA a call and ask them what they plan on doing with the $1.8B which divided amoung 1 million USAA member accounts equates to about $1900 per member account.
A few other offers for investors:
https://moneysmylife.com/stock-broker-promotions/
Good through Sept. 5. Do I recommend Merrill? Hardly, except perhaps for IRAs used exclusively for holding ETFs and stocks (not mutual funds). Still, that's the most free cash I can find for a $200K transfer (and similarly high bonuses for lower transfer amounts).
I've read rumors that Schwab will match offers if asked. I don't know if that's true, but it's worth checking out.
Thanks, Derf
In the past, I have hesitate to move my accounts (IRA roll overs) from USAA, but I might test the waters of these incentives especially if Schwab will match other offers.
Fidelity and Schwab appear to charge to buy/sell Vanguard funds.
Presently I am spread across four companies (USAA, Vanguard, TR Price and Bruce).
Advice from others on completing a IRA Roll over would be helpful.
I believe If I did decide to roll over assets the preferred method would be to complete it as " trustee to trustee transfer" and to request assets be moved "in kind" which would preserve the status of my present holdings especially those holdings that are "closed to new investors".
That's one way of looking at it, of course. But it assumes an equal payout "spiff" for all accounts, regardless of the actual account value. So an account with 5k would receive 1.9k, and an account with 500k would also receive 1.9k.
I've no relationship with USAA, so there's no personal axe to grind here. But if I did have a 500k account there, I'd be asking some very pointed questions on all of this.
Add- In mulling this over, I'd also have to say that if I had the 5k account there I sure wouldn't be asking any questions!
But neither Schwab nor Fidelity charge you when you sell Vanguard funds, or any other funds.
If you're looking at an index fund for which there is an ETF, both Schwab and Fidelity have promotions where they'll give you oodles (up to 500?) stock/ETF trades free for two years. Currently, several Vanguard ETFs have ERs that are a basis point or two below the Admiral class shares of the same funds.
I am not a USAA investor but I would expect to have improved services from Schwab if I wish to stay with Schwab.
It looks like VWELX can be bought at E*Trade if you already have a position there. (One can probably open an account at Vanguard and then transfer it to E*Trade.)
https://www.etrade.wallst.com/v1/stocks/snapshot/snapshot.asp?symbol=VWELX&rsO=new
Is anyone familiar with Merrill Edge's platform, fee structure, customer service, customer experience, etc?
I am not a huge fan of BOA (based on past experiences) on the banking side, but I am willing to listen if things are better in the Merrill Edge side of the business.
Regards,
Ted
https://debtfreegeek.org/2017/09/22/become-usaa-member-even-arent-military/