Charles Schwab
I listen to you each Wednesday on John Williams radio show, which I look forward to as you explain topics so clear. A little background my wife and I are 87 and have accumulated savings over the years. My question – what can you tell me about Charles Schwab. The reason I am asking is we have about 2700 shares of ETN stock at TD Ameritrade, which we’ve owned for over 20 yrs.
TD Ameritrade has been aquired by Schwab so our ETN stoc shares will be transfered to Schwab
September 1st. (they mailed me a Account Agreement and Disclosure manual that I have read but don’t fully understand all the restrictions and cost)
We also have a significance portfolio (stocks & Mutual Funds) at Fidelity Investments. I am thinking maybe I should transfer our ETN stock to Fidelity as I can do it without any transfer fee before September 1st. I am happy with the service I get with Fidelity, but wondering about having having so much of our assits at Fidelity.
We do not have any plans to sell our ETN stock and will pass it on to our two sons so they can have the stepped up value at our death.
What is your experiance and what do you know about Schwab? Do you know of any advantage or disadvantage of leaving it at Schwab vs moving it to Fidelity? Really appreciate any comments or insight you can share with me.
Hope you will continue on the John Williams show for years to come. GREAT HOUR!
Thank you,
Terry Says
Thanks for your kind words. Schwab is a great company — on a par with Fidelity. In my mind, there is no difference. And I’m not worried about either of them in a financial stability sense.
Are the shares formerly of TD Ameritrade held in the exact same name at Fidelity? If so, it might make sense to transfer to keep everything in one place. I’m assuming the shares are not held inside a tax-account, such as an IRA. But more likely held in a joint name in an after-tax account.
One more thing — and you didn’t ask, but I’m going to volunteer! When was the last time you updated your will/estate plan. Please listen to this short video.
https://www.terrysavage.com/wp-content/uploads/2022/10/Terry-Talks-Wills-Trusts-Estate-Planning.mp4
The smart thing would be to create a Revocable Living Trust, and change the name of the account to your Trust. There is no tax implication and it’s in your social security number, doesn’t impact cost basis or ultimate valuation on death. Just makes it easier for your successor trustee to take over if either of you becomes incapacitated before death. Watch the video!!
