seeking advice: Schwab and Vanguard vs just Vanguard

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LearningAlot
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seeking advice: Schwab and Vanguard vs just Vanguard

Post by LearningAlot »

I currently have my IRA with Vanguard(80%) and my taxable with Schwab(20%). I've been thinking about opening a taxable account with
Vanguard and transfer my Schwab $ to Vanguard and use only one company. Benefits would be 1. a little easier administratively for me and 2. Vanguard's money market interest rate is little more than Schwabs.

Would appreciate any advice,
Thanks!
Jack FFR1846
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Re: seeking advice: Schwab and Vanguard vs just Vanguard

Post by Jack FFR1846 »

If you think it would be easier, then <shrug>, why not? If you close the Schwab account, you'll be paying an account closure fee. You could instead keep 1 share of whatever you have at Schwab and just ignore it.
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samsoes
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Re: seeking advice: Schwab and Vanguard vs just Vanguard

Post by samsoes »

If you do this, be absolutely certain of the cost basis of your taxable holdings currently at Schwab. Have paper (or pdf) backups of statements, trade confirmations, etc.

Some of the fine folks on this site have posted horror stories about Vanguard not carrying-over cost basis/lot information correctly.
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jakehefty17
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Re: seeking advice: Schwab and Vanguard vs just Vanguard

Post by jakehefty17 »

I have my taxable account at Schwab, Roth IRA at Vanguard. If you think it will be easier, move to Vanguard. It's all about convenience though so do whatever's best for that.

I like Schwab's ETF selection and it's interest checking account with reimbursed ATM fees is a very nice perk (especially where I live, as the local banks have monopolized ATMs in the area).
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ruralavalon
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Re: seeking advice: Schwab and Vanguard vs just Vanguard

Post by ruralavalon »

LearningAlot wrote: Mon Oct 01, 2018 9:41 am I currently have my IRA with Vanguard(80%) and my taxable with Schwab(20%). I've been thinking about opening a taxable account with
Vanguard and transfer my Schwab $ to Vanguard and use only one company. Benefits would be 1. a little easier administratively for me and 2. Vanguard's money market interest rate is little more than Schwabs.

Would appreciate any advice,
Thanks!
In my opinion, both are good reasons to consolidate accounts at Vanguard.

Before transferring a taxable account anywhere, always make sure you first have the cost basis information from the transferee fund firm.
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Nate79
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Re: seeking advice: Schwab and Vanguard vs just Vanguard

Post by Nate79 »

We consolidated all accounts to Schwab so that's what I would recommend.
bikechuck
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Re: seeking advice: Schwab and Vanguard vs just Vanguard

Post by bikechuck »

I would never, ever consolidate all of my assets with a single financial institution. Cyber attacks and just plain old system failures happen too frequently today. Most often these things have a way of getting sorted out but you could have a period of time without access to your funds in this situation. I feel far safer not keeping all of my eggs in a single basket.
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Kevin M
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Re: seeking advice: Schwab and Vanguard vs just Vanguard

Post by Kevin M »

As you say, Vanguard has higher rates on money market funds (due to lower expenses). Vanguard also generally has the broadest selection of lower-cost bond mutual funds. For something simple like a 3-fund portfolio, I'd say it's a pretty much a tossup.

Schwab has better pricing on individual Treasuries on secondary market, which is why I re-opened a Schwab account recently. If one sticks with buying at auction and holding to maturity, it doesn't matter.

Schwab's checking account also is nice, as already mentioned. In addition to unlimited ATM reimbursements, last I knew, they didn't charge a foreign transaction fee, so the debit/ATM card is good to get cash internationally. I probably would at least keep the Schwab account open with a small amount just for this.

Schwab's customer service has been great, and having a local office is convenient. They are hyper-vigilant on security, which I guess is good, but they actually cancelled an incoming transfer of cash, and locked my account, due to what they perceived to be suspicious activity, without reaching out to me first. I can understand locking the account, but since they put a 3-4 day hold before allowing you to transfer new cash out, I don't understand why they cancelled the transfer rather than calling me to verify it.

Kevin
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sharukh
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Re: seeking advice: Schwab and Vanguard vs just Vanguard

Post by sharukh »

bikechuck wrote: Mon Oct 01, 2018 3:01 pm I would never, ever consolidate all of my assets with a single financial institution. Cyber attacks and just plain old system failures happen too frequently today. Most often these things have a way of getting sorted out but you could have a period of time without access to your funds in this situation. I feel far safer not keeping all of my eggs in a single basket.
Same here, and infact it did happen to me. Luckily i had accounts at other institutions for me to ride it out.
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