Need advice on moving assets to Schwab

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Topic Author
viva
Posts: 29
Joined: Sat Mar 14, 2009 3:07 pm

Need advice on moving assets to Schwab

Post by viva »

I would like to move our assets from Vanguard brokerage to Schwab. Our assets include my IRA, my wife's IRA
and our joint trust. None of my friends know or have worked with any Schwab representative in my area (Boston). I do see nearly 20 reps
in our nearby Schwab office but, I am not sure what metrics to use in selecting one to work with. Any advice is appreciated.

Also, does it make sense to move all our accounts at once or move them incrementally (account by account)?

One last question. I have both VTSAX and VTI in my IRA. I plan to sell VTSAX and purchase VTI. This being IRA, I guess
that should be a non-taxable event now. Do I need to keep track of cost-basis of VTSAX for future (10+ years) withdraws?

Thank you.

viva
ILnative
Posts: 133
Joined: Sat Mar 30, 2013 7:53 am

Re: Need advice on moving assets to Schwab

Post by ILnative »

We just moved all our non-401K assets to Schwab. I would make a phone call to them and tell them what you want to do and the level of assets you plan on moving. If it is over a certain amount total (maybe high 6 figures or 1M?) - they will assign you a rep to work with one on one. Ours helped us through the process - which was very easy. We have been very impressed with Schwab and wish we had done this years ago.
Topic Author
viva
Posts: 29
Joined: Sat Mar 14, 2009 3:07 pm

Re: Need advice on moving assets to Schwab

Post by viva »

Awesome. Thank you.
557880yvi
Posts: 193
Joined: Wed Mar 06, 2019 3:11 pm

Re: Need advice on moving assets to Schwab

Post by 557880yvi »

viva wrote: Tue Oct 12, 2021 8:58 am I would like to move our assets from Vanguard brokerage to Schwab. Our assets include my IRA, my wife's IRA
and our joint trust. None of my friends know or have worked with any Schwab representative in my area (Boston). I do see nearly 20 reps
in our nearby Schwab office but, I am not sure what metrics to use in selecting one to work with. Any advice is appreciated.

Also, does it make sense to move all our accounts at once or move them incrementally (account by account)?

One last question. I have both VTSAX and VTI in my IRA. I plan to sell VTSAX and purchase VTI. This being IRA, I guess
that should be a non-taxable event now. Do I need to keep track of cost-basis of VTSAX for future (10+ years) withdraws?

Thank you.

viva
We moved from Vanguard to Schwab a little less than 2 years ago. Expect NOTHING from reps (am also in Boston area) - their offices and roles now are only to service High Net Worth people to whom then can sell managed for a fee services. We moved our IRA's and Brokerage accounts and ran into some glitches getting things set up and moved - issues with both Vang & Schwab- asked the office for help, even went in person - we are HNW who self-manage and it was very clear that if we were not going to sign up to have them manage our money they were not there to do anything for us - here is the 1-800 phone number - call them (if you are HNW make sure you speak with the team in Indianapolis - most experienced, waste your time with a kid answering the general CS #).

One thing to be wary of - make sure you are happy with the cost basis on any non-retirement assets at Vang before moving. Whatever Vang sends Schwab, that is what they are using - Vang won't fix, Schwab won't change - it creates a major tax filing headache later even if you have the support for the correct cost basis.

Schwab also recently announced new fees for purchasing Vang funds. So sell/buy at Vang before you move. Watch every transfer, document, etc. like a hawk. Make sure to immediately re-do with Schwab's forms, any POA's, Trust designations, "trusted person", everything has to be on their own forms. Good Luck
BogleTaxPro
Posts: 180
Joined: Sat Apr 04, 2020 6:08 pm

Re: Need advice on moving assets to Schwab

Post by BogleTaxPro »

Schwab Information Thread with FAQ, Links, Tips and Q&A
viewtopic.php?f=10&t=355173&p=6157661&h ... b#p6157661
RetiredAL
Posts: 1615
Joined: Tue Jun 06, 2017 12:09 am
Location: SF Bay Area

Re: Need advice on moving assets to Schwab

Post by RetiredAL »

2-1/2 years ago, I moved my Dad's IRA's to Schwab due to the poor servicing he was getting from his bank related brokerage. I called Schwab's local small office, just 2 Agents and 2 Admins, and they me emailed me the needed Account and POA forms. I filled out the forms, made an appointment with one of the Admins who verified everything, notarized the POA paperwork, copied the recent statement, and submitted everything for us. 3-4 days later his IRA showed under my existing Schwab Logon. I was familiar with Schwab, but I felt I needed assistance with the account creation/move as it may have needed to be done via POA, but Dad improved enough to be able to go to their office to sign everything. There were two IRA accounts to be moved, we did one first in their office, the second via on-line some weeks later. The splitting was not because I was afraid of Schwab messing things up, but because of the other brokerage. That concern turned out to be a non-concern. Everything was moved in-kind, then I sold the myriad of previously managed stocks and funds to create a much simplified portfolio at Schwab.

As others have noted, make sure you agree with cost basis in the taxable and get a hard copy of that from VG before you transfer.

Basis errors you discover at tax time can be fixed on the tax forms with little fuss, just make sure you have the supporting data. I've had to fix some basis errors because Dad did not do the step-up on all accounts after Mom passed.
Last edited by RetiredAL on Tue Oct 12, 2021 11:30 am, edited 1 time in total.
drk
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Joined: Mon Jul 24, 2017 10:33 pm
Location: Overlooking Elliott Bay

Re: Need advice on moving assets to Schwab

Post by drk »

viva wrote: Tue Oct 12, 2021 8:58 am One last question. I have both VTSAX and VTI in my IRA. I plan to sell VTSAX and purchase VTI. This being IRA, I guess
that should be a non-taxable event now. Do I need to keep track of cost-basis of VTSAX for future (10+ years) withdraws?
Rather than selling and buying, call Vanguard to convert your VTSAX shares to VTI shares. This conversion is at the NAV, so you avoid extra transaction costs in the form of market fluctuations.
aristotelian
Posts: 9578
Joined: Wed Jan 11, 2017 8:05 pm

Re: Need advice on moving assets to Schwab

Post by aristotelian »

Can you clarify, do you actually need a rep? What level of service are you hoping to get? Generally investors on this site prefer to manage their own simple index fund portfolios rather than pay a professional, and it is easy to do so at Schwab.

Schwab has a "hybrid" plan that costs only $30/month. Might be worth checking out before signing up for the full service option. https://www.schwab.com/intelligent-portfolios-premium
willyd123
Posts: 256
Joined: Mon Feb 19, 2018 7:23 am

Re: Need advice on moving assets to Schwab

Post by willyd123 »

I was with Schwab for about 20 years and then I had to move my assets to the company I began working for (it was their policy) and I could not believe the contrast in terms of technology and service (Schwab was so much better). As soon as I resigned from this employer I moved my assets back to Schwab and have been extremely happy.

When I was looking for a Schwab rep (my prior one had retired) I ended up going with one who is not close geographically to me. I was a little nervous about not being able to see the rep in person but it's been two years and phone calls work just about as well. So the point is you probably don't have to have a local rep.
skeptical1
Posts: 87
Joined: Mon Dec 19, 2011 11:16 pm
Location: Sacramento

Re: Need advice on moving assets to Schwab

Post by skeptical1 »

I recently made the move to Schwab. My local Schwab Rep guided me through the process. That was not necessary, but I wanted both my wife and I to have personal contact prior to the transaction. I'm glad we did. No problems at either the VG or S ends. I did arrange for a bonus for moving our assets and an exemption for buying/selling Vanguard funds. You need to arrange for these before moving your accounts.
Exhilarate
Posts: 25
Joined: Mon Jan 02, 2017 3:53 pm

Re: Need advice on moving assets to Schwab

Post by Exhilarate »

viva wrote: Tue Oct 12, 2021 8:58 am
Also, does it make sense to move all our accounts at once or move them incrementally (account by account)?

One last question. I have both VTSAX and VTI in my IRA. I plan to sell VTSAX and purchase VTI. This being IRA, I guess
that should be a non-taxable event now. Do I need to keep track of cost-basis of VTSAX for future (10+ years) withdraws?

Thank you.

viva
Each account transfer is done separately. I'd start with one of them to test the process, then do the rest.

For VTSAX easiest path is to call Vanguard and request it be converted into VTI shares. Don't bother to sell and re-buy. After the conversion is done, call Schwab or use their site to initiate an ACAT in-kind asset transfer from your Vanguard account.

You don't need to keep track of cost basis in IRA accounts. Vanguard may transfer it to Schwab anyway, but it's informational only.
ClaycordJCA
Posts: 380
Joined: Sun Aug 09, 2015 11:19 pm
Location: SF Bay Area

Re: Need advice on moving assets to Schwab

Post by ClaycordJCA »

I am in the recess of rolling over my 401k plan to a Schwab IRA. The 401k is through another provider, but are invested through a Schwab Personal Choice Retirement Account (PCRA) option. I identified a local Schwab advisor - I wanted one with a CFP designation rather than whoever Schwab assigned me to. I emailed her inquired about a rollover and getting a financial plan done. She was able to arrange for a fee waiver on putting together the plan and put me in touch with a separate department that prepares plans for higher net worth clients.

The rollover is not as easy as it should be, primarily because of the other broker’s requirement for a medallion signature guarantee. Communications with Schwab are via email - there is a “Participant Investor Concierge” in the Denver office who is overseeing everything. Email responses have always been the same day, usually within just a matter of hours. So, I am very pleased with the customer service.
Topic Author
viva
Posts: 29
Joined: Sat Mar 14, 2009 3:07 pm

Re: Need advice on moving assets to Schwab

Post by viva »

Exhilarate wrote: Tue Oct 12, 2021 12:51 pm
viva wrote: Tue Oct 12, 2021 8:58 am
Also, does it make sense to move all our accounts at once or move them incrementally (account by account)?

One last question. I have both VTSAX and VTI in my IRA. I plan to sell VTSAX and purchase VTI. This being IRA, I guess
that should be a non-taxable event now. Do I need to keep track of cost-basis of VTSAX for future (10+ years) withdraws?

Thank you.

viva
Each account transfer is done separately. I'd start with one of them to test the process, then do the rest.

For VTSAX easiest path is to call Vanguard and request it be converted into VTI shares. Don't bother to sell and re-buy. After the conversion is done, call Schwab or use their site to initiate an ACAT in-kind asset transfer from your Vanguard account.

You don't need to keep track of cost basis in IRA accounts. Vanguard may transfer it to Schwab anyway, but it's informational only.
Makes sense. Thank you.
Topic Author
viva
Posts: 29
Joined: Sat Mar 14, 2009 3:07 pm

Re: Need advice on moving assets to Schwab

Post by viva »

ClaycordJCA wrote: Tue Oct 12, 2021 1:11 pm I am in the recess of rolling over my 401k plan to a Schwab IRA. The 401k is through another provider, but are invested through a Schwab Personal Choice Retirement Account (PCRA) option. I identified a local Schwab advisor - I wanted one with a CFP designation rather than whoever Schwab assigned me to. I emailed her inquired about a rollover and getting a financial plan done. She was able to arrange for a fee waiver on putting together the plan and put me in touch with a separate department that prepares plans for higher net worth clients.

The rollover is not as easy as it should be, primarily because of the other broker’s requirement for a medallion signature guarantee. Communications with Schwab are via email - there is a “Participant Investor Concierge” in the Denver office who is overseeing everything. Email responses have always been the same day, usually within just a matter of hours. So, I am very pleased with the customer service.
We have a local Schwab office. Hopefully, that will cut down my time on phones. Yes, I'll seek someone qualified to deal with my switch. Thank you.
nalor511
Posts: 1908
Joined: Mon Jul 27, 2015 1:00 am

Re: Need advice on moving assets to Schwab

Post by nalor511 »

I hate phone calls. Open a basic Schwab account and secure email them the details of what you want moved over ($amounts, account types) and how much you want them to match a competitor transfer bonus. They will connect you with a local advisor, and they will take care of it, tell you when to open the accounts, code the bonuses, and you can either have them start the transfers or you can put them in on the website (I did it myself). I told mine I don't do phone, and they didn't bother me about it. If you don't have them match transfer bonuses, that's a couple thousand at least you're leaving on the table. Best
Topic Author
viva
Posts: 29
Joined: Sat Mar 14, 2009 3:07 pm

Re: Need advice on moving assets to Schwab

Post by viva »

Thank you all for your advice. I plan to reach out to move to Vanguard and convert VTSAX to VTI first. Then I'll start the migration of accounts incrementally.

Thanks again.

viva
Topic Author
viva
Posts: 29
Joined: Sat Mar 14, 2009 3:07 pm

Re: Need advice on moving assets to Schwab

Post by viva »

aristotelian wrote: Tue Oct 12, 2021 12:14 pm Can you clarify, do you actually need a rep? What level of service are you hoping to get? Generally investors on this site prefer to manage their own simple index fund portfolios rather than pay a professional, and it is easy to do so at Schwab.

Schwab has a "hybrid" plan that costs only $30/month. Might be worth checking out before signing up for the full service option. https://www.schwab.com/intelligent-portfolios-premium
I do plan to self-manage my accounts after initial set up is complete. I would like to make sure Schwab does the right thing with cost basis, Trust details when I switch accounts. I feel having a human being as a guide better than trying to do it myself. Especially, with trusts I had terrible time dealing with Vanguard.
namajones
Posts: 714
Joined: Sat Aug 08, 2020 12:41 pm

Re: Need advice on moving assets to Schwab

Post by namajones »

Yikes!

"Starting on Nov. 1, the cost for retail investors to buy Vanguard, Fidelity, and Dodge & Cox funds at the broker will rise from $49.95 to $74.95—a 50% increase. Similarly, at TD Ameritrade, which Schwab acquired in October 2020, prices for the same fund families will rise from $49.99 to $74.95 on Oct. 1."

https://www.barrons.com/articles/schwab ... 1631785500

Why are you moving from vanguard to schwab?

Better find out whether they also charge a fee to sell the Vanguard funds.
nalor511
Posts: 1908
Joined: Mon Jul 27, 2015 1:00 am

Re: Need advice on moving assets to Schwab

Post by nalor511 »

namajones wrote: Wed Oct 13, 2021 5:12 pm Yikes!

"Starting on Nov. 1, the cost for retail investors to buy Vanguard, Fidelity, and Dodge & Cox funds at the broker will rise from $49.95 to $74.95—a 50% increase. Similarly, at TD Ameritrade, which Schwab acquired in October 2020, prices for the same fund families will rise from $49.99 to $74.95 on Oct. 1."

https://www.barrons.com/articles/schwab ... 1631785500

Why are you moving from vanguard to schwab?

Better find out whether they also charge a fee to sell the Vanguard funds.
You are panicking for nothing, there is no fee for Vanguard ETFs and no fee to sell Vanguard Funds either. Schwab will also put a fee waiver on your account if you ask. And give you a bonus for transferring to them. Vanguard will do no such thing
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