Talk of The Villages Florida - Rentals, Entertainment & More
Talk of The Villages Florida - Rentals, Entertainment & More
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#16
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I use two brokerage firms. I would never feel comfortable having all funds in just one. Little inconvenient but you never know what could happen with a given firm. Even if it doesn't have financial issues, it could get hacked. Glad you asked this question. Looking forward to the replies.
Last edited by ridge; 09-14-2023 at 07:13 AM. Reason: Spelling |
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#17
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True, but in theory, if Vanguard or Fidelity were to go bankrupt, the mutual fund shareholders would not lose money. That is because the shareholders are the actual owners of the stocks and bonds that make up the mutual fund. Vanguard and Fidelity are just managing the assets, they don't own them. Note that this is not true for insurance companies that sell annuities.
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#18
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Why
Why? You want more than one adviser, that is if you like them that much, or tools they have. Thinking of getting tipranks - just have Fidelity but use Morningstar & yahoo finance tools more
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#19
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My financial advisor invests my funds through Schwab. I am really happy with him, but have been uncomfortable with some of the things I’ve been reading about Schwab. They’ve tied up billions in some long term investments that are now suffering. Your explanation put those $$ in perspective. |
#20
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I have Schwab accounts, but never actually open one. Decades ago, they bought the deep discounter I was using and recently they bought TD Ameritrade. I'm trying to decide if I want to convert my Fidelity 401K to an IRA for more flexibility. If I do, I may keep that with Fidelity.
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#21
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#22
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I have 3 different financial firms. I never talk to Schwab ( not a lot $ never touch it), the other two Wells Fargo and Morgan Stanley do periodically try to get me to consolidate with them. Won’t do, remember Madoff?
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#23
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There are a few reasons why you should spread your investments across different brokers. Among these are whether the broker handles/specializes in the type of securities you want to invest in, such as municipal tax free bonds or the broker who is handling your account seems to have more knowledge in the areas you invest in. Individual brokers within a firm increase their status by the size of their book - how much money they have under management.
Protection against bankruptcy or money missing from your account is insured by the SIPC - the SEC's equivalent of banking's FDIC. |
#24
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This thread is confusing and most don’t get it. The OP was talking about Schwab as a brokerage, nothing to do about the thousands of stocks/funds/etf’s you can buy from any brokerage. Some posters believe they have to join vanguard to purchase vanguard funds, or fidelity to buy fidelity funds, which is not true. Most of my holdings are vanguard index funds which I purchased thru Schwab.
When has anybody investigated how their monies/funds are protected if a disaster hit the brokerage? I did years ago, and the way Schwab has developed their way of doing business protects us investors just in case something happens to them. I’d advise people to inquire each of the brokerage houses to see which 1 in their eyes provides the most security for your money/investments. I have been with many brokerage firms because of 401k’s, ira’s, rollovers for decades and the tools at Schwab are 1 of the best for doing my investing, I don’t use anybody to invest for me, I do everything myself. Years ago, I rolled everything into multiple accounts under Schwab and couldn’t be happier. |
#25
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#26
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I reason I stay is that I read that a 401K offers more legal protection than an IRA would. I hope someone will correct me if I am wrong on that aspect. |
#27
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#28
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I like the Schwab trading platform the best among those I have used. I have been buying T-bills since interest rates have risen and used only Schwab for that. Nonetheless Schwab's book, mentioned in the OP, was an eye opener about the treacherous path the wirehouse has led since its founding. Most recently it was caught holding low interest long term treasuries when the Fed started raising its interest rate.
"Longer-Term Bond Holdings Schwab has been caught in the crossfire of the current banking crisis because of its large holdings of longer-term bonds. The concern is Schwab might be forced to sell them at a loss to try to cover client withdrawals, a scenario that led to the collapse of Silicon Valley Bank." From: Charles Schwab Shares Slump. "Pain can be a powerful teacher. In one poignant section of the book, Schwab tells the story of a perilous client, Teddy Wang, a Hong Kong real estate tycoon, whose overextended accounts nearly sank Schwab’s company during the stock market crash of 1987. At the nadir, Wang owed the firm $126 million, according to Schwab. (The two parties eventually reached a $67 million settlement.) After that trial by fire, Schwab put in place controls that would be invaluable when the dotcom and housing bubbles burst years later. “So much of what the Charles Schwab Corporation has since become I trace to what we learned from that singular event,” Schwab says." From: Charles Schwab on the Lessons He’s Learned Over a Lifetime of Investing | The WealthAdvisor
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"No one is more hated than he who speaks the truth." Plato “To argue with a person who has renounced the use of reason is like administering medicine to the dead.” Thomas Paine Last edited by manaboutown; 09-13-2023 at 08:57 AM. |
#29
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Anyone else remember Drexel Burnham Lambert? Drexel Burnham Lambert - Wikipedia
or Salomon Brothers? Salomon Brothers: History of the Investment Bank and as cited in the OP, Lehman Brothers. The Collapse of Lehman Brothers: A Case Study I personally got stung by this outfit trading commodity options. Fortunately I made it back trading commodities for a brief period and got out, having learned my lesson. Goldstein, Samuelson, Inc - Wikipedia.
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"No one is more hated than he who speaks the truth." Plato “To argue with a person who has renounced the use of reason is like administering medicine to the dead.” Thomas Paine Last edited by manaboutown; 09-13-2023 at 09:23 AM. |
#30
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The fourth organization main business was options trading. Schwab isn’t. Schwab is regulated, operated, and financed differently from those four so account-holder risks are not comparable. Schwab is a very different kind of company than those four others. |
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