Originally Posted by itsanne (Post 2256091)

I have just been transferred to Schwab from TD Ameritrade as of September 1st. So, no experience with them yet. I will keep roughly 50/50 between them and Fidelity. No institution is big enough not to fail as we have seen in the past.

Originally Posted by spinner1001 (Post 2256046)

Objectively, the probability of Schwab, a large NYSE listed firm, failing to make its investment account holders whole is very remote.

First, in the hierarchy of who suffers losses, stockholders loose first. Investment account holders like you loose only after stockholders.

Second, practically speaking, the U.S. government and Federal Reserve would not let the account holders loose for policy reasons because Schwab’s failure would cause a global financial crisis like we have never seen.

Third, Schwab has about $512 billion in assets as of June 30, 2023 (latest data available) and the market value of its common stock today is about $110 billion. Of the $512 billion in assets, $73 billion is cash and equivalents and $295 billion are in investments. Those investments would need to fall in value by roughly 1/3 (very unlikely) to take out the stockholders first and then get to account holders.

Psychologically, if you feel much better diversifying your assets across multiple financial institutions, then do it. If you can’t sleep at night and excessively worry over having your investments in one place, diversify.

Originally Posted by Caymus (Post 2256122)

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.

Originally Posted by manaboutown (Post 2255821)

Recently I picked up a book by Charles Schwab, 'Invested'.

To say it was an eye opener is an understatement. It starts with why and how he got into discount brokerage as one of its pioneers. It then goes on to report the ups, downs and very scary times his company went through. I had no idea!

I know many people, particularly those who trade a lot, use Schwab. Although I have kept a small account at Schwab for years I rarely used it. Then last year and earlier this year I sold a couple commercial real estate properties and deposited the proceeds into Schwab, primarily because I wanted to put it into T-bills. Schwab allows a retail investor to buy and sell them whereas the other two brokerages where I have historically kept most of my securities do not.

Then, surprise, surprise, I started getting phone calls from a Schwab 'Advisor' which I ignored for a time. Eventually I returned a call just to let him know I existed. When he discovered I was not a newbie and had other accounts he urged, just short of insisted, I transfer them to Schwab. I declined and told him I had a pretty good memory and remember Lehman Bros. and others which he seemed to grasp. I thereafter discovered Schwab at that time held some long term treasuries which were destined to go down as interest were rising so I still feel a little skittish about it all.

Anyway after reading this book to sleep at night I feel I need to continue to keep my securities distributed among several wirehouses and wonder if others feel the same.

Originally Posted by retiredguy123 (Post 2256124)

It is a good idea to convert the 401K to an IRA. That is the first thing I did when I retired. Lower fees and more control and flexibility.

Originally Posted by manaboutown (Post 2256203)

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.