TDAmeritrade moving our account to Schwab - No third party payments
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Ah! Thank you. Very helpful to know, John. On Sep 15, 2023, at 8:58 PM, John Rice via bivio.com <user*24380400001@bivio.com> wrote: The club can open an account with another broker with the same name but a partner in the club can not. That is why we can't transfer stock to a partner.
So if you sell stock to cover a member leaving; then all the members share in the capital gains from selling that person's shares - do I have that right? Dan NAMC Investment Club #3 Sent from my iPhone On Sep 15, 2023, at 9:11 PM, Judy Simonson via bivio.com <user*29968200001@bivio.com> wrote:
Try fidelity. It’s a nightmare to set up the account, but they are like TDAMERITRADE. You have two have all members signatures twice: once on the signup sheet and again on the bylaws. Sent from my iPhone > On Sep 15, 2023, at 5:35 PM, Dale and Kristeen Witt via bivio.com <user*34833800001@bivio.com> wrote: > > Looking for information regarding brokerage accounts. We have used TDAmeritrade for a while with good support and services. They are moving our account to Schwab. Schwab does not allow payments to be distributed to anyone other than the investment club, requiring a separate account at a bank or other financial institution in order to handle club distributions to the partners. This will not work for us. I do not want to maintain separate accounts. Any suggestions from other members that have brokerage accounts that allow distributions? Correct Dan, everyone gets their shares of capital gains and losses. John Try fidelity. It's a nightmare to set up the account, but they are like TDAMERITRADE. You have two have all members signatures twice: once on the signup sheet and again on the bylaws. I didn't think the Fidelity process was that bad. Just had to get some signatures, which was a little harder because we did it all during COVID. Carole Jansen Try fidelity. It's a nightmare to set up the account, but they are like TDAMERITRADE. You have two have all members signatures twice: once on the signup sheet and again on the bylaws. My take - Roman's point here is the key for Investment Clubs. > The club or any member needs to build a relationship with the account representative at Schwab. All investment houses will > be the same and the relationship is what makes the difference. Start with a member who has an account with Schwab and let > them be the interface. Better yet if there is a local office and the meeting is face to face. Most brokerage firm staff never encounter an Investment Club and are not familiar with how their firm handles them. Typically it's buried in a process document somewhere. Having an acct rep that can advocate for you and escalate issues through is key for getting the right answers and not wasting anyone's time. We're a (mostly) happy Fidelity user and value a member's local office account rep that help get us attention and the right process to follow when we need it. Michael Boyd, Salt Pond Investment Club -----Original Message----- From: club_cafe@bivio.com <club_cafe@bivio.com> On Behalf Of Roman via bivio.com Sent: Friday, September 15, 2023 6:12 PM To: club_cafe@bivio.com Subject: Re: [club_cafe] TDAmeritrade moving our account to Schwab - No third party payments Not sure why you experienced this. We have had our investment account with Schwab for over 20 years. I just did a partial withdrawal to a club members bank account via wire transfer with no issues and it was completed within an hour. There may be a standard wire fee which in our case was waived. The club or any member needs to build a relationship with the account representative at Schwab. All investment houses will be the same and the relationship is what makes the difference. Start with a member who has an account with Schwab and let them be the interface. Better yet if there is a local office and the meeting is face to face. Roman Sent from my iPhone On Sep 15, 2023, at 5:36 PM, Dale and Kristeen Witt via bivio.com <user*34833800001@bivio.com> wrote: Looking for information regarding brokerage accounts. We have used TDAmeritrade for a while with good support and services. They are moving our account to Schwab. Schwab does not allow payments to be distributed to anyone other than the investment club, requiring a separate account at a bank or other financial institution in order to handle club distributions to the partners. This will not work for us. I do not want to maintain separate accounts. Any suggestions from other members that have brokerage accounts that allow distributions? Roman, Was that a partial withdrawal in stock or cash? Being an investment club of ROMEO’s I have had to distribute a lot of “cash” to beneficiaries over the years. At least 3 times this year. Cash was no problem with Schwab. So the whole membership had to pay a percentage of the capital gains. Dan Cohn Treasurer NAMC investment club #3 Atlanta Sent from my iPhone > On Sep 16, 2023, at 11:48 AM, Michael Boyd via bivio.com <user*37394800001@bivio.com> wrote: > > My take - Roman's point here is the key for Investment Clubs. > >> The club or any member needs to build a relationship with the account representative at Schwab. All investment houses will >> be the same and the relationship is what makes the difference. Start with a member who has an account with Schwab and let >> them be the interface. Better yet if there is a local office and the meeting is face to face. > > Most brokerage firm staff never encounter an Investment Club and are not familiar with how their firm handles them. Typically it's buried in a process document somewhere. Having an acct rep that can advocate for you and escalate issues through is key for getting the right answers and not wasting anyone's time. > > We're a (mostly) happy Fidelity user and value a member's local office account rep that help get us attention and the right process to follow when we need it. > > Michael Boyd, Salt Pond Investment Club > > -----Original Message----- > From: club_cafe@bivio.com <club_cafe@bivio.com> On Behalf Of Roman via bivio.com > Sent: Friday, September 15, 2023 6:12 PM > To: club_cafe@bivio.com > Subject: Re: [club_cafe] TDAmeritrade moving our account to Schwab - No third party payments > > Not sure why you experienced this. We have had our investment account with Schwab for over 20 years. I just did a partial withdrawal to a club members bank account via wire transfer with no issues and it was completed within an hour. There may be a standard wire fee which in our case was waived. > > The club or any member needs to build a relationship with the account representative at Schwab. All investment houses will be the same and the relationship is what makes the difference. Start with a member who has an account with Schwab and let them be the interface. Better yet if there is a local office and the meeting is face to face. > > Roman > > > Sent from my iPhone > > On Sep 15, 2023, at 5:36 PM, Dale and Kristeen Witt via bivio.com <user*34833800001@bivio.com> wrote: > > Looking for information regarding brokerage accounts. We have used TDAmeritrade for a while with good support and services. They are moving our account to Schwab. Schwab does not allow payments to be distributed to anyone other than the investment club, requiring a separate account at a bank or other financial institution in order to handle club distributions to the partners. This will not work for us. I do not want to maintain separate accounts. Any suggestions from other members that have brokerage accounts that allow distributions? > > Hi Dan To date, we have always treated our club as a partnership with equal distribution of gains / losses without regard to taxes. Everyone is in different tax situations and as such, we look to maximize gains in the club. All flows in or out of the club are in cash. If a member meets withdrawal terms per our agreement, we use any cash on hand and then jointly agree on what to sell to meet the cash need. Actually, it has helped us prune our portfolio when we do it. Roman Newfane Investment Partners
On Saturday, September 16, 2023 at 01:28:31 PM EDT, Dan Cohn via bivio.com <user*32501700001@bivio.com> wrote:
Roman, Was that a partial withdrawal in stock or cash? Being an investment club of ROMEO's I have had to distribute a lot of "cash" to beneficiaries over the years. At least 3 times this year. Cash was no problem with Schwab. So the whole membership had to pay a percentage of the capital gains. Dan Cohn Treasurer NAMC investment club #3 Atlanta Sent from my iPhone > On Sep 16, 2023, at 11:48 AM, Michael Boyd via bivio.com <user*37394800001@bivio.com> wrote: > > My take - Roman's point here is the key for Investment Clubs. > >> The club or any member needs to build a relationship with the account representative at Schwab. All investment houses will >> be the same and the relationship is what makes the difference. Start with a member who has an account with Schwab and let >> them be the interface. Better yet if there is a local office and the meeting is face to face. > > Most brokerage firm staff never encounter an Investment Club and are not familiar with how their firm handles them. Typically it's buried in a process document somewhere. Having an acct rep that can advocate for you and escalate issues through is key for getting the right answers and not wasting anyone's time. > > We're a (mostly) happy Fidelity user and value a member's local office account rep that help get us attention and the right process to follow when we need it. > > Michael Boyd, Salt Pond Investment Club > > -----Original Message----- > From: club_cafe@bivio.com <club_cafe@bivio.com> On Behalf Of Roman via bivio.com > Sent: Friday, September 15, 2023 6:12 PM > To: club_cafe@bivio.com > Subject: Re: [club_cafe] TDAmeritrade moving our account to Schwab - No third party payments > > Not sure why you experienced this. We have had our investment account with Schwab for over 20 years. I just did a partial withdrawal to a club members bank account via wire transfer with no issues and it was completed within an hour. There may be a standard wire fee which in our case was waived. > > The club or any member needs to build a relationship with the account representative at Schwab. All investment houses will be the same and the relationship is what makes the difference. Start with a member who has an account with Schwab and let them be the interface. Better yet if there is a local office and the meeting is face to face. > > Roman > > > Sent from my iPhone > > On Sep 15, 2023, at 5:36 PM, Dale and Kristeen Witt via bivio.com <user*34833800001@bivio.com> wrote: > > Looking for information regarding brokerage accounts. We have used TDAmeritrade for a while with good support and services. They are moving our account to Schwab. Schwab does not allow payments to be distributed to anyone other than the investment club, requiring a separate account at a bank or other financial institution in order to handle club distributions to the partners. This will not work for us. I do not want to maintain separate accounts. Any suggestions from other members that have brokerage accounts that allow distributions? > > I have been following the discussion about the inability to transfer stock to departing partners with a Schwab brokerage account. Having lived through much higher tax rates where deferring taxes was the holy grail, I can only say that paying taxes (especially at the current low rates) as you go is not a bad idea. Having a higher basis at time of withdrawal, especially if the resulting income is going to be incremental income on top of pensions, IRA RMDs, Social Security, and investment income generated from that fat portfolio created following BI principles; and subject the recipient to a higher tax bracket (with potentially higher rates after 2025), and increased Medicare premiums, makes transferring cash to a departing partner a good option. Partners are paying taxes already derived from the partnership's interest, dividends, and capital gains from normal selling activities. Paying the additional amount generated by the sale of securities to cash out a partner should not be a big deal. Or use the occasion of the partner's departure to have the remaining partners make additional capital contributions, or recruit new members to make capital contributions thus generating sufficient cash to satisfy the departing partner without having to sell anything. Jack Ranby, Treasurer, Grants Partners Just a word after Jack's astute observations about taxes and timing. I was treasurer of an old club with many older members who had no need for a cash distribution. When the club dissolved a couple of years ago (and before that when members resigned), our club took advantage of the opportunity to distribute stock so members could time their own recognition of capital gain or utilize the step-up in basis rule upon death--so long as the rule remains in effect. No one intended to sell the shares she received. We distributed a portfolio of ~$865,000 to 15 partners with only one (who was a 1-year member with a valuation of $1,500 and at her choice) incurring a capital gain as the result of the dissolution currently. -----Original Message----- From: club_cafe@bivio.com <club_cafe@bivio.com> On Behalf Of John W Ranby Trustee PGM Cariboo Trust via bivio.com Sent: Monday, September 18, 2023 8:24 PM To: club_cafe@bivio.com Subject: [club_cafe] Re: TDAmeritrade moving our account to Schwab - No third party payments I have been following the discussion about the inability to transfer stock to departing partners with a Schwab brokerage account. Having lived through much higher tax rates where deferring taxes was the holy grail, I can only say that paying taxes (especially at the current low rates) as you go is not a bad idea. Having a higher basis at time of withdrawal, especially if the resulting income is going to be incremental income on top of pensions, IRA RMDs, Social Security, and investment income generated from that fat portfolio created following BI principles; and subject the recipient to a higher tax bracket (with potentially higher rates after 2025), and increased Medicare premiums, makes transferring cash to a departing partner a good option. Partners are paying taxes already derived from the partnership's interest, dividends, and capital gains from normal selling activities. Paying the additional amount generated by the sale of securities to cash out a partner should not be a big deal. Or use the occasion of the partner's departure to have the remaining partners make additional capital contributions, or recruit new members to make capital contributions thus generating sufficient cash to satisfy the departing partner without having to sell anything. Jack Ranby, Treasurer, Grants Partners . |
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