On its website, TDAmeritrade offers accounts for both partnerships and investment clubs noting that investment clubs may be partnerships. Is there any advantage in choosing one over the other for TDAmeritrade? Our investment club is a partnership. As one of posters suggested, it may be better to register as a partnership to avoid the anti-investment club bias. Also, does anyone know whether we will need signatures of all the partners for TDAmeritrade or can we get by with just an authorized agent / general partner signature? Thanks.
On Dec 4, 2020, 11:03 PM -0500, Stuart Lange via bivio.com <user*25028600001@bivio.com>, wrote:
A "back door" to Schwab is available through TDAmeritrade. I spoke with them today and they are accepting new club accounts even though they are in the process of mergong with Schwab. The integration of the two is going to be completed sometime within the next 16 months to 3 years
Our family club uses Fidelity and it does do Account Sync with bivio. I had been with Fidelity for 20 years before starting the family club so I was very familiar with it. Free commissions and good research available. I like it a lot.
BTW, Fidelity is one of the few brokers who does HSAs (Health Spending Accounts - must have a High Deductible Health Insurance Plan).
Paul Madison
On Fri, Dec 4, 2020 at 1:47 PM Laurie Frederiksen <laurie@bivio.biz> wrote:
Our club will be transitioning to another broker (not InteractiveBrokers) and I'm wondering since Folio has a 90 day hold on half of our cash, how will that be handled? Does anyone know?
I'd recommend you ask Folio about that. I don't believe it ended up being a problem when we transitioned our club account last spring, but I don't completely remember.
Laurie Frederiksen
Invest with your friends! www.bivio.com
Mine is at TD. They want
all the partners names(signed document) and there is another
form...for authorized agents(signed by each). You have to update
the info if you change authorized person/s.
Those forms should be available on the website.
On 12/5/2020 12:10 PM, Ty Hughes via
bivio.com wrote:
On its website, TDAmeritrade offers accounts for both
partnerships and investment club.s noting that investment
clubs may be partnerships. Is
there any advantage in choosing one over the other for
TDAmeritrade? Our investment club is a partnership. As one
of posters suggested, it may be better to register as a
partnership to avoid the anti-investment club bias. Also,
does anyone know whether we will need signatures of all the
partners for TDAmeritrade or can we get by with just an
authorized agent / general partner signature? Thanks.
A "back door" to Schwab is available through
TDAmeritrade. I spoke with them today and they are
accepting new club accounts even though they are in the
process of mergong with Schwab. The integration of the two
is going to be completed sometime within the next 16 months
to 3 years
Our family club uses Fidelity
and it does do Account Sync with bivio. I
had been with Fidelity for 20 years before
starting the family club so I was very
familiar with it. Free commissions and good
research available. I like it a lot.
BTW, Fidelity is one of the few brokers
who does HSAs (Health Spending Accounts -
must have a High Deductible Health
Insurance Plan).
Paul Madison
On Fri,
Dec 4, 2020 at 1:47 PM Laurie Frederiksen
<laurie@bivio.biz>
wrote:
Our club will be
transitioning to another broker
(not InteractiveBrokers) and I'm
wondering since Folio has a 90
day hold on half of our cash,
how will that be handled? Does
anyone know?
I'd
recommend you
ask Folio about
that. I don't
believe it ended
up being a
problem when we
transitioned our
club account
last spring,
but I don't
completely
remember.
Laurie
Frederiksen
Invest with your
friends! www.bivio.com
TD Ameritrade wanted, and I assume still does, each partner's signature when TDA bought out Scottrade. About a year ago, we thought we would use our uninvested funds for checking with TDA, but again we needed the signature of every partner. Too much trouble-we might write 2-4 checks a year, which means $20 bucks a year in fees to TDA. But it was too much trouble to get everyone's signature.
Mine is at TD. They want
all the partners names(signed document) and there is another
form...for authorized agents(signed by each). You have to update
the info if you change authorized person/s.
Those forms should be available on the website.
On 12/5/2020 12:10 PM, Ty Hughes via
bivio.com wrote:
On its website, TDAmeritrade offers accounts for both
partnerships and investment club.s noting that investment
clubs may be partnerships. Is
there any advantage in choosing one over the other for
TDAmeritrade? Our investment club is a partnership. As one
of posters suggested, it may be better to register as a
partnership to avoid the anti-investment club bias. Also,
does anyone know whether we will need signatures of all the
partners for TDAmeritrade or can we get by with just an
authorized agent / general partner signature? Thanks.
A "back door" to Schwab is available through
TDAmeritrade. I spoke with them today and they are
accepting new club accounts even though they are in the
process of mergong with Schwab. The integration of the two
is going to be completed sometime within the next 16 months
to 3 years
Our family club uses Fidelity
and it does do Account Sync with bivio. I
had been with Fidelity for 20 years before
starting the family club so I was very
familiar with it. Free commissions and good
research available. I like it a lot.
BTW, Fidelity is one of the few brokers
who does HSAs (Health Spending Accounts -
must have a High Deductible Health
Insurance Plan).
Paul Madison
On Fri,
Dec 4, 2020 at 1:47 PM Laurie Frederiksen
<laurie@bivio.biz>
wrote:
Our club will be
transitioning to another broker
(not InteractiveBrokers) and I'm
wondering since Folio has a 90
day hold on half of our cash,
how will that be handled? Does
anyone know?
I'd
recommend you
ask Folio about
that. I don't
believe it ended
up being a
problem when we
transitioned our
club account
last spring,
but I don't
completely
remember.
Laurie
Frederiksen
Invest with your
friends! www.bivio.com
"investment club" is not a legal entity, at least as far as the IRS goes. What tax return form do you file? And I would presume that your partnership has a name that probably has the word "club" in it. So I think no matter how you sign up with TDA, you will fill out the form appropriate for your legal structure with the name of your organization. The only reason I suggested inquiring about partnerships is that sometimes the person at the brokerage is not familiar with an investment "club", but they understand a partnership organized for investment purposes.
On its website, TDAmeritrade offers accounts for both partnerships and investment clubs noting that investment clubs may be partnerships. Is there any advantage in choosing one over the other for TDAmeritrade? Our investment club is a partnership. As one of posters suggested, it may be better to register as a partnership to avoid the anti-investment club bias. Also, does anyone know whether we will need signatures of all the partners for TDAmeritrade or can we get by with just an authorized agent / general partner signature? Thanks.
A "back door" to Schwab is available through TDAmeritrade. I spoke with them today and they are accepting new club accounts even though they are in the process of mergong with Schwab. The integration of the two is going to be completed sometime within the next 16 months to 3 years
Our family club uses Fidelity and it does do Account Sync with bivio. I had been with Fidelity for 20 years before starting the family club so I was very familiar with it. Free commissions and good research available. I like it a lot.
BTW, Fidelity is one of the few brokers who does HSAs (Health Spending Accounts - must have a High Deductible Health Insurance Plan).
Paul Madison
On Fri, Dec 4, 2020 at 1:47 PM Laurie Frederiksen <laurie@bivio.biz> wrote:
Our club will be transitioning to another broker (not InteractiveBrokers) and I'm wondering since Folio has a 90 day hold on half of our cash, how will that be handled? Does anyone know?
I'd recommend you ask Folio about that. I don't believe it ended up being a problem when we transitioned our club account last spring, but I don't completely remember.
Laurie Frederiksen
Invest with your friends! www.bivio.com
Peter - what is the $20 a year fee for? Thanks Kim Potter
On Saturday, December 5, 2020, 03:19:04 PM EST, Peter Dunkelberger via bivio.com <user*26984900001@bivio.com> wrote:
TD Ameritrade wanted, and I assume still does, each partner's signature when TDA bought out Scottrade. About a year ago, we thought we would use our uninvested funds for checking with TDA, but again we needed the signature of every partner. Too much trouble-we might write 2-4 checks a year, which means $20 bucks a year in fees to TDA. But it was too much trouble to get everyone's signature.
Mine is at TD. They want all the partners names(signed document) and there is another form...for authorized agents(signed by each). You have to update the info if you change authorized person/s. Those forms should be available on the website.
On 12/5/2020 12:10 PM, Ty Hughes via bivio.com wrote:
On its website, TDAmeritrade offers accounts for both partnerships and investment club.s noting that investment clubs may be partnerships. Is there any advantage in choosing one over the other for TDAmeritrade? Our investment club is a partnership. As one of posters suggested, it may be better to register as a partnership to avoid the anti-investment club bias. Also, does anyone know whether we will need signatures of all the partners for TDAmeritrade or can we get by with just an authorized agent / general partner signature? Thanks.
A "back door" to Schwab is available through TDAmeritrade. I spoke with them today and they are accepting new club accounts even though they are in the process of mergong with Schwab. The integration of the two is going to be completed sometime within the next 16 months to 3 years
Our family club uses Fidelity and it does do Account Sync with bivio. I had been with Fidelity for 20 years before starting the family club so I was very familiar with it. Free commissions and good research available. I like it a lot.
BTW, Fidelity is one of the few brokers who does HSAs (Health Spending Accounts - must have a High Deductible Health Insurance Plan).
Paul Madison
On Fri, Dec 4, 2020 at 1:47 PM Laurie Frederiksen <laurie@bivio.biz> wrote:
Our club will be transitioning to another broker (not InteractiveBrokers) and I'm wondering since Folio has a 90 day hold on half of our cash, how will that be handled? Does anyone know?
I'd recommend you ask Folio about that. I don't believe it ended up being a problem when we transitioned our club account last spring, but I don't completely remember.
Laurie Frederiksen Invest with your friends! www.bivio.com
The checking account issue
seams strange. We got checks with our account......years ago. We
use check once or twice a year. Never saw a fee from TDA for this.
Genie
On 12/5/2020 4:35 PM, Mike & Kim
Potter via bivio.com wrote:
Peter - what is the $20 a year fee for?
Thanks
Kim Potter
On Saturday, December 5, 2020, 03:19:04 PM EST, Peter
Dunkelberger via bivio.com
<user*26984900001@bivio.com> wrote:
TD Ameritrade wanted, and I
assume still does, each partner's signature when TDA
bought out Scottrade. About a year ago, we thought
we would use our uninvested funds for checking with
TDA, but again we needed the signature of every
partner. Too much trouble-we might write 2-4 checks
a year, which means $20 bucks a year in fees to
TDA. But it was too much trouble to get everyone's
signature.
Mine
is at TD. They want all the partners
names(signed document) and there is another
form...for authorized agents(signed by each).
You have to update the info if you change
authorized person/s.
Those forms should be available on the
website.
On 12/5/2020 12:10 PM, Ty Hughes via bivio.com wrote:
On
its website, TDAmeritrade offers
accounts for both partnerships and
investment club.s noting that investment
clubs may be partnerships. Is
there any advantage in choosing one over
the other for TDAmeritrade? Our
investment club is a partnership. As one
of posters suggested, it may be better
to register as a partnership to avoid
the anti-investment club bias. Also,
does anyone know whether we will need
signatures of all the partners for
TDAmeritrade or can we get by with just
an authorized agent / general partner
signature? Thanks.
A "back door" to Schwab is
available through TDAmeritrade. I spoke
with them today and they are accepting
new club accounts even though they are
in the process of mergong with Schwab.
The integration of the two is going to
be completed sometime within the next 16
months to 3 years
Our family
club uses Fidelity and
it does do Account Sync
with bivio. I had been
with Fidelity for 20
years before starting
the family club so I was
very familiar with it.
Free commissions and
good research
available. I like it a
lot.
BTW, Fidelity is
one of the few brokers
who does HSAs (Health
Spending Accounts -
must have a High
Deductible Health
Insurance Plan).
Paul Madison
On Fri, Dec
4, 2020 at 1:47 PM
Laurie Frederiksen
<laurie@bivio.biz> wrote:
Our
club will be
transitioning
to another
broker (not
InteractiveBrokers)
and I'm
wondering
since Folio
has a 90 day
hold on half
of our cash,
how will that
be handled?
Does anyone
know?
I'd
recommend you
ask Folio
about that. I
don't believe
it ended up
being a
problem when
we
transitioned
our club
account last
spring, but I
don't
completely
remember.
Laurie
Frederiksen
Invest with
your friends! www.bivio.com
I spoke with both Schwab and TD Ameritrade this morning. According to the Schwab representative, Schwab has raised its account minimum for new investment clubs to ​$1 million. The same representative said the $1 million thresholds would apply to partnership accounts whose business is investing, even if the partnership was not called an investment club. The lower $250k threshold only applies to businesses. I don’t know why Schwab draws that distinction because the legal entity is a general partnership regardless of whether it operates as an investment club or a business. Schwab clearly does not want to deal with small investment clubs. However, Schwab has grandfathered all existing investment club accounts, so they are not subject to the $1 million minimum.
TD Ameritrade was far more accommodating and helpful, although I expect that will change as their operations are absorbed by Schwab over the next 18 months. TD Ameritrade’s application is a little easier than that of Schwab. The TD Ameritrade rep said that a copy of the partnership agreement with signatures would suffice in lieu of individual partner signatures on the account application. (We’ll see if that advice is correct.)
One small difference between the Schwab and TD Ameritrade account applications is in the disclosure of beneficial ownership. The TD Schwab threshold is 10%, while the TD Ameritrade threshold is 25% (10% for foreign entities).
So, I think we are going to try to move our FolioInvesting account to TD Ameritrade.
Best regards,
Ty Hughes
1
Daniel Williams on
12/07/2020
In my opinion, this is very disappointing and short-sighted on Schwab's part. A lot of people use their work with IC's to discipline themselves about staying connected with their investments, and to help with research not only for the club, but also for their personal account(s). In a lot of cases, their stake in their club is only a small portion of their overall holdings. Working with TDA's investment website is vastly different from working with Etrade's, and an individual is likely to prefer one over the other, or choose one based on which site the club deals with. Discouraging clubs may be inadvertently turning away business.
On Mon, Dec 7, 2020 at 10:28 AM, Ty Hughes via bivio.com
<user*3139700001@bivio.com> wrote:
Update.
I spoke with both Schwab and TD Ameritrade this morning. According to the Schwab representative, Schwab has raised its account minimum for new investment clubs to $1 million. The same representative said the $1 million thresholds would apply to partnership accounts whose business is investing, even if the partnership was not called an investment club. The lower $250k threshold only applies to businesses. I don't know why Schwab draws that distinction because the legal entity is a general partnership regardless of whether it operates as an investment club or a business. Schwab clearly does not want to deal with small investment clubs. However, Schwab has grandfathered all existing investment club accounts, so they are not subject to the $1 million minimum.
TD Ameritrade was far more accommodating and helpful, although I expect that will change as their operations are absorbed by Schwab over the next 18 months. TD Ameritrade's application is a little easier than that of Schwab. The TD Ameritrade rep said that a copy of the partnership agreement with signatures would suffice in lieu of individual partner signatures on the account application. (We'll see if that advice is correct.)
One small difference between the Schwab and TD Ameritrade account applications is in the disclosure of beneficial ownership. The TD Schwab threshold is 10%, while the TD Ameritrade threshold is 25% (10% for foreign entities).
So, I think we are going to try to move our FolioInvesting account to TD Ameritrade.
Best regards,
Ty Hughes
1
Linda Glein on
12/07/2020
One of BetterInvesting's roles is as an advocate for its member clubs.
I hope Ken Zendel sees your message, Daniel, and uses those points in communication with TDA, Schwab, E*Trade and other brokers.
In my opinion, this is very disappointing and short-sighted on Schwab's part. A lot of people use their work with IC's to discipline themselves about staying connected with their investments, and to help with research not only for the club, but also for their personal account(s). In a lot of cases, their stake in their club is only a small portion of their overall holdings. Working with TDA's investment website is vastly different from working with Etrade's, and an individual is likely to prefer one over the other, or choose one based on which site the club deals with. Discouraging clubs may be inadvertently turning away business.
I spoke with both Schwab and TD Ameritrade this morning. According to the Schwab representative, Schwab has raised its account minimum for new investment clubs to $1 million. The same representative said the $1 million thresholds would apply to partnership accounts whose business is investing, even if the partnership was not called an investment club. The lower $250k threshold only applies to businesses. I don't know why Schwab draws that distinction because the legal entity is a general partnership regardless of whether it operates as an investment club or a business. Schwab clearly does not want to deal with small investment clubs. However, Schwab has grandfathered all existing investment club accounts, so they are not subject to the $1 million minimum.
TD Ameritrade was far more accommodating and helpful, although I expect that will change as their operations are absorbed by Schwab over the next 18 months. TD Ameritrade's application is a little easier than that of Schwab. The TD Ameritrade rep said that a copy of the partnership agreement with signatures would suffice in lieu of individual partner signatures on the account application. (We'll see if that advice is correct.)
One small difference between the Schwab and TD Ameritrade account applications is in the disclosure of beneficial ownership. The TD Schwab threshold is 10%, while the TD Ameritrade threshold is 25% (10% for foreign entities).
So, I think we are going to try to move our FolioInvesting account to TD Ameritrade.
In my opinion, this is very disappointing and short-sighted on Schwab's part. A lot of people use their work with IC's to discipline themselves about staying connected with their investments, and to help with research not only for the club, but also for their personal account(s). In a lot of cases, their stake in their club is only a small portion of their overall holdings. Working with TDA's investment website is vastly different from working with Etrade's, and an individual is likely to prefer one over the other, or choose one based on which site the club deals with. Discouraging clubs may be inadvertently turning away business.
I spoke with both Schwab and TD Ameritrade this morning. According to the Schwab representative, Schwab has raised its account minimum for new investment clubs to $1 million. The same representative said the $1 million thresholds would apply to partnership accounts whose business is investing, even if the partnership was not called an investment club. The lower $250k threshold only applies to businesses. I don't know why Schwab draws that distinction because the legal entity is a general partnership regardless of whether it operates as an investment club or a business. Schwab clearly does not want to deal with small investment clubs. However, Schwab has grandfathered all existing investment club accounts, so they are not subject to the $1 million minimum.
TD Ameritrade was far more accommodating and helpful, although I expect that will change as their operations are absorbed by Schwab over the next 18 months. TD Ameritrade's application is a little easier than that of Schwab. The TD Ameritrade rep said that a copy of the partnership agreement with signatures would suffice in lieu of individual partner signatures on the account application. (We'll see if that advice is correct.)
One small difference between the Schwab and TD Ameritrade account applications is in the disclosure of beneficial ownership. The TD Schwab threshold is 10%, while the TD Ameritrade threshold is 25% (10% for foreign entities).
So, I think we are going to try to move our FolioInvesting account to TD Ameritrade.
Best regards,
Ty Hughes
1
Linda Glein on
01/06/2021
Laurie, I sent the following to BetterInvesting:
I think Folio has done it's clients a major disservice. They
did not give clubs enough time to accomplish this change.
Seriously:
They announced this on Dec 7th without regard for the
following
The Holiday season which means people had only 23 business
days.
A time of unprecedented delayed mail delivery.
Clubs only meet 1 x month and often not during December
Clubs must pass a motion to make such a change
Clubs have to gather signatures from multiple people during
a time when they cannot meet in person!
This is infuriating. THEY are being unreasonable.
I ask that on behalf of its members BetterInvesting lodge a
protest with Goldman Sachs/Folio.
Ty Hughes on
01/06/2021
We also have a Folio Investing account and have decided to move the account to E*Trade. Folio Investing did not provide much advanced notice.
If you don't want your account automatically moved to Interactive Brokers, you must opt out with Folio Investing no later than January 8 (Friday). You can do this by email or phone. With email, you will have record of your election. I was not able to reach them by phone.
When you opt out, you'll receive this response:
We have received your request to opt out of the transition to Interactive Brokers, LLC.
You must take one of the following actions by January 29, 2021: (i) selling your securities and withdrawing your cash, or (ii) transferring your account(s) to another broker-dealer (Folio account transfer fees are waived.).
If you do not complete your transfer to another broker-dealer by January 29, 2021, your account(s) will be restricted to sell transactions only and you will be charged a transfer fee of $100 per account when you transfer your account(s) to another firm.
If you elect to liquidate your accounts instead and do not withdraw your funds by January 29, 2021, your account will be restricted to sell transactions only.
Hope this information is helpful.
Ty H.
Laurie Frederiksen on
01/06/2021
Your note makes a lot of very valid points Linda. This is also all happening during the busiest support time of the year. Clubs who have tax reporting issues to address with Folio may have a much more difficult time doing so.
It will be interesting to hear what response you receive from Better Investing.
Laurie Frederiksen Invest with your friends! www.bivio.com
We also have a Folio Investing account and have decided to move the account to E*Trade. Folio Investing did not provide much advanced notice.
If you don't want your account automatically moved to Interactive Brokers, you must opt out with Folio Investing no later than January 8 (Friday). You can do this by email or phone. With email, you will have record of your election. I was not able to reach them by phone.
When you opt out, you'll receive this response:
We have received your request to opt out of the transition to Interactive Brokers, LLC.
You must take one of the following actions by January 29, 2021: (i) selling your securities and withdrawing your cash, or (ii) transferring your account(s) to another broker-dealer (Folio account transfer fees are waived.).
If you do not complete your transfer to another broker-dealer by January 29, 2021, your account(s) will be restricted to sell transactions only and you will be charged a transfer fee of $100 per account when you transfer your account(s) to another firm.
If you elect to liquidate your accounts instead and do not withdraw your funds by January 29, 2021, your account will be restricted to sell transactions only.
Hope this information is helpful.
Ty H.
Mike & Kim Potter on
01/06/2021
Another thing I would add to this list of complaints is that in all likelihood it will mean dealing with Folio over two more tax seasons. I had hopes we would be able to select a new broker and accomplish the move before the end of 2020. I was wrong - didn't happen. We only have 11 in our club but needed lots of signatures and it was the strangest holiday season ever. But I transmitted all gazillion pages to Fidelity yesterday!!
Kim Potter
BI Brighton Model Investment Club
On Wednesday, January 6, 2021, 01:23:39 PM EST, Laurie Frederiksen <laurie@bivio.biz> wrote:
Your note makes a lot of very valid points Linda. This is also all happening during the busiest support time of the year. Clubs who have tax reporting issues to address with Folio may have a much more difficult time doing so.
It will be interesting to hear what response you receive from Better Investing.
Laurie Frederiksen Invest with your friends! www.bivio.com
We also have a Folio Investing account and have decided to move the account to E*Trade. Folio Investing did not provide much advanced notice.
If you don't want your account automatically moved to Interactive Brokers, you must opt out with Folio Investing no later than January 8 (Friday). You can do this by email or phone. With email, you will have record of your election. I was not able to reach them by phone.
When you opt out, you'll receive this response:
We have received your request to opt out of the transition to Interactive Brokers, LLC.
You must take one of the following actions by January 29, 2021: (i) selling your securities and withdrawing your cash, or (ii) transferring your account(s) to another broker-dealer (Folio account transfer fees are waived.).
If you do not complete your transfer to another broker-dealer by January 29, 2021, your account(s) will be restricted to sell transactions only and you will be charged a transfer fee of $100 per account when you transfer your account(s) to another firm.
If you elect to liquidate your accounts instead and do not withdraw your funds by January 29, 2021, your account will be restricted to sell transactions only.
Hope this information is helpful.
Ty H.
dial on
01/06/2021
Makes me so happy my club stayed with bivio and didn't transfer to folio
Diane Ellison
From: club_cafe@bivio.com <club_cafe@bivio.com> On Behalf Of Laurie Frederiksen Sent: Wednesday, January 6, 2021 11:23 AM To: The Club Cafe <club_cafe@bivio.com> Subject: Re: [club_cafe] The Fun Never Stops in 2020 - Attn Folio Clubs
Your note makes a lot of very valid points Linda. This is also all happening during the busiest support time of the year. Clubs who have tax reporting issues to address with Folio may have a much more difficult time doing so.
It will be interesting to hear what response you receive from Better Investing.
Laurie Frederiksen Invest with your friends! www.bivio.com
We also have a Folio Investing account and have decided to move the account to E*Trade. Folio Investing did not provide much advanced notice.
If you don't want your account automatically moved to Interactive Brokers, you must opt out with Folio Investing no later than January 8 (Friday). You can do this by email or phone. With email, you will have record of your election. I was not able to reach them by phone.
When you opt out, you'll receive this response:
We have received your request to opt out of the transition to Interactive Brokers, LLC.
You must take one of the following actions by January 29, 2021: (i) selling your securities and withdrawing your cash, or (ii) transferring your account(s) to another broker-dealer (Folio account transfer fees are waived.).
If you do not complete your transfer to another broker-dealer by January 29, 2021, your account(s) will be restricted to sell transactions only and you will be charged a transfer fee of $100 per account when you transfer your account(s) to another firm.
If you elect to liquidate your accounts instead and do not withdraw your funds by January 29, 2021, your account will be restricted to sell transactions only.