moving out of Schwab

[saratoga]

I am moving my small investment at Schwab to Merrill Edge.  

I use Bank of America and its Preferred Reward Program.

Since the sum of your deposit at the bank and investment at Merrill Edge determines your level of the Reward Program,
it is advantageous to have some investment at Merrill Edge.

Also, instantaneous transfers of cash between the two outfits are convenient.

I plan to sell my investment at Schwab and transfer all cash to Merrill Edge.

Then, I think I will leave my account at Schwab with  0 balance without closing it.

Is this ok?   Any thoughts?

[richardsok]

Apr 4, 2024 3:12:38 GMT saratoga said:

I am moving my small investment at Schwab to Merrill Edge.  

I use Bank of America and its Preferred Reward Program.

Since the sum of your deposit at the bank and investment at Merrill Edge determines your level of the Reward Program,
it is advantageous to have some investment at Merrill Edge.

Also, instantaneous transfers of cash between the two outfits are convenient.

I plan to sell my investment at Schwab and transfer all cash to Merrill Edge.

Then, I think I will leave my account at Schwab with  0 balance without closing it.

Is this ok?   Any thoughts?

Only three comments.  I'd re-think about leaving a zero balance at Schwab.  They might might simply close you out.  If there's any reason you really want to keep your Schwab relationship viable, I would leave a five dollar balance or so, just to be sure the account remains active.

Second, I'd be sure I was comfortable with an alternative for charting.   Merrill's is pretty simplistic on the retail level.

Lastly, Merrill doesn't automatically send out their newest research reports.  You have to specifically ask for the latest ones.  I'd develop a relationship with your Merrill agent so he knows what reports you usually want and keeps an eye out for you.

[archer]

Is there an advantage to selling rather than transferring your holdings? (assuming that is possible between Schwab and Edge).

[liftlock]

Apr 4, 2024 6:15:50 GMT archer said:

Is there an advantage to selling rather than transferring your holdings? (assuming that is possible between Schwab and Edge).

It might depend on what your holding period is.  If you sell your holdings you are eliminating the potential downside risk that your holdings might decline in price during the transfer.  At the same time you are taking the risk that the holdings may rise in price during the transfer. 

[archer]

Apr 4, 2024 15:14:39 GMT liftlock said:

Apr 4, 2024 6:15:50 GMT archer said:

Is there an advantage to selling rather than transferring your holdings? (assuming that is possible between Schwab and Edge).

It might depend on what your holding period is.  If you sell your holdings you are eliminating the potential downside risk that your holdings might decline in price during the transfer.  At the same time you are taking the risk that the holdings may rise in price during the transfer. 

I took a quick look into this and found that the average is 6 days for the transfer to complete. I had no idea that in this day and age it would be much slower than immediately.

Another consideration is taxes on the sale if applicable.

[saratoga]

richardsok,archer,liftlock,

Thanks all for your comments.
With the market down, I think I will get the investment transferred.
I will leave at least $5 at Schwab - just in case.
I do not have any high expectation at Merrill Edge; I just think that it will work well with B of A -
better than Schwab/Schwab bank combo.
I can do more research elsewhere.

[saratoga]

I left $10 at Schwab. Schwab online brokerage got updated - looks very good.
By the way, do you know a good place to park cash at Merrill Edge?

[steadyeddy]

Merrill does have a decent FDIC cash option (Preferred Deposit) if you ever need to keep some dough in a safe place - it currently pays 4.92%. Another alternative to MM funds.