Schwab Is Costing You THOUSANDS In 2024 and You Don't Even Know It

[@just.bob.j]

Holy crap… I gave it four minutes and you still didn't make a point

[@fantasyrookie8757]

TLDR: Dont keep uninvested money in Schwab. If you have any uninvested money, move it to brokerage that offers high interest rates.

[@Helmholtzwatson1984]

And what brokerage is that ​@@fantasyrookie8757

[@Stocky3]

Thanks. He sounded like an advertisement

[@dacokc]

Thanks for the warning. Skipped to 4min.

[@garryb.1334]

Lol I can't help but feel that energy is counterproductive to success.

[@EleanorMabel]

I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.

[@ArabellaBeatrice-099]

I feel your pain mate, as a fellow retiree, I’d suggest you look into passive index fund investing and learn some more. For me, I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured $30k in value stocks and digital assets, Up to 200k so far and pretty sure I'm ready for whatever comes.

[@EleanorMabel]

@@ArabellaBeatrice-099 That's actually quite impressive, I could use some Info on your FA, I am looking to make a change on my finances this year as well

[@ArabellaBeatrice-099]

@@EleanorMabel My advisor is VICTORIA CARMEN SANTAELLA;

[@ArabellaBeatrice-099]

You can look her up online

[@ArabellaBeatrice-099]

Nah I Can't say I can relate, VICTORIA CARMEN SANTAELLA charge is one-off and pretty reasonable when compared to what I benefit in returns.

[@legopadawanlearner8390]

This is a click bait video. And not even a good one. Bottom line: If you want to keep cash in Schwab, put it in their money market funds, don’t just leave it in your cash sweep.

[@mikeyis009]

I’m surprised anyone would leave just cash not in a MM while waiting for a buy box.

[@trenton299]

why do we have to wait so long before this guy gets to the point....dude talks to much

[@thecleaningteacher638]

Moral of the story-don’t sit on your cash in your Schwab account. Reinvest it into a fund, HYSA, or something drawing more interest.

[@klotus8885]

8:00 This is not true. All you have to do is put a sell order of SWVXX or other Schwab money market fund. Then you can use that money to trade immediately even though that sell order won't get filled until the end of day. You definitely don't need to wait for sell order to settle the next day.

[@mikeyis009]

Correct. I do it all the time.

[@Apple55330]

For cash account, you have to wait. For margin account, the money is available immediately.

[@suavidemir4846]

@@Apple55330 Do you pay margin fee to use the money for 1 day like that?

[@Keneth94]

I think investors should always put their cash to work, especially In 2024, we'll start to see more market diversification. I'm hoping to invest about $350k of my savings in stocks against next year. Hope to make millions in 2024

[@MrsStephanie5]

I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?

[@MrsStephanie5]

I searched for her full name online, found her page, and sent an email to schedule a meeting. Hopefully, she responds soon. Thank you

[@DeltadronesBr]

Spend this money traveling. Life is short!

[@bridgetbriley692]

You can trade with unsettled funds at Schwab. You can call them and ask for ways to get better interest and they will go over money markets, CDs, etc. They advertise their MM rates on their statements and their website. So Schwab is not costing you thousands, but you could help yourself earn more by putting in a little work.

[@smileychess]

The "costing you thousands" is in relation to their competitors. Vanguard and Fidelity automatically sweep your deposits into MM accounts that give 5%+.

[@Johnnyboy893]

i guess you could say Schwab is taking your cash and 'sweeping it under the rug'

[@RobbieMoney]

🤣🤣🤣

[@garryb.1334]

Unless you have that money in your pocket, someone is making money off of your money.

[@NoWorriesTJ]

Initially i didnt know but was made aware about this 3 months ago. I also recently just found out that when u sell a cash secured put, the money that schwab holds u can still put in a money market account. I sold 2 Jan 2025 puts with a $25 strike price totalling 5000 on hold and the money on hold is inside a money market account basically for a year. So not only did i get premium for selling the puts i also collect interest on the 5k.

[@itsnunyabidness1225]

I've sat & wished for the LONGEST time that I could do that with the set-aside cash from shorting options!! I've got $50K just sitting there not working for me like it could be. I guess I was a victim of my own assumption. Did you have to call in and have them trade into a MMF for you or were you able to do it yourself?

[@NoWorriesTJ]

@itsnunyabidness1225 By myself. I actually rolled them to 2026. So the 5k would be collecting passive income for close to 2 years. Schwab's mmf is pretty liquid plus u can do it with the click of a button

[@arcee49]

Yes, same! How can I do that?

[@NoWorriesTJ]

@@arcee49 do u have schwab

[@roseymalino9855]

Can't make heads or tails out of what your rant is.

[@RobbieMoney]

Interest rate on your cash is 9 times higher in Fidelity and Vanguard than Schwab.

[@DirgeRJ]

Ha! Same.

[@mjg239]

It was clear to me!

[@Sylvan_dB]

I used SNSXX in my taxable account - treasuries aren't taxed in my state and given my state tax rate the net I'll keep is higher. (Schwab doesn't have a state muni fund for me.) If in a margin account you don't have to wait to sell the MMF before you trade - sell it the same day and it will settle in time to avoid margin interest.

[@RobbieMoney]

Interesting, @Sylvan_dB . I didn't know that about margin accounts with Schwab!

[@joestutzke4511]

Can you explain how Margin Interest would work for this type of trade? What if you wanted to just park money in the account and hold it but have enough cash to cover? Could you then use the remaining money on Margin to Trade?

[@Sylvan_dB]

@@joestutzke4511 I'm not entirely clear on what you are asking. If you wonder if you can leave money in the fund and trade on margin, yes you can. I do that. (Schwab will not automatically sell the MMF, at least not on new personal accounts. web page docs indicate some old or managed accounts might be set up to auto-sell.)

[@joehook9635]

Duh. In addition to MM funds, there are plenty of liquid ETFs that hold treasuries, etc. that are an easy work around for this. This content could be covered in 2 minutes or less.

[@SuoncyCharlotte]

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family...

[@Hazelkalvin]

I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second daughter. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks.

[@SuoncyCharlotte]

@@Hazelkalvin Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. *MARGARET MOLLI ALVEY* , a licensed fiduciary whom has made me over 5 figures in profit in less than seven months, handles my investments. I could leave you a lead if you need help.

[@Hazelkalvin]

@@SuoncyCharlotte Oh please I’d love that. Thanks!

[@SuoncyCharlotte]

@@Hazelkalvin *MARGARET MOLLI ALVEY*

[@SuoncyCharlotte]

Lookup with her name on the webpage.

[@smalltalk.productions9977]

when i realized what Schwab was doing, I WAS NOT HAPPY. for years, i have split my $ between Vanguard and Schwab but due to this wonky two-step processes, I am seriously thinking of moving 1/2 to Fidelity. VERY disappointing. Schwab should be doing better.

[@Just_Stevo]

You're losing out in the intrest because it's in a real FDIC insured bank account.

[@RobbieMoney]

This is true 👍

[@gdyee]

For extra income, my son sells cash secured put options in his Schwab account against cash in the sweep account or in the SWVXX money market fund. Of course he keeps the bulk of his cash in SWVXX to earn the higher 5% rate.

[@dutch3795]

Thank you my friend. I fell asleep with KZbin playing in the background (on my tv) and I woke up to your video. I watched it three times and now I just went into my Schwab account and purchased the SWVXX. Thank you for the information!!

[@walth7427]

Robbie, you don't have to wait a day for your SWVXX funds to clear. Put all your money in SWVXX, when you trade, sell enough SWVXX before mkt close to cover your debit for the day. Both the buy of your ETF and the sell of your SWVXX will settle the next day covering each other. I've been doing this for years. Also, when you sell your ETF, place a buy order for SWVXX with the proceeds before mkt close to get all of your money back into the MMF. Cheers! 🙂

[@jarc02]

I created 4 Schwab accounts with specific goals for each. A car fund, retirement house fund, Roth IRA and emergency fund. I created the emergency fund account January of 2023 and started buying 3-month T-bills when they were around 4.5%. As I added money I would buy a 3-month T-bill when I could afford to buy 10 T-bills. Any cash not used would go into SWVXX. I created a T-bill ladder where I have at least 2 to 4 T-bills a month and roll those into another 3-month T-bill. A couple times I purchased a 3-month CD. It would depend on the interest rate I would be able to collect for the day I was making the purchase. Interest from the T-bill/CD goes into SWVXX. I do the same thing with Fidelity. However, the majority of my emergency funds are with Schwab.

[@gaba023]

Thanks for the reminder. I recently sold off some positions and have cash doing nothing in my CS account. Putting it into SGOV for now.

[@kranupam]

Thank you Robbie..I saw fidelity giving 4.78% . It didn't click in mind that something is wrong . No interest from Charles uncle 🙂

[@baitcaster7260]

sgov is a good place to park cash low expense ratio and no state tax.they just paid 0.4581 dividend.

[@bliglesias]

Ive done it for a long time after increasing interest rates.

[@lasercooper]

Jeez. All mine and kids investment accounts are with Schwab. Thanks Robbie

[@RobbieMoney]

Hey @lasercooper! Ya Schwab is fantastic…just gotta pay attention to that sweep account!

[@TheSongtubes]

Start listening from 6 min onwards.

[@Apple55330]

lol

[@Morrisonpnc]

I share your frustration. I don't see why we can't authorize them to use a specific Schwab money market account to fund stock purchases. That would be good customer service.

[@mikeyis009]

It’s just 2 transactions. Couldn’t be easier.

[@estuardoruiz5373]

I felt exactly how you felt. I should’ve checked and disappointed with Schwab. Thanks for sharing!

[@lilblackduc7312]

Don't get me wrong, brotha. I dig Quincy Jones and all. But the music overlay in this video is too distracting! (@ 1:48) Otherwise, good show, man...👍🏾👍🏾

[@sharaf.6333]

Thanks to your very informative video, I moved everything out of Schwab and over to Fidelity!

[@williamdavidson4576]

Going to do the same here.

[@jpHarkins-kb2vv]

I had fidelity for over 25 yrs. They Were even worse. From high fees to crappy customers no service.

[@X-7-Ripper]

Anytime I have cash sitting in any type of account, the FIRST thing I ask myself is “how much interest is my cash earning”. For example, I know that the cash in my Schwab intelligent portfolio is earning about 4.3% because I looked into it. Stay on top of things.

[@akin242002]

Nice laptop! It looks like an HP EliteBook 850/860. Is it G8 or G9?

[@RobbieMoney]

Thanks! Actually it's an HP Envy!

[@sangm1561]

This is a shameful practice which Schwab should correct immediately. If other brokers are providing higher interest on their sweeps then Schwab shold fall in line and not be so rapacious.

[@ORIGINALwhatnow]

GET TO THE POINT

[@RobbieMoney]

Patience is a virtue. 😉

[@tranquilityliving911]

If your account is a Roth IRA then that Money Market account is tax free.

[@williamdavidson4576]

I saw a different clip that said the same thing about Schwab. So, basically they're treating us like the sleazy banks? We shouldn't have to ask them to give us a higher rate. I'm going to check out Fidelity. It seems like they have our backs a little better than the greedy uncle...

[@will4390]

I also put some cash in SWVXX!

[@RobbieMoney]

Nice! Were thinking alike!

[@akin242002]

Same here for my taxable brokerage account. Too much easy money to pass on it.

[@LeNguyen-im8dm]

Music is not necessarily in the video.

[@inquirer1016]

Look, Schwab is not charging for trading securities. They have to make it up in other ways. If you don't like it, transfer your account.

[@heltoncarvalho9786]

SUMMARY: As of July 2024 Vanguard, Fidelity, and Schwab all offer money market funds with yields between 5.01% and 5.29%. NEXT!

[@stebberg]

Why should you have uninvested money in the account?

[@cswayze5851]

Have been with Schwab since the early 1980s. Wish I would have found your video 9 months ago. This didn't get my attention until recently. Started using the Schwab MMFs for a higher yield and to have the cash more readily available to invest in the market. I don't understand why Schwab can't just sweep cash automatically into a Schwab MMF, like Fidelity and Vanguard do. Instead of the account holder having to buy and sell in and out of them. Thanks for your video.

[@larrykoltun3703]

As I understand it, you are doing your own investing at no charge by Schwab other than the expense ratios that are associated with a particular fund or eft that you choose to allocate to. You have all the tools and resources available to you that Schwab offers at no charge. Schwab does have broker assistance if you need it. With a fee naturally. Then you would be notified if there is a better alternative during changing markets. Maybe that would be a better alternative for you, given your complaint to a free platform.

[@DukeSilver1]

You’re self directed. It’s your responsibility to review your cash. It really is that simple to accept that reality when they offer a high money market and is how they can offer so many complimentary services

[@charlielipthratt7291]

You have some, um, opinionated folks in the comments. I guess negative comments are still great for the YT algorithm! Thanks for the video. It's good info to know. Maybe some of these folks will grow to appreciate your creative format.

[@RobbieMoney]

I know right? Interesting comment section for this video. Not sure what happened here. But thanks for appreciating the creativity. Trying to make better content!

[@williambell4591]

Thanks for the tip - I've been SMDH at my Chase acct, and the jank, non-existent returns I'm getting there (been looking at Sofi and others) Like you, I didn't think about what's happening to the cash sitting in my Schwab 🤔😣 Shame on them, I really like Schwab and my couple of years being there... Def will be looking into this! 👍

[@mahsamirkhani4835]

So I’m lost! Could you please help me to understand? I’m new to this and have heard Schwab US Treasury fund is the best way to make some money out of what you have bc of their great percentage. Is that right? What’s the difference between Fidelity and Schwab in this case? Thank you😊

[@davidk6498]

Any thing is better than the sweep account at .48 percent what we all want is a sweep account paying a higher interest why because when we sell it goes directly to your sweep making a decent percentage we may have limit orders on that may hit one two three,months from now Schwab is taking your sweep money and collecting the arbitrage between the sweep and the money market they don’t have your best interest at heart there making money and hoping you will fall asleep and let you money sit there while they collect times this by let’s just say a lot of people I am stuck here through a work place plan I will be leaving to fidelity there is a lot to like about Schwab but this is shady and you must keep and eye on them to answer your questing about the treasury fund it could be good I would look at the fees and your tax management plan if you have it in traditional ira your withdrawals will bee taxed at ordinary income you might do better using these in brokerage account speak with your advisor for account location 😊

[@sampannnigam4066]

Fidelity has core account where money goes automatically and pays you interest like 4.95%.

[@Eleazer4]

Yes, True!

[@transistor281]

so just move your money from the sweep to the swvxx?

[@pauldentler7127]

That takes a full business day during which time you can't use the money for ANYTHING. If you're unlucky enough to have moved your money after 4 pm it requires 2 days before you can use it. I've missed trades because of this.

[@rednkfn]

I didn't even realize it was 2024!

[@vikasgupta1828]

Thanks

[@sleepystar887]

No. Bank accounts are not insured.

[@gentillygirl545]

Hi, no offense, but I am trying to listen to this but the music is just too loud/distracting.

[@RobbieMoney]

No offense I’m happy for the feedback 🙂. Curious so I know when editing…did you watch with headphones (noise canceling) or with a phone speaker?

[@alexandervaldes8639]

Im on my iPhone no headphones and have to agree. The music is drowning out your voice. Still great content.

[@RobbieMoney]

Thanks for the feedback! 🙂

[@X-7-Ripper]

You have no idea what you’re talking about. Charles Schwab checking, savings, and investor checking accounts ARE NOT HYSA. Now if you’re investing in their Intelligent Portfolios, the cash inside of your portfolio earns a VERY ATTRACTIVE interest rate (currently between 4.3% and 5%), which is very competitive with any HYSA out there. Terrible video.

[@bruceanderson8179]

If you're self managing your investments and have a significant Schwab bank sweep balance they you best find an advisor because you aren't doing a good job. We're with Scwhab but our bank sweep account is minor and we keep it that way either via investments or transfers to one of their competive money market funds.

[@marissashell]

Yes, I did! Is there an expense ratio on the SWVXX? I thought it said 3.5 but I could be wrong an am trying to figure out if there is one.

[@kevincahoon3677]

To the point

[@yankeedoodle6293]

I realized this last year and immediately transferred my $ mid 7 figures to fidelity. Schwab is greedy, I will not do business with them on principal

[@RobbieMoney]

And you probably have well over the FDIC limit anyway and want to maximize the yield on your cash. 👍

[@AlmofidBdarija]

Get to the Fing point already. Why do you talk so much. Maybe people will sub if you fix this, otherwise we re here just for this video from search and never back again.

[@tysincain7636]

Been with Schwab for 6 years. Retired at 44 trading with multiple accounts/IRA ..Etc...never had any issues until the last the last TOS outage. Lost over 12k due to the swing trade, but I have made over 7 figures, so oh well ...😊

[@tristanhotard4339]

Is this an ad?

[@merrex4808]

Nice Video not sure you need music playing in the background ( I dont know though does having music in your videos generate more money you earn from youtube ? ) Any way I find it distracting when trying to pay attention to your Important info. At least you lowered the volume some times when you would speak. I wish KZbin had a toggle switch to eliminate background music in videos.

[@cliffdariff74]

Hes created a hit piece, for some unknown reason he's trying to trash C.S... they must be charging him fees 😅😅 i do see ur point, but its not a problem, you had ur money in the bond fund.

[@xchrisriver]

ITS ALL FILLER FAM! JUST LEAVE! TRUST ME!!! Came back after raging quitting to warn whoever is reading this! Im trying to help you! Don't waste your time brother!

[@timc233]

Trade CD's on the platform....not MM...

[@michelepellegrino1283]

Thanks Robbie, I'm new to all of this, but if I'm understanding this, money sitting in a Fidelity "sweep" account, is earning interest at Fidelity?

[@RobbieMoney]

Hi Michele! Yes earning interest in their Fidelity money market fund. Or in a partner bank. Depending on account. For example an Ira account, brokerage acct. etc. . 👍

[@rogerremus6053]

watch to the end

[@citygurl59]

thanks for the 411!

[@WhitCoburn]

zzzz get to the point. 4 minutes into this video and I have no idea how Schwab is screwing me.

[@jacari2159]

What about the Cash in their Intelligence Portfolio Roth IRA

[@ghant.]

Man i have all 3 brokerage and only Schwab isn't automatically placing your money in Market fund, Fidelity and Vanguard do, i moved my cash 50 / 50 between Fidelity and Vanguard

[@Sylvan_dB]

And at Fidelity, even if you do not use a "core" money market fund, you can manually buy any money market fund and set Fidelity to automatically sell it if needed to settle a trade or allow a withdrawal.

[@RobbieMoney]

I think a lot of people are leaving money on the table!

[@ghant.]

@@RobbieMoney i think so as well, people don't know, Thanks for the video

[@Branden_R]

Kindergarten Finance Class - Most videos lack substance

[@AndersonChao-vs3zf]

Schwab had great customer service, but not great way to win money

[@susanjannarone135]

I have vision problems, but I could tell that you had nothing to say.

[@gwill9794]

A long video stating you didn't read the disclosure. It is all on you jethro

[@thejourney7395]

Another great video. Glad I don't have a Schwab acct.👍

[@DJErnan]

1.) What

[@bgt54rfvcde32wsxzaq1]

"Maybe I'm The Only One?" YES! YES YOU ARE THE ONLY ONE WITH 7 THOUSAND DOLLARS IN AN INVESTMENT ACCOUNT AND NOT INVESTED 😳

[@samsamys5190]

Are you serious? We've been going crazy about raising interest rates for over a year and you didn't check what your money is worth in your account?????? IBKR has been paying my cash with a juicy % (now 4.83%) since the first day rates went up.

[@RobbieMoney]

Unfortunately….yes I’m serious 🤪

[@bibbidi_bobbidi_bacons]

False - Fidelity sweep acct pays the same - trash

[@survivingthetimes]

You made me lose money because I could have been researching a trade instead of listening to this claptrap.

[@melcome-u6z]

I do not trust these guys either..several times i had to get on them about correcting gains and losses ! i've seen you on youtube commercials too many times cut the wordy talk get to the point .

[@jpHarkins-kb2vv]

What about the july 2024 reports that are saying stocks like MRNA. PARA. BBY. SQQQ Will skyrocket by end of year 2024❤

[@bettahaffe]

Clickbait dont watch. He just STRINGS YOU ALONG

[@fangshimonk5938]

lol use there chart and trade on vanguard

[@Havmik808]

This video has more padding than my matress. Get to the point, man.

[@blerble]

Can't hear you over your obnoxious background music!

[@timewithoutconsequence]

Get to the point!

[@mcc5746]

Recently had my accounts transferred over from another broker. Needless to say, not impressed with Mr Charles at all. Giving it 6 months

[@RobbieMoney]

Ahhh too bad! I do like Schwab but just hate that sweep account.

[@Sylvan_dB]

From TD Ameritrade? I consider Schwab an upgrade in most areas. The sweep account is actually 0.10% better than what TD Ameritrade was paying!

[@drfm26]

Took 7 minutes to say “make sure you place trades with your cash available once it’s transferred”. Click bait build up to nothing.

[@RobbieMoney]

When a videos’ title and thumbnail say the thing that is explained in the video it’s by definition NOT clickbait. I both reveal why it can cost you thousands AND what to do about it. Say you didn’t like the video that’s fine. But calling it clickbait is false.

[@nikenash]

Sounds like a woman, rant rant rant, why not straight to the point?????

[@digital_0630]

Clickbait! Don’t watch! Literally rants about nothing!

[@Bryan-ei9nf]

Schwab sucks.

[@ElonMuskTheOne]

clickbait

[@sanjarinoyatov81]

For a financial blogger you yap too much

[@richardkranz3153]

Get to the point.

[@EricBlair2084]

weak. Not cute. Get to the point.

[@ronniebohl1832]

A waste of my time!

[@Spinach_D]

you talk too much

[@RobbieMoney]

I’ll be sure not to talk in the next video. 🫡

[@Spinach_D]

@@RobbieMoney direct and to the point, well done

[@CC-kl4nh]

Schwab is a snob. Schwab isn’t in it for you.

[@ksk5517]

zzzzzzzzzzz