Need to Know: TD Ameritrade to Schwab Transition

As you remember, Schwab acquired TD Ameritrade in 2019.  The systems integration has been happening for the last two years and now the time for client transition to Schwab is rapidly approaching.  The actual account move is scheduled to happen over Labor Day weekend, about two months from now.  The plan is that we will all end our day on Friday September 1 as TD Ameritrade clients and wake up Tuesday September 5 as Schwab clients – all happening behind the scenes while we enjoy our long weekend.  Uh…..  let’s hope we are anywhere near close to this plan!  We do know that your TD Ameritrade accounts will not be viewable via AdvisorClient.com during the Labor Day holiday weekend, which can be a little disconcerting for sure, but nothing to worry about. 

If we have already moved your accounts to Schwab and/or you never had any accounts at TD Ameritrade to begin with, you should be able to stop reading now! 

If you still have accounts at TD Ameritrade:

You have probably already received from Schwab, or will soon receive, an Account Transition Notice, aka Negative Consent Letter.  This communication will come to you via U.S. mail or email, depending on your TD account preferences.  This letter will contain further details on transition timing and Schwab’s cash sweep feature/rate.    NOTE:  You will not need to take any action regarding this negative consent letter, which simply allows your accounts to transition to Schwab.  If you do not want this transition to happen for some reason, please let us know asap. 

In August, you will receive a pre-conversion packet from Schwab which will have specific account information.  This packet should include information about how to set up your Schwab Alliance access which functions much like your AdvsiorCient.com access, but which we think has more capability and is easier to use.  That’s good news!   

We are working with Ameritrade to get inactive accounts closed prior to the transition but we will undoubtedly miss a few which should be closed and close a few which we will need at some point.  Don’t worry – we can open or close accounts at Schwab as needed.  

We have left some of our personal accounts at Ameritrade so we can see the communications and experience the transition with you.  We have already transitioned about 1/3 of client TD accounts so we now have considerable experience here.  We can also still transition additional accounts to Schwab ahead of August if you want to do. 

Do not hesitate to reach out when you have questions or are worried about ANYTHING, except the market of course.