TD Ameritrade to Schwab Transition 

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Dear Clients,
 
During this upcoming Labor Day weekend, your TD Ameritrade accounts will become Charles Schwab accounts. We have been assured by Schwab that this changeover will be “seamless”, but we take that with a grain of salt. We are writing this email to give you a heads-up about some of the issues that might be encountered and how we can help.
 
You may be wondering why this is happening, so here is a quick review. It is not a decision that Eclectic made. Rather, Schwab bought the TDA company in 2019 and has been working on regulatory and transition hurdles since that time. They are very similar investment custodian companies and Eclectic has had client accounts at both companies for over 20 years, nevertheless it has taken some time for Schwab to work out how to best do the transition. We are hopeful that it will go smoothly.
 
You should have received a mailing from Schwab in the last couple weeks which included a cover letter and a brochure about the transition. If you do not remember receiving those, you can see the PDF brochure here. 
 
Your TDA accounts will have new account numbers with Schwab, and in order to view your accounts online, you will need to have a new login and password at SchwabAlliance.com. To get this set up, go to this website and click on the “First Time Users” link. You can do this now, but you will not be able to see your account(s) from TDA until after September 5th.
 
If you already have a Schwab account and have previously set up online access for Schwab, your accounts from TDA should be visible at the same Schwab login after September 5th.
 
Other possible issues:

  • Everyone should receive new Schwab checks on their taxable (not retirement) accounts at some point after September 5th, if they have used their TDA checks in the last 24 months. We will not be surprised if the checks take longer and arrive in your mailbox around September 20th. If you have not used TDA checks in the past, but you would like to have Schwab checks for your new account, please let Eclectic know and we will help you order them. The same is true for a Schwab debit card for your account.

 

  • If you currently have a monthly bill automatically deducted from your TDA account (like a mortgage), you will need to update the billing details with the payee using the routing and account number from your new Schwab checks. If you do not complete this update, your bill will not be paid and you could get charged a late fee by the payee. (Eclectic’s authority to move money OUT of your TDA account to your bank will continue with Schwab.)

 

  • In the same way, if you have a recurring monthly deposit going into a TDA account, you will need to direct this monthly deposit to your new Schwab account using the routing and account number from your new Schwab checks. (Eclectic’s authority to move money INTO your TDA account from your bank will continue with Schwab.)

There will be a period of time when you will not be able to login to either TDA or Schwab online, which will be September 1st through 5th. During this transition period, neither system will allow your login so that Schwab can get the changeover done.
 
We appreciate your patience as this change occurs. While we are hopeful for an easy transition, we are ready for hiccups and frustrations. If you get frustrated, please call us and let us know how we can get frustrated for you. Solving financial administrative hassles are one of the services we are known to handle for our clients.
 
As always, when it comes to online security, there are some things that Schwab will not let us complete for you. Nevertheless, call us, let us know what you need help with, and let us do all we can to assist you.
 
Thank you,
 
Eclectic Associates
714-738-0220