Dear Client,
TD Ameritrade will send you an Account Transition Notice(s) (also known as the Negative Consent Letter) to you at the end of this month. This notice provides details about the transition from TD Ameritrade to Charles Schwab, the timing of the transition, what to expect, disclosures, and information about what your Schwab cash sweep feature will be once your account transitions. You do not need to take any action regarding the negative consent unless you do not want your accounts to move to Charles Schwab.
Please be aware that, as a firm, we have spent hours of due diligence on this transition. We have spoken with representatives in multiple departments at TD Ameritrade, Charles Schwab, and their competitors like Fidelity to ensure we understand the pros and cons for our clients. We also confirmed with our portfolio managers that they could continue to invest your assets without any changes at Schwab. Finally, in the spirit of “trust but verify,” we spoke with several other financial planning firms that work with our managers at TDA, Schwab, and Fidelity to make sure that their experiences were the same as what we were hearing from those companies directly. The consensus of this due diligence is that Charles Schwab is the best custodial option for us as a firm and, most importantly, our clients.
Other things to note:
- The notice will be sent at the account level based on your preferences, i.e., by email or mail. This means you may receive several notices; if your accounts have different delivery preferences, they may come in different forms.
- The version you will receive will be based on your account type (i.e., Traditional IRAs, Joint Accounts, 401ks, etc.) and features, including the necessary disclosures.
If you have any questions, please feel free to contact our office.
Regards,
Your Brophy Wealth Team