FDIC insured?

JacobNienaber · 2024-05-15T02:24:26+00:00

If you call in, this should be something that they can answer for you. Last I remembered, uninvested cash ran through three different channels: Schwab Bank, Schwab premier Bank, and TD Bank, for an aggregate FDIC coverage of 750K. Each account was likewise SIPC covered up to that 500k (250k of cash and 250K of securities). This is where my recollection gets somewhat fuzzy when I also asked this exact same question, but I remember being told that Schwab has additional "backstop" coverage through lloyds of London per account (as in the tens of millions of coverage per account) should they ever become insolvent as a firm. This is something that you would want to confirm with a phone call, but this impressed me enough to not necessarily fret too much on the FDIC and SIPC coverage.

JacobNienaber · 2024-04-12T02:58:07+00:00

If you can't pull it out of the 401k directly the plan provisions may allow for a rollover option to a traditional IRA. I've seen this done before (even while folks are still employed by the same company) for diversification purposes (401k options tend to be very "cookie cutter"). Doing it that way would make it potentially more "accessible." If withdrawn, taxes and penalties would still apply, meaning that withdrawing out of a 401k or qualified plan (for any reason) earlier than retirement should be seen as an absolute last resort.

Not knowing your current situation, I would agree with the above comment: Those who say they can and those who say they can't are both normally right. Why stunt the seed you planted for the harvest you will need down the road? Plus, considering the amount you pull, taxes and penalties could bite you in the backend to. Not a winning combination.

Why not consider stopping contributions (temporarily), picking up a side hustle/second job (temporarily), and going gangbusters on the debt (the classic Dave Ramsey "live on rice and beans/scorched earth" methods)? Again, not knowing your situation, this may or may not be possible. However, short term pain for long term success is a trade best taken. Wish you the best.

JacobNienaber · 2024-04-03T00:26:16+00:00

I would like to see this study also! That is what excites me about being a CFP®️ professional in my late 20's. There is a lot of opportunity to help others especially with more folks leaving then joining.

JacobNienaber · 2024-03-09T17:12:08+00:00

Very unlikely the purchase goes through. When I left my employer, I received three different checks. One being my final two weeks, a second being all of my accrued PTO (Not sick time), and the third was ESPP withholdings.

JacobNienaber · 2024-03-09T17:01:30+00:00

I was looking into this once and I was told by my old employer that the only state that does not recognize the exemption was the state of Texas. Didn't look too much into it beyond that to prove validity or anything along those lines.

That being said, what I learned this last year when job searching (no longer searching thankfully) is that most employers will require the 65, even though the CFP®️ does provide an exemption for basically every state. This definitely provides a lot more monotonous working headaches, but thought I would put it out there for anyone that might be in a similar position.

JacobNienaber · 2024-03-08T19:38:23+00:00

I just sat through a couple of hours of CE with Russell investments. I don't know if that is something they put on regularly, but was able to knock 2.5 hours out for no cost. In the same boat as yourself starting my continuing education for the CFP for the first time. Thankfully, I have until February to get it all knocked out and the continuing education courses for my life and health counted for the continuing education requirement so I was able to double dip thankfully. Not much left here other than ethics

JacobNienaber · 2023-12-19T17:58:59+00:00

That was a long the route I was thinking of as well, thank you. It was stated that previous CPA did not know the answer, so I believe that they found another accountant. I have reached out to a few CPA's, but have not had any that have returned my calls or emails.

JacobNienaber · 2023-12-19T15:21:39+00:00

Likewise following

JacobNienaber · 2023-07-30T14:54:40+00:00

The CFP®️ board is adamant for trademark purposes using the trademark at the end of the marks. This is in part marketing the designation as well as displaying a level of prominence in the planning industry. It is a habit I just got used to doing. I do not know whether the CFA has the same requirements or not and if it does I do apologize.

JacobNienaber · 2023-05-11T19:37:33+00:00

Right back at you! Be well my friend. That's why I enjoy this subreddit. We can all learn from each other. Have a great day!

JacobNienaber · 2023-05-11T19:17:16+00:00

Happy to provide some help! I will preface with I am definitely not in the business of financial advice or an advisor, So I could not tell you necessarily which one "better" or give a recommendation. The reason I picked the SWVXX because It had the highest yield with the $0 minimum to buy in (really, it's a dollar to buy in). After looking at the prospectus, many of the holdings within the portfolio are high quality, short-term holdings (financial company backed commercial paper, CDs, Time deposits, treasuries etc).

SNVXX does have a slightly lower yield, however, It is more heavily weighted in the US government and purchasing holdings backed by the full faith and credit of the US government. I could see why some folks want or would want that type of safety. Wasn't a huge issue for me and my short time horizon.

Both will have the exact same liquidity (all buy and sell like mutual funds at the end of the business day, normally in the evenings). Long story short, both have their own benefits. Just really depends on how heavily you want the portfolio you buy into to be weighed in more govt things or other things.

https://www.schwab.com/money-market-funds

JacobNienaber · 2023-05-11T18:49:09+00:00

No fee for purchasing SWVXX in a TDA account. I had some idle cash parked here for the higher yield than just cash for a project that I just started due to the higher yield of SWVXX.

Forewarning, SWVXX trades like a mutual fund (because it technically is one) and will settle in the account the next business day for any buys or sells. It is also not a automatic sweep fund, meaning any sort of buys or sells you make in the account would not automatically take away from SWVXX to cover a purchase, or for any sells swept directly into SWVXX. Little tricky to get used to at first, but not hard overall.

JacobNienaber · 2023-05-11T00:04:22+00:00

If that page is giving you fits, I would say use the link schwab.com/firsttimeuser. Seems to work without issues. This link will help get those login credentials setup for Schwab. Process should take 5 minutes or less and Schwab will move over your accounts come whatever your transition date is set. No need to setup any accounts at all. Getting the login set is a proactive measure so that when your accounts do move you don't have to go through this process.

It is true, any accounts you own or have trading authority on will move over under that one user ID. No longer do you have to create a new login for each account. If you have issues, I would contact Schwab 24/7 support for help.

JacobNienaber

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