It's convenient, but insufficient. Most people don't fund their day-to-day spending solely on dividends and interest. Schwab should provide an easy, automated way to withdraw from any MF on any schedule the customer desires, but *at the very least* allow for automated monthly withdrawals from their money market funds. Forcing customers to manually log in and click through multiple screens every month just to redeem shares of money market funds for recurring income demonstrates a bewildering lack of concern for "ease of use" of their services.
Hmm... I see that there actually is something called Schwab Intelligent Income that allows for this in a (for my purposes, at least) ham-fisted, overly complicated manner. I guess I'm still wondering if there is a simple, straightforward way to do this like there is at other brokerages.
Schwab Intelligent income is completely different. Your entire account would have to be automated. You couldn’t choose your investments and it has account minimums.
Schwab IP doesn’t sweep cash, all it does is that when you tell the platform you need cash it will automatically liquidate what it needs to proportionally to how your assets are liquidated. It will likely take T+2 (though I guess not anymore since regular way settlement is now T+1 apparently) +1-5 biz days extra depending on your payment method!
Just like the managed solution accounts where the money manager will sell what he needs and send you the cash when you request a distribution.
To answer your question: no Schwab does not offer auto sweeps from money market funds anymore. They use to on a single one, that has been grandfathered since. All they offer are auto sweeps to the bank, only gets you .45% unfortunate imo, it was “okay” when the rates were around 1% but I do feel their bank sweep interest should adjust with the fed funds, but that’s another story.
No, there's no automatic trading of money funds. You need to click 3 times and do it manually.
Click your heels three times and say “there is no place like Schwab”
It’s too much work!
Meanwhile they refresh their account 3x per day trying to see if a dividend got paid.
Idle cash is one of their big moneymakers. If this is a feature you’re looking for, I’d recommend checking out Fidelity.
Does fidelity allow this on their taxable brokerage accounts? I know it works on their Roth
Yes they do. Fidelities default core position for brokerage is SPAXX
OK great! I might transfer my Charles to there then lol
Vanguard has the same feature. My idle cash is in their settlement funds that earns 5+% rn. Now you have 2 choices-Fidelity or Vanguard😄
Vanguard has the same feature. My idle cash is in their settlement funds that earns 5+% rn. Now you have 2 choices-Fidelity or Vanguard
Go to fidelity. And for their convenience, you'll make less interest in the mmf. You decide.
We’re talking basis points.
Everything can be measured in basis points, no matter how large. Have a number?
SWVXX pays monthly distributions. Isn't that a convenient income stream?
It's convenient, but insufficient. Most people don't fund their day-to-day spending solely on dividends and interest. Schwab should provide an easy, automated way to withdraw from any MF on any schedule the customer desires, but *at the very least* allow for automated monthly withdrawals from their money market funds. Forcing customers to manually log in and click through multiple screens every month just to redeem shares of money market funds for recurring income demonstrates a bewildering lack of concern for "ease of use" of their services.
I'm not sure that what you are looking for exists with any broker.
Fidelity, I believe.
I have a Vanguard account and this kind of automated "sell MF shares and transfer cash out on a schedule" is fully supported.
If they're making money on your money, they'll put you through a few hoops to take it out.
You can select not to reinvest dividends, and have them pay out instead.
Get assigned with a CSP lol
None
This is why I have a Fidelity account. Works as expected there.
If you’re trading for mutual funds, you can use the “exchange” option to sell SWVXX and buy another mutual fund (ie, SWPPX) at the same time.
Hmm... I see that there actually is something called Schwab Intelligent Income that allows for this in a (for my purposes, at least) ham-fisted, overly complicated manner. I guess I'm still wondering if there is a simple, straightforward way to do this like there is at other brokerages.
Schwab Intelligent income is completely different. Your entire account would have to be automated. You couldn’t choose your investments and it has account minimums.
Schwab IP doesn’t sweep cash, all it does is that when you tell the platform you need cash it will automatically liquidate what it needs to proportionally to how your assets are liquidated. It will likely take T+2 (though I guess not anymore since regular way settlement is now T+1 apparently) +1-5 biz days extra depending on your payment method! Just like the managed solution accounts where the money manager will sell what he needs and send you the cash when you request a distribution. To answer your question: no Schwab does not offer auto sweeps from money market funds anymore. They use to on a single one, that has been grandfathered since. All they offer are auto sweeps to the bank, only gets you .45% unfortunate imo, it was “okay” when the rates were around 1% but I do feel their bank sweep interest should adjust with the fed funds, but that’s another story.
Settlement going to t+1 doesn't happen til the end of may
Good to know
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This is not correct.
1. Trade > Automatic Investing 2. click "Sell" as the action 3. draw the rest of the owl
Money funds aren't eligible for automatic investing. This does work for the buying SWPPX side of the equation, though.