My Morning Threesome with Schwab and Sergio
Correction: Sergio sent me an email letting me know that I was incorrect when I stated that the Schwab High Yield Checking Account was not FDIC insured. It totally is. Also, there’s insurance on my brokerage balance if the company goes out of business. That’s called SIPC insurance, which I’d never heard of before. Here’s a PDF that explains the Charles Schwab investment insurance.
See, I told you they were cool. I make a mistake and they’re all “No way, Jen – you’re safer than that!” This is why I love them.
Back to your original post…..
Yesterday I was going on and on about how amazing Charles Schwab is.To make it clear, they aren’t giving me money for being in love with them publicly. I don’t get a better interest rate or toys or even a branded pen (although you think they could pony up a pen, right?)
This morning I got to work filling out the forms to roll over my 401(k) to an IRA and open a brokerage account attached to a high-yield checking account.
Wouldn’t you know it, but I had more questions.
So I see on my first form there is a number to talk to a retirement account expert. I’m a little leery after yesterday and the “uh” filled surfer that was my rep at ING, but you know what, nothing ventured nothing gained – I called.
Sergio answered on the second ring. Did you hear that. RING. No menus, no dialing in my social…there was me dialing the 800 number, a phone ringing, and Sergio picking up the phone.
It only got better from there. We set up my IRA over the phone in about 20 mniutes. He sent me an email somewhere in the middle and I had to go in and choose my username and password for online access, but that was super easy.
Then he told me exactly what forms I needed to fill out and take to my local Charles Schwab office (because that saves me postage!) and the approximate times it would take for the rollover and the new account setup to occur.
Sergio was patient, kind, funny, and smart – he knew the forms I needed and quoted from the first page so I knew I had the right one. He was phenominal enough that my husband (who is off work today for car repairs) looked over with that, “Who are you on the phone with? Cause I know it’s not still the financial guy…” look.
It was the most enjoyable experience, I’m telling you. He knew his stuff, too. No hemming or hawing, he just answered my questions and didn’t make me feel stupid, even though you know he has to answer simple questions like mine every day multiple times.
One thing about the checking account at Schwab – it is not FDIC insured. Not even a little bit.
But my money is gone almost as soon as it goes in my checking account. Some to stocks (which I will still own if anything happens to Schwab FDIC insurance or not) some to my ING savings account (it still beats out Schwab at %2.75 interest rather than %2.2 interest. The rest to bills.
I spend every penny on the budget before the month starts – so money doesn’t just sit in my checking account and if the bank did collapse I’d have much bigger problems than getting my money back goodness-knows-how-much-later when the insurance pays out.
So I’m okay with an uninsured checking account. It has online bill pay, it has a debit card, and best of all, it has access to stocks through the attached brokerage account. Oh, and overdraft protection.
Granted, our credit is pathetic since we don’t have credit cards and I just today paid off a lot of measly debts that were aggrivating and never seemed to get paid….so depending on their requirements for an account, we might not qualify. But usually checking account credit checks want to make sure you don’t owe a bank money or weren’t caught kiting checks, so part of me is hopeful there won’t be a problem.
If you have need of an IRA or 401(k) rollover advice, or want someone to set it up on the phone for you and make it super easy to have an account – call Sergio. Seriously. Nicest guy ever. He doesn’t get extra money for people starting accounts so he’s no-pressure (but he gets love from management and employee perks so it’s in his best interest to help you) – it’s a good balance. Enough perks to make you helpful, but not so many you end up being the used car salesman of retirement plans.
Sergio’s number is (877) 627-7734 x54100 – the best part is I can call him directly anytime I have questions or need help. I have a guy now. When people say, “Hey Jen, do you ask for help when planning your retirement?” I can look at them all knowingly and say, “Yeah, I have a guy.”
Then I will watch them tremble in jealousy for a few minutes before I pass on Sergio’s number. I’m an ass like that.
In the meantime Randy is off to the Charles Schwab local office to drop off the paperwork and the check for my initial deposit has already been sent. I have got to get those funds out of that locked 401(k) and into a regular IRA where I can choose from a mutual fund buffet while the market is tanked and I can make some good money over the long haul.
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