Make sure you do not keep uninvested cash in sweep accounts and move it to higher yielding options. Schwab is making money out of your ignorance or laziness.
https://www.barrons.com/advisor/articles/charles-schwab-stock-sweep-account-cash-sorting-925b17bb
The rationale used by the c-suite on this is that fidelity prevents access to cash for trades, which is not in the clients benefit. Of course that’s not the case, but it’s what I’ve heard said to a room full of MDs who just nodded along. Schwab embraces the “challenger mentality” and “through clients eyes” only to the point that it lines their pockets. Fine, but at least be honest about it. The lack of integrity at the top is what led me away from Schwab.
Definitely “through client’s eyes” if the client is brain dead and has never heard of Fidelity handling this automatically for you.
Most of my uninvested cash goes into short term treasuries. I rarely leave over $1000 sitting in cash unless I am about to make a move with the money.
And before index fund bros start telling me this is a bad idea, some of us have different time horizons than the S&P 500 and want more diversification.
May be old news but .....https://www.thewealthadvisor.com/article/charles-schwab-sued-breach-fiduciary-duty
Of course they make $$$ on this - lots of it - that is why they have 3 banks. When the CD rates went up a lot of investors moved cash into that - not good for Schwab - and maybe due to the recent vote the country had people went to cash for a bit of time to wait out the market. They take the cash and lend it out at a higher rate - they like your forgetfulness