Brokerage Account Sale

Lets   see if I got this right.

USAA sold their brokerage account to Chas Schwab for several billion dollars.

Chas Schwab got millions of new accounts and billions in account dollars in exchange.

What did the USAA members whose dollars and account were transferred  get.

I  feel that the members who entrusted their funds to USAA should share in some way in the widfall that USAA recieved from the sale of the members assets.

Isnt that the way to do it right.

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19 REPLIES

You got to stay a member of USAA and a virtual pat on the back

I would have been OK had my account landed in Schwab, but my usaa conerstone fund ended up with Victory capital,I was not pleased..never heard of victory and the ER jumped up to 1.14%. hard to contact victory..hard to set up online account with victory and they never ansered phone or emails. Thankful i was able to get vanguard to do a broker to broker transfer of my mutual fund,that way I did not have to deal with victory capital. why usaa added victory to the mix is beyond me. they should have just moved all accounts to schwab. victory capital is terrible high fees sad that wells fargo is probably a better choice than victory and wells Fargo is basically ran by crooks.

@Army 37 yrs BJD, thank you for reaching out and providing feedback regarding your recent experience. I'm sorry to hear of your dissatisfaction with the transition to Victory Capital. I will be sure to share your feedback with the appropriate department for further review. - Robyn

I was not even aware that schwab was an option. usaa moved my ira mutual fund ..usaa cornerstone moderate growth to Victory capital.. I could not contact victory without a 2 -3 hour wait time they did not respond to email either and the expence ratio for the conrenerstone fund jumped from 0.32% to 1.14 % . I also struggled to get my Victory account established and had password reset issues. I finally said EFF it and called VanGuard and they actually answer their phones over there and when i send Vanguard an email they answer usually the same day sometimes within the hour. I did not want any contact with the crooks at Victory so Vanguard did a broker to broker transfer of my funds.. Now I am in Vanguard Star fund and Vanguard Wellesley ER is cheaper too. I think Star fund is 0.22% wellesley is 0.24% .And these funds do way better  I am retired so these are taxable so i need a fund that does well and the profits dont get sucked up by fees.  I went with vanguard because I did not no the Schwab was already in USSA.. ohh well no regrets about leaving Victory  they are a poor excuse for an investment company that's for sure. So far i still have checking and saving and car home insurance with usaa..but there are other options like Navy credit union and local credit unions in my own city that could probably do just as well or better. usaa does not really offer any more than regular credit unions do. Usaa lost lots of investers when they switched to Victory Capital....the ceo and top executives should be ashamed of themselves.

Selling USAA "members" resulted in Billions $s gain for USAA. So the celebration is on at USAA. All the best in 2022.

SSA, just like the military play the waiting game.  i received a message last week (17th) it stated disrubution to be made mid December.   ok now we wait, it's basicly past mid December so where is it?  now i have a question, both of my son's are members the oldest get the SSA and when i joined i got the SSA.  however my youngest has never received it.  heck i don't even know how i got it, so i can't tell him.  so how does he get into the SSA?

The way that I understand it, it is basically a rebate of unused insurance premiums. If USAA does not incur losses as forecasted, the difference is returned to members. In the past, it was all used premiums. Now, it is a percent, and USAA put the rest aside in an account designated for the member but available for USAA's use (and probably collects part of the interest as well).

I got a distribution check for $107.00 this year.. I call it Beer money.

Hello @MG1976, we certainly understand your questions about your distribution and how you received yours.  Disbursements are still processing throughout the week and for more information on Subscriber's Account, please log into your USAA.com profile and in the search area (Magnifying Glass Icon) enter "Subscriber's Account" for detailed information.  Thank you for your membership and allowing USAA to serve yours and your family's insurance needs.  ~Marco

Thanks USAA for hiding this infomation. 

@pinetree, I would want to be sure we are forwarding any concerns you have to the appropriate area to review. I would like to understand your post better. Please provide additional details. Thank you. ~Suzy

I have been a member for 30+ years, had funds with Merrill-Lynch- that sucked. Had funds with Fidelity, they sucked worse, no response from anyone on my accounts. I closed those and moved everything to USAA many years ago. I have never had an issue, calls picked up immediately, great service. So why do you think you need to get any part of the money when USAA sold their brokerage firm? Did you get money when one bank bought another? Did you get any part of the one-billion dollars profit that Publix made in the second quarter of 2020 due to the pandemic with people buying a thousand rolls of toilet paper? Walmart buys thousands of containers of fruit, do you get the profits going to the CEO or board, no you see the market place in your region for that apple. You have stocks, you get a dividend as a stock holder. Companies buy up companies all day long, do you expect something for it?

Don’t members (owners) share in the gain: lower rates on loans, lower rates on insurance, increase rates on savings, increase in Subscriber’s Account distribution and alike?

"MEMBERS" are not owners of USAA. All the best in 2022.

@jgvx2,
Know the feeling. I decided to do to USAA what they did to their members by selling off their investment business and making big money in the process. I moved to Vanguard a couple years before the sell-off and came out ahead in the process. Much lower fees and better returns. Also dropped all the banking during the same period. Mr Parker's salary at the time was going up at the expense of the membership so I decided I didn't want to be part of that anymore. Yes, the subscriber savings (compared to last year) really took a hit, but USAA's newest CEO (never had any affiliation with the military) seems do be doing quite well with his large salary and he'll probably get a generous raise in 2022. I guess I'll have to give myself a raise by finding a different company to keep my vehicles and home covered.

To USAA CSR: Not interested in receiving a call on any of my comments (which you feel are concerns) . Please don't call me. Thank you.

Well stated. Thank you. Amen! Let the party rave on.

I even recieved $40 less than last year for my end of year distribution.  No claims and no late payments, just like the past 25 years.

Not a jelly of the month club, but with the decline of customer service, it's another reminder of the decline of USAA.

Hello @Sand Afficianado, thank you for your USAA membership.  We truly value your on-time payments and your clean driving history, I do certainly get your concerns about your distribution.  For more information regarding distributions, please reach out to our insurance specialists at 800-531-8722 to address your account as well as answer any additional questions/concerns you may have.  ~Marco

USAA forcasted that selling the so called "members" off would result in benefits for the future. Well, of course this didn't include the "members" that enabled USAA to explode to enormous size due to USAAs powerful and loyal customers. So now the party is on to spend the huge amout of money USAA banked to benefit the big guys bank accounts and to try to keep what's left at USAA looking normal for awhile. The next "member" benefit could be a complete sale of whatever is left of USAA. Stay on the lookout for slim pickings for the "members".  Merry Christmas.