Is this article accurate?
It is portraying the USAA and Charles Schwab agreement as not a good thing for USAA members.
You're assessment the transfer to Charles Schwab not in the best interests of USAA members is correct. My post on how the sale of accounts to Victory Capital - which resulted in substantial capital gains for many members - is yet another example of how USAA Management is placing their interests ahead of USAA members with disturbing frequency.
"USAA Money Market Fund, which has a 1-year yield of 1.93%," will be replaced with Schwab’s bank sweep will provide USAA clients a .26% annual percentage yield - a loss of 167 basis points (1.67%) lower return before management fees. Simply put, $100 invested in the USAA Money Market Fund used to generate almost $2.00 -will now produce $0.26,
Moving to Schwab is fine for those who "day-trade" their account racking up otherwise substanital commissions. However, I suspect this is a very small portion of USAA members. As a result, Schwab is a highly undesiralbe place for those with more liquid portfolios.
Explaining that an extra step is needed was a good point. My reference was to the sale (or subadvisory, haven't checked into the technical details) to Victory Capital and the virtually complete turnover of the securities in the portfolio generating a significant tax bill. That's not how I nor many other client-focused portfolio managers I know would've transitioned the accounts.