Tim482
Contributor

Why would members want to to continue to pay USAA higher fees for another year rather than transferring our accounts to Schwab right now? 

I posed this question to my wealth manager - he said that he would pass it up-the-line. No response to date. 

Also I asked what is the benefit to the investing member NOT to transfer now? No response. 

A final query was about the distribution of the profits from the sale of the Investment company. Why will it not directly benefit the investing Members (who pave built it up and paid premium USAA management fees for years) instead of the Membership as a whole? Again, no reply. 

I have to wonder about the need for a wealth manager who cannot respond to simple queries. 

I, and the other investing members, have been paying management fees for years. Now, we cannot get a straight answer. 

7 REPLIES

Tim, I agree with you. Why is it that usaa can't answer simple questions? No one seems to know what is going on. I feel like you where I feel usaa has left investors in limbo because to buy fidelity funds makes no sense given the deal, but usaa isnt willing to give us Schwab funds commission free either. I believe that the deal is ultimately great for usaa members but this hold period blows. Please share what you find out.

To shed some light on Schwab's view of what will go down....although we know that no one knows for sure, it appears that the days of your checking and brokerage being integrated are over, unless you want to use AMCO, which is the Victory Capital end. Schwab has been telling me that they highly doubt that there will be any access through the USAA site, therefore we will have two separate accounts, so the days of integration and keeping everything simple is over. This revelation is making me consider whether I want to continue on with USAA or not, given that the big reason for being here is the integration, it sure isn't the high interest rates for deposits or low for loans. Ultimately I have made no decisions, I have opened up a Schwab account to test them out, no harm as I would rather do this than continue here and just bank cash in my IRA for an ultimate move there anyways, but I do hope USAA stays true to their word that they are going to use the proceeds to offer us something here, otherwise, it might be time to look elsewhere for all of it.

To continue, it appears that we will not get the integration with Schwab, as we do with Victory Capital. So yes, they sold our accounts to a better brokerage house, but it appears they believe we will not access it here, which means moving makes all the more sense.

I'm trying to figure out whether there are better alternatives.

 

The loss of the Asset Management Account has probably cost me a few hundred dollars since I now have to move money back and forth from brokerage several times a month.

 

Now, it looks like I won't be able to do that.

 

But ... I am so tied to USAA banking.  This is really a mess and I don't think they understand the impact on members and that it will lead to the loss of banking business, and loosen loyalty to the USAA, meaning loss of insurance business.

 

This is certainly concerning to read and we wouldn't want a member to feel this way, @TravGuy. Your feedback is truly valued and appreciated. I am forwarding this to the appropriate area for further review and support. Thanks for hanging in there! ~ Steven

Steven,

 

I second this, the reason USAA members are here is for the integration and selling off divisions is all well and good in the name of better options, but if that means that there is no longer integration and members have to use multiple logons, that kind of defeats the purpose of using USAA. I have not been with USAA long enough, but it seems to me that older members state there was a time that USAA was on top in regards to products, rates, customer service, etc. but it appears those days are over.

 

I do not need the hand holding that some do, but it is frustrating to call in and really never receive an answer to my questions, when I do have them. Decisions are made without the membership base opinion or desires taken into account. These two deals are perfect example, instead of sharing with the membership base what was going on and USAA plans to cut of the investment branches of the USAA tree, a decision was simply made. I have never been reached out to by a Victory Capital individual, not that I am truly desirous of this, but the communication and clarification as to how this changes things is not clearly stated. The page states you can continue on as you have with your accounts. Maybe for now we can, but can you give clear guidance as to the affect Schwab is going to have on our accounts and what determines if our accounts are moving? That is a question at the forefront of my mind and one without an answer. I don't care how things are now, because that is not how they're going to be once the deal goes through, or if they are going to be the same as now, make that known clearly, not this ambiguous language in the answers given where it could be taken any number of ways and doesn't seem to clearly answer anything. At least come out and say we dont know how this will affect you, that is better than saying nothing changes now, well no kidding......

If Schwab is on your potential candidate list for brokerage services and wealth management then just wait and see if the deal goes through, let the transfer take place, and then consider your options

 

Closing and transferring accounts with a Schwab representative will likely be just as easy as going through a USAA representative

 

If you are concerned about Fidelity funds having trade fees at Schwab, figure out the tax implications on any gains versus a $5 sell order, sell the shares that make sense before the conversion, hold the cash in a money market fund, and then buy equivalent commission free funds at Schwab afterwards

 

If Schwab isn't on your candidate list, then transfer out of USAA at your earliest convenience

 

I seriously doubt USAA will communicate much before the deal closes since there really isn't anything to actually say other than a deal is pending...