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Regular Contributor

I am as annoyed with USAA as I have ever been. Did I hallucinate all the communications from USAA telling us that the deal with VC was finalized? I moved my entire brokerage account to Fidelity (something I never wanted to do) because I was so dismayed that USAA would do business with a company like VC.

 

Did USAA sell part of the brokerage division to VC and part of them the Schwabb? I have no problem doing business with Schwabb and would have never moved my acct if I had known that USAA was partnering with them.

 

 

 

 

7 REPLIES

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@Bandit 7, This is concerning to hear you feel this way and I'd like to have these concerns addressed. I will forward your message to the appropriate area to review. Thank you for the opportunity. 

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@Bandit 7, VC bought AMCO, which strictly was USAAs investment products (mutual funds, 529s, ETFs), you still could have continued to purchase Fidelity funds here in the interim. Schwab just bought IMCO, which was the brokerage, including the fund marketplace, so that'll change a bit, you'll be able to get Schwab versus Fidelity commission free, but that is the difference. 

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 wrote:

@Bandit 7, VC bought AMCO, which strictly was USAAs investment products (mutual funds, 529s, ETFs), you still could have continued to purchase Fidelity funds here in the interim. Schwab just bought IMCO, which was the brokerage, including the fund marketplace, so that'll change a bit, you'll be able to get Schwab versus Fidelity commission free, but that is the difference. 


Jimmyb84, Victory Capital (VC) has so much debt with this purchase (about $1.4B) if I read correctly. That's a lot of money and I bet it will come from USAA's investors in the form of higher management costs--something members have been complaining for some time. That's one reason why I left them a couple years ago. According to the Wall Street Journal (online article dated 15 July 2019)--Charles Schwab & Co. was reportedly going to top VC with its own $2 billion deal to buy the two remaining USAA financial services units--wealth management operations and brokerage units. I think this latest deal was even quicker than the VC one.

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I don’t intend on purchasing anything from VC, I intend on waiting for the Schwab deal to close and going there or maybe I’ll consider Vanguard

Sounds like a smart move. Let me know how it works out for you. I did like the convenience of being able to move funds between my USAA bank accounts to USAA's Investments. I wasn't satisfied with the returns and high cost ratios for their mutual funds. A couple years ago, I started using my NFCU accounts to move money to Vanguard after I closed all my banking/financial business with USAA. I do it from Vanguard and the transaction is pretty quick and easy, and my returns are much better than I had expected. I think it's going to take a little for the Schwab-USAA setup to take hold to the point that makes everyone comfortable enough to invest again. I'm still not convinced the VC relationship will make things better for investors in mutual funds. Just speculating--but my bet is that VC will be using USAA's investor's money (and returns) to bail themselves out of the $1.8B debt.

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Oh, Bandit 7, I (and clearly many other long-term members) are right there with you in our disappointment/frustration over USAA selling out to Victory. A transfer online from mutual funds into checking once took 45 seconds online. Two days ago, I was on HOLD with Victory for over 45 minutes to make a transfer to pay for my son's education. This is just one of many problems we have had with our once-beloved USAA. We are seeking options in moving all accounts that we have held for 20+ years over to our local credit union. So incredibly disappointed. 

Best of luck to you, fellow member. It feels like the USAA family is break up!