The entire biz model is based on sc--wing over investors that have cash balances in their brokerage accounts (not their bank accounts).
How is this doing what’s best for clients and how long can this continue?
6 replies (most recent on top)
"Schwab certainly puts the douche in fiduciary"
This is gold - LOL
Post from TheLayoff.com
I come from a huge family on both sides - within a span of 3 days, Schwab let almost $6.7 Million walk out the door- that’s how Boomers move their money
Not sure how completely ra-ing clients on cash…I mean ripping clients off on cash is part of Schwab’s Fiduciary duty but Schwab certainly puts the douche in fiduciary. I’m sure once clients figure that out they will keep their assets here. They are starting to figure that out. Cash sorting continues nearly every month against all the “trends” that Walt keeps seeing in the opposite direction. Except for December which of course nobody tax loss harvests or pays taxes. during. It is surreal.
How are you going to convince a boomer to move their cash
Possibly forever.
See the theories of “little competition” and “others sc--wing over more”.
The real con job is in funds where customers surrender their voting power to the custodians. And funds themselves that rarely outperform indexes. Plus private client fees where, again, there’s underperformance.
Oof. Lack of creativity and real business experience?