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Schwabitrade

(This is a temporary page to Fident’s family – please do not share. It will be taken down within a week.)

If you follow financial media at all, it is likely that you have seen news about Schwab buying TD Ameritrade in a $26 billion all-stock deal. “Schwabitrade” is the term some are assigning to it.

Many of the Fident Family custody their accounts at TD Ameritrade (a custodian is a financial institution that holds securities for safekeeping in order to minimize risks associated with theft or loss.) So this may have caught your eye especially.

I’m aware of this proposed purchase, and the potential impacts it could have both on Fident Financial as a firm, and for individual clients who use TD as their custodian.

A few thoughts:

1- The deal is not final. Although Charles Schwab announced plans to buy TD Ameritrade, the deal has yet to be approved by antitrust regulators. This means it is too early to speculate about what the terms will specifically mean.

2- If it is approved, it will take time. Some of the reports I’ve come across are estimating that pending regulatory approval, the integration of the two firms is expected to take 18 to 36 months after the deal is closed. This means it will likely be a significant amount of time before any of us will be affected by this merger. When TD Ameritrade bought Scottrade a number of years ago, this was a similar timeframe.

3- There may be advantages. Some analysts believe the combined firm may be able to cut costs, stream new revenue opportunities and improve the platform. Only time will tell. Both Schwab and TD Ameritrade have been around for a long, long time and both are excellent institutions who have served clients and advisors well for decades.

4- In typical fashion, it seems like a good time to remind myself (and clients!) to stay focused on what we can control. Just like we cannot control the markets, control the economy, and control many other things in life – we also can’t control this merger.

With that said, please be assured that I am looking out for your best interests and will inform you the moment I perceive something that may directly affect you, or if any adjustments need to be made. A custodian plays a very critical role in our financial lives, and I will certainly be designating time to dig into these details and updates as they become available.

Thank you for the confidence you have placed in me.

Thank you for being a part of the Fident Family.

I consider it a true honor and privilege to serve each of you.

Gratefully,
Jeremy