The markets in May were marked by ongoing volatility. Inflation, questions over the direction of monetary policy, and slower liquidity growth impacted equities. The ongoing debt ceiling negotiations cast a cloud over financial markets for much of May. Investors worried about the ramifications of inaction as the June 5 deadline loomed. Even after the president and House speaker reached an agreement toward the end of May, concerns persisted over whether Congress would pass the bill to lift the $31.4 trillion U.S. debt ceiling.

Tech shares and artificial intelligence stocks captured the attention of investors in May. One prominent chipmaker in particular saw its market capitalization briefly touch $1 trillion, with its stock up 36.0% in May. The Nasdaq was the clear winner in May among the benchmark indexes listed here, while the S&P 500 was able to eke out a monthly gain. The Dow, the Russell 2000, and the Global Dow finished the month lower. Year to date, the Nasdaq was well ahead of its 2022 closing value, followed by the S&P 500 and the Global Dow. The Dow and the Russell 2000 have fallen below their 2022 year-end values.

Preparing for a Seamless Transition: The TDA Schwab Migration

As we approach the summer months, the TDA Schwab Migration is drawing near, and we want to ensure a smooth and seamless transition for you and your clients. Beginning in June, Beacon Capital Management will provide increased communication and training to support you throughout the process. Our goal is to assist your clients in embracing the new system and minimize any disruptions. We are closely collaborating with TDA and Schwab to make this transition as seamless as possible. At the moment, there are no additional forms that clients need to sign before the conversion.

Communication to clients is expected to be ongoing throughout the summer. We provided a link to the client communication schedule (Client Communications Schedule) for your reference. Additionally, Schwab has supplied Client Talking Points that you can utilize to address any questions or concerns your clients may have. We provided key dates and important considerations for your reference below.

Key Dates: Please make a note of these dates and ensure you and your clients are prepared for the transition.

• May 19 – Beginning on this date, new accounts must contain an Authorization Form to transfer to Schwab.
• Beginning of July – Clients will receive notification confirming that their accounts will be moving to Schwab over Labor Day Weekend.
• Beginning of August – Clients will receive a request to setup access to Schwab’s website, Schwab Alliance.
• August 18 – This is the last day to open new accounts at TD Ameritrade.  Moving forward, you will be able to begin opening new accounts at Schwab.
• August 25 – This is the last day to submit incoming transfer requests.
• Labor Day Weekend – Official Transition to Schwab

Expected Changes and Important Considerations:

• Account numbers: Account numbers will undergo a new format (e.g., 1111-1111).  Beacon Capital Management will provide advisors with the updated account numbers in advance.
• Bank Instructions and Systematics: All existing bank instructions and systematics set up on your TD Ameritrade account will automatically transfer over to your clients new Schwab Account.
• Payment Updates: If your client has set up direct payments from their bank account to send funds to their TD Ameritrade account, they will need to update those instructions to their new Schwab account. Payments will continue to be received for 60 days after the conversion, allowing you ample time to make the necessary adjustments. Any payments set up to pull or send money from an external bank account will be automatically transferred to their new Schwab Account.
• Online Check Deposit: With the migration to Schwab, adviors will have the convenience of remotely depositing checks directly into clients’ accounts.
• Withdrawals: It’s important to note that Schwab requires trades to settle before funds can be sent out to clients. This may result in a delay of 2 – 3 days compared to your current experience.
• Data Feeds: TD Ameritrade and Schwab are collaborating with third-party aggregators to provide a cross-reference file to facilitate the conversion of account numbers. If your firm utilizes an aggregator, we recommend reaching out to confirm their engagement with Schwab to ensure a seamless data transition.

If you have any inquiries or require further assistance, please do not hesitate to reach out to us at service@beaconinvesting.com. We are here to support you throughout this process and aim to make this a seamless transition for all parties.

We are excited to announce Beacon Capital Management is a 2x finalist in the 2nd Annual RIA Intel Awards, both for RIA of the year ($1 billion +) and Chief Investment Officer of the year, Chris Cook! We are honored to be recognized among some of the most innovative and influential wealth management companies and individuals.