Tactics To Increase Your Brokerage Cash Yield 10-400% -- Make One Simple Change

Your brokerage settlement/sweep account is designed to keep your cash from bigger earnings to make the brokerage a lot of money. With one simple change you can watch your uninvested cash earn 10-400X!! See which brokerages are ripping you off and which two are not. Also see a live demonstration how to make this simple change at Schwab in just a couple of minutes

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*DISCLAIMER*
-All of the content found in this video is for ENTERTAINMENT purposes only. We are NOT financial advisors and are not responsible for any losses in your personal investing experience.

[OchoVerde]

When I first started in schwab, the sweep went into the money market fund.

[Curvedhooks]

I have checking and brokerage at Schwab since 1997. Schwab has never given me a reason to leave. I use the Schwab Advantage Money Fund to park my cash. It is a mutual fund that is pegged at $1.00 When I need to move money it takes a few clicks. The money is available the next day. Wow, that is burdensome. I don’t get burnout. Most of us do those “clicks” a hundred times a day already.
Thanks for your time to explain these investment themes. Advise, not recommendation. We make the decisions.

[jeeplife]

Great video! I just got moved to Schwab and didn’t realize the sweep account got such a crappy rate. This video just paid for my yearly YouTube subscription! Thank you!

[jag]

Great video! I just stumbled on your channel and now subscribed. My TD Ameritrade will soon become Schwab and I didn't realize how I'm being ripped off on my cash. Needless to say I probably will move my money out of Schwab. Thanks!

[joehook]

I think "ripping people off" is gross mischaracterization. There are plenty of easy ways to earn market interest rates, including money market funds, Tbills, Tnotes, as well as ETFs that hold them. Anyone who has a brokerage account should be engaged enough to manage this with even minimal effort. I do agree that Vanguard's rate for settlement accounts is a nice convenience to have.

[davidsco]

Uhh, you forgot to mention the fact that at Schwab, if you then want to invest that money, you first have to sell from that mmf. That will take a day, so you can't easily invest that money when you want to

[the-eye-is-watching]

I have been a customer of both Fidelity and Schwab, both have restricted my account due to the fact that I reside in the Philippines as a US citizen. Now I am with Interactive brokers which is currently paying 4.58% on cash on hand. If you have excess of 250K in cash, one can opt to have it spread out to various banks so that the FDIC insurance is applicable.

[udayhomeful]

Son: Thanks dad! Thank you for making my cash compound.

Father: You're welcome.

Brokerage firm:Hey! You can't do that. That's not your account. You can't do that in your son's account.

[FA-]

One should also take into account the money funds’ Expense Ratios. The Schwab SWVXX is a relatively high 0.35%, while Vanguard’s VMFXX is 0.11%. Schwab is charging three times more than Vanguard. I wonder how many investors realize that?

[aperson]

I think the best way is to actually buy Treasuries through a broker, 4 mos, to 5 yrs US Treasuries. 4 mos Treasuries are 5%. You can even buy 1-2 weeks treasuries that are approaching expiration using the open market

[sirnamelaw]

Can you elaborate on the liquidity of the funds that is moved/traded from sweep to these recommended funds? In a sweep, you simply can use it like cash to buy securities anytime. But if you used them on these funds, don’t you need to sell them, wait for there settlement back into sweep, and then you can use the funds? Can you cover that procedure? Thanks.

[Kid_Ikaris]

Good info to pass on! I was already in Vanguard thankfully.

[Steven-lk]

More than likely you are preaching to the choir, but by the comments there are enough newbies who found this educational. Well, I did too, but I never let my Schwab sweep go over $1000 for long. Your videos the last 6 months have really been good.

[CL-tknl]

Thank you so much. I have been wondering about the cash interest in my Schwab account.

[dwaynediesel]

Thank you for taking your time to help us! Gotta check my Fidelity account.

[jenniferkirby]

I got moved to Schwab by the TD buyout. Never left more than 25 bucks uninvested. But then, I have a jumbo MM account at my credit union as a "dustpan"

[atkim]

Thank you for this - wish I discovered it sooner! I’m in the same situation as your son with Schwab - thousands just sitting there collecting dust. But question: I use a roboadvisor that automatically rebalances my portfolio to a certain risk ratio (moderate aggressive). If I converted all my sweep cash exactly as you did, would that trigger a giant rebalance where it involuntarily sells my stocks to always keep my cash sweep balance to what appears to be 11% of my entire portfolio?

[GeekyMom]

What’s the difference between schwab and fidelity? Are you saying that both need us to manually buy mutual funds to get higher interest, but with fidelity we only need to set it up once and it will be automatic subsequently, whereas schwab we need to this everytime? For both schwab snd fidelity, we cannot use the funds in the mutual funds to place a standing order? Need to sell them first before placing a limit order gtc? And would you also look into Ally invest? Thank you!

[gbinman]

I trade options. I park surplus cash in TFLO or SHV. I have been thinking of switching to SPYI. Thoughts?

[Gary]

Very good stuff to know. With a Vanguard brokerage account can you trade any stock or ETF or just Vanguard funds?