Transferring Assets

Asset Transfer Policy

Charles Schwab Institutional is the custodian for Portfolio Solutions Clients. We send you all the paperwork needed to open accounts and transfer assets to Charles Schwab.

All stocks, bonds and cash will transfer directly into your Charles Schwab account. Old securities will be liquidated by our portfolio management team as we restructure your account to the new strategy. You may also choose to sell all securities through your current custodian, although that may be more costly than paying the low commission rates that we have negotiated for our Clients at Charles Schwab. 

Some proprietary mutual funds and limited partnerships will not transfer. You will be notified by our operations team of non-transferable securities. Those items must be sold through your current brokerage firm before the cash value of those securities transfer.

The asset transfer process can take several weeks depending on the type of securities to be transferred and account types. For example, Individual Retirement Accounts (IRAs) take longer than personal accounts. The transfer period depends on the accuracy of the information provided and the efficiency of your current custodian. 

Low-cost Basis Securities

Many clients have securities in taxable accounts that are at a low cost basis. Selling those securities may create a realized capital gain and possibly a taxable event. We understand this issue and our clients' concern about taxes.

Unfortunately, due to legal concerns, a portfolio cannot include securities that are not part of our investment strategy. Any security that an investor places in a managed account will be liquidated and the proceeds will be reinvested in securities that are part of the strategy. If for any reason you do not want specific securities sold, we will arrange for those securities to be moved to a non-managed account opened in the same name as the managed account.

An investor with non-managed assets may want to consider the value of those assets when selecting their asset account in the managed account. For example, an investor with a large non-managed equity position may want to balance that risk with a less aggressive managed strategy.

Investors holding securities in a non-managed account are solely responsible for those assets. Portfolio Solutions does not track non-managed assets nor considers those assets when making investment decisions in a managed account.

Cash Policy

New cash and securities transferred into an existing managed account will be automatically invested in the asset class where needed. If, for a special reason, a client does not want the cash invested or securities liquidated, contact Portfolio Solutions at least one working day prior to the anticipation of a cash deposit or securities transfer.

Clients may withdraw money from accounts in two ways: automatic cash transfers and on-demand cash transfers. Both transfers can be set up to move money from one Schwab account to another or directly to a bank checking account. The bank transfer is done through the Schwab MoneyLink system at no cost. There is a one time setup for regularly scheduled transfers. On-demand transfers require five business days notice to Portfolio Solutions. Traditional paper checks sent in the mail are also on option.

Schwab MoneyLink Transfers

MoneyLink is the preferred method for moving money from your Schwab account to your bank checking account. It is a free service that only needs to be set up once. Clients may have automatic monthly or quarterly distributions sent over the MoneyLink system. Or when special funds are needed, contact Portfolio Solutions, and those funds will be sent directly to your bank checking account in a lump-sum. There is a few days delay in transferring on-demand money because we may have to raise the cash in the account. On-demand MoneyLinks occur approximately five business days after we are notified.