October 10, 2023
We crossed fingers over Labor Day weekend hoping the conversion of accounts from TD Ameritrade went smoothly. Below are some of our experiences less than a month into the change.
Schwab’s PR department was quick to publicize a successful conversion weekend. Bernie Clark, Head of Schwab Advisor Services said “It went spectacularly.” From the advisor perspective, yes and no.
It is unrealistic to think there wouldn’t be problems converting 7,000 advisors, 3.6 million accounts totaling $1.3 trillion (per Clark).
We agree with some of our colleagues that 90% of the conversion went well. It is that last 10% that is problematic.
A former TD Ameritrade employee now with Schwab, said the problems as a result of the conversion are falling to the former TDA advisors to resolve.
Our goal is to resolve these issues without any impact on our clients.
According to the Social Security Administration, a man born in 1930 had a life expectancy of 58 years; a woman 62 years and the retirement age was 65.
With our longer life spans, it is not surprising many people are working longer. The Bureau of Labor Statistics forecasts the increase in the number of workers age 75 and older will increase 78% between 2022 and 2023.
A survey conducted by the Transamerica Center for Retirement Studies expects almost 50% of baby boomers plan to work past 70 (see, Jill isn’t alone!).
To be sure, some of those working in later years are due to financial need. However, others continue to find purpose and enjoyment in what they do. We are living longer and for many, remain healthy longer. It means our savings and investments need to last longer.
Ken Dychtwald, founder and CEO of Age Wave states, “We have lived for decades now with the notion that there is nothing for older people to do but have vacation. But I think we’re in a revolutionary moment right now.”
Dr. Laura Carstensen, Director of the Stanford Center on Longevity said “there’s nothing magic about 65 or 60 or any other number. Today, most jobs are based on knowledge. So if we look at knowledge workers, in many jobs, the evidence suggests that we’re peaking in our late 60s or early 70s. So the idea that we should be leaving the workforce based on an outdated norm is something that we need to wrestle with. People often think about the brain as being most affected by aging, short of diseases like dementia. The brain is relatively spared as an organ system, much more targeted our muscles and bones, so we become weaker, our bones are more frail. But for healthy people, there are very few changes in the brain or cognitive processing that would affect one’s ability to do work.”
It is not always easy to continue to work. There is a lot of ageism by companies and workers. The Equal Opportunity Commission said many instances of age discrimination aren’t reported. Still in fiscal 2022, 11,500 charges of age discrimination were filed.
AARP did their own poll. They found:
Age Wave and Edward Jones conducted a study of retirees reporting that almost 25% found it difficult to find purpose post-retirement. We all need a reason to get out of bed. It helps people’s emotional and physical health to be social, have goals and feel fulfilled.
If you are donating using checks, please try to complete your gift giving to qualified charities by early November. We will need to manually track the check being cashed and deduct it from your RMD. If we issue your final RMD to equal your minimum and a check clears afterwards, you will have taken more than was necessary. Most final RMD payments go out between December 1 and 15. Please contact us with questions.
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