Since our inception in 2015, we’ve used a variety of custodians for client account management needs, but part of our ongoing commitment to our clients is to periodically review the custodians we use, and make changes if we feel we find a better fit for our clients’ needs.

We were very pleased to announce the addition of TD Ameritrade to our list of custodians in late 2017. After working through the “nuts and bolts” of getting TD Ameritrade set up to meet the needs of our clients, we’re now very pleased to announce we will be working with all of our clients whose accounts are currently housed at TradePMR, and transitioning you to TD Ameritrade by the end of 2018.

Additionally, all new clients who need investment management services by a full-service brokerage will have their accounts opened at TD Ameritrade.

The reasons we’re making this change are many:

  • TD Ameritrade allows us substantially better integration with the other technology partners we have started using, including our client portal, the financial planning portal, and our back-office compliance.
  • TD Ameritrade has significantly better trading and rebalancing capabilities that will allow us to manage your accounts much more actively than we were able to before.
  • TD Ameritrade has a much larger “pool” of investments, managed accounts, and model strategies to choose from, and their investing style aligns closer to ours than TradePMR.
  • TD Ameritrade’s market research, proprietary technology, and client interface are, we believe, significantly improved versus our previous custodian.
  • TD Ameritrade’s trade pricing is slightly higher than TradePMR for basic trades, but as most of our clients utilize a Wrap Fee program (your trading commissions are included in your advisory fee), this is a cost increase that will be absorbed by nVest Advisors, not the majority of our clients.
  • Many clients expressed concerns about recent news headlines and regulatory issues with TradePMR’s custodian, Wells Fargo Clearing. Although we had no custodial issues with any of our client accounts (and Wells Fargo was always restricted from contacting our clients with any ancillary product or service offerings), there was a growing sense of unease with some of our clients about continuing to use this custodian.

It’s important to stress again that this change affects ONLY clients who currently have accounts with TradePMR / Wells Fargo Clearning. Clients at other custodians are unaffected.

Here’s how the transition will happen:

  1. We will have an online webinar and Q&A session for all affected clients in early September 2018, to go over the changes and give you a look at your new custodian and client access website. This will be in addition to your normal LifeCycle nVestor webinar for Q3.
  2. We will meet with all of our clients at TradePMR by September 30, 2018, to review your current investment advisory agreement and create a new Investment Policy Statement for your accounts.  We will also compare your current account agreement to those currently offered, to see what the best fit and best pricing will be for you going forward.
  3. Clients who must take a Required Minimum Distribution from an IRA for 2018, should do so by September 30.
  4. Depending on that meeting, we will have a recommendation for you to move your TradePMR account(s) to another custodian under a new investment management agreement. This custodian may be TD Ameritrade, but it may also be one of our other custodians (whichever we decide together is the best match for your goals and account needs.)
  5. In October 2018, we will transition your account(s) FROM TradePMR to one of the other custodians. We will do this on an individual account basis, to not interrupt any regularly scheduled ACH transactions. Moving the accounts is generally a paperless process, but we will need your help to e-sign the agreements and account documents to make the transition.
  6. Our goal is to have your accounts moved an in their new custodian by November 1, 2018.

We welcome any questions or concerns you may have as we make this transition. Please reach out to me by email or phone!

We’re extremely pleased with our early partnership with TD Ameritrade, and we’re very confident you’ll enjoy it, too!