In addition to our “Comprehensive” and “Collaborative” service levels, we also offer some of our services in a “Do-It-Yourself” service level that has a lower annual fee and no minimum. Basic services include asset allocation design and portfolio management. Some additional bonus services are available for an additional charge. We typically recommend using Charles Schwab as the custodian for our “Do-It-Yourself” level accounts.

Charles Schwab has spectacular customer service and a relatively easy to use online banking system. However, it can be difficult to get started because their technical documentation is both hard to find and sometimes outdated.

After you have opened your account, there are many methods of withdrawing or distributing from your Charles Schwab account. The primary methodologies are as follows:

Bill Pay to Someone Else

You can use Schwab’s online Bill Pay to make electronic payments directly to several qualified business recipients or to mail checks to those who are not set-up in Schwab’s system. These payments can be scheduled to recur at a repeat pattern of your choice or they can be one-time. For more information on using this system, our article “How to Use Schwab Bill Pay” may assist.

Physical Check

If you have a physical checkbook, you can simply write out your check instructions and deliver the check to the recipient. Physical checks can even be used to distribute funds to yourself. Simply write the check out to yourself and then use your receiving bank’s mobile deposit system to deposit the funds. With a smart phone, you won’t even have to leave the couch to do it.

Electronic Check to Yourself

If you are paying yourself, you can use Schwab’s “Request a check” feature under “Move Money” to have a check mailed to your address on file.

If you are paying someone else, Schwab’s online Bill Pay feature (discussed above) can be used to mail the check to them.

Journal to Another Account

A journal is moving funds from one Schwab account to another. If you are trying to distribute your required minimum distribution from your IRA or contribute to your Roth IRA for the year, for example, this would be your preferred methodology. You can complete a journal via Schwab’s “Online Transfer” option under “Move Money” or by following the instructions in “How to Fund Your Roth By Using Another Schwab Account.”

Schwab MoneyLink to Your Local Bank

If you have an external bank account, such as a local checking account, then using a MoneyLink is another easy option. You can set up the MoneyLink online by following the instructions in “Move Funds Between Your Bank Account and Your Schwab Account.” After the MoneyLink is established, the linked external account will appear in the list of accounts available for transfer in the “Online Transfer” tool.

Debit Card

You can use a Schwab debit card at any ATM in the world and as of the date of this article, Schwab will pay the ATM fee but no longer reimburse for “Dynamic Currency Conversion fees.”

As they say on their Frequently Asked Questions :

Do I pay ATM fees?

Unlimited ATM fee rebates only apply to cash withdrawals using the Schwab Bank Visa Platinum Debit Card wherever it is accepted3.

ATM fee rebates do not include fees imposed by merchants or ATM operators for POS transactions, or fees for stamp purchases, balance inquiries, non-local ATM currency withdrawal fees (referred to as dynamic currency conversion fees), or any transaction other than an ATM cash withdrawal from your Schwab Bank account.

How do I receive the ATM fee rebates for my ATM withdrawals?

We refund ATM fees for cash withdrawals using your Schwab Bank Visa Platinum Debit Card wherever it is accepted at the end of the same month that you used your Schwab Bank Visa Platinum Debit Card.

With a phone call to Schwab, you can also have the transaction limit increased for one day so you can make larger purchases.

Wire Transfer

While you can use a wire transfer to distribute funds, we generally recommend picking a different option mostly because if a mistake occurs, a wire is extremely difficult to correct.

Wires at Schwab are free if you do them yourself online, but are subjected to fees when they are done over the phone. By default, you can complete a wire transfer online via the “Send a Wire” option under “Transfers & Payments.” However, this online feature can be turned off for your account on request. Elder abuse scam artists often rely on wire transfers as a part of their scam. For this reason, Schwab has the option of turning off online wire transfers for your protection.

If someone is talking you through how to complete a wire transfer over the phone, assume it is a scam and hang up.

As always, if you run into any problems with these processes or have more questions, you can call Schwab Alliance directly at 800-515-2157.

Photo by Monica Sauro on Unsplash. Image has been cropped.