Schwab Drama
 

Maybe it’s time to look for a new bank…

https://apple.news/An2sllEn2SguWPDlaMleOlA

401(k) are extremely well protected. Schwab is just the administrator. The holdings are not at risk.

We literally got an email that our 401ks are separate from Schwab’s assets. If Schwab fails, out assets go somewhere else. It’s a trust.

“The PRAP is a Trust. Its assets are not part of the assets of Schwab. Therefore, if anything were to happen to Schwab's business it would not affect the PRAP, except potentially with respect to uninvested assets as noted below. Your PRAP invested assets would be completely safe if there were any issues with Schwab.”

Just don’t leave assets not invested, which would be dumb anyway.

....but Schwab could do better, a lot better, on their usability and website. Maybe I'm just inept but its somewhat difficult to manage the UAL PRAP.

I have had 3 prior 401k plans administered by Fidelity and rolled them into the last one (a different airline's) but won't bring that money to Schwab as-is.

Perhaps time for an improvement or change?

Fidelity has a good 401k product. Much better than Schwabs for giving upto date performance information. Schwabs is easier to do things electronically that Fidelity traditionally took phone calls to do.

Don't worry everyone it's not a crisis.

Just the second largest bank failure in us history and one of the biggest banks in the western world having to be bailed out (oops I mean, "merge") so far.

This may be the phrase you're looking for:

https://www.investopedia.com/terms/c/custodian.asp

Yes, it’s not a crisis, just like inflation was “transitory”