Leveraging Your Brokerage Account

Transcription

1 Leveraging Your Brokerage Account Fair Lakes Circle, Suite 250 Fairfax, VA Phone: Fax: Securities and Advisory Services offered through Commonwealth Financial Network, Member FINRA/SIPC, a Registered Investment Adviser.

2 Liquidating Funds Cash in your Sweep Account current amounts in money markets or cash equivalents are immediately available for withdrawal. Government or Agency Bond Positions can be liquidated and made available on the day after the trade date (T+1). Corporate and Municipal Bond or Stock Positions can be liquidated and made available on the 3 rd day after the trade date (T+3). Some stocks can settle earlier if a special request is made. Mutual Funds and Exchange traded funds (ETFs) can be liquidated and made available on the 3 rd day after the trade date (T+3). Some fund families settle earlier-- pure no loads for example.

3 Liquidating Funds Q: Why do I have to wait 3 days to access my money? A: Current SEC Regulation states:.. Investors must settle their security transactions in three business days. This settlement cycle is known as "T+3" shorthand for "trade date plus three days." This rule means that when you buy securities, the brokerage firm must receive your payment no later than three business days after the trade is executed. When you sell a security, you must deliver to your brokerage firm your securities certificate no later than three business days after the sale * *(Source --

4 Getting Money to You. Available funds may be distributed from your brokerage accounts by: 1. Check $0 fee for brokerage checks you write (immediate with check writing ability) $0 fee for regular mail (3-5 business days on checks NFS issues) $15 Fee for UPS (Overnight on checks NFS issues) 2. EFT (Electronic Funds Transfer) or Direct Deposit $0 fee for EFT or Direct Deposit (1-2 business days) **Must be established days prior to initial request for security. 3. Wire Transfer $15 fee (same day) **Requests must be received prior to 12pm EST **IRAs may be delayed up to 48 hrs

5 Enhancements Getting Money to You Check writing: $0 fee for basic check writing except for $5 when ordering additional checks.* Once established, allows checks to be written out of the account and debited against the cash available. Available for IRA accounts but not recommended. Visa Debit Cards: Available for an annual fee. Allows from ATM withdrawals (additional fees may apply) and use at businesses which accept debt cards. Funds are drawn against your cash available. Systematic Withdrawals: Allows you to specify the amount and regularity of scheduled payments from your account to a bank, credit union or alternate brokerage account (often used for bill payment or income supplement.) $100 minimum per transaction. *Brokerage Access Check-writing referenced

6 Putting Money In Cash may be deposited to your brokerage accounts by: 1. Personal or Official Bank Check All checks for deposit into your brokerage account should be made payable to: National Financial Services 2. EFT (Electronic Funds Transfer) or Direct Deposit $0 fee for EFT or Direct Deposit (1-2 business days) Must be established days prior to initial deposit request. 3. Transfer of Assets $0 fee to transfer assets in from another firm **Fees may apply if closing account at another firm. 4. Stock or Registered Bond Certificate Deposits: $0 fee for deposit (*) **Series EE, Series HH, and I-bonds are not accepted for deposit at accounts through Commonwealth. Series EE and I-bonds can be redeemed at a bank. Series HH bonds must be redeemed directly by the U.S. Treasury. *Fees may apply if re-registration is required or a reorganization has occurred per transfer agent policy.

7 Enhancements Putting money in Standing Instructions (IRA/Qualified Acct): Pre-authorizes your Advisor to accept phone instruction requests for deposits and may also establish EFT and/or wire instructions. * Systematic Deposits: Allows you to specify the amount and regularity of scheduled deposits into your account from a bank, credit union or alternate brokerage account (often used for dollar cost averaging and Roth contributions.) $100 minimum per transfer. Allotments/Employer Direct Deposit: May be accepted into your brokerage accounts but must be initiated through your employer **Must have check writing capability on the targeted account *Based on level 2 authorization

8 Best Practices 1. Always allow time for processing! 2. Pre-planning goes a long way 3. Contact us for more details: tmccleerey@clarionwealth.com