Who Is Your Custodian?
Your custodian? No, this is not about the workers who clean and maintain buildings.
It is about something much more important: companies that hold and safeguard investments.
According to Investopedia ,
“A custodian is a financial institution that holds customers' securities for safekeeping…most custodians also offer other services, such as account administration, transaction settlements, collection of dividends and interest payments, tax support…” Custodians also provide reports for account holders and other services.
When I started my firm four years ago, one decision I needed to make was which custodian to use. Choices included TD Ameritrade (TDA), Schwab and Fidelity.
I chose TD Ameritrade and never regretted the decision. TDA has always provided great service and great technology to me
I was thinking about this because of an article in a recent issue of Financial Advisor Magazine (“In the Lead” by Joel Bruckenstein, August 2016) which called TD Ameritrade the “leader in providing technology choice among RIA custodians.”
Technology is important. It not only determines how you receive monthly reports and access your accounts on-line, it also makes it possible for me to monitor accounts, manage allocations and make changes when necessary.
TDA's technology made it possible for me to do this without hiring trading assistants. That keeps down my costs and allows me to keep my fees lower.
Another reason I like TD Ameritrade is that the service has been fantastic. Of all the companies I deal with on a professional or personal level, they are the most responsive. TDA personnel act like they care.
I wanted you to know this because it helps you as a client to know how my practice works and the choices that I've made.
Please contact me if you have questions about this or anything else.