Broker Check

Why Orion Portfolio Solutions

Charles Schwab

As you may recall, Charles Schwab purchased TD Ameritrade in October of 2020. However, the global pandemic caused Schwab to wait nearly two years before taking any significant steps towards completing this merger.

In June of 2022, Schwab announced that the account numbers for all TD Ameritrade accounts will be replaced with Schwab account numbers in the Spring of 2023. This change will be conducted internally by Schwab personnel.

This merger has brought together some of the best personnel, resources, and technology in the financial advising industry. Few companies in the world have the same level of clout and resources as Schwab. As of July of 2022, Schwab’s total assets under management exceeded $7 trillion. Additionally, Schwab bought TD Ameritrade for its best-in-class technology which will continue to be a benefit to our clients.

Orion Portfolio Solutions

Schwab's purchase of TD Ameritrade also creates a great opportunity for us to better serve you. Before the end of the year, we will be linking your TD Ameritrade accounts to an investment management platform named Orion Portfolio Solutions. This platform offers many advantages to investors…

Greater investment flexibility – Orion offers hundreds of different investment portfolios created by dozens of different investment managers. This allows us to quickly move your accounts from one portfolio to another on short notice; an advantage which could prove quite useful in today’s chaotic world.

Impressive performance – Many of the investment managers have actually outperformed our investment portfolios after all costs are considered.

Comparable fees – While the line items for fees will change, many of the investment managers on this platform offer similar overall fees to what you are being charged now. Some even offer significantly lower fees.

Larger support staff – The number of experts actively monitoring and managing your investments will increase several times over, ensuring that someone will be there to handle your accounts through sickness and storm (2020 Covid pandemic, 2021 Texas snowstorm power outage, etc.).

Multi-layered due diligence – Not only does Orion offer many investment managers for us to use in your accounts. It also does intensive, ongoing due diligence on each investment manager allowed on its platform. This additional layer of due diligence decreases the odds that any particular investment or manager will turn out to be a bad apple.

More defensive portfolios during these uncertain times – Bond investments have taken quite a beating in today’s rising interest rate environment. Thankfully, Orion offers some bond portfolios specifically designed to protect against major losses. We believe that these bond portfolios may be a great way to weather the ongoing storm of rising interest rates.

A more personalized experience – Schwab is a very reputable company, but it also assists thousands of investors each and every day. Orion will help to ensure that you continue to have a personalized experience with Schwab by assigning a single Orion team member to servicing nearly all of your account needs. 

One simple package – Your personal information, financial plan, investment risk level, investment strategy, billing for fees, and account performance reports will all be housed on the Orion platform, allowing us to provide you with simpler and more streamlined services.