July 1, 2024 - Volume LII No. 13

IN THIS ISSUE...

  • Are You Giving Up 5% Annual Returns on Your Cash Investments?
  • Who Should Own the Business Vehicle - You or Your Practice?
  • “Cost-Plus” Credit Card Processing is a Must
  • Beware a Popular Card Processing Scam
  • Never Accept PPOs’ Virtual Credit Cards
  • Surcharging Patients Who Pay With Credit
  • Protect Against Credit Card Chargebacks
  • Bank Lines Are Great Options When You Need Money in a Pinch
  • Self-Insuring for Long-Term Care

Are You Giving Up 5% Annual Returns on Your Cash Investments?

You may unknowingly be losing a lot of income on cash that is sitting in your investment accounts. As much as we like Charles Schwab for its excellent customer service, easy-to-use website, and access to stock research, we definitely don’t like their approach to handling customer cash. Cash that is sitting in a Schwab brokerage account is automatically transferred to “Charles Schwab Bank.” That is Schwab’s separate banking business which uses client cash to make consumer loans. The investor gets a very puny rate of interest – currently 0.45%, but historically about 0.1%. In the era of free stock trading, Schwab has to make money somehow, and its banking business is largely how they do it. If you use Charles Schwab, you can still invest in higher paying money market funds, but...