Announcement from Schwab Regarding Cash Sweeps: What Does it Mean to You?

Charles Schwab recently sent out a notice about updating their cash sweep feature for certain clients, moving them from the Schwab Government Money Fund – Sweep Shares (SWGXX) to either Bank Sweep or Schwab One Interest. No action is required on your part if Schwab made the change to your account.

Only Schwab sponsored managed accounts like Schwab Charitable donor-advised fund (DAFgiving360TM) professionally managed accounts, and other retirement accounts such as 403(b) plans, are eligible for SWGXX. When an account is unenrolled from the eligible managed account offer, the account is no longer eligible for SWGXX as a cash feature. This change ensures compliance with cash feature eligibility requirements outlined in Schwab's Cash Features Program Disclosure Statement, as SWGXX is restricted to specific managed account types.

How Does This Impact You?

The River Wealth Investment Committee regularly monitors cash levels and keeps only small amounts of cash on hand in the portfolios we manage. If larger amounts of cash are requested by a client, we use a position-traded money market fund to achieve a higher yield on these dollars. In either situation, the change will have minimal impact on you. If you have any questions, please call your wealth advisor.