This document is designed to help you understand the role Charles Schwab plays in safeguarding your assets and supporting our independent financial planning relationship.
What is a “custodian,” and why do I need one?
A custodian is a financial institution responsible for:
- Holding your investment assets
- Executing trades
- Issuing statements and tax documents
- Providing regulatory oversight and account safeguards
Our firm is not a custodian. We partner with Charles Schwab so that:
- Your accounts are held in your name,
- Charles Schwab safeguards your assets,
- We can focus exclusively on planning, advice, and investment management.
Who is Charles Schwab?
Charles Schwab & Co., Inc. is one of the largest and most trusted financial services firms in the United States. Schwab provides custody, trading, and account-administration services for independent financial advisors and their clients. Schwab’s role ensures your assets are held securely and that you benefit from institutional-grade technology, reporting, and operational support.
Why did your firm choose Charles Schwab as custodian?
We selected Charles Schwab because of:
- Financial strength and reputation
- Strong investor protections
- Locally based back-office support for our team (Colorado)
- Institutional access for trading and reporting
- Robust technology and cybersecurity
- Low-cost and transparent platform
- Excellent client service
Our goal is to ensure your assets are secure and supported by an industry-leading platform while we focus on your financial plan.
Do I have a direct relationship with Charles Schwab?
Yes. Even though we manage your accounts, they are owned by you and are held at Charles Schwab. You will:
- Sign Schwab account documents when opening accounts,
- Receive statements and tax documents from Charles Schwab,
- Have access to Charles Schwab’s online portal and mobile app, as well as White Hawk’s.
Are my assets safe at Charles Schwab?
Charles Schwab is subject to strict regulatory oversight and maintains multiple layers of asset protection.
Protections include:
- SIPC Coverage: Protects securities in your account up to $500,000 (including $250,000 for cash).
- “Street Name” Registration: Your securities are held separately from Schwab’s corporate assets.
- Internal controls and cybersecurity: Schwab invests heavily in data and account protection.
Note: SIPC does not protect against market loss.
What are Charles Schwab’s roles compared to White Hawk Wealth Management’s roles?
Charles Schwab’s roles include:
- Safekeeping of your assets
- Executing the trades that we enter on your behalf
- Processing deposits and withdrawals
- Providing statements, confirmations, and tax forms
Our role includes:
- Financial planning, tax planning, investment advice, and portfolio management
- Tailored recommendations based on your goals
- Monitoring your progress and adjusting how you are invested
- Acting as your primary point of contact for questions.
Schwab does not provide financial planning or investment advice on your accounts unless you directly engage them for specific services.
How does Charles Schwab make money if you work with an independent advisor?
Schwab may earn revenue from:
- Earned interest on cash balances
- Expense ratios on Charles Schwab-managed funds, if we utilize them
- Optional services you may choose directly from Schwab (a Line of Credit, for example)
- Trade-related revenue on certain transactions
We do not receive compensation from Charles Schwab for using them as a Custodian.
Will anyone from Charles Schwab ever contact me directly?
Yes, for certain account-related reasons such as:
- Account openings or approvals,
- Verification of instructions for security purposes,
- Delivery of statements, tax forms, and trade confirmations,
- Technical support for Schwab Alliance or the mobile app.
For investment questions, recommendations, or planning guidance, you will continue to work directly with our firm.
Who should I contact with questions?
We always welcome you to reach out to us first.
For financial planning, investment decisions, and portfolio questions, contact our firm directly.
For password resets, online access, or basic account-level support, contact Schwab Alliance at 800-515-2157.
What happens if our advisory relationship ends?
Your accounts remain safe at Charles Schwab. You may:
- Continue to hold them at Schwab,
- Work with another advisor who uses Schwab, or
- Transfer them to another custodian of your choice.
Your assets belong to you regardless of our relationship.
