Investment Products and Service Launches

Schwab Partners with eShares

Schwab Stock Plan Services announced an agreement with online equity management firm eShares, which allows the clients of eShares to transition their employee equity plans to Schwab’s stock plan administration platform, as they prepare to enter the public market.

This service aims to help pre-IPO companies manage their employees’ equity electronically, making it easier for businesses to track everyone on their capitalization table, while enabling employees to see all their holdings in a single place. At the time of an S-1 filing, eShares clients’ data will automatically transfer onto the Schwab platform.

“An IPO is an exciting but demanding period in a company’s lifecycle. Our agreement with eShares allows us to lessen the administrative burden that comes with managing an equity compensation plan and to develop a roadmap for a smooth transition through the IPO process and beyond,” says Marc McDonough, vice president of Schwab Stock Plan Services.

Henry Ward, founder and CEO at eShares adds, “Our clients expect a great user experience and depend on our online platform to securely monitor and track the value of their equity. In working with Schwab, we are confident that companies heading toward an IPO will be provided with the robust participant experience and equity compensation expertise that their employees will need.”

NEXT: USAA Deploys Military Retirement Comparison Tool

USAA Deploys Military Retirement Comparison Tool

In response to the United States Military’s move from its current military retirement plan to a new Blended Retirement System (BRS) going into effect in January 2018, the USAA has launched its Military Retirement Comparison Tool for all service members.

It’s designed to help service members make informed decisions on the financial implications specific to their retirement situations.

The tool will evaluate the implications of status, pay grade, years of service, and years remaining until separation or retirement from the military, or the anticipated number of credited military points at the time of National Guard or Reserve retirement.

USAA recently conducted a national online survey of 400 active-duty and reservists who will have the option of switching to BRS or remain in the current plan. Three out of four (75%) service members are aware that the Department of Defense (DOD) will offer a new retirement plan in 2018, but one in four (25%) surveyed do not believe they have enough information to select a retirement plan.

"The Department of Defense has called this the most significant change to military retirement to date and estimates that more than 1 million active-duty, Guard and Reserve members will be affected by this change," explains retired Vice Adm. John Bird, USAA's senior vice president of military affairs. "We estimate that 650,000 USAA members will be impacted by this change, and our research indicates that 70% of our members recognize saving for retirement as a personal financial goal.” 

The tool is available to all military members and their families on USAA's BRS webpage. The page serves as a central location for the military community to learn more about their retirement options and to plan for their financial security.