New pricing model delivers a modern approach to
planning
To simplify its approach to comprehensive professional guidance
and financial planning for the firm’s digital advisory services,
Charles Schwab is moving to a new subscription pricing model for
Schwab Intelligent Advisory™ and renaming the service Schwab
Intelligent Portfolios Premium™. There are no pricing changes to
Schwab Intelligent Portfolios®, the firm’s automated investing
service, which charges no advisory fee.
Schwab Intelligent Portfolios builds, monitors, and
automatically rebalances a diversified portfolio of low-cost
exchange-traded funds (ETFs) based on a client’s goals and provides
24/7 help from Schwab service professionals. This service is
designed as a fully digital end-to-end experience, but clients also
have access to professionals who can help with a range of topics
including client goals, risk tolerance, and portfolio
allocation.
Schwab Intelligent Portfolios Premium builds on Schwab
Intelligent Portfolios to offer:
- Unlimited 1:1 guidance from a CERTIFIED
FINANCIAL PLANNER™ professional who can provide personalized
financial advice based on current goals and provide ongoing advice
as goals and circumstances change
- A comprehensive financial plan that
provides a customized roadmap for reaching financial goals
- Ability to access the financial plan
24/7 via a comprehensive digital planning experience, including the
ability to modify assumptions in real time to see how changing
needs and circumstances could impact a client’s overall financial
picture and help them stay on track
Introducing Subscription-Based Financial Planning
The 0.28% advisory fee clients previously paid for Schwab
Intelligent Advisory, now called Schwab Intelligent Portfolios
Premium, has been replaced with an initial one-time $300 fee for
planning, and a $30 monthly subscription ($90 billed quarterly)
that does not change at higher asset levels.
“Cost and complexity are two of the biggest roadblocks to
accessing financial planning, and our goal is to break down those
barriers,” said Cynthia Loh, Charles Schwab vice president of
digital advice and innovation. “These changes are a result of
client feedback and our commitment to meet consumer expectations
for simplicity, transparency and value.”
“Subscription-based pricing is second nature to many of us who
pay this way for other forms of ongoing access and guidance – from
streaming media services to fitness and personal training
memberships. We think people should have the opportunity to pay for
financial planning the same way,” added Loh. “This new pricing
approach is part of our focus on making the investing and planning
experience easier, more modern, and more approachable. We’re
looking forward to helping people get the financial help they need,
whether they’re investing for the long term or have more immediate
life events that require a plan.”
How Schwab Intelligent Portfolios and
Schwab Intelligent Portfolios Premium Compare
Schwab Intelligent Portfolios
Schwab Intelligent
PortfoliosPremium
Investment minimum $5,000 $25,000 Fees
No advisory fee charged
One-time $300 initialplanning fee and
$30/monthfor unlimited guidance
Diversified portfolio of
low-costexchange-traded funds (ETFs)
Yes Yes
Daily monitoring and automaticrebalancing
as needed
Yes Yes Tax-loss harvesting*
Yes Yes 24/7 support from professionals
Yes Yes
Unlimited 1:1 guidance from aCERTIFIED
FINANCIAL PLANNER™professional
No Yes Comprehensive financial plan
No Yes Interactive online planning
tools No Yes
Just as if they had invested on their own, clients in Schwab
Intelligent Portfolios and Schwab Intelligent Portfolios Premium
pay the operating expenses on the ETFs in the portfolio, which
includes a combination of Schwab ETFs™ and funds from third party
providers. Based on a client’s risk profile, a portion of the
portfolio is placed in an FDIC-insured deposit at Schwab Bank. Some
cash alternatives outside of the program pay a higher yield. See
additional cost information below.
Clients do not pay commissions in Schwab Intelligent Portfolios
and Schwab Intelligent Portfolios Premium. More information about
Schwab’s digital advisory services is available here.
About Charles Schwab
At Charles Schwab, we believe in the power of investing to help
individuals create a better tomorrow. We have a history of
challenging the status quo in our industry, innovating in ways that
benefit investors and the advisors and employers who serve them,
and championing our clients’ goals with passion and integrity.
More information is available at www.aboutschwab.com. Follow us
on Twitter, Facebook, YouTube and LinkedIn.
Disclosures
Please read the Schwab Intelligent Portfolios Solutions™
disclosure brochures for important information, pricing, and
disclosures related to the Schwab Intelligent Portfolios and Schwab
Intelligent Portfolios Premium programs.
Schwab Intelligent Portfolios® and Schwab Intelligent Portfolios
Premium™ are made available through Charles Schwab & Co. Inc.
(“Schwab”), a dually registered investment advisor and broker
dealer. Portfolio management services are provided by Charles
Schwab Investment Advisory, Inc. ("CSIA"). Schwab and CSIA are
subsidiaries of The Charles Schwab Corporation.
Additional Cost Information
There is no advisory fee or commissions charged for Schwab
Intelligent Portfolios. For Schwab Intelligent Portfolios Premium,
there is an initial planning fee of $300 upon enrollment and a $30
per month advisory fee charged on a quarterly basis as detailed in
the Schwab Intelligent Portfolios Solutions™ disclosure brochures.
Investors in Schwab Intelligent Portfolios and Schwab Intelligent
Portfolios Premium (collectively, “Schwab Intelligent Portfolios
Solutions”) do pay direct and indirect costs. These include ETF
operating expenses which are the management and other fees the
underlying ETFs charge all shareholders. The portfolios include a
cash allocation to a deposit account at Schwab Bank. Our affiliated
bank earns income on the deposits, and earns more the larger the
cash allocation is. The lower the interest rate Schwab Bank pays on
the cash, the lower the yield. Some cash alternatives outside of
Schwab Intelligent Portfolios Solutions pay a higher yield.
Deposits held at Schwab Bank are protected by FDIC insurance up to
allowable limits per depositor, per account ownership category.
Schwab Intelligent Portfolios Solutions invests in Schwab ETFs. A
Schwab affiliate, Charles Schwab Investment Management, receives
management fees on those ETFs. Schwab Intelligent Portfolios
Solutions also invests in third party ETFs. Schwab receives
compensation from some of those ETFs for providing shareholder
services, and also from market centers where ETF trade orders are
routed for execution. Fees and expenses will lower performance, and
investors should consider all program requirements and costs before
investing. Expenses and their impact on performance, conflicts of
interest, and compensation that Schwab and its affiliates receive
are detailed in the Schwab Intelligent Portfolios Solutions
disclosure brochures.
The cash allocation in Schwab Intelligent Portfolios Solutions™
will be accomplished through enrollment in the Schwab Intelligent
Portfolios Sweep Program (Sweep Program), a program sponsored by
Charles Schwab & Co., Inc. By enrolling in Schwab Intelligent
Portfolios Solutions, clients consent to having the free credit
balances in their Schwab Intelligent Portfolios Solutions brokerage
accounts swept to deposit accounts at Charles Schwab Bank through
the Sweep Program. Charles Schwab Bank is a FDIC‐insured depository
institution affiliated with Charles Schwab & Co., Inc. and
Charles Schwab Investment Advisory, Inc.
*Tax‐loss harvesting is available for clients with invested
assets of $50,000 or more in their account. Clients must choose to
activate this feature.
Through its operating subsidiaries, The Charles Schwab
Corporation (NYSE: SCHW) provides a full range of securities
brokerage, banking, money management and financial advisory
services to individual investors and independent investment
advisors. Its broker-dealer subsidiary, Charles Schwab & Co.,
Inc. (member SIPC, www.sipc.org), and affiliates offer a complete
range of investment services and products including an extensive
selection of mutual funds; financial planning and investment
advice; retirement plan and equity compensation plan services;
compliance and trade monitoring solutions; referrals to independent
fee-based investment advisors; and custodial, operational and
trading support for independent, fee-based investment advisors
through Schwab Advisor Services. Its banking subsidiary, Charles
Schwab Bank (member FDIC and an Equal Housing Lender), provides
banking and lending services and products. Edelman Intelligence is
not affiliated with the Charles Schwab Corporation or its
affiliates. More information is available at www.schwab.com and
www.aboutschwab.com.
Investment Products: Not FDIC Insured • No Bank Guarantee •
May Lose Value.
© 2019 Charles Schwab & Co., Inc., All rights reserved.
Member SIPC. (0319-9T04)
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version on businesswire.com: https://www.businesswire.com/news/home/20190328005640/en/
Marianne AhlmannCharles
Schwab415-667-1115Marianne.ahlmann@schwab.com
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