Charles Schwab today announced the broad availability of Schwab Intelligent AdvisoryTM, the firm’s new hybrid advisory service that combines live credentialed professionals and advanced technology to make financial and investment planning more accessible.
Schwab Intelligent Advisory provides investors with a financial plan tailored to their situation and goals, ongoing guidance and expertise from experienced Planning Consultants, and a fully automated and diversified portfolio − all at a very low cost.
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With a $25,000 minimum and an annual advisory fee of 0.28% of assets with a quarterly maximum of $900, Schwab Intelligent Advisory is one of the most accessible and lowest-cost advisory solutions available to investors today.
“Schwab Intelligent Advisory provides a modern approach to financial planning and wealth management that delivers on what today’s consumers expect: a personalized experience that leverages technology to make the process easier - all at a great value,” said Terri Kallsen, executive vice president and head of Schwab Investor Services.
In a December 2016 survey of approximately 1,000 Schwab clients, a majority said they prefer an investing platform that combines both technology and a relationship with a financial professional instead of relying purely on one or the other. Seventy-one percent said cost is “extremely” or “very” important when it comes to getting financial advice.
Schwab Intelligent Advisory, which was first announced in December 2016, includes:
A comprehensive financial and investment plan that starts with a self-guided online planning tool, and is followed by a conversation with a credentialed Planning Consultant.
Ongoing guidance from a team of Planning Consultants who are all CERTIFIED FINANCIAL PLANNER™ professionals via phone or videoconference.
Fully automated, diversified portfolios using Schwab Intelligent Portfolios® asset allocations. The portfolios are comprised of low-cost exchange-traded funds (ETFs) from Schwab and third party providers including Vanguard, iShares and PowerShares.
An engaging, interactive experience and customized dashboard where clients can view their plan, their progress toward goals, and portfolio performance - from both a desktop and mobile device.
Schwab Intelligent Advisory is designed for an investor who is focused on keeping costs low, has multiple goals but doesn’t have a highly complex financial situation, and understands the importance of developing a personalized plan. The service will also appeal to those who prefer to leverage technology to get things done, want to be in control of their finances, and appreciate having the ability to engage with a salaried financial professional when needed.
“Planning is critical to successful investing, but not enough people have a financial plan,” said Neesha Hathi, executive vice president with Schwab Investor Services. “For some, the roadblock might be high costs and minimums; for others, planning may seem like a dull and daunting task. Schwab Intelligent Advisory democratizes and modernizes the process by making it easier and more affordable to build and maintain a plan, stay invested, and access professional guidance along the way.”
The service offers a completely paperless account opening and account management experience, and clients can establish automated account funding on a recurring basis, as well as fund accounts using mobile check deposit.
Schwab will continue to offer its automated investing service Schwab Intelligent Portfolios, offered through Schwab Wealth Investment Advisory, Inc., as a separate service for investors who already have a financial plan in place or have straightforward goals and want purely software-driven, automated, discretionary portfolio management without an advisory fee charged.1