Portfolio

Schwab Introduces Subscription-Based Financial Planning Option in Its Digital Advisory Service

New pricing model delivers a modern approach to planning

March 28, 2019 — SAN FRANCISCO–(BUSINESS WIRE)–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 Portfolios
Premium

Investment minimum $5,000 $25,000
Fees No advisory fee charged

One-time $300 initial
planning fee and $30/month
for unlimited guidance

Diversified portfolio of low-cost
exchange-traded funds (ETFs)

Yes Yes

Daily monitoring and automatic
rebalancing as needed

Yes Yes
Tax-loss harvesting* Yes Yes
24/7 support from professionals Yes Yes

Unlimited 1:1 guidance from a
CERTIFIED 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.