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Schwab Intelligent Advisory Makes It Easy for Investors to Have a Customized Plan and Automated Portfolio

SCHW | March 14, 2017

Schwab Intelligent Advisory Makes It Easy for Investors to Have a Customized Plan and Automated Portfolio

Now broadly available, Schwab’s new hybrid advice service combines the benefits of people and technology at an ultra-low cost

Charles Schwab today announced the broad availability of Schwab Intelligent Advisory ^TM, 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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Schwab Intelligent Advisory online planning tool (Graphic: Business Wire)

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

More information about Schwab Intelligent Advisory is available at www.schwab.com/intelligentadvisory.

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:

Diversification and asset allocation strategies do not ensure a profit and do not protect against losses in declining markets.

Please read the Schwab Intelligent Advisory™ disclosure brochures for important information about this program.

Schwab Intelligent Advisory™ is made available through Charles Schwab & Co., Inc. (“Schwab”), a dually registered investment adviser and broker-dealer. Portfolio management services for Schwab Intelligent Portfolios™ are provided by Charles Schwab Investment Advisory, Inc. ("CSIA"), a registered investment adviser, and offered through Schwab Wealth Investment Advisory, Inc. (“SWIA”). Please refer to the disclosure brochures for details about Schwab Intelligent Advisory. Free credit balances are swept into deposit accounts at Charles Schwab Bank (“Schwab Bank”). Brokerage products and accounts are offered by Schwab, Member SIPC. Deposit and lending products are offered by Schwab Bank, Member FDIC and an Equal Housing Lender.

Schwab, CSIA, SWIA and Schwab Bank are affiliates and are subsidiaries of The Charles Schwab Corporation.

¹ Please read the Schwab Intelligent Portfolios disclosure brochures for important information, pricing, and disclosures relating to Schwab Intelligent Portfolios. Schwab Intelligent Portfolios charges no advisory fee. Schwab affiliates do earn revenue from the underlying assets in Schwab Intelligent Portfolios accounts. This revenue comes from managing Schwab ETFs™ and providing services relating to certain third party ETFs that can be selected for the portfolio, and from the cash feature on the accounts. Revenue may also be received from the market centers where ETF trade orders are routed for execution.

Schwab Intelligent Portfolios™ is made available through Schwab Wealth Investment Advisory, Inc. ("SWIA"), a registered investment adviser.

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. More information is available at www.schwab.com and www.aboutschwab.com.

Brokerage Products: Not FDIC Insured • No Bank Guarantee • May Lose Value

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