Schwab's Intelligent Portfolio Launch

[macav933]

Schwab Intelligent Portfolios
Postby macav933 » Fri Dec 19, 2014 11:03 am

Looking into Schwab's upcoming launch of Intelligent Portfolios:

https://intelligent.schwab.com

At first glance this seems to be a possible game changer. I have moved on from my FA who charged 0.50 basis points to manage a 1 million dollar account. I felt I had too many funds and expensive ones at that. I plan to move into 3 or 4 "lazy portfolio " useing broad range index funds.
They don't charge advisory fees. Or commissions. Or account service fees period, as well as offering tax harvesting. It will be offered with ETF indexes only but that shouldn't be a problem given the direction I am heading. I recieved a call from my personnel advisor who is assigned my account last night and I have to say I am impressed. He is local, works in the Schwab office 2 miles from my home. He is a VP - Sr. Financial Consultant at the local office. He is a Certified Financial Planner with Series 7, 9 , 10 , 63, 66 Securities Licenses. One positive is that they will allow you to customize your asset allocation and won't require you to pick one the computer spits out. He also claims you will be able to dollar cost average as well as set up a income distribution stream without fees of any kind as long as it comes from your Intelligent ETF account. He also said he would be available to meet face to face in the office anytime I felt a need. I don't see many downsides. I am aware that Schwab's EFT Index funds may not be as complete as Vanguards but nothing is stopping one from adding some of the missing sectors as long as they are offered. The list of available EFT's are not available at this time and his best guess is launch should by as early as late Jan. What am I missing? This seems to be a winner. Your thoughts or concerns?
Thanks

 

[Kaufmanrider]

Schwab Intelligent Portfolios
Postby macav933 » Fri Dec 19, 2014 11:03 am

Looking into Schwab's upcoming launch of Intelligent Portfolios:

https://intelligent.schwab.com

At first glance this seems to be a possible game changer. I have moved on from my FA who charged 0.50 basis points to manage a 1 million dollar account. I felt I had too many funds and expensive ones at that. I plan to move into 3 or 4 "lazy portfolio " useing broad range index funds.
They don't charge advisory fees. Or commissions. Or account service fees period, as well as offering tax harvesting. It will be offered with ETF indexes only but that shouldn't be a problem given the direction I am heading. I recieved a call from my personnel advisor who is assigned my account last night and I have to say I am impressed. He is local, works in the Schwab office 2 miles from my home. He is a VP - Sr. Financial Consultant at the local office. He is a Certified Financial Planner with Series 7, 9 , 10 , 63, 66 Securities Licenses. One positive is that they will allow you to customize your asset allocation and won't require you to pick one the computer spits out. He also claims you will be able to dollar cost average as well as set up a income distribution stream without fees of any kind as long as it comes from your Intelligent ETF account. He also said he would be available to meet face to face in the office anytime I felt a need. I don't see many downsides. I am aware that Schwab's EFT Index funds may not be as complete as Vanguards but nothing is stopping one from adding some of the missing sectors as long as they are offered. The list of available EFT's are not available at this time and his best guess is launch should by as early as late Jan. What am I missing? This seems to be a winner. Your thoughts or concerns?
Thanks

I am waiting for more details. I signed up/clicked the link to be kept posted last month. I slice and dice via the Ultimate Buy and Hold using Schwab commission free ETF's in my rollover IRA.

Personally, I might just stay the course and do my own rebalancing couple times a year as it appears most of the "robo" investing services use some type of slice and dice allocations to diversify (which I already have). But I'll wait and see. Since I am in an IRA tax loss harvesting isn't an issue.

But, for my kids in their ROTH IRA's? We all use Schwab so this will be an option for them as they can set is and go.

 

[Bikerdude]

I thought it was very interesting and have signed up for further information.

 

[PatrickA5]

What's in it for Schwab? I doubt they'll be doing it just to be nice. There's got to be some money made somewhere.


I moved most of my taxable money to Schwab a month ago as part of my simplification project. I still haven't invested any of it, but plan on investing in some low cost index ETF's or funds. I'm not really sure what this new product is supposed to do that I can't do myself.


My local advisor called the other day asking if I needed some help investing my money. I told him I'd probably invest in some low cost index funds on my own. He then sent me an email with some kind of managed portfolio with high ERs and some with front loads. For a second I thought I might of accidently moved my money to Edward Jones.

 

[Kaufmanrider]

Schwab will get your money and put you in one of their funds that they recieve fees for. Although they are low fee ETFs they are still fees.

When I rolled my 401k into an IRA in Feb I told them I'd invest it myself. No further contact other than a few emails inviting me to online webinars on various investment topics.

Sent from my SPH-L720 using Early Retirement Forum mobile app

 

[Bikerdude]

I'm not really sure what this new product is supposed to do that I can't do myself.

Precisely why I'm waiting for more information.

 

[braumeister]

My understanding is that Schwab has been on a tear for several years, accumulating new accounts like a snowball rolling downhill accumulates more snow. They have been doing everything in their power to poach accounts from everywhere else, and have been doing a good job at it.

This looks to me like a continuation of that policy.

 

[PatrickA5]

Precisely why I'm waiting for more information.

When I googled the new Schwab program there were several articles about it. Also, Bogleheads has a few threads on it. I'll probably sign up to have them keep me informed.

 

[Don46]

I've been with Schwab since the 1980s and last year, after three years experimenting with a managed account, dumped one of the Schwab network advisers. I was paying almost 1 percent and not doing any better, and in fact worse, and with more risk, than simple index fund allocation. So, I'm going it alone but want a little hand holding now and then. I signed up for more information. It looks like a convenient service. Schwab leads the pack now with their low cost ETFs and I'm already using them for my index investing. SCHB, the broad market ETF, charges .04 percent to manage the fund. Hard to beat. I like the option of a brick and mortar, blood and flesh, service Schwab offers, even though I'm not presently near a Schwab office.

 

[macav933]

Launch date for Schwab Intelligent Portfolios set for March 10 according to a conversation I had with Schwab this AM. I will be making an appointment and will share any further details. I haven't been able to find any additional AA examples other than the 3 listed in their FAQ link. Interested what the 70/30 AA would look like.