Charles Schwab Intelligent Advisory - Short Review

Product Overview: Charles Schwab Intelligent Portfolios Premium

Charles Schwab Intelligent Portfolios Premium is an advanced automated investing service that combines the efficiency of a robo-advisor with the personalized guidance of a human financial advisor. Here’s a detailed look at what the product does and its key features.

Automated Investment Management

At its core, Schwab Intelligent Portfolios Premium uses advanced algorithms to build, monitor, and automatically rebalance a diversified portfolio composed of low-cost exchange-traded funds (ETFs). These ETFs are carefully selected and monitored by experts from Charles Schwab Investment Management, Inc. (CSIM), ensuring they meet stringent selection criteria and align with your investment goals, risk tolerance, and time horizon.

Key Features

Automated Rebalancing

The platform performs daily checks on your portfolio and rebalances it as needed to maintain the target asset allocation. This ensures your portfolio remains consistent with your investor profile, even in volatile market conditions.

Tax-Loss Harvesting

For accounts with $50,000 or more, Schwab Intelligent Portfolios Premium offers tax-loss harvesting. This feature identifies opportunities to offset capital gains by strategically realizing losses and reinvesting in similar ETFs, helping to lower your taxable income.

Professional Guidance

One of the standout features of the Premium version is the unlimited 1:1 guidance from a CERTIFIED FINANCIAL PLANNER™ professional. This includes personalized financial planning, goal setting, and portfolio recommendations tailored to your specific needs. You can schedule appointments online for phone or video conferences at your convenience.

Digital Planning Tools

The service provides interactive online planning tools that help you create a customized roadmap for reaching your financial goals, such as saving for college, retirement, or buying a house. You can also use the “Play Zone” to create “what-if” scenarios and stress-test your plan against various market and lifestyle variables.

Account Types and Minimums

To get started with Schwab Intelligent Portfolios Premium, you need a minimum investment of $25,000. The service supports a variety of account types, including brokerage accounts, retirement accounts (such as IRAs), and trust accounts.

Fees

The Premium service comes with a one-time planning fee of $300 and a monthly advisory fee of $30. Additionally, you will pay the operating expenses on the ETFs in your portfolio, which are generally low-cost.

Cash Management

A portion of your portfolio is allocated to FDIC-insured deposit accounts at Charles Schwab Bank, ensuring a cash component that aligns with your risk profile. This cash balance is an integral part of the overall portfolio strategy.

Additional Benefits

• Broad Investment Options: Schwab Intelligent Portfolios Premium uses 51 different ETFs across 20 asset classes, allowing for highly diversified portfolios tailored to your goals, whether it’s a global strategy, U.S.-based strategy, or an income-focused strategy.
• 24/7 Customer Support: The service includes round-the-clock customer support from US-based service professionals.
• External Account Syncing: The Premium version allows you to link external accounts, which can be considered by the human advisor for comprehensive financial planning and tax-loss harvesting strategies.

In summary, Charles Schwab Intelligent Portfolios Premium offers a robust and personalized investment solution that leverages advanced technology and human expertise to help you achieve your financial goals efficiently and cost-effectively.