How It Works: Schwab Intelligent Portfolios
You invest for a reason
You may be planning your retirement, or investing for a child's education, or a home - or something else altogether.
Every goal requires its own research, its own plan and its own strategy.
How it Works
Gentle music plays. A single line forms the shape of a house and a tree; another line forms a cloud. Birds are chirping.
Male narrator: We all have goals, ambitions, things we'd like to do or have one day.
The line forms a sailboat bobbing on the waves. Seagulls cry and waves crash. The waves calm down and a sun appears on the horizon.
Narrator: Some goals can be hard to plan for, but making a plan and sticking to it generally leads to greater financial success.
Charles Schwab logo appears.
Narrator: Schwab Intelligent Portfolios® is an automated investment advisory service that can make it easier to save for any goal. And we'll help you stay on track, too.
Planning for retirement income
Saving for college
Saving for retirement
Narrator: Created with the professional insight of Charles Schwab Investment Advisory…
A circle graph illustrates components of fixed income, cash, commodities, and stocks strategies.
Narrator: …Schwab Intelligent Portfolios uses an advanced algorithm to build, monitor, and rebalance your portfolio so you don't have to.
Overlapping sine waves appear, then form an antenna tower, which transforms into a balance scale that shifts into balance.
Narrator: Let's take a closer look
Animated brunette appears shoulders up framed within a circle.
Woman: I want to save for retirement, but my life is busy, so I don't really have time to think about it. I'm setting money aside, but I worry if I'm on track.
Onscreen text: Am I on track to save for retirement?
Screengrab of the Schwab Intelligent Portfolios® page. Sound of typing.
Narrator: With Schwab Intelligent Portfolios, saving for your retirement can be easier. Want to get started?
Screengrab of Intelligent Portfolios page asking about goals for the account. Cursor selects "prepare for retirement" and "Next."
Narrator: When you set up your account, you'll choose your goal for this account.
Under question about understanding of stocks, bonds, and ETFs, cursor selects "good," then "Next."
Narrator: Then you'll answer a few questions.
Client selects demographics and specific goals.
Narrator: You'll tell us your initial investment amount, and how much you think you'll save every month.
A personalized circle graph details a suggested personal portfolio.
Narrator: We'll recommend a portfolio based on your responses, and we'll track your progress against the goal you've set.
Client dashboard appears.
Narrator: You can check the status of your goal at any time on your dashboard.
Line drawing of house reappears, now with rain clouds and a rising water line. Water gurgles.
Narrator: But let's say over time, you take money out…
Line transforms into an ambulance with its siren beeping.
Narrator: You skip a monthly contribution, or the market changes…
An exclamation mark appears within a triangle, indicating a notification.
Narrator: Your dashboard will alert you if you're falling short of your goal.
Screen switches back to dashboard; cursor selects the "Goal" tab. Cursor slides the "Monthly Contribution" scale to the right.
Narrator: To help you get back on track, click on the "Goal" tab, and choose one of the options.
A line drawing of a piggy bank appears with coins dropping into it.
Narrator: Saving is just the beginning.
Shopping bag falls to the right of the piggy bank.
Narrator: When you're ready to spend your money, we can help you with that, too.
Animated gray-haired man appears shoulders up framed within a circle.
Man: I'd like to be able to withdraw from my retirement savings every month, but I want to make it last.
Onscreen text: How much can I withdraw for retirement income?
Page appears where client selects demographics and specific goals; cursor slides bars to the right to indicate factors in saving for retirement.
Narrator: Simply tell us your initial investment, how long you need the money to last, and we'll tell you how much money you can confidently withdraw each month.
Screengrab of Income Goal Setup.
Narrator: If you need to spend a little more some months and you get off track…
Cursor selects "Activity."
Narrator: Your dashboard will alert you.
Cursor selects "Goal."
Narrator: Clicking on "Goal" will show you options to help you get back to a steady, long-lasting income stream.
Narrator reads onscreen text: It really is that simple.
Line drawing of a car drives to the house, with the sound of the road swishing and birds chirping, and the sailboat continues to sail on smooth water with the sun out and seagulls crying.
Narrator: Whatever your financial goal is, Schwab Intelligent Portfolios can make it easier for you to follow through with your plan and stay on track.
The frame pauses on the sun at the horizon, then switches to the Charles Schwab logo.
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.
There is no advisory fee or commissions charged for Schwab Intelligent Portfolios. For Schwab Intelligent Portfolios Premium, the advisory fees consist of $300 upon enrollment and an additional $30 per month charged on a quarterly basis as detailed in the Schwab Intelligent Portfolios Solutions™ disclosure brochures. Investors in Schwab Intelligent Portfolios and Schwab Intelligent Portfolios Premium (collectively, "Schwab Intelligent Portfolios Solutions") do pay direct and indirect costs. These include ETF operating expenses which are the management and other fees the underlying ETFs charge all shareholders. The portfolios include a cash allocation to a deposit account at Schwab Bank. Our affiliated bank earns income on the deposits, and earns more the larger the cash allocation is. The lower the interest rate Schwab Bank pays on the cash, the lower the yield. Some cash alternatives outside of Schwab Intelligent Portfolios Solutions pay a higher yield. Deposits held at Schwab Bank are protected by FDIC insurance up to allowable limits per depositor, per account ownership category. Schwab Intelligent Portfolios Solutions invests in Schwab ETFs. A Schwab affiliate, Charles Schwab Investment Management, receives management fees on those ETFs. Schwab Intelligent Portfolios Solutions also invests in third party ETFs. Schwab receives compensation from some of those ETFs for providing shareholder services, and also from market centers where ETF trade orders are routed for execution. Fees and expenses will lower performance, and investors should consider all program requirements and costs before investing. Expenses and their impact on performance, conflicts of interest, and compensation that Schwab and its affiliates receive are detailed in the Schwab Intelligent Portfolios Solutions disclosure brochures.
The cash allocation in Schwab Intelligent Portfolios Solutions™ will be accomplished through enrollment in the Schwab Intelligent Portfolios Sweep Program (Sweep Program), a program sponsored by Charles Schwab & Co., Inc. By enrolling in Schwab Intelligent Portfolios Solutions, clients consent to having the free credit balances in their Schwab Intelligent Portfolios Solutions brokerage accounts swept to deposit accounts at Charles Schwab Bank through the Sweep Program. Charles Schwab Bank is an FDIC‐insured depository institution affiliated with Charles Schwab & Co., Inc. and Charles Schwab Investment Advisory, Inc.
Schwab Intelligent Portfolios® and Schwab Intelligent Portfolios Premium™ are designed to monitor portfolios on a daily basis and will also automatically rebalance as needed to keep the portfolio consistent with the client’s selected risk profile. Trading may not take place daily.
Tax‐loss harvesting is available for clients with invested assets of $50,000 or more in their account. Clients must choose to activate this feature. The tax‐loss harvesting feature that is available with Schwab Intelligent Portfolios Solutions™ is subject to significant limitations which are described on the Schwab Intelligent Portfolios Solutions website and mobile application (collectively, the “Website") as well as in the Schwab Intelligent Portfolios Solutions™ disclosure brochures (the “Brochures"), and the IRS website at www.irs.gov. You should consider whether to activate the tax‐loss harvesting feature based on your particular circumstances and the potential impact tax‐loss harvesting may have on your tax situation. You should read the tax‐loss harvesting disclosures on the Website and in the Brochures before choosing the tax‐loss harvesting feature. Neither the tax‐loss harvesting strategy nor any discussion herein is intended as tax advice, and neither Charles Schwab & Co., Inc. nor its affiliates, including but not limited to Charles Schwab Investment Advisory, Inc., represents that any particular tax consequences will be obtained.
Diversification, automatic investing and rebalancing strategies do not ensure a profit and do not protect against losses.
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Schwab Intelligent Portfolios is designed to help you do just that
With innovative technology backed by a team of investment professionals, Schwab Intelligent Portfolios® is designed to help you to quickly invest for your goal – whatever it is.
Investing made easier with Schwab Intelligent Portfolios
Based on your answers to a short set of questions. Our innovative technology selects from among the 51 low-cost professionally selected exchange-traded funds (ETFs) to create a diversified portfolio designed to help meet your specific goal.
Portfolio planning and our intensive ETF selection process are just two ways that Schwab Intelligent Portfolios saves you time.
And keep your investments on track, tax efficiently
Our sophisticated, proprietary technology monitors and rebalances your portfolio to help keep you diversified and on track.
We can also help make your investment more tax efficient by harvesting investment losses to offset the taxes on any investment gains.
Our technology and investment professionals steer your portfolio
Our investment experts keep a careful watch on every underlying investment, especially during periods of market volatility, to ensure they remain appropriate for your selected portfolio strategy.
To reach your goal, and get the most out of it
In retirement, Schwab Intelligent Portfolios can create a regular "paycheck" from your portfolio, while it continues to grow.
If you're looking for a smart, efficient way to set up and manage a portfolio—for any number of goals—Schwab Intelligent Portfolios is here to help.