Schwab Intelligent Portfolios

Unaffiliated

in Investment Advisors from Charles Schwab

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Highlights
Minimum Initial Investment	$5,000
Management Fee	0% - 1.44%

Schwab Intelligent Portfolios Review

Schwab Intelligent Portfolios is a bank founded in 1971 and based in San Francisco, CA.

Schwab Intelligent Portfolios Pros & Cons

The Good	The Bad
Trades in low-cost ETFs. Access to human advisors. Tax-loss harvesting available. Wide selection of investment options. Broad selection of account types. Competitive investment expense ratios. No management fees are charged for the non-premium plan.	Tax loss harvesting is only available on accounts of $50,000 or more. There is a one time $300 fee for Premium service.

Schwab Intelligent Portfolios FAQ

What fees does Schwab Intelligent Portfolios charge?

Schwab Intelligent Portfolios uses a fee-only model.

This means Schwab Intelligent Portfolios gets paid a flat fee regardless of what financial products or services you use. It also means they have a fiduciary responsibility to their clients. Instead of making money on trades commissions or selling products, they recommend an asset allocation and get paid a flat-fee or a percentage of the assets under administration. That requires that they act in their client’s financial best interest at all times.

Schwab Intelligent Portfolios uses a commission-based model. In other words, they get a commission when they sell you investment products, such as stocks or mutual funds.

Schwab Intelligent Portfolios Fees
Description
Monthly Fee	$0 - $30
Commission Based?
Fee Based?
Investment Expense Ratios	0.06% - 0.20%
Management Fee	0% - 1.44%

What management fees does Schwab Intelligent Portfolios charge?

Schwab Intelligent Portfolios charges a fixed monthly fee of $0 to $30 .

Many financial advisors charge based on how much money they oversee by using a fee-structure called “assets under management,” or AUM. For instance, a 0.40% fee translates to $4 per year for every $1,000 an investment advisor manages. Management fees, also known as maintenance fees, cover the operating costs of investment advisors and are typically deducted from your account every month or quarter. The management fee does not cover the underlying expense ratios of the investment vehicles purchased by investment advisors.

What are the investment expense ratios of Schwab Intelligent Portfolios?

Hiring an investment advisor with competitive investment fees is one of the most important steps to maximizing your portfolio's performance. Investment expense ratios can vary drastically depending on the types of accounts and assets involved. A survey by the ICI puts the average expense ratio for actively managed funds at 0.76% and indexed funds at 0.08%. The investment expense ratios of an investment advisor will vary depending on the type of assets they invest in and whether they attach additional charges to fund fees.

Schwab Intelligent Portfolios charges an investment expense ratio that starts at .06% and ranges up to .20%.

What features does Schwab Intelligent Portfolios offer?

Access to human advisors: Robo-advisors are great at keeping costs down and helping investors with modest balances make good investment choices. However, it is also nice to have access to human financial advisors when you need them.

Automatic rebalancing: Having a good balance of investments is important. But a well-balanced portfolio is not something you can set up and forget. Markets are constantly changing and can easily throw your portfolio out of balance. Schwab Intelligent Portfolios allows you to rebalance your investments back to your target asset allocation at set intervals.

What type of investment accounts and asset classes does Schwab Intelligent Portfolios support?

Charles Schwab offers the following types of assets and account types.

Accounts Supported
Supported Options	Unsupported Options
Individual Non-Retirement Accounts Joint Non-Retirement Accounts Roth IRA Traditional IRA Rollover IRA Trusts Custodial Accounts	SEP IRA 529 College Savings Plans Employer Sponsored Plans

These are the investment options Charles Schwab offers its clients.

Investment Choices
Supported Options	Unsupported Options
Stocks Options Bonds International Stocks ETFs	Mutual Funds FOREX Futures Pink Sheets / OTCBB Real Estate Startups Marketplace Loans Cryptocurrencies Treasury Bills

What is the minimum amount you have to invest to open an account with Schwab Intelligent Portfolios?

The minimum amount to open an account with Schwab Intelligent Portfolios is 5000.

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