Robo Schwab

Schwab Robo Comments

Schwab describes their Robo Advisory services as Intelligent Portfolios.

Schwab has a $5,000 minimum level and there is no fee, although some comment that Schwab holds a higher proportion of cash.  While Schwab does not have a fee, they don’t have a person you can talk to.  It is all online.

Schwab uses a broad slate of assets that incorporates nearly 20 asset classes.  I believe this broader slate offers a better long-term risk/return benefit.

They have said that they expect 2-3 typical rebalancings per year based on a 2% Drift.  In other words, when market movement causes asset classes drift more than 2% from their strategic weights, they are rebalanced back to the strategic weight.

Schwab says they can do Roth and traditional IRAs, 529s, Retirement Income withdrawals, etc.

Tax Loss Harvesting uses Back-Up ETFs.  It sounds like the back-up ETFs are required for regulatory purposes.

Schwab starts with Strategic Asset Allocation and they incorporate Modern Portfolio Theory.  This is a time-tested strategy.

Contact:  866-855-9098.