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Schwab sings 'Blue' as it rolls out its robo -- and phono -- functions ahead of deadline, with minimums

Schwab Intelligent Portfolios now has breakpoints of $5,000 and $50,000 of assets -- and comes with human broker help

Monday, March 9, 2015 – 10:07 PM by Lisa Shidler
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Schwab Intelligent Portfolios is now evocatively named 'Blue'


Adam

Adam

March 9, 2015 — 11:36 PM

“I just don’t trust Schwab. I don’t feel they are a good partner. They do provide some decent services, but so does everybody else,” this advisor said.

https://wealthmanagement.com/rias/crowded-out?NL=WM-13&Issue=WM-13_20150306_WM-13_566&sfvc4enews=42&cl=article_1&YM_RID=CPG09000002762903&YM_MID=2143&elqaid=2143&elqat=1&elqTrackId=3d3bd4b8f1a746ce9a2a8a901c1bc4b5

bv

bv

March 10, 2015 — 12:48 AM

Well this is the jump the shark moment for me. Ive been using low cost etf indexes for.years.. now everywhere u turn everybody is doing it… mint..schwab…and many many othe robos out there. “Automatic investing… algorithim investing.. ha ha .. lipstick on pig. Definately time to go active… i see deep value funds and anything non index setting up for a run…. my question… why not just use the ishares allocation etfs… been aro7nd for y years… low cost… it is becoming very crowded

Sonia

Sonia

March 10, 2015 — 2:59 AM

Trillion Dollar Opportunity ! Schwab rolled out much awaited platform. Consumers get it for free but Schwab makes 75 bps through other avenues!

Jack Waymire

Jack Waymire

March 10, 2015 — 3:38 PM

An established robo may charge 25 bps + 25 bps of ETF expenses for its services. Schwab charges 75 bps including the ETFs for its services. Schwab bank fees are the frosting on the cake – probably makes its profit model work that much better. It stands to reason brand names can charge higher fees than non-brand names. Since the focus appears to be accounts under $100,000, I guess RIAs are not supposed to be threatened by this service. I wonder what Schwab is disclosing to investors in the fine print? The devil is in the details.

Jeff Spears

Jeff Spears

March 10, 2015 — 6:19 PM

One one more thing…you can call us 24/7 with your questions.

Schwab just dropped the mike.

Stephen Winks

Stephen Winks

March 10, 2015 — 10:09 PM

Interesting and telling comments from Schwab and ROBO Advice detractors. They miss the point that Robo Advice is essential if one is going to render continuous, comprehensive counsel required by statute for fiduciary (professional) standing as it takes the advisor beyond the human three dimensional limitation to reason. [If you wanted to manage the six values of risk, return, tax efficiency, cost structure, liquidity and time for 500 clients, utilizing the ten thousand investment alternatives at your disposal you would have to manage a three billion dimensional equation in real time in order to add value which is not humanly possible].

Schwab Blue and better iterations to follow will change how we invest for the good of the investing public. For those that question investment strategy, everything is relative. How well do they fare in a competitive comparison over time? Schwab Blue might interject a little humility when it comes to performance and ultimately professional standing which is so illusive in todays hyperbole. Wall Street, both brokerages and custodians, might want to wake up—before they are left behind.

SCW

Jeff

Jeff

March 11, 2015 — 3:41 PM

Don’t drink the Kool-Aid. Another example of the “new” diet soft drink or “light” cigarette marketing. To think that investing is nothing more than “forking over” the cash and let someone else or some algorithm will bring us all to investment success is ludicrous. Active particip154ation by the investor is proper and should be expected.

Maury

Maury

March 12, 2015 — 4:30 PM

Jack Waymire – Schwab doesn’t charge 75 bps, they charge 0 bps + at most 26 bps in the underlying expense ratios of the ETFs. Let’s not confuse people.

A Raymond James Analyalyst (Conflict of interest flag there…) wrote a report saying that by having ~15% in cash in, investors are giving up on a 5% return they could have had with that money instead. Thus the OPPORTUNITY COST is 75 bps by his calculation. Never mind that you’d also be taking on more risk.

There is no management fee…

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