Brooke Southall

wasn’t selling at 28 bps so lower the price?  Maybe it isn’t the dog but the dog food?

Brooke - where is the answer to your emailed question referred to in your comment at the top of the article?

Yep, we did add it.

Spokesman Rob Farmer says Schwab is ready to eat the losses, but expects customers with larger accounts to want more services.

"For a client who wants an automated portfolio combined with virtual planning and guidance, Schwab Intelligent Portfolios Premium might make sense for them," he says.

Schwab is onto something with their new pricing model.  Within 10 years this will be the norm.  However, Schwab (like all custodians) remains hamstrung in that their main business is account servicing - which won't allow them to get to an optimal solution that involves advice on "held away" assets.

Winning solution will combine independent service providers for advice, implementation and custody.  My $0.02.

Schwab hopes to blend into the subscription world of Netflix, Amazon and Apple by dumping asset-based fees and wooing millennials with Intelligent Portfolios for $30 a month

Charles Schwab & Co.

Stripped down to its essentials, financial advice is a fairly straightforward proposition. Done well, a highly ethical individual stewards the assets and actions of an investor in a personal and professional interchange.
 
But now a vibrant new class of entrepreneurs is staking their fates and their fortunes on the premise that financial advice can be delivered in a better, cheaper, easier, more ethical, more transparent manner and, as a bonus, in a way more devoid of human annoyance on both ends of the transaction.
 
Cue the robo-advisors, arguably a callous misnomer for automated asset management. 
 
The prototypical robo-advisory entrepreneur has more brands on his or her resume than NASCAR. The bona fides of these industry upstarts often include Ivy-level colleges and MBA programs at Harvard or Stanford. They are often flush with IPO dollars realized at concerns like LinkedIn, Facebook, eBay, Amazon  and Microsoft. 
 
Robo-folk believe that technology is not an enabler of advice but rather, if engineered correctly, advice itself in digital form. 
 
And, they believe the best solutions originate in Silicon Valley or academia, not Wall Street. Robo-entrepreneurs are white-boarding the whole business model, culture and technology from scratch in the conviction that little can be learned from a legacy advice system still rooted in an investment banking culture acting under the core premise that if stockbrokers get rich some of the good effects will trickle down to clients – with the clients none the wiser. 
 
Robo-advisors are a scintillating topic for students of the advice game as they grow by hundreds of millions in assets every month, constantly evolve their business models and receive cash infusions from ever-larger swaths of venture capitals.
 
Throw in the fact that robo-advisors have yet to see a dime in profits -- and won’t in the foreseeable future -- and you have real intrigue. 
 
RIABiz has avidly covered the fast-evolving robo-advice phenomenon and will continue to do so. We present the growing body of articles here.

Robo-Advisors

<p>The RIA business is many good things but integrated from a gender standpoint is not one of them. This is not so great. Women are the majority of humanity and they have an asset-building strategy that can't be beat. Women outlive their beer-and-steak mates and end up with big estates. But today's women have too another strategy -- pursuing wealth in the workplace. Yet when they go to find fellow women to talk all this through with, they don't readily find them.</p> 

<p>Companies big and small have for decades fallen over themselves to say that they have women's initiatives but I can't think of one that has amounted to much. But there are stories-- dozens or hundreds -- of them about women exerting their influence on this business and we are starting to collect them. It's a starting place -- documenting the ground being covered by women in the form of engaging tales graphically depicted by the physiognomy of the fairer sex.</p>

Women of Wealth Management

Ex-Betterment exec Cynthia Loh wins 'love' by making digital advice a $30 monthly ding regardless of assets citing its 'approachability'

Schwab hopes to blend into the subscription world of Netflix, Amazon and Apple by dumping asset-based fees and wooing millennials with Intelligent Portfolios for $30 a month

Saverio Paglioni

Laura C

Brooke Southall

Brian Murphy

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Schwab hopes to blend into the subscription world of Netflix, Amazon and Apple by dumping asset-based fees and wooing millennials with Intelligent Portfolios for $30 a month

Saverio Paglioni

Laura C

Brooke Southall

Brian Murphy

Related Moves

April 20, 2024 at 2:54 AM

December 20, 2023 at 1:52 AM

April 29, 2023 at 1:36 AM

February 23, 2023 at 8:14 AM

RIABiz Directory

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