Firm offers allocation advice, performance report for 400 dollars.
Charles Schwab & Co. is offering fee-based portfolio recommendations to customers. The new 400 dollar portfolio review service includes a printed report with allocation recommendations and performance data. The firm offers two face-to-face meetings as part of the deal as well.
Schwab's portfolio consultation launch debuted in March with an advertising blitz. It is the latest move in Schwab's attempt to offer a range of service levels.
Under the program, Schwab investment representatives will examine the customer's goals, assets and investments, time horizon, risk tolerance, tax status and investing experience. The consultation can be done over the phone, but Schwab prefers its representatives meet with clients, a firm spokesperson says.
At the second meeting, clients will be given a printed report with investment suggestions and any recommended changes in asset allocations. Schwab will not offer specific stock or fund picks. Clients will be given a list of recommended funds or a list of stocks screened for performance. Third-party research is provided from First Boston, Morningstar, Bloomberg and other research firms. The guidance will outline strategies for rebalancing.
The report compares the client's portfolio performance to several indexes like the S&P 500 and Russell 2000. Over the course of the year, consultation clients will receive quarterly performance updates.
The service is not designed to provide ongoing advice, according to the spokesperson. Clients can pay 400 dollars to continue with the program, but the spokesperson notes that "this is an in-depth portfolio checkup. There'd be no reason to repeat it every year."
Customers who need more or ongoing advice will be referred to one of the independent advisers in Schwab's referral program.