Brokerage and banking company Charles Schwab has launched Schwab Intelligent Advisory, the firm’s new hybrid advisory service that combines live credentialed professionals and advanced technology.

Hybrid cars are pretty mainstream nowadays so why not a hybrid wealth manager? Hopefully the batteries don't run out during the meeting of course. Charles Schwab claims that the Schwab Intelligent Advisory makes financial and investment planning more accessible and provides investors with a financial plan tailored to their situation and goals, ongoing guidance and expertise from experienced Planning Consultants, and a fully automated and diversified portfolio.

So pretty much standard prose for a fintech related offering, but they also say all this is available at a very low cost.

Lowest Cost

Low price can often be associated with low quality, so what is the core of the new offering. The service offers a completely paperless account opening and account management experience, and clients can establish automated account funding on a recurring basis.

 With a $25,000 minimum and an annual advisory fee of 0.28 percent of assets with a quarterly maximum of $900, Schwab Intelligent Advisory is one of the most accessible and lowest-cost advisory solutions available to investors, says Schwab.

Under the hood Schwab Intelligent Advisory, which was first announced in December 2016, includes:

  • A comprehensive financial and investment plan that starts with a self-guided online planning tool, and is followed by a conversation with a credentialed Planning Consultant.
  • Ongoing guidance from a team of Planning Consultants who are all Certified Financial Planner™ professionals via phone or videoconference.
  • Fully automated, diversified portfolios using Schwab Intelligent Portfolios® asset allocations. The portfolios are comprised of low-cost exchange-traded funds (ETFs) from Schwab and third party providers including Vanguard, iShares and PowerShares.
  • An engaging, interactive experience and customized dashboard where clients can view their plan, their progress toward goals, and portfolio performance – from both a desktop and mobile device.

Leveraging Technology

The service will also appeal to those who prefer to leverage technology to get things done, want to be in control of their finances, and appreciate having the ability to engage with a salaried financial professional when needed.

«Schwab Intelligent Advisory provides a modern approach to financial planning and wealth management that delivers what today’s consumers expect: a personalized experience that leverages technology to make the process easier,» said Terri Kallsen, Executive Vice President and Head of Schwab Investor Services.