Investment Advice at Schwab: Three Things You Might Not Know
In a press release last week we shared some new data and insights about how our clients are feeling about the markets and investing and what they are doing about getting advice.* Here are some of the highlights:
• Just 26% feel better off financially than they did one year ago, down from 44% who said they felt better off in Q4 2010.
• Only one-third (33%) now say they feel confident in their ability to make investment decisions.
• Seventy-seven percent say they’re most confident when receiving ongoing or periodic professional investment advice.
We know it continues to be a challenging time for investors. And while Schwab is still often thought of as a “discount” brokerage for mostly self-directed investors, the fact is that we have a wide range of services and products for people looking for professional advice. With that in mind, here are three things you may not know about investment advice at Schwab:
1. Schwab isn’t new to providing investment advice: Our first advice offer for clients, Schwab Private Client turns 10 this year. Our full suite of advisory programs has grown from there to stand at $109 billion in assets at 2011 year-end.
All told, more than half of all client assets at Schwab now benefit from some kind of professional investment advice or money management through our own financial consultants and managed investing products, as well as through the many thousands of registered investment advisors we support through Schwab Advisor Services, which first began working with advisors in 1987.
2. Our advisory programs are growing: Clients’ desire for periodic advice and guidance or ongoing professional investment management is growing. In 2011, newly enrolled accounts in the Schwab’s advisory solutions grew by 10%, and net assets in fee-based advice solutions increased by 33%. On average, investors added more than $1.6 billion per month in new assets to Schwab’s advice solutions throughout 2011.
3. You don’t need a lot of money to get at least a little help: We think almost everyone can benefit from at least a little help from a professional. That’s why we provided around 28,000 complimentary consultations for clients in 2011. In addition, more than 107,000 investors attended nearly 11,000 in-person events hosted by Schwab in 2011. The vast majority of these events were free investing workshops which are open to both clients and non-clients. In 2011 Schwab also helped more than 12,000 clients with financial plans!
*The Schwab Survey of Investor Confidence was conducted in December 2011 and aggregates the views of more than 1055 retail clients. Online interviews were conducted December 1-13, 2011 by global market research firm Synovate, which is not affiliated with Schwab.
Please ask to see the Schwab Private Client and the Schwab Private Client Investment Advisory, Inc. Disclosure Brochures for information and disclosures about this service. Schwab Private Client Investment Advisory, Inc. is a Registered Investment Advisor and affiliate of Charles Schwab & Co., Inc.
Schwab Advisor Services™ serves independent investment advisors and includes the custody, trading and support services of Schwab. Independent investment advisors are not owned by, affiliated with or supervised by Charles Schwab & Co., Inc.
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