Charles Schwab, Schwab Index Advantage (R)
  • RETHINK YOUR 401(k)
  • A NEW APPROACH
  • SCHWAB INDEX ADVANTAGE
  • 401(k) RESOURCES
  • CONTACT US
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Rethink Your 401(k) With Schwab Index Advantage (R)
Let's Talk

Call 877-223-7036 or complete the Contact Us form at any time to have a Schwab representative contact you.

A New Approach

When it comes to building retirement savings, studies indicate that there are two keys to better results: cost and advice.1,2 Schwab Index Advantage® combines these two principles in one packaged offer to help participants achieve better outcomes.3

Schwab Index Advantage

Our innovative offer combines low-cost4 index funds, built-in third-party investment advice services,5 and a personalized saving strategy—a powerful combination developed by Schwab*, an industry leader in sponsor and participant satisfaction.

401(k) Resources

Schwab is committed to helping you select a 401(k) plan option that works for your employees. Use these key resources to build your understanding.

Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges, and expenses. You can request a prospectus by calling Schwab at 1-800-435-4000. Please read the prospectus carefully before investing.

* Schwab refers to Schwab Retirement Plan Services, Inc. and Schwab Retirement Plan Services Company.

1 Government Accountability Office (GAO), Private Pensions: 401(k) Plan Participants and Sponsors Need Better Information on Fees, October 2007.

2 Financial Engines and Aon Hewitt, Help in Defined Contribution Plans: 2006 Through 2010, September 2011. "Help" in this research is defined as target-date funds, managed accounts, and online advice.

3 Past performance is not an indication of future results. Outcomes are not guaranteed.

4 For illustrative purposes only. The definition of "low-cost" is based on Schwab's research using (1) 2010 data from 195 defined contribution plans serviced by Schwab Retirement Plan Services, Inc. and Schwab Retirement Plan Services Company, and (2) 2010 data from a comparison set of plans serviced by other providers. In this comparison set, the weighted average operating expense ratio (OER) for midsize plans ($20 million–$100 million) using actively managed funds was $55 to $95 per $10,000 invested, and for large plans ($100 million–$350 million) the OER was $50 to $75 per $10,000 invested. For similar-sized plans adopting Schwab Index Advantage, the weighted average OER for index mutual funds or ETFs should be about $15 to $25 per $10,000 invested. This example does not include any fees associated with professional, independent advice services or other fees that may be charged to a participant account.

5 The savings and investment service provides participants with a retirement savings and investment strategy, a major component of which is a discretionary investment management service furnished by GuidedChoice Asset Management, Inc. ("GuidedChoice"), an independent investment advisor. GuidedChoice creates discretionary managed portfolios based on Modern Portfolio Theory using investment alternatives available in the plan. GuidedChoice is not affiliated with or an agent of Schwab Retirement Plan Services, Inc. ("SRPS"), Charles Schwab & Co., Inc. ("CS & Co."), or their affiliates. Neither CS&Co., SRPS, nor their affiliates supervise, make recommendations with respect to, or take responsibility for monitoring the services provided to participants by GuidedChoice. Schwab Advice Consultants, who are employees of CS&Co. and not of GuidedChoice, facilitate participant access to the GuidedChoice services, but do not provide investment advice or recommendations regarding the GuidedChoice services or generally as part of the advice services. Diversification and asset allocation strategies do not ensure a profit and cannot protect against losses in a declining market. There is no guarantee a participant's savings and investment strategy will provide adequate income at or through retirement. Fees are charged for the advice services, including its discretionary investment management service, based on the participant's account balance. Participants should carefully consider information contained in the disclosure materials furnished at the employer's direction regarding the services provided by Schwab and GuidedChoice, including information regarding compensation, affiliations, and potential conflicts.

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Schwab Retirement Plan Services, Inc., Schwab Retirement Plan Services Company, Charles Schwab Bank, and Charles Schwab & Co., Inc. are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation. Brokerage products and services are offered by Charles Schwab & Co., Inc., Member SIPC and a registered investment advisor. Trust and custody services and deposit products are offered by Charles Schwab Bank. Schwab Retirement Plan Services, Inc. and Schwab Retirement Plan Services Company provide recordkeeping and related services with respect to retirement plans.

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