The Threat from Schwab’s “Free” Advisory Service

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The news was stunning.

In a press release dated July 10, 2023, Schwab announced that “retail clients with more than $1M in assets at Schwab will be automatically enrolled in Schwab Private Client Services...”

Retail clients with over $10 million in assets held at Schwab will be enrolled in Schwab Private Wealth Services.

The benefits were described in the release as follows:

As part of these new experiences, all HNW and UHNW clients have access to a dedicated Schwab consultant who is responsible for their overall relationship with Schwab at no additional cost to them. This consultant can help clients manage their financial life, help them choose the right level of advice or services they need, create a personalized financial plan, and connect them to a range of Schwab’s wealth management specialists.

The services of the “specialists” will be fee based.