Schwab Releases New Retirement Product

February 20, 2003 ( - Charles Schwab Corporate Services is giving plan sponsors more options in how participant retirement accounts are managed.

Schwab Retirement Solutions package, designed to accommodate people at different stages in the retirement planning process, allows participants to chose between a Professionally Managed Solution and Employee-Managed Solution.  

The Professionally Managed Solution is being catered to participants with less time to devote to the management of their retirement plan portfolio.   Participants in this option may choose investments in a portfolio that is professionally managed at a fund level.   Funds are then selected based on their target retirement year:   2010, 2020, 2030 or 2040. Each fund’s investment mix and asset allocation are gradually adjusted with the goal of balancing risk and return, growing more conservative over time.

Investment options include four new Schwab Managed Retirement Trust Funds.   The new fund investment portfolios are sub-advised by PIMCO, Dodge & Cox, Goldman Sachs, Invesco, and Bank of Ireland. Schwab’s internal investment committee, in consultation with Callan Associates, Inc, will then provide oversight of the investment decisions.


The Employee-Managed Solution includes a traditional menu of sponsor-selected investment choices for participants who prefer to manage their own portfolios. This option can also include the Schwab Personal Choice Retirement Account (PCRA), a self-directed brokerage account thatprovides access to investments outside of a plan’s core investment offerings. Participants choosing this option can manage their accounts themselves or hire a professional advisor to manage their accounts.