Frequently Asked Questions

ABOUT INSTITUTIONAL INTELLIGENT PORTFOLIOS®

Please check with your advisor to confirm the minimum investment. The program requires at least $5,000 to open an account.

Institutional Intelligent Portfolios offers around-the-clock customer service from Schwab. If you have a question about your account, contact either your advisor or a Schwab professional, who is available 24/7 via phone at 877-805-3399.

OPENING MY ACCOUNT

Advisors don't manage passwords for you, and you should not share logins and passwords with advisors. Advisors can view their clients' Institutional Intelligent Portfolios accounts via online tools made available to them, or by co-browsing with you.

Institutional Intelligent Portfolios accounts can be funded with cash or equity securities (individual stocks, ETFs, or mutual funds). Cash can be added through deposits, cash journals from another Schwab account, wires, or MoneyLink. To fund with equity securities, clients can make the request to their advisor who in turn can initiate internal transfers through Schwab Advisor Center.  ACAT and non-ACAT Transfers of Assets (TOA) from other financial institutions into Institutional Intelligent Portfolios accounts are also available using standard processes in place for those transactions. 

Yes, you are able to set up one-time or recurring deposits and withdrawals at any time through institutionalintelligent.schwab.com or through schwaballiance.com. New funds are typically invested on the trading day following the contribution. 

You can also elect to have dividends and interest and capital gains withdrawn, via a form on the Institutional Intelligent Portfolios website.

Mobile check deposits and cash transfers from other Schwab accounts are usually available same day, if the request is made during regular business hours. Wire transfers to an Institutional Intelligent Portfolios account also appear same day, while Automated Clearing House (ACH) transfers typically take one or two business days to process. After the cash and deposits are transferred, it can take approximately one additional business day for the funds to be invested into a portfolio. Initial deposits are not invested until your advisor approves your portfolio.

Yes. To roll over an old 401(k), select Rollover IRA as the account type, and choose Transfer from an outside retirement account when you get to the funding method step.

Next, call your advisor for assistance with the details.

Finally, you or your advisor should contact your former employer's plan administrator and tell them you want a direct rollover of your plan assets.

Your advisor works with you to:

  • Complete any forms required by your former employer.
  • Decide how you want your retirement assets distributed.
  • Ask your former employer to deposit your funds directly into your Institutional Intelligent Portfolios Rollover IRA via wire or check.

To prevent funds from being taxed, the check should be made payable to "Charles Schwab & Co., Inc., FBO (Your Name)."

For an easy deposit, give your former employer your Institutional Intelligent Portfolios Rollover IRA account number and ask them to include it on the check. 

Instruct your former employer or plan administrator to mail the check to: Charles Schwab & Co., Inc., P.O. Box 628291, Orlando, FL 32862-8291.

Yes. To transfer a Roth, Traditional, or previous Rollover IRA from another financial services provider, select either Roth IRA or Traditional IRA as the account type (depending on your individual needs), and choose Transfer from an outside retirement account when you get to the funding method step.

Next, call your advisor for assistance with the details.

You or your advisor should contact your custodian and tell them you want to transfer your IRA assets directly to your Institutional Intelligent Portfolios IRA via wire or check.

To prevent funds from being taxed, the check should be made payable to "Charles Schwab & Co., Inc., FBO (Your Name)."

For an easy deposit, give the custodian your Institutional Intelligent Portfolios IRA account number and ask them to include it on the check.

Instruct your custodian to mail the check to: Charles Schwab & Co., Inc., P.O. Box 628291, Orlando, FL 32862-8291.

IRA beneficiaries do not automatically transfer from any other Schwab IRA account to an Institutional Intelligent Portfolios IRA. Clients need to designate beneficiaries on their Institutional Intelligent Portfolios IRA online at schwaballiance.com or by completing the form available on the Institutional Intelligent Portfolios website.

IRA beneficiaries do not automatically transfer from any other Schwab IRA account to an Institutional Intelligent Portfolios IRA. Clients need to designate beneficiaries either when opening the account or online at schwaballiance.com. A form is also available on the Institutional Intelligent Portfolios websitewebsite under the 'Legal and Account Forms' tab.

Institutional Intelligent Portfolios accounts may be closed by completing an Institutional Intelligent Portfolios account closure form.

ABOUT MY ACCOUNT

Yes, cash can be withdrawn from the account at any time. To do so, log in to your Institutional Intelligent Portfolios account at institutionalintelligent.schwab.com and request a transfer to another brokerage or bank account at Schwab or to another institution. Funds are made available immediately unless the withdrawal request exceeds the cash allocation in the portfolio your advisor has selected. If the withdrawal requires the sale of funds to provide the requested cash, the availability of the cash is delayed until the sale transactions have settled. After the withdrawal, your portfolio is rebalanced to its target asset allocation if it has drifted from the portfolio's target profile.

Every portfolio has a target asset allocation that has been determined by your advisor. Over time, however, contributions/withdrawals, gains, and losses cause your portfolio to stray from the original target, and it can become unbalanced. The solution is rebalancing, the act of periodically buying or selling assets to restore your portfolio to its target allocations. Institutional Intelligent Portfolios rebalances automatically, thanks to an algorithm that adjusts your account when an asset class shifts a certain amount above or below the target range set by your advisor.

The Institutional Intelligent Portfolios algorithm checks to determine if asset class percentages remain within a prescribed drift tolerance.

If an asset class has drifted above its target allocation by a sufficient amount, the asset class is sold to bring it back to its target allocation, set by your advisor. The cash received from the sale is allocated to the asset classes that are underweight.

If an asset class has drifted below its target allocation by a sufficient amount, additional shares of the asset class are bought to bring it up to its target allocation, set by your advisor. To make this purchase, overweight asset classes are sold down until there is enough cash to make the purchase.

ACCESS TO MY ACCOUNT

Advisors cannot link to your Schwab Intelligent Portfolios account. You would need to close the Schwab Intelligent Portfolios account and open a new Institutional Intelligent Portfolios account in order to link to an advisor.

Client agreements for Institutional Intelligent Portfolios are different from those for standard brokerage agreements or Schwab Intelligent Portfolios agreements. The available method for you to be enrolled in a portfolio designed by your advisor and agree to terms for Institutional Intelligent Portfolios is via the online account open process.

On Schwab Alliance, you are able to view account information (balances, positions, transactions, statements, etc.). You can transfer money between your Institutional Intelligent Portfolios account and another Schwab account or transfer money to an external account using MoneyLink.

You cannot trade, edit dividend reinvestment or capital gains instructions, or initiate checks and wires.

Institutional Intelligent Portfolios and Schwab Alliance share credentials. From the Schwab Alliance Account Summary page, you can click Access Institutional Intelligent Portfolios site, which takes you to a separate website. You are not required to reenter your user ID or password to access the Institutional Intelligent Portfolios website.

PRICING

Advisors pay an annual 0.10% fee on assets enrolled in Institutional Intelligent Portfolios if they custody less than $100 million in assets at Schwab outside of Institutional Intelligent Portfolios. Additionally, Schwab Bank® earns interest revenue on the cash feature in the accounts. Also, Schwab affiliates can earn revenue from the underlying assets in Institutional Intelligent Portfolios accounts. This revenue comes from managing Schwab Funds® and Schwab ETFs and providing services relating to third-party funds that advisors may select for the portfolios. Schwab may receive remuneration from fund companies for recordkeeping, shareholder services, and other administrative services. Revenue may also be received from the market centers where ETF trade orders are routed for execution.

Schwab Bank earns revenue based on the interest it receives by investing the cash, minus the interest paid on the deposit and the cost of FDIC insurance (which Schwab pays). Schwab Bank deposits are FDIC insured up to $250,000, and that amount includes the principal and accrued interest in the cash portion of Institutional Intelligent Portfolios accounts as well as any other cash deposits you may have at Schwab Bank.

Yes, cash earns interest at a rate that is determined by taking the greater of (i) the rate determined by reference to a third party index for retail deposits at the $100,000 level based on a survey  as calculated by RateWatch; or (ii) the rate paid on cash balances of $1,000,000 or more in Schwab's bank sweep program for brokerage accounts. See Current Interest Rates to see the rate applied to Cash Balances.

Institutional Intelligent Portfolios® ("IIP") is a technology and service platform made available by Schwab Performance Technologies ("SPT") to independent investment advisors (“Advisors”) who maintain a business relationship with Schwab Advisor Services™, a division of Charles Schwab & Co., Inc. ("Schwab"). IIP is used by Advisors to provide their clients with an automated investment management service. Schwab, a registered broker-dealer and member SIPC, provides custody, trading and support services. Brokerage products, including the Schwab One© brokerage account, are offered by Schwab. SPT and Schwab are separate companies affiliated as subsidiaries of The Charles Schwab Corporation, but their products and services are independent from each other. Your relationship is solely with your Advisor and not with SPT.

Charles Schwab & Co., Inc. and Charles Schwab Bank are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation. Brokerage products, including the Schwab One® brokerage account, are offered by Charles Schwab & Co., Inc., Member SIPC. Deposit and lending products are offered by Charles Schwab Bank, Member FDIC and an Equal Housing Lender. Schwab Advisor Services™ serves independent investment advisors and includes the custody, trading and support services of Charles Schwab & Co., Inc., Member SIPC.

The cash allocation in Institutional Intelligent Portfolios® is accomplished through enrollment in the Schwab Intelligent Portfolios Sweep Program ("Sweep Program"), sponsored by Charles Schwab & Co., Inc. ("Schwab"). By enrolling in Institutional Intelligent Portfolios, clients consent to having the free credit balances in their Institutional Intelligent Portfolios brokerage accounts swept into deposit accounts at Charles Schwab Bank® ("Schwab Bank") through the Sweep Program. Schwab Bank is an FDIC-insured depository institution affiliated with Schwab Performance Technologies (“SPT”) and Schwab. Cash balances held in the Sweep Program at Schwab Bank are eligible for FDIC insurance up to allowable limits.

Funds deposited at Charles Schwab Bank are insured, in aggregate, up to $250,000 based on account ownership type, by the Federal Deposit Insurance Corporation (FDIC).

Accounts must maintain a minimum balance of $5,000 to be eligible for automatic rebalancing.

Diversification, automatic investing and rebalancing strategies do not ensure a profit and do not protect against losses in declining markets.

Schwab affiliates do earn revenue from the underlying assets in Institutional Intelligent Portfolios accounts. This revenue comes from managing Schwab ETFs™ and Schwab Funds® and providing services related to certain third-party funds that can be selected for the portfolios, and from the cash feature on the accounts. Revenue may also be received from the market centers where fund trade orders are routed for execution.

Charles Schwab & Co., Inc. receives remuneration from certain third‐party ETF companies participating in Schwab ETF OneSource™ for record keeping, shareholder services and other administrative services, including program development and maintenance. Participating firms also may make additional payments for other ETF-related opportunities, such as education and events and reporting.

Charles Schwab & Co., Inc. (Member SIPC) receives remuneration from fund companies in the Mutual Fund OneSource® program for record keeping, shareholder services and other administrative services.

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