Schwab Intelligent Portfolios – Online Robo Advisor

Tax-loss harvesting is available for clients with invested assets of $50,000 or more in their Schwab Intelligent Portfolios account. Clients must enroll to receive this service. Please be aware that the ability to realize significant tax benefits from tax-loss harvesting depends upon a variety of factors, and no assurance can be offered that a particular investor will in fact realize significant tax benefits.This page illustrates the possible benefits of reinvesting federal income tax savings, if the portfolio weights associated with a hypothetical portfolio of moderate risk held in a taxable account had been in existence and employed for the period specified, and does not reflect actual results. The hypothetical example is designed to allow investors to understand and evaluate the application of tax loss harvesting to a portfolio by seeing the potential benefits from federal income tax savings that may have occurred during a certain time period. While the hypothetical results reflect the general application of tax loss harvesting, they have certain limitations and should not be considered indicative of future results by any client. In particular, the example results do not reflect actual federal income tax savings in an actual account, so there is no guarantee that, in fact, an actual account would have achieved the results shown. Moreover, the potential federal income tax savings do not reflect investments

outside the program that could impact the utilization or realization of such savings. The hypothetical example results also assume that federal income tax rates would have remained static over the period. Index returns were used when ETFs in the Portfolios were not in existence. Hypothetical fees were not applied to index returns to simulate ETF net of fees performance, and therefore, the federal income tax savings would have been higher had actual simulated ETF fees been applied in the hypothetical Portfolios. The simulation used total return data. For purposes of estimating hypothetical historical federal income tax savings, the portfolio weights associated with a hypothetical portfolio of moderate risk were assumed to be static throughout history. In reality, the portfolio allocation is likely to change over time.

The tax-loss harvesting example is based on a hypothetical moderate risk portfolio based using the following asset allocation and strategic benchmarks: 15% U.S. large company stocks, 9% U.S. small company stocks, 11% int’l developed large company stocks, 7% int’l. developed small company stocks, 7% int’l. emerging market stocks, 3% U.S. REITs, 2% int’l. REITS, 2% U.S. Treasuries, 3% U.S. investment-grade corporate bonds, 7% U.S. securitized bonds, 1% U.S. inflation-protected bonds, 4% int’l. developed country bonds, 8% U.S. corporate high-yield bonds, 4% int’l. emerging market bonds, 5% gold and other precious metals, and 12% cash investments.

Category: Advisor

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