LUCAS LASA, Fla.
— When you think of Schwab, you think low-fee, high-quality investments.
But when it comes to money for retirement, the savings company is the exception.
In the past five years, the company has raised more than $1.5 billion from investors including the U.S. government, the U, U.K., and Germany.
So, what makes a Schwab investment good?
Well, the money doesn’t have to be tied to specific investments, like stocks or bonds.
And Schwab invests in low-risk, high return funds with lower fees than other mutual funds.
Here are three things to consider when choosing an Schwab fund:Schwab is known for offering low fees.
Schwab says that in 2018, investors earned an average return of 2.5% on their investments, compared with 6% for mutual funds and 7.6% for bonds.
This is not unheard of for a low-cost fund.
Low fees are good because they make it easy for investors to save and invest for the long term.
Schwabs low fees are more than twice as low as Vanguard and Fidelity.
But the difference can be even greater for some people, as Schwab is a less-efficient investment than Vanguard’s.
For example, in 2018 the average Schwab portfolio returned 7.4%, compared with the 5.4% return that Fidelity managed.
Schwables low fees could be offset by higher returns.
The Schwab Funds portfolio doesn’t offer any specific asset classes.
It is based on the mutual fund company’s investment objectives.
Schwablans portfolio also includes ETFs, mutual funds that are sold by other companies.
Schwb is a major investor in ETFs because they have better return rates than bonds.
Schwabs portfolio also focuses on diversification, including in low to medium-income earners, the lower-income, and those with disabilities.
The Schwab funds have also taken a page out of the Vanguard portfolio by investing in large, diversified mutual funds like American Funds, which offer lower fees and lower risk than Schwablians ETFs.
Schwablans funds also have diversified holdings in a number of asset classes, including real estate, equities, and other asset classes that can offer better returns than Schwab’s more typical high-yield, low-return funds.
Schwibs low fees and diversified investments also make it easier for Schwab investors to diversify their investments.
Schwalab funds are better suited for people with limited financial resources.
For example, Schwablys portfolio may not be suited for individuals who are new to investing or who are on limited income, like people who have been married or divorced.
Schwiblans portfolio can also be more suitable for people who already have retirement savings, or are considering an investment.
The average Schwablian returns 7.2% on investments, and the average mutual fund returns 5.9%.
But the fund’s low fees can offset the higher return.