Background: David, 50, had been investing in mutual funds through a managed portfolio with a financial advisor. However, he wanted more control over his investments and lower fees. After researching online brokers, David chose Charles Schwab for its comprehensive range of investment options and low fees.
The Plan: David opened a Schwab brokerage account and began shifting his investments into individual stocks and ETFs. He focused on building a diversified portfolio of domestic and international equities, as well as fixed-income assets. Schwab’s Guided Portfolio tool helped him assess his investment strategy.
Execution: David made use of Schwab’s no-fee ETFs to lower his costs and reinvested dividends to grow his investments. Schwab’s Research & Insights section helped him track market trends and individual stocks. He also participated in Schwab’s online seminars to learn more about market analysis and stock picking.
Outcome: After two years of managing his own portfolio, David’s investments grew significantly. Schwab’s tools, including the Portfolio Checkup feature, allowed him to review and rebalance his portfolio. David was able to achieve better returns than he had with his financial advisor while keeping his investment costs lower.
Lessons Learned: David learned that with the right tools and a willingness to invest time in learning, self-directed investing could be more profitable and flexible. Using Schwab’s resources gave him the confidence to take charge of his financial future and reduce his reliance on advisors.