SAN FRANCISCO, Feb. 14 /PRNewswire-FirstCall/ -- To make it as simple
as possible for people to save for retirement, Charles Schwab & Co. Inc.
has launched the "15-Minute IRA," a step-by-step process that makes it
quick and easy to open an IRA account online. Selecting an investment
vehicle can be as simple as choosing from among four Schwab Target date
mutual funds, designed to adjust over time to help meet retirement goals,
included on the application. Everything needed to open, fund and make an
investment selection in an IRA can be found at http://www.schwab.com/OpenIRA . The
debut of Schwab's "15-Minute IRA" coincides with the release of a new
survey that shows investors aged 25-40 are looking for a simpler way to
save for retirement.
"The process of opening an IRA and selecting investments can be
intimidating, particularly for someone who may be newer to investing," said
Rene Kim, senior vice president for Schwab Investor Services. "Our new
15-Minute IRA guides you through the application, funding and investing
process in less time than it takes to order a meal at a restaurant."
15 Minutes, Four Simple Steps
In a four-step process that can be accomplished entirely online,
Schwab's "15-Minute IRA" helps consumers:
1. Identify which type of IRA to select
2. Complete the application
3. Make a contribution
4. Choose from one of the Schwab Target funds integrated right into the
application, or select from a wide range of other investments.
The website puts easy-to-understand guidelines on types of IRAs,
funding limits, and investment choices right at the user's fingertips.
The launch of the "15-Minute IRA" comes as many people are looking for
ways to reduce their tax burden prior to the April 17 filing deadline. The
IRA contribution limit for the 2006 tax year is $4,000 for individuals,
$5,000 for investors 50-years or older, and $8,000 for married couples
filing jointly.
A recent survey by Charles Schwab & Co., Inc. found that less than half
(40 percent) of people surveyed ages 25-to-40 currently have an IRA. Many
of those who do not have an IRA (44 percent) say they would be more likely
to open one if it was simple to select an investment that would
automatically help them reach their retirement goal. The survey also found
that the majority of younger investors (84 percent) have begun to take
action planning for their retirement, either by putting money in a savings
account (62 percent) or participating in their company's 401(k) plan (56
percent).
"We're encouraged that younger investors have begun to plan for their
long-term financial future, but many are missing one of the best
tax-advantaged opportunities out there," said Rande Spiegelman, vice
president of financial planning for Charles Schwab & Co, Inc. "An IRA is a
simple way for people to build up their nest egg. If someone starts saving
at age 25, for example, and contributes $2,000/year -- half of the yearly
allowable IRA contribution -- that $2,000 will have grown to nearly half a
million dollars by the time the investor reaches 65."(1)
Schwab IRAs offer a variety of advantages including no account service
fees(2) and access to a wide range of investment options including Schwab
Target Funds and many other highly-rated Schwab and Laudus funds, thousands
of no-load and no transaction fee funds through Schwab's Mutual Fund One
Source(R) platform, and a wide variety of stocks, bonds, ETFs and CDs.
Investors can open an account by visiting http://www.schwab.com/OpenIRA,
calling 1-877-658-4135 or visiting a Schwab branch. Additional resources,
including an IRA Analyzer that helps investors find the IRA type that's
right for them are also available at http://www.schwab.com/IRA .
INVESTORS SHOULD CONSIDER CAREFULLY INFORMATION CONTAINED IN THE
PROSPECTUS, INCLUDING INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES.
YOU CAN REQUEST A PROSPECTUS BY CALLING SCHWAB AT 1-877-658-4135. PLEASE
READ THE PROSPECTUS CAREFULLY BEFORE INVESTING. INVESTMENT VALUE MAY
FLUCTUATE, AND SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN
ORIGINAL COST.
About Charles Schwab
The Charles Schwab Corporation (Nasdaq: SCHW) is a leading provider of
financial services, with more than 300 offices and 6.7 million client
brokerage accounts, 542,000 corporate retirement plan participants, 147,000
banking accounts, and $1.2 trillion in client assets. Through its operating
subsidiaries, the company provides a full range of securities brokerage,
banking, money management and financial advisory services to individual
investors and independent investment advisors. Its broker-dealer
subsidiary, Charles Schwab & Co., Inc. (member SIPC, http://www.sipc.org),
and affiliates offer a complete range of investment services and products
including an extensive selection of mutual funds; financial planning and
investment advice; retirement plan and equity compensation plan services;
referrals to independent fee-based investment advisors; and custodial,
operational and trading support for independent, fee-based investment
advisors through its Schwab Institutional division. The Charles Schwab
Bank, N.A. (member FDIC) provides banking and mortgage services and
products. CyberTrader(R), Inc. (member SIPC, http://www.sipc.org) is an
electronic trading technology and brokerage firm providing services to
highly active, online traders. More information is available at
http://www.schwab.com. (0207-5606)
Important Footnotes and Disclosures
(1) $427,219 based on a moderate growth rate of 7%; assumes the IRA was
funded at the beginning of each year
(2) IRA accounts are subject to a minimum balance charge of $50 per
year if, after receipt of notice and a notice period, their assets remain
below account opening minimums: $2,000. The minimum balance charge is
waived for accounts of households with balances of at least $10,000 or at
least eight equity and/or options trades in the preceding 12 months. Small
Business Retirement accounts are not subject to minimum balance
requirements.
15-Minute IRA account opening statement applies to opening an IRA and
funding it online. Other methods may require additional time.
Charles Schwab & Co., Inc. receives remuneration from fund companies
participating in the Mutual Fund OneSource(R) service for recordkeeping and
shareholder services and other administrative services. Schwab also may
receive remuneration from transaction fee fund companies for certain
administrative services.
Trades in no load funds available through Mutual Fund OneSource service
(including Schwab Funds), as well as certain other funds, are available
without transaction fees when placed through schwab.com or our automated
phone channels. For each trade order placed through a broker, a service
charge applies. Schwab reserves the right to change the funds we make
available without transaction fees and to reinstate fees on any funds.
Funds are subject to management fees and expenses.
SOURCE Charles Schwab
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Related links:
http://www.schwab.com/
CONTACT:
Matt Hurwitz of Charles Schwab,
+1-415-636-3700, or matt.hurwitz@schwab.com
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