Not a fan. Would much rather a client invest in the Vanguard robo equivalent. Schwab holds an inordinately large portion of their portfolios in cash, which is why it’s “free” since they make money on their cash spread.
And FWIW – the cash spread is when they (Schwab) make 4-5% on money market (cash) interest, but pay 1-2% to clients. The “spread” is the difference on how they make money.
Robos can be great for people regularly adding money and accumulating assets, but are incredibly difficult to unwind or withdraw from during the distribution phases of their lives.
