Charles Schwab Strikes Alliance with AARP

Charles Schwab & Co. will launch a new financial guidance services program for AARP members, according to today’s announcement. The program, AARP l Financial Guidance Services provided by Charles Schwab, will provide AARP’s millions of members nationwide access to special offers on some of Schwab’s financial guidance services.

AARP currently provides financial education and information through many local and national programs as well as brochures and on aarp.org. However, AARP’s financial education efforts will be enhanced by the new Schwab relationship, which provides AARP members with access to guidance and programs covering many different financial situations.

"Our members tell us that achieving financial security is their top goal along the way to living their best lives,” stated John Wider, president and CEO of AARP Services, AARP’s for-profit subsidiary, in the release. “This new program will give them easy access to straightforward information and financial guidance from a familiar source in a pressure-free setting to help them with their goals and dreams."

Key benefits to AARP members through the program include complimentary financial consultations, educational seminars throughout Schwab’s network of more than 300 branches, and a program fee rebate on Schwab Managed Portfolios, a professionally managed, diversified portfolio of mutual funds designed for a range of investment strategies. AARP members will also have access to a dedicated toll-free number at Schwab and content online.

In the same press statement, Ben Brigeman, EVP for Charles Schwab, commented: “We are in the midst of a challenging economy that has disrupted how many Americans are thinking about and planning for their retirement. Their need for information and access to resources is greater than ever, and through this program, we hope to be able to help many of AARP’s members prepare for retirement on their own terms.”

A recent survey of Americans 50 and older fielded by Schwab shows gaps between financial information received and action taken among those on the verge of retirement. While 67 percent say they know what they need to know to manage their finances successfully, just 10 percent say they feel prepared for planning and saving for retirement.

For the first new account opened at Schwab by an AARP member, Schwab pays AARP a one-time royalty fee for the use of AARP intellectual property (name, logo and mailing list). These fees are used for the general purpose of AARP; they do not increase any fees, commissions, charges, or expenses paid by members to Schwab, according to the release.

Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio