Add-on models

In addition to pure new entrants we also find existing businesses in the financial services industry  who also have a new, separate division that seeks to operate akin to a new entrant. Depending on account size, complexity and what you pick, you may be offered model portfolios which you may or may not be able to customize, access to an internal or external financial advisor, managed accounts and financial planning services.

Here are some of these add-on offerings.

5- discount brokers

Charles Schwab, in addition to its basic discount brokerage business,  offers to its online clients who seek more help either managed portfolios, diversified portfolios with in-house advisers or a list of external network of advisers to choose from for more complex needs (see here for more).  TD Ameritrade, in addition to its basic discount brokerage business,  also  offers model portfolios,  or an external network of independent advisers (each of whom according to the site  is legally required to make every investment decision with your best interest in mind)  chosen with the help of an internal TD employee (see here for more).

Vanguard, in addition to its basic low-cost index funds business, offers in-house advisers on an occasional or dedicated basis (for example, see here for more ). Fidelity Investments similarly offers model or personalized portfolios with access to an in-house adviser on a one-off or dedicated basis (see here for more )

Savant Capital, a long-time independent money manager, has added a new division, Savant Portfolios ,   to manage smaller portfolios with a less-personalized support.

Comments on add-on models

Here are some comments on some of some of these add-on models.

Big names like Schwab, Fidelity, and TD Ameritrade aren't merely processing cheap stock trades anymore. If you're investing as little as $25,000, they'll design your portfolio.It used to be that there were two kinds of stockbrokers: full-service with advice and no-frills discount. Now that everybody sells cheap trades, the discounters want to sell advice too. The big players offer services that will choose for you a mix of mutual funds or ETFs (low-cost funds that trade like stocks and replicate an index such as the S&P 500). Instead of designing each new portfolio from scratch, the brokerage is slotting you into one of a set of model portfolios. This approach has limits. It doesn't pick funds for your 401(k), for example. But if you have a large IRA you'd like some help with, it could fit the bill. Depending on the program, you may get help from an in-house "consultant" in choosing the best mix. But with TD Ameritrade's Self-Directed Amerivest portfolios, you can pretty much go it alone using online tools.
You start by specifying how much money you'll want and how long you have to save for it. Then you add some information about your tolerance for risk. Amerivest's calculator tells you the lump sum you'd need today to finance that goal; you can then make adjustments to see what happens if you make regular contributions over time.
After that, the program steers you to a diversified portfolio of a dozen or so ETFs. A "moderate/high risk" portfolio, for example, is 76% in the stock market. You can customize it if you like. From there, the portfolio doesn't change unless you tell it to, although you can set up automatic rebalancing -- that is, selling winners and adding losers to get back to your original allocation. That's a bit different from the programs offered by Fidelity and Schwab, where a manager has discretion to choose the funds in your account and rebalance for you. (TD Ameritrade also has a separate discretionary product.)
None of these programs have automatic "glide paths" that reduce your equity stake and risk as you age. However, Schwab and Fidelity consultants may help you do that when you periodically review your portfolio. With Self-Directed Amerivest you'll have to remember to do it yourself, so it's best for those who want to stay fairly involved in their investments. Henry Mannes

Charles Schwab & Co. offers its customers a one-time consultation with a certified financial planner for $2,000. Some more sophisticated Schwab investment services require that customers invest a minimum of $100,000 or more.  Schwab declined to comment. Glazer

Schwab and Fidelity offer a range of so-called managed accounts, portfolios of funds and individual securities assembled by professional money managers. At Schwab, the minimum account size is $25,000 for a diversified portfolio of mutual funds or exchange-traded funds. Annual account fees range from 0.2% to 0.9% of assets, on top of the underlying fund fees.

At Vanguard you can buy differential, separately-charged levels of service:

You also can buy a financial plan that comes with a list of recommended investments. At Vanguard, the cost is $1,000 for those with accounts under $50,000, and $250 for those with between $50,000 and $500,000 in assets at the firm. This includes the plan and a one-time phone consultation with an adviser. For your own personal financial planner who'll provide continuing investment recommendations, Vanguard charges an annual "service" fee of 0.7% on the first $1 million in assets, 0.35% on the next $1 million, and 0.2% on subsequent amounts—on top of its fund expenses, which average 0.19%. There's a $500,000 account minimum, and a minimum annual service fee of $4,500. Geer

Savant Capital, a long-time independent money manager, has added a new division to manage smaller portfolios with a less-personalized support.

Savant Capital Management is offering technology-savvy investors an online version of the comprehensive investment advice that its advisers offer clients who come into one of its offices. The 26-year-old firm will charge eSavant customers less than for traditional service if clients are bringing smaller amounts of assets to the firm. Clients bringing in at least $500,000 will be charged the same 1% on assets with a $900 a year minimum whether they use eSavant or the traditional approach. Clients who bring Savant $50,000 to $500,000 in assets today are charged 1.5%.  The new model will be ideal for clients who only want to conduct business online and those who may be living in an area without access to experienced, comprehensive advisers, he said. The three eSavant advisers are certified financial planners and their clients will be able to e-mail, telephone and hold video chats with their adviser. “The client can be anywhere and the adviser can be anywhere,” Mr. Brodeski said. “The idea is to provide full-blown adviser relationships to remote markets.” eSavant has a different web interface and software for its users and the processes are different than for traditional clients, but the investment products are the same and the results comparable, he said. Clients of this segment of Savant will have to be comfortable with technology, Mr. Brodeski said. L:iz Skinner   or doc.22xx- Skinner 2013 Online investing Savant Capital.pdf

Here is their rational for opening the new division:

Savant Portfolios is a new division of Savant Capital Management, which has provided financial planning and investment services for over 25 years. Savant Portfolios clients receive a similar disciplined, tax-efficient, and proven investment approach as that offered to Savant Capital Management’s high net worth clients. However, Savant Portfolios is focused solely on investment management for clients who do not require complex integrated financial planning and tax management. Our simpler platform allows clients to avoid the higher minimum fees associated with these services….Savant Portfolios serves clients who have between $50,000 and $500,000 of investable assets. The services are primarily investment focused and are appropriate for those with less complex needs, people just starting to invest, family members and friends with smaller portfolios, and retirees with 401(k) rollovers. Comprehensive financial planning is available for a separate fee. See brochure comparing regular and online services 

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