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WashingtonWise

English, Finance, 1 season, 40 episodes, 20 hours, 18 minutes
About
Our finances, portfolios and the markets are affected daily by the policies and politics coming out of Washington. In each episode of WashingtonWise, host Mike Townsend, Charles Schwab’s Vice President for Legislative and Regulatory Affairs, focuses a non-partisan eye on the stories that matter most to investors, and his guests offer actionable suggestions for what to do--and what not to do--with your portfolio. Podcasts are for informational purposes only. This channel is not monitored by Charles Schwab. Please visit schwab.com/contactus for contact options.
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Today’s Yields Put the Income Back in Fixed Income

During more than a decade of near-zero interest rates, many investors got used to low returns from boring bonds. But bonds are exciting again, providing investors with predictable real income and stability. So where do bonds fits in today’s portfolio? Collin Martin, director and fixed income strategist at the Schwab Center for Financial Research, joins host Mike Townsend for an engaging discussion about how the “income” is back in “fixed income.” They discuss Treasuries, corporate bonds, high-yield bonds, the Fed outlook, and whether bonds are now more attractive than stocks. Collin shares his thoughts on how investors should be thinking about potential fixed income opportunities. In Mike’s updates from Washington, he discusses a new report on the health of the Social Security and Medicare programs, provides context to a recent government report on how much it would cost to extend the 2017 tax cuts set to expire next year, and highlights a government effort to ban futures markets where investors can bet on the presidential election outcome and other events.WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple PodcastsImportant DisclosuresInvestors should consider carefully information contained in the prospectus, or if available, the summary prospectus, including investment objectives, risks, charges, and expenses. You can request a prospectus by calling 800-435-4000. Please read the prospectus carefully before investing.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.  All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed.  Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve. Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks, including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications, and other factors. Lower rated securities are subject to greater credit risk, default risk, and liquidity risk.Diversification and asset allocation strategies do not ensure a profit and cannot protect against losses in a declining market.International investments involve additional risks, which include differences in financial accounting standards, currency fluctuations, geopolitical risk, foreign taxes and regulations, and the potential for illiquid markets. Investing in emerging markets may accentuate these risks.Currency trading is speculative, volatile and not suitable for all investors.The information and content provided herein is general in nature and is for informational purposes only. It is not intended, and should not be construed, as a specific recommendation, individualized tax, legal, or investment advice. Tax laws are subject to change, either prospectively or retroactively. Where specific advice is necessary or appropriate, individuals should contact their own professional tax and investment advisors or other professionals (CPA, Financial Planner, Investment Manager) to help answer questions about specific situations or needs prior to taking any action based upon this information.Mortgage-backed securities (MBS) may be more sensitive to interest rate changes than other fixed income investments. They are subject to extension risk, where borrowers extend the duration of their mortgages as interest rates rise, and prepayment risk, where borrowers pay off their mortgages earlier as interest rates fall. These risks may reduce returns.There are risks associated with investing in dividend paying stocks, including but not limited to the risk that stocks may reduce or stop paying dividends.​An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.Past performance is no guarantee of future results, and the opinions presented cannot be viewed as an indicator of future performance.Apple, the Apple logo, iPad, iPhone, and Apple Podcasts are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.0524-2SE2
5/16/202435 minutes, 23 seconds
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Are Global Headaches Triggering Risks & Rewards?

There has been a flurry of geopolitical developments in recent weeks, from Congress passing a massive foreign aid bill to Cabinet members visiting China to India's elections. But the one that has grabbed the most attention―at least among your kids―is the potential banning of Chinese-owned TikTok. Jeff Kleintop, Schwab's chief global investment strategist, joins host Mike Townsend to discuss the implications of these developments for investors and to answer the question of whether TikTok really could be banned. Jeff also explores whether aid to Ukraine could change the course of its war with Russia, whether China's flooding of global markets with goods could impact U.S. inflation, and how shipping challenges are affecting the delivery of goods around the world. He weighs in on India's massive growth and shares his thoughts on how investors can take advantage of potential global opportunities.In his Washington update, Mike discusses the politics around the foreign aid bill and why the congressional legislative agenda is looking thin in the months ahead. He also provides perspective on next year's looming battle over tax reform and shares news of a recent IRS decision that directly impacts anyone who has recently inherited an IRA.WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple PodcastsImportant DisclosuresThe policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. All expressions of opinion are subject to changes without notice in reaction to shifting market, economic, and geopolitical conditions. Data herein is obtained from what are considered reliable sources; however, its accuracy, completeness, or reliability cannot be guaranteed. Supporting documentation for any claims or statistical information is available upon request.Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.Investing involves risk, including loss of principal.International investments involve additional risks, which include differences in financial accounting standards, currency fluctuations, geopolitical risk, foreign taxes and regulations, and the potential for illiquid markets. Investing in emerging markets may accentuate these risks. Commodity-related products carry a high level of risk and are not suitable for all investors. Commodity-related products may be extremely volatile, may be illiquid, and can be significantly affected by underlying commodity prices, world events, import controls, worldwide competition, government regulations, and economic conditions.Digital currencies [such as bitcoin] are highly volatile and not backed by any central bank or government. Digital currencies lack many of the regulations and consumer protections that legal-tender currencies and regulated securities have. Due to the high level of risk, investors should view digital currencies as a purely speculative instrument.Small cap investments are subject to greater volatility than those in other asset categories.Currency trading is speculative, volatile and not suitable for all investors.Diversification and asset allocation strategies do not ensure a profit and do not protect against losses in declining markets.Rebalancing does not protect against losses or guarantee that an investor’s goal will be met. All names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Supporting documentation for any claims or statistical information is available upon request.​This information is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, you should consult with a qualified tax advisor, CPA, Financial Planner, or Investment Manager.Forecasts contained herein are for illustrative purposes only, may be based upon proprietary research and are developed through analysis of historical public data.(0524-003A)
5/2/202431 minutes, 47 seconds
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Is There Any Good News for the Data-Driven Fed?

The Fed says its decisions are data-driven, but recent data on inflation, jobs, and other key economic metrics don't seem to be offering a consistent message. Kevin Gordon, Schwab's senior investment strategist, joins host Mike Townsend to go below the headline data and look at what the Fed is watching as it continues to fight sticky inflation and make decisions on rate cuts. They discuss what impact the reduced expectations for rate cuts in 2024 night be having on the market and whether the sky-high federal debt is contributing to stubborn inflation. Kevin also looks at the state of investor sentiment in a time of uncertainty, explains why the so-called Magnificent Seven may not be so magnificent anymore, and offers some thoughts on why the old "sell in May and go away" adage may not be the best investing strategy in 2024.   Mike also discusses the ongoing battle in Congress over foreign aid and how priorities have shifted; looks at how lawmakers are positioning themselves for a massive policy battle over the expiring 2017 tax cuts; and observes that the regulatory process in Washington is increasingly being played out in the courts.WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple PodcastsImportant DisclosuresThe policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. All expressions of opinion are subject to changes without notice in reaction to shifting market, economic, and geopolitical conditions. Data herein is obtained from what are considered reliable sources; however, its accuracy, completeness, or reliability cannot be guaranteed. Supporting documentation for any claims or statistical information is available upon request.Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.Investing involves risk, including loss of principal.All names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Supporting documentation for any claims or statistical information is available upon request.The information and content provided herein is general in nature and is for informational purposes only. It is not intended, and should not be construed, as a specific recommendation, individualized tax, legal, or investment advice. Tax laws are subject to change, either prospectively or retroactively. Where specific advice is necessary or appropriate, individuals should contact their own professional tax and investment advisors or other professionals (CPA, Financial Planner, Investment Manager) to help answer questions about specific situations or needs prior to taking any action based upon this information.Diversification and asset allocation strategies do not ensure a profit and cannot protect against losses in a declining market.Performance may be affected by risks associated with non-diversification, including investments in specific countries or sectors. Additional risks may also include, but are not limited to, investments in foreign securities, especially emerging markets, real estate investment trusts (REITs), fixed income, small capitalization securities and commodities. Each individual investor should consider these risks carefully before investing in a particular security or strategy.Currency trading is speculative, volatile and not suitable for all investors.Rebalancing does not protect against losses or guarantee that an investor’s goal will be met. Rebalancing may cause investors to incur transaction costs and, when a non-retirement account is rebalanced, taxable events may be created that may affect your tax liability.Forecasts contained herein are for illustrative purposes only, may be based upon proprietary research and are developed through analysis of historical public data.Indexes are unmanaged, do not incur management fees, costs, and expenses and cannot be invested in directly. For more information on indexes, please seeSchwab.com/IndexDefinitions.Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.Apple, the Apple logo, iPad, iPhone, and Apple Podcasts are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.0424-XZLE
4/18/202434 minutes, 18 seconds
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No Matter Your Age, Start Medicare Planning Now

Medicare is one of the toughest federal programs to navigate, a maze of confusing choices, odd deadlines, and potential penalties. Yet it's critically important for everyone, even if you're just starting out in your career, to understand it. On this episode, Susan Hirshman, director of wealth management at the Schwab Center for Financial Research and a Medicare expert, joins host Mike Townsend to help demystify Medicare for listeners. Noting that almost everyone pays into Medicare from their very first job, Hirshman discusses how Medicare needs to be part of your financial plan throughout your life—not just right before you turn 65. She shares insight on the key choices and deadlines in Medicare, how to determine which Medicare option is right for you, the importance of long-term care insurance and health savings accounts to supplement Medicare, and how to avoid common mistakes. Mike also shares his latest updates from Washington, including the president's new budget proposal, the recent vote in the House of Representatives that could lead to banning the popular social media app TikTok, and the court battle that has put a temporary stop to the SEC's controversial new climate risk disclosure rule.WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple PodcastsImportant DisclosuresThe policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. All expressions of opinion are subject to changes without notice in reaction to shifting market, economic, and geopolitical conditions. Data herein is obtained from what are considered reliable sources; however, its accuracy, completeness, or reliability cannot be guaranteed. Supporting documentation for any claims or statistical information is available upon request.Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.Investing involves risk, including loss of principal.Interest income on individual municipal bonds may not be tax-exempt, depending on the bond issuer, the type of bond, or your state of residence. Interest income on bonds issued by U.S. states, cities, counties, their enterprises, and U.S territories is generally federal-tax-exempt, and state-tax-exempt for residents of the state in which the issuer resides. In addition, municipal bond interest for bonds issued in U.S. territories is generally state-tax-exempt in all 50 states. Consult your tax advisor regarding your personal situation.All names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Supporting documentation for any claims or statistical information is available upon request.The information and content provided herein is general in nature and is for informational purposes only. It is not intended, and should not be construed, as a specific recommendation, individualized tax, legal, or investment advice. Tax laws are subject to change, either prospectively or retroactively. Where specific advice is necessary or appropriate, individuals should contact their own professional tax and investment advisors or other professionals (CPA, Financial Planner, Investment Manager) to help answer questions about specific situations or needs prior to taking any action based upon this information.Forecasts contained herein are for illustrative purposes only, may be based upon proprietary research and are developed through analysis of historical public data.Indexes are unmanaged, do not incur management fees, costs, and expenses and cannot be invested in directly. For more information on indexes, please seeSchwab.com/IndexDefinitions.The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.Apple, the Apple logo, iPad, iPhone, and Apple Podcasts are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.(0324-SV74)
3/21/202437 minutes, 9 seconds
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Don't Bet Your Portfolio on Election Year Fears

The presidential election and its impact on the markets loom large among investors' concerns. Mike Townsend tapped the resources of Schwab's Center for Financial Research to answer client questions, including the role of third-party candidates; what happens if either of the main candidates leaves the race; and how the markets, as well as individual sectors, typically perform in the run-up to the election and immediately afterward. Mike also looks at historical market correlations with election outcomes, explains why the Congressional elections may be more important to the markets than the presidential race, and offers key takeaways for how to keep emotions in check and approach this election season.In other Washington updates, Mike discusses the possibility of a government shutdown as the federal budget remains unfunded more than five months after the start of this fiscal year. He also looks at two bills that seem to be on hold, the $95 billion foreign aid bill and the tax bill that would expand the Child Tax Credit and extend some business tax breaks. And he offers an update on two rules approved by the SEC, one requiring public companies to offer more information to investors about risks they could encounter from climate change and another that brings more transparency to the equities-trading process.WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple PodcastsImportant DisclosuresThe policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. All expressions of opinion are subject to changes without notice in reaction to shifting market, economic, and geopolitical conditions. Data herein is obtained from what are considered reliable sources; however, its accuracy, completeness, or reliability cannot be guaranteed. Supporting documentation for any claims or statistical information is available upon request.Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.Investing involves risk, including loss of principal.Diversification and asset allocation strategies do not ensure a profit and do not protect against losses in declining markets.All names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Supporting documentation for any claims or statistical information is available upon request.​This information is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, you should consult with a qualified tax advisor, CPA, Financial Planner, or Investment Manager.Forecasts contained herein are for illustrative purposes only, may be based upon proprietary research and are developed through analysis of historical public data.Performance may be affected by risks associated with non-diversification, including investments in specific countries or sectors. Additional risks may also include, but are not limited to, investments in foreign securities, especially emerging markets, real estate investment trusts (REITs), fixed income, small capitalization securities and commodities. Each individual investor should consider these risks carefully before investing in a particular security or strategy.Indexes are unmanaged, do not incur management fees, costs, and expenses and cannot be invested in directly. For more information on indexes, please see Schwab.com/IndexDefinitions.The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.Apple, the Apple logo, iPad, iPhone, and Apple Podcasts are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.(0324-PA0H)
3/7/202428 minutes, 57 seconds
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Considering Bonds? What to Know Before You Buy

Bonds can be intimidating. While many investors regard them as a necessary component of a balanced portfolio, that doesn't mean they have a good understanding of how they work. When U.S. bonds struggled to their worst performance ever in 2022, investors naturally were spooked. But in 2024 bonds offer attractive yields and can present opportunities to investors. In this episode, Mike is joined by Cooper Howard and Collin Martin, two fixed income strategists from the Schwab Center for Financial Research, to help investors gain a better understanding of the special language of bonds, the pros and cons of investing in bond funds versus individual bonds, and the important role of the Fed and the Treasury Department in the bond market. They also share perspective on what investors can expect from the bond market in 2024.Mike also checks in on what's happening in Washington, including the turmoil in Congress that is preventing any forward progress on multiple issues, how that paralysis could lead to a government shutdown in early March, the recent flip of a House seat, and ongoing resignations that will change the face of Congress.WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts.Important DisclosuresInvestors should consider carefully information contained in the prospectus, or if available, the summary prospectus, including investment objectives, risks, charges, and expenses. You can request a prospectus by calling 800-435-4000. Please read the prospectus carefully before investing.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed. Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve. Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks, including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications, and other factors. Lower rated securities are subject to greater credit risk, default risk, and liquidity risk.Diversification and asset allocation strategies do not ensure a profit and cannot protect against losses in a declining market.International investments involve additional risks, which include differences in financial accounting standards, currency fluctuations, geopolitical risk, foreign taxes and regulations, and the potential for illiquid markets. Investing in emerging markets may accentuate these risks.Tax‐exempt bonds are not necessarily a suitable investment for all persons. Information related to a security's tax‐exempt status (federal and in‐state) is obtained from third parties, and Schwab does not guarantee its accuracy. Tax‐exempt income may be subject to the Alternative Minimum Tax (AMT). Capital appreciation from bond funds and discounted bonds may be subject to state or local taxes. Capital gains are not exempt from federal income tax.The information and content provided herein is general in nature and is for informational purposes only. It is not intended, and should not be construed, as a specific recommendation, individualized tax, legal, or investment advice. Tax laws are subject to change, either prospectively or retroactively. Where specific advice is necessary or appropriate, individuals should contact their own professional tax and investment advisors or other professionals (CPA, Financial Planner, Investment Manager) to help answer questions about specific situations or needs prior to taking any action based upon this information.Mortgage-backed securities (MBS) may be more sensitive to interest rate changes than other fixed income investments. They are subject to extension risk, where borrowers extend the duration of their mortgages as interest rates rise, and prepayment risk, where borrowers pay off their mortgages earlier as interest rates fall. These risks may reduce returns.Neither the tax-loss harvesting strategy, nor any discussion herein, is intended as tax advice and does not represent that any particular tax consequences will be obtained. Tax-loss harvesting involves certain risks including unintended tax implications. Investors should consult with their tax advisors and refer to the Internal Revenue Service (IRS) website at www.irs.gov about the consequences of tax-loss harvesting.Past performance is no guarantee of future results, and the opinions presented cannot be viewed as an indicator of future performance.(0224-LTFR)
2/22/202441 minutes, 4 seconds
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Geopolitical Risk: Is the Bark Worse than the Bite?

From China's economic woes and tensions with Taiwan, to escalating fighting in the Middle East and the disruption of shipping routes, to central banks keeping interest rates high, there is no shortage of anxiety about geopolitical risks. On today's episode, host Mike Townsend is joined by Jeffrey Kleintop, Schwab's chief global investment strategist, to look beyond the worrisome headlines to see how economies around the globe are doing and what's driving their markets. Jeff shares his perspectives on China's slowdown, the implications of Taiwan's recent election on U.S.-China relations, and the ongoing conflict in the Middle East, including how attacks on container ships in the Red Sea are impacting the global supply chain. He also discusses the messages being sent by central banks around the world, why Japan may offer investors an alternative to areas of geopolitical risks, and why investors need to keep an eye on international opportunities despite the headlines.Mike also looks at a rare bipartisan tax bill that has cleared the House, the politics surrounding the Senate's border security package, and the Federal Reserve's hints about when it may pivot to cutting interest rates.WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple PodcastsImportant DisclosuresThe policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. All expressions of opinion are subject to changes without notice in reaction to shifting market, economic, and geopolitical conditions. Data herein is obtained from what are considered reliable sources; however, its accuracy, completeness, or reliability cannot be guaranteed. Supporting documentation for any claims or statistical information is available upon request.Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.Investing involves risk, including loss of principal.International investments involve additional risks, which include differences in financial accounting standards, currency fluctuations, geopolitical risk, foreign taxes and regulations, and the potential for illiquid markets. Investing in emerging markets may accentuate these risks. ​Commodity-related products carry a high level of risk and are not suitable for all investors. Commodity-related products may be extremely volatile, may be illiquid, and can be significantly affected by underlying commodity prices, world events, import controls, worldwide competition, government regulations, and economic conditions.Diversification strategies do not ensure a profit and do not protect against losses in declining markets.All names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Supporting documentation for any claims or statistical information is available upon request.​This information is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, you should consult with a qualified tax advisor, CPA, Financial Planner, or Investment Manager.Forecasts contained herein are for illustrative purposes only, may be based upon proprietary research and are developed through analysis of historical public data.Performance may be affected by risks associated with non-diversification, including investments in specific countries or sectors. Additional risks may also include, but are not limited to, investments in foreign securities, especially emerging markets, real estate investment trusts (REITs), fixed income, small capitalization securities and commodities. Each individual investor should consider these risks carefully before investing in a particular security or strategy.Indexes are unmanaged, do not incur management fees, costs, and expenses and cannot be invested in directly. For more information on indexes, please seeSchwab.com/IndexDefinitions.(0224-J5J1)
2/8/202428 minutes, 56 seconds
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Markets Notch Record Rally: Is It Sustainable?

With the S&P 500® and Dow Jones Industrial Average hitting record highs recently, the bear market is officially over. But is this momentum sustainable? Schwab Senior Investment Strategist Kevin Gordon joins host Mike Townsend to dig into the latest economic data and discuss some potentially worrisome signals as well as signs of improvement. They also preview the upcoming Fed meeting and the outlook for rate cuts in 2024, discuss how rolling recessions are starting to become rolling recoveries, and remind investors why they should not let this year’s presidential election become an investing distraction. And Mike provides an update on the latest from Washington, where lawmakers again barely averted a government shutdown, there is surprising bipartisan support for a tax bill, and the SEC reluctantly approved the first Bitcoin exchange-traded funds.WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts Important DisclosuresThe policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. All expressions of opinion are subject to changes without notice in reaction to shifting market, economic, and geopolitical conditions.  Data herein is obtained from what are considered reliable sources; however, its accuracy, completeness, or reliability cannot be guaranteed. Supporting documentation for any claims or statistical information is available upon request.Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.Investing involves risk, including loss of principal.Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. Lower rated securities are subject to greater credit risk, default risk, and liquidity riskLower rated securities are subject to greater credit risk, default risk, and liquidity risk.Small cap investments are subject to greater volatility than those in other asset categories.​Commodity-related products carry a high level of risk and are not suitable for all investors. Commodity-related products may be extremely volatile, may be illiquid, and can be significantly affected by underlying commodity prices, world events, import controls, worldwide competition, government regulations, and economic conditions.Diversification strategies do not ensure a profit and do not protect against losses in declining markets.All names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Supporting documentation for any claims or statistical information is available upon request.This information is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, you should consult with a qualified tax advisor, CPA, Financial Planner, or Investment Manager.​Rebalancing does not protect against losses or guarantee that an investor’s goal will be met. Rebalancing may cause investors to incur transaction costs and, when a non-retirement account is rebalanced, taxable events may be created that may affect your tax liability.Forecasts contained herein are for illustrative purposes only, may be based upon proprietary research and are developed through analysis of historical public data.Digital currencies [such as bitcoin] are highly volatile and not backed by any central bank or government. Digital currencies lack many of the regulations and consumer protections that legal-tender currencies and regulated securities have. Due to the high level of risk, investors should view digital currencies as a purely speculative instrument.Performance may be affected by risks associated with non-diversification, including investments in specific countries or sectors. Additional risks may also include, but are not limited to, investments in foreign securities, especially emerging markets, real estate investment trusts (REITs), fixed income, small capitalization securities and commodities. Each individual investor should consider these risks carefully before investing in a particular security or strategy.Indexes are unmanaged, do not incur management fees, costs, and expenses and cannot be invested in directly. For more information on indexes, please seeSchwab.com/IndexDefinitions.Apple, the Apple logo, iPad, iPhone, and Apple Podcasts are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.Google Podcasts and the Google Podcasts logo are trademarks of Google LLC.Spotify and the Spotify logo are registered trademarks of Spotify AB.​ 0124-FF5J
1/25/202431 minutes, 52 seconds
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How to Navigate the 2024 Markets Like the Pros

For investors, 2024 has more than its share of unknowns, including what steps the Fed and other central banks will take, the direction of ongoing wars in Ukraine and the Middle East, and how elections both in the U.S. and more than 60 countries around the world will play out. These unpredictable factors can lead to volatility in the markets and anxiety for investors, which can contribute to poor decisions. One way for investors to navigate a challenging environment is to understand how fund managers make decisions when facing uncertainty. On today’s episode, host Mike Townsend talks with Omar Aguilar, CEO and chief investment officer at Schwab Asset Management, about how fund managers keep their emotions in check when volatility increases. They discuss how to diversify when it feels like every investor is invested in the same small number of companies, what to watch for in the first quarter earnings season, and whether now is the time to put some cash that has been earning decent returns back into the market. They also talk about how staying invested, staying diversified, and staying disciplined are critical to reaching your investing goals during times of market stress.Mike also provides updates from Washington on the latest talks to avert a looming government shutdown and the president’s request for emergency aid for Ukraine, Israel, and other global priorities.WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple PodcastsImportant DisclosuresThe policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. All expressions of opinion are subject to changes without notice in reaction to shifting market, economic, and geopolitical conditions.  Data herein is obtained from what are considered reliable sources; however, its accuracy, completeness, or reliability cannot be guaranteed. Supporting documentation for any claims or statistical information is available upon request.Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.Investing involves risk, including loss of principal.Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. Lower rated securities are subject to greater credit risk, default risk, and liquidity riskLower rated securities are subject to greater credit risk, default risk, and liquidity risk.Small cap investments are subject to greater volatility than those in other asset categories.​Commodity-related products carry a high level of risk and are not suitable for all investors. Commodity-related products may be extremely volatile, may be illiquid, and can be significantly affected by underlying commodity prices, world events, import controls, worldwide competition, government regulations, and economic conditions.Diversification and asset allocation strategies do not ensure a profit and do not protect against losses in declining markets.Investing involves risk, including loss of principal.All names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Supporting documentation for any claims or statistical information is available upon request.This information is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, you should consult with a qualified tax advisor, CPA, Financial Planner, or Investment Manager.Rebalancing does not protect against losses or guarantee that an investor’s goal will be met. Rebalancing may cause investors to incur transaction costs and, when a non-retirement account is rebalanced, taxable events may be created that may affect your tax liability.Forecasts contained herein are for illustrative purposes only, may be based upon proprietary research and are developed through analysis of historical public data.Performance may be affected by risks associated with non-diversification, including investments in specific countries or sectors. Additional risks may also include, but are not limited to, investments in foreign securities, especially emerging markets, real estate investment trusts (REITs), fixed income, small capitalization securities and commodities. Each individual investor should consider these risks carefully before investing in a particular security or strategy.Indexes are unmanaged, do not incur management fees, costs, and expenses and cannot be invested in directly. For more information on indexes, please see Schwab.com/IndexDefinitions.Apple, the Apple logo, iPad, iPhone, and Apple Podcasts are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.Google Podcasts and the Google Podcasts logo are trademarks of Google LLC. Spotify and the Spotify logo are registered trademarks of Spotify AB.(0124-4D1K)
1/11/202437 minutes, 56 seconds
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Shape Up Your Financial Plan for 2024

With 2023 winding down, it’s important for investors to take stock of their financial plan, consider strategies to minimize taxes, and begin looking for opportunities in 2024. Host Mike Townsend is joined by Daniel Stein, who manages two Schwab branches in Virginia, to discuss what investors are most concerned about right now, some key end-of-year planning strategies for investors to consider, and how to think about some of the uncertainties facing the markets next year. Dan provides practical suggestions on minimizing taxes by using tax-loss harvesting and other techniques; the importance of creating an estate plan or revisiting the one you have to help ensure it still fits your evolving circumstances, along with some specific strategies for estate planning; and taking a longer-term view on fixed income investing. He also discusses Schwab’s 2024 market outlook.  Mike also provides updates on the latest news out of Washington, including the negotiations over a major aid package for Ukraine and Israel, next week’s Fed meeting, and a decision by the IRS to delay a controversial new tax reporting requirement for payment apps and e-commerce platforms.WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple PodcastsImportant DisclosuresThe policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. All expressions of opinion are subject to changes without notice in reaction to shifting market, economic, and geopolitical conditions.  Data herein is obtained from what are considered reliable sources; however, its accuracy, completeness, or reliability cannot be guaranteed. Supporting documentation for any claims or statistical information is available upon request.Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. Lower rated securities are subject to greater credit risk, default risk, and liquidity riskLower rated securities are subject to greater credit risk, default risk, and liquidity risk.A bond ladder, depending on the types and amount of securities within the ladder, may not ensure adequate diversification of your investment portfolio. This potential lack of diversification may result in heightened volatility of the value of your portfolio.  As compared to other fixed income products and strategies, engaging in a bond ladder strategy may potentially result in future reinvestment at lower interest rates and may necessitate higher minimum investments to maintain cost-effectiveness. Evaluate whether a bond ladder and the securities held within it are consistent with your investment objective, risk tolerance and financial circumstances.Diversification and asset allocation strategies do not ensure a profit and do not protect against losses in declining markets.Investing involves risk, including loss of principal.All names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Supporting documentation for any claims or statistical information is available upon request.This information is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, you should consult with a qualified tax advisor, CPA, Financial Planner, or Investment Manager.Neither the tax-loss harvesting strategy, nor any discussion herein, is intended as tax advice and does not represent that any particular tax consequences will be obtained. Tax-loss harvesting involves certain risks including unintended tax implications. Investors should consult with their tax advisors and refer to the Internal Revenue Service (IRS) website at www.irs.gov about the consequences of tax-loss harvesting.Roth IRA conversions require a 5-year holding period before earnings can be withdrawn tax free and subsequent conversions will require their own 5-year holding period. In addition, earnings distributions prior to age 59 1/2 are subject to an early withdrawal penalty.Forecasts contained herein are for illustrative purposes only, may be based upon proprietary research and are developed through analysis of historical public data.Investors should consider, before investing, whether the investor's or designated beneficiary's home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available in such state's qualified tuition program.Indexes are unmanaged, do not incur management fees, costs, and expenses and cannot be invested in directly. For more information on indexes, please seeSchwab.com/IndexDefinitions.Apple, the Apple logo, iPad, iPhone, and Apple Podcasts are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.(1223-3MFL)
12/7/202335 minutes, 25 seconds
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Financial Fraud: Savvy Investors Aren’t Immune

In today’s globally interconnected financial world, fraud and scams are all too common, and anyone can become a victim. On this episode of WashingtonWise, host Mike Townsend talks with DJ Johnson, head of Financial Crimes Risk Management at Charles Schwab, about the ever-evolving fraud landscape and how you can protect yourself. They discuss the scope of the problem, the most frequently used ploys, and how fraudsters are using the latest technology, including artificial intelligence, to dupe even savvy investors. They also talk about what Schwab does to protect its clients from fraud and offer practical steps every investor should take to protect themselves and their finances.Mike also reports on the latest efforts to avert a government shutdown in Washington, offers an update on the state of the 2024 election one year out, and provides his perspective on this week’s meeting between President Biden and President Xi Jinping of China.WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple PodcastsImportant DisclosuresThe policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed. Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.All corporate names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Supporting documentation for any claims or statistical information is available upon request. Investing involves risk, including loss of principal.Digital currencies [such as bitcoin] are highly volatile and not backed by any central bank or government. Digital currencies lack many of the regulations and consumer protections that legal-tender currencies and regulated securities have. Due to the high level of risk, investors should view digital currencies as a purely speculative instrument. Apple, the Apple logo, iPad, iPhone, and Apple Podcasts are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.Google Podcasts and the Google Podcasts logo are trademarks of Google LLC.Spotify and the Spotify logo are registered trademarks of Spotify AB.(1123-36TC)
11/16/202328 minutes, 54 seconds
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(BONUS) From On Investing: The View from Washington D.C.

In this episode of On Investing, hosts Liz Ann Sonders and Kathy Jones welcome Mike Townsend to the show. Mike is Schwab's managing director of legislative and regulatory affairs in Washington D.C. He is also the host of Schwab's WashingtonWise podcast, which explores the intersection between policy, politics, the markets, and the economy. He shares his thoughts on the 2024 election cycle, the likelihood of a government shutdown, and the state of the federal budget deficit and government debt.Kathy and Liz Ann also give an update on what they are keeping an eye on next week in the markets.Liz Ann Sonders is Schwab's chief investment strategist. She's regularly quoted in financial publications including The Wall Street Journal, The New York Times, Barron's,and the Financial Times.She also appears as a regular guest on CNBC, Bloomberg, CNN, Yahoo! Finance, and Fox Business News. Liz Ann has been named "Best Market Strategist" by Kiplinger'sPersonal Finance and one of SmartMoney magazine's "Power 30." Barron's has named her to its "100 Most Influential Women in Finance" list, and Investment Advisor has included her on the "IA 25," its list of the 25 most important people in and around the financial advisory profession.Kathy is Schwab's chief fixed income strategist. She is a regular guest on CNBC, Yahoo Finance, Bloomberg TV, and many other networks and is often quoted by The Wall Street Journal, The New York Times, Financial Times, and Reuters. Kathy has been an analyst of global credit markets throughout her career, working with both institutional and retail clients.On Investing is an original podcast from Charles Schwab. For more on the show, visit schwab.com/OnInvesting.If you enjoy the show, please leave a rating or review on Apple Podcasts.Important DisclosuresThe comments, views, and opinions expressed in the presentation are those of the speakers and do not necessarily represent the views of Charles Schwab.​Data contained herein from third party providers is obtained from what are considered reliable source. However, its accuracy, completeness or reliability cannot be guaranteed and Charles Schwab & Co. expressly disclaims any liability, including incidental or consequential damages, arising from errors or omissions in this publication.Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.All corporate names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Supporting documentation for any claims or statistical information is available upon request. Investing involves risk including loss of principal.​Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications, and other factors. Lower rated securities are subject to greater credit risk, default risk, and liquidity risk.Small cap investments are subject to greater volatility than those in other asset categories. ​ The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.Apple, the Apple logo, iPad, iPhone, and Apple Podcasts are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.Google Podcasts and the Google Podcasts logo are trademarks of Google LLC.Spotify and the Spotify logo are registered trademarks of Spotify AB.(1123-3FA8)
11/10/202327 minutes, 52 seconds
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Hurdles Mounting for Deeply Divided House

Huge challenges are looming as Capitol Hill inches its way back towards normal after the unprecedented ouster of the speaker of the House and a three-week search for his successor. On this episode of WashingtonWise, host Mike Townsend dives into how the recent chaos in the House and the emergence of a relative unknown may impact key policy issues. Mike offers his insight on the ever-present concern over a government shutdown, lawmakers' response to the president’s request for an emergency spending package to aid Israel and Ukraine, and how higher interest rates are fueling difficult decisions on the federal deficit. He also looks into the new White House executive order on artificial intelligence as well as the Federal Reserve’s decision to hold the interest rate steady. WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts. Important DisclosuresThe policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.​The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. All expressions of opinion are subject to changes without notice in reaction to shifting market, economic, and geopolitical conditions.  Data herein is obtained from what are considered reliable sources; however, its accuracy, completeness, or reliability cannot be guaranteed. Supporting documentation for any claims or statistical information is available upon request.Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.Investing involves risk, including loss of principal.Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. Lower rated securities are subject to greater credit risk, default risk, and liquidity risk.Diversification strategies do not ensure a profit and do not protect against losses in declining markets.All corporate names are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.All names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Supporting documentation for any claims or statistical information is available upon request.Forecasts contained herein are for illustrative purposes only, may be based upon proprietary research and are developed through analysis of historical public data.​Indexes are unmanaged, do not incur management fees, costs, and expenses and cannot be invested in directly. For more information on indexes, please see Schwab.com/IndexDefinitions.Apple, the Apple logo, iPad, iPhone, and Apple Podcasts are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.Google Podcasts and the Google Podcasts logo are trademarks of Google LLC.Spotify and the Spotify logo are registered trademarks of Spotify AB.​​Apple, the Apple logo, iPad, iPhone, and Apple Podcasts are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.(1123-3P8Z)
11/2/202321 minutes, 45 seconds
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Global Events Spark Fears, Clouding Big Picture

The recent attacks in Israel are a reminder that geopolitical events can happen at any time, but when it comes to global investing, it’s often the big picture that tells the real story. Jeff Kleintop, Schwab’s chief global investment strategist, joins Mike Townsend to assess the ever-present nature of geopolitical risks that can have far-reaching impact in today’s interconnected economy.Mike and Jeff also dive into the headline issues that are affecting China’s economy, including the troubles with its largest property developers, and explore the renewed efforts in Washington to improve U.S.-China relations. They also discuss whether Europe is turning the corner and why Japan is seeing its best stock market performance in decades. They zoom out to see beyond the short term and look at where opportunities for investors may be emerging. Mike also addresses the latest news from Washington, where chaos in the House of Representatives is increasing worries about a government shutdown in November and imperiling the broader policy agenda.WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts.  Important DisclosuresThe policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed. Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.International investments involve additional risks, which include differences in financial accounting standards, currency fluctuations, geopolitical risk, foreign taxes and regulations, and the potential for illiquid markets.Investing in emerging markets may accentuate these risks.​Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications, and other factors.Lower rated securities are subject to greater credit risk, default risk, and liquidity risk.Commodity-related products carry a high level of risk and are not suitable for all investors. Commodity-related products may be extremely volatile, illiquid and can be significantly affected by underlying commodity prices, world events, import controls, worldwide competition, government regulations, and economic conditions.All corporate names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Supporting documentation for any claims or statistical information is available upon request.Past performance is no guarantee of future results.Indexes are unmanaged, do not incur management fees, costs and expenses, and cannot be invested in directly. For additional information, please see schwab.com/indexdefinitions.Investing involves risk, including loss of principal.Currency trading is speculative, volatile and not suitable for all investors.Diversification strategies do not ensure a profit and do not protect against losses in declining markets.The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.​​Apple, the Apple logo, iPad, iPhone, and Apple Podcasts are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.(1023-32DA)
10/12/202341 minutes, 32 seconds
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Bonds Shine with Fed's "Higher for Longer" Call

As the Federal Reserve continues to send the message that interest rates will stay elevated well into 2024, bond yields are the highest they have been in more than 15 years. In this episode, host Mike Townsend welcomes Kathy Jones, chief fixed income strategist at the Schwab Center for Financial Research, to get her perspective on how bond investors can take advantage of what some are calling a once-in-a-generation opportunity. They discuss individual bonds vs. bond funds, corporate bonds, municipal bonds, and Treasury Inflation-Protected Securities (TIPS). Kathy offers her perspective on the latest Fed action and how the Fed may react if a government shutdown curtails its access to key economic data in the coming weeks. She also offers her considerations for how to make bonds part of a well-diversified portfolio, whether you are a long-time fixed income investor or a newcomer to the world of bond investing. In addition, Mike provides the latest on the scramble on Capitol Hill to avert a government shutdown and looks at some of the implications of a shutdown for investors. He also takes a look at a new SEC rule that seeks to help investors understand what they are getting by requiring mutual fund and exchange-traded fund names better align with their goals and strategies.WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts.  Important DisclosuresInvestors should consider carefully information contained in the prospectus or, if available, the summary prospectus, including investment objectives, risks, charges, and expenses. You can request a prospectus by calling Schwab at 1-800-435-4000. Please read it carefully before investing.The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed.Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors.Lower rated securities are subject to greater credit risk, default risk, and liquidity risk.​​Indexes are unmanaged, do not incur management fees, costs, and expenses and cannot be invested in directly. For more information on indexes please see schwab.com/indexdefinitionsPast performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.Investing involves risks including loss of principal.Diversification and asset allocation strategies do not ensure a profit and do not protect against losses in declining markets.Tax-exempt bonds are not necessarily a suitable investment for all persons. Information related to a security's tax-exempt status (federal and in-state) is obtained from third-parties and Schwab does not guarantee its accuracy. Tax-exempt income may be subject to the Alternative Minimum Tax (AMT). Capital appreciation from bond funds and discounted bonds may be subject to state or local taxes. Capital gains are not exempt from federal income tax.Lower-rated securities are subject to greater credit risk, default risk, and liquidity risk.Treasury Inflation Protected Securities (TIPS) are inflation linked securities issued by the US Government whose principal value is adjusted periodically in accordance with the rise and fall in the inflation rate. Thus, the dividend amount payable is also impacted by variations in the inflation rate, as it is based upon the principal value of the bond. It may fluctuate up or down. Repayment at maturity is guaranteed by the US Government and may be adjusted for inflation to become the greater of theoriginal face amount at issuance or that face amount plus an adjustment for inflation.The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.​Apple, the Apple logo, iPad, iPhone, and Apple Podcasts are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.(0923-3ATN)
9/28/202324 minutes, 19 seconds
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Unscrambling the Economy’s Mixed Messages

Lately the data on the economy and the markets has been all over the place, making it hard for investors to get a good read on where things are headed. Some indexes are way up, while others are only up a few percent. Inflation has come way down but remains sticky—and the Fed is contemplating raising rates again. Consumers are spending a lot of money on travel and services, but retailers are starting to feel the pinch as spending patterns have changed. So how do investors make sense of all the data? Kevin Gordon, senior investment strategist with the Schwab Center for Financial Research, joins Mike Townsend to dig into what’s behind the data, why key data points often need to be revised, and how investors can best interpret the information. They also share insights on the recession-versus-soft-landing debate, whether markets care about government shutdowns, and what to look for from the markets in Q4.Mike also provides updates on Congress careening toward a possible government shutdown later this fall, the confirmation of a trio of Federal Reserve Board nominees, and a recent IRS ruling that provides clarity on two key retirement savings initiatives.WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts. Important DisclosuresThe policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed. Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.Indexes are unmanaged, do not incur management fees, costs and expenses, and cannot be invested in directly.​Past performance is no guarantee of future results.​This information provided here is for general informational purposes only, and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, you should consult with a qualified tax advisor, CPA, Financial Planner, or Investment Manager.All corporate names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Supporting documentation for any claims or statistical information is available upon request.Diversification and asset allocation strategies do not ensure a profit and cannot protect against losses in a declining market.Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications, and other factors.Lower rated securities are subject to greater credit risk, default risk, and liquidity risk.Small cap investments are subject to greater volatility than those in other asset categories.The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.​Apple, the Apple logo, iPad, iPhone, and Apple Podcasts are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.Google Podcasts and the Google Podcasts logo are trademarks of Google LLC.Spotify and the Spotify logo are registered trademarks of Spotify AB.0923-32FL
9/14/202331 minutes, 8 seconds
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Artificial Intelligence: Investing Considerations

When it comes to transformational technology, artificial intelligence is expected to rival the internet in its impact. For many investors, there is a fear of missing out—but there are also challenges sorting through all the companies making claims about their AI capabilities. Randy Frederick, managing director for trading and derivatives at the Schwab Center for Financial Research, joins host Mike Townsend to discuss the disruptive nature of AI, where the technology is headed, and what investors need to look for in companies touting their AI credentials. They also look at the risks involved in AI investing and whether lessons learned from the dot-com bubble in the late 1990s can be applied to the AI buzz today.Mike also provides updates on the Fed's latest interest rate hike and the likelihood of one more hike before year end. And he lays out the serious time crunch Congress is facing to pass the 12 appropriations bills that fund every federal agency and program for the next fiscal year before the October 1 government shutdown deadline. He also reports on how the hoped-for bipartisanship on regulating cryptocurrency is fading on Capitol Hill.WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts. Important DisclosuresThe policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed. Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.Indexes are unmanaged, do not incur management fees, costs and expenses, and cannot be invested in directly.Past performance is no guarantee of future results.All corporate names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Supporting documentation for any claims or statistical information is available upon request.Digital currencies, such as bitcoin, are highly volatile and not backed by any central bank or government. Digital currencies lack many of the regulations and consumer protections that legal-tender currencies and regulated securities have. Due to the high level of risk, investors should view Bitcoin as a purely speculative instrument.Diversification and asset allocation strategies do not ensure a profit and do not protect against losses in declining markets.Schwab Equity Ratings and the general buy/hold/sell guidance are not personal recommendations for any particular investor or client and do not take into account the financial, investment or other objectives or needs of, and may not be suitable for, any particular investor or client. Investors and clients should consider Schwab Equity Ratings as only a single factor in making their investment decision while taking into account the current market environment.0723-39NP
7/27/202323 minutes, 15 seconds
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Artificial Intelligence: The Power and the Perils

Artificial Intelligence is quite the buzzword these days. Practically overnight it seems to have grown from something with specific uses that is employed by big companies behind the scenes to a household term impacting everything from our entertainment to our politics. While hundreds of millions of users around the world are enjoying ChatGPT and similar chatbots, serious concerns are being raised about how it can be used to defraud us, take our jobs, or even end humanity. Bashar Abouseido, Schwab’s chief information security officer, joins Mike Townsend to discuss what AI is, how it is currently being used and the emerging real world applications that will enhance productivity, customer service and the quality of information. They also explore some of the concerns for misuse and abuse, the need for government regulations to put some guardrails around this emerging technology and the importance of international cooperation.Mike also discusses three big issues facing Congress right now: the government funding battle that could be on a path to a government shutdown this fall; the fight over environmental, social, and governmental investing (ESG); and the impending confirmation of three nominees to the Federal Reserve Board of Governors.WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts. Important DisclosuresThe policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed.Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.All corporate names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Supporting documentation for any claims or statistical information is available upon request.Because environmental, social and governance (ESG) strategies exclude some securities, ESG-focused products may not be able to take advantage of the same opportunities or market trends as products that do not use such strategies. Additionally, the criteria used to select companies for investment may result in investing in securities, industries or sectors that underperform the market as a whole.Digital currencies, such as bitcoin, are highly volatile and not backed by any central bank or government. Digital currencies lack many of the regulations and consumer protections that legal-tender currencies and regulated securities have. Due to the high level of risk, investors should view Bitcoin as a purely speculative instrument.0723-3408
7/13/202331 minutes, 47 seconds
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Boring Can Be Beautiful: The Case for Bonds

Bonds' role in a portfolio is to provide income and diversification. But in 2022, they had the worst returns in decades and also failed to provide the ballast they typically would when equity markets are down. Now the Fed's rapid rate hikes have changed the equation, and investors are giving bonds another look. Collin Martin, director of fixed income strategy at the Schwab Center for Financial Research, joins Mike Townsend to consider what the Fed may do next after it chose to pause rate hikes and what the implications could be for investors, borrowers, corporations, and the economy in general. They also discuss how to choose bonds that may be right for you—and which ones to avoid.Mike offers insight on the hurdles and deadlines Congress faces in order to pass the 12 appropriation bills to keep the government open and operating. He shares an update on the nominees to fill open positions at the Fed and looks at the bipartisan efforts in Congress to toughen banking regulations, including legislation to increase penalties on executives at failed banks.WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts. Important DisclosuresThe policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed.Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. Lower rated securities are subject to greater credit risk, default risk, and liquidity risk.An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although a money market fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a money market fund.Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly. For more information on indexes please see www.schwab.com/indexdefinitions. Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.Tax-exempt bonds are not necessarily a suitable investment for all persons. Information related to a security's tax-exempt status (federal and in-state) is obtained from third-parties and Schwab does not guarantee its accuracy. Tax-exempt income may be subject to the Alternative Minimum Tax (AMT). Capital appreciation from bond funds and discounted bonds may be subject to state or local taxes. Capital gains are not exempt from federal income tax.(0623-3SXW)
6/29/202330 minutes, 20 seconds
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Debt Ceiling Hurdle Cleared: Now What for Markets?

While markets are calm after the debt ceiling resolution, disruptors persist. Liz Ann Sonders, Kathy Jones, and Jeff Kleintop join host Mike Townsend to discuss some of the key issues that could roil the markets throughout the second half of 2023. Liz Ann, Schwab’s chief investment strategist, discusses how the debt ceiling deal is good for the markets in the near term, but rising debt poses worries in the future. She also shares her thoughts on whether the market’s upward trajectory is sustainable. Then Kathy, Schwab’s chief fixed income strategist, offers her perspective on the bond market, concerns at the credit rating agencies about the U.S. debt load, and the Fed’s decision this week to pause its 16-month run of interest rate hikes. Finally, Jeff, Schwab’s chief global investment strategist, discusses the implications for international investors of Europe’s debt issues and the European recession, plus how the ongoing U.S.-China tensions could affect emerging-market investors. And Mike breaks down the final debt ceiling bill to focus on what it does and does not accomplish and the work left for Washington to address.WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts. Important DisclosuresThe policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.Investing involves risk, including loss of principal.Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. Lower rated securities are subject to greater credit risk, default risk, and liquidity risk.Money market funds are neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.International investments involve additional risks, which include differences in financial accounting standards, currency fluctuations, geopolitical risk, foreign taxes and regulations, and the potential for illiquid markets. Investing in emerging markets may accentuate these risks.Forecasts contained herein are for illustrative purposes only, may be based upon proprietary research and are developed through analysis of historical public data.The National Bureau of Economic Research (NBER) is an American private non profit research organization "committed to undertaking and disseminating unbiased economic research among public policymakers, business professionals, and the academic community." The NBER is known for providing start and end dates for recessions in the United States.Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly. For more information on indexes please see www.schwab.com/indexdefinitions. (0623-3PUP)
6/15/202336 minutes, 5 seconds
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Washington Policy Fights Pressuring Markets

Investors are growing increasingly concerned as Washington policy battles are stirring up the markets. In this episode, host Mike Townsend responds to some of the key questions that investors are asking. He takes a deep dive into the latest on the debt ceiling drama, including the uncertainty around the timing of a potential default, the contours of a possible deal, and whether there are alternatives that could be used to avoid default if negotiations on Capitol Hill collapse. He also looks at whether a default would accelerate a move away from the dollar as the world's reserve currency. And he provides perspective on other key debates in Washington and how they could affect the markets, including new policies in the wake of three large bank failures, the Fed's exploration of a central bank digital currency, and whether efforts by policymakers to discourage stock buybacks are working.WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts. Important DisclosuresThe policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.Investing involves risk, including loss of principal.Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. Lower rated securities are subject to greater credit risk, default risk, and liquidity risk.Currencies are speculative, very volatile and are not suitable for all investors.Diversification strategies do not ensure a profit and do not protect against losses in declining markets.All corporate names are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.Apple Podcasts and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries.0523-35VB
5/18/202323 minutes, 4 seconds
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Fighting Fear and Uncertainty in Markets

Kevin Gordon, senior investment strategist with the Schwab Center for Financial Research, joins host Mike Townsend to discuss how investors can navigate the uncertainties brought on by a flurry of developments in Washington that are impacting the markets, including the debt ceiling standoff, the Fed’s latest rate hike, and regulators scrambling to respond to another bank failure. Kevin provides some lessons investors can take from the 2011 debt ceiling drama and discusses the implications for the markets and the economy if the U.S. should default. He also offers his perspective on the latest Fed action, what the banking turmoil could mean for the broader markets, and the likelihood of a recession and explains why investors who wait for a recession to be announced could miss out on significant investing opportunities.Mike provides updates on the House-passed debt ceiling bill and how Treasury Secretary Janet Yellen’s surprise announcement that the U.S. could default as soon as June 1 is changing the debate in Washington. And he offers three takeaways from a series of reports from the regulatory agencies about the recent bank failures.WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts. Important DisclosuresAll expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. Supporting documentation for any claims or statistical information is available upon request.Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.All corporate names are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly. For more information on indexes please see www.schwab.com/indexdefinitions.Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.Investing involves risk, including loss of principal. Diversification and asset allocation strategies do not ensure a profit and do not protect against losses in declining markets.This information does not constitute and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor, CPA, financial planner, or investment manager.Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. Lower rated securities are subject to greater credit risk, default risk, and liquidity risk.Small cap funds are subject to greater volatility than those in other asset categories.Currencies are speculative, veryPerformance may be affected by risks associated with non-diversification, including investments in specific countries or sectors. Additional risks may also include, but are not limited to, investments in foreign securities, especially emerging markets, real estate investment trusts (REITs), fixed income, small capitalization securities and commodities. Each individual investor should consider these risks carefully before investing in a particular security or strategy.Apple Podcasts and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries.0523-3MSM
5/4/202331 minutes, 19 seconds
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Big Tax Changes for 2023: Start Planning Now

With the 2022 tax-filing season in the rear-view mirror, it’s time to focus on the 2023 tax environment and the changes that could make a big difference to your return. Nancy Murphy, a senior wealth strategist at Charles Schwab with a focus on estate-planning, joins host Mike Townsend to discuss how higher inflation has had a big impact on individual tax brackets, the estate tax, retirement savings contribution limits, and more. Nancy walks through some key opportunities and decision points for investors, including whether the time is right to make a Roth conversion, how to handle new rules for inherited IRAs, how to plan amid the uncertainty as several major tax provisions are set to expire at the end of 2025, and the difference waiting to take Social Security can make. Mike also provides updates from Washington on the latest twists and turns in the debt ceiling drama and highlights key takeaways from SEC Chair Gary Gensler’s recent contentious testimony before House committee.WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts.  Important DisclosuresThe policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed. Supporting documentation for any claims or statistical information is available upon request.Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.This information does not constitute and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor, CPA, financial planner, or investment manager.Investing involves risk, including loss of principal.Roth IRA conversions require a 5-year holding period before earnings can be withdrawn tax free and subsequent conversions will require their own 5-year holding period. In addition, earnings distributions prior to age 59 1/2 are subject to an early withdrawal penalty.Digital currencies, such as bitcoin, are highly volatile and not backed by any central bank or government. Digital currencies lack many of the regulations and consumer protections that legal-tender currencies and regulated securities have. Due to the high level of risk, investors should view Bitcoin as a purely speculative instrument.All corporate names are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.Apple Podcasts and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries.(0423-3D26)
4/20/202334 minutes, 52 seconds
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Volatile Bond Market Signaling Changes to Economy

The traditionally sleepy bond market has been acting weird lately, with unusual volatility that is sending signals about the broader markets and the economy. Collin Martin, director and fixed income strategist at the Schwab Center for Financial Research, joins host Mike Townsend to discuss how to assess what’s going on in the bond market and its implications for all investors. He discusses changes in the yield curve, what to expect from the Fed on interest rates, the impact the fight over the debt ceiling may have on the bond market, and how changes in interest rates are hurting cash-strapped companies. Collin also shares his thoughts on risks to bond investing, where the opportunities might be and how investors can make smart choices. In addition, Mike looks at four key takeaways from last week’s Congressional hearings on the recent bank failures, including bipartisan support for new regulations on mid-size banks, possible increases to FDIC insurance levels, and tougher punishments for mismanagement by bank executives. He also provides an update on some movement in the standoff in Washington over raising the debt ceiling.WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts. Important DisclosuresThe policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.Investing involves risk, including loss of principal. Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. Lower rated securities are subject to greater credit risk, default risk, and liquidity risk.(0423-3EVB) 
4/6/202333 minutes, 18 seconds
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Battling Competing Problems, Fed Keeps Hike Small

In its ongoing efforts to cool the economy and bring down sticky inflation, the Fed has been pulling liquidity out of the financial system through a series of rate hikes. Now, to avoid a crisis in the banking system, they are providing billions of dollars of liquidity back in. Liz Ann Sonders, Schwab's chief investment strategist, joins host Mike Townsend to share her perspective on the Fed's latest 25-basis-point rate hike and discuss how the Fed is juggling these two competing pressures. She also explains the turmoil in the banking sector, considers what’s happening with the jobs market and the economy in general, and shares her thoughts on the chances for recession. And Liz Ann provides some important reminders on ways investors can approach these challenging times. WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts. Important DisclosuresThe policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.Investing involves risk, including loss of principal. Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. Lower rated securities are subject to greater credit risk, default risk, and liquidity risk.Diversification, asset allocation, and rebalancing strategies do not ensure a profit and do not protect against losses in declining markets. Rebalancing may cause investors to incur transaction costs and, when a nonretirement account is rebalanced, taxable events may be created that may affect your tax liability.All corporate names are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.There are risks associated with investing in dividend paying stocks, including but not limited to the risk that stocks may reduce or stop paying dividends.(0323-3H86)
3/23/202331 minutes, 22 seconds
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Four Simmering Issues That Could Soon Boil Over

While the new Congress has had a slow start to 2023, there are plenty of issues percolating in Washington that investors need to be keeping an eye on. Host Mike Townsend breaks down four issues and discusses why they are likely to take on greater importance for the markets this year.He dives into the recent fight in Congress over environmental, social, and governance (ESG)-focused investing and how this skirmish is likely a preview of a larger battle over ESG investing that isn't likely to go away soon. Then discusses how investors should read the messages the Fed is sending about the economy—including this week's comments from Fed Chair Jerome Powell on quickening the pace of rate hikes. He also provides his perspective on the looming debt ceiling debate and the historical volatility and market uncertainty as the deadline for a solution approaches and examines alternative proposals if the impasse can’t be resolved. And he shares insights on the fading hopes that Congress could find common ground on cryptocurrency regulation.WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts. Important DisclosuresThe policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly. For more information on indexes please see www.schwab.com/indexdefinitions.Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.Investing involves risk, including loss of principal. This information does not constitute and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor, CPA, financial planner, or investment manager.Environmental, social and governance (ESG) strategies implemented by mutual funds, exchange-traded funds (ETFs), and separately managed accounts are currently subject to inconsistent industry definitions and standards for the measurement and evaluation of ESG factors; therefore, such factors may differ significantly across strategies. As a result, it may be difficult to compare ESG investment products. Further, some issuers may present their investment products as employing an ESG strategy but may overstate or inconsistently apply ESG factors. An investment product’s ESG strategy may significantly influence its performance. Because securities may be included or excluded based on ESG factors rather than other investment methodologies, the product’s performance may differ (either higher or lower) from the overall market or comparable products that do not have ESG strategies. Environmental (“E”) factors can include climate change, pollution, waste, and how an issuer protects and/or conserves natural resources. Social (“S”) factors can include how an issuer manages its relationships with individuals, such as its employees, shareholders, and customers as well as its community. Governance (“G”) factors can include how an issuer operates, such as its leadership composition, pay and incentive structures, internal controls, and the rights of equity and debt holders. Carefully review an investment product’s prospectus or disclosure brochure to learn more about how it incorporates ESG factors into its investment strategy.All corporate names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Supporting documentation for any claims or statistical information is available upon request.Digital currencies, such as bitcoin, are highly volatile and not backed by any central bank or government. Digital currencies lack many of the regulations and consumer protections that legal-tender currencies and regulated securities have. Due to the high level of risk, investors should view Bitcoin as a purely speculative instrument.Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed-income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors.Currencies are speculative, very volatile and are not suitable for all investors.0323-39CJ
3/9/202323 minutes, 47 seconds
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Can Markets Rise Above U.S.-China Tensions?

From China's spy balloon and its increasing support for Russia to a new White House executive order on China competition and a possible visit to Taiwan by the new speaker of the House, there are plenty of reasons that U.S.-China tensions have been increasing in recent weeks. At the same time, China's economy is reopening after its long period of COVID-related isolation. Jeff Kleintop, Schwab's chief global investment strategist, joins host Mike Townsend to discuss what all of these developments mean for the markets and investors. They discuss how investors should think about geopolitical tensions and how to take advantage of opportunities overseas.Mike also provides an update from Washington on the unexpected opening at the Fed Board of Governors, as Vice Chair Lael Brainard steps down to take a key White House position. And he shares the latest on the debt ceiling and a potential default timeline, as well as a decision by the SEC to speed up settlement times for stock trades. WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts. Important DisclosuresInvestors should consider carefully information contained in the prospectus or, if available, the summary prospectus, including investment objectives, risks, charges, and expenses. Please read it carefully before investing.The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.All corporate names are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly. For more information on indexes please see www.schwab.com/indexdefinitions.Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.Investing involves risk, including loss of principal. International investments involve additional risks, which include differences in financial accounting standards, currency fluctuations, geopolitical risk, foreign taxes and regulations, and the potential for illiquid markets. Investing in emerging markets may accentuate these risks.Commodity-related products carry a high level of risk and are not suitable for all investors. Commodity-related products may be extremely volatile, illiquid and can be significantly affected by underlying commodity prices, world events, import controls, worldwide competition, government regulations, and economic conditions.(0223-3RUK)
2/23/202324 minutes, 23 seconds
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Economy Is Thriving but Fed Not Ready to Let Go

Last week saw more signs that the economy is thriving, with a blowout jobs report and continued wage growth, while the Fed increased the interest rate and signaled an extended fight against inflation. Kathy Jones, Schwab’s chief fixed income strategist, joins host Mike Townsend to dig into these mixed messages and what they mean for the bond markets. They discuss whether the Fed can avoid a recession and bring the economy in for a “soft landing.” Kathy also weighs in on why she thinks “bonds are back” and whether that means the traditional 60/40 portfolio is back as well. And she gives her take on municipal bonds and where the dollar is headed.Also, Mike provides the latest on the debt ceiling standoff following the first face-to-face meeting between the president and the House speaker on the issue. And he discusses the agenda for the key committees on Capitol Hill that oversee the markets, including plans to examine cryptocurrency and environmental, social, and governance focused (ESG) investing.WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.Important DisclosuresThe policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve. Supporting documentation for any claims or statistical information is available upon request.Investing involves risk, including loss of principal. Diversification and asset allocation strategies do not ensure a profit and do not protect against losses in declining markets.Digital currencies, such as bitcoin, are highly volatile and not backed by any central bank or government. Digital currencies lack many of the regulations and consumer protections that legal-tender currencies and regulated securities have. Due to the high level of risk, investors should view Bitcoin as a purely speculative instrument.Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. Lower rated securities are subject to greater credit risk, default risk, and liquidity risk.Tax-exempt bonds are not necessarily a suitable investment for all persons. Information related to a security's tax-exempt status (federal and in-state) is obtained from third-parties and Schwab does not guarantee its accuracy. Tax-exempt income may be subject to the Alternative Minimum Tax (AMT). Capital appreciation from bond funds and discounted bonds may be subject to state or local taxes. Capital gains are not exempt from federal income tax.Environmental, social and governance (ESG) strategies implemented by mutual funds, exchange-traded funds (ETFs), and separately managed accounts are currently subject to inconsistent industry definitions and standards for the measurement and evaluation of ESG factors; therefore, such factors may differ significantly across strategies. As a result, it may be difficult to compare ESG investment products. Further, some issuers may present their investment products as employing an ESG strategy, but may overstate or inconsistently apply ESG factors. An investment product’s ESG strategy may significantly influence its performance. Because securities may be included or excluded based on ESG factors rather than other investment methodologies, the product’s performance may differ (either higher or lower) from the overall market or comparable products that do not have ESG strategies. Environmental (“E”) factors can include climate change, pollution, waste, and how an issuer protects and/or conserves natural resources. Social (“S”) factors can include how an issuer manages its relationships with individuals, such as its employees, shareholders, and customers as well as its community. Governance (“G”) factors can include how an issuer operates, such as its leadership composition, pay and incentive structures, internal controls, and the rights of equity and debt holders. Carefully review an investment product’s prospectus or disclosure brochure to learn more about how it incorporates ESG factors into its investment strategy.International investments involve additional risks, which include differences in financial accounting standards, currency fluctuations, geopolitical risk, foreign taxes and regulations, and the potential for illiquid markets. Investing in emerging markets may accentuate these risks.Currency trading is speculative, volatile and not suitable for all investors.(0223-3ZFM)
2/9/202326 minutes, 43 seconds
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Add the Debt Ceiling Fight to the Markets’ Woes

Randy Frederick, Schwab's managing director for trading and derivatives, joins host Mike Townsend to address concerns about the looming debt ceiling fight in Congress, the far-reaching disruption it could bring to the markets, and whether we can learn anything from a similar standoff in 2011. They also share insights on how the markets are interpreting the latest inflation numbers and recent earnings reports. And Randy provides an update on the state of the cryptocurrency space in the wake of the collapse of the crypto exchange FTX late last year. Mike discusses the creation of a new House subcommittee focused on digital currency and financial technology, a first of its kind. He also considers what the 5,000 new IRS employees will mean to this year's tax filing season and dives into a bit of the U.S.'s debt ceiling history. WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts. Important Disclosures:The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. Supporting documentation for any claims or statistical information is available upon request.Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve. All corporate names are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly. For more information on indexes please see www.schwab.com/indexdefinitions.Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.Investing involves risk, including loss of principal. Digital currencies, such as bitcoin, are highly volatile and not backed by any central bank or government. Digital currencies lack many of the regulations and consumer protections that legal-tender currencies and regulated securities have. Due to the high level of risk, investors should view Bitcoin as a purely speculative instrument.(0123-31H1)
1/26/202327 minutes, 17 seconds
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Old Fears Linger, New Fears Emerge for the Markets

After a brutal 2022 that saw the S&P 500® fall by more than 19% and bonds post their worst year in decades, investors are wary about what 2023 may bring. On this episode of WashingtonWise, Kevin Gordon, Schwab's senior investment strategist, joins host Mike Townsend to discuss how the markets have been reacting to messages the Federal Reserve is sending about inflation, interest rates, and the economy. He shares his takeaways from recent housing and jobs data, previews the upcoming earnings season, and considers why investors are changing their tune when it comes to some of the biggest names in the markets. And he offers questions to ask yourself to help you tailor your investments to your needs instead of following a formula. Mike also offers his perspective on a wild opening week for the new Congress and previews the looming battles over the debt ceiling and funding the government, two key issues that are likely to affect the markets in 2023. He discusses how new rules the IRS and the SEC are considering could have a direct impact on investors and shares highlights from the new retirement savings law that Congress passed in late December.WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts. Important Disclosures:The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. Supporting documentation for any claims or statistical information is available upon request.Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.All corporate names are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly. For more information on indexes please see www.schwab.com/indexdefinitions. Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.Investing involves risk, including loss of principal. Diversification and asset allocation strategies do not ensure a profit and do not protect against losses in declining markets.This information does not constitute and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor, CPA, financial planner, or investment manager.Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. Lower rated securities are subject to greater credit risk, default risk, and liquidity risk.Performance may be affected by risks associated with non-diversification, including investments in specific countries or sectors. Additional risks may also include, but are not limited to, investments in foreign securities, especially emerging markets, real estate investment trusts (REITs), fixed income, small capitalization securities and commodities. Each individual investor should consider these risks carefully before investing in a particular security or strategy.(0123-2HWR)
1/12/202332 minutes, 56 seconds
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Can the Markets Leave a Brutal 2022 Behind?

For investors in just about everything—equities, bonds, cryptocurrency—2022 has been a year to forget. Will 2023 be a different story? In the year's final episode, four of Schwab's top experts join Mike to talk about what's happened this year and whether the signs are pointing to a turnaround in 2023. Kathy Jones, Schwab's chief fixed income strategist, leads off the discussion by weighing in on the upcoming Fed meeting, the key data points the Fed is using to gauge inflation, and why 2023 is looking like a positive year for fixed-income investors. Chief Investment Strategist Liz Ann Sonders offers her take on the equity markets and why focusing on characteristics, rather than sectors, will be key in the year ahead. Jeff Kleintop, chief global investment strategist, looks at what central banks around the world are doing and how a variety of geopolitical risks will likely keep volatility high in global markets. And Randy Frederick, Schwab's managing director for trading and derivatives, discusses the likelihood of tougher regulation for cryptocurrencies and where traders are continuing to find investing opportunities in a rocky market.WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts. Important Disclosures:The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.All corporate names are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly. For more information on indexes please see www.schwab.com/indexdefinitions. Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.Investing involves risk, including loss of principal. Digital currencies, such as bitcoin, are highly volatile and not backed by any central bank or government. Digital currencies lack many of the regulations and consumer protections that legal-tender currencies and regulated securities have. Due to the high level of risk, investors should view Bitcoin as a purely speculative instrument.Diversification and asset allocation strategies do not ensure a profit and do not protect against losses in declining markets.Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. Lower rated securities are subject to greater credit risk, default risk, and liquidity risk.Tax exempt bonds are not necessarily a suitable investment for all persons. Information related to a security's tax-exempt status (federal and in-state) is obtained from third parties and CSIM does not guarantee its accuracy. Tax-exempt income may be subject to the Alternative Minimum Tax (AMT). Capital appreciation from bond funds and discounted bonds may be subject to state or local taxes. Capital gains are not exempt from federal income tax.Commodity-related products carry a high level of risk and are not suitable for all investors. Commodity-related products may be extremely volatile, illiquid and can be significantly affected by underlying commodity prices, world events, import controls, worldwide competition, government regulations, and economic conditions.International investments involve additional risks, which include differences in financial accounting standards, currency fluctuations, geopolitical risk, foreign taxes and regulations, and the potential for illiquid markets. Investing in emerging markets may accentuate these risks.Currencies are speculative, very volatile and are not suitable for all investors.Options carry a high level of risk and are not suitable for all investors. The terminal rate is the level at which the Fed is expected to stop raising interest rates.(1222-2ZZ0)
12/8/202235 minutes, 39 seconds
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Inflation Peaking but Pain Won’t End

The latest CPI and jobs reports indicated that inflation may have peaked, sending the markets into a big rally. But there are worrisome signals beneath the surface warning that inflation is far from over. Kevin Gordon, a senior investment researcher at the Schwab Center for Financial Research, joins host Mike Townsend to assess the latest data and discuss how far the Federal Reserve is willing to go before easing its series of rapid interest rate hikes. They also examine the hurdles the economy still faces before we can leave the bear market behind, whether the latest crypto meltdown is having spillover effects on the equity markets and what potential gridlock in Washington may mean for the markets in the year ahead. Mike also shares his thoughts on the midterm elections and highlights what may be on tap for the post-election session of Congress, including a government funding debate, retirement savings legislation and a longshot bid to raise the debt ceiling.WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts.  Important Disclosures:The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.All corporate names are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly. For more information on indexes please see www.schwab.com/indexdefinitions.Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.Investing involves risk, including loss of principal. Digital currencies, such as bitcoin, are highly volatile and not backed by any central bank or government. Digital currencies lack many of the regulations and consumer protections that legal-tender currencies and regulated securities have. Due to the high level of risk, investors should view Bitcoin as a purely speculative instrument.Correlation is a statistical measure of how two investments have historically moved in relation to each other, and ranges from -1 to +1. A correlation of 1 indicates a perfect positive correlation, while a correlation of -1 indicates a perfect negative correlation. A correlation of zero means the assets are not correlated.Environmental, social and governance (ESG) strategies implemented by mutual funds, exchange-traded funds (ETFs), and separately managed accounts are currently subject to inconsistent industry definitions and standards for the measurement and evaluation of ESG factors; therefore, such factors may differ significantly across strategies. As a result, it may be difficult to compare ESG investment products. An investment product’s ESG strategy may significantly influence its performance. Carefully review an investment product’s prospectus or disclosure brochure to learn more about how it incorporates ESG factors into its investment strategy.(1122-2Z7E)
11/17/202233 minutes, 27 seconds
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Dangers to U.S. Economy from Without and Within

The highly connected global economy can be a positive force when all systems are working well. But when cracks start to form and economies begin to falter, the U.S. economy may not be able to avoid the spillover. Jeff Kleintop, Schwab’s chief global investment strategist, joins Mike Townsend to look at the top concerns in the U.K, China, and Russia and consider how those issues could impact the U.S. They also discuss the problems the strong dollar is creating for emerging markets as they fight their own inflation battles. Also, Mike shares insights on a court decision that could impact the Consumer Financial Protection Bureau, the agency that oversees mortgages, auto loans, credit cards, and other consumer financial products. And he highlights an IRS announcement on the inflation adjustments to taxes for 2023, which include increased retirement savings contribution limits, a hike in the annual gift tax exclusion, and more.WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts. Important DisclosuresThe policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. International investments involve additional risks, which include differences in financial accounting standards, currency fluctuations, geopolitical risk, foreign taxes and regulations, and the potential for illiquid markets. Investing in emerging markets may accentuate these risks.Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.This information does not constitute and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor, CPA, financial planner, or investment manager.Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. Lower rated securities are subject to greater credit risk, default risk, and liquidity risk.Currencies are speculative, very volatile and are not suitable for all investors.Commodity-related products carry a high level of risk and are not suitable for all investors. Commodity-related products may be extremely volatile, illiquid and can be significantly affected by underlying commodity prices, world events, import controls, worldwide competition, government regulations, and economic conditions.All corporate names are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly. For more information on indexes please see www.schwab.com/indexdefinitions.Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.Investing involves risk, including loss of principal. Diversification strategies do not ensure a profit and do not protect against losses in declining markets.1022-2GZ2
10/27/202229 minutes, 51 seconds
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Are Rate Hikes Pushing Markets to Breaking Point?

After another roller coaster week in the markets, Kathy Jones, Schwab's chief fixed income strategist, joins the podcast to talk about how the Fed's aggressive rate hikes are impacting the bond market, the dollar, and the global economy. She shares her thoughts on the bond market's influence on the stock market, the bond crisis in the U.K., and the impact of a strong dollar on U.S. consumers, multinational companies, and the economies of emerging-market countries. Kathy also reminds investors of the four reasons why bonds can play an important role in a diversified portfolio during these volatile times.Additionally, host Mike Townsend provides updates on Congress avoiding a government shutdown—for now—as well as a new IRS ruling that will come as a relief to anyone who has recently inherited an IRA. He also provides his perspective on key races to watch in next month's midterm elections and why the impending debt ceiling crisis is going to be a big concern for the markets next year.WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts. Important DisclosuresThe policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. This information does not constitute and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor, CPA, financial planner, or investment manager.Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.Investing involves risk, including loss of principal. Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. Lower rated securities are subject to greater credit risk, default risk, and liquidity risk.International investments involve additional risks, which include differences in financial accounting standards, currency fluctuations, geopolitical risk, foreign taxes and regulations, and the potential for illiquid markets. Investing in emerging markets may accentuate these risks.Currencies are speculative, very volatile and are not suitable for all investors.All corporate names are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.Diversification and asset allocation strategies do not ensure a profit and do not protect against losses in declining markets.(1022-2JCN)
10/13/202232 minutes, 34 seconds
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Another Big Rate Hike: Does the Fed Have a Plan?

With the latest 75-basis-point increase, the Fed is on course to push interest rates to over 4.5% in early 2023. But investors wonder if things are moving too far too fast. Liz Ann Sonders, Schwab's chief investment strategist, joins Mike to discuss whether the Fed actually has a plan. Will they curtail the hikes before pushing the economy into recession? What's next for the markets—will the decline continue as long as the Fed keeps raising rates? They also discuss how large corporations are reacting to the new minimum tax imposed by the Inflation Reduction Act. And they consider whether there are opportunities for investors in this volatile market. Does buying the dip still apply?Mike also looks at the scramble on Capitol Hill to keep the government funded through mid-December and recent testimony before Congress by the head of the SEC, where he discussed the agency's plans to overhaul equity market structure, require public companies to disclose more about their climate risk, and strengthen the regulatory structure around cryptocurrency.WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts. Important Disclosures:The policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. This information does not constitute and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor, CPA, financial planner, or investment manager.Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.Investing involves risk, including loss of principal. Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. Lower rated securities are subject to greater credit risk, default risk, and liquidity risk.International investments involve additional risks, which include differences in financial accounting standards, currency fluctuations, geopolitical risk, foreign taxes and regulations, and the potential for illiquid markets. Investing in emerging markets may accentuate these risks.Diversification, asset allocation, and rebalancing strategies do not ensure a profit and do not protect against losses in declining markets. Rebalancing may cause investors to incur transaction costs and, when a nonretirement account is rebalanced, taxable events may be created that may affect your tax liability.Currencies are speculative, very volatile and are not suitable for all investors.(0922-26UZ) 
9/29/202229 minutes, 5 seconds
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Investing Takeaways from Summer’s Key Bills

Over the summer Congress was surprisingly productive, churning out landmark legislation to address climate change, bolster U.S. chip production, strengthen competition with China, increase corporate taxes, and bring down inflation. And the president used his executive authority to eliminate $10,000 in student debt for millions of families. In this episode of WashingtonWise, Mike Townsend looks at these major policy developments from the perspective of investors and considers the impact they could have on the economy, corporations, and consumers.He also discusses where Congress will focus energy in the weeks prior to the mid-terms, starting with the one thing that must get done—approving funding to keep the government running prior to the September 30 deadline. And he checks in on the Fed’s progress in the inflation fight and what to expect in terms of rate hikes for the rest of 2022. WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts.(0922-20SJ) 
9/15/202224 minutes, 2 seconds
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Fed Gets Aggressive: What’s It Mean for Investors?

After the recent disappointing inflation report, the Federal Reserve raised interest rates by 75 basis points—the largest Fed increase in 28 years. Kathy Jones, Schwab’s chief fixed income strategist, joins Mike Townsend to discuss the implications for the economy and the markets of the Fed’s aggressive move. They also consider whether corporate bonds are a good option in this environment and how the bond market is acting as a signal that a recession may be with us soon.Mike also provides updates on two bills―one dealing with retirement savings and the other focused on cryptocurrency regulation―that have begun moving through the Senate. And he highlights the potential implications for individual investors of a recent speech by the SEC chair about his plans for a major overhaul to how the stock market operates.WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts. Important DisclosuresThe policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.olves risk, including loss of principal. Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly. For more information on indexes please see www.schwab.com/indexdefinitions. Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.Digital currencies, such as bitcoin, are highly volatile and not backed by any central bank or government. Digital currencies lack many of the regulations and consumer protections that legal‐tender currencies and regulated securities have. Due to the high level of risk, investors should view Bitcoin as a purely speculative instrument.Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed‐ income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. Lower rated securities are subject to greater credit risk, default risk, and liquidity risk.Money Market Funds-An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.International investments involve additional risks, which include differences in financial accounting standards, currency fluctuations, geopolitical risk, foreign taxes and regulations, and the potential for illiquid markets. Investing in emerging markets may accentuate these risks.Commodity‐related products, including futures, carry a high level of risk and are not suitable for all investors. Commodity‐related products may be extremely volatile, illiquid and can be significantly affected by underlying commodity prices, world events, import controls, worldwide competition, government regulations, and economic conditions, regardless of the length of time shares are held. Schwab does not recommend the use of technical analysis as a sole means of investment research.All names shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.Correlation is a statistical measure of how two investments have historically moved in relation to each other, and ranges from -1 to +1. A correlation of 1 indicates a perfect positive correlation, while a correlation of -1 indicates a perfect negative correlation. A correlation of zero means the assets are not correlated.0622-2AJV
6/16/202226 minutes, 1 second
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Current Winners and Losers in the Global Economy

Not all countries have been hit by the financial downturn currently gripping the U.S. and China. Jeff Kleintop, Schwab’s chief global investment strategist, joins Mike to discuss why many international stock markets are outperforming the U.S. markets and whether that trend is sustainable. They also look at the impact on the bottom line of companies that pulled out of Russia, China’s economic difficulties and what they might mean for U.S. consumers, the outlook for improvements to supply chain disruptions, and how concerned investors should be about the rise in the U.S. trade deficit.Mike also shares updates on additional U.S. aid for Ukraine, the confirmations of Fed nominees, growing concern in Washington about the lack of a regulatory framework for cryptocurrency, and a slowdown in the pace of rules rolling out at the SEC.WashingtonWise is an original podcast for investors from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts. Important DisclosuresThe policy analysis provided by the Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. Supporting documentation for any claims or statistical information is available upon request.Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.Investing involves risk, including loss of principal. Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly. For more information on indexes please see www.schwab.com/indexdefinitions. Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.International investments involve additional risks, which include differences in financial accounting standards, currency fluctuations, geopolitical risk, foreign taxes and regulations, and the potential for illiquid markets. Investing in emerging markets may accentuate these risks.Digital currencies, such as bitcoin, are highly volatile and not backed by any central bank or government. Digital currencies lack many of the regulations and consumer protections that legal‐tender currencies and regulated securities have. Due to the high level of risk, investors should view Bitcoin as a purely speculative instrument. Please read NFA Investor Advisory – Futures on Virtual Currencies Including Bitcoin and CFTC Customer Advisory: Understand the Risk of Virtual Currency Trading. Currencies are speculative, very volatile and are not suitable for all investors.Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. Lower rated securities are subject to greater credit risk, default risk, and liquidity risk.Commodity‐related products carry a high level of risk and are not suitable for all investors. Commodity‐related products may be extremely volatile, illiquid and can be significantly affected by underlying commodity prices, world events, import controls, worldwide competition, government regulations, and economic conditions.All corporate names are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.Diversification and asset allocation strategies do not ensure a profit and do not protect against losses in declining markets.Correlation is a statistical measure of how two investments have historically moved in relation to each other, and ranges from -1 to +1. A correlation of 1 indicates a perfect positive correlation, while a correlation of -1 indicates a perfect negative correlation. A correlation of zero means the assets are not correlated.0522-2LAE
5/19/202226 minutes, 55 seconds
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The Road to Recovery for Small Business

In this episode of WashingtonWise Investor, Mike Townsend is joined by Marianne Hayes, senior strategist in Schwab’s Wealth Strategy group, to discuss the impact of the coronavirus on small businesses and the 120 million people they employ. Mike and Marianne dive into the government’s efforts to support small businesses during the closures and consider how well they are working, as well as what the small-business segment of the economy may look like in the future.Mike also covers the next round of stimulus—the CARES Act 2—that is being debated in Congress. And he addresses 2020 Election challenges in the era of stay-at-home orders.WashingtonWise Investor is an original podcast from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts. Important DisclosuresThe policy analysis provided by Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed. Supporting documentation for any claims or statistical information is available upon request.Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.Investing involves risk including loss of principal.This information does not constitute and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor, CPA, financial planner, or investment manager.(0420-0456)
4/16/202022 minutes, 29 seconds
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Making Smart Choices in a Down Market

In this episode of WashingtonWise Investor, Annie Liu, Schwab regional branch executive in Bellevue, Washington, joins Mike Townsend to address some of the most pressing concerns that clients have—including buying bonds when yields are so low, tilting your portfolio to be more defensive, and taking advantage of special provisions in the CARES Act.Mike also shares his insights on what’s likely coming in the next stimulus bills for individuals and small businesses, as well as the continued disruption of the primary process.      WashingtonWise Investor is an original podcast from Charles Schwab. For more on the series, visit Schwab.com/WashingtonWise.If you enjoy the show, please leave a ★★★★★ rating or review on Apple Podcasts. Important DisclosuresThe policy analysis provided by Charles Schwab & Co., Inc., does not constitute and should not be interpreted as an endorsement of any political party.The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed. Supporting documentation for any claims or statistical information is available upon request.Past performance is no guarantee of future results and the opinions presented cannot be viewed as an indicator of future performance.Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly. For more information on indexes please see www.schwab.com/indexdefinitions.Diversification, asset allocation, and rebalancing a portfolio cannot assure a profit or protect against a loss in any given market environment. Rebalancing may cause investors to incur transaction costs and, when rebalancing a non-retirement account, taxable events may be created that may affect your tax liability.Investing involves risk including loss of principal.Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed-income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. High-yield bonds and lower rated securities are subject to greater credit risk, default risk, and liquidity risk.Tax-exempt bonds are not necessarily a suitable investment for all persons. Information related to a security's tax-exempt status (federal and in-state) is obtained from third-parties and Schwab does not guarantee its accuracy. Tax-exempt income may be subject to the Alternative Minimum Tax (AMT). Capital appreciation from bond funds and discounted bonds may be subject to state or local taxes. Capital gains are not exempt from federal income tax.Preferred securities generally have lower credit ratings and a lower claim to assets than the issuer's individual bonds. Often have higher yields than the firm's individual bonds due to these risk characteristics. Preferred securities are often callable, meaning the issuing company may redeem the security at a certain price after a certain date. Such call features may affect yield. Like bonds, prices of preferred securities tend to move inversely with interest rates, so they are subject to increased loss of principal during periods of rising interest rates. Investment value will fluctuate, and preferred securities, when sold before maturity, may be worth more or less than original cost. Preferred securities are subject to various other risks including changes in interest rates and credit quality, default risks, market valuations, liquidity, prepayments, early redemption, deferral risk, corporate events, tax ramifications, and other factors.Commodity-related products, including futures, carry a high level of risk and are not suitable for all investors. Commodity-related products may be extremely volatile, illiquid and can be significantly affected by underlying commodity prices, world events, import controls, worldwide competition, government regulations, and economic conditions, regardless of the length of time shares are held.This information does not constitute and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor, CPA, financial planner, or investment manager.(0420-0LD7)
4/9/202029 minutes, 28 seconds