Charles Schwab announced today that it was launching what it calls “Real Life Retirement(TM) Services”. You can see what it looks like here (screenshot to the right).
Background info on the launch
From the press release:
“We have a different point-of-view from other financial firms in how we approach retirement. For most people, retirement isn’t about hang-gliding or hitting the golf course every day. People dream of balance – enjoying a comfortable lifestyle, covering healthcare costs, spending time with family and friends, and making sure they won’t run out of money,” said Mark Jamison, vice president, Charles Schwab. “We chose to build a service that addresses real life challenges people are facing today, which typically don’t involve a life sailing around the world,” he added.
Why now
Schwab conducted a pulse survey in the first two weeks of 2009 and found the following:
- One in four (26%) adults surveyed ages 55-64 do not know whose advice to trust when it comes to retirement planning.
- 33% of 55-64 year olds indicated they are confused about weighing the immediate marketplace alongside their long-term goals.
There is a lot of info on this site and much of it is traditional online brokerage marketing/services like portfolio review, retirement calculator, and a free consultation. But there is something really interesting lurking beneath what’s going on here and it has to do with the social aspect of how Schwab is marketing itself.
You see, retirement investing is very much about allaying fears and how better to soothe anxious retirement investors than a channel to ask questions and to see what questions they should be asking by seeing what others are concerned with.
I’ll show you what I mean:
First note the question input box. It’s friendly and accessible. No login requirements and it’s open to non-Schwab account holders.
Second, I can peer into the other questions being asked. Questions like “How are my expenses likely to change in retirement” and “How do I estimate health care costs in retirement”. Because Schwab is a broker/dealer, the firm can’t respond directly to specific questions thrown at it but can address the general nature of the question. Not perfect but definitely a step in the right direction.
What Schwab accomplishes with this launch
Schwab does a couple of things with launching this portal (again, you can see it here)
- Baby steps towards adopting social media: If social media’s success is built off an inherent voyeurism we all share, Schwab’s question/answer system enters the game. Traditional online brokerages have been slow to adopt social media while upstarts like Zecco and TradeKing have been more aggressive in differentiating themselves as upstarts in a field that’s somewhat commoditized.
- Redefines how baby-boomers nearing retirement think about retirement: Baby boomers are using the Internet and when it comes to researching such anxiety-ridden issues like retirement, they are reaching out to one another for support. Schwab leverages this trend indirectly via its ability to harness questions and publish the answers. It’s good for investors and the questions in and off themselves are good content.
- Schwab gets great market research. Much is discussed about social media’s ability to help get users smart fast. Social media is totally about the publisher getting smart about what its readers/prospects/investors are interested in. Schwab has a living lab to tap the collective interest of its constituents. That’s powerful.
Let’s keep an eye on this space. I expect to see a lot of activity as competition for investment assets continues to grow.
Don’t forget to sign up to subscribe to New Rules of Investing today.
