onNEWSLETTER

on ®

AUGUST 2010

investing

1515MINUTES…

IF YOU HAVE

30MINUTES…

IF YOU HAVE

Calculate how close you are to reaching your retirement goals, based on such factors as your age, how much money you have saved and your expected Social Security bene� t. Schwab’s Retirement Savings Calculator makes it easy: schwab.com/retirementcalculator.

Determine the amount of money you should have in an emergency fund. Generally, at least three months’ worth of essential living expenses is ideal, but your individual situation might warrant more or less savings. You’ll want to keep your emergency fund in a liquid, easily accessible account, such as a money market fund or an interest-bearing checking account.

Attend an online investing workshop. “Put Your Investment Plan Into Action” is designed to provide investors with strategies to optimize their portfolios. Sign up at schwab.com/workshops.

Find out if you’ve taken on too much risk. As a rule of thumb, we recommend rebalancing at least once a year and reviewing your asset allocation whenever you’ve experienced a major life event, such as a job change, marriage or a new baby. Use Schwab’s online Portfolio Checkup tool to see how your assets are allocated relative to your investing goals and risk tolerance at schwab.com/portfoliocheckup.

Have a few more minutes? If the Portfolio Checkup tool reveals that you’re out of balance, take some time now to adjust back to your target allocation.

5MINUTES…

IF YOU HAVE

Boost your retirement savings. Many employers match your retirement contributions up to a certain dollar amount or percentage of your income. If yours does, log on to your account to make sure you’re contributing at least enough to get the full amount. If you’re already receiving the full match, look into increasing your contribution rate by 1% or more, as even a small boost can have a signi� cant impact on your savings over time.

Get help managing your fi nances. Schedule a complimentary consultation with a Schwab investment consultant by calling 866-849-5799.

Learn more about Roth IRA conversion. Read “2010 Roth Conversion: Look Before You Leap” at schwab.com/rothconversion.

“ I don’t have hours to work on my � nances. What can I do in minutes?”With the end of summer quickly

approaching, it’s understandable

that you’d rather spend your

time outdoors in the sun instead

of indoors with your � nances.

Even if you only have a few

minutes to spare, there’s a lot

you can do. Consider these

quick action steps and useful

tools to help get your � nances

on track in 30 minutes or less.

On the Web:schwab.com

Schwab by Phone™:800-435-4000

Just tell us why you’re calling: Now you can usevoice commands to reach an investment professional, get quotes, place trades and more.

Chinese: 800-662-6068

Spanish: 800-786-5174

TeleBroker® (touch-tone): 800-272-4922*

* Please have your account number and PIN ready. If you don’t have a PIN, follow the prompts.

Schwab Wireless: Stay connected by launching your device’s browser and visiting schwab.com.

Ideas for future issues? Send them to newslettereditor@schwab.com.

Access to services and your account may belimited or unavailable during periods of peak demand, market volatility, systems upgrades or maintenance, or for other reasons.

Do we have your correct email address?To update your pro� le, log on to schwab.com/myprofi le.

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PIMCO MUNICIPAL BOND LADDER STRATEGIES

A muni bond ladder strategy that’s managed for youIf you’re looking for an investment solution that’s designed to generate tax-ef� cient income, a muni bond ladder strategy through Schwab Managed Account Services™ might be right for you.

How do muni bond ladders work?Think of these strategies as a ladder with each rung being comprised of a bond, or bonds, that share similar maturity dates. Over time, munis generate tax-ef� cient, periodic interest payments. The ladder is maintained by successive reinvestment of principal from maturing bonds. Payments can be distributed as they accrue or are reinvested into new bonds in the ladder.

Professional management with PIMCO. PIMCO provides expert muni bond portfolio management, regularly monitors credit quality of bond holdings and, if elected, reinvests principal and income. Their port-folio managers select munis with a credit-quality rating of A- or better at purchase, and assemble bonds with different maturity ranges in either 1–12 year or 1–18 year laddered portfolios.

>>To learn if a municipal bond ladder strategy might be right for you, talk with your Financial Consultant or call us at 800-435-4000.

Individual municipal bonds may not be tax-advantaged depending on the bond issuer and your state of residence. Bonds issued in U.S. territories are federal-tax exempt and state-tax exempt.

Bond prices rise and fall daily, and municipal bonds are subject to various risks, including changes in interest rates, call risk, market conditions and default risk. As interest rates rise, bond prices usually fall, and with them the value of your bonds. Bonds in the portfolios may be purchased at a premium, which may result in realized losses. Some municipal bonds may be diffi cult to sell. A bond issuer may be unable to make interest or principal payments, thereby resulting in a default. If this happens, the bond may have little or no value.

The PIMCO Municipal Bond Ladder strategies are available through Schwab’s Managed Account Connection™ program (“Connection”). Please read Schwab’s Schedule H brochure for important information and disclosures relating to Connection and Schwab’s Managed Account Services. In addition, please read PIMCO’s Form ADV or brochure for important information and disclosures. Investments in managed accounts should be considered in view of a larger, more diversifi ed investment portfolio. Bonds in the PIMCO Municipal Bond Ladder strategies may have a rating as low as A- at time of purchase. The strategies may hold callable bonds, which may increase interest-rate risk exposure.

Charles Schwab & Co., Inc. (“Schwab”) and Pacifi c Investment Management Company LLC (“PIMCO”) are separate and unaffiliated companies.

THE NEW MUTUAL FUND RESEARCH CENTER ON SCHWAB.COM

Now it’s even easier to � nd the right mutual funds We’ve enhanced the mutual fund research center on schwab.com. The new center lets you screen, compare, and analyze thousands of mutual funds more ef� ciently. Here’s what’s new and different:

Find mutual funds with simplifi ed search— � Select your own criteria or pick from a pre-

de� ned search by using the expanded mutual fund screener

� Search funds by top 10 holdings or fund strategy

� Compare funds side by side using the new Compare Funds tool.

Save screening criteria—Access your 10 most recent fund searches and save the screening criteria for your next visit.

Get fund information fast—Mouse over any fund symbol to see a snapshot of fund performance data and fees.

>>To � nd the right mutual funds for your portfolio, log on to schwab.com and go to “Research” and then “Mutual Funds.”

EXCHANGE-TRADED FUNDS

What you need to know about ETFsSchwab is your ETF HQ—the place to buy over 800 ETFs, including Schwab ETFs™, and get the value, resources and help you need.

Learn about ETFs. Visit our online ETF Center for answers to your questions, attend an ETF workshop at your local branch, or talk to a Schwab investment professional.

Save on ETFs. Trade any ETF for just $8.95 per online trade.1 Or buy and sell Schwab ETFs online commission-free in your Schwab account.2

>>To learn more, log on to schwab.com/ETFs or call 800-4SCHWAB.

Investors should consider carefully information contained in the prospectus, including investment objectives, risks, charges and expenses. You can request a prospectus by calling Schwab at 800-435-4000. Please read the prospectus carefully before investing.Investment value and return will fl uctuate and are subject to market volatility, so that an investor’s shares, when redeemed or sold, may be worth more or less than their original cost. Unlike mutual funds, shares of ETFs are not individually redeemable directly with the ETF.1 The $8.95 commission does not apply to foreign stock transactions, large block trading transactions requiring special handling, or restricted stock transactions. All broker assisted and automated phone trades are subject to service charges. See the Charles Schwab Pricing Guide for details. Employee equity compensation transactions are subject to separate commission schedules.

2 Restrictions apply; online trades of The Schwab Exchange-Traded Funds™ (Schwab ETFs) are commission-free at Schwab, while trades of third-party ETFs are subject to commissions. Broker-assisted and automated phone trades are subject to service charges. A minimum deposit of $1,000 is required to open most Schwab brokerage accounts. Waivers may apply. See the Charles Schwab Pricing Guide for details.

All ETFs are subject to management fees and expenses.

Commission-free trades are available through the broker/dealer subsidiary of The Charles Schwab Corporation, Charles Schwab & Co., Inc., member SIPC. Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO). SIDCO is not affi liated with The Charles Schwab Corporation or any of its affi liates.