OIN 0810 B - Charles Schwab Corporation

oninvesting? NEWSLETTER

AUGUST 2010

"I don't have hours to work on my nances. What can I do in minutes?"

5 IF YOU

HAVE MINUTES...

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 finances.

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 rothconversion.

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.

30 IF YOU

HAVE

MINUTES...

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 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 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.

IF YOU HAVE

15

MINUTES...

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: 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.

EXCHANGE-TRADED FUNDS

What you need to know about ETFs

Schwab is your ETF HQ--the place to buy over 800 ETFs, including Schwab ETFsTM, 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 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 fluctuate 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. 1The $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. 2Restrictions apply; online trades of The Schwab Exchange-Traded FundsTM (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 affiliated with The Charles Schwab Corporation or any of its affiliates.

PIMCO MUNICIPAL BOND LADDER STRATEGIES

A muni bond ladder strategy that's managed for you

If 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 ServicesTM 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 portfolio managers select munis with a creditquality 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 difficult 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 ConnectionTM 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 diversified 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 Pacific Investment Management Company LLC ("PIMCO") are separate and unaffiliated companies.

THE NEW MUTUAL FUND RESEARCH CENTER ON

Now it's even easier to nd the right mutual funds

We've enhanced the mutual fund research center on . 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 simplified search-- I Select your own criteria or pick from a pre-

de ned search by using the expanded mutual fund screener I Search funds by top 10 holdings or fund strategy I 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 and go to "Research" and then "Mutual Funds."

On the Web:

Schwab by PhoneTM: 800-435-4000

Just tell us why you're calling: Now you can use voice 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 .

Ideas for future issues? Send them to newslettereditor@.

Access to services and your account may be limited 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 myprofile.

?2010 Charles Schwab & Co., Inc. All rights reserved. Member SIPC. SCH 06719 (0610-3319) STS53629M (08/10)

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