STRATEGIES & IDEASOn FOR THE CHARLES SCHWABInvesting COMMUNITY • FALL 2013 Examine What’s In Your Index PAGE 14 Are Fees Eroding Your Returns? PAGE 28 Commodities: A How-To Guide PAGE 20 INFLATION: Should You Be Worried? PAGE 10 OIM-FA13-Qrt3-C1 dSW_FA13_C1_cover.indd 1 8/14/13 9:37 AM T:8” From Schwab Bank Call 1-877-416-7138 to apply for a purchase loan by 10/31/13.1 There’s one source The right place. schwab.com/homepurchaseoffer for the most The right mortgage. commission-free ™ Schwab ETF OneSource. * Right now, ETFs. More than 110 commission-free exchange-traded funds (ETFs) across major asset classes and from save up to $1,000 leading providers. Plus tools and education on And only one. 6FKZDEFRPWKDWFDQKHOS\RX÷QGWKH(7)VWKDW on closing costs.1 might be right for you. Now it’s all in one place. Start trading at schwab.com/ETFOneSource. When timing is essential, having the right resources at hand is critical. With Schwab Bank’s lending program through Quicken® Loans,® we’ll help make getting the home you want easier. T:10.5” Great service Faster closing Limited-time purchase offer A dedicated Quicken Loans team Our average closing time is 40 Get a $1,000 discount on closing will assist you through the entire days or less, and the process costs for a jumbo loan or $500 process and even help you get is made even simpler with off conforming or high-balance pre-approved the same day—free documents you can sign and loans when you apply by 10/31/13.1 of charge. upload electronically.2 Schwab ETF OneSource features ETFs from the following providers: United States Quicken Loans was ranked “Highest in Customer Commodity Funds Satisfaction for Primary Mortgage Origination” in the U.S.—three years in a row by J.D. Power and Associates.3 Investors should carefully consider information contained in the prospectus, including investment objectives, risks, charges, and expenses. You can request a prospectus by calling Schwab at 1-800-435-4000. Please read 1. In order to participate, you must agree that the lender, Quicken Loans, may share your information with Charles Schwab Bank. Offer available for purchase mortgages only and includes all rst mortgage loans offered through the prospectus carefully before investing. Schwab Bank’s home lending program provided by Quicken Loans. Purchase loan applications must be registered between 5/1/13 and 10/31/13 to receive the closing cost offer. A registered loan is one that has an assigned loan number and a purchase sales agreement. Your application date is printed on the Good Faith Estimate (GFE). You will receive a $500 closing cost credit for conforming and high-balance loans or a $1,000 closing cost credit *Conditions apply: Commission-free trades are only available for ETFs offered through Schwab ETF OneSource when placed online in a Schwab for jumbo loans. High-balance loan limits can differ among high-cost areas but currently cannot exceed $625,500. Larger loan limits are available in the states of Alaska and Hawaii. The closing cost credit will appear on the account. ETFs not available through Schwab ETF OneSource are subject to commissions. Service charges for all ETFs apply for trade orders borrower’s nal HUD-1 statement at closing. Offer is good only for mortgages that close. Additional details may apply. Nothing herein is or should be interpreted as an obligation to lend. Loans are subject to credit and property approval. This offer is subject to change or withdrawal at any time and without notice. placed through a broker ($25) or through our automated phone service ($5). An exchange processing fee applies to sell transactions. Certain 2. Average monthly closing time for purchase loans between October 2012 and May 2013 is 40 days or fewer from the date the interest rate is locked. types of Schwab ETF OneSource transactions are not eligible for the commission waiver, such as short sells and buys to cover (not including 3. Quicken Loans received the highest numerical score in the proprietary J.D. Power and Associates 2010–2012 U.S. Primary Mortgage Origination Satisfaction Studies.SM 2012 study based on 3,552 total responses measuring Schwab ETFs™). Schwab reserves the right to change the ETFs we make available without commissions. All ETFs are subject to management 19 lenders and measures opinions of consumers who originated a new mortgage. Proprietary study results are based on experiences and perceptions of consumers surveyed in July–August 2012. Your experiences may vary. Visit fees and expenses. Please see the Charles Schwab Pricing Guide for additional information. jdpower.com. Charles Schwab Bank and Charles Schwab & Co., Inc., are separate but afliated companies and subsidiaries of The Charles Schwab Corporation. Investment products are offered by Charles Schwab & Co., Inc. (member SIPC). Charles Schwab & Co., Inc. receives remuneration from third-party ETF companies participating in Schwab ETF OneSource for recordkeeping, Charles Schwab & Co., Inc., does not solicit, offer, endorse, negotiate, or originate any mortgage loan products and is neither a licensed mortgage broker nor a licensed mortgage lender. Home lending is offered and provided by Quicken shareholder services, and other administrative services, including program development and maintenance. Loans Inc., Equal Housing Lender. Quicken Loans Inc. is not afliated with The Charles Schwab Corporation, Charles Schwab & Co., Inc., or Charles Schwab Bank. Deposit and other lending products are offered by Charles Schwab Bank, Member FDIC and an Equal Housing Lender. 6FKZDE(7)VDUHGLVWULEXWHGE\6(,,QYHVWPHQWV'LVWULEXWLRQ&R Ü6,'&2Ý 6,'&2LVQRWDI÷OLDWHGZLWK7KH&KDUOHV6FKZDE&RUSRUDWLRQRU Quicken Loans is an Equal Housing Lender. Quicken Loans Inc. is a licensed mortgage lender. Arizona: Quicken Loans Inc., 16425 North Pima, Suite 200, Scottsdale, AZ 85260, Mortgage Banker License #BK-0902939; DQ\RILWVDI÷OLDWHV Arkansas: Quicken Loans Inc., 1050 Woodward Avenue, Detroit, MI 48226-1906, 1-888-474-0404; California: Licensed by the Department of Corporations, CA Residential Mortgage Lending Act; Colorado: Quicken Loans Inc., NMLS #3030, 1-888-474-0404, Regulated by the Division of Real Estate; Georgia: Residential Mortgage Licensee #11704, 1050 Woodward Avenue, Detroit, MI 48226-1906; Illinois: Residential Mortgage Licensee #4127, Investing involves risk, including the possible loss of principal. Shares are bought and sold at market price, which may be higher or lower than Department of Financial and Professional Regulation, 1050 Woodward Avenue, Detroit, MI 48226-1906; Maine: Quicken Loans Inc., Supervised Lender License NMLS #3030; Massachusetts: Quicken Loans Inc., Mortgage the net asset value (NAV). Lender License #ML-3030; Minnesota: Not an offer for a rate lock agreement; Mississippi: Licensed by the Mississippi Department of Banking and Consumer Finance; New Hampshire: Licensed by the NH Banking Department, #6743MB; New Jersey: Licensed Mortgage Banker—NJ Department of Banking, rst (and/or second) mortgages only; New York: Licensed Mortgage Banker—NYS Banking Department; Oregon: Quicken Loans Inc., License &KDUOHV6FKZDE,QYHVWPHQW0DQDJHPHQW,QFLVWKHLQYHVWPHQWDGYLVRUIRU6FKZDE(7)VDQGDQDI÷OLDWHRI7KH&KDUOHV6FKZDE&RUSRUDWLRQ #ML-1387; Pennsylvania: Licensed as a rst Mortgage Banker by the Department of Banking and licensed pursuant to the Pennsylvania Secondary Mortgage Loan Act; Rhode Island: Licensed Lender; Texas: Quicken Loans Inc., “SPDR” is a registered trademark of Standard & Poor’s Financial Services, LLC (“S&P”) and has been licensed for use by State Street 1050 Woodward Avenue, Detroit, MI 48226-1906; Virginia: Quicken Loans Inc., NMLS ID #3030 (www.nmlsconsumeraccess.org); Washington: Licensed by Consumer Loan Company License CL-3030. Quicken Loans Nationwide ® Mortgage Licensing System #3030. Rates are subject to change. Restrictions may apply. &RUSRUDWLRQ1R÷QDQFLDOSURGXFWRIIHUHGE\6WDWH6WUHHWRULWVDI÷OLDWHVLVVSRQVRUHGHQGRUVHGVROGRUSURPRWHGE\6 33RZHU6KDUHV Lending services provided by Quicken Loans Inc., a subsidiary of Rock Holdings Inc. “Quicken Loans” is a registered service mark of Intuit Inc., used under license. is a registered trademark of Invesco PowerShares Capital Management LLC (“Invesco PowerShares”). Invesco PowerShares and Invesco Distributors, Inc. are indirect, wholly owned subsidiaries of Invesco Ltd. USCF® and the United States Commodity Funds® are registered Charles Schwab Bank, 211 Main Street, San Francisco, CA 94105 trademarks of United States Commodity Funds LLC. All rights reserved. ©2013 Charles Schwab Bank. All rights reserved. Member FDIC. Equal Housing Lender. CLB (0913-5135) ADP75809-00 (09/13) ©2013 Charles Schwab & Co., Inc. All rights reserved. Member SIPC. CS18903-01 (0913-4462) ADP74651-00 (07/13) 044312_Mortgage_Promo_Update_Ad_R2.indd 1 7/24/13 4:26 PM ADP74651-00.indd 1 7/9/13 10:22 AM Z20275_1a_OnInvesting.indd E20714_1b OIM-FA13-Qrt3-C2 fSW_FA13_C2-C4.indd 2 8/6/13 1:06 PM 07.12.2013 07/25/13 EPSON dh dh Print Round Job # Filename Description None 044312 044312_Mortgage_Promo_Update_Ad_R2.indd Mortgage Promo Ad Scale No. 4 Last User / Previous User Last Modified Client Schwab Due Date None INITIALS DATE Mehnert, Michael / Mehnert, Michael 7-24-2013 3:41 PM Bleed 8.25” x 10.75” Project Mgr. Jane Fonts Rapp Printer Trim 8” x 10.5” Client Serv. Laura Charles Modern, ITC Franklin Gothic Std Xerox DC Fiery 560 Live 7” x 9.5” Production Kristy Colors SETUP Mech built at 100% Art Director Flo Cyan, Magenta, Yellow, Black CONTENT PERSONNEL Color(s) 4 Copywriter Marc Placed Graphics Varnish