Brokerage firms and bonuses discussion

Brokerage firms and bonuses discussion
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Chase is running a promotion for new accounts for Sapphire checking accounts. You need $75,000 in new money for 60,000 points. See https://www.uscreditcardguide.com/chase-sapphire-checking-account/

However, they now have a brokerage arm (You Invest), and funds with them count. To me, this makes it a brokerage offer.

You can transfer in positions from other firms for the $75,000 and also avoid also the monthly fees. The funds need stay only 90 days so this can be a good deal, but they can reclaim the bonus if the account is closed in less than 6 months (so significant assets of $75,000 will probably have to be left there to avoid the $25 monthly fees on the checking account or one might choose to pay the fee for a few months). It is not clear whether downgrading the account would be regarded as closing it,.

It appears you must have a Chase Freedom or Sapphire card to sign up without visiting a branch.

Some blog discussion suggests you may be able to take a smaller bonus for a new checking account and then upgrade in the branch after some months.

One review says the new brokerage option is poor quality without specially trained representatives, but the commissions are low at $2.95 or free (for most new customers using this offer).

You Invest also appears to have a $200 cash offer for bringing in $25,000. This is a relatively high percentage (.8%), and may be attractive to one with fewer assets.

TDA rep told me she could get me Amazon credits for transferring assets into an existing account. She quoted $200 Amazon credits for $50k moved in, and $1200 Amazon for moving in $500k.
Question: anybody out there ever get Amazon credits from TDA and do they 1099 for them?

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Is it possible to roll over IRA from one brokerage firm to other brokerage firm and take advantage of bonus offers? Any restrictions on moving from one roll over IRA to other roll over IRA. BofA sent me $500 offer for roll over IRA.

We rolled over Roth IRAs from TDAmeritrade to Fidelity several years ago, but not to capture bonuses. I’m not sure about restrictions.

Yes, just double check with the bonus paying broker before you do it. Moving IRAs takes a bit more paperwork and takes a little longer, but no reason you can’t do it.

Also, check with your existing IRA broker to see if there is a fee for closing your IRA there. Some brokers charge a fee. Some brokers (for your new account) will reimburse you for the fee that the old broker charges.

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A TD Ameritrade IRA offer is at https://www.tdameritrade.com/client/retirementplanning/index.html.

The site gives details on how transfers work and terms. I do not see a reference to Amazon credits on this IRA offer. In general, I would take cash over credits (especially since I get 5% back by using a Amazon store card).

The rewards scale is:

"You earn
When you fund your retirement account with

$2,500
$1,000,000
or more

$1,200
$500K-
$999,999

$600
$250K-
$499,999

$300
$100K-
$249,999

$200
$50K-
$99,999

$100
$25K-
$49,999

Last week I signed up for this deal with TDA:
https://www.tdameritrade.com/offer/for90days/index.html

Note: The new account was not approved for margin, not sure why.
Maybe this account is not getting approved for margin due to a different margin-approved brokerage account (in the same exact name).

My plan is to close the old account and re-apply for margin with the new account.

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Yeah, I think they’re only supposed to give you one identical margin account, not sure why but some regulation probly. If one of them is large enough ($100-125k?), you could see about getting a “portfolio margin” account, which is basically the same as a regular one only better. I am pretty sure you can have that in addition to the other, although I’m not specifically sure about TDA.

And some brokers only charge a fee for a full account transfer, but not for partial transfers or for closing the account. So leave a penny and close the account later to avoid fees.

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In talking to Ameritrade it appears they offer now is for amazon cards, but it expires soon and transfer have to be completed by the deadline.
The representative said in his experience one offer was almost always available and he expected a new one of the traditional cash type, which I find more valuable both because it would take a while to spend large sums in gift cards, and because if I pay cash there I get 5% back with their store card

He did not mention the cash offer cited above with $1,000 for $250,000 (more generous than their usual offer).

From Money Hustler I learn Chase’s You Invest is now offering cash bonuses for new money at rates shown below. The percentages are more or less standard, but the required holding period is slightly greater than 90 days, making the increase in annual earnings more attractive.

The deal is especially attractive at $25,000 where their $200 is .8% of the investment, and on an annualized basis adds 3.2%. They limit you to one offer per year, so this would be most attractive to those with only $25,000 to move.

They also have a 60,000 Ultimate Rewards point offer which requires opening a Sapphire checking account also and a $75,000 total relationship. This may be more attractive to some, especially those who can use the points well, (worth $750 for travel. from their ad). This is labeled a banking offer, but I mention it here since investments are the optimal way to have a $75,000 relationship, and taking it blocks taking their brokerage offer.

“To be eligible for this offer, you must have a Chase Sapphire® or Chase Freedom® credit card that is open and not in default at the time of enrollment and at points fulfillment, and be the primary card member on the account.” There are also limitations to certain states. There is a early closing fee if the bank account is closed within 6 months, and keeping the account fee free ($25.00 per month) means keeping $75,000 relationship.
see https://www.hustlermoneyblog.com/chase-sapphire-checking-review/

They also offer 100 free trades.

Chase You Invest (cash) 625 250,000 3 0.25% 1.0000%
Chase You Invest (cash) 300 100,000 3 0.30% 1.2000%
Chase You Invest (cash) 200 25,000 3 0.80% 3.2000%

See https://www.hustlermoneyblog.com/chase-you-invest-review/

I had a bad experience with Chase You Invest. I was on the Chase website closing my checking account after they charged me a $20 monthly maintenance fee and they offered me a $600 bonus to transfer in $250K. I figured why not I will screw them out of the $600 to get even for them charging me the $20.

No sooner do I start the online application than it crashes after asking for my default email address. I try it again and it keeps crashing. So I give up. But the urge to screw them is deep so the next day I call them to complain about the application. The CSR says oh yeah we know about that error. It comes and goes so the only thing I can do is say to try it again. I ask whether he can take my application verbally and he says no. I do get him to enter an email address on my account.

I go back and try the application again and it fails again a few pages into the form. At that point I think about whether I want to give these guys $250K of my money after they cannot even create a decent web application so Igave up.

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BTW, the guy who started the Bogleheads broker bonus thread “Earl Lemongrab” was disappeared by the moderators there. Apparently he got into a disagreement with one of them and he suspended him. When he got back he posted a thread saying he was leaving and that was disappeared. People posted thanks to him on the broker bonus thread and those were disappeared too.

The moderating there is getting stifling and the discussions are getting trivial with endless threads debating international investing so I am out of there too.

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BH moderation has always been stifling, it’s just a question of whether it happens to something when you’re paying attention. Especially after you understand most of the financial aspects, the odds of an “interesting” thread getting nuked are not small. A small kinda recent sample.

https://www.bogleheads.org/forum/viewtopic.php?f=10&t=275832
https://www.bogleheads.org/forum/viewtopic.php?f=2&t=264898
https://www.bogleheads.org/forum/viewtopic.php?f=2&t=263257
https://www.bogleheads.org/forum/viewtopic.php?p=4195371

I also noticed a “Riches fo Rags” thread about your own or people you knew really blowing it financially got expunged entirely and not just locked. No cautionary tales allowed.

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