JP Morgan Private Client as IRA Brokerage

Gloobnib

Travel Burninator
I'm hoping someone has a little intel on JP Morgan. Specifically, I'm mulling over signing up as a Chase / JPM private client and rolling one of my IRAs over into JPM's brokerage to satisfy the $100K requirement for private client.

I've tried poking around JPM's site and there is a bunch of boring platitudes about how awesome their investment advice is (read: we wanna charge you for our advice). But does anyone know if I can use them as a simple brokerage account for my self-directed IRA? I'm a "buy index funds and hold them forever" investor, and for the life of me I can't find anything on their site about fee structure etc.

And yes, I know the easy answer is "call them", but believe me, I don't want to get on some money manager's radar as a high net-wealth individual unless I'm relatively certain I want to start down the road towards a relationship!

Why am I even thinking about this instead of sticking with a low cost brokerage? I already have a fairly extensive relationship with Chase (1st Mortgage, Car loan, checking account, as well as several rewards CCs) and have no complaints with them. I am also now subject to the 5/24 rule and am kind of missing all those awesome CC signup bonuses. Since Private Clients are supposed to be immune to 5/24, I figure this is an easy way to get back on that gravy train. If the fees are a wash and I can buy low cost ETFs, I figure this is worth about $2k-$4k to me each year in additional CC signups for me and my wife.

Any feedback is appreciated!
Gloob
 

ChiliPalmer

Look at me.
I was considering this with Citi to be a CitiGold without leaving cash in my checking account.

Short story is: I just can't get with these non-discount brokers. They are a very, very different world.
 

Gloobnib

Travel Burninator
You think Private Client opens up that much? I can't see it myself, maybe a card or two before the excuses come.
I did a little more reading/poking around and I now tend to agree with your assessment. All of the hoopla on "Chase PC exempts you from 5/24" seems to derive for a single data-point: all CPC customers are eligible (IE pre-approved) for a special 60K point CSP card offer. It is relatively clear that this special bonus is a published benefit of being a CPC member, which would explain why "5/24 doesn't apply". In reality it seems pretty clear to me that what is being reported in actually means "this CPC-only offer is given to all CPC members", and cannot be generalized out to "5/24 doesn't apply to CPC members".

Back to the original question - I did manage to find a few "reviews" of people who used JPM as a self-directed brokerage. The positives: 1) it can be done, and 2) self-directed trades are not egregiously over priced ($10/trade), but there are certainly cheaper options. The negatives: 1) the self-service website is the red-headed stepchild of JPM and it is obvious they don't put a lot of effort into it, 2) customer service is almost non-existent unless you are wanting to be "actively managed", and 3) they really don't value self-directed investors as valuable customers. As one of the reviewers put it (paraphrasing from memory) "There is zero info about self-directed investing on their website. You should take that as a hint that they don't want your business. Open an e-trade account instead".

So... if I had confidence that this would return me to a "pre 5/24 rule world", I think I would make a go of it because I truly was getting $2-4K / year in value from chase card churning. But given this is far from a sure thing, it actually just sounds like a massive hassle for one slightly-better-than-average signup bonus.

Gloob
 

Mountain Trader

Level 2 Member
I agree with Matt. I imagine being a 'Private Client' isn't just an objective line you cross that opens up endless CSP and Ink apps. My guess is that you are assigned to a specific banker who wants to help you and also has a goal in fees, etc., to meet. I'll be surprised if it turns out that just moving money to a passive index fund is what will do the trick.
 

Jedi

Level 2 Member
New Chase Private Client here with maybe 15 cards past year opened. After 3 months, very impressed. Been Chase client for 10 years and have CitiGold (8 months), BofA (3 months) as well as brokerage accounts. I am buy and hold ETF and some stock investor - maybe 10 trades a year focused on raising/investing cash as needed.

- Way better service, website (special for private client) than any other bank.
- Got approved Ink Plus no issue for both parent and me. Applied in branch for 70k, no fee. Only had to send Chase verification of EIN used (IRS letter) as follow up since new business. I expect more CC to come. Parent has 15 plus cards opened too past year. I have CSP, United and BA opened past 18 months, so this 4th Chase recent card. Parent has/had United Business/BA/Marriott/CSP so this 5th.
- I was turned down 2 Chase cards in April (too many inquiries), applied for Marriott and Hyatt before the 5/24 kicked in. Parent got the Marriott, turned down Hyatt.
- Did $500 business checking bonus for both parents and me.
- Private banker to email or talk has been helpful
- Was upfront and just transferred $250,000 of stocks/ETFs was not planning to trade - no problem, no hassle. Of course they want more business, but I think being upfront turned off any pressure from the investment advisor on staff who transferred the assets. Bankers no issue, in fact they probably make some $$ or get good marks with the CC sign ups.

I think this is gravy train and I know Greg at Frequent Miler agrees. If you have the assets and are fine self-directing, highly recommended.

Set good boundaries with the investment guy assigned to you and then I think will be golden.

Again, way better than CitGold or BofA Plat Honors.

Follow up - not only was parent approve for Chase Ink, but also approved for Hyatt - both apps same day. That is 6 Chase cards in 18 months plus numerous others.
 
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pointsaholic

Level 2 Member
Just became CPC on Friday after wiring funds to chase savings account. Have appointment to meet with banker on Monday to open Reserve. Was upfront with them that I cannot trade as I work for a competing brokerage firm and it is not allowed to trade outside the firm (for compliance reasons).

Hopefully Reserve will not be 5/24 initially and I won't need the special powers that CPC is alleged to provide.

If Reserve is subject to 5/24 we will see if CPC does anything. I am way over 5/24.

I don't plan to leave the funds with Chase very long.
 

Jedi

Level 2 Member
Anyone know if a 529 would do the trick here? For me, that would be easier than an IRA. Or real money.
529 Plans are sponsored by States, so you can only transfer to another state plan as far as I know. Investment advisory are hired by the state plans then to manage the money.
 

Matt

Administrator
Staff member
529 Plans are sponsored by States, so you can only transfer to another state plan as far as I know. Investment advisory are hired by the state plans then to manage the money.
You can custody a 529 plan at many different brokers, they transfer, I imagine they would work with Chase too.
 

Walmero

Level 2 Member
Just got a mailer for 50K UR for "upgrading" to CPC. Terms are 100K new money to Chase and maintain for 90 days. Anybody else get this? Any bright ideas about wrangling these funds temporarily to trigger bonus? Anybody follow up on Matt's idea to custody 529 plans, etc? Would be hard to hit this without liquidating a bunch of low cost ETFs, etc.
 

Matt

Administrator
Staff member
Just got a mailer for 50K UR for "upgrading" to CPC. Terms are 100K new money to Chase and maintain for 90 days. Anybody else get this? Any bright ideas about wrangling these funds temporarily to trigger bonus? Anybody follow up on Matt's idea to custody 529 plans, etc? Would be hard to hit this without liquidating a bunch of low cost ETFs, etc.
Shouldn't need to liquidate, ask them if they can ACAT in kind, without liquidation.
 

Walmero

Level 2 Member
Shouldn't need to liquidate, ask them if they can ACAT in kind, without liquidation.
This isn't only for individual stocks? I didn't know there was a way to somehow have CPC manage, say 200 shares of VFIAX? I thought all those vanguard or fidelity branded ETFs and mutual funds only "existed" within the confines of vanguard/fidelity. In other words, there would theoretically be no need to "convert" VFIAX into OGEAX or whatever? Sorry for the childlike naïveté.
 

Matt

Administrator
Staff member
This isn't only for individual stocks? I didn't know there was a way to somehow have CPC manage, say 200 shares of VFIAX? I thought all those vanguard or fidelity branded ETFs and mutual funds only "existed" within the confines of vanguard/fidelity. In other words, there would theoretically be no need to "convert" VFIAX into OGEAX or whatever? Sorry for the childlike naïveté.
Nope. Any custodian should be able to hold them. I use Vanguard funds at my custodian, TD Ameritrade Institutional.

There are certain, obscure funds that custodians may not be able to hold, but they are rare.

Just ask.. but I'm pretty sure you're good.
 

Zip

New Member
Just got a mailer for 50K UR for "upgrading" to CPC. Terms are 100K new money to Chase and maintain for 90 days. Anybody else get this? Any bright ideas about wrangling these funds temporarily to trigger bonus? Anybody follow up on Matt's idea to custody 529 plans, etc? Would be hard to hit this without liquidating a bunch of low cost ETFs, etc.
Are you sure it could be brokerage funds? My banker called offering a similar deal but said it had to be transferred to a savings account for 90 days. If it is maybe I'll try again.
 

gmenrule

Level 2 Member
Just got a mailer for 50K UR for "upgrading" to CPC. Terms are 100K new money to Chase and maintain for 90 days. Anybody else get this? Any bright ideas about wrangling these funds temporarily to trigger bonus? Anybody follow up on Matt's idea to custody 529 plans, etc? Would be hard to hit this without liquidating a bunch of low cost ETFs, etc.
walmero... I am interested but did not get a mailer...can you PM a photo to me so I can ask Chase...thanks
 

Walmero

Level 2 Member
Hi, so sorry, threw it in one of the desk piles; had been meaning to call them to inquire further. Of course after reading a bit more closely, I now realize it says "Begin your relationship with a deposit of at least 100k in new money to your upgraded checking account within 10 business days, and maintain at least 100k balance for 90 days".
So it is actually a straight up 50k UR bank bonus for converting your existing checking into a PC checking. I should have read more closely the first time, though I think the info Matt relayed is still interesting.
 

gmenrule

Level 2 Member
closest Chase Bank is 100 miles...50k UR for wife and me is worth the trip $200k for 100,000 ur...I guess Morgan Stanley isn't part of this deal?
 

Walmero

Level 2 Member
No, afraid not. It appears to be only for "upgrading" your checking account, none of the fine print says anything about investments. I guess they just want to get you in the front door so they can go to work on you! Looks like they don't even care if you have the 250k or whatever it used to be for Private Client...
 

lochquel

Level 2 Member
Back when CSR first came out, I went into a branch and scored a CSR. As the bankers were interested in what else they could do for me, I asked about CPC and requirements for getting in. The banker was vague and circumspect in his discussion with me about CPC and made it feel like it was a good ol' boys club for Richie Rich types. Not interested in my business other than to make it look like he cared. He did drop that Chase was exploring a discount brokerage play that was supposed to come out in 2017, but haven't heard anything about that since. That would be an interesting play if CPC was obtainable through a brokerage, ala BofA Preferred Rewards.

Interesting tidbit, but from this discussion, it appears even Chase isn't committing to defined standards for inclusion in the 'cool club'.
 
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