Re-Organizing Investments, Advice?

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Topic Author
Shael_AT
Posts: 49
Joined: Mon Jul 15, 2019 2:36 pm

Re-Organizing Investments, Advice?

Post by Shael_AT »

Hey everyone,

New registered member, long time (since 2011) reader.

We've recently made our first time home purchase and the mortgage is through Chase. Car loan was re-financed (bad first car decisions, oh to be young) from 18.99% to 2.95%, with Chase. We already have our credit cards, points and checking/savings in at Chase as well. I'm a private client as it is, but I float significant cash in and out due to my business - that is not part of my overall strategy, its separate from Emergency Fund and Et. All else. The only thing Not-Chase is our Retirement (Fidelity) and Brokerage/RothIRA/Rollovers (Vanguard).

I know, I know, why would I even bother? But hear me out.

We've read that Chase now has a YouInvest Portfolios product, which does 35 basis points for robo management (all up, discounts all BP off underlying assets). I've been tinkering around with this and the Moderate, Growth and Aggressive portfolios seem reasonable and comparable to my own investment makeup. The YouInvest product with no robo-management however is functionally the same as our vanguard account right now - Buy Mutual Fund every month, re-balance, rinse repeat.

YouInvest seem to support Traditional, Roth and Brokerage accounts - including a 529 as well.

Currently (across all accounts, Rollover 401ks, Roth IRA, HSA, etc. allocated for tax efficiency of course) at Fidelity

FXAIX Fidelity 500 Index Fund - Institutional Premium - 50
FSMDX Fidelity Mid Cap Index Fund - Institutional Premium - 10
FSSNX Fidelity Small Cap Index Fund - Institutional Premium - 10
FSPSX Fidelity International Index Fund - Institutional Premium - 15
FPADX Fidelity Emerging Markets Index Fund - Insitutional Premium - 15

Re-balanced annually. Contributed to monthly.

Questions:

I'm trying to gauge if its worth it to consolidate my accounts to a single login screen?

Has anyone had any experiences with JPMorgan YouInvest in general? *** It looks like I could purchase and do automated repeated auto-purchasing of each of my existing funds in YouInvest if I did this manually (opting out of robo-youinvest). ***

Finally, trying to make sure that I'm not walking into any "Gotcha's", and testing my own knee-jerk to "I CAN HAVE IT ALL IN. ONE. SCREEN!" -syndrome.
Last edited by Shael_AT on Thu Jul 02, 2020 11:58 am, edited 2 times in total.
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Tyler Aspect
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Re: Re-Organizing Investments, Advice?

Post by Tyler Aspect »

You might want to bump up your bond allocation by 10%, but it seemed you are managing your money perfectly well. There is no reason to increase annual expense ratio by 0.35% every year. The assets held under the robo account will probably have higher cost than the Vanguard equivalents. It is common for a robo portfolio to include a cash position that can further drag down performance long term. A "robo" account makes your investments less transparent which will work to your disadvantage in the long run.

Also keep in mind if you decide to stop a robo service you could end up with a very complicated portfolio that will take considerable effort to streamline.
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Watty
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Re: Re-Organizing Investments, Advice?

Post by Watty »

Shael_AT wrote: Mon Jul 15, 2019 2:54 pm I'm trying to gauge if its worth it to consolidate my accounts to a single login screen?
One thing to realize is that when you have multiple accounts with the same company is that they likely have a "right of offset"(Google this) that is buried in the fine print. This means that if there is a problem with one of your accounts then they can transfer money from one of your accounts without your permission to settle a different account.

For example if you have a credit card that is compromised and there is a fraudulent charge then you can dispute that with the credit card company. Occasionally they will not agree with you and will not reverse the charge. At that point they can decide to just transfer money from one of your other accounts to pay off the credit card. There are all sorts of permutations on how this can be a problem like if you are disabled and late on some payments and they decide to empty your checking account to bring some loan up to date.

I basically have three sets of companies that I use;
1) Financial institution, where all I have is my "serious money".
2) My local brick and mortar bank where I have a checking account, an ATM card, online bill pay, and nothing else.
3) Other places where I have credit cards, home equity line of credit, etc but no money.
dbr
Posts: 33842
Joined: Sun Mar 04, 2007 9:50 am

Re: Re-Organizing Investments, Advice?

Post by dbr »

I don't see you listing any good reason to donate 0.35% of your assets to a bank every year. If you can identify good reasons to spend that money for value, the fire away. Are you sure you won't have higher fund costs including turnover as well as published ERs?
Topic Author
Shael_AT
Posts: 49
Joined: Mon Jul 15, 2019 2:36 pm

Re: Re-Organizing Investments, Advice?

Post by Shael_AT »

Watty wrote: Mon Jul 15, 2019 10:08 pm
Shael_AT wrote: Mon Jul 15, 2019 2:54 pm I'm trying to gauge if its worth it to consolidate my accounts to a single login screen?
One thing to realize is that when you have multiple accounts with the same company is that they likely have a "right of offset"(Google this) that is buried in the fine print. This means that if there is a problem with one of your accounts then they can transfer money from one of your accounts without your permission to settle a different account.

For example if you have a credit card that is compromised and there is a fraudulent charge then you can dispute that with the credit card company. Occasionally they will not agree with you and will not reverse the charge. At that point they can decide to just transfer money from one of your other accounts to pay off the credit card. There are all sorts of permutations on how this can be a problem like if you are disabled and late on some payments and they decide to empty your checking account to bring some loan up to date.
Wait, what? I genuinely didn't know this was a thing. Very shady, big dislike button.

My decision is clear - keep my investments in Vanguard, CCs/Loans/Mortgage at chase, and primary funds in a HYSA + credit union.

Thank you for this
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