The Final, Definitive Thread on Brokerage Transfer Bonuses

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BashDash
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by BashDash » Fri Oct 19, 2018 1:21 pm

I love this thread. It motivated me to get a opening bonus for my smallish Merril Edge taxable account and then two retention bonuses. A couple Quick questions:

For those who take advantage of brokerage/ bank account bonuses
1) how much time do you find it taking to do so per month?

2) Do you have a spread sheet to stay organized? What do you include on your spreadsheet?

3) Roughly how much money can be made per year with a decent amount of effort?


I have a oversized emergency fund (dont ask why 165k) that I feel I could spread out to make a decent sum of money. Quite often I get mail at home offering 300-400$ for a new bank account and they dont seem to have many hoops to jump through. Direct deposit would be a pain to consistently change I'm sure. I dont have a ton of free time due to family life but occassionally I have some time before pickups etc to maintain a project like this. Thanks in advance and I'm hoping this is the right place for this post rather than starting a new one.

Ron Ronnerson
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by Ron Ronnerson » Sat Oct 20, 2018 1:18 am

BashDash wrote:
Fri Oct 19, 2018 1:21 pm
I love this thread. It motivated me to get a opening bonus for my smallish Merril Edge taxable account and then two retention bonuses. A couple Quick questions:

For those who take advantage of brokerage/ bank account bonuses
1) how much time do you find it taking to do so per month?

2) Do you have a spread sheet to stay organized? What do you include on your spreadsheet?

3) Roughly how much money can be made per year with a decent amount of effort?


I have a oversized emergency fund (dont ask why 165k) that I feel I could spread out to make a decent sum of money. Quite often I get mail at home offering 300-400$ for a new bank account and they dont seem to have many hoops to jump through. Direct deposit would be a pain to consistently change I'm sure. I dont have a ton of free time due to family life but occassionally I have some time before pickups etc to maintain a project like this. Thanks in advance and I'm hoping this is the right place for this post rather than starting a new one.
1) I spend a few hours per month browsing through offers, opening accounts, transferring funds, maintaining a spreadsheet, ensuring that I've met all the requirements for the bonus, etc.

2) Yes. I have three sections on the spreadsheet. They are for 1) credit cards, 2) checking/savings accounts, and 3) brokerage accounts. Columns are: name of bank, amount of bonus, date opened, date closed (or when to close), notes (for things like if there is an early closure fee), and when to reapply for the account. Open accounts are in black font and closed are in red.

3) We (wife and I) have earned around $10k/year in points, miles, and cash in each of the past three years. This is mostly through bonuses but does include points generated through regular spending and interest earned on our savings.

In my opinion, credit card bonuses tend to be the easiest and relatively lucrative. Brokerage bonuses will depend on how much you're transferring. Bank bonuses vary considerably in their terms (the hoops you have to jump through and the amount of the bonus) but tend to require more work for less money. There is no tax to pay on some bonuses (ex.: Roth IRA transfers and credit cards) while other bonuses are taxed.

Additional accounts add complexity and there is work required to open accounts, meet the requirements to earn the bonuses, close accounts, keep track of accounts, etc. It's not really "free money." You have to decide for yourself if it's worthwhile for you. Personally, I think the pay rate is quite good for work that isn't too tough. However, a couple of people I know who have tried earning bonuses by opening accounts found it is too much trouble for their liking and have given up on doing it. If you're organized and willing to move money around, you should be able to earn at least a few thousand dollars per year.

In the past month, we have opened two checking accounts at Citi Bank, two business checking accounts at Wells Fargo, a savings account at Capital One, and partially transferred our two Roth IRA accounts from TD Ameritrade to Merrill Edge. I found the bonuses too tempting to pass up.

Mike14
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by Mike14 » Sat Oct 20, 2018 5:35 pm

drk wrote:
Fri Oct 19, 2018 10:07 am
Fidelity liquidated the assets for a transfer and kept $50
Do you know what the $50 was for? I don't see Fidelity charging any transfer fees.

Mike14
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by Mike14 » Sat Oct 20, 2018 5:39 pm

snowman wrote:
Fri Oct 19, 2018 11:32 am
I am moving out in less than 3 months anyway (which will be next month)
Keep us posted how the process continues.

Mike14
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by Mike14 » Sat Oct 20, 2018 5:43 pm

Ron Ronnerson wrote:
Sat Oct 20, 2018 1:18 am
transferred our two Roth IRA accounts from TD Ameritrade to Merrill Edge.
Were you a legacy TD Ameritrade customer where they waived the transfer fee?
Otherwise, how were the transfer fees charged?

Outafter20
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by Outafter20 » Sat Oct 20, 2018 5:56 pm

Mike14 wrote:
Sat Oct 20, 2018 5:43 pm
Ron Ronnerson wrote:
Sat Oct 20, 2018 1:18 am
transferred our two Roth IRA accounts from TD Ameritrade to Merrill Edge.
Were you a legacy TD Ameritrade customer where they waived the transfer fee?
Otherwise, how were the transfer fees charged?
TD Ameritrade, if you were an APEX customer, used to waive the transfer fees. My wife transferred her IRA from TD Ameritrade to Vanguard in July 2017 and there was no transfer fee.

drk
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by drk » Sat Oct 20, 2018 6:48 pm

Mike14 wrote:
Sat Oct 20, 2018 5:35 pm
Do you know what the $50 was for? I don't see Fidelity charging any transfer fees.
It was an IRA closeout fee. Judging by their pricing information, they've stopped charging that, so kudos to them.

Ron Ronnerson
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by Ron Ronnerson » Sat Oct 20, 2018 6:53 pm

Mike14 wrote:
Sat Oct 20, 2018 5:43 pm
Ron Ronnerson wrote:
Sat Oct 20, 2018 1:18 am
transferred our two Roth IRA accounts from TD Ameritrade to Merrill Edge.
Were you a legacy TD Ameritrade customer where they waived the transfer fee?
Otherwise, how were the transfer fees charged?
Before I initiated the transfer to Merrill Edge, I called TD Ameritrade and asked them if they could offer a retention bonus. They said they'd have to check with their back office. They called me the next day and said they aren't offering retention bonuses. I explain that I would be transferring funds out in that case and asked them how much they charge for doing that. I was told it is $75 for full transfers and no charge for partial transfers. We did partial transfers for both our Roth IRA accounts.

Their fees are listed here also (scroll to the bottom for the section on transfers): https://www.tdameritrade.com/pricing/br ... -fees.page

We left about $30k in each of our TDA Roth IRA accounts. My wife and I will transfer most of that to E-Trade soon for another bonus of $250 each.

Then, in 6 months, we'll start consolidating again to hopefully collect more bonuses.

Last year, we transferred our Roth IRAs fully from Scottrade to TD Ameritrade before their merger. Scottrade charged a fee of $75 per account for the full transfer. I printed out the Scottrade statements showing the fee being charged and faxed it to TD Ameritrade along with a note asking for reimbursement. We were reimbursed about a week or two later.

The year before that we transferred from Capital One to Scottrade and prior to that that we transferred from Scottrade to Capital One. We haven't had to pay any fees. Either they are reimbursed or not charged.

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Earl Lemongrab
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by Earl Lemongrab » Sat Oct 20, 2018 7:15 pm

Apex at TDA is one of those things you need to ask to be enrolled in, it doesn't happen automatically when you hit 100k. It's also per account, not overall. However, I think once you get it then you have Apex on that account regardless of level.
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

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Earl Lemongrab
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by Earl Lemongrab » Sat Oct 20, 2018 7:18 pm

BashDash wrote:
Fri Oct 19, 2018 1:21 pm
I love this thread. It motivated me to get a opening bonus for my smallish Merril Edge taxable account and then two retention bonuses.
I've been very pleased at how well it's worked out. Lots of good back-and-forth with tips and experiences. The goal was to get more people aware of the bonuses and (selfishly) to find out about ones that don't show up on the usual sources.
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

Agamede
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by Agamede » Sat Oct 20, 2018 7:35 pm

I am transferring my Roth IRA from Vanguard to Merrill Edge to take advantage of the transfer bonus and qualify for Platinum rewards. Currently, my Vanguard Roth is invested in three Admiral index mutual funds, and I intend to (somewhere along the line) switch to equivalent ETFs to ensure free trades at Merrill Edge.

My question is: what, if anything, do I need to do with my Vanguard investments before the transfer takes place? Sell everything and transfer in cash? Somehow exchange the mutual funds for ETFs? I understand this is possible, but don't see a button online to click. I'm willing to call customer service, but I'm not sure if I should be calling Vanguard or Merrill Edge. Any advice is appreciated!

Nate79
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by Nate79 » Sat Oct 20, 2018 7:53 pm

Agamede wrote:
Sat Oct 20, 2018 7:35 pm
I am transferring my Roth IRA from Vanguard to Merrill Edge to take advantage of the transfer bonus and qualify for Platinum rewards. Currently, my Vanguard Roth is invested in three Admiral index mutual funds, and I intend to (somewhere along the line) switch to equivalent ETFs to ensure free trades at Merrill Edge.

My question is: what, if anything, do I need to do with my Vanguard investments before the transfer takes place? Sell everything and transfer in cash? Somehow exchange the mutual funds for ETFs? I understand this is possible, but don't see a button online to click. I'm willing to call customer service, but I'm not sure if I should be calling Vanguard or Merrill Edge. Any advice is appreciated!
You can call Vanguard and ask them to convert the funds to ETF. It's very simple.

SlowMovingInvestor
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by SlowMovingInvestor » Sat Oct 20, 2018 8:48 pm

Nate79 wrote:
Sat Oct 20, 2018 7:53 pm
Agamede wrote:
Sat Oct 20, 2018 7:35 pm
I am transferring my Roth IRA from Vanguard to Merrill Edge to take advantage of the transfer bonus and qualify for Platinum rewards. Currently, my Vanguard Roth is invested in three Admiral index mutual funds, and I intend to (somewhere along the line) switch to equivalent ETFs to ensure free trades at Merrill Edge.

My question is: what, if anything, do I need to do with my Vanguard investments before the transfer takes place? Sell everything and transfer in cash? Somehow exchange the mutual funds for ETFs? I understand this is possible, but don't see a button online to click. I'm willing to call customer service, but I'm not sure if I should be calling Vanguard or Merrill Edge. Any advice is appreciated!
You can call Vanguard and ask them to convert the funds to ETF. It's very simple.
But be sure to keep track of the cost basis before they do the conversion, and verify after. They screw cost basis up sometimes, so you have to let them know and they'll fix it.

Agamede
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by Agamede » Sat Oct 20, 2018 8:51 pm

SlowMovingInvestor wrote:
Sat Oct 20, 2018 8:48 pm
But be sure to keep track of the cost basis before they do the conversion, and verify after. They screw cost basis up sometimes, so you have to let them know and they'll fix it.
I don't think cost basis is a concern in a Roth IRA, but thanks all the same for the warning.

SlowMovingInvestor
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by SlowMovingInvestor » Sat Oct 20, 2018 9:10 pm

Agamede wrote:
Sat Oct 20, 2018 8:51 pm
SlowMovingInvestor wrote:
Sat Oct 20, 2018 8:48 pm
But be sure to keep track of the cost basis before they do the conversion, and verify after. They screw cost basis up sometimes, so you have to let them know and they'll fix it.
I don't think cost basis is a concern in a Roth IRA, but thanks all the same for the warning.
Oh, I didn't see that you were transferring a Roth IRA. Yes, cost basis is generally not a concern with a ROTH IRA.

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Earl Lemongrab
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by Earl Lemongrab » Sat Oct 20, 2018 11:13 pm

Yeah I would convert them to ETFs at Vanguard first. Then you aren't out of the market during the transfer.
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

Agamede
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by Agamede » Sun Oct 21, 2018 10:15 am

Earl Lemongrab wrote:
Sat Oct 20, 2018 11:13 pm
Yeah I would convert them to ETFs at Vanguard first. Then you aren't out of the market during the transfer.
Thank you all for the help! That's what I'll do.

Mike14
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by Mike14 » Sun Oct 21, 2018 10:32 pm

Ron Ronnerson wrote:
Sat Oct 20, 2018 6:53 pm
We left about $30k in each of our TDA Roth IRA accounts [...] in 6 months, we'll start consolidating again to hopefully collect more bonuses.
Will you be closing TDA before then, or do they allow bonuses even if you have the same account with already, e.g. your Roth IRA is still active, and you'll open a new Roth IRA with a new bonus?
Ron Ronnerson wrote:
Sat Oct 20, 2018 6:53 pm
We transferred our Roth IRAs fully from Scottrade to TD Ameritrade before their merger. Scottrade charged a fee of $75 per account for the full transfer.
How was the fee charged? Did they liquidate shares, or did you have cash positions they took it from, or did they make the account negative?
Ron Ronnerson wrote:
Sat Oct 20, 2018 6:53 pm
Either they are reimbursed or not charged.
I'm trying to figure out how the closeout fees are being charged, or if I have to transfer in cash, and let them know not to liquidate shares, but take the cash instead etc.

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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by Ron Ronnerson » Mon Oct 22, 2018 12:35 am

Mike14 wrote:
Sun Oct 21, 2018 10:32 pm
Ron Ronnerson wrote:
Sat Oct 20, 2018 6:53 pm
We left about $30k in each of our TDA Roth IRA accounts [...] in 6 months, we'll start consolidating again to hopefully collect more bonuses.
Will you be closing TDA before then, or do they allow bonuses even if you have the same account with already, e.g. your Roth IRA is still active, and you'll open a new Roth IRA with a new bonus?
Ron Ronnerson wrote:
Sat Oct 20, 2018 6:53 pm
We transferred our Roth IRAs fully from Scottrade to TD Ameritrade before their merger. Scottrade charged a fee of $75 per account for the full transfer.
How was the fee charged? Did they liquidate shares, or did you have cash positions they took it from, or did they make the account negative?
Ron Ronnerson wrote:
Sat Oct 20, 2018 6:53 pm
Either they are reimbursed or not charged.
I'm trying to figure out how the closeout fees are being charged, or if I have to transfer in cash, and let them know not to liquidate shares, but take the cash instead etc.
I don't have plans at this time to close TDA. If they offer a bonus to bring the assets back to them, I'll do so. Otherwise, I may look to initiate a transfer elsewhere in a few months. My hope is that a new Roth account doesn't need to be opened and that I can just transfer the money back to the same account I transferred out of and still qualify for a bonus.

I honestly don't recall where the $75 fee charged by Scottrade came from. I think I had a cash balance and assume they took it from there but am not positive. I would just call the brokerage and ask what their policy is regarding this. Sometimes, they give a retention bonus if you stay with them so the phone call might be worthwhile for that reason too.

BashDash
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by BashDash » Mon Oct 22, 2018 8:20 am

"1) I spend a few hours per month browsing through offers, opening accounts, transferring funds, maintaining a spreadsheet, ensuring that I've met all the requirements for the bonus, etc.

2) Yes. I have three sections on the spreadsheet. They are for 1) credit cards, 2) checking/savings accounts, and 3) brokerage accounts. Columns are: name of bank, amount of bonus, date opened, date closed (or when to close), notes (for things like if there is an early closure fee), and when to reapply for the account. Open accounts are in black font and closed are in red.

3) We (wife and I) have earned around $10k/year in points, miles, and cash in each of the past three years. This is mostly through bonuses but does include points generated through regular spending and interest earned on our savings.

In my opinion, credit card bonuses tend to be the easiest and relatively lucrative. Brokerage bonuses will depend on how much you're transferring. Bank bonuses vary considerably in their terms (the hoops you have to jump through and the amount of the bonus) but tend to require more work for less money. There is no tax to pay on some bonuses (ex.: Roth IRA transfers and credit cards) while other bonuses are taxed.

Additional accounts add complexity and there is work required to open accounts, meet the requirements to earn the bonuses, close accounts, keep track of accounts, etc. It's not really "free money." You have to decide for yourself if it's worthwhile for you. Personally, I think the pay rate is quite good for work that isn't too tough. However, a couple of people I know who have tried earning bonuses by opening accounts found it is too much trouble for their liking and have given up on doing it. If you're organized and willing to move money around, you should be able to earn at least a few thousand dollars per year.

In the past month, we have opened two checking accounts at Citi Bank, two business checking accounts at Wells Fargo, a savings account at Capital One, and partially transferred our two Roth IRA accounts from TD Ameritrade to Merrill Edge. I found the bonuses too tempting to pass up."






Thanks Ron Ronnerson for the help!! I will consider doing something similar and report back.

lisaneedsbraces
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by lisaneedsbraces » Mon Oct 22, 2018 7:06 pm

I have funds in a joint account at Vanguard and want to transfer them elsewhere for a bonus. Does the new account need to be titled with them same owners? Can I transfer them to an individual account?

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Earl Lemongrab
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by Earl Lemongrab » Mon Oct 22, 2018 7:20 pm

lisaneedsbraces wrote:
Mon Oct 22, 2018 7:06 pm
I have funds in a joint account at Vanguard and want to transfer them elsewhere for a bonus. Does the new account need to be titled with them same owners? Can I transfer them to an individual account?
Generally changing the name on the account, especially joint to individual, is a messy proposition. If nothing else, it's likely to require the dreaded signature guarantee. Why do you want to do that? Can you shift the account first at Vanguard perhaps?
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

lisaneedsbraces
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by lisaneedsbraces » Mon Oct 22, 2018 7:26 pm

Earl Lemongrab wrote:
Mon Oct 22, 2018 7:20 pm
lisaneedsbraces wrote:
Mon Oct 22, 2018 7:06 pm
I have funds in a joint account at Vanguard and want to transfer them elsewhere for a bonus. Does the new account need to be titled with them same owners? Can I transfer them to an individual account?
Generally changing the name on the account, especially joint to individual, is a messy proposition. If nothing else, it's likely to require the dreaded signature guarantee. Why do you want to do that? Can you shift the account first at Vanguard perhaps?
As an example, if $400k was available in a joint account, it could be split in to two $200k lots to qualify for a bonus that tops out at $200k. It may not be necessary, but I wanted to explore the option. You may be right in that taking care of the change in registration is probably best done at Vanguard prior to transferring it.

lisaneedsbraces
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by lisaneedsbraces » Mon Oct 22, 2018 7:36 pm

One more question: if I were to move a Traditional IRA and a Roth IRA to Merrill Edge, would the balances of the two accounts combine to qualify for a higher tier, or would a bonus be applied to each separately (or worse, to only one of them, as the current $900 offer is technically limited to 1 IRA and 1 CMA).

arf30
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by arf30 » Mon Oct 22, 2018 7:55 pm

When calling Vanguard to convert mutual funds to ETFs, is it possible to only convert a certain dollar amount, or will they convert the entire account?

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Earl Lemongrab
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by Earl Lemongrab » Mon Oct 22, 2018 11:42 pm

lisaneedsbraces wrote:
Mon Oct 22, 2018 7:26 pm
As an example, if $400k was available in a joint account, it could be split in to two $200k lots to qualify for a bonus that tops out at $200k. It may not be necessary, but I wanted to explore the option. You may be right in that taking care of the change in registration is probably best done at Vanguard prior to transferring it.
Are you trying to get bonuses at the same brokerage?
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

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Earl Lemongrab
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by Earl Lemongrab » Mon Oct 22, 2018 11:43 pm

lisaneedsbraces wrote:
Mon Oct 22, 2018 7:36 pm
One more question: if I were to move a Traditional IRA and a Roth IRA to Merrill Edge, would the balances of the two accounts combine to qualify for a higher tier, or would a bonus be applied to each separately (or worse, to only one of them, as the current $900 offer is technically limited to 1 IRA and 1 CMA).
You'd have to check, but usually they would consider thost to be separate. Worth asking.
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

SlowMovingInvestor
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by SlowMovingInvestor » Tue Oct 23, 2018 11:19 pm

arf30 wrote:
Mon Oct 22, 2018 7:55 pm
When calling Vanguard to convert mutual funds to ETFs, is it possible to only convert a certain dollar amount, or will they convert the entire account?
I think they can. If you're doing Specific ID, you may even be able to ask them to do specific lots.

But tell them exactly what you want them to do, make sure they understand it clearly, and verify after they do the conversion.

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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by neilpilot » Thu Oct 25, 2018 10:46 am

Ron Ronnerson wrote:
Sat Oct 20, 2018 6:53 pm

Last year, we transferred our Roth IRAs fully from Scottrade to TD Ameritrade before their merger.
I also planned an account transfer from Scottrade to TDA after the merger was announced but before it actually occurred. When I mentioned it to my Scottrade office manager, he initiated a generous retention bonus and I cancelled the transfer.

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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by Ron Ronnerson » Thu Oct 25, 2018 12:03 pm

neilpilot wrote:
Thu Oct 25, 2018 10:46 am
Ron Ronnerson wrote:
Sat Oct 20, 2018 6:53 pm

Last year, we transferred our Roth IRAs fully from Scottrade to TD Ameritrade before their merger.
I also planned an account transfer from Scottrade to TDA after the merger was announced but before it actually occurred. When I mentioned it to my Scottrade office manager, he initiated a generous retention bonus and I cancelled the transfer.
Yes, 2017 was nice due to the merger. We got the following bonuses last year:
$200 to transfer my Roth IRA from Scottrade to TDA
$500 to transfer wife's Roth IRA from Scottrade to TDA
$1300 retention bonus from Scottrade to not transfer a taxable brokerage account to TDA. TDA offered us $1200 for the transfer and Scottrade was willing to match them. I told Scottrade that I'd already filled out the paperwork for the transfer and asked for $1500 to stay. They countered with $1300 and I accepted. The account turned into a TDA account on its own a few months later when the merger occurred.
$1000 in referral bonuses from TDA for accounts opened with a balance of at least $3k. My wife referred me and I transferred my Roth. Then my wife referred me and I opened a brokerage account with $3k. My wife also referred my brother-in-law and sister, each of whom transferred their Roth accounts to TDA. Lastly, my mom opened a $3k taxable account at TDA with my wife making that referral as well. We collected $200 for each referral. All taxable accounts have since been closed.

This year, my wife and I have done partial transfers of our Roth IRA accounts from TDA to Merrill Edge and E-Trade and are expecting $1,250 in bonuses. I did call TDA before initiating the transfers but they said they're not offering retention bonuses for retirement accounts. Our money was transferred out recently. TDA called me yesterday and said they'd be willing to offer us a bonus to bring funds back. I told them to expect a call in 6-7 months.

A huge thanks to those who post about bonus offers on this thread and help spread the word. It is because of this thread that we learned about the offers and initiated the transfers.

SlowMovingInvestor
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by SlowMovingInvestor » Thu Oct 25, 2018 5:31 pm

Has anyone signed up for this offer ?

https://accounts.chase.com/consumer/ban ... ome_3/hero

if so, any experience with Chase's YouInvest product, transfer of securities to Chase etc. ?

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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by JBTX » Thu Oct 25, 2018 7:48 pm

Ron Ronnerson wrote:
Sat Oct 20, 2018 1:18 am
BashDash wrote:
Fri Oct 19, 2018 1:21 pm
I love this thread. It motivated me to get a opening bonus for my smallish Merril Edge taxable account and then two retention bonuses. A couple Quick questions:

For those who take advantage of brokerage/ bank account bonuses
1) how much time do you find it taking to do so per month?

2) Do you have a spread sheet to stay organized? What do you include on your spreadsheet?

3) Roughly how much money can be made per year with a decent amount of effort?


I have a oversized emergency fund (dont ask why 165k) that I feel I could spread out to make a decent sum of money. Quite often I get mail at home offering 300-400$ for a new bank account and they dont seem to have many hoops to jump through. Direct deposit would be a pain to consistently change I'm sure. I dont have a ton of free time due to family life but occassionally I have some time before pickups etc to maintain a project like this. Thanks in advance and I'm hoping this is the right place for this post rather than starting a new one.
1) I spend a few hours per month browsing through offers, opening accounts, transferring funds, maintaining a spreadsheet, ensuring that I've met all the requirements for the bonus, etc.

2) Yes. I have three sections on the spreadsheet. They are for 1) credit cards, 2) checking/savings accounts, and 3) brokerage accounts. Columns are: name of bank, amount of bonus, date opened, date closed (or when to close), notes (for things like if there is an early closure fee), and when to reapply for the account. Open accounts are in black font and closed are in red.

3) We (wife and I) have earned around $10k/year in points, miles, and cash in each of the past three years. This is mostly through bonuses but does include points generated through regular spending and interest earned on our savings.

In my opinion, credit card bonuses tend to be the easiest and relatively lucrative. Brokerage bonuses will depend on how much you're transferring. Bank bonuses vary considerably in their terms (the hoops you have to jump through and the amount of the bonus) but tend to require more work for less money. There is no tax to pay on some bonuses (ex.: Roth IRA transfers and credit cards) while other bonuses are taxed.

Additional accounts add complexity and there is work required to open accounts, meet the requirements to earn the bonuses, close accounts, keep track of accounts, etc. It's not really "free money." You have to decide for yourself if it's worthwhile for you. Personally, I think the pay rate is quite good for work that isn't too tough. However, a couple of people I know who have tried earning bonuses by opening accounts found it is too much trouble for their liking and have given up on doing it. If you're organized and willing to move money around, you should be able to earn at least a few thousand dollars per year.

In the past month, we have opened two checking accounts at Citi Bank, two business checking accounts at Wells Fargo, a savings account at Capital One, and partially transferred our two Roth IRA accounts from TD Ameritrade to Merrill Edge. I found the bonuses too tempting to pass up.
Maybe a bit off topic, but how do you determine when to close an account?

For credit cards, if there is an annual fee that can't be avoided, then obviously close it. If they allow you to transfer to a no fee card, do you do that or close the account? Do you generally have to close the account to get another bonus down the road? How long do you usually wait to hit the same card again?

And what about bank accounts. Do you close them once the bonus claw back period is over? When do you reapply?

Finally I haven't done brokerage accounts yet but I may take advantage of the merrill edge one. When do you close those?

Ron Ronnerson
Posts: 986
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Location: Bay Area

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by Ron Ronnerson » Thu Oct 25, 2018 9:32 pm

JBTX wrote:
Thu Oct 25, 2018 7:48 pm
Ron Ronnerson wrote:
Sat Oct 20, 2018 1:18 am
BashDash wrote:
Fri Oct 19, 2018 1:21 pm
I love this thread. It motivated me to get a opening bonus for my smallish Merril Edge taxable account and then two retention bonuses. A couple Quick questions:

For those who take advantage of brokerage/ bank account bonuses
1) how much time do you find it taking to do so per month?

2) Do you have a spread sheet to stay organized? What do you include on your spreadsheet?

3) Roughly how much money can be made per year with a decent amount of effort?


I have a oversized emergency fund (dont ask why 165k) that I feel I could spread out to make a decent sum of money. Quite often I get mail at home offering 300-400$ for a new bank account and they dont seem to have many hoops to jump through. Direct deposit would be a pain to consistently change I'm sure. I dont have a ton of free time due to family life but occassionally I have some time before pickups etc to maintain a project like this. Thanks in advance and I'm hoping this is the right place for this post rather than starting a new one.
1) I spend a few hours per month browsing through offers, opening accounts, transferring funds, maintaining a spreadsheet, ensuring that I've met all the requirements for the bonus, etc.

2) Yes. I have three sections on the spreadsheet. They are for 1) credit cards, 2) checking/savings accounts, and 3) brokerage accounts. Columns are: name of bank, amount of bonus, date opened, date closed (or when to close), notes (for things like if there is an early closure fee), and when to reapply for the account. Open accounts are in black font and closed are in red.

3) We (wife and I) have earned around $10k/year in points, miles, and cash in each of the past three years. This is mostly through bonuses but does include points generated through regular spending and interest earned on our savings.

In my opinion, credit card bonuses tend to be the easiest and relatively lucrative. Brokerage bonuses will depend on how much you're transferring. Bank bonuses vary considerably in their terms (the hoops you have to jump through and the amount of the bonus) but tend to require more work for less money. There is no tax to pay on some bonuses (ex.: Roth IRA transfers and credit cards) while other bonuses are taxed.

Additional accounts add complexity and there is work required to open accounts, meet the requirements to earn the bonuses, close accounts, keep track of accounts, etc. It's not really "free money." You have to decide for yourself if it's worthwhile for you. Personally, I think the pay rate is quite good for work that isn't too tough. However, a couple of people I know who have tried earning bonuses by opening accounts found it is too much trouble for their liking and have given up on doing it. If you're organized and willing to move money around, you should be able to earn at least a few thousand dollars per year.

In the past month, we have opened two checking accounts at Citi Bank, two business checking accounts at Wells Fargo, a savings account at Capital One, and partially transferred our two Roth IRA accounts from TD Ameritrade to Merrill Edge. I found the bonuses too tempting to pass up.
Maybe a bit off topic, but how do you determine when to close an account?

For credit cards, if there is an annual fee that can't be avoided, then obviously close it. If they allow you to transfer to a no fee card, do you do that or close the account? Do you generally have to close the account to get another bonus down the road? How long do you usually wait to hit the same card again?

And what about bank accounts. Do you close them once the bonus claw back period is over? When do you reapply?

Finally I haven't done brokerage accounts yet but I may take advantage of the merrill edge one. When do you close those?
Credit cards:
I typically close right before the 1 year mark, when the annual fee will hit. My wife did change a card to a no fee card once but we typically just close the account. The reason we close instead of downgrading is that we have focused on Chase credit cards and don't want to have so much available credit with them that it becomes an issue when trying to open accounts in the future. We have had to talk to their customer service in the past where they said they could approve us for a new account that we'd applied for but they would have to shift some of our credit line from another card. Generally, the account has to be closed to get another bonus on the same card in the future. The time period in between bonuses for the same card varies so reading the fine print is important. We are not heavy churners and usually apply for different cards. My wife did open a Chase United Explorer Card in 2013, closed it in 2016, and reapplied in 2017. That's not the norm for us, though.

We do have some cards with fees that we keep open - I'm fine with keeping them open if the rewards make it worth doing so. For example, we have an American Express Blue Cash Preferred Card that charges $95 a year. However, we get 6% back on grocery stores and 3% on gas. The cash back on groceries is high enough for us that it's worthwhile to keep the card. We also keep open a Chase Sapphire Reserve Card even though it has an annual fee of $450. There is a $300 annual credit on travel so the fee is effectively $150. However, there are enough other perks on this card that we find it worthwhile to keep open.

Bank Accounts:
I keep accounts open at least long enough that there are no claw-backs on the bonus. If there is no minimum time period to keep the account open, I still wait 6 months to close the account just to be nice. I tend to open accounts at different banks rather than go after bonuses from the same bank multiple times (there are exceptions sometimes to this, though). A few years back, we would apply for Chase checking and savings accounts every year, close them six months later, and reapply the following year. Now that we have accumulated so many Ultimate Rewards Points with Chase because of credit card bonuses, I don't do that any more. I don't want to be red-flagged and risk having all my accounts cancelled and all my points taken away.

Brokerage Bonuses:
I typically do full transfers from one brokerage to another for our Roth IRA accounts. There is no cost basis to worry about nor any taxes due. I usually do these about once a year. This year is different. I'm breaking my Roth IRA account into three pieces to collect two bonuses. I'm doing the same for my wife's account. There are no fees being charged by TD Ameritrade since it's a partial transfer only.

Our plan is to consolidate again in 6 months and get another bonus in the process. When I consolidate, I will probably close accounts at two of the places. There is usually a fee charged if there is a full transfer. The brokerage receiving the funds has always reimbursed us, though (they usually require a statement showing that a transfer-out fee was charged by the other brokerage).

The fine print just about always says how long the account must be kept open in order to keep the bonus. Some offers say 3 months, some say 6 months, and some say a year.

SlowMovingInvestor
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by SlowMovingInvestor » Fri Oct 26, 2018 7:46 am

Ron Ronnerson wrote:
Thu Oct 25, 2018 9:32 pm

Bank Accounts:
I keep accounts open at least long enough that there are no claw-backs on the bonus. If there is no minimum time period to keep the account open, I still wait 6 months to close the account just to be nice. I tend to open accounts at different banks rather than go after bonuses from the same bank multiple times (there are exceptions sometimes to this, though).
I typically downgrade bank accounts to the lowest balance account that doesn't require a fee, then close it after a while.

Citi accounts, I tend to close pretty quickly because their interest rates are lousy, and they take really *long* to deposit the bonus even after the qualification period is ended.

b0B
Posts: 208
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by b0B » Fri Oct 26, 2018 10:51 am

.
Last edited by b0B on Sat Oct 27, 2018 12:51 pm, edited 1 time in total.

JBTX
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by JBTX » Fri Oct 26, 2018 8:28 pm

Ron Ronnerson wrote:
Thu Oct 25, 2018 9:32 pm
JBTX wrote:
Thu Oct 25, 2018 7:48 pm
Ron Ronnerson wrote:
Sat Oct 20, 2018 1:18 am
BashDash wrote:
Fri Oct 19, 2018 1:21 pm
I love this thread. It motivated me to get a opening bonus for my smallish Merril Edge taxable account and then two retention bonuses. A couple Quick questions:

For those who take advantage of brokerage/ bank account bonuses
1) how much time do you find it taking to do so per month?

2) Do you have a spread sheet to stay organized? What do you include on your spreadsheet?

3) Roughly how much money can be made per year with a decent amount of effort?


I have a oversized emergency fund (dont ask why 165k) that I feel I could spread out to make a decent sum of money. Quite often I get mail at home offering 300-400$ for a new bank account and they dont seem to have many hoops to jump through. Direct deposit would be a pain to consistently change I'm sure. I dont have a ton of free time due to family life but occassionally I have some time before pickups etc to maintain a project like this. Thanks in advance and I'm hoping this is the right place for this post rather than starting a new one.
1) I spend a few hours per month browsing through offers, opening accounts, transferring funds, maintaining a spreadsheet, ensuring that I've met all the requirements for the bonus, etc.

2) Yes. I have three sections on the spreadsheet. They are for 1) credit cards, 2) checking/savings accounts, and 3) brokerage accounts. Columns are: name of bank, amount of bonus, date opened, date closed (or when to close), notes (for things like if there is an early closure fee), and when to reapply for the account. Open accounts are in black font and closed are in red.

3) We (wife and I) have earned around $10k/year in points, miles, and cash in each of the past three years. This is mostly through bonuses but does include points generated through regular spending and interest earned on our savings.

In my opinion, credit card bonuses tend to be the easiest and relatively lucrative. Brokerage bonuses will depend on how much you're transferring. Bank bonuses vary considerably in their terms (the hoops you have to jump through and the amount of the bonus) but tend to require more work for less money. There is no tax to pay on some bonuses (ex.: Roth IRA transfers and credit cards) while other bonuses are taxed.

Additional accounts add complexity and there is work required to open accounts, meet the requirements to earn the bonuses, close accounts, keep track of accounts, etc. It's not really "free money." You have to decide for yourself if it's worthwhile for you. Personally, I think the pay rate is quite good for work that isn't too tough. However, a couple of people I know who have tried earning bonuses by opening accounts found it is too much trouble for their liking and have given up on doing it. If you're organized and willing to move money around, you should be able to earn at least a few thousand dollars per year.

In the past month, we have opened two checking accounts at Citi Bank, two business checking accounts at Wells Fargo, a savings account at Capital One, and partially transferred our two Roth IRA accounts from TD Ameritrade to Merrill Edge. I found the bonuses too tempting to pass up.
Maybe a bit off topic, but how do you determine when to close an account?

For credit cards, if there is an annual fee that can't be avoided, then obviously close it. If they allow you to transfer to a no fee card, do you do that or close the account? Do you generally have to close the account to get another bonus down the road? How long do you usually wait to hit the same card again?

And what about bank accounts. Do you close them once the bonus claw back period is over? When do you reapply?

Finally I haven't done brokerage accounts yet but I may take advantage of the merrill edge one. When do you close those?
Credit cards:
I typically close right before the 1 year mark, when the annual fee will hit. My wife did change a card to a no fee card once but we typically just close the account. The reason we close instead of downgrading is that we have focused on Chase credit cards and don't want to have so much available credit with them that it becomes an issue when trying to open accounts in the future. We have had to talk to their customer service in the past where they said they could approve us for a new account that we'd applied for but they would have to shift some of our credit line from another card. Generally, the account has to be closed to get another bonus on the same card in the future. The time period in between bonuses for the same card varies so reading the fine print is important. We are not heavy churners and usually apply for different cards. My wife did open a Chase United Explorer Card in 2013, closed it in 2016, and reapplied in 2017. That's not the norm for us, though.

We do have some cards with fees that we keep open - I'm fine with keeping them open if the rewards make it worth doing so. For example, we have an American Express Blue Cash Preferred Card that charges $95 a year. However, we get 6% back on grocery stores and 3% on gas. The cash back on groceries is high enough for us that it's worthwhile to keep the card. We also keep open a Chase Sapphire Reserve Card even though it has an annual fee of $450. There is a $300 annual credit on travel so the fee is effectively $150. However, there are enough other perks on this card that we find it worthwhile to keep open.

Bank Accounts:
I keep accounts open at least long enough that there are no claw-backs on the bonus. If there is no minimum time period to keep the account open, I still wait 6 months to close the account just to be nice. I tend to open accounts at different banks rather than go after bonuses from the same bank multiple times (there are exceptions sometimes to this, though). A few years back, we would apply for Chase checking and savings accounts every year, close them six months later, and reapply the following year. Now that we have accumulated so many Ultimate Rewards Points with Chase because of credit card bonuses, I don't do that any more. I don't want to be red-flagged and risk having all my accounts cancelled and all my points taken away.

Brokerage Bonuses:
I typically do full transfers from one brokerage to another for our Roth IRA accounts. There is no cost basis to worry about nor any taxes due. I usually do these about once a year. This year is different. I'm breaking my Roth IRA account into three pieces to collect two bonuses. I'm doing the same for my wife's account. There are no fees being charged by TD Ameritrade since it's a partial transfer only.

Our plan is to consolidate again in 6 months and get another bonus in the process. When I consolidate, I will probably close accounts at two of the places. There is usually a fee charged if there is a full transfer. The brokerage receiving the funds has always reimbursed us, though (they usually require a statement showing that a transfer-out fee was charged by the other brokerage).

The fine print just about always says how long the account must be kept open in order to keep the bonus. Some offers say 3 months, some say 6 months, and some say a year.
Thanks for the helpful info. I've been doing this for a little over a year now and I'm going to have to start to plan a little going forward.

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cookymonster
Posts: 196
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by cookymonster » Fri Oct 26, 2018 8:44 pm

SlowMovingInvestor wrote:
Thu Oct 25, 2018 5:31 pm
Has anyone signed up for this offer ?

https://accounts.chase.com/consumer/ban ... ome_3/hero

if so, any experience with Chase's YouInvest product, transfer of securities to Chase etc. ?
Hoping to generate more discussion about this. In particular was puzzled about this on the terms and conditions:
60,000 Ultimate Rewards points will be posted to the primary cardmember's account up to 45 days after qualifying for the offer. Credit card product changes during the promotional period or prior to the fulfillment of the bonus will forfeit this bonus offer. This offer is not transferable, and is subject to change. Chase credit cards are issued by Chase Bank USA, N.A.

The Ultimate Rewards bonus points transferred to you under the terms of the Program are considered miscellaneous income received from Chase, and may be reportable to you and the IRS on Form 1099-INT (or Form 1042-S, if applicable) for the year in which the points are posted to your account. You are responsible for any tax liability related to participating in the program. Please consult your tax advisor if you have any questions about your personal tax situation.
How can UR points be reported as income? Do they come up with some dollar value for 60k points? :confused
By this logic why are credit card bonus points not treated as taxable income?

FunnelCakeBob
Posts: 78
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by FunnelCakeBob » Fri Oct 26, 2018 8:58 pm

cookymonster wrote:
Fri Oct 26, 2018 8:44 pm

How can UR points be reported as income? Do they come up with some dollar value for 60k points? :confused
By this logic why are credit card bonus points not treated as taxable income?
You're missing the point that one offer comes from placing a deposit which does not involve spending or debt and the reward points are considered extra income, as would with earning interest. The other (via credit card offers) involves spending and the reward points are considered a rebate of fees and charges one would incur when taking on a debt. Thus when we earn points via credit card purchases, we are not taxed on those reward points. At least this is the current view in the tax world today.

I've heard that for the Sapphire Checking offer, each reward point is the equivalent of a penny and reported to the IRS as such. It'd be up to Chase to report based on redemption value structure of it's reward point program.

b0B
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by b0B » Fri Oct 26, 2018 9:10 pm

FunnelCakeBob wrote:
Fri Oct 26, 2018 8:58 pm
I've heard that for the Sapphire Checking offer, each reward point is the equivalent of a penny and reported to the IRS as such. It'd be up to Chase to report based on redemption value structure of it's reward point program.
Source? Why not 1.25c/URpt or 1.5c/URpt (reported to IRS)? Such things have happened before (e.g. Citi).

FunnelCakeBob
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by FunnelCakeBob » Fri Oct 26, 2018 9:24 pm

b0B wrote:
Fri Oct 26, 2018 9:10 pm
FunnelCakeBob wrote:
Fri Oct 26, 2018 8:58 pm
I've heard that for the Sapphire Checking offer, each reward point is the equivalent of a penny and reported to the IRS as such. It'd be up to Chase to report based on redemption value structure of it's reward point program.
Source? Why not 1.25c/URpt or 1.5c/URpt (reported to IRS)? Such things have happened before (e.g. Citi).
You are correct about Citi, and as I've said it's up to each institution to justify the value based on it's own reward point program. One point in one program may not garner the same value as one point in another. I don't have the source on Sapphire Chcking on the small screen but you're free to google.

b0B
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by b0B » Fri Oct 26, 2018 9:34 pm

FunnelCakeBob wrote:
Fri Oct 26, 2018 9:24 pm
b0B wrote:
Fri Oct 26, 2018 9:10 pm
FunnelCakeBob wrote:
Fri Oct 26, 2018 8:58 pm
I've heard that for the Sapphire Checking offer, each reward point is the equivalent of a penny and reported to the IRS as such. It'd be up to Chase to report based on redemption value structure of it's reward point program.
Source? Why not 1.25c/URpt or 1.5c/URpt (reported to IRS)? Such things have happened before (e.g. Citi).
You are correct about Citi, and as I've said it's up to each institution to justify the value based on it's own reward point program. One point in one program may not garner the same value as one point in another. I don't have the source on Sapphire Checking on the small screen but you're free to google.
How reliable was your source for the underlined statement?

Mike14
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by Mike14 » Fri Oct 26, 2018 11:12 pm

Ron Ronnerson wrote:
Thu Oct 25, 2018 12:03 pm
All [TDA] taxable accounts have since been closed.
Were you enrolled in Apex, or how did they charge the transfer fees?
Ron Ronnerson wrote:
Thu Oct 25, 2018 12:03 pm
TDA called me yesterday and said they'd be willing to offer us a bonus to bring funds back.
How did the retention offer compare to Merrill Edge's offer (I know you are getting both, but trying to figure out what they are offering).

Ron Ronnerson
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Location: Bay Area

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by Ron Ronnerson » Sat Oct 27, 2018 2:03 am

Mike14 wrote:
Fri Oct 26, 2018 11:12 pm
Ron Ronnerson wrote:
Thu Oct 25, 2018 12:03 pm
All [TDA] taxable accounts have since been closed.
Were you enrolled in Apex, or how did they charge the transfer fees?
Ron Ronnerson wrote:
Thu Oct 25, 2018 12:03 pm
TDA called me yesterday and said they'd be willing to offer us a bonus to bring funds back.
How did the retention offer compare to Merrill Edge's offer (I know you are getting both, but trying to figure out what they are offering).
TDA didn't charge a fee for closing the accounts. Instead of transfers, we sold all the investments and took cash. The taxable accounts were opened with only $3k in each account and grew by a few hundred dollars over the time that we held them (which was a little over a year). We will have to pay long-term capital gains tax on the growth, which in our case is 0%.

TDA didn't offer a retention bonus for the Roth accounts we've transferred to Merrill Edge. I actually called TDA before initiating the transfer to check if they could offer a retention bonus but didn't have luck - they told me they're not offering retention bonuses on retirement accounts. I only received a call from them once the transfer had already gone through. At that point, they asked if I'd be willing to bring money back in the future and they said they could offer a bonus. I didn't ask them the amount they would offer since my plan is to keep the funds at Merrill Edge for 6 months at this point. After the time is up, I'll see who is offering the best bonus.

SlowMovingInvestor
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by SlowMovingInvestor » Sat Oct 27, 2018 7:19 am

FunnelCakeBob wrote:
Fri Oct 26, 2018 8:58 pm
cookymonster wrote:
Fri Oct 26, 2018 8:44 pm

How can UR points be reported as income? Do they come up with some dollar value for 60k points? :confused
By this logic why are credit card bonus points not treated as taxable income?
You're missing the point that one offer comes from placing a deposit which does not involve spending or debt and the reward points are considered extra income, as would with earning interest. The other (via credit card offers) involves spending and the reward points are considered a rebate of fees and charges one would incur when taking on a debt. Thus when we earn points via credit card purchases, we are not taxed on those reward points. At least this is the current view in the tax world today.

I've heard that for the Sapphire Checking offer, each reward point is the equivalent of a penny and reported to the IRS as such. It'd be up to Chase to report based on redemption value structure of it's reward point program.
Yet, Barclays hands out AA miles for just one purchase (even $1) on its credit card (with no 1099).

And even more analogous to the AA situation, BankDirect gives out AA miles for their bank accounts (with no 1099).

I suppose it's up to each institution to make it's own determination on whether a 1099 should be sent or not. I think Chase is offering $750 instead of 60K URs, so it would be reasonable to conclude that Chase values UR at $1.25/point.

I have a lot of URs now, but I redeem them for biz class international travel, so they are worth $2.5+ a point to me. I mgiht still go with the Chase offer if the logistics work out. No big hardship to move $75K in ETFs there.

drk
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by drk » Sat Oct 27, 2018 9:44 am

SlowMovingInvestor wrote:
Sat Oct 27, 2018 7:19 am
Yet, Barclays hands out AA miles for just one purchase (even $1) on its credit card (with no 1099).
Don't you have to pay the annual fee to get the miles?
SlowMovingInvestor wrote:
Sat Oct 27, 2018 7:19 am
And even more analogous to the AA situation, BankDirect gives out AA miles for their bank accounts (with no 1099).
How many miles do they offer? If I recall, banks aren't required to send a 1099 if they pay you less than $10 in interest. The IRS still wants you to report it as income, though.

SlowMovingInvestor
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by SlowMovingInvestor » Sat Oct 27, 2018 9:55 am

drk wrote:
Sat Oct 27, 2018 9:44 am
SlowMovingInvestor wrote:
Sat Oct 27, 2018 7:19 am
Yet, Barclays hands out AA miles for just one purchase (even $1) on its credit card (with no 1099).
Don't you have to pay the annual fee to get the miles?
SlowMovingInvestor wrote:
Sat Oct 27, 2018 7:19 am
And even more analogous to the AA situation, BankDirect gives out AA miles for their bank accounts (with no 1099).
How many miles do they offer? If I recall, banks aren't required to send a 1099 if they pay you less than $10 in interest. The IRS still wants you to report it as income, though.
Yes, you have to pay an annual fee to Barclays to get the AA miles. Below the value of the miles for sure (they give 40K miles signup for Aviator card).

BankDirect gives 60K miles for $50K deposit for one year (accounts fees for one year would be $144). Beyond $50K, the mileage drops off, although I think a few years back, they would give miles at that rate upto $250K.

b0B
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by b0B » Sat Oct 27, 2018 12:52 pm

I've started doing these recently - small amounts, $25k-$100k (since most of my assets are not in taxable or IRA), but enough to get Merrill Edge Preferred Rewards.

How much can you bounce back and forth between two brokerages without getting flagged? For example Merrill Edge has a 3 (or 6) month holding period, and ETrade has a 6 month holding period, so (adding a little time) you can do a round trip in about a year (and keep assets in Merrill Edge long enough to keep qualifying for Preferred Rewards - you don't need the assets year-round). I've done 1-1.5 round trips like this, but sometimes glitches happen that make it look like they're making it hard to do. If it happens automatically online, then all is well, but once a human's eyes get on it, it must be so obvious what I'm doing. Don't these places get sick of it and do something, especially when I take out assets and bring them back a few months later?

(Due to getting Preferred Rewards renewed yearly, and due to other brokerages having longer holding times, e.g. 1 year, I can only use Merrill Edge and ETrade for this, so I can't bounce around other brokerages to "mix things up".)

FunnelCakeBob
Posts: 78
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Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by FunnelCakeBob » Sat Oct 27, 2018 4:24 pm

SlowMovingInvestor wrote:
Sat Oct 27, 2018 7:19 am

Yet, Barclays hands out AA miles for just one purchase (even $1) on its credit card (with no 1099).

And even more analogous to the AA situation, BankDirect gives out AA miles for their bank accounts (with no 1099).

I suppose it's up to each institution to make it's own determination on whether a 1099 should be sent or not. I think Chase is offering $750 instead of 60K URs, so it would be reasonable to conclude that Chase values UR at $1.25/point.

I have a lot of URs now, but I redeem them for biz class international travel, so they are worth $2.5+ a point to me. I mgiht still go with the Chase offer if the logistics work out. No big hardship to move $75K in ETFs there.
I remember Citi did a credit card promotion about 5 yrs ago that gave out reward points without requiring any spending. Under the promotion, you could open an account and automatically receive the points. Since there was no spending requirement or threshold, the reward points were considered income and reported on 1099. That caught a lot of customers off guard. Additionally, Citi did not equate 1 point to 1 cent under its reward program so the dollar amount on the 1099 created further angst and confusion.

By the way, is the $750 Sapphire Checking offer targeted to specific customers or a direct cash bonus offer? So far, I've only seen the 60k point offer, which perhaps would convert to $750 cash or travel reward under the Chase UR program.

b0B wrote:
Fri Oct 26, 2018 9:34 pm
How reliable was your source for the underlined statement?
I haven't been able to track down the source. My recollection is it was a finance-related blog. Not a news article or directly from Chase. So take some caution in the wind with that statement. If anyone here has spoken directly with a Chase, hope we can get it confirmed.

SlowMovingInvestor
Posts: 887
Joined: Sun Sep 11, 2016 11:27 am

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by SlowMovingInvestor » Sat Oct 27, 2018 5:27 pm

FunnelCakeBob wrote:
Sat Oct 27, 2018 4:24 pm
SlowMovingInvestor wrote:
Sat Oct 27, 2018 7:19 am
I suppose it's up to each institution to make it's own determination on whether a 1099 should be sent or not. I think Chase is offering $750 instead of 60K URs, so it would be reasonable to conclude that Chase values UR at $1.25/point.

I have a lot of URs now, but I redeem them for biz class international travel, so they are worth $2.5+ a point to me. I mgiht still go with the Chase offer if the logistics work out. No big hardship to move $75K in ETFs there.

By the way, is the $750 Sapphire Checking offer targeted to specific customers or a direct cash bonus offer? So far, I've only seen the 60k point offer, which perhaps would convert to $750 cash or travel reward under the Chase UR program.
[ I meant 1.25 cents/point above :)]

Yes, it is a targeted offer, apparently

https://www.doctorofcredit.com/750-1250 ... e-sign-up/

I'm not sure calling Chase will help in getting an answer as to how much Chase's conversion rate for 1099s will be. The folks who decide the rate will likely be bean counters deep inside Chase and I doubt anyone in a branch will have the faintest idea. But 1.25 cents seems reasonable, and a fairly good value too for those who use URs well.

I apologize for 'polluting' this thread with credit card points rather than brokerage bonus discussion, but this particular offer seems to be relevant to brokerage transfers.

madbrain
Posts: 5127
Joined: Thu Jun 09, 2011 5:06 pm
Location: San Jose, California

Re: The Final, Definitive Thread on Brokerage Transfer Bonuses

Post by madbrain » Sat Oct 27, 2018 8:19 pm

FunnelCakeBob wrote:
Sat Oct 27, 2018 4:24 pm
By the way, is the $750 Sapphire Checking offer targeted to specific customers or a direct cash bonus offer? So far, I've only seen the 60k point offer, which perhaps would convert to $750 cash or travel reward under the Chase UR program.
I haven't seen this offer, but if you have the Chase Sapphire Reserve, 60k points are worth $900.

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