Re: The Final, Definitive Thread on Brokerage Transfer Bonuses
Posted: Fri Dec 21, 2018 11:35 am
Investing Advice Inspired by Jack Bogle
https://www.bogleheads.org/forum/
Thank you, neilpilot!neilpilot wrote: ↑Fri Dec 21, 2018 11:29 amME will include a bonus amount in a taxable account's 1099. There will be no 1099DIV or 1099INT for the IRA bonus.snowman wrote: ↑Fri Dec 21, 2018 10:48 am Quick question for those that transferred traditional IRA in the past and received the bonus: I assume there was NO 1099 from the broker since the amount is going to be taxed upon withdrawal - is that correct?
I am working on my projected taxes for 2018 and it's the first year I have ever done the bonus game. I contacted Merrill Edge and was told to speak with my CPA about taxes. When I asked again whether ME is going to mail me any form, the answer was "it shouldn't in tax-deferred account but confirm with your CPA". It makes no sense, so was hoping other BHs would know based on their experience, especially with ME.
Thanks!
Thanks, there does appear to be a "Enter offer code" and "Remove offer" option.MisterBill wrote: ↑Fri Dec 21, 2018 10:56 amDoes it really matter? The code LVEXPO18 is working on the Merrill Edge site. I just went to the initial "open an account" screen and it showed the promotion. Do you think they're going to verify that you actually attended?pre wrote: ↑Fri Dec 21, 2018 4:24 amHow very odd. The Traders Expo promo code appears to have disappeared, now displaying the earlier San Francisco money show expiring October 16, 2018hailstate wrote: ↑Wed Oct 31, 2018 12:51 pm The enhanced Merrill Edge offers are available again, until Jan 12, 2019:
https://www.merrilledge.com/offers/1000 ... ail_vanity
This offer appears to be limited to Traders Expo attendees. The Traders Expo is in Las Vegas from Nov 12-14. You can register for free here:
https://conferences.moneyshow.com/trade ... las-vegas/
All of that transfers with the shares. Purchase date, original cost, etc.Mike14 wrote: ↑Fri Dec 21, 2018 11:06 pm Did anybody run into problems with qualified dividend status if shares are transferred prior to holding them for 61 days?
For example: purchased Jan 1st, ex-dividend date Jan 2nd, fund transferred to another brokerage on Jan 3rd.
Will the original brokerage who paid out the dividend default to qualified status, or do I have to send them extra paper work, that the shares were held for 61 days?
It's difficult to tell what happened after the fact if the fund is not 100% qualified and pays out dividends quarterly.
I think I read somewhere that's a 2.5k annual limit.
Did you reach the $2,500 bonus, because I believe that's what their annual bonus limit is.
Finally got around to going to their branch to check this out. That's 15 minutes out of my life that I will not get back . After a sales pitch about features that are not at all useful to me or anyone else I can think of, the rep went out of the cubicle to call the powers that be about whether I could transfer in assets like T-bills to meet the bonus requirement. No go.dual wrote: ↑Fri Oct 19, 2018 1:44 am I just got a letter offering a $1250 bonus for doing the following
- Meet with a private client banker at your nearest branch with this letter to upgrade your account to chase private client
- Within 45 calendar days deposit a total of $250,000 or more in new money to a combination of eligible checking and/or savings accounts and maintain the balance for least 90 days
So it looks to me like I have to transfer in cash and can only put it into a savings account or CD.
- Your $1250 will be deposited into your account within 10 business days
I just checked and their savings account and three month CD rates are essentially zero. A three month treasury bill is paying about 2.25% and since it has no state tax here in California that works out to about 2.5% tax equivalent yield. So in 3 months I would miss out on about $1500 in interest on $250K.
Obviously a losing proposition with only a $1250 bonus.
What am I missing here?
Seems you have already fulfilled the offer terms, and can transfer funds and close the account if you like.jaypee wrote: ↑Wed Jan 02, 2019 12:23 pm I opened a Money Market 360 at Capital One in October (bonus offer "OFFER500"), funded it then and received the bonus today.
Can I just close the account now? Or do I have to leave it open for a period of time to avoid losing the bonus credited to the account?
Any bogleheads with a recent experience with that bonus?
Thank you in advance!
Jay
I would escalate this to the CFPB since this was not disclosed originally. Anyway, I would stay clear of Merrill Edge, they are the worst online broker I have ever used by far. Same for BofA with credit cards. The bonuses are not enough to make up for the headaches with these organizations.drk wrote: ↑Sat Dec 15, 2018 5:36 pm I was just denied a bonus for this reason. When I sent a message asking about the status, they replied letting me know that my bonus had been denied because I had already received one within the last 12 months. There was no indication when I opened the account (with the bonus code attached) that I was ineligible.
If you are lucky. If you end up having to do a share conversion before the transfer, for example from Admiral to Investor, those things may end up being lost. That ended up changing my cost basis from SpecID to average. After months of fighting with both Vanguard and Merrill Edge, I just gave up in trying to fix this. It was impossible to make up the per-lot basis from the old statements Vanguard provided, and they couldn't help. It may be this particular issue was with Vanguard and not Merill Edge, I will never know. As of now the funds have been transferred out of Merill Edge and I can probably never get it fixed. This cost me some TLH opportunities last year, much in excess of any bonus value.Earl Lemongrab wrote: ↑Fri Dec 21, 2018 11:21 pmAll of that transfers with the shares. Purchase date, original cost, etc.Mike14 wrote: ↑Fri Dec 21, 2018 11:06 pm Did anybody run into problems with qualified dividend status if shares are transferred prior to holding them for 61 days?
For example: purchased Jan 1st, ex-dividend date Jan 2nd, fund transferred to another brokerage on Jan 3rd.
Will the original brokerage who paid out the dividend default to qualified status, or do I have to send them extra paper work, that the shares were held for 61 days?
It's difficult to tell what happened after the fact if the fund is not 100% qualified and pays out dividends quarterly.
May I ask if you repeated the bonus offer with the same promotion/code? I've done several Money Show or elevated offers ($900/$1k at the $200k tier) in the same 12 months without issue. The lone time Merrill denied an offer was because I had accidentally done the same promo twice, causing the system to automatically deny me. My relationship manager offered to contest or escalate, but I didn't want to get too many eyes on my accounts.drk wrote: ↑Sat Dec 15, 2018 5:36 pmI was just denied a bonus for this reason. When I sent a message asking about the status, they replied letting me know that my bonus had been denied because I had already received one within the last 12 months. There was no indication when I opened the account (with the bonus code attached) that I was ineligible.b0B wrote: ↑Sat Dec 15, 2018 5:05 pm I saw this post in another thread regarding "Bank of America Merrill Edge Up to $900 Bonus for Preferred Rewards Clients"What is the evidence/datapoints about Merrill Edge looking back at previous bonus history, and denying based on that (and do they let you know they'll deny it, or do they just not pay you at the end of the holding period). Is this just a problem of human eyes falling upon the account, rather than some hard-coded software, or is it both?
Anyone have counterexamples, where you have gotten two CMA or two IRA bonuses within 12 months? (Mine have larger gaps.)
Different strokes. I've had excellent experiences with Edge, and reasonable with BofA.madbrain wrote: ↑Wed Jan 02, 2019 6:14 pm I would escalate this to the CFPB since this was not disclosed originally. Anyway, I would stay clear of Merrill Edge, they are the worst online broker I have ever used by far. Same for BofA with credit cards. The bonuses are not enough to make up for the headaches with these organizations.
I don't think there's any question that the basis problem was Vanguard. They routinely cause that problem for people who aren't going anywhere.madbrain wrote: ↑Wed Jan 02, 2019 6:18 pm If you are lucky. If you end up having to do a share conversion before the transfer, for example from Admiral to Investor, those things may end up being lost. That ended up changing my cost basis from SpecID to average. After months of fighting with both Vanguard and Merrill Edge, I just gave up in trying to fix this. It was impossible to make up the per-lot basis from the old statements Vanguard provided, and they couldn't help. It may be this particular issue was with Vanguard and not Merill Edge, I will never know. As of now the funds have been transferred out of Merill Edge and I can probably never get it fixed. This cost me some TLH opportunities last year, much in excess of any bonus value.
They were different codes. I didn't pursue it any further because I only brought in an extra $25k and preferred not to reset the clock.pre wrote: ↑Wed Jan 02, 2019 6:33 pm May I ask if you repeated the bonus offer with the same promotion/code? I've done several Money Show or elevated offers ($900/$1k at the $200k tier) in the same 12 months without issue. The lone time Merrill denied an offer was because I had accidentally done the same promo twice, causing the system to automatically deny me. My relationship manager offered to contest or escalate, but I didn't want to get too many eyes on my accounts.
I'm reviewing the months of the current $1k offer and there's no mention of the 12 month language, either
Eh, as noted above, it was a small bonus. Mountains and mole-hills, you know.madbrain wrote: ↑Wed Jan 02, 2019 6:14 pm I would escalate this to the CFPB since this was not disclosed originally. Anyway, I would stay clear of Merrill Edge, they are the worst online broker I have ever used by far. Same for BofA with credit cards. The bonuses are not enough to make up for the headaches with these organizations.
Thanks, I'd thought of splitting my rollover and doing $25K for $200 at E-trade and then doing another increment of $25K later, but the offer linked expired Dec 31. The only current ones I can find exclude retirement accounts, plus I think the current bonuses are lower.b0B wrote: ↑Fri Jan 04, 2019 8:45 amCompare these twojeffyscott wrote: ↑Fri Jan 04, 2019 6:07 am For an IRA, are there any better offers at the $50K+ level than the $225 from ME?
https://www.merrilledge.com/offers/900offer
Since this one includes additions to existing accounts, I thought I would ask Schwab to match and just add to my current account there, if they will do so.
https://www.merrilledge.com/offers/900offer
https://www.merrilledge.com/offers/1000offer
though the latter has a requirement that they may or may not check.
Also see
https://us.etrade.com/what-we-offer/how ... enrollment
They sure make it confusing, I'd seen the first one with 2019 and did not realize that they had an entirely separate page with all the very same bonuses for retirement accounts.b0B wrote: ↑Fri Jan 04, 2019 9:24 amIt could be the latter one expired, or it could be that they just didn't update the page, as these two
https://us.etrade.com/what-we-offer/how ... /brokerage
https://us.etrade.com/what-we-offer/how ... retirement
say 12/31/2019 now, but said 12/31/2018 yesterday.
AFAIK, if you transfer out everything except a fractional share (qty < 1), it will count as a partial transfer. The fractional share will be sold automatically before the next dividend hits without a fee. You could then transfer the cash balance from the sale into your checking account, bringing the ME account down to zero. You should then be able to close the account. Maybe they'll close automatically after a while. Regardless, even when doing a full transfer, they'll sell fractional shares, so no way around that.snowman wrote: ↑Sun Jan 06, 2019 7:54 pm For those of you that have entered, exited, and re-entered Merrill Edge bonus land, what is the best way to exit? I see that they charge $49.95 for full account transfer, but $0 for partial account transfer. It seems to me that the best way is to leave couple dollars in the account to keep it open and avoid the fee altogether.
Thanks Mike for your reply. Not sure I follow. ME says that closing the account will trigger $50 charge. So I assume that if, for example, I have $60 left in my account after partial transfer out, and attempt to move it to my checking account, they will keep $50 and I will only receive $10. That's the scenario I am trying to avoid.Mike14 wrote: ↑Mon Jan 07, 2019 9:59 amAFAIK, if you transfer out everything except a fractional share (qty < 1), it will count as a partial transfer. The fractional share will be sold automatically before the next dividend hits without a fee. You could then transfer the cash balance from the sale into your checking account, bringing the ME account down to zero. You should then be able to close the account. Maybe they'll close automatically after a while. Regardless, even when doing a full transfer, they'll sell fractional shares, so no way around that.snowman wrote: ↑Sun Jan 06, 2019 7:54 pm For those of you that have entered, exited, and re-entered Merrill Edge bonus land, what is the best way to exit? I see that they charge $49.95 for full account transfer, but $0 for partial account transfer. It seems to me that the best way is to leave couple dollars in the account to keep it open and avoid the fee altogether.
I see a full account transfer fee, and a close-out fee that is not charged for non-retirement accounts. A partial transfer will avoid the full account transfer fee, and withdrawing money down to zero manually is not considered an account transfer. Close the account once it reaches zero and you are home free on brokerage accounts.
Mutual funds are tricky. The target broker will tell you if they are unable to accept the fund. Stocks, ETFs, treasuries, and corporate bonds are almost always portable.GulfShoresBound wrote: ↑Thu Jan 10, 2019 7:54 pm Hello all! New member here. I've been lurking for a while, reading quite a bit on various topics, and just stumbled across this topic. What a wonderful resource this site is! Sure wish I had found it years ago.
For those of you who have been playing this transfer bonus game for a while, have you had any issues transferring assets in kind rather than simply rolling cash from account to account?
Any problems with Merrill, Fidelity or TD Ameritrade in particular when doing account transfers in kind?
Between my wife and I, we have several individual accounts with various mixes of funds, individual stocks and individual treasury notes and treasury bonds at each of these brokerages. I'm thinking about moving the accounts around a bit - and maybe consolidating some - in part to take advantage of the bonuses being offered, but have never transferred accounts before. I certainly don't want to liquidate individual holdings and then transfer. From what I've read stocks and fund shares seem to transfer in kind easily via ACATS. Do treasuries transfer just as easily?
I'm thinking transferring 25K and buying 13-week Treasury Bills to fulfill 90 days requirement. Brokerage account transfer fee (even partial) is $75. I'd like to avoid that. I don't see any fees if cash is transferred out and account closed.
I didn’t see cost to transfer out/close account after bonus. Also didn’t see if they’ll cover any fees charged by the sending brokerage in the fine print of the offer.whodidntante wrote: ↑Thu Jan 10, 2019 9:25 pm New bonus alert. $200 for 25k at Chase You Invest.
https://accounts.chase.com/youinvest/tr ... You+Invest
I think I prefer the 60K Ultimate Rewards Sapphire account bonus -- with You Invest. Needs 75K, but easy enough to transfer that much. It will likely be 1099ed, probably at $750, so figure $250 for that. But I make vrey good use of URs.whodidntante wrote: ↑Thu Jan 10, 2019 9:25 pm New bonus alert. $200 for 25k at Chase You Invest.
https://accounts.chase.com/youinvest/tr ... You+Invest
b0B wrote: ↑Fri Jan 04, 2019 8:45 amCompare these twojeffyscott wrote: ↑Fri Jan 04, 2019 6:07 am For an IRA, are there any better offers at the $50K+ level than the $225 from ME?
https://www.merrilledge.com/offers/900offer
Since this one includes additions to existing accounts, I thought I would ask Schwab to match and just add to my current account there, if they will do so.
https://www.merrilledge.com/offers/900offer
https://www.merrilledge.com/offers/1000offer
whodidntante wrote: ↑Thu Jan 10, 2019 9:14 pm Mutual funds are tricky. The target broker will tell you if they are unable to accept the fund. Stocks, ETFs, treasuries, and corporate bonds are almost always portable.
whodidntante and Earl - thanks so much for your helpful replies and info!Earl Lemongrab wrote: ↑Fri Jan 11, 2019 12:27 am All my holdings outside of the 401(k) are ETFs, partly to facilitate transfers. I have had few problems, and never related to the assets themselves. One thing to be aware of with in-kind transfer is that the value of the assets can change between the time you send and when they arrive. Most custodians credit the value at the close of business the day they show up in the account. With taxable you can top up with cash as needed, but that can be trickier with IRAs.
SlowMovingInvestor wrote: ↑Fri Jan 11, 2019 6:37 am I already have an existing CMA at Merill, so don't want to add a new account just for logistical reasons (new 1099s etc.). is there any way to get the $900 offer added to an existing account ? [ I wouldn't even try to the add the $1000 offer since I didn't attend the Expo]
Thanks for this information. Thinking of transferring 25k over for the bonus. Do you know if they have something like the Prime Money Market fund and what the yield is?whodidntante wrote: ↑Thu Jan 10, 2019 9:25 pm New bonus alert. $200 for 25k at Chase You Invest.
https://accounts.chase.com/youinvest/tr ... You+Invest
They'l make it available to an existing account ?GulfShoresBound wrote: ↑Fri Jan 11, 2019 8:31 amSlowMovingInvestor wrote: ↑Fri Jan 11, 2019 6:37 am I already have an existing CMA at Merill, so don't want to add a new account just for logistical reasons (new 1099s etc.). is there any way to get the $900 offer added to an existing account ? [ I wouldn't even try to the add the $1000 offer since I didn't attend the Expo]
FWIW - I know from personal experience that if you call Merrill, tell them you saw the $1,000 offer and ask them if they will make it available to you even though you didn't attend the expo, that they will do so . . . .
Not sure about an existing account - but definitely will do it (or at least did it for me) for a new account. It wouldn't hurt to call an try though.SlowMovingInvestor wrote: ↑Fri Jan 11, 2019 9:01 amThey'l make it available to an existing account ?GulfShoresBound wrote: ↑Fri Jan 11, 2019 8:31 amSlowMovingInvestor wrote: ↑Fri Jan 11, 2019 6:37 am I already have an existing CMA at Merill, so don't want to add a new account just for logistical reasons (new 1099s etc.). is there any way to get the $900 offer added to an existing account ? [ I wouldn't even try to the add the $1000 offer since I didn't attend the Expo]
FWIW - I know from personal experience that if you call Merrill, tell them you saw the $1,000 offer and ask them if they will make it available to you even though you didn't attend the expo, that they will do so . . . .
I'm wondering about this as well. It would be nice if they have something comparable to VMMXX, but it seems like most places do not (in terms of yield), so I'm not setting my expectations too high. I might just end up putting the money in a short term bond fund like MINT if their money market fund offerings are not appealing.venus_06 wrote: ↑Fri Jan 11, 2019 8:53 amThanks for this information. Thinking of transferring 25k over for the bonus. Do you know if they have something like the Prime Money Market fund and what the yield is?whodidntante wrote: ↑Thu Jan 10, 2019 9:25 pm New bonus alert. $200 for 25k at Chase You Invest.
https://accounts.chase.com/youinvest/tr ... You+Invest
GulfShoresBound wrote: ↑Fri Jan 11, 2019 9:03 amNot sure about an existing account - but definitely will do it (or at least did it for me) for a new account. It wouldn't hurt to call an try though.SlowMovingInvestor wrote: ↑Fri Jan 11, 2019 9:01 amThey'l make it available to an existing account ?GulfShoresBound wrote: ↑Fri Jan 11, 2019 8:31 amSlowMovingInvestor wrote: ↑Fri Jan 11, 2019 6:37 am I already have an existing CMA at Merill, so don't want to add a new account just for logistical reasons (new 1099s etc.). is there any way to get the $900 offer added to an existing account ? [ I wouldn't even try to the add the $1000 offer since I didn't attend the Expo]
FWIW - I know from personal experience that if you call Merrill, tell them you saw the $1,000 offer and ask them if they will make it available to you even though you didn't attend the expo, that they will do so . . . .
No, sorry. I don't have an account at Chase. I'll probably do the Sapphire 60k points offer instead of this one, if it's still available after my current lockup periods end. You could certainly hold an ultrashort bond ETF like ICSH (3.04%), SHV (2.29%), or T-bills.venus_06 wrote: ↑Fri Jan 11, 2019 8:53 amThanks for this information. Thinking of transferring 25k over for the bonus. Do you know if they have something like the Prime Money Market fund and what the yield is?whodidntante wrote: ↑Thu Jan 10, 2019 9:25 pm New bonus alert. $200 for 25k at Chase You Invest.
https://accounts.chase.com/youinvest/tr ... You+Invest
Merrill Edge has a Preferred Deposit (1.97% a few weeks ago). It has a minimum of $100,000 initial investment. I don't think think it has to stay at that level though. Downside is you have to call to move it back to savings/settlement account - but transfer happens pretty quickly.Ricchan wrote: ↑Fri Jan 11, 2019 7:32 pmI'm wondering about this as well. It would be nice if they have something comparable to VMMXX, but it seems like most places do not (in terms of yield), so I'm not setting my expectations too high. I might just end up putting the money in a short term bond fund like MINT if their money market fund offerings are not appealing.venus_06 wrote: ↑Fri Jan 11, 2019 8:53 amThanks for this information. Thinking of transferring 25k over for the bonus. Do you know if they have something like the Prime Money Market fund and what the yield is?whodidntante wrote: ↑Thu Jan 10, 2019 9:25 pm New bonus alert. $200 for 25k at Chase You Invest.
https://accounts.chase.com/youinvest/tr ... You+Invest
Unfortunately I already got a bonus about 7 months back in this account, and they said that only one bonus per account type per 12 months would be paid. I'm not sure what would happen if I opened an account under the radar for the 900 bonus and transferred securities there -- i.e. I am not sure their back end systems actually enforce this rule for multiple accounts with the same SSconfusedinvestor wrote: ↑Fri Jan 11, 2019 9:55 pm Yes, that can do that in the existing account - that's is what they are doing for me when I called them...I am getting $500 to move 100K in my existing CMA account and they will waive any initial purchase fees of Vanguard MF....hope this helps
GulfShoresBound wrote: ↑Fri Jan 11, 2019 9:03 amNot sure about an existing account - but definitely will do it (or at least did it for me) for a new account. It wouldn't hurt to call an try though.SlowMovingInvestor wrote: ↑Fri Jan 11, 2019 9:01 amThey'l make it available to an existing account ?GulfShoresBound wrote: ↑Fri Jan 11, 2019 8:31 amSlowMovingInvestor wrote: ↑Fri Jan 11, 2019 6:37 am I already have an existing CMA at Merill, so don't want to add a new account just for logistical reasons (new 1099s etc.). is there any way to get the $900 offer added to an existing account ? [ I wouldn't even try to the add the $1000 offer since I didn't attend the Expo]
FWIW - I know from personal experience that if you call Merrill, tell them you saw the $1,000 offer and ask them if they will make it available to you even though you didn't attend the expo, that they will do so . . . .
Depends on the custodian. If it's not a part of the advertised offer, you can ask about it.Startled Cat wrote: ↑Sat Jan 12, 2019 11:52 am Anyway, Wells Fargo charges $95 to transfer out an account, and I would be moving three accounts. I seem to remember that in the past it was common for receving brokerages to reimburse these fees. Is that still a thing, or have the cash bonuses largely replaced it?
Another thing I'm curious about, for both You Invest and Merrill Edge, is what kind of limits they place on outgoing fund transfers. WellsTrade limited me to $25k per day (or was it per week or per month?), which was annoying and one of the reasons I want to leave WellsTrade. Fidelity's limit is $100k per transaction, and the attached checking account at Fidelity makes it straightforward to do larger transactions.Startled Cat wrote: ↑Sat Jan 12, 2019 11:52 am Does anyone have experience with You Invest yet? Online reviews seem to suggest it has very limited functionality. I'm curious if it supports margin accounts and selling specific tax lots. I don't want margin to use for leverage, but I find margin accounts more convenient because they avoid confusing rules about settlement that I've accidentally violated before.
Unfortunately, Wells Fargo has the highest hostage (ACAT and closing) fees that I am aware of. For awhile Fidelity and Schwab were offering some dollar incentives to move over that would have taken the sting out of Wells Fargo. Vanguard does not offer any incentives, however, they also don't charge hostage fees. https://investorjunkie.com/stock-broker ... -accounts/Startled Cat wrote: ↑Sat Jan 12, 2019 11:52 am Anyway, Wells Fargo charges $95 to transfer out an account, and I would be moving three accounts. I seem to remember that in the past it was common for receving brokerages to reimburse these fees. Is that still a thing, or have the cash bonuses largely replaced it?
I have some TBills in other accounts so I am thinking of transferring in cash via check to my new CYI account, buying Tbill at auction, and then after the lockup period transferring out by transferring to m Chase checking account and then to my Fidelity account via ACH transfer.Stocks and ETFs $2.95 ($100 trades at $0 commission for 1 year for anyone opening and funding a You Invest Trade account)
Options not offered
Mutual funds $0
Bonds $1 per bond with $10 minimum, $250 maximum
Treasuries commission-free
Futures not offered
Automated Customer Account Transfer (ACAT) $75
Retirement Brokerage Account Termination (IRAs and SEPs) $75
Applies when all assets are distributed or transferred out of the account.