Public.com 2% / $10k no risk return legit?? [as transfer bonus]

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ebotrd
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Public.com 2% / $10k no risk return legit?? [as transfer bonus]

Post by ebotrd »

If you have $1M in your brokerage account that's already invested long term or otherwise in HODL mode, you can apparently take 10min to transfer it to public.com and get 2% annualized no risk return. You just have to leave it with public for 6 months to get the $10k. Then you could just move it back if you want to. The only catch I could find is they may charge your $75 to move it back (though the receiving brokerage will likely convert that for you).
This is at least 5x any other such offers I've seen recently.
Lesser amounts also have decent bonuses.

https://help.public.com/en/articles/649 ... er-account

I'm in the process now. Will update you all to let you know how it goes. Transfer process was quite painless and so far just required about 10min. They have you just do it on their phone app.
Anyone else see this / doing this?
Look legit to you?
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Last edited by ebotrd on Sun Sep 11, 2022 10:33 pm, edited 1 time in total.
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starboi
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Re: Public.com 2% / 10% no risk return legit??

Post by starboi »

Where does the 10% come in? (Thread title)
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Re: Public.com 2% / 10% no risk return legit??

Post by nisiprius »

Be sure to post again in six months and let us know whether you actually did transfer it back, and whether you have changed any of the investments you started out with.
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Nate79
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Re: Public.com 2% / 10% no risk return legit??

Post by Nate79 »

I see a page that describes an account bonus for transfering an account. What does this have to do with 2% or 10%? Suggest you edit your highly misleading or poorly described title and description.

Many brokerages offer transfer bonuses.
Last edited by Nate79 on Sun Sep 11, 2022 1:21 pm, edited 1 time in total.
MidwestMike
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Re: Public.com 2% / 10% no risk return legit??

Post by MidwestMike »

starboi wrote: Sun Sep 11, 2022 1:03 pm Where does the 10% come in? (Thread title)
10,000 for 1,000,000 is 1%.
am
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Re: Public.com 2% / 10% no risk return legit??

Post by am »

What could go wrong? Hacking, bankruptcy, identity theft, fund theft.

Why are they so motivated to give such crazy money out-10k for a mil? 5k for 500k. Never seen anything close.

After the celsius debacle, I am burned for life. Although I rescued my money two days before the asset freeze.
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Re: Public.com 2% / 10% no risk return legit??

Post by humblecoder »

Not uncommon for brokerages to offer bonuses like this in order to lure new money, although this offers seems particularly generous.

People considering this should read the thread on doctorofcredit.com first: https://www.doctorofcredit.com/public-b ... 000-bonus/

There is some discussion about how Public.com tracks cost basis and where they support selling specific tax lots. From what I can gather, they do track cost basis, although they only seem to display the average cost in their app. They also say that do not support selecting specific lots to sell. This is according to a poster who claims to work for Public.com, but your mileage may vary. Anyway, if you just plan to hold for six months and transfer your money out, perhaps this doesn't matter to you. However, you plan on doing any tax harvesting, you might want to research this, as this could be a deal breaker.

Also, note that may online banks are currently paying 2% APY, so that might be a better route for some. That would be true risk free, FDIC insured (may have to split up your money if are above the FDIC limit), and doesn't require a $1M transfer. Plus, it isn't a one time bonus.

PS: The offer is $10K for $1M transfer for 6 months which of course is 1%. I would imagine that the poster is annualizing this to 2%. However, this is misleading since after you get the 6 month bonus, you earn 0%. Not sure where they got the 10% from.
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Re: Public.com 2% / 10% no risk return legit?? [as transfer bonus]

Post by CletusCaddy »

I would much rather transfer that $1M to SaveBetter/Ponce Bank for their 3% No Penalty CD
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Cheez-It Guy
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Re: Public.com 2% / 10% no risk return legit?? [as transfer bonus]

Post by Cheez-It Guy »

I'm assuming the title was supposed to be 2% / $10K, not 10%.
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Re: Public.com 2% / 10% no risk return legit?? [as transfer bonus]

Post by JoMoney »

The thread at doctorofcredit.com has lots of info in it.
Looks legit, but among other issues, I don't like that I can't find a phone number and for any kind of support references online chat... for some things, that's fine, but not for a place I might consider moving a million dollars to :? Pass.
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Re: Public.com 2% / 10% no risk return legit??

Post by nisiprius »

MidwestMike wrote: Sun Sep 11, 2022 1:21 pm
starboi wrote: Sun Sep 11, 2022 1:03 pm Where does the 10% come in? (Thread title)
10,000 for 1,000,000 is 1%.
Yes, but the original poster believes you can simply cash out that $10,000 in six months. 1% in six months = 2% annualized, or maybe 2.01% if you want to get picky.

In percentage terms the deal is even better at $100,000: $2,000 = 2% in six months = 4% annualized.

I believe an ACAT transfer transfers the entire contents of an account, so you can't (easily) control the size of the transfer, and receive $20,000 by transferring $1 million in ten transfers of $100,000 each. [See postings below, others say you can]

The percentage return varies rather chaotically with the size of the transfer. If your account is $500,000, you make $5,000 = 1% = 2% annualized, but if your transfer is $950,000, you will make the same $5,000 = only 0.53% = 1.06% annualized.

Obviously, the hope is that when you become part of the community, you will get drawn into things that, like their thematic investment approach, that will ultimately be worth more than $10,000 to Open To The Public Investing, particularly products such as

You will notice that they entice you to "Invest in stocks, crypto, ETFs, fine art, collectibles, and more"--and I suspect that the assets that are not stocks or ETFs likely make more money for Open To The Public Investments. For example, with crypto, "there is a 1-2% markup applied to the transaction." The fee schedule page does not say what the fees are for fine art and collectibles.
Last edited by nisiprius on Sun Sep 11, 2022 7:32 pm, edited 1 time in total.
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Re: Public.com 2% / 10% no risk return legit??

Post by Svensk Anga »

nisiprius wrote: Sun Sep 11, 2022 4:03 pm
I believe an ACAT transfer transfers the entire contents of an account,
Not so, in my experience chasing transfer bonuses. One can elect to transfer to the whole account, or all of ETF XXX or YYY shares of ETF XXX or whatever. Partial shares typically do not transfer. This was for moving to TD Ameritrade, E-Trade, Merrill Edge, Schwab. I don't know if Public has that functionality in their transfer screen.
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Re: Public.com 2% / 10% no risk return legit??

Post by sc9182 »

Svensk Anga wrote: Sun Sep 11, 2022 4:26 pm
nisiprius wrote: Sun Sep 11, 2022 4:03 pm
I believe an ACAT transfer transfers the entire contents of an account,
Not so, in my experience chasing transfer bonuses. One can elect to transfer to the whole account, or all of ETF XXX or YYY shares of ETF XXX or whatever. Partial shares typically do not transfer. This was for moving to TD Ameritrade, E-Trade, Merrill Edge, Schwab. I don't know if Public has that functionality in their transfer screen.
Yes - there is partial account transfer (and also can choose specific stock, ETF ticket - and Quantity ).

Do think ACATs transfers supports Quantity of a ticker — but won’t allow Spec/LOT-ID to be chosen for the transfer.

Of course, you will see the different LOTs (and their cost basis) a few day/weeks after the transfer.

Public.com apparently uses Apex for holding your portfolio; iirc, we’ve are familiar with Apex - during our stint with SoFi and one other fintech; Apex does keep up ok (in fact you might get Spec LOT details and cost basis info etc — better on Apex site)

We are not sure how/how-reliable Public.com is — dunno; Time will tell
Last edited by sc9182 on Thu Sep 15, 2022 8:04 am, edited 1 time in total.
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Re: Public.com 2% / 10% no risk return legit?? [as transfer bonus]

Post by nisiprius »

Does this mean it is a $52 million company with $46 million in assets under management? It's an annual report that somehow popped up in a web search randomly clicking around. This is from a 3/31/2022 SEC filing.

Image

CletusCaddy (below) found a LinkedIn listing indicating that it has 209 employees.
Last edited by nisiprius on Sun Sep 11, 2022 7:49 pm, edited 3 times in total.
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Re: Public.com 2% / 10% no risk return legit?? [as transfer bonus]

Post by CletusCaddy »

nisiprius wrote: Sun Sep 11, 2022 7:37 pm Does this mean it is a $52 million company with $46 million in assets under management? It's an annual report that somehow popped up in a web search randomly clicking around:

Image

Another random hit on a site called Crunchbase suggests that it has ten employees:

Image
I would trust LinkedIn for a more accurate employee count: 209

https://www.linkedin.com/company/publichello/
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Re: Public.com 2% / 10% no risk return legit?? [as transfer bonus]

Post by nisiprius »

Accordingly, I corrected my post above.
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Re: Public.com 2% / 10% no risk return legit?? [as transfer bonus]

Post by CletusCaddy »

I would not worry about whether Public is a scam. They have raised hundreds of millions of dollars from top shelf VCs like Accel and Tiger Global, and they are registered with FINRA, SIPC, etc.

What I would worry about is their management’s business acumen. According to this article at some point the executives considered asking their users for tips:

https://techcrunch.com/2022/01/12/publi ... er-growth/
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Re: Public.com 2% / 10% no risk return legit?? [as transfer bonus]

Post by toddthebod »

nisiprius wrote: Sun Sep 11, 2022 7:37 pm Does this mean it is a $52 million company with $46 million in assets under management? It's an annual report that somehow popped up in a web search randomly clicking around. This is from a 3/31/2022 SEC filing.

Image

CletusCaddy (below) found a LinkedIn listing indicating that it has 209 employees.
It looks to me like the $46M is just the total of all fractional shares, not total AUM. My understanding is that since fractional shares can't be registered to the users, the brokerage actually owns the whole shares and just "sublets" the fractions to the end users.
Backtests without cash flows are meaningless. Returns without dividends are lies.
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Re: Public.com 2% / 10% no risk return legit??

Post by ebotrd »

starboi wrote: Sun Sep 11, 2022 1:03 pm Where does the 10% come in? (Thread title)
Sorry, meant $10k...revised.
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Re: Public.com 2% / 10% no risk return legit??

Post by ebotrd »

MidwestMike wrote: Sun Sep 11, 2022 1:21 pm
starboi wrote: Sun Sep 11, 2022 1:03 pm Where does the 10% come in? (Thread title)
10,000 for 1,000,000 is 1%.
But it only required holding your money there for 6 months, so 2% annualized return.
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Re: Public.com 2% / 10% no risk return legit??

Post by ebotrd »

sc9182 wrote: Sun Sep 11, 2022 7:27 pm
Svensk Anga wrote: Sun Sep 11, 2022 4:26 pm
nisiprius wrote: Sun Sep 11, 2022 4:03 pm
I believe an ACAT transfer transfers the entire contents of an account,
Not so, in my experience chasing transfer bonuses. One can elect to transfer to the whole account, or all of ETF XXX or YYY shares of ETF XXX or whatever. Partial shares typically do not transfer. This was for moving to TD Ameritrade, E-Trade, Merrill Edge, Schwab. I don't know if Public has that functionality in their transfer screen.
Yes - there is partial account transfer (and also can choose specific stock, ETF ticket - and Quantity ).

Don’t think ACATs transfers supports Quantity of a ticker — but won’t allow Spec/LOT-ID to be chosen for the transfer.

Of course, you will see the different LOTs (and their cost basis) a few day/weeks after the transfer.

Public.com apparently uses Apex for holding your portfolio; iirc, we’ve are familiar with Apex - during our stint with SoFi and one other fintech; Apex does keep up ok (in fact you might get Spec LOT details and cost basis info etc — better on Apex site)

We are not sure how/how-reliable Public.com is — dunno; Time will tell
You're right -- doesn't require transferring an entire account. Only the portion you want to for whatever bonus level.
When something is important enough, you do it even if the odds are not in your favor. -- E. Musk.
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Re: Public.com 2% / 10% no risk return legit?? [as transfer bonus]

Post by FoolMeOnce »

CletusCaddy wrote: Sun Sep 11, 2022 1:30 pm I would much rather transfer that $1M to SaveBetter/Ponce Bank for their 3% No Penalty CD
humblecoder wrote: Sun Sep 11, 2022 1:24 pm Also, note that may online banks are currently paying 2% APY, so that might be a better route for some. That would be true risk free, FDIC insured (may have to split up your money if are above the FDIC limit), and doesn't require a $1M transfer. Plus, it isn't a one time bonus.
That's if your looking for somewhere to put $1m cash. If I understand correctly, OP is taking about transferring $1m of your investments but keeping the investment the same. For example, if you have $1m of VT sitting at Fidelity, you can transfer it to public.com and get paid $10k to let them hold that VT for you for six months. Right?
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Re: Public.com 2% / $10k no risk return legit?? [as transfer bonus]

Post by whodidntante »

Y’all should not be comparing brokerage transfer bonuses to bank interest. To earn bank interest, you have to keep a slug of cash somewhere. A brokerage transfer bonus is earned for (this is where it gets tricky) a brokerage transfer. Stuff you own anyway.
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Re: Public.com 2% / 10% no risk return legit?? [as transfer bonus]

Post by gougou »

nisiprius wrote: Sun Sep 11, 2022 7:37 pm Does this mean it is a $52 million company with $46 million in assets under management? It's an annual report that somehow popped up in a web search randomly clicking around. This is from a 3/31/2022 SEC filing.

Image

CletusCaddy (below) found a LinkedIn listing indicating that it has 209 employees.
It looks like they only have $5M shareholder's equity, which is very concerning as I am worth more than this whole company :D
I look for the fat pitch and I’m always ready to bet a significant amount of money.
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Re: Public.com 2% / 10% no risk return legit?? [as transfer bonus]

Post by CletusCaddy »

gougou wrote: Sun Sep 11, 2022 11:50 pm
nisiprius wrote: Sun Sep 11, 2022 7:37 pm Does this mean it is a $52 million company with $46 million in assets under management? It's an annual report that somehow popped up in a web search randomly clicking around. This is from a 3/31/2022 SEC filing.

Image

CletusCaddy (below) found a LinkedIn listing indicating that it has 209 employees.
It looks like they only have $5M shareholder's equity, which is very concerning as I am worth more than this whole company :D
Book equity is not at all the same as market equity.

They were valued at $1.2B at their last fundraise
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Re: Public.com 2% / 10% no risk return legit?? [as transfer bonus]

Post by gougou »

CletusCaddy wrote: Sun Sep 11, 2022 11:52 pm
gougou wrote: Sun Sep 11, 2022 11:50 pm
nisiprius wrote: Sun Sep 11, 2022 7:37 pm Does this mean it is a $52 million company with $46 million in assets under management? It's an annual report that somehow popped up in a web search randomly clicking around. This is from a 3/31/2022 SEC filing.

Image

CletusCaddy (below) found a LinkedIn listing indicating that it has 209 employees.
It looks like they only have $5M shareholder's equity, which is very concerning as I am worth more than this whole company :D
Book equity is not at all the same as market equity.

They were valued at $1.2B at their last fundraise
OK, but they pretty much only have $5M cash on the balance sheet. The liabilities pretty much cancels out all the other assets. So if we get 500 people moving $1M each and getting $10K bonus each, they are bankrupt.
I look for the fat pitch and I’m always ready to bet a significant amount of money.
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Re: Public.com 2% / 10% no risk return legit?? [as transfer bonus]

Post by CletusCaddy »

gougou wrote: Sun Sep 11, 2022 11:56 pm
CletusCaddy wrote: Sun Sep 11, 2022 11:52 pm
gougou wrote: Sun Sep 11, 2022 11:50 pm
nisiprius wrote: Sun Sep 11, 2022 7:37 pm Does this mean it is a $52 million company with $46 million in assets under management? It's an annual report that somehow popped up in a web search randomly clicking around. This is from a 3/31/2022 SEC filing.

Image

CletusCaddy (below) found a LinkedIn listing indicating that it has 209 employees.
It looks like they only have $5M shareholder's equity, which is very concerning as I am worth more than this whole company :D
Book equity is not at all the same as market equity.

They were valued at $1.2B at their last fundraise
OK, but they pretty much only have $5M cash on the balance sheet. The liabilities pretty much cancels out all the other assets. So if we get 500 people moving $1M each and getting $10K bonus each, they are bankrupt.
Nisi didn’t provide a date on that filing.

They raised $220M 18 months ago.

https://techcrunch.com/2021/02/17/as-ex ... ation/amp/

With only 200 employees, each employee would have to be paid $700k average salaries for them to be bankrupt by now.
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Re: Public.com 2% / 10% no risk return legit?? [as transfer bonus]

Post by gougou »

CletusCaddy wrote: Sun Sep 11, 2022 11:59 pm
gougou wrote: Sun Sep 11, 2022 11:56 pm
CletusCaddy wrote: Sun Sep 11, 2022 11:52 pm
gougou wrote: Sun Sep 11, 2022 11:50 pm
nisiprius wrote: Sun Sep 11, 2022 7:37 pm Does this mean it is a $52 million company with $46 million in assets under management? It's an annual report that somehow popped up in a web search randomly clicking around. This is from a 3/31/2022 SEC filing.

Image

CletusCaddy (below) found a LinkedIn listing indicating that it has 209 employees.
It looks like they only have $5M shareholder's equity, which is very concerning as I am worth more than this whole company :D
Book equity is not at all the same as market equity.

They were valued at $1.2B at their last fundraise
OK, but they pretty much only have $5M cash on the balance sheet. The liabilities pretty much cancels out all the other assets. So if we get 500 people moving $1M each and getting $10K bonus each, they are bankrupt.
Nisi didn’t provide a date on that filing.

They raised $220M 18 months ago.

https://techcrunch.com/2021/02/17/as-ex ... ation/amp/

With only 200 employees, each employee would have to be paid $700k average salaries for them to be bankrupt by now.
Nisi said it's from a 3/31/2022 filing. I did not verify it myself.

If they did raise $220M 18 months ago, then this balance sheet is probably before that date, as they should have "additional paid-in capital" larger than $220M.

They could still burn money very quickly if they are incurring losses in the business. Employee compensation isn't usually the biggest expense for startups. Something like rent or advertising could cost a lot more.
I look for the fat pitch and I’m always ready to bet a significant amount of money.
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Re: Public.com 2% / 10% no risk return legit?? [as transfer bonus]

Post by CletusCaddy »

gougou wrote: Mon Sep 12, 2022 12:03 am
They could still burn money very quickly if they are incurring losses in the business. Employee compensation isn't usually the biggest expense for startups. Something like rent or advertising could cost a lot more.
I don’t know how long you’ve been around startups, but this statement is assuredly false.
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Re: Public.com 2% / 10% no risk return legit?? [as transfer bonus]

Post by gougou »

CletusCaddy wrote: Mon Sep 12, 2022 12:08 am
gougou wrote: Mon Sep 12, 2022 12:03 am
They could still burn money very quickly if they are incurring losses in the business. Employee compensation isn't usually the biggest expense for startups. Something like rent or advertising could cost a lot more.
I don’t know how long you’ve been around startups, but this statement is assuredly false.
I have worked in a couple startups. They both blew huge amount of money on Facebook/Google advertising and spent huge amount of money on Amazon AWS and rent. The advertising expenses were much higher than all employee salaries combined. I would imagine Public.com to also spend a lot of money on customer acquisition.
I look for the fat pitch and I’m always ready to bet a significant amount of money.
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Re: Public.com 2% / $10k no risk return legit?? [as transfer bonus]

Post by investorpeter »

The crypto and collectible investing make me nervous. As does the prominent role of celebrities as investors. According to crunchbase, Maria Sharapova (the tennis star) was the lead investor in the latest round of venture financing. Will Smith, Tony Hawk and Casy Neistat (YouTuber) are also prominently displayed in their website as investors. Their business model seems a bit whacky. No commissions, minimal fees. They gave up payment for order flow last year and replaced it with “tipping” where customers can “tip” the company as a way of expressing appreciation. As far as I can tell their only real source of revenue is securities lending (and it seems they keep all the revenue from that). I suppose it’s a good source of revenue if they hold accounts with a lot of securities (meme stocks) in demand for shorting by hedge funds. What a bizarro world fintech has become.
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Re: Public.com 2% / $10k no risk return legit?? [as transfer bonus]

Post by patrick »

investorpeter wrote: Mon Sep 12, 2022 9:07 pm The crypto and collectible investing make me nervous. As does the prominent role of celebrities as investors. According to crunchbase, Maria Sharapova (the tennis star) was the lead investor in the latest round of venture financing. Will Smith, Tony Hawk and Casy Neistat (YouTuber) are also prominently displayed in their website as investors. Their business model seems a bit whacky. No commissions, minimal fees. They gave up payment for order flow last year and replaced it with “tipping” where customers can “tip” the company as a way of expressing appreciation. As far as I can tell their only real source of revenue is securities lending (and it seems they keep all the revenue from that). I suppose it’s a good source of revenue if they hold accounts with a lot of securities (meme stocks) in demand for shorting by hedge funds. What a bizarro world fintech has become.
If Will Smith wants to give me thousands of dollars, who am I to complain?
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Re: Public.com 2% / $10k no risk return legit?? [as transfer bonus]

Post by placeholder »

This offer along with others has been discussed in the big thread on the subject:

viewtopic.php?t=196884

I suggest reading the mini faq in the first post.
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Re: Public.com 2% / $10k no risk return legit?? [as transfer bonus]

Post by Kagord »

With that amount of money, personally, I'd recommend and stick to the larger investment institutions (Fidelity, Schwab, Vanguard...etc). I like to see decades of successful management and proven survival through past liquidity events.
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Re: Public.com 2% / $10k no risk return legit?? [as transfer bonus]

Post by nisiprius »

We systematically overestimate the value of lump sums, and underestimate the value of recurring payments.

When people want us to pay them, they arrange subscription models, multiple payments, and annual auto-renewals.

When they want to pay us, they arrange sign-on bonuses and "first month free" deals.

The financial value of a one-time sign up bonus should always be made in the context of your best estimate of the length of time that you are likely to hold that account.

That should be realistic. It should not be based on possibility ("I could always close the account in six months,") but best guess of likelihood based on your past track record, including the nuisance and glitches of opening and closing accounts, time available to devote to the bonus-chasing hobby, tax tangles due to failure to maintain cost basis records accurately across transfers, and the possibility that the firm will offer something that will convince you to stay.

One reasonable estimate is the length of time you held the account that the new account will be replacing.

I'll bet that in real life, combining the "curve" of return as a function of account size and the probability of holding the account for more than six months, the actual average "return" enjoyed by transfer bonus recipients is under 1%. And that there is at least a 25% chance that you will end up buying some financial product they offer, that you had not intended to buy when you opened the account.

ebotrd, how long have you held the account that you transferred to public.com?
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Re: Public.com 2% / $10k no risk return legit?? [as transfer bonus]

Post by sycamore »

nisiprius wrote: Tue Sep 13, 2022 5:14 am ... And that there is at least a 25% chance that you will end up buying some financial product they offer, that you had not intended to buy when you opened the account.
It is right to be concerned about unintended outcomes. But among folks who go for bonus chasing and have climbed the "learning curve" I suspect the chance is much lower than 25%. The main downside for me is having multiple accounts (and related records / overhead) to keep track of.
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JoMoney
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Re: Public.com 2% / $10k no risk return legit?? [as transfer bonus]

Post by JoMoney »

sycamore wrote: Tue Sep 13, 2022 7:46 am
nisiprius wrote: Tue Sep 13, 2022 5:14 am ... And that there is at least a 25% chance that you will end up buying some financial product they offer, that you had not intended to buy when you opened the account.
It is right to be concerned about unintended outcomes. But among folks who go for bonus chasing and have climbed the "learning curve" I suspect the chance is much lower than 25%. The main downside for me is having multiple accounts (and related records / overhead) to keep track of.
... That's the "main downside" until some other downside shows up. I know I didn't see a "downside" to using TreasuryDirect IBonds for my emergency fund until they locked me out of my account. Fortunately I didn't have the problems getting through to the customer service (problems people are currently experiencing), and at least TD has good customer service once you get a hold of someone. There doesn't seem to be any customer service number for this public.com outfit, maybe the online chat can resolve most things (I don't know), but I would be very uneasy about getting a large portion of my net-worth tied up in an upstart with little experience of various ebbs and flows of good and bad times... but, of course the new account incentives probably won't be as good if they build a good reputation :?
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
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Re: Public.com 2% / $10k no risk return legit?? [as transfer bonus]

Post by patrick »

nisiprius wrote: Tue Sep 13, 2022 5:14 am We systematically overestimate the value of lump sums, and underestimate the value of recurring payments.

When people want us to pay them, they arrange subscription models, multiple payments, and annual auto-renewals.

When they want to pay us, they arrange sign-on bonuses and "first month free" deals.

The financial value of a one-time sign up bonus should always be made in the context of your best estimate of the length of time that you are likely to hold that account.

That should be realistic. It should not be based on possibility ("I could always close the account in six months,") but best guess of likelihood based on your past track record, including the nuisance and glitches of opening and closing accounts, time available to devote to the bonus-chasing hobby, tax tangles due to failure to maintain cost basis records accurately across transfers, and the possibility that the firm will offer something that will convince you to stay.

One reasonable estimate is the length of time you held the account that the new account will be replacing.

I'll bet that in real life, combining the "curve" of return as a function of account size and the probability of holding the account for more than six months, the actual average "return" enjoyed by transfer bonus recipients is under 1%. And that there is at least a 25% chance that you will end up buying some financial product they offer, that you had not intended to buy when you opened the account.

ebotrd, how long have you held the account that you transferred to public.com?
Although I'm not the one you asked, the account I am seeking to transfer to Public has been open about 2.5 years. The source account is the only account I've received a brokerage bonus on in the last 5 years, but I have more track record data with other types of bonuses.

I have a systematic records of deposit accounts I opened just for bonuses going back to October 2017. All such accounts I opened prior to 2022 are now closed, remaining open for these durations on average:

199 days for accounts requiring a deposit of $2000 or larger (15 accounts total) though I sometimes withdrew most of the money much sooner
261 days for accounts with smaller or no deposit requirements (12 accounts total)

For credit cards I have a systematic record of every card I ever opened, the earliest in 2004. Many of the accounts are still open, but calculating as if they would be closed today gives a lower bound on the average time:

408 days for cards with annual fees the whole time (13 cards total), most of which avoided the first renewal and none have reached the second
1227 days for cards that initially had annual fees but converted to no-fee cards (5 cards total)
2560 days for cards that never had annual fees (24 cards total)

The length seems important mainly in the context of ongoing costs. A bank account with a significant amount of money and a poor interest rate should definitely be closed promptly after qualifying for the bonus as the foregone interest is effectively a cost of the account. However, I see no harm in keeping no-fee credit cards open.

Public seems more like the latter. There is no interest being lost or fees for keeping the account, and if I made any trades the cost would be the same as at the previous broker. There is certainly some risk I'd be led to buy something I shouldn't, but that risk is not unique to Public.
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Re: Public.com 2% / $10k no risk return legit?? [as transfer bonus]

Post by placeholder »

In general I agree that return on the money is the wrong way to view a brokerage bonus so I look at it as payment for effort and effort is usually lower these days than it was early on.
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Re: Public.com 2% / $10k no risk return legit?? [as transfer bonus]

Post by sc9182 »

some folks equate bonuses (decent chunked bonus of $1000 or higher ) - may be considered as — couple of months of car payment ., or 6 months of insurance and such.

If you are talking bonus $2500 or higher — consider half the property tax etc .. and if you are lucky (and resourceful) enough to get two to three such bonuses - your annual property taxes covered in full .. and such.

Try to keep it with reputable / big houses. Even more importantly- keep cost basis info - mostly preserved (usually it may take 3-4 weeks to get the cost basis of lots) — but don’t bet on it that it works good each time ..

Surprised when we see folks netting $5k - $10k in annual bonus over multiple years ..
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Re: Public.com 2% / $10k no risk return legit?? [as transfer bonus]

Post by Total_Risk_Parity »

I have a dumb question.

On Doctor of Credit, Stephen Sikes stated, "you can do a partial transfers as we currently only offer US equities (so stocks & ETFs)." Would that include ETFs which have international exposure such a as VT?

I already posed my question to Stephen over there, but figured I was more likely to get a response from someone knowledgeable here.
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Re: Public.com 2% / $10k no risk return legit?? [as transfer bonus]

Post by placeholder »

Total_Risk_Parity wrote: Fri Sep 16, 2022 7:21 pm On Doctor of Credit, Stephen Sikes stated, "you can do a partial transfers as we currently only offer US equities (so stocks & ETFs)." Would that include ETFs which have international exposure such a as VT?
If you look at the list of etfs on the site the international vanguard ones are there:

https://public.com/etfs/a-z/V/2
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Re: Public.com 2% / $10k no risk return legit?? [as transfer bonus]

Post by sc9182 »

Update on our transfer-in to Public;
transferred low 100k etf - about a week ago., transfer finished within 4-5 business days., and showed on ApexClearing as well.

After About 2-3 days later., got $2000 bonus cash posted (in addition to $75 partial transfer fees they reimbursed on their own). Now got $2075 in cash in the Public account ..
Got any stock tips to invest this $2075 net new cash !?
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Re: Public.com 2% / $10k no risk return legit?? [as transfer bonus]

Post by tj »

sc9182 wrote: Sat Sep 17, 2022 8:14 am Update on our transfer-in to Public;
transferred low 100k etf - about a week ago., transfer finished within 4-5 business days., and showed on ApexClearing as well.

After About 2-3 days later., got $2000 bonus cash posted (in addition to $75 partial transfer fees they reimbursed on their own). Now got $2075 in cash in the Public account ..
Got any stock tips to invest this $2075 net new cash !?
My transfer ended up under 100k by the time it was received due to volatility. Hope I still get the 2k.
student
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Re: Public.com 2% / $10k no risk return legit?? [as transfer bonus]

Post by student »

tj wrote: Sat Sep 17, 2022 4:06 pm
sc9182 wrote: Sat Sep 17, 2022 8:14 am Update on our transfer-in to Public;
transferred low 100k etf - about a week ago., transfer finished within 4-5 business days., and showed on ApexClearing as well.

After About 2-3 days later., got $2000 bonus cash posted (in addition to $75 partial transfer fees they reimbursed on their own). Now got $2075 in cash in the Public account ..
Got any stock tips to invest this $2075 net new cash !?
My transfer ended up under 100k by the time it was received due to volatility. Hope I still get the 2k.
I think this may not work if it was under 100k AT the time of transfer. (At least that's my understanding at other brokerages.)
tj
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Re: Public.com 2% / $10k no risk return legit?? [as transfer bonus]

Post by tj »

student wrote: Sat Sep 17, 2022 4:08 pm
tj wrote: Sat Sep 17, 2022 4:06 pm
sc9182 wrote: Sat Sep 17, 2022 8:14 am Update on our transfer-in to Public;
transferred low 100k etf - about a week ago., transfer finished within 4-5 business days., and showed on ApexClearing as well.

After About 2-3 days later., got $2000 bonus cash posted (in addition to $75 partial transfer fees they reimbursed on their own). Now got $2075 in cash in the Public account ..
Got any stock tips to invest this $2075 net new cash !?
My transfer ended up under 100k by the time it was received due to volatility. Hope I still get the 2k.
I think this may not work if it was under 100k AT the time of transfer. (At least that's my understanding at other brokerages.)
The final balance at the old broker was over 100k. not sure what "time of transfer" would be defined as.
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Re: Public.com 2% / $10k no risk return legit?? [as transfer bonus]

Post by placeholder »

tj wrote: Sat Sep 17, 2022 4:16 pm
student wrote: Sat Sep 17, 2022 4:08 pm I think this may not work if it was under 100k AT the time of transfer. (At least that's my understanding at other brokerages.)
The final balance at the old broker was over 100k. not sure what "time of transfer" would be defined as.
Usually it's the close of business either the day the assets post or the next day but if it was due to market movements you can contact them to see if they'll honor it anyway and if not with a taxable one just plus it up with some cash.
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Re: Public.com 2% / $10k no risk return legit?? [as transfer bonus]

Post by tj »

placeholder wrote: Sat Sep 17, 2022 5:29 pm
tj wrote: Sat Sep 17, 2022 4:16 pm
student wrote: Sat Sep 17, 2022 4:08 pm I think this may not work if it was under 100k AT the time of transfer. (At least that's my understanding at other brokerages.)
The final balance at the old broker was over 100k. not sure what "time of transfer" would be defined as.
Usually it's the close of business either the day the assets post or the next day but if it was due to market movements you can contact them to see if they'll honor it anyway and if not with a taxable one just plus it up with some cash.
So I would have to open some other brokerage account and then ACAT it over? Lol.

My transfer started on 9/13 and posted on 9/16. The 5%+ buffer wasn't enough. 😂
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Re: Public.com 2% / $10k no risk return legit?? [as transfer bonus]

Post by placeholder »

tj wrote: Sat Sep 17, 2022 5:56 pm
placeholder wrote: Sat Sep 17, 2022 5:29 pm
tj wrote: Sat Sep 17, 2022 4:16 pm
student wrote: Sat Sep 17, 2022 4:08 pm I think this may not work if it was under 100k AT the time of transfer. (At least that's my understanding at other brokerages.)
The final balance at the old broker was over 100k. not sure what "time of transfer" would be defined as.
Usually it's the close of business either the day the assets post or the next day but if it was due to market movements you can contact them to see if they'll honor it anyway and if not with a taxable one just plus it up with some cash.
So I would have to open some other brokerage account and then ACAT it over? Lol.

My transfer started on 9/13 and posted on 9/16. The 5%+ buffer wasn't enough. 😂
First check with the receiving firm to see if it's needed but what I was suggesting was transferring cash which would come through a linked bank account.
tj
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Re: Public.com 2% / $10k no risk return legit?? [as transfer bonus]

Post by tj »

placeholder wrote: Sat Sep 17, 2022 6:01 pm
tj wrote: Sat Sep 17, 2022 5:56 pm
placeholder wrote: Sat Sep 17, 2022 5:29 pm
tj wrote: Sat Sep 17, 2022 4:16 pm
student wrote: Sat Sep 17, 2022 4:08 pm I think this may not work if it was under 100k AT the time of transfer. (At least that's my understanding at other brokerages.)
The final balance at the old broker was over 100k. not sure what "time of transfer" would be defined as.
Usually it's the close of business either the day the assets post or the next day but if it was due to market movements you can contact them to see if they'll honor it anyway and if not with a taxable one just plus it up with some cash.
So I would have to open some other brokerage account and then ACAT it over? Lol.

My transfer started on 9/13 and posted on 9/16. The 5%+ buffer wasn't enough. 😂
First check with the receiving firm to see if it's needed but what I was suggesting was transferring cash which would come through a linked bank account.
For this offer, allegedly only ACAT transfers count.
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