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bbartol is either a client or works for cpc.

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I do indeed have about >$250K in assets. About $50k in checking, $140K in savings, and only about $80K in IRA. As you can see I really like my funds liquid.
My concern is that, if I go to CPC, how much of my assets will they make me invest? They need $250K in investable assets?
How much funds is required in the account at all times to remain a CPC? I'm looking to buy two homes in the next 5-8 years.

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xerty said:   
bbartol said:   The fee is .4% (taken quarterly) of total portfolio value...
...the more money they make off that .4% quarterly fee.

 

So do I have this right - their fee is 1.6% annually, paid quarterly? That's a bit on the high side for investment management, which typically runs 1-2%/year.

  That will pay for a lot of fee waivers and credit cards made from weird metals. And I'm assuming there are high embedded fees in all their funds too. Pass.

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I was doing some searching online for CPC reviews and this was pretty much the only thread I could find. I'm currently 26, making a good amount of money and recently invested with CPC. I only put in 100K so far and the fees are 1.6% annually and deducted quarterly from the assets. I chose the most aggressive model since I'm young but based on the past 5 year performance I was shown, the second most aggressive model (option below me) had pretty similar return and less risk. As you put more money in they drop down to around .6%-1.2% and you can also do some negotiating with them. It's been 2 months since I've invested with CPC and I'm currently up 2% on my investment which isn't bad since the market's been pretty shaky lately.

According to the relationship manager, the investments are managed by their institutional money group in NYC which normally only does large accounts 25 mil or greater. They also cover all the buy/sell and maintenance fees included with the annual fees. I don't really have any complaints other than the initial fees being pretty high. Also their chase.com online banking system to view your performance is pretty shitty.

I'm tempted to get a premium account to fool.com or zacks and manage the money myself but I think I'm gonna put some more in soon with CPC to get my fees lowered and see where it goes.
ismaelhoopster said:   I do indeed have about >$250K in assets. About $50k in checking, $140K in savings, and only about $80K in IRA. As you can see I really like my funds liquid.
My concern is that, if I go to CPC, how much of my assets will they make me invest? They need $250K in investable assets?
How much funds is required in the account at all times to remain a CPC? I'm looking to buy two homes in the next 5-8 years.

  
@ismael - you don't need to invest anything, they require 100k to get started (any accounts) and 250k by the end of the year but I've heard they are flexible on this. If you are buying a home it's really good since their closings and mortgages are at preferred rates so you get big discounts. You can break your 250k up exactly as you listed it above and still qualify.

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So, after paying the wrap fees, can you trade as much as you want for free?

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TravelerMSY said:   So, after paying the wrap fees, can you trade as much as you want for free?
  Exactly, they cover all the trade fees but I don't think they let you trade freely by yourself. It seems that only their money managers can control the trades for these managed accounts.

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I would expect the underlying JMP funds they put you in also have a cost as well (ER). Or do they included the fund cost in their 1.6% management cost?

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jalm1 said:   I would expect the underlying JMP funds they put you in also have a cost as well (ER). Or do they included the fund cost in their 1.6% management cost?
  Yep, all the ER fees and fund fees are covered by the 1.6% management cost so it's not as bad as it seems although it does seem to be on the higher side of management costs. The funds are pretty diverse, only 10 JMP funds right now out of 36 total funds. There's a good mix of diversity with Vanguard PIMCO, iShares, Sachs, Harbor, etc. They're not afraid to sell off the underperforming funds and in the past week they recently sold off a lagging JMP fund and put the earnings into a different brand's fund.

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Hey I worked for JPM for 14yrs if you want to know the really truth about what they are doing contact me at jc4life33@yahoo.com
1) you are being over charged for these services
2) Chase has a branch on every corner they need your assets to pay for their retail space. In the town I live in they have over 70 chase branches-

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nuttyinvestor said:   
jalm1 said:   I would expect the underlying JMP funds they put you in also have a cost as well (ER). Or do they included the fund cost in their 1.6% management cost?
  Yep, all the ER fees and fund fees are covered by the 1.6% management cost so it's not as bad as it seems although it does seem to be on the higher side of management costs. The funds are pretty diverse, only 10 JMP funds right now out of 36 total funds. There's a good mix of diversity with Vanguard PIMCO, iShares, Sachs, Harbor, etc. They're not afraid to sell off the underperforming funds and in the past week they recently sold off a lagging JMP fund and put the earnings into a different brand's fund.

  

the mgmt fee is usually always separate .. i highly doubt that'll cover underlying fee expense.  I'm about to open an account with Schwab - managed account with 1% fee .. but you still pay the underlying fund expense or ETF expense (although for mutual fund, they'll get  you in institutional class which would be slightly lower fee than regular class).

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I have never seen such stupidity. Nobody even knows what CPC is obviously. Look at the numbers for how active management by qualified portfolio managers has outperformed all you moron vanguard investors. Good luck idiots.

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Ummm, how do you know which ones are going to outperform ahead of time?

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What did Groucho Marx say? I refuse to join any club that would have me as a member.

You ought to know that bringing $250k or $1M is small potatoes in this world and doesn't get you access to any investment worth having. Bring $10M and maybe you can get into a hedge fund. Except oops, those have lower returns than the markets, too. Bring $100M and you can get into the best hedge funds which might actually surpass the public markets net of fees, but no guarantees.

Most of this small scale private banking stuff is just marketing to the aspiring mass affluent. They are not offering you access to anything special except the belief that you are, in fact, special. If you have weird needs like making 50 international wires a month or something then private banking may be your ticket... except apparently they kick you out of the club when you actually try to use your benefits!

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b'h
hi
I was recently talking to a chase private client banker to get me on to their platform...
he claims their is no such thing to close all the accounts without specific reasons like fraud money laundry etc
I am considering to sign up but after looking at the forum I am afraid that this will happen to me as well...
did you ever work out your issue with CHASE or was it a dead case...?

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Chase can close all of your bank accounts without giving a reason.  Of course there IS a reason, but they need not say what that is.
 

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Titus15 said:    I have about 450K of investment (IRA-100K, 401K- 200K, 150K- personal investment (stocks, mutual funds and bonds). I really don’t have time to research my investment so I usually change my investment portfolios once a year. The average return for last 3 years was about 10%. 
May I ask what your asset allocation is? 10% seems really low for the past 3 years, unless you're heavily into bonds.

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B"H
Dear joeshmo2012
I would like to contact you for a fast few private questions about chase
I am seriously considering cpc but your case is concerning me
Please call me ASAP on my mobile# +1917-682-2340

Thanks
Barry

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Private Client is great. Dont know if you have joined or not. I think to join, most importantly is if the banker or the financial advisor you work with knows you and your family's financial goals. They sort of customized it for me when I joined. For you, it will probably be savings for those two kids and maybe helping you out with the retirement. I joined mainly because of service, and the convenience of chase private client. I used to have to go all the way downtown just to meet with my schwab advisor. Now I can just.... go into my local branch....or just call them and I get everything I need. I feel like everything is in one place. I love it. The banking side has some upgrades, so those were nice touches to it. 

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Chase Private Client is great if you like paying 2.6% for a mutual fund???? I worked for the company for over 14yrs if you want to have your money managed for less fees and get better personal attention. Contact me.
I can show you have these fees will destroy your portfolio over time.

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barryakaye said:   b'h
hi
I was recently talking to a chase private client banker to get me on to their platform...
he claims their is no such thing to close all the accounts without specific reasons like fraud money laundry etc
I am considering to sign up but after looking at the forum I am afraid that this will happen to me as well...
did you ever work out your issue with CHASE or was it a dead case...?

  Generally, both you and your bank have the right to close your deposit and credit card accounts at any time for any reason.  Read your account agreement.

Since the closure analysis and decision usually comes from a different department, it's unlikely a Chase Private Client Banker will be able to protect you from account closure or do anything about it.  IMO, these types of programs couldn't care less about the banking platform and the relatively minuscule perks it offers.  Their goal is to move your funds into their much more profitable investment area, preferably earning even more by managing your funds for you.  Your Private Client team will probably include both a banker and someone who's registered to sell securities.

I'd analyze very carefully if it's financially worthwhile to bring $XXXK of funds to Chase Private Client or similar programs.  Interest rates tend to be non-competitive, and investment fees and expenses can be relatively high.

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Always thought Chase Private Client sounded like an exclusive escort service or something. I'm sure it's no less of a shakedown.

In addition to the quarterly fee - which I'd be surprised if it's less than 1% annually for anyone with less than $1MM in investable assets - the manager will be putting you in actively managed, high-fee funds because Chase can collect on 12b-1 fees embedded in those funds. Over time this will eat up 2-3% annually of your return which will amount to hundreds of thousands of $ over the span of 20-30 years. I understand everyone's time is valuable but you need to know that only YOU (despite what any banker convinces you of) have your best interests in mind. A common misconception is that financial advisers have some kind of "duty" to act in your best interests. They DON'T. They are not the same in that regard as a lawyer or trustee and after they've fleeced you for 25-30% of your return, you will have no recourse. It really does not take long to do some reading on asset allocation, rebalancing and retirement strategies to reach your goals. I suggest you take it seriously because it is more important than the amount of time it takes unless you are earning Fortune 500 CEO-level wages.

FWIW, the only circumstance in which I'd utilize the services of a high-level "banker" is if I had $10MM+ to invest. High level wealth advisers have contacts to get you in the best hedge and private equity funds. The people in those funds have contacts in the underwriting and M&A world, and often achieve their high returns by utilizing inside information. Yes the game is rigged, and you cannot become a part of it unless you have the requisite millions to invest.

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I am a Chase "private client". I have an investment portfolio and a middling size IRA with them. Mostly I went with them because my business and personal checking accounts were with them. I do get very good service on the banking side. Since they are linked to mine, my three kids get the benefit of also having "personal client" checking, savings, credit card and investment accounts with better service than they would otherwise based on the amounts of money they have. However I have my 401k profit sharing and a larger IRA with Morgan Stanley. The intention was originally to compare the two but that has been hard given the ways I have each set up. Chase appears to be charging me about 1% taken out monthly. Like abracadabra1, I too have a mix of Chase and other accounts. I Can't really tell what they may be making transactions in the 4 or 5 JPM funds in the mix.

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This sounds like an advertisement for JP Morgan ... am I missing something?

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uberjc4life is right.
1.6% annual fee, and it does NOT cover internal fund fees. Internal fund fees run, on average, 1%. Roughly 35 funds in the portfolios and approximately 1/3 of them are JPMorgan Funds. The advisors are morons who have absolutely nothing to do with the management of the portfolios. Those of you who are in CPC, if you want proof, ask your advisor why he chose a particular fund for your portfolio. You'll get a blank stare because he can't tell you. He can't tell you because he didn't select it. These are very low information advisors who are taught scripts to sell these products. Their job is to steer clients to these portfolios managed by the mother ship. The mother ship keeps most of the advisory fee and all of the 12b1 fees generated by the internal fund fees. The advisors aren't smart enough to see it, but they're getting hosed too.

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In the course of my early discussion, I noted that the 'universe' of products was rather circumscribed! He said thar CPC ADVISORS is not authorized to offer any other products tham JPM one. I was shocked! So I retorted, "so we can't compare you products to vanguard wesselly or Berkshire or another?" His response was that he can discuss any product, and even trade any product for my account.... Be only if I ask! Very telling....

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Way back in this thread some dude said he was paying 40 bps management fee. YEH RIGHT. All in you are looking at over 1% guarenteed.

I was the advisor for 4 years for the largest chase branch in the state. They were almost forcing me to sell proprietary product. The woman that took over for me when i left had zero experience and used to be my banker. What a joke.

Cpc peddles proprietary product with a sprinkle of outside funds. Don't be an idiot. Go work with an dependent that can offer the best product across all asset classes.

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I am always leery when a banker or saleman wants to give me "special" treatment after knowing I have a large bank account.

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The 1.6% (or 0.4% per quarter) is for first $250K. 1.35% for the next $250K. 1.1% for the next $500K. 0.86% for over $1,000,000.So for one quarter with assets of 100K, the fee would be $400 for that quarter. 

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For people who actually took part in CPC: How much of a discount on mortgage rates did you get or were you offered (e.g. closing costs waived, 0.5% under best nationally available rate, etc.)

Could be worth it for a 30year fixed if you take your money out after closing on a house (or multiple houses)

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I've been told 4.0 vs. 4.58 elsewhere. I'm waiting for more info.

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I recently got pre-qualified for a mortgage in CPC. The rate wasn't any different than other reasonable alternatives, but included some money toward closing (I.e., I got negative 0.5 points or so for a 4.5 rate). There might have been a $750 cash toward closing bonus, too. Finally, the banker intimated that if I also applied elsewhere and found a better deal they might dicker with me. Two other points worth mentioning are that Chase tends to hold mortgages on its books  and they currently have a program that rebates some small percentage of P&I annually (maybe a max of $250). Had I bought a home I probably would have made the effort to apply elsewhere and forced a little more favorable deal, but ultimately gone with Chase because I have all my accounts there.

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Just to share my experience with Chase.... I ended up with Chase involuntarily... started with First City Texas in 1990, a consumer bank, who got bought by Texas Commerce, a business bank. Chase then bought TCB. My experience has been mixed. For a few years Chase seems genuinely interested in Consumer Banking, then not for a few. And then it does again. I recall moving the 4 saving accounts for my 4 children from Chase to Wells Fargo because Chase starting imposing fees on accounts for 2 year olds that did not meet the minimum balance. Worse, for a Credit on Demand account that was originally opened with First City, with a contract interest rate of prime ++, and which TCB did honor, Chase started to decrease my $15,000 credit line steadily as it was paid off, so I could not use the available credit anymore. Chase pretended it was due to my creditworthiness, but the sad fact is that the variable contract interest that they were supposed to honor when they bought TCB was simply not good enough to honor anymore. Shameful. My kids are grown now, using Wells Fargo and other banks. But I am still mainly with Chase due to experience with a few good people, and the fact I am working overseas, not the bank itself. Recently, Chase would not let me wire $6000 per month overseas automatically on a monthly schedule, as they had. Now I have to execute it each month at the exact time it needs to be sent. Anyway, I was recently offered Chase Private Client while online. Has anyone determined if their fees management fees are 0.4% per quarter, which is more than 1.6% per year? Or 0.4% per year taken quarterly. Working overseas I can't visit a branch for awhile anyway.

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I just spoke with them recently. It's 1.6%/yr payable quarterly for the first $250k, and goes down to .85% yr for marginal amounts above $1mm. My guy offered to discount the initial down to 1.44%, but it still seems pretty high. If you have 1mm invested, you'll end up paying something like $12k/year for management service fees. I can't imagine what they'd do to be worth that much.

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Their service is just overrated , not good at all. I should never go with them to control my 401K account, It was very stupid on my side to agreed with their adviser. 





 

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I had $ in a fund my cousin who took a "seminar" recommended, Index funds my sister had, more into a family friend who had done well, etc. Then after a 2009 layoff and researching where to put the 401K, i became a CPC. I do get upset at the management fees but at least every year, like visiting a dentist, we review accounts, look at forecasts, review new perks .... 

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