merrill lynch octave american express

American Express forum. Talk about AmEx credit cards like Blue, Gold, Platinum, Centurion, and more.
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samhradh
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Postby samhradh » Tue Jan 27, 2015 10:50 pm

The fee is high but easily offset by the credits and possible flight discounts. I imagine if you have 10+ million in assets than you probably fly more than the average person. I like the way this card is structured (not that I qualify).
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luvbullmarkets
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Postby luvbullmarkets » Fri Jan 30, 2015 6:02 pm

CarefulBuilder14 wrote:Keep in mind the real requirements! This card isn't for anyone with $10m - it's for people who have $10m and are willing to pay a big chunk of it over to ML each year.

1% of $10m is $100k in asset management fees.
Paying 0.1% of $10m for passive indexes is $10k, and a few hours of a tax planner's time can be had for a little bit more.

So unless your ML adviser can beat passive indexes by a wide margin (since you have to have to overcome higher management fees and tax inefficiency from higher portfolio turnover), the card comes with an enormous 'hidden' annual fee. I don't know many people that would pay almost $90k each year for a credit card.


Very well said.

The same thought process could be applied towards the Chase Palladium Card. I believe the requirement for Palladium is to have ~$40M invested at Chase.
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napsterdawson
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Postby napsterdawson » Fri Jan 30, 2015 7:28 pm

luvbullmarkets wrote:Very well said.

The same thought process could be applied towards the Chase Palladium Card. I believe the requirement for Palladium is to have ~$40M invested at Chase.


Hello LuvBullMarkets - You do NOT need 40M to obtain a Palladium Card - You need to give a minimum of 250K to Chase Private Client to manage.

luvbullmarkets
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Postby luvbullmarkets » Fri Jan 30, 2015 8:55 pm

napsterdawson wrote:Hello LuvBullMarkets - You do NOT need 40M to obtain a Palladium Card - You need to give a minimum of 250K to Chase Private Client to manage.


A review from the blog says $30 million.

http://creditcardforum.com/blog/jp-morgan-palladium-card-benefits/

No one knows quite for sure.
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CarefulBuilder14
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Postby CarefulBuilder14 » Fri Jan 30, 2015 10:29 pm

I've seen a lot of posts that say for the Palladium you need $250k at Chase, or $100k with the agreement to bring over another $150k soon. Nothing I've read is authoritative, and maybe the requirements have gotten stricter or looser over time.

Of course, the Palladium ($595 AF) is basically a CSP ($95 AF) with a Priority Pass membership ($99 AF + $27 per visit) and a few other miscellaneous but hard-to-value perks (like insurance if stuff is stolen from your hotel room). Also, unlike CSP, Palladium doesn't include dining as a bonus category.

It also has one-time "buy 25 hours, get 1 hour free" offer for hiring private jets. Each hour costs in the ballpark of $10,000. $10,000 is nice, but how many people are really going to be paying in advance for $250,000 of airfare?

Keep in mind the Amex Platinum ($450 AF) has the $200 airfare extras credit, and the choice of Pre-Check or Global Entry (about $25 per year). That cuts a $450 AF down to about $225 for the Platinum. Palladium doesn't offer those perks, as far as I'm aware.

CSP and Platinum can be great bargains for the right travelers. The Palladium has a lot more sizzle than steak.

I suppose it could be a good card for someone who flies 15+ times per year, likes airport lounges, and yet has no airline loyalty to warrant the perks of cobranded cards (which would be unusual).

My advice? Keep your investment expenses low. If you want, put some of the savings towards fees on cards with benefits you'll use.
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napsterdawson
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Postby napsterdawson » Sat Jan 31, 2015 12:56 pm

luvbullmarkets wrote:A review from the blog says $30 million.

http://creditcardforum.com/blog/jp-morgan-palladium-card-benefits/

No one knows quite for sure.


I know its 250k minimum and not 30M (like the review states, which was written back in 2011 - I know bc I remember reading it back then) because my guy at CPC told me - but don't take my word for it - if you click the link below:

https://www.chase.com/online/private_client/concierge-banking.htm


scroll down to "Exclusive Benefits & Privileges" and click under CC - you will see the CC they offer to their clients...


Then continue to scroll down to the disclaimer section in a grey and the first one marked "1" which reads, "An average balance of $250,000 required. Qualifying Chase deposits and investments include the following"


Just wanted to provide the most accurate information to readers out there, just as I would hope others would do.

Yeru
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Postby Yeru » Sat Jan 31, 2015 2:18 pm

I met with my financial advisor the other day and was thinking of going CPC but we postponed our decision and the more I did research the more unappealing I found CPC. I found that its much better and cheaper to invest in other places like individual companies or Vanguard funds. Vanguard funds blow the roof off anything JPMorgan has to offer at the moment

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Postby TheDakota » Sat Feb 07, 2015 1:24 am

I find it odd that on a credit card forum you're questioning the value of asset managers...(Goldman, ML, etc.) I won't get into a debate about that but let's just say that you should know that ML charges per trade not annual fees based on % of assets. For people who don't trade much, the costs can be quite low. Certainly far less than the figures you're pulling out from who knows where...

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CarefulBuilder14
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Postby CarefulBuilder14 » Sat Feb 07, 2015 11:57 am

TheDakota wrote:I find it odd that on a credit card forum you're questioning the value of asset managers...(Goldman, ML, etc.) I won't get into a debate about that but let's just say that you should know that ML charges per trade not annual fees based on % of assets. For people who don't trade much, the costs can be quite low. Certainly far less than the figures you're pulling out from who knows where...


I'm pulling them out of the WSJ.

http://www.wsj.com/articles/SB10001424127887323681904578640322042802396

http://sunlife.ewb.dowjones.com/Article/Default.aspx?an=J000000020130801e9810003d If you lack WSJ access, this should still work.

That's an article from late 2013 that says all of Merrill Lynch Personal Advisor's clients were facing a big fee increase. The fee rose from 0.65%-1% of assets to a range of 1% to 1.6% for people with assets under $2M. The fees could be negotiated lower, especially in larger accounts, but would still be substantial even above $10M.

If you're paying per trade using Merrill Edge, then yes, the fees would be much lower. It has a reputation for being (or at least, used to be) horrifically unreliable, though. And since the Octave card is invitation-only, it stands to reason that invitations would be probably reserved for their more profitable $10M+ customers. I'm not sure a Merrill Edge customer would be treated as favorably - or someone using a traditional broker who had set in place a commission schedule.

If you were able to get invited for / successfully request an invitation for the card without paying sizeable fees, then I'm wrong and it's not just for MLPA clients. I still think a combo of Amex and Chase cards can offer a better deal for a frequent traveler.

ccorso,

Are you paying a % of assets under management or commissions? Do you use MLPA, PIA (which looks like a lower-cost MLPA?), Merrill Edge, or US Trust? Did you get an invitation or requested a card?
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CCRider
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Postby CCRider » Sat Feb 07, 2015 2:04 pm

luvbullmarkets wrote:A review from the blog says $30 million.

http://creditcardforum.com/blog/jp-morgan-palladium-card-benefits/


No one knows quite for sure.


That blog review only says that Chase Private Clients with the card had an average of $30 million in assets, not that $30 million was a requirement for getting the Palladium Card.



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