Exclusivity: Palladium vs Centurion

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MrMosby
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Exclusivity: Palladium vs Centurion

Postby MrMosby » Thu Feb 06, 2014 7:19 pm

I think I finally have an answer, everyone believes the Palladium is more exclusive than the Centurion, however I now know that is not the case.

The actual requirement is to either be a Chase Private Client or JP Morgan Private Bank Client to apply. While JPM requires millions of assets, CPC only requires you to have $250K of liquid/investable assets with Chase. They'll even allow you to come over with only $100K with a commitment to have $250K there in a year.

Now the catch is CPC customers who are investing money face pretty high fees. At the very bottom level of CPC it's 1.6% annually of your invested portfolio, which is very high. They additionally steer you towards their funds which are no-load funds but have higher expense ratios.

So from that Centurion's spend requirements and asset requirements would make the Centurion the most difficult US card to obtain. The Palladium is likely still the second most difficult US card to get, however, it probably still is more exclusive because most folks with the assets don't bother. If you do the math, someone with $250,000 invested with CPC would be paying roughly $4000 in fees. (Although for individuals with large portfolios the fee structure drops significantly, so someone with $1MM would pay 0.85% or $8500 a year).


Additionally if you look at any of the leaked benefits guides for the Palladium, the benefits aren't nearly as thorough as the Centurion and are more in-line with the Platinum (even with both of them having been reduced).


Hopefully this dispels some of the mystification around the Palladium as some of the CCF information isn't correct.
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Postby whit » Thu Feb 06, 2014 8:12 pm

I don't believe P is more exclusive then C but P is newer and not much in circulation

if you're talking about cpc versus private wealth management cpc is merely a bridge, that's why you see commercials on tv about it

there's a huge gap in between the everyday people and the actual rich, that's where cpc comes into play, the biggest factor being that it's a concierge type of..service being offered

as for the fees, you never just look at fees, if they're performing better then the lower fee products so that at the end even with the fees factored in you make more, what's the problem?

it's definitely not for everyone, and citi has citi gold and Wells Fargo has something similar

but if you already have 250k or over (some have millions without even converting)

why not? it's combination of deposits and investments and if you're already leaving it in deposits , upgrade so u don't get nickeled and dimed on wire fees and such

MrMosby
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Postby MrMosby » Thu Feb 06, 2014 8:40 pm

whit wrote:as for the fees, you never just look at fees, if they're performing better then the lower fee products so that at the end even with the fees factored in you make more, what's the problem?


True, there is a lot of good research out there that shows that it is difficult to consistently beat an index fund. Some do, but not many by 1.6%.

Most my investments personally are in various index funds with extremely low expense ratios (.05%-.12%). I looked into CPC and since I don't wire a lot of money it doesn't make sense for me to go over. I actually did a pretty extensive comparison, my current broker to CPC over the last 5 years and there was quite a disparity. And if I forecast that same model over the next 25-30 years it gets even larger.

Now the only thing I didn't do is forecast it from the perspective of someone that has >$1MM, maybe it would be closer in line, but the difference in rate of return in my model was still about 25-50 bips just glancing at the fees. But I'd be curious how that models out.

I'm assuming when your in JPM its a whole different ball of wax, but the point I was trying to make was people with $250K or more in assets can get the Palladium if they go to CPC, but I'm assuming most don't because they are middle class like me and $4000 a year to have someone manage my money to get that card doesn't make sense when my portfolio is performing quite well. I.e. making it not as exclusive as the Centurion, but likely more rare.
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FastSRT8
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Postby FastSRT8 » Fri Feb 07, 2014 2:02 am

I'll chime my thoughts to this thread.

For me, the P is more exclusive than the C. I have the C LOL.

The Cent is losing some benefits as we speak so the gap may be closing between benefits of the C and P. Not really a big deal for me as the benefits lost don't affect me (i.e. lounge access). Overall the Cent is a great card. Good balance between customer service and products offered.
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MrMosby
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Postby MrMosby » Fri Feb 07, 2014 6:18 am

FastSRT8 wrote:I'll chime my thoughts to this thread.

For me, the P is more exclusive than the C. I have the C LOL.

The Cent is losing some benefits as we speak so the gap may be closing between benefits of the C and P. Not really a big deal for me as the benefits lost don't affect me (i.e. lounge access). Overall the Cent is a great card. Good balance between customer service and products offered.


Fast you make it sound like you don't make the typical requirementsyou here, how did you get "invited"? Business Centurion?
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Robrus1
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Postby Robrus1 » Fri Feb 07, 2014 8:52 am

MrMosby wrote:Fast you make it sound like you don't make the typical requirementsyou here, how did you get "invited"? Business Centurion?


What do you mean by make the typical requirements? Ol' Fast has a personal Cent, he has posted pics before. If I were offered both cards and could have one, I'd take the Cent hands down. I wouldn't have a card for exclusivity though, it's all about what's beneficial to me, and I think the Cent card would be that out of the two. I do think there are probably more Cent cards out there than Palladium, for good reason. I'd rather have my Platinum than the Palladium.
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Postby Z06Biker » Fri Feb 07, 2014 12:08 pm

Interesting to hear that the Centurion is losing the lounge access perks too, even though as much could be expected with the same having gone for the Plat.

With all the uproar about loss of privileges for the Platinum, I guess nobody has really stopped to ask -- what is the Centurion losing as well?
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Postby MrMosby » Fri Feb 07, 2014 1:17 pm

Robrus1 wrote:What do you mean by make the typical requirements? Ol' Fast has a personal Cent, he has posted pics before. If I were offered both cards and could have one, I'd take the Cent hands down. I wouldn't have a card for exclusivity though, it's all about what's beneficial to me, and I think the Cent card would be that out of the two. I do think there are probably more Cent cards out there than Palladium, for good reason. I'd rather have my Platinum than the Palladium.


I know he has one, he just makes it sound like it's not as hard to get as everyone thinks.
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Robrus1
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Postby Robrus1 » Fri Feb 07, 2014 3:16 pm

MrMosby wrote:I know he has one, he just makes it sound like it's not as hard to get as everyone thinks.


Oh. It seems like it changes with the Cent card. It seems like some years they invite more people than others. That's one difference from the Palladium, seeing as anyone who gives them enough money to invest can get one, it doesn't work that way with Cent, so some years they may not invite anyone, leading them to control the exclusivity as they see fit. It's certainly possible that Fast got invited when they were inviting more people than they are now. After reading your post, I got confused earlier when I read "here" as "here" and not "hear."
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Postby MrMosby » Fri Feb 07, 2014 7:55 pm

Robrus1 wrote:After reading your post, I got confused earlier when I read "here" as "here" and not "hear."


That's what I get for replying from my phone.
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