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Chase Private Client Review, Requirements and Fees

JP Morgan Chase Private Client review for 2018: account requirements, minimum balance, managed account investment fees, high net worth customers brokerage account. Chase Bank Private Client service credit and debit cards, banking rewards, and unlimited checking.

JP Morgan Chase Private Client Requirements

JP Morgan Chase Chase Private Client is the full service private banking version of the plain vanilla Chase bank account. The only Chase Private Client requirement is to have a regular Chase bank account with a minimum balance of $250,000 or above.

Chase Private Client No Pre-Set Spending Limit Cards with Rewards Points

The main thrust of the Chase Private Client account is a comprehensive suite of IRAs and Brokerage accounts with credit cards, lines of credit, and checking added for good measure. While the checking and credit cards that are offered by Chase Private Client are essentially standard Chase cards, the Chase Private Client credit card offers no pre-set spending limit. In addition to the no pre-set spending limit, the card also acts as a rewards card. Chase Private Client rewards cards users collect “points” as they use the card – the more that is charged, the more points earned. The points can add up fast, with extra points earned from goods and services that are often times associated with High Net Worth clients. The list includes Airlines tickets, high end hotel stays, cruise tickets, etc., all offering 2x to 3x the usual accumulation of points per dollar spent.

Chase Private Client – Full Service for No Additional Costs

Chase Private Client account holders will have full access to unlimited checking, free checks, and unlimited domestic incoming and outgoing Fed Funds wires on all Chase Private Client accounts. Setting up the wire service is easy, and is best done by going to the nearest office and having a Private Banker filling out all forms and paperwork. It is best to have a Private Banker set up the initial wiring paperwork, as the forms tend to be tricky and in no way intuitive. Once the initial paperwork is set up, and the first wire is completed and confirmed, any additional wires made to or from this Fed Funds address are easily arranged with a phone call to a Private Banker.

Chase Private Client Managed Brokerage Account

The core of the Chase Private Client account is the asset management function of the account. While the Chase Private Client account offers cash access with debit, checking and credit cards, the client will be advised to place the bulk of the funds in the account into a version of Chase’s managed money program. This means that while the client will have full access to the cash portion of the account, the securities portion of the account will be placed in a discretionary account that will be fully managed by Chase.

In the typical brokerage account, the client initiates all buy and sell orders of all securities into and out of the account. The brokerage account holder may ask for advice from the broker servicing the account, but for the most part the ultimate decision of what securities to buy and sell and how much of each is to be determined by the account holder.

Things are different with the Advisory role of the Chase Private Client account. With the Advisory arrangement, the money is placed in an account and managed by financial professionals. These Chase finance professionals structure and maintain the content of the client’s investment portfolio to meet the risk/reward profile of the client.

The risk/reward profile of the client is carefully determined at the beginning and throughout the client banking relationship. This profile is found out by the consultative process of the Private Banker including a careful question and answer process.

Chase Private Client Fees

Chase Private Client is essentially a wrap account. This means clients will be charged a flat rate for the total household assets under management. All funds in the household will be included, Checking, Credit, Taxable, and IRA’s. The flat rate for the account is 1.25% of assets yearly, but billed quarterly. This is expensive but is in-line with UBS, Morgan Stanley, and Merrill Lynch for similar services. When compared to the price of mutual funds that might be purchased independently by the account holder, the fees are very high: while some Class – A, B or C mutual funds can have management fees of upwards of 2.25%-2.5% per year, most mutual funds purchased through a brokerage firms such as TD Ameritrade or will have fees of around 0.10%-1.00% per year.

Is Chase Private Client Worth It?

Overall Chase Private Client offers house holding of checking, credit, and brokerage accounts to High Net Worth account holders, with a specialty of Managed Money Accounts. Fees in this type of account are always high, but the account comes with extra benefits such as free wires and no pre-set spending limit credit cards.

Top Brokers Offering Investment Advice

Several popular brokerage firms offer resources for both do-it-yourself traders and investors who need a little more assistance. In particular, investment advice can be obtained at Fidelity, TD Ameritrade, Schwab, Vanguard, and E*Trade. While there's usually a charge for this service, it may be of value to some people.

Fidelity Investment Advice

Investors at Fidelity can invest on their own or reach out for some assistance. The firm has 180 brick-and-mortar locations across 39 states. Financial advice can be obtained at one of these offices or over the phone 24 hours a day, 7 days a week. Fidelity offers some investment advice for free. Calling the broker with specific concerns and questions is a good place to start.

Managed accounts are also available with the company. A simple computerized management service called Fidelity Go costs just 0.35% annually. A minimum balance of $5,000 is required to begin the service. Human advisors who invest in stocks and mutual funds cost a little more (0.55%–1.50%) and require a deposit of at least $200,000.

Learn more in Fidelity Investments review »

TD Ameritrade Investment Advice

Like Fidelity, TD Ameritrade also offers robo portfolio management. The company's service is 5 basis points cheaper per year. Called Essential Portfolios, it invests in low-cost ETF's, as does Fidelity Go. TD Ameritrade also has investment professionals available for in-person service at its 500+ branch locations and with its affiliated company Amerivest.

Learn more in TD Ameritrade review »

Vanguard Investment Advice

Vanguard Personal Advisor Services is the name of the broker's investment advisory business. The firm offers assistance with educational planning, retirement assistance, and on-going investment advice. An individualized financial plan is also available. The investment advisory service costs only 30 basis points, but requires a steep $50,000 account minimum. There are no Vanguard brick-and-mortar locations, which may be a deal killer for some investors who want in-person financial advice.

Learn more in Vanguard review »

Charles Schwab Investment Advice

A computerized account management service called Intelligent Portfolios is available at Schwab. Curiously, the service is free. The broker claims it can do this by making money from the Schwab and non-Schwab ETF's that the service trades, from free cash balances (which make up a large 6-30% of the account's value), and from order routing. Seasoned investors will recognize those variables as red flags; although if the 0% management fee is worth it to you, you could give it a try. The broker does have human advisors that offer financial planning and account management, starting at just 0.90% per year.

Learn more in Charles Schwab review »

E*Trade Investment Advice

Financial consultants at E*Trade can be reached by calling 1-866-484-3658. The broker does not charge for the service. E*Trade claims to be objective in its advice because it doesn't offer proprietary funds. A robo management service costs just 0.30% per annum.

Learn more in E*Trade review »

Stock Brokers Investment Advice Summary

Financial planning and a spectrum of portfolio management services can be obtained at America's widely-used discount brokers. If you do decide to hand over your assets to an investment advisor, be sure you know what the exact fee schedule will be and what services you'll be getting in return. Also be sure you know how the company will handle any potential conflicts of interest.