Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Have you taken advantage of brokerage bonuses?
Old 10-01-2019, 09:58 PM   #1
Recycles dryer sheets
 
Join Date: Jun 2018
Posts: 196
Have you taken advantage of brokerage bonuses?

I see both Ameritrade and E-Trade are offering a $2500 bonus for setting up an account over $1 million.

Other than the hassle of having multiple accounts, is there any reason not to take advantage of these offers?

Does it prevent moving back into Fidelity in a year to take advantage of their offers?
__________________

Kelor is online now   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-02-2019, 02:33 AM   #2
Recycles dryer sheets
 
Join Date: Sep 2016
Posts: 133
I think there is no reason not to take advantage of the cash back if the transaction was already within your purview of expected behavior. I have received the minimal (much smaller) bonus when transferring some cash into one of these brokerages a few years ago.

The terms of the $ bonus should be spelled out in the small print of the offer. Most likely you will need to keep the assets with the firm for at least 6 months or a year. Afterwards you are free to move the money.
__________________

triangle is offline   Reply With Quote
Old 10-02-2019, 03:07 AM   #3
Thinks s/he gets paid by the post
gauss's Avatar
 
Join Date: Aug 2011
Posts: 2,639
You might not want to close the original account, but rather keep a nominal amount of assets there. That way, if/when you move the assets back you will have your long term statement/transaction history still available going forward.

-gauss
gauss is offline   Reply With Quote
Old 10-02-2019, 04:04 AM   #4
Recycles dryer sheets
 
Join Date: Sep 2013
Posts: 86
While TD Ameritrade was in the process of acquiring Scottrade I saw an add offering $600 to transfer an account of my size to TD, so I went ahead and did it. I collected the $600, held the account the required 12 months and then transferred to Fidelity which is my favorite. Didn't like TD.
upset264 is offline   Reply With Quote
Old 10-02-2019, 04:19 AM   #5
Thinks s/he gets paid by the post
DrRoy's Avatar
 
Join Date: Dec 2015
Location: Michigan
Posts: 2,936
I collected from Fido about 2 years ago.
__________________
"The mountains are calling, and I must go." John Muir
DrRoy is offline   Reply With Quote
Old 10-02-2019, 08:09 AM   #6
Full time employment: Posting here.
 
Join Date: Jul 2013
Posts: 830
We received $2500 from Fido 6 years ago.
mrfeh is online now   Reply With Quote
Old 10-02-2019, 08:38 AM   #7
Moderator
Jerry1's Avatar
 
Join Date: Nov 2014
Posts: 3,507
I don’t think I’d go to the trouble for 1/4 percent. However, I don’t play the credit card rewards game either. $2,500 is real money, so it’s worth considering, but I’d probably only do it if I was planning on moving anyway.

Maybe offers like these can work both ways. Anyone ever ask their broker what they’ll do for you to stay with them? Maybe there’s something in their fee arrangement they can work with to keep you around.
__________________
Every day when I open my eyes now it feels like a Saturday - David Gray
Jerry1 is online now   Reply With Quote
Old 10-02-2019, 08:46 AM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 24,669
+1
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...target 65/35/0 AA
pb4uski is offline   Reply With Quote
Old 10-02-2019, 01:33 PM   #9
Thinks s/he gets paid by the post
 
Join Date: Jun 2017
Location: Western NC
Posts: 1,833
Got mine from Fido earlier this year.

Fido even recently rebated me the transfer fee ($125) that another brokerage charged to move an old IRA from that broker into my Fido portfolio.
ncbill is online now   Reply With Quote
Old 10-02-2019, 01:52 PM   #10
Dryer sheet wannabe
 
Join Date: Feb 2008
Posts: 24
I have account at Etrade and have twice asked for and got $2500 bonus to stay. Basically I said look if I move to TD Ameritrade $1M + they would give me $2500 and so my account manager was able to just give me that money to stay. A closed mouth don’t get fed.
rai-zero is offline   Reply With Quote
Old 10-02-2019, 03:21 PM   #11
Thinks s/he gets paid by the post
 
Join Date: Jun 2016
Posts: 3,362
I did the Fido one a couple times. Beware I had to pay taxes on the bonus.
COcheesehead is offline   Reply With Quote
Old 10-02-2019, 03:28 PM   #12
Recycles dryer sheets
 
Join Date: Nov 2017
Location: solomons
Posts: 209
So what did you do with it? Blow the dough or reinvest, I WOULD BLOW THE DOUGH, its only $2500!!! Trying to decide if i want to move my TSP over to my FIDO rollover or not? Maybe to make it an even 1M and leave the rest in TSP G fund....

I don't have Roth account yet, so that is a question i have for my new guy, is my accounts a summation of Roth and rollover?
f35phixer is offline   Reply With Quote
Old 10-02-2019, 03:31 PM   #13
Thinks s/he gets paid by the post
RobbieB's Avatar
 
Join Date: Mar 2016
Location: Central CA
Posts: 4,882
Nope, never did it and never will. I change companies because of non-performance or incompetence or policies I don't like. Not because some other Co. is waving dough in my face.
__________________
Retired at 59 in 2014. Should have done it sooner but I worried too much.
RobbieB is offline   Reply With Quote
Old 10-02-2019, 03:40 PM   #14
Thinks s/he gets paid by the post
euro's Avatar
 
Join Date: Oct 2015
Posts: 1,308
I did collect such a bonus from Fido last year when I moved my old 401k from ex-employer over to to them. If you are going to transfer anyway then, why not take the cash. That said, the whole process of triggering the transfer, 401k custodian issuing a check, sending it to me by mail, me taking it to the local Fido office and Fido then processing the deposit, meant that my money was out of the market for probably close to 10 days. I (deliberately) did NOT track whether the market went up or down during that time, but with a balance of about a million, those market swings absolutely DWARFED the $3000 bonus. So, what I'm trying to say is: I would NOT transfer such a large amount just to collect a small bonus - the risk of losing far more than the bonus amount by being out of the market for just a few days, makes it not worth the effort. Perhaps you can avoid that if you can pull off an in kind transfer (I could NOT because the 401k did not offer that option - check only).
euro is online now   Reply With Quote
Old 10-02-2019, 03:53 PM   #15
Recycles dryer sheets
LarryMelman's Avatar
 
Join Date: Jul 2019
Location: Phoenix
Posts: 121
Until earlier this year, I had 3 accounts at Fidelity (a taxable account, a TIRA and a Roth IRA... combined value about $2M). Despite that and being a Fidelity customer for over 30 years, they told me "my relationship was insufficient" to qualify for the free TurboTax deal that they had given me for the previous several years. I moved the IRA's in-kind to Schwab (where I already had a smaller taxable account) and got $2500 for it.

Meanwhile, I'll be leaving my job soon, and needing to roll over my 401k. Schwab said I couldn't get another bonus this year (or for a year? I forget) but Fidelity would be glad to take it and give me 500 free trades over a 2 year period.

I found moving an account to be a bit of a hassle. Fractional shares had to be sold, and it took up to a quarter for some dividends to be paid into the old account and swept over to the new. But for $2500 I can put up with some hassle.
LarryMelman is offline   Reply With Quote
Old 10-03-2019, 10:42 AM   #16
Recycles dryer sheets
 
Join Date: Jul 2019
Posts: 54
Quote:
Originally Posted by euro View Post
I did collect such a bonus from Fido last year when I moved my old 401k from ex-employer over to to them. If you are going to transfer anyway then, why not take the cash. That said, the whole process of triggering the transfer, 401k custodian issuing a check, sending it to me by mail, me taking it to the local Fido office and Fido then processing the deposit, meant that my money was out of the market for probably close to 10 days. I (deliberately) did NOT track whether the market went up or down during that time, but with a balance of about a million, those market swings absolutely DWARFED the $3000 bonus. So, what I'm trying to say is: I would NOT transfer such a large amount just to collect a small bonus - the risk of losing far more than the bonus amount by being out of the market for just a few days, makes it not worth the effort. Perhaps you can avoid that if you can pull off an in kind transfer (I could NOT because the 401k did not offer that option - check only).
This happened to me when I rolled over a 401k to an IRA but it hit me on the positive side. If I recall my money was out of the market for 7-10 days and I gained a few percent after the transfer. If I was transferring a larger sum I think I would be hesitant to do it simply for the bonus. However asking my current provider to match the bonus to stay seems like a no brainer. Thanks for that tip.
upupandaway is offline   Reply With Quote
Old 10-03-2019, 10:52 AM   #17
Thinks s/he gets paid by the post
Sojourner's Avatar
 
Join Date: Jan 2012
Posts: 1,147
Quote:
Originally Posted by Kelor View Post
Other than the hassle of having multiple accounts, is there any reason not to take advantage of these offers?
IMHO, there's no reason not to take advantage of these offers from time to time. It's basically free money, and the amounts are non-trivial. I moved a portion of my assets from my long-time brokerage to Ally Invest last year and received $1,200 for doing so. I spent a grand total of about one hour (maybe 90 minutes) filling out the forms online and keeping track of the transfer, etc. If you ask me, I'd say making over a thousand bucks for less than two hours of easy "work" is a pretty sweet deal.
__________________

Sojourner is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Volunteers Taken Advantage Of Teacher Terry Other topics 99 05-19-2019 08:39 PM
Brokerage New Account Bonuses Debinnov a FIRE and Money 34 11-18-2018 08:00 PM
Brokerage Bonuses - Fido Disappointed FIRE and Money 23 06-05-2015 03:19 PM
Have you taken a promotion you regretted? Boose Young Dreamers 11 02-07-2012 09:53 AM
Thanks to you all that have taken the time to roger FIRE and Money 2 12-11-2003 05:53 AM

» Quick Links

 
All times are GMT -6. The time now is 09:05 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2020, vBulletin Solutions, Inc.
×