Is private banking worth it?
I’d easily qualify for a private banking relationship but I’m trying to figure out if I’d get anything out of it. I had to move assets into Wells Fargo Advisors to get a mortgage discount, so it would be easy to qualify for a Wells Fargo Private Bank account but as far as I can tell the self service brokerage capabilities are way worse than Vanguard and most of the banking perks look like the perks I already have with my credit union checking account (free wires, ATM fees refunded, no foreign transaction fees, etc.) I’m pretty tempted to close those WF accounts and move everything back to Vanguard. Am I being short sighted or is private banking only useful if you need a lot of help managing your money (and are ok with losing a third of your annual returns for that help)? TC $750K, NW 3.5M mostly in index funds/ETFs #personalfinance #investments
Fidelity has 3% credit card for private wealth mgt. $2m in deposited assets needed. Better route is an RIA who’s been through several boom/bust cycles to navigate these times.
Put in BofA for all the perks, the credit card bonus is pretty good if you’re a premier member or whatever it’s called
I don’t think so, the perks are small at best and whatever gains you may get are eaten up by fees.
Get a Brokerage Option (or TD Ameritrade) inside Google 401k. Zero regrets from my side.
No need. I have some investments in ML that gives platinum honors for BofA. Do you get mortgage discount being in index funds? Otherwise what does anyone get from it besides the waived fees for banking services? They just want to skim off some of your profits. What are you getting in return? NW 2.5M also mostly indexing
What I have seen is some cost to getting a discount. Mostly it's either leaving too much cash in the bank or otherwise getting some advisor to skim off of your savings. I suppose you can do the math in that case and see if the discount outweighs it
In my case, transferring $1M assets from Vanguard to Wells Fargo Advisors reduced my mortgage interest rate by 0.5% (0.125 per $250K, with $1M max). That was worth $500 a month in interest payments potentially for 30 years so worth it. But now with the loan closed there’s no obligation to stay…
Ok I just looked them up, looks like theyd charge about $600 a year on 1M. If so yeah worth it when you used it. But you closed the loan so it isn't buying anything as far as I can tell
As long as I’m not actually using an advisor (I’m not) there are no significant fees.
I know some would advise splitting money across major brokerages because of SIPC insurance and theoretically less risk in not having all investments in one firm, and also to get a few hundred dollars sign up bonus. But if working with a "too big to fail' firm like Vanguard, Schwab, Fidelity, BofA/Merrill I wouldn't think it's any realistic risk. I suppose WF is in the same category.
Wells Fargo advisors is not private banking. Private bank is 10mill+. Often times when you get these promos you must maintain the assets for the life of the loan or they automatically raise the rate. Check your loan documentation to confirm. If you don’t lose the reduced interest rate then move your assets back to vanguard.
Interesting. Online searches said $1M in investment assets qualified for WF Private Bank. In my case, no loan interest rate penalty if I remove the funds.
Then yes I would move the funds.
I do have bofa platinum honors for the credit card bonuses. Extra 75%.