American Express & Vanguard have announced a new product offering called ‘INVEST For Amex By Vanguard‘.
- Management fee of 0.5% (no fee for first 90 days)
- American Express Membership Rewards bonus based on the average annual taxable assets in your account(s) managed by INVEST:
- Earn 5,000 points if you have taxable assets of at least $50,000 and up to $100,000
- Earn 25,000 points if you have taxable assets greater than $100,000 and up to $500,000
- Earn 50,000 points if you have taxable assets greater than $500,000
- Complimentary 30-minute consultation where you can talk with a Vanguard advisor. Ongoing consultations when you have $100,000 or more in your account(s) managed by INVEST
Can’t really see this being worth doing with the advisory fee of 0.5% (normally the Vanguard fee is 0.3%).
Hat tip to reader D G Liu
Hopefully a cobranded Vanguard Platinum is forthcoming [licks chops in military]…
Vanguard letting Amex in their bed? Bad move, Vanguard…will our retirements be clawed back too?
Don’t forget the extra 0.15% (max $75) bonus to your savings account returns.
“With INVEST, you can earn a cash bonus based on the average daily balance in your American Express High Yield Savings Account over the 12 months prior to your INVEST anniversary. Get $15 for every $10,000 (up to $50,000) in your Amex Savings account – that’s a cash bonus of up to $75 annually. Limit one bonus per savings account.4”
So… what’s the minimum balance/fees in INVEST? (A: Looks like $3000)
Net advisory fee is expected to be about 0.45% (reduced from the gross of 0.50%)
So… for a $3000 minimum in INVEST (to prevent unenrollment), at 0.50% (worst case, assuming no credits on the GAF) will cost you $15, but your $50k HYSA balance could potentially earn an extra $75.
Maybe a good option for those looking to make a big purchase soon, but most people with those assets would probably not want to keep 50k+ in cash.
That $75 bonus on $50,000 is 0.15% (or 0.12% after subtracting the $15 cost). The HYSA is currently only giving 0.50%, right? So this would make it 0.62%, which still isn’t good.
makes no sense. the normal Vanguard advisory fee is 0.3%. So this Amex partnership fee goes up to 0.5%? in exchange you get a few MR points and the privilege of knowing Amex is taking a cut?
Anybody combed to find the deal Amex x Vanguard is offering? It appears they’re overcharging for Amex coupon holders lol
Jacked up advisor service to 0.3% to 0.5% for Amex customers and pay Amex a kickback. It’s a big F you to customers since they can just go directly to Vanguard and pay 0.3% for the same service. Paying Amex for the privledge of being pimped out.
*Amex card holders
0,5%???? just terrible. sticking with fidelity.
Amex playing both sides (Schwab and Vanguard). These hoes ain’t loyal.
In investing world it’s pretty common to have mistresses.
Even if we ignore the management fee and the pathetic bonus, “Complimentary 30-minute consultation” is laughable. So, I pay you a fee to invest my money, and in return, if I need to consult with you, you’ll do me a favor and provide a “Complimentary 30-minute consultation” . What a joke.
That’s nothing compared to the points you can earn paying your tax bill the next time vanguard triggers a large taxable event in their target date funds!
That is only if you are stupid enough to have TDF in brokerage account.
They need to add a 0 at the end of those reward amounts for it to be even considered.