Does Chase You Invest offer buying of partial (fractional) shares of high value stocks such as Berkshire Hathaway (BRK.A), Amazon (AMZN), Google (GOOG), or Facebook (FB)?

Buying Fractional Shares of Stock on Chase You Invest

You cannot directly buy a fractional share of stock (such as Berkshire Hathaway or Google) on Chase You Invest or any of its traditional competitors such as TD Ameritrade, Fidelity, or Schwab. However, you can invest in partial shares of stocks by using a $0-commission brokerage firm called Public.com.

Open Public Account

Free stock bonus! Stock, ETF, partial shares trades with $0 fees.

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Chase You Invest IRA Fees

Most people are familiar with Chase Bank’s offering of deposit accounts, but what you may not be aware of is their investment platform. Chase You Invest is the bank’s brokerage arm and it offers most basic brokerage accounts, including the taxable account and Traditional and Roth IRAs. This article will go over their IRA accounts and the fees they charge.

Types of IRAs at Chase You Invest

Chase offers the two main types of IRA accounts – Traditional and Roth – with the main difference between them being when you realize the tax savings. With a Traditional IRA, all of your contributions have to be pre-tax, which means you won’t pay any income taxes on the income that you contribute in the current year. However, once you retire and begin taking money out of a Traditional IRA the full amount you take out will be taxed as ordinary income, both your contributions and capital gains.

If you choose to open a Roth IRA with Chase you will also realize tax benefits, but not until you retire. With a Roth IRA, all your contributions must be made with after-tax income so there are not tax savings during the years you make contributions. But once you withdraw from your account during retirement you won’t owe any taxes, not on your contributions or capital gains. The tax benefits make a Roth IRA ideal for those who are currently in a low-tax bracket and expect to be in a higher one later in life.

Chase Brokerage Investment Fees and Rates

1) Mutual Funds: $0 per trade for no-load funds. There are over 2,000 of funds to choose from and the rate of return differs for each fund. There are few different ways to get into this investment. The most common is meant for the long term, and a client pays a fee upfront ranging from 3.5 percent to 5.75 percent of amount invested. This is called a "front load fee". For a short-term option, there is no fee to get into the fund but there is a fee if you withdraw cash within first year. That early withdrawal fee is percentage of investment. The expense on a mutual fund is less on a long term option.

2) Annuities: standard fees from 1.5% to 3% annually, depending on many different variables.

3) Stocks: $9.99 per online trade for up to 1,000 shares, plus $0.02 for each share in trade over 1,000.

4) CD’s: rates right now are 0.25% for a year.

5) Professionally Managed Accounts: depends on many different variables. Read Chase Private Client review.

6) Money Market Account: the rate is 0.10%.


Pros and Cons for Each Product

1) Mutual Funds:

Pro: A potential higher rate of return over a CD or money market.
Con: Fees are charged for owning a mutual fund and there is a risk, degree of which depending on the fund invested.

2) Variable or Fixed Annuities:

Pro: It grows on tax-deferred basis (there are no taxes until you withdraw).
Con: If you need to access money earlier, there are penalties. Annuities have a surrender period, meaning you cannot touch it for a certain period of time. It can be fixed or variable, and it can also have expenses. Fixed annuities have lower fees than variable. Variable annuities have the chance to offer a higher rate of return.

3) Stocks:

Pro: Stocks offer an opportunity for a higher appreciation in value over fixed investments, and clients can get dividends that can be paid out or reinvested.
Con: High risk associated with owning stocks.

4) CD’s:

Pro: There is no risk.
Con: If you need access within the term of the CD, there are penalties. Currently CDs have very low rates.

5) Professionally Managed Accounts:

Pro: A manager is hired to manage a client’s investments, and that manager will have discretion over all trades in the account.
Con: High expense to manage the account. Less control for client. Expense depends on amount of money invested and the portfolio composition. Starting investment is $50,000.

6) Money Market Account:

Pro: higher rate than a savings account but difference is not that big.
Con: Interest rate is in between a savings and CD account.

IRA Account Fees

While some brokers will charge you one-time fees to open a new IRA or transfer over an existing one, Chase does not. However, they do charge a $30 annual fee for maintaining an IRA account, but this can be waived fairly easily by meeting one of the following three criteria: contributing at least $1,000/yr., maintaining a balance of at least $10,000, or having a Chase checking account.

Chase IRA Advisory Fees

In addition to choosing between a Traditional or Roth IRA, regardless of which legal structure you choose you can also choose to either manage the account on your own (called “You Invest Trade”) or pay Chase a small advisory fee to manage it for you (called “You Invest Portfolios”). If you choose to go the advisory route, Chase requires you to fund you IRA with at least $2,500 and charges you a modest 0.35% advisory fee to manage and rebalance your portfolio to keep it aligned with your retirement goals. And because your managed Chase IRA consists of ETFs, they won’t make you pay commissions on any trades they place in your account.

Chase IRA Transaction Fees

If you choose to open a “You Invest Trade” IRA account with Chase, you are fully in charge of all investment decisions and actions in your account. Online stock and ETF commissions are $0 each.



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