Part 1 Financial Advisor from Merrill Lynch on the east coast checking in. Get ready for information overload.
A few disclosures before we begin.: * Neither Merrill Lynch nor its Financial Advisors provide tax, accounting or legal advice. Clients should review any planned financial transactions or arrangements that may have tax, accounting or legal implications with their personal professional tax advisors. ** Non-deposit investment products and services (including, but not limited to, stocks, bonds, mutual funds, insurance and annuity products) are being provided solely by Merrill Lynch or its affiliated insurance agencies and not by Bank of America N.A. There are fees associated with the purchase or sale of stocks, bonds, mutual funds, insurance, annuities and other products and services. ** Non-deposit investment products and services (including, but not limited to, stocks, bonds, mutual funds, insurance and annuity products) that you buy through Merrill Lynch are not (i) deposits insured or guaranteed by the Federal Deposit Insurance Corporation (“FDIC”), or (ii) insured or guaranteed by Bank of America, N.A. or any agency of the U.S. government, except in each case as specifically described to you in a prospectus or other offering document and/or by your Merrill Lynch Financial Advisor. ** Non-deposit investment products (including, but not limited to, stocks, bonds, mutual funds, insurance and annuity products) are subject to investment risks, and may lose value, including principal. ** Insurance and annuity products are offered through Merrill Lynch Life Agency Inc., a licensed insurance agency. You are not required to purchase insurance or annuity products from Merrill Lynch. ** Bank of America, N.A., Merrill Lynch, Pierce, Fenner & Smith Incorporated, and Merrill Lynch Life Agency Inc. are each indirect wholly owned subsidiaries of Bank of America Corporation. *** Any information presented in connection with Merrill Lynch is general in nature and is not intended to provide personal investment advice. The information does not take into account the specific investment objectives, financial situation and particular needs of any specific person who may receive it. Investors should understand that statements regarding future prospects may not be realized. **** Historical past performance does not guarantee future performance.
Now that those are out of the way; a special disclosure.
Any information provided to the Personal Finance SubReddit by User BiologistBro is general in nature and can be found by on the Internet. This post or any subsequent posts related to Merrill Lynch are not solicitations and the User posting them will not receive any direct or indirect compensation in exchange for the information in the post.
Phew.
To start off… Hi, I’m generally considered the enemy of PF as I am a Merrill Lynch Financial Advisor, and I use more than just “Boglehead” in the portfolios I build for my clients. As someone who has a “net negative impact on society” in the eyes of u/K2Nomad, I serve the ultra-high net worth and the mass affluent. I have my Series 66, Series 7, health, life, variable contracts, annuity, and national mortgage registration licenses. I am going to school each weeknight to obtain my CPF distinction. I am compensated under three platforms: commission, fee based, or fee-only.
First bit of information, NOT EVERYONE NEEDS A FINANCIAL ADVISOR. Its true.
The clients I work with have at least one of four major reasons why. 1) They don’t have the time 1) They don’t have the interest 2) They don’t have the experience/knowledge 3) They want a professional.
What does that mean?
They pay for someone to manage their entire financial life. I’ll give K2Nomad some credit even though his accusatory, condescending, and inflammatory probably demonstrates he doesn’t deserve it. Not all Financial Advisors are good at what they do. Not all big firm Wall Street advisors are good. Not all small independent registered investment advisors are good. That being said, not all big firm Wall Street advisors are bad. Not all small independent registered investment advisors are bad. Look at it like lawyers or doctors. You go from private practice to private practice.
Certain professional specialize in different areas. Some doctors will overprescribe prescription drugs to get you out the door and onto the next patient. Some lawyers will advise clients to take bad plea deals to get you out the door and onto the next case. Some financial advisors will put you in A share mutual funds without a suitability conversation and send you on your way for the next 5 years to get you out the door and onto the next client.
I’ll paraphrase James Madison’s “Federalist Papers” in that people will pursue the ends of their own self-interest regardless of other consequences. This means you’ll find doctors proscribe a kid ADHD meds to get paid by the insurance and prescription drug companies and fix the problem rather than do an exhaustive analysis of the home conditions, diet, mental and physical stimulation, genetic analysis. Some kids may need the meds. Some may not.
My point is this. If you work with an advisor, get to know them. Know their typical client. Know their areas of expertise. Know their areas of weakness. Know how many clients they have and the total assets under their management. Know their motivations. Look them up on FINRA Broker Check. Where did they go to school? When did they start in the industry? Do they have any major complaints pending or settled? It is a relationship that you must take as seriously as getting married.
When you’re getting married with no-prenuptial agreement (to plagiarize a r/showerthoughts top comment from earlier this week), “You are betting 50% of your assets that you will stay in a relationship with this person forever.”
When you’re starting a relationship with an advisor you trust them with possibly 100% of your entire life’s savings for the time they act as stewards of your finances. Move slowly and really build a bond of trust that they are acting as fiduciaries.
end part 1