pecuniary Advice for Those With Sm wholly Nest Eggs
By RON LIEBER
Published: January 13, 2012
When Merrill lynch lately discouraged its thundering herd of brokers from taking on radical clients with under $250,000 in assets available for investing, it wasnt a enceinte surprise.
Brokerage firms have been making these sorts of moves for years, and Merrill is notorious for a leaked memo in the late 1990s that discouraged charity use for clients with less than $100,000 in assets â€" poor plurality, as the memo say it.
That patrician view is probably a minority one: if the people who run Merrill Lynch felt that way, they wouldnt be doing what theyre doing now, which is trying like mad to figure pop a way to service those smaller accounts profitably.
But Merrills decision to tell its brokers that they might not get stipendiary if they persisted in working with such people reflects one of the sorriest truths of the financial services industry: Nobody has figured out a way to consistently give large numbers of people reasonably priced financial advice across all areas of their life and to do so in an ethical manner.
The case of Merrill â€" and its effective opposite, a start-up called LearnVest â€" is instructive in part because it reflects how the world of managing money has changed since Merrill Lynch first started hanging shingles on main(prenominal) Streets all over the United States.
Charles E. Merrill & Company opened for byplay nearly 100 years ago, and the company (along with Merrills catamenia owner Bank of America, interestingly enough), resolved to serve Main Street, not Wall Street. Charlie Merrill put it this way, according to the 1994 book by my colleague Joe Nocera, A Piece of the Action. In it, he quotes Mr. Merrill as writing the following: A new guild has sprung up in the [investment] banking profession which does not despise...If you want to get a full essay, order it on our website: Ordercustompaper.com
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