Merrill Lynch Wealth Management is a national investment advisory firm with offices in most major and mid-sized U.S. cities. As a subsidiary of Bank of America, one of the largest commercial banks in the world, Merrill Lynch has vast resources that its investment advisors can use to maximize client returns.
With no account minimums for most types of accounts, Merrill Lynch Wealth Management is available to nearly anyone. It offers a range of options for investors, ranging from automated accounts handled completely by Merrill Lynch itself to accounts managed by a local financial advisor based on a client’s preferences.
Merrill Lynch Wealth Management Client Types and Account Minimums
Merrill Lynch Wealth Management is available to all level of investors, with no minimum account sizes for most types of advisory accounts in Merrill’s Investment Advisory Program. However, Merrill Lynch typically has catered to high-net-worth clients.
Clients below that threshold may be encouraged to join Merrill Edge, Merrill’s automated online investing platform. Furthermore, while Merrill does not have minimum account sizes, many individual Merrill advisors set their own limits.
Many Merrill advisors do not accept new clients below a certain threshold. According to the firm's brochure, the minimum account size for SPA Accounts are generally $2 million, but based on their discretion, they could also accept accounts with less than that balance. The brochure also emphaiszes that "certain Investment Manager Strategies require minimum investment amounts as reflected in the applicable Profile or other disclosure document."
Investment Philosophy
As one of the largest wealth management firms in the world, Merrill employs thousands of brokers and investment advisors. Because of its size, it does not dictate any one philosophy for its advisors (and clients) to follow. Instead, it offers a range of strategies and tools that allow clients and advisors to develop an individualized investment approach.
Your investment advisor will begin by asking you about your risk tolerance, your desired liquidity and your time horizon. These three elements will help determine the exact mix of assets that will work for you. Available asset classes include equities, fixed income securities, CDs, money market funds (MMFs), mutual funds, exchange-traded funds (ETFs) and annuities.
Fees Under Merrill Lynch Wealth Management
Merrill Lynch charges a program fee for the Merrill Lynch Investment Advisory Program that consists of a Merrill Lynch Fee Rate and a Style Manager Expense Rate.
According to the firm's brochure, the maximum rate charged for the Merrill Lynch is 1.75%. Program fees cover the cost of investment advice and guidance, as well as related brokerage services. However, the program fee does not cover all potentially applicable costs. Clients will also be responsible for additional expenses, including custodial costs and charges related to certain investment types.
These fees are applied monthly, with the amount due equal to one-twelfth the calculated annual fee, based on the market value of assets in your account. Merrill does not charge performance-based fees.
Merrill Lynch Wealth Management Awards and Recognition
Advisors with Merrill Lynch Wealth Management have received numerous awards for their performance and service in recent years.
It placed over 600 advisors on the Forbes list of Best In-State Advisors for 2018, more than any other company. Among these were the No. 1 advisor in Georgia, the No. 2 and No. 3 advisors in Southern California, and the No. 1 and No. 2 advisors in Texas.
Likewise, Merrill placed more advisors on the Financial Times 2017 ranking of top retirement advisors than any other company. It placed 55 advisors on that list, out of 401 total.
Merrill advisors have also been recognized in rankings of the top young advisors and the top women advisors in the country. The firm placed 16 advisors in On Wall Street’s ranking of the Top 40 Financial Advisors Under 40, and 18 advisors on Barron’s ranking of the Top 100 Women Advisors, leading the country in both categories.
What to Watch Out For
As mentioned above, Merrill has historically preferred clients with higher net worth. Individuals with assets of less than $250,000 could be encouraged to enter into one of Merrill’s automated programs.
Such accounts often have lower fees, but may not be a good fit for those who are seeking the personal touch of their own investment advisor.
It’s also important to note that your experience with Merrill Lynch will be largely dependent on the advisor you end up with. Merrill Lynch is one of the largest wealth management firms in the world, with thousands of advisors. Some have been in the business for decades and have a track record of success, while others may just be getting started. So, before opening an account with Merrill, make sure you have an advisor you are comfortable with.
Merrill Lynch currently has 341 disclosures reported on its Form ADV. The SEC requires firms to file this form. Here you can find information on a firm's available services, fee structure and client base, and check any disclosures.
Opening an Account With Merrill Lynch Wealth Management
Because Merrill Lynch has offices all across the country, the best way to start a relationship with the firm is to set an appointment with an advisor at your local office. You can find contact information for your local office through the search tool on the Merrill Lynch website.
During your introductory appointment, you and your advisor will determine the best investment approach to match your goals. He or she will ask you questions about what you hope to accomplish with your investments and about your risk tolerance. You will also have the opportunity to learn about your advisor’s background and investment approach.
If you are satisfied with your advisor, you will sign a Client Agreement and make a deposit to open your account.
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