Most of the time God,Pratt & Whitney or General Electric, will give you another turn in the Barrel.

These are my opinions and my opinions only they do not reflect the opinions of any of my family members or their employer. Note we NOW have NO employers.

Back from a 5.5 Year PCS from the confines of the far Southwest corner of Bundesrepublik Deutschland. The Federal Republic of Germany and Retired.

Friday, December 7, 2012

Morgan Stanly Financial Adviser, He or She is your new best buddy.

Who are we talking about, why of course your Morgan Stanley Wealth Management Financial Adviser (MSWMFA) that is who.
Let see his or her compensation plan was just changed to encourage him or her to increase revenue and allow him or her to buy discounted stock in Morgan Stanley, it is structured as a forgivable loan in 5 years, assuming that they are still employed at Morgan Stanley.  Even better it is a pretty slick way for Morgan Stanley management to keep the money in house.
He or she now will get a bonus of between 2 and 5 percent of the new assets/revenues that he brings in provided he or she is in the top 40 percent.  He or she is incentivized to bring in more than $750,000.00 of revenue by reducing the by 2 percent the bonus that is pay to all who brought in at least $750,000.00 in revenue.  Something tells me that generating $750,000.00 of revenue will not even get he or she close to being in that top 40 percent.
Morgan Stanley or more precisely the MSWMFA will be hunting whales, and big dumb ones at that.  I wonder if they are white, wait that was another story?
If you are already a customer of MSWM stand by for a the message from your MSWMFA that in all probability your assets are slightly (completely?) allocated incorrectly (Wrong) and that if you want to hunt with the big boys (more like be hunted by the big boys) you are going to have to make some adjustments in your assets allocations (Completely gut your current portfolio and try something completely new and totally different, how about options, better yet how about naked options, how about using the stock that you think that you already own, in reality it just a book entry, Morgan Stanley is holder of record, as collateral, we can loan you the money, and our rates are competitive, with every other brokerage house, how about credit default swaps, synthetic derivatives).  Surprise, surprise your MSWMFA is just the one who is able to assist you in this effort (Commissions and Fee oh goodie, how nice, thank you may I have another).  But of course nothing in this world comes free, and it will cost you a little in the form of commission, fees, and possibly taxes to be paid, to reposition you for the coming new market (We are going suck you dry if we get half a chance)(Is this the new normal?).  You do want to be ready for the coming new market?  Of course you do.
These individuals are called Financial Advisors, not Securities Brokers for a reason, and a great deal of that reason has to do with how disputes are handled and who they are or are not reported to.  This is very true when their advice is poor, well remember you signed that agreement that says you cannot sue, no you must use mediation, with their mediators (Good Luck with that).
Greg Fleming needs to keep his job, your MSWMFA needs to keep their job, although I suspect that come this time next year there will be less of them.  They are ready willing and able to keep their jobs even if they have to do it all at your expense.  So be a good a sport and just give Morgan Stanley your money (Do it for the children, Theirs).  They are people just trying to take make a buck.
The Morgan Stanley Corporation reminds me of the words of the Giorgio Moroder song “Blood from a Stone” from the remake of Metropolis.
“Turning for the wheels of gain. A system with a power of it's own, to draw blood from a stone.”
In this case maybe the lyrics should be changed to “draw blood from your stones”.  You have been advised of the situation, what happens next is totally up to you.


  1. I truly appreciate ones post and you also explain every single point well. Thanks for sharing this data. And I’ll adore to read the next post far too.Ali Mudeen

  2. Thanks for this informative post. You really included a lot of helpful details. I truly enjoyed this post.Best Financial Advisors

    independent pension advice Bristol & Pension Advice Bristol