I just got "the call" from a Morgan Stanley rep regarding my Access account. Here's what they said:
1) Access accounts are being decommissioned and will be transferred to E-Trade unless I opt for a different MS account type. The Access accounts will all be fully eliminated by the end of the year but it will be done in "waves" and he recommended I make a choice before November. So no surprises, they're giving me plenty of time.
2) They did offer me two alternative MS investment accounts that would continue to serve as my Cash Plus investment relationship which means I'd still qualify for the AMEX and engagement bonus. They appeared to be trying to retain me rather than shuffle me off to E-Trade. IDK if the minimalists will get the same treatment.
3) The first account they offered was their UMA (managed) account with a Virtual Advisor service that supposedly will be similar to the Access investing structure. The account normally has a $25k minimum, but they're waiving that for now. The AUM fee varies with account balance, but above $25k it is 0.85% with no annual or trading fees.
4) The second account offered was their self-directed AAA account. This has a $150 annual fee and a trading commission of 1.25% with a $21.95/trade cap.
Originally Posted by
diesteldorf
Thanks for the information. I think I will be proactive and call them this afternoon and say, "a buddy of mine, or acquantance, got a call about his AU account being decommissioned....." Depending on the fee, the UMA option (provided it is less than 2-3%) would be cheaper than the self-directed AAA option.
Originally Posted by
GundamWing01
correct. etrade doesnt count - based on all the DPs and phone agents.
MS doesnt include etrade accounts for MS plat qualification......etrade is a discount brokerage (ie poor pple). it doesnt want to mix elite bloodline w/ peasants. so no mix up of brands for dilution.
Originally Posted by
steve4
Anyone already liquidated their Access Investing account yet ? I think I might just do that and only keep the Cash Plus account as I’ve been paying the $55 monthly fee
Originally Posted by
fatlard
Morgan Stanley called and I had good call with them. They definitely wanted to encourage me to move towards a full service brokerage where they can “help secure” my financial future… here is what I gather…. Assuming you want to MS amex, cash plus and engagement bonus
Option 1: do nothing and let Access investing close and I move the funds where I want. I would get to keep Amex and cashplus account but the $55 fee would not be waived. You still get the yearly engagement bonus.
Option 2: Open AAA and move funds to the AAA account. The fee would be $150 annually. You get to keep MS Amex card and cashplus and if you meet $25,000 average daily balance you can get the $55 fee waiver. You still get the yearly engagement bonus
Option 2-a You can optionally change the AAA account to a pathways account which has an min of $1000 and a 0.85% fee and you can waive the $150 fee.
I imagine most will pick option 2-a as the fee would be $8.50 a year
Originally Posted by
ctle
Interesting, I wasn't offered the pathways account. Did they bring it up automically or did you ask about certain conditions? How much was in you AI account, I got 3 options, but it was 1) they manage (probably AAA account), 2) they give initial recommendation, but after that nothing unless i ask for it, (assuming AAA because he said ~1% commission and $150 AF) 3) move to etrade?
After reading bd7's initial reply, yesterday afternoon, I decided to call Morgan Stanley proactively, even before realizing that I had a missed call from them earlier in the day.
When I called, I told the representative that I was concerned about my Access Investing account, was aware that it was being decomissioned, was familiar with UMA, AAA, and wanted to discuss my options.....Thanks again bd7.
In this regard, I was more assertive because I already mentioned UMA and AAA, but, as fatlard and steve4 mentioned, I could also liquidate my Access Investing account, keep my Cash Plus account, continue to pay $55 per month, and conceivably earn the yearly engagement bonus.
I also clarified that both UMA and AAA were still managed by MS in house, because, as GundamWing pointed out, Etrade doesn't count and was what MS was offering to many after Access Investing was discontinued. It wasn't a viablle low-cost option for those that wanted the MS Platinum. There are a couple different levels for UMA, but my representative also told me about Pathways, with a $1000 minimum, what fatlard referred to as option 2-a.
Because I called after market hours, I scheduled a follow up with MS next week to officially convert my Access Investing account to Pathways. I considered complely liquidating my Access Investing account and just keeping Cash Plus, as Steve4 mentioned, but am treating the Pathways account as a sort of insurance policy if my Cash Plus account is ever closed or if the terms of the engagement bonus ever change. I wouldn't blame MS if they no longer wanted to keep offering engagement bonuses to those with only a couple thousand dollars in a Cash Plus account, and keeping 2 separate products conceivably makes for a stronger relationship.
My representaive told me that UMA Pathways was a recent addition to their product offerings, but I don't know if it is just available to existing clients as a conversion option, or if will also be available to new customers. Before Access Investing was offered, the MS Platinum was out of reach for many because of the high asset levels requiored to establish a relationship. Maybe MS has decided they are willing to compete with Charles Schwab, and other financial institutions, for customers with more modest means. After all, the American Express Platinum was only available by invitation before it was marketed to the masses as a travel and lifestyle card. What we need is for someone with no existing relationship to call MS and ask to open a Pathways, or standalone Cash Plus account, and then apply for the MS Amex Platinum.
The MS Platinum is already the best option for many because of the free AU. If MS potentially raises the engagement bonus to match the new annual fee, and keeps the Cash Plus monthly fee at reasonable level, it may be an even stronger option, and that's why I'm converting to Pathways and keeping Cash Plus.
If Amex completely nerfs the Platinum or MS redefines or eliminates the engagemnent bonus, I can always get rid of existing products, but I may not be able to add them back.