Merrill Lynch 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 leverage when working with clients.
Account minimums vary across Merrill Lynch's suite of services, so just about anyone can work with the firm. The company offers a range of options for investors, spanning automated accounts handled completely by Merrill Lynch itself to accounts managed by a local financial advisor based on a client’s preferences.
Merrill Lynch Client Types and Account Minimums
Merrill Lynch clients including individuals, high-net-worth individuals, charitable organizations, banks, insurance companies, thrift institutions, pension and profit sharing plans, corporations and other types of businesses.
Merrill Lynch's Investment Advisory Program, a wrap fee program, does not have a general minimum asset requirement for participation. However, certain strategies, particularly those involving Style Manager Strategies and Overlay Services, do have specific minimum investment amounts. These minimums vary depending on the particular strategy.
The firm's Personal Retirement Strategy, an online investment advisory program available to participants of certain retirement plans, also doesn't have a specific general account minimum. However, $100,000 is the minimum required for Merrill Lynch's Managed Account Service (MAS), a non-discetionary program that allows the client to choose their own investment managers and strategies.
Merrill Lynch Investment Philosophy
As one of the largest wealth management firms in the world, Merrill Lynch 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
As a wrap fee program, clients of Merrill Lynch's Investment Advisory Program pay a single, all-inclusive fee that covers a variety of services, including investment advice, portfolio management, and other account services. The program fee consists of two components:
- Merrill Lynch Fee Rate: This part of the fee, which covers Merrill Lynch’s advisory and administrative services, is negotiable but cannot exceed 1.75%.
- Manager Fee: If the client selects a third-party manager or a specific Merrill investment strategy, this portion of the fee is allocated to cover that manager's services. The fee for those enrolled in the Style Manager Strategy typically ranges from 0% to 0.65% of assets under management, while the fee for the PAS Style Manager Strategy is a negotiated rate.
As for the Personal Retirement Strategy offering, clients are charged a maximum annual fee of 0.25%. For the Managed Account Service, Merrill Lynch charges an annual asset-based fee, referred to as the MAS Fee, which is negotiable based on several factors. This fee is designed to cover various services including investment management, custody of assets and reporting. Additionally, clients may incur separate fees from their selected investment managers, as well as other miscellaneous costs (e.g., mutual fund expenses) which are not covered by the MAS Fee.
Merrill does not charge performance-based fees.
Merrill Lynch Awards and Recognition
Advisors with Merrill Lynch have received numerous awards for their performance and service in recent years. Thirty-two Merrill Lynch advisors were named to the America's Top Next-Gen Wealth Advisors list in 2024, compiled by Forbes. Meanwhile, 20 advisors made the Barron's Top 100 Financial Advisors list of 2024 and 22 female advisors were named to the Barron's Top 100 Women Financial Advisors rankings.
What to Watch Out For
It’s 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 364 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
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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- Consider what you're looking for in a financial advisor and how much you have to invest. This can narrow down the search as many financial advisors have specific areas of expertise, such as retirement planning and estate planning. You want to ensure you find an advisor to work with who can meet your needs.
