If the broker made him huge returns and gave him fantastic service, I can
understand not wanting to move to save a few dollars.

However, if that isn't the case and he was just a nice guy and did not
anything extraordinary, then transfer the account.

"MTW" <mtwingcpa[at]yahoo.com> wrote in message
news:jOednZc3wMkuN7nfRVn-sA[at]centurytel.net...
- quote -


======================================= MODERATOR'S COMMENT:
Please trim the post to which you are responding. "Trim" means that except for a few lines to add context, the previous post is deleted.

MTW" <mtwingcpa[at]yahoo.com> wrote
- quote -

Don't you love it? Great respect for someone that is taking you to the
cleaners with fees? The broker's job is to make and save you money. He is
getting paid to do this. Goodness, I'd hate to think you mess up his psche
and harm his self-esteem by saying you have found a better price. This
isn't about feelings, it is about money.
Steve

Elle wrote:

- quote -

Per the client's comments, I believe he is trying to handle this
thing in the manner that his Dad would have wanted (rather than
in the manner that he or you or I or anyone else might have
otherwise chosen). Indeed, there is a principle at work here.
<grin
MTW

"MTW" <mtwingcpa[at]yahoo.com> wrote
- quote -

(This is more for the edification of the world than for you or your client.
That is, I mean no disrespect. Folks have to make choices with which they
are comfortable.)

I recognize that it's certainly a client's right to want to express loyalty
to a broker. But if I were in his shoes, I don't think I'd sleep at night
as the executor (I presume) of this estate, letting some $1500 fall by the
wayside. Some of the heirs could be hurting and make very good use of this
money. Or it could produce bad feelings. I also wonder if he perhaps has
some kind of fiduciary responsibility here. Not that anyone's going to sue
over their share of some $1500. It's a principle thing.

Good for you for asking him, anyway. Also, for posting this interesting bit
of info about Morgan Stanley, too. At least the client might give this a
bit more consideration in the future.

Elle wrote:

- quote -

I looked earlier and couldn't find it, either. But I might look
at some other full service broker sites to see if I can find a
comparative.

I agree with the numbers you and others have posted regarding the
potential savings from transferring the account. However, since
the client's father had great respect for the broker, the client
would prefer not to make that move. He just wants to make sure he
is not getting totally "hosed" in the process.

MTW

So altogether Morgan Stanley will charge the estate about $1925 to
liquidate. By my calculations Fidelity should be able to do this for under
$500. I'd call Fidelity "Full Service." Cost to move account: maybe $100,
tops. Maybe a lot less. For Fidelity's commission schedule, see
http://personal.fidelity.com/account...age_commission
_frame.shtml.cvsr?refhp=c .

Transferring is not a big deal. If your client really doesn't want the
"hassle," then call Fidelity and try to nail down exactly what they would
charge for a transfer and then liquidation (tell them exactly what you want
to do with this account), then try negotiating with Morgan Stanley, using
what Fidelity offers as leverage.

I just checked the Morgan Stanley web site. I can't find its stock
commission schedule. Hopefully it's there, but if not, then along with what
you report, that sure doesn't give me a very high opinion of it.

Fidelity "Gold Class", for which this estate would qualify with $1MM in
assets, would charge a transaction fee of less than $10 for each
transaction. For seven equities, that would be seven transactions. I
think Morgan Stanley is overcharging on this one.

i highly doubt it. The account is going bye-bye and the broker is
compromising
already. The 'hassle' is probably worth the 15 minutes it takes to fill
out a
Schwab. Vanguard, Fidelity, ScotTrade account form, and tell the new
company
the old account details. They'll do the transfer. You stand to gain
about $1500
to $1900.
Joe

A client is administering his father's estate and is about to
liquidate a stock portfolio worth approximately $1 million,
currently held by Morgan Stanley. The broker indicated that their
"retail" commission for the sale of the portfolio would average
about $263 per 1,000 shares, but that they would be willing to
discount that to about $77 per 1,000 shares. There are
approximately 25,000 shares in the portfolio, comprised of seven
NYSE stocks.

Naturally, the client could transfer the account to a lower cost
broker and then sell. However, for various reasons he would
prefer to avoid the "hassle." So, the question is, does an
average commission of $77 per 1,000 shares sound like a rock
bottom rate for a full service broker? Or is there room for my
client to negotiate further?

MTW