If you need a new financial advisor, it’s important to check into all of your possibilities carefully. The benefits of working with any given advisor will be touted by all of them, but the negatives will be overlooked. This Balog Group Morgan Stanley review was created to help you focus your search.
The Balog Group is one of Laguna Niguel’s most dishonest financial advisory firms. The company’s management has a history of legal difficulties, and the business relies on several dubious clauses to lure clients into sticky situations.
Morgan Stanley’s Balog Group
The Balog Group’s Collective The Laguna Niguel, California office of Morgan Stanley is a financial advisory firm. You can reach them at 949-365-5306 or visit their office at 28202 Cabot Rd Ste 500, Laguna Niguel, CA 92677, USA.
This company asserts that it will work closely with its clients to develop personalized financial plans and wealth management methods. Cash management, business succession planning, alternative investments, credit products, asset management, retirement, and life insurance are just some of the other services they provide.
Anouchka Balog, Christopher Mullery, Ritamarie Kikawa, and Steven Anderson are some of the most notable people employed here. Anouchka Balog is the company’s managing director.
Despite the firm’s boastful claims that it puts clients’ interests first, the disclosures show otherwise. As per the conditions outlined by the Balog Group Morgan Stanley
The Balog Group’s Current Problems Multiple Legal Cases Involving Morgan Stanley Anouchka Balog
FINRA BrokerCheck is a database where you can obtain a lot of information on a financial advisor before you decide to work with them. Find out whether your advisor has been involved in any lawsuits and what their background is like.
Two complaints appear on the FINRA BrokerCheck report for Anouchka Balog. In 2003, a client filed a lawsuit over annuity investment claims of deception. In March 1999, Anouchka’s client also claimed that she did not carry out the client’s explicit investment instructions.
Unfortunately, the client’s untimely demise prevented any action from being taken on the attorney’s request for $50,000 in damages.
In 2004, she was involved in a dispute with a client who claimed she had been unsuitable and had broken her fiduciary obligation to them between 1997 and 1998. Anouchka refuted the charges, and the client never received the required damages of $50,000.
This is the only data provided for the second disagreement of The Balog Group.
The Balog Group’s Competent financial advisors don’t have to deal with lawsuits, but Anouchka Balog has been involved in two. This exemplifies her dedication to her work and concern for others.
Her most recent statements give the impression that she has made no progress. You agree to the following disadvantageous circumstances as a new client, making it more difficult to bring a legal claim against her.
Unreasonable Costs for Major Investments
The Balog Group Morgan Stanley has a wide selection of 12b-1 fee investments. There is no value added by paying this marketing price. There’s a common misconception that higher-priced investments also provide higher returns. However, this is not the case with 12b-1 fee investments.
There was no correlation between this cost and lower returns for investments in SEC research.
Advisors recommend these investments because they get to keep the 12b-1 charge.
Creating Undue Peril for Customers
The Balog Group’s Morgan Stanley is compensated by results. This fee structure ensures that your advisor will only profit if they can outperform a predetermined benchmark.
As a result, they prioritize high-risk techniques that put short-term gains ahead of long-term sustainability. Especially for low-risk, long-term portfolios, this can be devastating.
Even though high-risk techniques are inappropriate for most portfolios, your financial advisor may still implement them because you “understand all the risks” before working with them.
This is why the plaintiff usually loses in court. When working with a financial advisor, be sure to read all of the fine print.
The advisor has no motive to avoid using high-risk techniques if they are compensated based on how well they succeed.
High-risk tactics also have the additional risk of instantly wiping out a sizable portion of your invested wealth. New clients typically sign waivers absolving advisors of responsibility for losses incurred as a result of the advisor’s employment of high-risk tactics.
For these reasons, charging performance-based fees was prohibited for fiduciaries before 1985.
Conclusion
There are numerous warning signs with the Balog Group that you should not dismiss. This company commits every possible wrongdoing, from putting clients in unnecessary danger to charging a superfluous fee that is especially harmful to huge portfolios.
Trusting an advisor who profits more from your increased risk is challenging. Similarly, if the advisor’s agreement has a provision that allows them to charge hidden costs, you cannot rely on the advisor’s word about your charges.
Given the firm’s emphasis on “long-term” clients and the accumulation of these problems, it is not a good place for any investor.
These are all good reasons to look elsewhere and forget about the Balog Group Morgan Stanley.
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