It’s crucial to weigh the benefits and drawbacks of each potential financial advisor before making a final decision. The benefits offered by some consultants far outweigh the downsides offered by others. Among those who don’t deliver is the Fister Group at Morgan Stanley.
This corporation’s business model is predicated on engaging in several unethical practices. They cause investors to become stuck in bad contracts. This analysis will shed light on their immoral tactics and more.
Groupe Fister Morgan Stanley: The Company Background
The Fister Group Morgan Stanley is a financial planning organization with headquarters in Lexington, KY. Their phone number is 859-231-9510, and their address is 444 E Main St Ste 111, Lexington, KY 40507, USA.
The Fister Group states that they are solution-oriented and will work to meet the requirements of their customers. Furthermore, they state that they place a premium on establishing solid relationships with their customers to meet their varied investing requirements.
The Fister Group asserts that its philosophy is predicated on autonomy, information, advocacy, and individualization. Among the services they provide are:
- Life cover
- Preparing One’s Finances
- Management of wealth through 401(k) transfers
- Annuities
- Financial services
- Preparing for Retirement
- Strategies for Estate Administration
- Expertise in Managing Investment Portfolios
- Life cover
- Donor-recommended funds and other options.
W Morgan Fister is the CEO of this company. Others of note at this company include:
- Senior Vice President Justin E. Fister
- Vice President Andy A. Milliken.
- Senior Vice President Thomas Springate
The majority of the company’s enticing promises of its competence and philosophy are, however, not true. When you examine their terms and conditions, you will see several predatory clauses. They show how deceptive these assertions are.
Therefore, this evaluation will proceed to a more in-depth analysis of those predatory provisions in the next section:
Danger Signs Groupe Fister In an Attempt at Discretion, Morgan Stanley
Client Ignorance Disagreement
Checking a prospective wealth manager’s FINRA BrokerCheck record is a good idea. Their work experience, employers, and legal entanglements can all be researched there.
W Morgan Fister has had one caution listed on his FINRA BrokerCheck profile. The date was July 31st, 2007. In this case, the customer claimed he had been given false information regarding the mutual funds he had invested in. Moreover, he stated that Fister failed to inform him of the investment’s potential risks.
He was vague about the amount of damage. However, he eventually recanted the accusation.
Surprisingly, no further details about the conflict are publicly available. The customer withdrew the complaint, but the disclosure does not explain why.
Still, it’s no laughing matter to be sued because you lied to a customer about the dangers of an investment. This indicates that the CEO of Fister Group is careless with his client’s money.
Exposing Customers to Unacceptable Danger
The Fister Group of Morgan Stanley, aside from having a dubious head honcho, is notable for its performance-based compensation. This is often frowned upon in the business world of money.
Why? Because it makes the advisor want to disregard the client’s comfort level with risk.
If your advisor uses this type of fee structure, they will be compensated based on how well your portfolio does. As a result, they frequently adopt precarious plans. Such methods have the potential to yield rapid expansion in a short time frame.
High-risk techniques, however, are inappropriate for the vast majority of investors. Particularly dangerous in bear markets, they can quickly eat away at your investment cash.
These tactics are risky across the board, but they may do serious damage to portfolios with a limited tolerance for risk. What’s more, you’re out of luck if you lose money following your advisor’s advice.
The company will suggest you accepted the risks if you complain about the losses. The investor is thus placed in a precarious position.
Subtle Costs Added On
The Fister Group’s securities with 12b-1 fees are highly recommended by Morgan Stanley. This is a fee paid to a financial advisor for recommending a certain investment.
This cost is not indicative of value in the same way that other fees are.
The SEC looked into the difference in performance between investments with and without 12b-1 fees. They observed no difference in profitability between the two strategies.
The study also found that investments that tacked on 12b-1 fees underperformed those that didn’t.
As a result, your after-tax return on the investment will be lower than you expected. This is a percentage-based charge, too. Therefore, the cost is proportional to the value of your investment portfolio.
Because of this, large portfolios are not a good fit for the 12b-1 fee.
Is It Safe to Work with This Financial Company?
There are several dubious clauses in The Fister Group Morgan Stanley’s terms and conditions, and the reliability of its leadership is also in question.
Therefore, you should stay away from doing business with The Fister Group.. Fortunately, you are not stuck with these individuals; there are plenty of other qualified money advisors in Lexington.
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