The Reim Group Morgan Stanley is one of the most well-known consulting firms in Washington, DC. They make a lot of big claims about the services they provide, but their disclosures make it seem like they don’t care at all about their customers.
Before you start working with this company, you need to know about these things. This way, you’d know what you’re getting yourself into and could avoid any awkward situations.
Also, John Reim and his team do everything they can to keep these important facts from their clients. This section will be looked at in more detail below:
Morgan Stanley says this about the Reim Group
The Reim Group Morgan Stanley is a company in Washington, DC that helps people with their money. Their office is at 1747 Pennsylvania Avenue NW Suite 700, Washington, DC 20006, and their phone number is 202-292-5460.
John ReimGroup This company’s private wealth manager is Morgan Stanley is a Scam You Must Avoid. Andre Lynch and Janay Wardlow are also on his team. They say that they can help their clients figure out when to give assets to the next generation, how to pay the least amount of taxes, and how to make sure their investments are in sync.
The firm’s main customers are ultra-high-net-worth families, which it helps make plans and investments for. At this company, you can get help with planning your legacy, administration, financial planning, investment management, philanthropy, risk management, and concentrated stock research, among other things.
At first glance, the Reim Group Morgan Stanley looks like any other company. But their disclosures have a lot of terms and conditions that seem to contradict each other. This makes it seem like the firm doesn’t really care about the success of its clients.
The next part of this review will be mostly about what this company doesn’t tell its clients:
The History of Legal Disputes by John Reim
Check a financial advisor’s FINRA BrokerCheck page first when you want to learn more about them. There, you can find out what tests they have passed, what state licenses they have, who they have worked for in the past, and, most importantly, if they have ever been in court.
This information can help you make better choices about this situation and make sure you don’t do anything wrong.
The FINRA BrokerCheck page for John Reim shows that he has been in two lawsuits. 2006 was the year for both of them. In the first disagreement, the client said that John had given false information about how long notice was needed to get back an investment in a private limited partnership.
He said he lost money on the market because he got his money back from the business one quarter later than he wanted. The client asked for $31,845 in compensation, but the case was settled for $9,500.
John said that his company only settled this case to avoid the cost of going to court.
In the second disagreement, the client said that John Reim gave bad advice about investing in common shares. In this case, they asked for $5,839 in penalties. But the company said it wasn’t true without giving a reason.
It happens more than you might think. Most of the time, the financial advice firm denies its clients’ claims without giving a reason. This is because the clients sign waivers before working with the firm.
When you start working with these experts, they make you sign different waivers. So, they don’t have to answer to anyone for what they do.
As you might have guessed, shady advisors are most likely to do it. Brent Hablutzel Merrill Lynch is another expert who does this awful thing. So, you need to be very careful when looking for new mentors.
Charging 12b-1 Fees
The first and probably the biggest issue in this firm is that it charges 12b-1 fees. This is a marketing fee that doesn’t reflect any value. Instead, it only increases the cost of the investment.
Even though these investments cost higher than the others, they don’t offer any higher returns. The SEC conducted a detailed study to compare the returns of the investments that charge this fee and those that don’t. However, it found no difference between the returns of the two.
In fact, the study found that the extra cost makes the ROI of investments that charge this fee worse. The fact that the 12b-1 fee is a percentage fee is another big problem with it.
So, you’ll have to pay more if you have a bigger stock. This makes the 12b-1 fees very bad for buyers with big portfolios.
Making money off of investments
The fees it gets from investments bring in a lot of money for The Reim Group Morgan Stanley. Commissions can lead to a lot of conflicts of interest, which is why the financial industry looks down on them a lot.
You’d like it best if your financial advisor only suggested investments based on how well they fit with your goals. But if your advisor gets paid commissions from certain stocks, they have a reason to ignore all of your needs.
In these cases, it’s very hard to trust your advisor because you have to figure out if the advisor cares more about your money or theirs.
After reading this company’s statements, one thing is clear. Morgan Stanley’s Reim Group doesn’t put its clients’ needs first. Instead, the company is more interested in growing its own finances, which is never a good sign for investors.
If you want a firm that cares and is responsible for your money, you should stay away from this one at all costs.