5 0 obj There are important differences between brokerage and investment advisory services, including the type of advice and assistance provided, the fees charged, and the rights and obligations of the parties. /K [47 0 R 48 0 R 49 0 R 50 0 R 51 0 R 52 0 R 53 0 R 54 0 R 55 0 R 56 0 R /C /Pa3 /Footnote /Note By clicking continue, you will be taken to a website that is not affiliated with Merrill and may offer a different privacy policy and level of security. >> The LMA account requires a brokerage account at Merrill Lynch, Pierce, Fenner & Smith Incorporated and sufficient eligible collateral to support a minimum credit facility size of $100,000. HWmoVp>UvEm[UI /Border [0 0 0] /Type /Border /Type /Metadata /Rect [56.8499 142.832 139.744 158.598] >> /W 0 WCMA. endobj /S /Note /Pa0 << << endobj Posted on December 7, 2016. << 36 0 obj /CreatorInfo << Also note that it may be more advantageous to pay cash than to use margin for smaller securities purchases. Loan Management Account Agreement. << Eligibility to enroll is generally available three or more business days after the end of the calendar month in which you satisfy the requirements. Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as MLPF&S or Merrill) makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of Bank of America Corporation (BofA Corp.). /P 291 0 R null 152 0 R 153 0 R null 154 0 R null 155 0 R null 156 0 R 157 0 R << >> /MediaBox [0.0 0.0 612.0 792.0] This Fact Sheet sets forth certain of the investment considerations relating to the purchase of a CD. /W 0 >> 57 0 R 58 0 R 59 0 R 60 0 R 61 0 R 62 0 R 63 0 R 64 0 R 65 0 R 66 0 R] 0000032985 00000 n << << Merrill offers a broad range of brokerage, investment advisory (including financial planning) and other services. /A 176 0 R 25 0 obj endobj /CS0 [/ICCBased 51 0 R] This material is not intended as a recommendation, offer or solicitation for the purchase or sale of any security or investment strategy. /TT1 34 0 R /A 179 0 R /A 178 0 R /PieceInfo << Merrill Edge does not publish their margin rates anymore. Default cash sweep. << /Rect [56.8499 303.761 118.24 319.527] 90 [123 0 R 124 0 R 125 0 R 126 0 R 127 0 R 128 0 R 129 0 R 130 0 R 131 0 R 132 0 R >> Do we lose the house and stocks or just stocks? /LineHeight 10.0 /Type /Border /LineHeight 10.0 /Intent [/View /Design] /NumberofPages 1 /LineHeight 8.0 /O /Layout 0000015317 00000 n /Adieresis /Aring /AE /Ccedilla /Egrave /Eacute /Ecircumflex /Edieresis /Igrave /Iacute and affiliated banks, Members FDIC and wholly owned subsidiaries of Bank of America Corporation. endobj /LineHeight 14.0 250 0 R 251 0 R 169 0 R 170 0 R 171 0 R 172 0 R 252 0 R 253 0 R 254 0 R 255 0 R The LMA account is an uncommitted facility, although loans to individuals and trusts may be committed in an amount not to exceed $100,000. << Dont want to sell assets or deplete cash reserves to fund your investment goals. Use eligible investments in your Merrill brokerage account as collateral for multiple loan from Bank of America. /Type /Border Bank of America, N.A.("the Bank") can force the sale or other liquidation of any securities or other investment property in the collateral account and, unless otherwise required by law, can do so without first contacting you. 1 You have choices about what to do with your 401 (k) or other type of plan-sponsored accounts. No set repayment schedule if you maintain the required level of equity in your account. >> /P 26 0 R O5Gp#:C&;fX Borrow with floating interest rates, based upon the Merrill Base Lending Rate (plus a spread), total relationship size, and amount borrowed. 0000021569 00000 n /LineHeight 10.0 /C /Pa3 0000063724 00000 n /Type /Pages Are you planning to make a large purchase? << /Contents [43 0 R 44 0 R 45 0 R 46 0 R 47 0 R 48 0 R 49 0 R 50 0 R] Understand your choices. /Type /Metadata /A 290 0 R /Tabs /S >> /TextDecorationType /Underline 0000016245 00000 n 116 0 R 117 0 R 118 0 R 119 0 R 120 0 R 121 0 R 122 0 R 123 0 R] >> Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as "MLPF&S" or "Merrill") makes available certain investment products sponsored, . /Subtype /Link endobj Lacks future options or cryptocurrency trading. The LMA account requires a brokerage account at Merrill Lynch, Pierce, Fenner & Smith Incorporated and sufficient eligible collateral to support a minimum credit facility size of $100,000. /LastModified (D:20210921111132+02'00') This accountoffered by Bank of Americafor Wealth Management clients offers tiered interest rates, discounts and waivers on everyday banking services. /O /Layout He wants us to stay in the mark, sell as little stock as needed and avoid paying as much tax as we can. >> /Border [0 0 0] >> If you choose to borrow funds for your purchase, Merrills collateral for the loan will be the securities purchased, other assets in your margin account, and your assets in any other accounts at Merrill other than retirement accounts (such as IRAs). This is not a commitment to lend. /A 278 0 R /ZaDb 17 0 R This Regulation Best Interest Disclosure Statement (Disclosure Statement) provides . $((HtTDo0g7A2rD 4$ [$tOo$O/)(FlZRKS3fq]kLh\lav:IC[^ d6Zp K?QYYFyx+H!poPN% Iwlav}X+BAX\aOteR8E^2=ZsO]~&f=x, Fr98F4utb*JR$:Zbnfg( /T1_1 56 0 R /S /TH /Tabs /S Investing involves risk. We put you first, every day. /EmbeddedFiles 18 0 R Log in. Securities-based financing involves special risks and is not for everyone. /H /I >> endobj 41 0 obj 0000007676 00000 n /OFF [5 0 R] 4.50% APY. /PageWidthList << /Subtype /Link /A 183 0 R The Bank may demand full or partial repayment at any time and any commitment may be immediately terminated. Meeting challenges. /SpaceBefore 4.0 Net Worth around 4.2M + 150-200k after sale of house. /ParentTree 27 0 R 22 0 obj The account minimum is zero (0$) The negative of Merrill Lynch account. >> 0000018918 00000 n /OriginalDocumentID ML controlled money for years belonging to my kids that was left by their mother who died of colon . /T1_2 57 0 R /DA (/Helv 0 Tf 0 g ) /A6 << 1 71 0 R 2 71 0 R 3 72 0 R 4 78 0 R << You can always check current interest rates by scrolling to the bottom of any Merrill Edge page and clicking on the blue link "Deposit Account & Money Fund Rates". /W 0 << /Type /Border >> Risk management strategies to consider include: Whether youre defining goals, addressing change or figuring out how to move forward, Merrill and Bank of America offer a wide range of solutions to help you take the next step and stay on track. Securities-based financing involves special risks. 13 0 obj /ViewerPreferences << /degree /plusminus /twosuperior /threesuperior /acute /mu 183 /periodcentered /cedilla /onesuperior >> . You can lose more funds than you deposit in the margin account. >> /O /Layout /Parent 3 0 R 71 0 R null null null 72 0 R 73 0 R null 74 0 R 75 0 R 76 0 R >> endobj /CropBox [0.0 0.0 612.0 792.0] /O /Layout Diversifying your portfolio by purchasing securities that balance your holdings and potentially offset losses on existing securities. 270 0 R 271 0 R 272 0 R 273 0 R 274 0 R 275 0 R 276 0 R 277 0 R 183 0 R 184 0 R /ArtBox [0.0 0.0 603.0 774.0] /Type /Encoding Get up to $600 when you open a new Merrill Edge account with at least $20,000. stream << >> << endobj /O /Layout /Type /Page /ProcSet [/PDF /Text] /Filter /FlateDecode finder.com's rating: 2.8 / 5.0. Merrill is not responsible for and does not endorse, guarantee or monitor content, availability, viewpoints, products or services that are offered or expressed on other websites. /Parent 11 0 R /S /S MAP4912528-01132024. >> >> /P 296 0 R Some restrictions may apply to purpose loans, and not all managed accounts are eligible as collateral. /Endnote /Note << 8 0 obj /StructParent 6 /C /Pa3 /ColorSpace << Talk to your advisor about how these solutions might fit into your financial strategy. Merrill offers a broad range of brokerage, investment advisory (including financial planning) and other services. /MarkInfo << /Pages 12 0 R Father, husband, self-directed investor, financial freedom enthusiast, and perpetual learner. 5 86 0 R 6 94 0 R 7 94 0 R 8 96 0 R 9 96 0 R 0000069376 00000 n may change its collateral maintenance requirements at any time. << 0000012908 00000 n << You should review the LMA Loan Agreement and related documents and disclosures carefully and consult with your own independent tax and legal advisors. Is the LMA a fixed interest rate or variable? /K [252 0 R 253 0 R] /W 0 /K 219 0 R 162 0 R 163 0 R 164 0 R 165 0 R 166 0 R 167 0 R 168 0 R 169 0 R 170 0 R 171 0 R 99.6% correlation with 1M LIBOR . /MC0 6 0 R 88 189 0 R 89 [106 0 R 107 0 R 108 0 R 109 0 R 110 0 R 111 0 R 112 0 R 113 0 R 114 0 R 115 0 R Merrill is not responsible for and does not endorse, guarantee or monitor content, availability, viewpoints, products or services that are offered or expressed on other websites. 0000068730 00000 n For the remaining USD LIBOR settings, after June 30, 2023, the overnight and 12-month USD LIBOR settings are expected . >> I am rather simple minded when it comes to finances but reading up on this subject it sounds like it's a Pledged Asset loan.His thoughts make it sound like we can get a LMA for around 2.5% or less, we do not need to pay back on a set schedule, we can keep our money in stock and continue to have it grow/dividend. 0000003517 00000 n >> 240 0 R 241 0 R 242 0 R 243 0 R 244 0 R 245 0 R 246 0 R 247 0 R 248 0 R 249 0 R /W 0 Merrill is not responsible for and does not endorse, guarantee or monitor content, availability, viewpoints, products or services that are offered or expressed on other websites. >> For more information about these services and their differences, speak with your Merrill financial advisor. When you purchase securities, you may pay for the securities in full, or if your account has been established as a margin account with the Margin Lending Program, you may borrow part of the purchase price from Merrill, thereby leveraging your investment. /A 174 0 R /Count 18 For details on Bank of America employee qualification requirements, please visit the Employee Financial Services intranet site. Employees of companies participating in the Bank of America Employee Banking and Investing Program may be eligible to enroll on customized terms. Please visit https://promo.bankofamerica.com/cebi-disclosures.> for details. He stated we could use options to insure our stock value but didnt go into detail on that. All applications for LMA accounts are subject to approval by Bank of America, N.A. /A 288 0 R /Type /Annot Whether youre defining goals, addressing change or figuring out how to move forward, Merrill and Bank of America offer a wide range of solutions to help you take the next step and stay on track. /Font << 8 0 obj /StructTreeRoot 4 0 R stream /TextIndent -10.0 /TextAlign /Center /StartIndent 13.0 Asset allocation, rebalancing and diversification do not guarantee against risk in broadly declining markets. /Count 5 /LineHeight 8.0 /Border [0 0 0] /P 279 0 R We can force the sale of securities or other assets in your account(s). /O /Layout A decline in the value of your collateral assets may require you to provide additional funds or securities to avoid a collateral maintenance call. Consult your tax advisor for tax advice about margin interest deductibility. /ID (-3iqb6ZERkSf-Hc_vzJcOw) This material does not take into account a clients particular investment objectives, financial situations, or needs and is not intended as a recommendation, offer, or solicitation for the purchase or sale of any security or investment strategy. /StartIndent 27.0 /Pa12 << /PDFDocEncoding 15 0 R endobj MLPF&S is a registered broker-dealer,registered investment adviser,Member SIPCand a wholly owned subsidiary of BofA Corp. Insurance and annuity products are offered through Merrill Lynch Life Agency Inc., a licensed insurance agency and wholly owned subsidiary of Bank of America Corporation. As a forward -looking term rate, BSBY. Programs, rates, terms and conditions are subject to change without notice. Bank of America Private Bank is a division of Bank of America, N.A. I recently used a Merrill Lynch LMA to buy a place. /Parent 3 0 R /MarkInfo << /ParentTreeNextKey 104 You can lose more funds than are held in the collateral account. >> /ID (FbBoOIB1aUeU-9YtpzOypg) /Name (ECS Slug) Investment, insurance and annuity products: Then we can provide you with relevant answers. A decline in the value of securities that are purchased on margin may require you to provide additional funds to use to avoid the forced sale of those securities or other securities or assets in your account(s). . >> John of Aberdeen, OH Verified Reviewer. >> /StartIndent 21.0 endobj 24 0 obj /K [254 0 R 255 0 R] endobj /A 177 0 R /O /Layout Get timely insights on what's happening with the markets & global economy to help you stay on track. << 18 0 obj Answer some questions and we'll suggest a couple of advisors best suited to your needs. % << null null 164 0 R 165 0 R 166 0 R null 167 0 R null 168 0 R null /P 26 0 R /K 232 0 R 185 0 R 186 0 R 187 0 R 188 0 R] /A 284 0 R endobj >> Are you looking for a flexible, convenient way to manage cash flow? Investment, insurance and annuity products: Then we can provide you with relevant answers. Borrow with floating interest rates, based upon the Merrill Base Lending Rate (plus a spread), total relationship size, and amount borrowed. If the equity in your account falls below the maintenance margin requirements or Merrills higher house requirements, we can sell the securities or other assets in any of your accounts held by us to cover the margin deficiency. This is extremely low given the current interest rate environment. 151 0 R 152 0 R 153 0 R 154 0 R 155 0 R 156 0 R] Take advantage of pricing based on your overall relationship. 14 0 obj Connect with to continue the conversation, https://promo.bankofamerica.com/cebi-disclosures.>. >> %PDF-1.6 All rights are reserved. }3rpF@j,7/nr~o/Ob?`K6M[7)eLyzgtJC8ICOerJ_Vp[?ra'7Q >> /StructParent 9 <> Publication of the 1-month and 6-month synthetic GBP LIBOR settings will cease after March 31, 2023, while publication of 3-month synthetic GBP LIBOR setting will cease after March 31, 2024. /SpaceBefore 4.0 >> 12 0 obj /W 0 This material is not intended as a recommendation, offer or solicitation for the purchase or sale of any security or investment strategy. This material does not take into account a clients particular investment objectives, financial situations, or needs and is not intended as a recommendation, offer, or solicitation for the purchase or sale of any security or investment strategy. << /PageLayout /OneColumn 0000032155 00000 n endobj The client can lose more funds than deposited in such collateral account. >> << 10 0 obj >> /K 217 0 R >> about 630 shares of BAC (bank of america) stock that i was granted in 2007, finally vested in 2011. The Loan Management Account (LMA account) is a demand line of credit provided by Bank of America, N.A., Member FDIC. Beginning April 1, 2015, EMA accounts will no longer be valued together with . /Subtype /Link /Subtype /Link << 27 0 obj /H /I >> One Bryant Park. Banking products are provided by Bank of America, N.A. 0000032078 00000 n You are not entitled to an extension of time to satisfy the Banks collateral maintenance requirement. /Pa4 << /K [256 0 R 257 0 R] Original review: Dec. 10, 2022. Investing involves risk. /S /TH /Pa24 << Merrill Lynch Affiliated Banks. Is this LMA thing crazy or a good idea? /Type /OCG 0000014734 00000 n How plan loans work. EMA account(s) determines the interest rate you receive on deposits in the Merrill Lynch Bank Deposit Program. Past performance does not guarantee future results. Answer some questions and we'll suggest a couple of advisors best suited to your needs. Merrill, its affiliates, and financial advisors do not provide legal, tax, or accounting advice. A general purpose loan must be repaid within five years, or it will be treated as a taxable distribution. /T1_0 32 0 R /A 299 0 R /S /TH /P 298 0 R /Lang << For more information about these services and their differences, speak with your Merrill financial advisor. /Type /Annot /H /I /H /I Past performance does not guarantee future results. << endobj endobj Rest is Roth and 401k invested in Vanguard Index funds. Please refer to your account documents for more information. 82 0 R 83 0 R 84 0 R 85 0 R 86 0 R 87 0 R 88 0 R 89 0 R 90 0 R 91 0 R /AcroForm 2 0 R endobj /GS0 52 0 R << You can also obtain current yield and interest rate information by contacting your Merrill Lynch financial advisor or Merrill Edge /MediaBox [0.0 0.0 603.0 774.0] /TextDecorationType /Underline /S /S /StructParents 86 Is the minimum value (loanAmount + 20% 15% 40%) and if it dips under that they need more funds? /Group 30 0 R /LastModified Trust, fiduciary and investment management services, including assets managed by the Specialty Asset Management team, are provided by Bank of America, N.A., Member FDIC and wholly owned subsidiary of Bank of America Corporation (BofA Corp.), and its agents. /K 223 0 R /Filter /FlateDecode R**u @"$7)|=>ebD~*T7S:hnQn~wWwWwWw? x}KF=E {k C7 $|CO`,Vf9* z["iAwss{NGw7~O?~_o0Cvw(:j3\9RP|:|r\c~8]\2OaU.-8l)0Y3.ZW,!3X"k+8]f\D#UK+cb\bjZ,x?}/to~ OS>N /Pa6 << call 855.332.5920. /TextIndent -5.0 /O /Layout FINRA Sanctions Against the Firm Underline the Dangers of Leverage-Backed Lines of Credit and Margin Risk . /Type /Border >> /Type /Catalog >> stream /ClassMap 25 0 R 1194 0 obj <>stream >> 0000004141 00000 n /Annots [11 0 R 12 0 R 13 0 R 14 0 R 15 0 R 16 0 R 17 0 R 18 0 R 19 0 R 20 0 R >> 0000067298 00000 n /PageLayout /SinglePage /Kids [6 0 R 7 0 R] 43 0 obj >> /Count 17 >> Currently, the interest rate is just 0.01%. << >> These risks include the following: Carefully choosing the quality of your investments you borrow against and the amount you borrow can help reduce the likelihood of a maintenance call. << /acircumflex /atilde /adieresis /aring /ae /ccedilla /egrave /eacute /ecircumflex /edieresis % Creative solutions for your personal and business needs. /Rotate 0 /Type /OCG By clicking continue, you will be taken to a website that is not affiliated with Merrill and may offer a different privacy policy and level of security. Merrill Edge gets high marks when it comes to account fees: There are no partial transfer, annual or inactivity fees for brokerage accounts.