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How about ML's new "death benefit"?

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Dec 21, 2006 4:19 pm

Not to pick on ML, because I have no doubt others will follow, but how about the death benefit they just announced? The late FA's family gets 36% of the T12, in addiotion to any other insurance. The bennie is funded by (I simplify here) ML keeping 50% of the next 12 months and a smaller percentage every year until year 5.

I could be wrong here, but it's a bennie that makes the firm money. Clever, very clever these bean counters...

Dec 21, 2006 4:46 pm

keeping 50% of the following 12?

So if you work in a Merrill branch and Big Swinging Richard chokes on a bone in his chicken salad. His book id split up, you get an account (upon which you are making 35%) but the firm keeps half? So you're working for 17.5%? (but the whole 35% goes to your grid for production levels).

You get two phone calls at the same day and one is your 35% client and one is your 17.5% client... who get's picked up first?

If you have an account at Merrill, and your broker dies, you might just as well LEAVE!

Mr. A

Dec 21, 2006 4:49 pm

 "... id split up..."

Freud would have a field day, as they say.

Mr. A

Dec 22, 2006 11:46 pm

[quote=mranonymous2u]

keeping 50% of the following 12?

You get two phone calls at the same day and one is your 35% client and one is your 17.5% client... who get's picked up first?

If you have an account at Merrill, and your broker dies, you might just as well LEAVE!

Mr. A

[/quote]

I don't understand why people are having such a tough time with this death benefit idea:

You die, Merril benefits.

It's all very simple.


Dec 23, 2006 5:13 am

[quote=AllREIT]

[quote=mranonymous2u]

keeping 50% of the following 12?

You get two phone calls at the same day and one is your 35% client and one is your 17.5% client... who get's picked up first?

If you have an account at Merrill, and your broker dies, you might just as well LEAVE!

Mr. A

[/quote]

I don't understand why people are having such a tough time with this death benefit idea:

You die, Merril benefits.

It's all very simple.


[/quote]


Dec 26, 2006 7:11 pm

To allow for a smooth transition, the deceased FA’s book of business will be redistributed to other advisors in the branch. But advisors receiving those accounts will earn a lower payout based on a scale identical to the parameters of the client-transition program that is applied when brokers leave the firm. Instead of getting full credit immediately for serving inherited accounts, Merrill reps will get paid for 50 percent of new business they generate from a deceased colleague’s clients during the first two years, with credit rising exponentially to 60 percent in the third year, 65 percent in the fourth year and, eventually, 100 percent in the fifth year. Previously, brokers were credited on a case-by-case basis with some getting full credit and others getting partial credit

Frist of all, I'm not sure I'd call a decrease in the rape rate from 50% to 40% "exponential." Even less so in the 40 to 35% drop in year 4.

This is what I don't like about this publication, too many of the articles seem to have been written by the "Minister Of Information" at the particular firm in question.

Mr.A