Financial Wellness - Rhode Island Manufacturers Association
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Financial Wellness ©2021 Morgan Stanley Smith Barney LLC. Member SIPC
Morgan Stanley Financial Wellness The Case for Financial Wellness
What Prevents Your Firm from Thriving?
We Surveyed 1,000 Full-Time Employees of Mid-Sized to Large US Companies and Found
Employees at All Income Levels Are Financially Stressed Financial Stress Impacts Productivity (3)
How much stress are you experiencing in the following areas of your life? (1)
Over half
of workers whose
58% 51% 45% 44% households earn
$100,000+ say their 3 out of 4
finances cause them of employees with high financial stress say
Financial Work Health Family stress it distracts them at work
Concerns Situation Issues Issues
Employees Are Looking to Their
Employees Have Diverse Financial Needs Employers for Holistic Solutions (4)
Where do employees need help? (2) Say it’s important for
74% an employer to offer
53% 50% financial wellness benefits
46% 44% 39% 38% 36% 35%
Say they would be more
60% likely to stay at a job that
Building Planning for Building Choosing and Managing Bills Improving Managing Assessing
Retirement Their Families’ Emergency Monitoring and Spending Credit Debt Insurance Needs
provided useful financial
Savings Future Savings Investments and Coverage wellness programs
Source: Better for Employees, Better for Business: The Case for Employers to Invest in Employee Financial Health, Financial Health Network, 2018. Data comes from a survey of
1,000 U.S. workers employed full-time for companies with more than 500 employees. The survey was conducted on behalf of Financial Health Network in November and December
2018 by Greenwald & Associates, with strategic contributions and financial support from Morgan Stanley.
1. Answered “an extreme amount”, “a great deal” or “a fair amount of stress”
2. Answered ”A great deal or some help”
3. Answered “Very often, often, or sometimes”
4. Answered “Strongly agree or slightly agree”
MORGAN STANLEY FINANCIAL WELLNESS | MAY 2021 FOR USE WITH INSTITUTIONAL CLIENTS ONLY 3
Highlights from Survey Results
Employees Have Short, and Long-Term Financial Goals
Savings Priorities
89%
Retirement/wealth accumulation 82%
76%
67%
Building emergency savings 73%
74%
38%
Large item purchase; car or home 51%
58%
15%
Education expenses 29%
45%
BABY BOOMER GEN X MILLENNIAL
Alight report: 2020 Employee Wellbeing Mindset Study https://alight.com/research-insights/infographic-2020-employee-wellbeing-mindset-study
MORGAN STANLEY FINANCIAL WELLNESS | MAY 2021 FOR USE WITH INSTITUTIONAL CLIENTS ONLY 4
Highlights from Survey Results
Employees Need Help with Attaining their Goals
61% 53%
Believe there’s no way they’ll be Say they are often intimidated by
able to retire at the age they want financial matters
25%
Feel that their level of debt is
ruining the
quality of their life
Alight report: 2020 Employee Wellbeing Mindset Study https://alight.com/research-insights/infographic-2020-employee-wellbeing-mindset-study
MORGAN STANLEY FINANCIAL WELLNESS | MAY 2021 FOR USE WITH INSTITUTIONAL CLIENTS ONLY 5
Highlights from Survey Results
Financial Wellness is an Opportunity for Employers Across All Generations
1/3 78%
Fewer than 1/3 of workers
Employees with high
surveyed have access to benefits
financial stress who say
that can help them with critical
stress impacts them at work.
financial needs.
Do you currently offer a Financial Wellness Benefit?
Data comes from a survey of 1,000 U.S. workers employed full-time for companies with more than 500 employees. The survey was conducted on behalf of Financial Health
Network in November and December 2018 by Greenwald & Associates, with strategic contributions and financial support from Morgan Stanley.
MORGAN STANLEY FINANCIAL WELLNESS | MAY 2021 FOR USE WITH INSTITUTIONAL CLIENTS ONLY 6
When Employees Thrive, Companies Thrive Too
Comprehensive Employees Company
Workplace Solutions Thrive Thrives
Compensation & benefits Reduced stress Increased retention
Financial education & support Increased satisfaction at work Increased productivity
Investment & retirement solutions Increased loyalty Increased utilization of benefits
Source: Better for Employees, Better for Business: The Case for Employers to Invest in Employee Financial Health, Financial Health Network, 2018
MORGAN STANLEY FINANCIAL WELLNESS | MAY 2021 FOR USE WITH INSTITUTIONAL CLIENTS ONLY 7
Morgan Stanley Financial Wellness Financial Wellness Program Overview
What is Morgan Stanley’s Financial Wellness Offering?
Comprehensive Solutions to Help Address Employee Needs, Wherever They Are Today.
Financial Education Financial Coaching (1)
• Individual onsite financial • One-on-one telephonic-
consultations, delivered in based coaching for
conjunction with seminars and employees with basic
webinars financial needs
• Self-service digital Financial
Wellness Portal, matching
employees with personalized
educational journeys
FINANCIAL
WELLNESS
Financial Planning SOLUTIONS Executive Financial
Solutions Planning Services
• Employee has the • Financial Advisors help with
capability to implement the understanding complex
financial plan to meet their investment and wealth
goals structuring needs
• Financial Advisors • Personal tax solutions
create and implement available (2)
personalized wealth plans
1. Financial Coaching provided by My Secure Advantage.
2. Tax Preparation and Planning Services are offered for an additional fee through PricewaterhouseCoopers and Ernst & Young.
MORGAN STANLEY FINANCIAL WELLNESS | MAY 2021 FOR USE WITH INSTITUTIONAL CLIENTS ONLY 9Morgan Stanley Financial Wellness Our Digital Financial Wellness Offering
Empower Your Employees Through Our Custom Digital Portal
Tailored Education and Solutions for Employees to Help Achieve Their Financial Goals.
Journey begins with a
financial wellness
assessment
Gamified experience
based on assessment
results
Learn from 150+
articles, webinars,
videos and tools
Receive detailed
insights on employee
participation
FOR ILLUSTRATIVE PURPOSES ONLY
MORGAN STANLEY FINANCIAL WELLNESS | MAY 2021 FOR USE WITH INSTITUTIONAL CLIENTS ONLY 11Financial Education: Wellness Assessment
Your Employees Have the Option to Measure Their Financial Fitness and be Matched with
Personalized Journeys Through Our Wellness Assessment.
ASSESSMENT OUTCOME ACTION
Financial Wellness medals will guide
We start by asking questions to better Each journey will provide your
the employee on the strength of their
understand who your employee is, how employees with steps to complete, with
financial fitness followed by
they feel about their finances and the goal to help improve their financial
showcasing personalized journeys that
what’s important to them. wellbeing.
are specific to their financial needs.
MORGAN STANLEY FINANCIAL WELLNESS | MAY 2021 FOR USE WITH INSTITUTIONAL CLIENTS ONLY 12Interactive Digital Portal – Sample User Journey
We Make It Easy for Employees to Get Started, Wherever They Are on Their Financial Journey.
LANDING PAGE FINANCIAL WELLNESS ASSESSMENT
USER JOURNEYS
STUDENT LOAN REFINANCING YOUR 401(K) RECORDKEEPER SITE YOUR EQUITY ADMIN. PLATFORM
FOR ILLUSTRATIVE PURPOSES ONLY
MORGAN STANLEY FINANCIAL WELLNESS | MAY 2021 FOR USE WITH INSTITUTIONAL CLIENTS ONLY 13Morgan Stanley Financial Wellness Our Human Advice Channel
Engaging Education at All Levels
Helping Your Employees Make Better Decisions Through Onsite Seminars and Webinars.
EXAMPLE SEMINAR TOPICS
• Morgan Stanley Financial Wellness
FINANCIAL Program Overview
FUNDAMENTALS • The Path to Financial Wellness
• Investing 101
• Retirement Planning Basics
RETIREMENT
• Choosing Investments for Your
READINESS
401(k) / 403(b)
• Planning for Long-Term Care
COMPREHENSIVE
• Planning and Saving for College
Delivered by trained Financial Advisors PLANNING
• Financial Considerations for Divorce
Offered to your broad employee base CLIENT SEGMENTS • Raising Money-Savvy Kids
& LIFE • Assuming the Role of Caregiver
Rich library of ready-to-present seminars, live TRANSITIONS • Planning for Special Needs Children
and on-demand webinars
WEALTH • Impact Investing
Seminar customization and content production MANAGEMENT • The Value of Professional Advice
• Women and Wealth
services available
• Equity 101
CUSTOM EQUITY
Ability to target subgroups of your population TOPICS • Setting Your Equity Up for Success
• ESPP 101
MORGAN STANLEY FINANCIAL WELLNESS | MAY 2021 FOR USE WITH INSTITUTIONAL CLIENTS ONLY 15Individual Financial Consultations
One-on-One Consultations with a Morgan Stanley Financial Advisor to Help Employees
Answer Financial Questions in a Private Setting.
What’s the best way to save for How can I maximize usage of
my child’s college education? my company benefits?
How can creating a budget What are some options
help me reach my financial for repaying or refinancing
goals? my student loans?
EXAMPLE CONSULTATION TOPICS
• Divorce: Planning for the New
• Planning for Long-Term Care
FINANCIAL LIFE Beginning
• Raising Money-Savvy Kids
FUNDAMENTALS TRANSITIONS • Assuming the Role of Caregiver
• Retirement Income Planning
• Starting a Family
FINANCIAL • The Fundamentals of Investing
• The Value of Professional Advice
PLANNING • Retirement Saving Through Your WEALTH
• Investing with Impact
BASICS 401(k) / 403(b) MANAGEMENT
• Diversification and Allocation
• Planning for the Future
Consultations are typically delivered in conjunction with seminars and / or webinars. Topics listed are examples only.
MORGAN STANLEY FINANCIAL WELLNESS | MAY 2021 FOR USE WITH INSTITUTIONAL CLIENTS ONLY 16Financial Planning Solutions for All Levels
Addressing a Spectrum of Needs, from the Broad Employee Base to the C-Suite,
PHONE-BASED MID-LEVEL MANAGER EXECUTIVE FINANCIAL
FINANCIAL COACHING (1) FINANCIAL PLANNING PLANNING
Common Topics Include: Common Topics Include: Common Topics Include:
• Understanding and establishing • Validating savings strategies for • Complex wealth management
a budget retirement strategies
• Managing debt and credit • Basic wealth management services • Estate planning strategies and
• Beginning to save for retirement • Maximizing investment strategies tax planning (2)
and college expenses • Planning for education costs • Understanding unique
• Understanding the importance of compensation
long-term savings • Wealth structuring and transition
planning
Coaches available to A Financial Advisor works A highly experienced
discuss basic financial topics with your managers to Financial Advisor works with
and deliver support and develop and implement a your executives to coordinate
guidance goals-based financial plan a holistic wealth strategy
1. Financial Coaching provided by My Secure Advantage.
2. Tax Preparation and Planning Services are offered for an additional fee through PricewaterhouseCoopers and Ernst & Young.
MORGAN STANLEY FINANCIAL WELLNESS | MAY 2021 FOR USE WITH INSTITUTIONAL CLIENTS ONLY 17Financial Coaching to Help Build Healthy Financial Habits
Your Employees Have Questions – Connect Them With Coaches that Can Help.
How will What are UNBIASED
I fund my child’s some ways OFFERING
college I can decrease Provides one-on-one financial coaching through
a product agnostic, phone-based service called
education? my debt?
My Secure Advantage.
How can I create What are my
a budget plan options for APPEALS TO ALL
to help me reach repaying EMPLOYEES
my goals? student loans? Offers guidance for every age, professional level,
salary and life event – topics include budgeting,
saving for goals, debt management and credit issues.
MAXIMIZE EMPLOYEE
ENGAGEMENT
Helps employees navigate complex financial
decisions with a proven methodology that can help support
behavior change.
Financial coaching services are provided through our partnership with My Secure Advantage
MORGAN STANLEY FINANCIAL WELLNESS | MAY 2021 FOR USE WITH INSTITUTIONAL CLIENTS ONLY 18Financial Planning for Mid-Level Managers
Helping Managers Understand the Importance of Establishing a Financial Plan.
KEY FEATURES
Access to a Complete a goals- Investment Retirement Company- Tax services
dedicated based financial plan, strategies including readiness sponsored benefit available for an
Financial Advisor delivered annually asset allocation, tax- and education consultation additional cost (1)
with mid-year efficient strategies, funding planning
check-in to adjust and investment
for any life changes implementation
OUR GOALS-BASED PLANNING PROCESS
DISCOVER ADVISE TAKE ACTION TRACK PROGRESS
1. Tax Preparation and Planning Services are offered for an additional fee through PricewaterhouseCoopers and Ernst & Young.
MORGAN STANLEY FINANCIAL WELLNESS | MAY 2021 FOR USE WITH INSTITUTIONAL CLIENTS ONLY 19Comprehensive Executive Financial Planning
Work With a Highly Experienced Financial Advisor to Coordinate a Holistic Wealth Strategy,
Including an In-Depth Overview of Company Benefits That are Unique to Executives.
INVESTMENT MANAGEMENT
Asset Allocation, Traditional Investments,
Alternatives, Risk and Liquidity Management
PHILANTHROPY
MANAGEMENT SERVICES TAX STRATEGIES
Advice on Planned Giving Vehicles Tax-Efficient Investment
DEDICATED
e.g. Charitable Trusts, Family Strategies, Tax Preparation
FINANCIAL ADVISOR TEAM
Foundations, Donor-Advised Funds Coordination (4)
What’s Included
• Comprehensive financial plan,
CASH MANAGEMENT delivered annually TRUST AND ESTATE
AND LENDING • Estate planning strategy reviews PLANNING STRATEGIES
with family office team
Active Assets Account, • Minimum of 4 meetings per year, Wealth Transfer Strategies,
Morgan Stanley Credit Cards from delivered quarterly Intergenerational Needs,
American Express, Residential • Access to additional planning Trust & Estate Planning
Mortgage Loans, Securities specialists as needed Strategy Professionals (1) (2)
Based Lending
COMPENSATION &
INSURANCE BENEFITS PLANNING
Life, Long-Term Care, Compensation Planning &
Disability (3) Analysis, Stock Awards, Stock
Options
1. Although they may be admitted attorneys, Wealth and Estate Planning Strategists and other Estate Planning Strategies personnel holding legal degrees are acting purely in a non-
representative capacity. Neither they or Morgan Stanley provide tax or legal advice to clients or to Morgan Stanley.
2. Morgan Stanley Smith Barney LLC does not accept appointments nor will it act as a trustee but it will provide access to trust services through an appropriate third-party corporate trustee.
3. Insurance products are offered in conjunction with Morgan Stanley Smith Barney LLC's licensed insurance agency affiliates.
4. Tax Preparation and Planning Services are offered for an additional fee through PricewaterhouseCoopers and Ernst & Young.
MORGAN STANLEY FINANCIAL WELLNESS | MAY 2021 FOR USE WITH INSTITUTIONAL CLIENTS ONLY 20Morgan Stanley Financial Wellness Program Implementation and Reporting
The Importance of a Benefits Review and Analysis
We Understand how Finances Impact All Aspects of Your Employee’s Wellbeing – From
Everyday Money Management and Supporting Loved Ones to Financing Life Experiences.
We thoughtfully analyze your existing benefits and wellness offerings to guide our programming and identify opportunities
to integrate financial messaging across existing services so your employees can better navigate their financial journey.
Our program addresses the following:
Centralized Portal Cross-Promote Services
One designated place where Educates and informs vendors
employees can access all of the suite of services they can
finance-related information, refer employees to that can
facilitating vendor consolidation. support their financial needs.
Seamless Delivery Strategic Communications High-Touch Support
Alleviates the burden on HR Strategic messaging to Offers employees more
Teams by providing a strategic effectively drive financial seamless access to one-on-
framework, ideas and verbiage wellbeing topics across various one support to assist them with
to integrate the MSFW employee offerings. their unique needs – when and
program. where they need it.
MORGAN STANLEY FINANCIAL WELLNESS | MAY 2021 FOR USE WITH INSTITUTIONAL CLIENTS ONLY 22Our Process to Financial Wellness Programming
We Strive to Streamline Onboarding to Drive Utilization Through Communications and
Educational Seminars while Facilitating High-Touch Support and Financial Planning Services.
STEP 1: STEP 2: STEP 3:
• Disperse the Financial Wellness • Assessment results are reviewed and your • Upon receipt of your calendar, all
Assessment to gather what the top Financial Wellness calendar is customized to recommended communication
financial priorities / concerns are for your ensure services incorporated are the most campaigns, educational seminars and
employees. relevant. high-touch support opportunities are
• Morgan Stanley Financial Wellness • The financial planning services our Financial visible in one, consolidated view.
Team reviews your organization’s key Advisors and educators will deliver are noted
times of the year, leadership goals, in your calendar, addressing a spectrum of
industry trends and existing benefits. employee needs.
We collaborate with you to build a cohesive experience for your employees – one that integrates your
current benefit services and programs into one, cohesive offering. By leveraging our digital portal and
in-house curriculum, your benefits will be brought to life and help showcase the robust offerings
provided.
MORGAN STANLEY FINANCIAL WELLNESS | MAY 2021 FOR USE WITH INSTITUTIONAL CLIENTS ONLY 23Sample Financial Wellness Dashboard
Financial Wellness Program Results – Q3 2020
OVERALL FINANCIAL WELLNESS PROGRAM ENGAGEMENT
Overall Financial Wellness Assessment Score Assessment Score Trend Financial Wellness Engagement
25th 70 Q3 Visits 2,342
PERCENTILE
52 60
AVG. YTD Visits 10,223 Q3 Journeys
50 Platform Average
52
Completed:
40
75th % Returning 44% 385
PERCENTILE 30
This Quarter
20 Q3 Assessments 851 YTD Journeys
Completed:
10
0
YTD Assessments 1,115 823
Q3 2019 Q4 2019 Q1 2020 Q2 2020
0 70 00 - 30 31 - 56 57 - 70 % Assessed 15%
OVERALL INSIGHTS USER JOURNEY ENGAGEMENT ONLINE CONTENT: TOP RESOURCES & TOOLS
Journey Assigned Engaged Completed Top-5 Articles
do not contribute to
27% feel unprepared for 38% company-sponsored 1 Paying Down Debt 100% 95% 75%
1 Retirement: What are your needs?
retirement 2 How to Build a Budget
retirement plans
Top-5 Journeys
Retirement: 3 Consolidating Student Loans
2 80% 82% 66%
do not have a are not familiar with Getting to the Max 4 Understanding Your 401(k) Plan
62% financial plan put in 65% different types of Creating & 5 Do-it-Yourself Mutual Fund Investing
place to help investment products 3 77% 78% 60%
Keeping a Budget Top Tools / Calculators
achieve their goals
Planning your 1 How much will I need for retirement?
4 84% 66% 55%
Currently, have Finances 2 How much should I save for my goal?
70% are stressed about 74% some form of debt
3 How much am I spending?
their finances Paying off
5 55% 42% 48%
Student Loans 4 What is impact of increasing 401k contributions?
FINANCIAL EDUCATION & 4 635 9 851 31 107
PLANNING (TO DATE) Seminars Attendees Webinars Attendees Q3 Financial Plans YTD Financial Plans
For Illustrative Purposes Only.
MORGAN STANLEY FINANCIAL WELLNESS | MAY 2021 FOR USE WITH INSTITUTIONAL CLIENTS ONLY 24Who Can You Contact?
The Zitzmann Group at Morgan Stanley
One Financial Plaza
Providence, RI 02903
401-863-8427
john.zitzmann@morganstanley.com
sean.p.reilly@morganstanley.com
MORGAN STANLEY FINANCIAL WELLNESS | MAY 2021 FOR USE WITH INSTITUTIONAL CLIENTS ONLY 25Morgan Stanley Financial Wellness Appendix
Financial Planning Services Available
DIRECTOR OR SENIOR
GENERAL EMPLOYEE BASE EXECUTIVE OR C-SUITE
MANAGER
• Help in understanding • Personalized Wealth Planning • Tax Planning and Preparation
personal finances. based on life stages, needs and from third-party service providers
• Assistance in building and goals. • Managing complex wealth with
POSSIBLE NEEDS sticking to a budget. • Understanding different limited time
Tailored Services Dedicated to the Unique • Understanding the long-term investment strategies. • Wealth and Estate Planning
Needs of All Employees impact of debt. • Expanding financial knowledge. Strategies
DELIVERY
To Empower Employees to
Make Sound Financial
As Needed, Phone
Based Financial Coach
Decisions Dedicated Financial
Advisor, with In-Person
Consultations
ADVICE
Tailored Based on
Level of Need
Personalized Financial
Journeys
Complete Financial
From Personalized Financial Plan, Delivered
Journeys to Robust, Ongoing Annually
Wealth Management from a
Dedicated Financial Advisor Ongoing
Comprehensive
Financial Planning
Financial Education
SOLUTIONS
Focused on Building
To Help Employees at all Levels the Fundamentals
Pursue Their Financial Goals
Increased Care and Coverage Tax Planning and
Preparation Services (1) Extra Fee (1) Extra Fee (1)
as Needs Grow Increase
Specialized Services for Senior
Leaders and Executives Wealth and Estate
Planning Strategies
Comprehensive Wealth
Planning Dedicated to
Executive Level
1. Tax Preparation and Planning Services are offered for an additional fee through PricewaterhouseCoopers and Ernst & Young.
MORGAN STANLEY FINANCIAL WELLNESS | MAY 2021 FOR USE WITH INSTITUTIONAL CLIENTS ONLY 27Disclosures NOT ALL PRODUCTS AND SERVICES ARE AVAILABLE IN ALL JURISDICTIONS OR COUNTRIES. This material has been prepared for informational purposes only. It does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. Morgan Stanley Smith Barney LLC (“Morgan Stanley”) recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a Morgan Stanley Financial Advisor. The appropriateness of a particular investment or strategy will depend on an investor's individual circumstances and objectives. Asset Allocation and diversification do not assure a profit or protect against loss in declining financial markets. Insurance products are offered in conjunction with Morgan Stanley Smith Barney, LLCs licensed insurance agency affiliates. Past performance is not an indication or a guarantee of future results. Morgan Stanley Smith Barney LLC does not accept appointments nor will it act as a trustee but it will provide access to trust services through an appropriate third‐party corporate trustee. Certain content on Morgan Stanley Financial Wellness Portal including, but not limited to, calculators is being provided to Morgan Stanley Smith Barney LLC (“Morgan Stanley”) pursuant to an agreement with Financial Fitness Group (“FFG”). That content and materials on the Portal have been prepared for educational purposes only and do not constitute either a recommendation or a solicitation by Morgan Stanley and its employees to purchase or sell any investment or strategy. The calculators are hypothetical and are for illustrative and informational purposes only and do not represent the return on any investment. Actual results may vary. Morgan Stanley Smith Barney LLC (the “Firm”) and its affiliates do not currently offer tax services provided by PricewaterhouseCoopers and Ernst & Young (“the Service Providers”). The Service Providers are not affiliates of the Firm. Any review of the Service Providers performed by the Firm was based on information from sources that we believe are reliable but we cannot guarantee its accuracy or completeness. This referral should in no way be considered to be a solicitation by the Firm for business on behalf of the Service Providers. The Firm makes no representations regarding the tax services provided by the Service Providers. There may be additional tax service providers that can provide you similar services for comparative purposes. If you choose to contact the Service Providers, do thorough due diligence, and make your own independent decision. The Firm will not receive a referral fee for referring you to the Service Providers. The Firm is a diversified financial services company with millions of clients in several countries around the world. The Firm routinely enters into a variety of business relationships for which either the Firm receives compensation or pays for services, and such business relationships may include the named Service Providers, its employees or agents, or companies affiliated with the Service Providers. Individuals should consult their tax advisor for matters involving taxation and tax planning and their attorney for matters involving trust and estate planning, charitable giving, philanthropic planning and other legal matters. Tax laws are complex and subject to change. Morgan Stanley Smith Barney LLC (“Morgan Stanley”), its affiliates and Morgan Stanley Financial Advisors and Private Wealth Advisors do not provide tax or legal advice and are not “fiduciaries” (under ERISA, the Internal Revenue Code or otherwise) with respect to the services or activities described herein except as otherwise provided in writing by Morgan Stanley and/or as described at www.morganstanley.com/disclosures/dol. Individuals are encouraged to consult their tax and legal advisors (a) before establishing a retirement plan or account, and (b) regarding any potential tax, ERISA and related consequences of any investments made under such plan or account. The returns on a portfolio consisting primarily of sustainable investments or Environmental, Social and Governance (“ESG”) aware investments may be lower or higher than a portfolio that is more diversified or where decisions are based solely on investment considerations. Because sustainability/ESG criteria exclude some investments, investors may not be able to take advantage of the same opportunities or market trends as investors that do not use such criteria. Morgan Stanley offers a wide array of brokerage and advisory services to its clients, each of which may create a different type of relationship with different obligations to you. Please consult with your Financial Advisor to understand these differences. MORGAN STANLEY FINANCIAL WELLNESS | MAY 2021 FOR USE WITH INSTITUTIONAL CLIENTS ONLY 28
Disclosures
Differences between a brokerage and an investment advisory relationship:
You should understand the differences between a brokerage and advisory relationship. When providing you brokerage services, our legal obligations to you are governed by the
Securities Act of 1933, the Securities Exchange Act of 1934, the rules of self‐regulatory organizations such as the Financial Industry Regulatory Authority (FINRA), and state
securities laws, where applicable. When providing you advisory services, our legal obligations to you are governed by the Investment Advisers Act and applicable state securities
laws. These latter advisory obligations govern our conduct and disclosure requirements, creating a legal standard which is referred to as a “fiduciary” duty to you. Please call the help
desk if you have questions about your rights and our obligations to you, including the extent of our obligations to disclose conflicts of interest and to act in your best interest. For
additional answers to questions about the differences between our advisory and brokerage services, please visit our web site at https://www.morganstanley.com/wealth-
relationshipwithms/pdfs/understandingyourrelationship.pdf or contact us at 866‐866‐7426.
This is not a financial plan: This material is not a financial plan. A financial plan generally seeks to address a wide spectrum of your long‐term financial needs, and can include
recommendations about insurance, savings, tax and estate planning, and investments, taking into consideration your goals and situation, including anticipated retirement or other
employee benefits. Morgan Stanley will only prepare a financial plan at your specific request using Morgan Stanley approved financial planning software where you will enter into a
written agreement with a Financial Advisor. If you would like to have a financial plan prepared for you, please consult with a Morgan Stanley Financial Advisor. This material provides
a snapshot of your current financial position and can help you to focus on your financial resources and goals, and to create a strategy designed to get you closer toward meeting your
goal. Because the hypothetical results are calculated over many years, small changes can create large differences in potential future results. You should use this material to help you
focus on the factors that are most important to you.
Financial Coaching, provided by My Secure Advantage, in partnership with Morgan Stanley Financial Wellness is for informational and educational purposes only. It does not provide
individually tailored investment advice and has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. Morgan Stanley Smith
Barney LLC (“Morgan Stanley”) recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a Morgan
Stanley Financial Advisor for related questions. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.
The products or services referenced herein are provided by My Secure Advantage, an unaffiliated party. Neither Morgan Stanley Smith Barney LLC ("Morgan Stanley") nor its affiliates
are the provider of such products or services and will not have any input or responsibility concerning an individual’s eligibility for, or the terms and conditions associated with, these
products or services. Neither Morgan Stanley nor its affiliates shall be responsible for content of any advice, guidance or services provided by My Secure Advantage. Morgan Stanley
or its affiliates may participate in transactions on a basis separate from My Secure Advantage. Morgan Stanley or its affiliates may receive compensation in connection with referrals
made to My Secure Advantage. Any review of the My Secure Advantage performed by Morgan Stanley was based on information from sources that we believe are reliable but we
cannot guarantee its accuracy or completeness. This referral should in no way be considered to be a solicitation by the Firm for business on behalf of My Secure Advantage. The Firm
makes no representation regarding the appropriateness or otherwise of the products or services provided My Secure Advantage. There may be additional service providers for
comparative purposes. If you choose to contact My Secure Advantage, do thorough due diligence, and make your own independent decision.
The Morgan Stanley routinely enters into a variety of business relationships for which either the Firm receives compensation or pays for services, and such business relationships may
include the named Service Provider(s), its employees or agents, or companies affiliated with the Service Provider(s). The views, opinions, guidance or advice provided by My Secure
Advantage and/or their financial coaches (who are not Morgan Stanley employees) are solely those of their own, and do not necessarily reflect those of Morgan Stanley Smith Barney
LLC, or its affiliates. Morgan Stanley Smith Barney LLC, its affiliates and Morgan Stanley Financial Advisors and Private Wealth Advisors do not provide tax or legal advice. Individuals
should consult their tax advisor for matters involving taxation and tax planning and their attorney for matters involving trust and estate planning, charitable giving, philanthropic
planning and other legal matters.
Alternative investments often are speculative and include a high degree of risk. Investors could lose all or a substantial amount of their investment. Alternative investments are
appropriate only for eligible, long‐term investors who are willing to forgo liquidity and put capital at risk for an indefinite period of time. They may be highly illiquid and can engage in
leverage and other speculative practices that may increase the volatility and risk of loss. Alternative Investments typically have higher fees than traditional investments. Investors
should carefully review and consider potential risks before investing.
The Morgan Stanley Global Impact Funding Trust, Inc. (“MS GIFT, Inc.”) is an organization described in Section 501(c) (3) of the Internal Revenue Code of 1986, as amended. MS
Global Impact Funding Trust (“MS GIFT”) is a donor‐advised fund. Morgan Stanley Smith Barney LLC provides investment management and administrative services to MS GIFT.
MORGAN STANLEY FINANCIAL WELLNESS | MAY 2021 FOR USE WITH INSTITUTIONAL CLIENTS ONLY 29Disclosures
While we believe that MS GIFT provides a valuable philanthropic opportunity, contributions to MS GIFT are not appropriate for everyone. Other forms of charitable giving may be more
appropriate depending on a donor's specific situation. Of critical importance to any person considering making a donation to MS GIFT is the fact that any such donation is an
irrevocable contribution. Although donors will have certain rights to make recommendations to MS GIFT as described in the Donor Circular & Disclosure Statement, contributions
become the legal property of MS GIFT when donated.
The Donor Circular & Disclosure Statement describes the risks, fees and expenses associated with establishing and maintaining an MS GIFT account. Read it carefully before
contributing.
Individuals executing a 10b5‐1 trading plan should keep the following important considerations in mind:
(1) 10b5‐1 trading plans should be approved by the compliance officer or general counsel of the individual’s company.
(2) A 10b5‐1 trading plan may require a cessation of trading activities at times when lockups may be necessary to the company (i.e., secondary offerings, pooling transactions, etc.).
(3) A 10b5‐1 trading plan does not generally alter the restricted stock or other regulatory requirements (e.g., Rule 144, Section 16, Section 13) that may otherwise be applicable.
(4) 10b5‐1 trading plans that are modified or terminated early may weaken or cause the individual to lose the benefit of the affirmative defense.
(5) Public disclosure of 10b5‐1 trading plans (e.g., via press release) may be appropriate for some individuals.
(6) Most companies will permit 10b5‐1 trading plans to be entered into only during open window periods.
(7) Morgan Stanley, as well as some issuers, imposes a mandatory waiting period between the execution of a 10b5‐1 trading plan and the first sale pursuant to the plan.
The products or services referenced herein are provided by Credible.com, an unaffiliated party. Neither Morgan Stanley Smith Barney LLC ("Morgan Stanley") nor its affiliates are the
provider of such products or services and will not have any input or responsibility concerning an individual’s eligibility for, or the terms and conditions associated with, these products
or services. Neither Morgan Stanley nor its affiliates shall be responsible for content of any advice, guidance or services provided by Credible.com. Morgan Stanley or its affiliates may
participate in transactions on a basis separate from Credible.com. Morgan Stanley or its affiliates may receive compensation in connection with referrals made to Credible.com. Any
review of Credible.com performed by Morgan Stanley was based on information from sources that we believe are reliable but we cannot guarantee its accuracy or completeness. This
referral should in no way be considered to be a solicitation by the Firm for business on behalf of Credible.com. The Firm makes no representation regarding the appropriateness or
otherwise of the products or services provided Credible.com. There may be additional service providers for comparative purposes. If you choose to contact Credible.com, do thorough
due diligence, and make your own independent decision. The Morgan Stanley routinely enters into a variety of business relationships for which either the Firm receives compensation
or pays for services, and such business relationships may include Credible.com, its employees or agents, or companies affiliated with Credible.com. The views, opinions, guidance or
advice provided by Credible.com and/or their employees (who are not Morgan Stanley employees) are solely those of their own, and do not necessarily reflect those of Morgan
Stanley Smith Barney LLC, or its affiliates.
The Active Assets Account is a brokerage account offered through Morgan Stanley Smith Barney LLC.
The Morgan Stanley Debit Card is currently issued by UMB Bank, n.a., pursuant to a license from MasterCard International Incorporated. MasterCard and Maestro are registered
trademarks of MasterCard International Incorporated. The third‐party trademarks and service marks contained herein are the property of their respective owners.
The Morgan Stanley Credit Card from American Express is only available for clients who have an eligible Morgan Stanley Smith Barney LLC brokerage account (“eligible account”).
Eligible account means a Morgan Stanley Smith Barney LLC brokerage account held in your name or in the name of a revocable trust where the client is the grantor and trustee,
except for the following accounts: Charitable Remainder Annuity Trusts, Charitable Remainder Unitrusts, irrevocable trusts and employer‐sponsored accounts. Eligibility is subject to
change. American Express may cancel your Card Account and participation in this program, if you do not maintain an eligible account. Morgan Stanley Smith Barney LLC may
compensate your Financial Advisor and other employees in connection with your acquisition or use of the Morgan Stanley Credit Card from American Express.
The Morgan Stanley Credit Card from American Express is issued by American Express Bank, FSB, not Morgan Stanley Smith Barney LLC. Services and rewards for the Cards are
provided by Morgan Stanley Smith Barney LLC, American Express, or other third parties. Restrictions and other limitations apply. See the terms and conditions for the Cards for
details. Clients are urged to review fully before applying. See the terms and conditions for the Cards for details. Clients are urged to review fully before applying. Morgan Stanley, its
affiliates, and Morgan Stanley Financial Advisors and employees are not in the business of providing tax or legal advice. Clients should speak with their tax advisor regarding the
potential tax implications of the Rewards Program upon their specific circumstances.
MORGAN STANLEY FINANCIAL WELLNESS | MAY 2021 FOR USE WITH INSTITUTIONAL CLIENTS ONLY 30Disclosures The Morgan Stanley Mobile App is currently available for iPhone® and iPad® from the App StoreSM and AndroidTM on Google PlayTM. Subject to certain terms and conditions. Standard messaging and data rates from your provider may apply. Borrowing against securities may not be appropriate for everyone. You should be aware that there are risks associated with a securities based loan, including possible maintenance calls on short notice, and that market conditions can magnify any potential for loss. For details please see the important disclosures below. Tailored Lending is a loan/line of credit product offered by Morgan Stanley Private Bank, National Association, an affiliate of Morgan Stanley Smith Barney LLC. A Tailored Lending credit facility may be a committed or demand loan/line of credit. All Tailored Lending loans/lines of credit are subject to the underwriting standards and independent approval of Morgan Stanley Private Bank, National Association. Tailored Lending loans/lines of credit may not be available in all locations. Rates, terms, and programs are subject to change without notice. Other restrictions may apply. The information contained herein should not be construed as a commitment to lend. Morgan Stanley Private Bank, National Association is a Member FDIC that is primarily regulated by the Office of the Comptroller of the Currency. Important Risk Information for Securities Based Lending: You need to understand that: (1) Sufficient collateral must be maintained to support your loan(s) and to take future advances; (2) You may have to deposit additional cash or eligible securities on short notice; (3) Some or all of your securities may be sold without prior notice in order to maintain account equity at required maintenance levels. You will not be entitled to choose the securities that will be sold. These actions may interrupt your long‐term investment strategy and may result in adverse tax consequences or in additional fees being assessed; (4) Morgan Stanley Bank, N.A., Morgan Stanley Private Bank, National Association or Morgan Stanley Smith Barney LLC (collectively referred to as “Morgan Stanley”) reserves the right not to fund any advance request due to insufficient collateral or for any other reason except for any portion of a securities based loan that is identified as a committed facility; (5) Morgan Stanley reserves the right to increase your collateral maintenance requirements at any time without notice; and (6) Morgan Stanley reserves the right to call securities based loans at any time and for any reason. To be eligible for a securities based loan, a client must have a brokerage account at Morgan Stanley Smith Barney LLC that contains eligible securities, which shall serve as collateral for the securities based loan. Residential mortgage loans/home equity lines of credit are offered by Morgan Stanley Private Bank, National Association, an affiliate of Morgan Stanley Smith Barney LLC. With the exception of the pledged‐asset feature, an investment relationship with Morgan Stanley Smith Barney LLC does not have to be established or maintained to obtain the residential mortgage products offered by Morgan Stanley Private Bank, National Association. All residential mortgage loans/home equity lines of credit are subject to the underwriting standards and independent approval of Morgan Stanley Private Bank, National Association. Rates, terms, and programs are subject to change without notice. Residential mortgage loans/home equity lines of credit may not be available in all states; not available in Guam, Puerto Rico and the U.S. Virgin Islands. Other restrictions may apply. The information contained herein should not be construed as a commitment to lend. Morgan Stanley Private Bank, National Association is an Equal Housing Lender and Member FDIC that is primarily regulated by the Office of the Comptroller of the Currency. Nationwide Mortgage Licensing System Unique Identifier #663185. The proceeds from a residential mortgage loan (including draws and advances from a home equity line of credit) are not permitted to be used to purchase, trade, or carry eligible margin stock; repay margin debt that was used to purchase, trade, or carry margin stock; or to make payments on any amounts owed under the note, loan agreement, or loan security agreement; and cannot be deposited into a Morgan Stanley Smith Barney LLC or other brokerage account. Morgan Stanley Smith Barney LLC is a registered Broker/Dealer, Member SIPC, and not a bank. Where appropriate, Morgan Stanley Smith Barney LLC has entered into arrangements with banks and other third parties to assist in offering certain banking related products and services. Investment, insurance and annuity products offered through Morgan Stanley Smith Barney LLC are: NOT FDIC INSURED | MAY LOSE VALUE | NOT BANK GUARANTEED NOT A BANK DEPOSIT | NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY © 2021 Morgan Stanley Smith Barney LLC. Member SIPC. CRC 3439801 02/2021 MORGAN STANLEY FINANCIAL WELLNESS | MAY 2021 FOR USE WITH INSTITUTIONAL CLIENTS ONLY 31
You can also read
