Investments are notorious for the risk they carry and after the market collapse in 2008, it was tough to convince consumers to invest their funds again. In fact, there are a number of reasons why the lessons of 2008 make an investment today a bit tougher and it’s not just because of the lack of trust the general public has in the product. Those who are keen to invest in just any product, however, are warned to have a read through this first before making that final decision.
Although this review is by no means advice, it does provide a fair bit of information on an investment division, Merrill Edge. The Merrill group was one of the financial institutions that were hit the hardest when the subprime mortgage disaster came to light. But, under the watchful eye of tighter regulation, this division could just redeem itself. The review of Bank of America Investments takes a closer look at the products on offer to determine whether they compare well on a global scale.
See how this bank compares to a well-known global competitor, Credit Agricole Investments.
Rookie Mistakes Investors Make When Investing
There is nothing bad about a bad investment decision until that decision changes the investor’s life for the worst. This happens when there are a few basic steps the investors neglect when they find themselves in a fund that seems to be performing well. The good performance is not necessarily an indication of future performance, and those who find themselves on the wrong side soon learn this.
All Investments are In the Same Funds
This is one of those things where the investor will just know it was a bad idea when a crash happens, however, the fund may have performed at a level that just seemed too good to be true. Even if the risk rating on an investment is very low or low, there is still the opportunity that the fund may fail. Even low-risk funds could cost investors all their funds. If investors insist on one fund for the entire investment portfolio, it might be prudent to look for a fund that carries a guarantee.
There is No Understanding of the Various Risk Profiles
Investors are drawn to the high level of returns on an account, but there is no understanding that the higher the potential for the return, the higher the risk. The lower return investments may carry a lower risk, but there is still a risk. The only investments that don’t pose a risk to an investor, is the one that offers a guarantee. Those who prefer not to be exposed to risk at all may wish to consider bank savings accounts or CDs.
Thinking It’s a Quick Fix
This is one of the top flaws that over exuberant financial advisors have. They have the ability to convince their clients that they will get rich in no time, however, it will take some time for the investment to recover from the fees and charges. Furthermore, the investment may also need to weather some market fluctuations before showing any real results. Investors need to understand that they’re in it for the long haul.
We also did a full review on Bank of America.
Bank of America Investments Product Offerings
Customers can invest in shares of publicly traded companies. These take place across a variety of sectors.
- These can be used to build a balanced portfolio.
- Furthermore, customers can choose a number of choices across geographies, sectors, and industries.
- These are suitable for liquidity and are ideal for new or experienced investors.
- Finally, customers pay $6.95 per unlimited online equity and ETF trade. Customers can also learn how to qualify for $0 trades.
Exchange-Traded Funds (ETFs)
This financial instrument trades like a stock but has the diversification of a mutual fund. Furthermore, it offers flexibility to hold and trade shares.
- This type of investments provides customers with the opportunity to build a balanced portfolio.
- Customers who require liquidity will also find this suitable.
- Furthermore, the investment provides the potential for tax-efficiency.
- Also, there is also the chance for index fund investing.
- Customers have the potential to experience growth, value, and income strategies.
- This investment type is suitable for new and experienced investors.
- Finally, the pricing is $6.95 per unlimited online equity and ETF trade. Also, customers can learn how to qualify for $0 trades.
This investment type allows customers to invest in professionally managed funds. These funds are aligned to a variety of investment and time strategies.
- With this option, customers have the opportunity to build a balanced portfolio. They are also exposed to built-in diversification.
- Customers can meet long-term investment goals as it contains index fund investing.
- Furthermore, it includes growth, value, and income strategies.
- This investment type is suitable for new and experienced investors.
- Finally, customers have a choice of thousands of well-known funds.
Fixed Income and Bonds
Customers who want to have variety in their investment strategy will find this suitable. It enables them to invest in a broad range of Treasuries, municipal and corporate bonds, and CDs.
- This forms part of the product range that allows customers to build up a balanced portfolio.
- Customers have the opportunity to generate a regular income.
- Furthermore, this type of investment helps reduce portfolio volatility which allows customers to reach long and short term goals.
- The investment type is suitable for new and experienced investors.
- Finally, customers have their price and yield as quoted.
This is the perfect opportunity for investors to discover mini options. Furthermore, these contracts cost just $0.75 per contract.
- Customers who are considered experienced investors will find this suitable.
- Finally, customers pay just $6.95.
BofAML US 1 List
Customers get to experience the buy-rated recommendations by BofA Merrill Lynch Global Research Analysts.
- This option allows customers to narrow their search for stock investment choices.
- Furthermore, this service is provided to Merrill Lynch clients at no additional charge.
Merrill Edge Select Funds4
With this investment, customers have the opportunity to rely on Merrill Lynch to do the guesswork for them. Furthermore, this includes finding mutual funds which include equity and fixed income funds.
- Customers enjoy the help to choose from thousands of funds. These are from popular fund families for self-directed investors.
- Also, Merrill Lynch customers enjoy this service at no extra charge.
Merrill Edge Select ETFs
This is a suitable option for those who need assistance to choose their ETFs.
- Customers enjoy diversified equity exposure from a portfolio of securities. These are based on a specific index, geographies regions, or investing styles.
- Finally, these services are provided to Merrill Edge customers at no extra charge.
Merrill Edge Guided Investing
This is an online investment tool that allows customers to combine the best of online services with a professionally managed portfolio.
- Customers have the benefit of this service at a low cost.
- Furthermore, this is a diversified portfolio of ETFs which allow customers to monitor their performance online.
- Finally, customers are required to make a minimum investment of $5,000 and a low 0.45% annual fee.
Merrill Edge Select Portfolios
This option allows customers to meet with a Merrill Lynch advisor in order to establish a diversified portfolio of investments. These align to unique investment goals, time horizons, risk tolerance, and liquidity needs.
- Customers who require professional advice and guidance will find this suitable.
- Finally, a minimum investment of $20,000 is required and there is a 0.85% annual account management fee.
Not only is this is a great way to build up a savings pocket for retirement, it is also the ideal way to receive personal tax breaks.
- Furthermore, loans and withdrawals are available if customers choose those features in their plan. There are, however, tax implications.
- Also, customers can contribute to the plan as their cash flow allows.
- Finally, customers have the option to seek advice and guidance.
Savings accounts are also a good option for customers. We recently did a full review on the options provided by Bank of America.
Critical Reviews Rating Bank of America Investments – 10 of 10
This review covers a small portion of investments options. There is also a myriad of information on the website that will give customers a clear indication of where they’re headed.
Customers have the option to invest their funds on their own, with guidance, or online. This provides them with a number of opportunities to start on the investment front. Also, many of the investment types are suitable for those who have some experience as well as those who have no history in investment at all.
The investments all have subsections that provide clear information and there is enough information on the website to allow customers to have some idea of what they want to go with. Customers should seek assistance directly from their advisors if they're not sure about their investments.
Finally, customers who wish to invest have no need to look elsewhere as there are a number of different baskets in which to place their funds. This is a well-managed offering and there is no other rating but a perfect score.
Deutsche Bank also offers a comprehensive investment portfolio.