Morgan Stanley Barney Smith is an investment firm with offices throughout the United States and the world. It has been in business since 1935, offering financial advice to businesses, governments and individual investors.
Active Assets Account
The active assets account from Morgan Stanley offers a group of services to help the individual investor manage money. Automatic cash sweep keeps cash available in bank accounts or money market accounts. Regular paychecks, social security benefits or pensions can be directly deposited into the active assets account. Dividends can be automatically reinvested and systematic investments can be made to other investment accounts. The account allows margin borrowing privileges against existing assets, although this should be used with caution. The account offers unlimited check writing, fund transfer and online bill payment. The active assets account provides detailed statements. The Choice Select brokerage account offers online trading, discounts for active trading and tax reporting for investors interested in actively trading. Money in the active assets account, up to $500,000, is insured by the SIPC (Securities Investor Protection Corporation). Investors should be aware that investment funds are not insured from losses because of a drop in the stock market. Those losses could include the capital invested as well as earnings. Some funds in the active assets account are covered under the FDIC as banked funds.
College Planning Accounts
Morgan Stanley Smith Barney offers 529 college savings plans and the Coverdell Education Savings Accounts (ESA). The 529 plans were established by an act of Congress in 1996. The accounts provide tax free growth and tax free withdrawal of funds used to pay for higher education expenses. The fund owner can be a grandparent, parent, relative or friend of the beneficiary. Should the original beneficiary choose not to go to pursue higher education or not require the funds, a new beneficiary can be named or the account can be liquidated, subject to taxes. The account owner retains control of the money even after the beneficiary reaches the age of 18. The ESA allows taxpayers to deposit money in a savings account, up to $2,000 per year, subject to income restrictions, for the purpose of education. Taxes on earnings are deferred and withdrawals for education expenses are tax free. There is no guarantee that invested funds will earn money and the capital may also be at risk. Investors should read the prospectus for each type of investment to understand the risk.
Morgan Stanley Smith Barney offers a variety of retirement accounts and a complimentary retirement review with a financial adviser to help investors choose the best option. A traditional IRA allows taxpayers to lower taxable income by contributing pre-tax money, subject to limits, into a designated retirement account. The Roth IRA allows taxpayers to contribute taxed money into a designated account and enjoy tax-free earnings. This account is also subject to limits. Rollover IRAs allow investors to combine retirement accounts, including 401k accounts, after changing jobs or retiring. There is no guarantee that invested funds will earn money and the capital may also be at risk. Investors should read the prospectus for each type of investment to understand the risk.
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