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From: brett@ucla-cs.UUCP
Newsgroups: net.invest
Subject: Re: M-L CMA info request
Message-ID: <7091@ucla-cs.ARPA>
Date: Sat, 12-Oct-85 13:52:31 EDT
Article-I.D.: ucla-cs.7091
Posted: Sat Oct 12 13:52:31 1985
Date-Received: Tue, 15-Oct-85 11:34:33 EDT
References: <4300014@inmet.UUCP> <1207@ihuxn.UUCP>
Organization: UCLA Computer Science Department
Lines: 64


> I've had a M-L CMA for about 7 years.  For the $35/year they charge
> me, I get:
> 
> (1) them to keep all my stock certificates (which were a pain for
>     me to squirrel away--safety dep. boxes are expensive!);

Most brokerage firms would prefer that you not take delivery on your
certificates.  Some will charge you a fee if you want them delivered
(i.e. Brown and Company).  Saving money on a safe deposit box is not
a good justification for their $35.00 charge in my opinion.

> (2) a checking account on which I can write any number of checks
>     for any amount I like;

So you could have a money fund that charges you nothing and a bank
account.  Draw in 500.00 increments from the fund and deposit to
the bank account.  Many funds have lowered the minimum on checks you
can write anyhow.  I don't see this as worth $35.00.

> (3) a VISA card that I never get a bill from (it's a debit card
>     and shows up on the very clear and concise monthly statement);

Yes, it may seem convenient to use a debit card EXCEPT:
debit cards are like cash.  If they are lost or stolen you are liable
for up to $500.00.  With a credit card the maximum liability is $50.00.  
So you have to protect your debit card expecially well from theft.
You also lose the valuable intervention that the bank can do on your 
behalf when the goods you purchase are "defective".  With a credit card
you have more consumer protection; the bank can intervene on your
behalf.  You lose this with a debit card.

In my opinion, you are better off with a credit card if you can
get it.  If you can't you are still better off with a credit card 
with a credit line secured by the actual cash.  There are many
outfits like "Timesaver" that can fix you up.  Also, typical fees 
for credit cards are not 35.00.  (American express is a charge card).
Two of my three credit cards are no-fee cards.  So, I still dont 
see how Merill comes up with $35.00.

Merill does have nice statements though.  It's amazing how much
better they are then the American Express format, which I think 
is the pits.

> (4) no minimum balance requirement (though it took $20K in cash +
>     securities to start).

If it falls below $1000.00 Merill can close out the account, if I
recall from when I read the prospectus two years ago.  The $20K is
a killer though.



-- 
Brett Fleisch
University of California Los Angeles
LOCUS Research Group
3804-f Boelter Hall
Los Angeles, CA 90024
Phone: (213) 825-2756, (213) 474-5317 

brett@LOCUS.UCLA.EDU
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