HOW THE MERGER AFFECTS YOU
Wachovia's latest deal will give A.G. Edwards's clients access to new products and services -- although it may result in higher fees and lower returns for some. Here are some potential pros and cons:
Potential Pros:
• Access to Wachovia's banking products, such as checking accounts, mortgages and trusts.
• Help with financial planning with more managed accounts, including portfolios of separately managed accounts, mutual funds and exchange-traded funds.
• Access to more alternative investments, such as hedge funds and structured products.
Potential Cons:
• Rates on idle cash in brokerage accounts could be swept to Wachovia's insured bank accounts, which pay lower rates than A.G. Edwards's cash-sweep program.
• Investors who move from traditional commissioned-brokerage accounts may pay higher fees in Wachovia's managed accounts.
• Other terms, such as margin loan rates, may be less favorable for smaller investors.
