Morgan Stanley · NYSE:MS
Morgan Stanley — Investor Presentation (March 2025)
58 slides from Morgan Stanley's investor presentation, Mar 24, 2025
Slide 1: Wealth Management Perspectives
Wealth Management Perspectives
Slide 2: The Retirement Client Conversation Series
The Retirement Client Conversation Series Wealth Management Global Investment Office has developed two unique but complementary client conversations intended to drive important retirement discussions. For Clients Starting Out… For Clients Nearing or in Retirement… Part 1: Getting Funded for Retireme
Slide 3: Life Expectancy Continues Its Upward Historical Trend
How to Plan It Life Expectancy Continues Its Upward Historical Trend The Evolution of Retirement Age and Life Expectancy at Age 65 Annual data as of December 2022 90 85 85 82 80 75 Longer Retirements Are More Financially 70 Challenging 67 65 60 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Slide 4: Inflation Erodes the Purchasing Power of Your Savings
How to Plan It Inflation Erodes the Purchasing Power of Your Savings Purchasing Power of $1 Since 1985¹ Annual data as of December 30, 2022 $1.00 $0.90 The US dollar has lost 65% of its value since $0.80 1985 and 43% of its value since 2000. Real returns (after inflation) are what matter. $0.70 $0.6
Slide 5: Lower Rates and Lower Growth Mean Lower Returns
How to Plan It Lower Rates and Lower Growth Mean Lower Returns Stock and Bond Blends Monthly Data as of December 30, 2022 12% Historical 20-Year Period Current 20-Year Forecast¹ Current 7-Year Forecast¹ 10% 8% Annualized Return 6% 4% 100% Bonds 100% Stocks 100% Bonds 80% Stocks 60% Stocks 20% Bonds
Slide 6: Do You Know What Retirement Will Cost?
How to Plan It Do You Know What Retirement Will Cost? Assuming retirement at age 65, the cost of retirement will depend heavily on the lifestyle you’re accustomed to. For illustrative purposes only Investor A (Single) Investor B (Joint-Household) Investor C (Joint-Household) $80,000 $150,000 $300,00
Slide 7: Need to Save Early: Time Is Money
How to Save Need to Save Early: Time Is Money The Power of Compounding and Investing Time Horizon¹ For illustrative purposes only $600,000 Alex Jordan Taylor - $3,000 invested per year - $4,000 invested per year -$6,000 invested per year between ages 30 and 70 between ages 40 and 70 between ages 50
Slide 8: Social Security Replacement Ratio by Income Bracket
How to Save Social Security Replacement Ratio by Income Bracket Retirees in higher income brackets have to plan on covering their needs from savings as they won’t get much lifestyle support from Social Security, given its benefit formula. Replacement Rate by Household Income For illustrative purpose
Slide 9: Prioritizing Long-Term Retirement Savings
How to Save Prioritizing Long-Term Retirement Savings Where to put your savings is almost as important as how much you save. The hierarchy below is a good rule of thumb to set your saving priorities. 1 2 3 4 5 6 7 Emergency Health Savings Defined Additional Additional Individual Taxable Reserve (3-6
Slide 10: Tax Implication for Retirement Savings by Account Type
How to Manage Taxes Tax Implication for Retirement Savings by Account Type Contribution, Growth, Distribution Tax-Deductible Tax-Deferred Tax-Free Contributions/Investments Account Growth Withdrawals Pre-Tax 401(k) / Taxable Traditional IRA (income tax) For qualified Roth 401(k) / IRA withdrawals Af
Slide 11: Get More 'Bang for Your Buck': Tax Efficiency Is Critical
How to Manage Taxes Get More ‘Bang for Your Buck’: Tax Efficiency Is Critical Taxable vs. Tax-Deferred Account1 For illustrative purposes only $35,000 $30,000 $28,717 Taxes can significantly erode your investment returns over time $25,000 $20,000 $18,727 Ending Balance $15,000 $10,000 $5,000 $0 0 5
Slide 12: Asset Location Can Increase Wealth Accumulation
How to Manage Taxes Asset Location Can Increase Wealth Accumulation Investors can maximize tax savings by tax-optimizing their asset location across account types ($1.5 million assumed initial wealth) Taxable Account Tax-Deferred Account Tax-Exempt Account 5% 5% 20% 20% 15% 15% Asset Allocation 10%
Slide 13: "Harvesting" Losses Can Offset Taxes on Realized Gains
How to Manage Taxes “Harvesting” Losses Can Offset Taxes on Realized Gains Security A and B Performance1 Security A and B Combined Portfolio1 $2,500 Security A has appreciated and will incur a tax liability when sold Losses from Security B $1,900 $2,000 offset gains from security A, $1,500 $792 redu
Slide 14: Equities Have Tended to Outperform in the Long Run
How to Invest It Equities Have Tended to Outperform in the Long Run The longer the holding period, the more reliable growth-oriented investments can become. Charts below show that equities have outperformed bonds with few exceptions when compared over 20-year periods. Comparison of 1-Year Equity & B
Slide 15: Risk of Investing Only in Bonds
How to Invest It Risk of Investing Only in Bonds Bonds may be regarded as less-risky assets, but it is difficult to build up retirement assets with a bond-only portfolio, which can result in dramatically less wealth accumulation. Monthly Cumulative Total Return of $1 Over 60 Years of Investment Cumu
Slide 16: Timing the Market Can Damage Performance
How to Invest It Timing the Market Can Damage Performance Annualized Total Returns of S&P 500 (1990-2022) As of January 9, 2023 12% 9.8% 9% 6.5% 6% Total Return % 4.2% 3% 2.3% 0.6% 0% -1.0% -3% -2.4% No Missed Days Less 15 Less 30 Less 45 Less 60 Less 75 Less 90 Best Days Best Days Best Days Best Da
Slide 17: Mind Your Time Horizon: Risk Is More Risky Near Retirement
How to Invest It Mind Your Time Horizon: Risk Is More Risky Near Retirement John and Eric begin at age 25 with $0 in savings and an annual income of $45K a year, growing at 1% per annum. They are assumed to save 8% of pretax income per annum. Portfolio returns are compounded annually throughout reti
Slide 18: Impact of Sequence of Return on Two Different Retirement Strategies
How to Invest It Impact of Sequence of Return on Two Different Retirement Strategies John and Eric could have benefitted from reducing risk as they approach retirement, as is typical in a target date strategy (here modeled on the Balanced Morgan Stanley Wealth Management Target Date Strategy). Retur
Slide 19: Years of Retirement Is No Longer Uncommon
How to Plan It 30 Years of Retirement Is No Longer Uncommon People are living longer now, which underscores how essential it is to have an effective retirement strategy. Probability of Living to a Specific Age if You’re 65 Today 99% Male Female Either 100% 97% 94% 90% 90% 86% 91% Plan for the Long T
Slide 20: Higher Withdrawal Rates Magnify Market Risk
How to Plan It Higher Withdrawal Rates Magnify Market Risk The hypothetical chart below illustrates how a $1 million retirement portfolio invested in a 50/50 blend of stocks and bonds would hold up if retirement happened at a market peak, in this example the end of December 1972. The three lines ref
Slide 21: Optimal Social Security Claiming Strategy by Health Status
How to Plan It Optimal Social Security Claiming Strategy by Health Status There is not a single “best age” to start receiving social security benefits for everyone. Our analysis suggests that well- funded retirees tend to get better risk mitigation/benefit maximization by claiming around 68, regardl
Slide 22: Optimal Social Security Claiming Strategy by Funding Status
How to Plan It Optimal Social Security Claiming Strategy by Funding Status Under- and over-funding has a more pronounced effect on when you should claim versus health status. Benefit and Risk by Social Security Initial Claiming Age and Funding Status $395,000 Under Funded $395,000 Well Funded $395,0
Slide 23: Retirement Planning Should Account for Typical Spending Patterns
How to Plan It Retirement Planning Should Account for Typical Spending Patterns Observed retirement spending is typically “front-loaded,” i.e., concentrated in the young and more active retirement years. This conflicts with typical default spending assumptions, which revolve around “income replaceme
Slide 24: Different Priorities Often Mean Different Spending Patterns
How to Plan It Different Priorities Often Mean Different Spending Patterns These retiree profiles correspond to common spending behaviors and the retiree circumstances and priorities they reflect. Description Spending Profile Impact on Plan Success Rate Smilers Higher spending at beginning of retire
Slide 25: Monitor Your Progress: Are You Funded for Retirement?
How to Plan It Monitor Your Progress: Are You Funded for Retirement? The funding ratio, which is based on your personal balance sheet of resources, needs and liabilities, can be used as a measure of progress toward your retirement goals. Higher funding ratios mean you are on track, while lower fundi
Slide 26: Flexible Spending as a Strategy
How to Withdraw It Flexible Spending as a Strategy Reducing spending in poor market environments, or “belt-tightening,” can significantly reduce risk for a retiree. Most retirees report the ability to cut back when returns are poor, but not everyone has that flexibility. Cutting Back When the Portfo
Slide 27: Home Equity Can Substitute for Portfolio Withdrawals in Times of Market Stress
How to Withdraw It Home Equity Can Substitute for Portfolio Withdrawals in Times of Market Stress Relative advantage of two main ways of tapping home equity Home Equity Loan and HELOC Reverse Mortgage Allow cash-poor, equity-rich retirees to Main Usage Provide liquidity as needed maintain comfortabl
Slide 28: Withdrawal Sequencing
How to Manage Taxes Withdrawal Sequencing Sourcing funds from accounts in a tax-optimized way can significantly increase return on retirement assets and support retirement spending needs. This includes the use of Roth conversions, which can boost tax liabilities early in retirement. Strategies Beyon
Slide 29: Income Smoothing Can Reduce Variability and Lower Taxes
How to Manage Taxes Income Smoothing Can Reduce Variability and Lower Taxes Reducing tax-deferred retirement assets before Required Minimum Distributions (RMDs) hit can significantly reduce their tax consequences, and is key to reducing tax liabilities and retirement income risk. Tax-exempt income s
Slide 30: Sequential Risk Is Biggest in Early Retirement
How to Invest It Sequential Risk Is Biggest in Early Retirement Bear markets early in retirement are an acute risk for traditional withdrawal strategies. Strategies that seek to reduce market exposure early in retirement, like time-segmented bucketing, can substantially mitigate retirement income ri
Slide 31: Key Features of Annuities and Potential Benefits
How to Invest It Key Features of Annuities and Potential Benefits Lower market and longevity risk means more Income Stability. Annuity income can add downside support to the potential income shortfall an investor may experience, which can be used to safeguard essential spending. Annuity Income offer
Slide 32: Fixed Index Annuity and Variable Annuity
How to Invest It Fixed Index Annuity and Variable Annuity Fixed index annuities and variable annuities offer the potential of upside participation in the equity market and guaranteed lifetime benefits. Fixed index annuities are superior as a fixed income substitute, while variable annuities are supe
Slide 33: Long-Term Care Insurance
How to Invest It Long-Term Care Insurance Our analysis shows that, for those who qualify, Long Term Care Insurance (LTCI) is significantly effective at reducing retirement income risk. LTCI Reduces Risk Associated with Uncertainty around the LTCI Works Best with Clients in Higher Tax Brackets, with
Slide 34: Structured Products
How to Invest It Structured Products Watching the value of their nest egg drop has often led retirees to make unfortunate decisions, such as liquidating in a market drawdown and locking in losses. Growth strategies like variable annuities and structured products can reduce upside, but also provide s
Slide 35: Insurance, Annuities and Structured Products Mapped to Different Life Situations
How to Invest It Insurance, Annuities and Structured Products Mapped to Different Life Situations Where Does The Client Fit? Building Securing Living (Early- Mid Career) (Late Career) (Retired) I. Building, On Track: II. Securing, On Track: III. Living, On Track: • Variable Annuity • Variable Annuit
Slide 36: Why Work With a Financial Advisor?
Why Work With a Financial Advisor? Managing your wealth can be challenging. An experienced Financial Advisor can reduce the stress around financial decisions by offering knowledge and thoughtful guidance. How will I achieve my How should I be Am I on track to reach Who can I trust to help financial
Slide 37: Morgan Stanley Wealth Management is the trade name of Morgan Stanley Smith Barney LLC
Morgan Stanley Wealth Management is the trade name of Morgan Stanley Smith Barney LLC, a registered broker-dealer in the United States. The sole purpose of this material is to inform, and it in no way is intended to be an ofer or solicitation to purchase or sell any security, other investment or ser
Slide 38: Manager due diligence process disclosures
manager due diligence process are equally important factors for investors when considering managers for use through an investment advisory program. Factors including, but not limited to, manager turnover and changes to investment process can partially or fully negate a positive Adverse Active Alpha
Slide 39: Compensation and conflicts of interest disclosures
Management or its afliates receive compensation from, or otherwise related to, those investment managers or mutual funds. For example, a Financial Advisor may suggest that GIMA evaluates an investment manager or fund in which a portion of his or her clients’ assets are already invested. While such a
Slide 40: Nontraditional investment options and strategies
Nontraditional investment options and strategies are often employed by a portfolio manager to further a fund’s investment objective and to help ofset market risks . However, these features may be complex, making it more difcult to understand the fund’s essential characteristics and risks, and how it
Slide 41: Structured Investments risk disclosures
Structured Investments are complex and not appropriate for all investors. An investment in Structures Investments involve risks. These risks can include but are not limited to: (1) Fluctuations in the price, level or yield of underlying instruments, interest rates, currency values and credit quality
Slide 42: Hedge fund index disclosures
It should be noted that the majority of hedge fund indexes are comprised of hedge fund manager returns. This is in contrast to traditional indexes, which are comprised of individual securities in the various market segments they represent and ofer complete transparency as to membership and construct
Slide 43: Virtual Currency Products (Cryptocurrencies)
Virtual Currency Products (Cryptocurrencies) Buying, selling, and transacting in Bitcoin, Ethereum or other digital assets (“Digital Assets”), and related funds and products, is highly speculative and may result in a loss of the entire investment. Risks and considerations include but are not limited
Slide 44: Digital Assets risk disclosures
like other investors have, you can lose some or all of your holdings of Digital Assets. - Unlike US banks and credit unions that provide certain guarantees of safety to depositors, there are no such safeguards provided to Digital Assets held in digital wallets by their providers or by regulators. -
Slide 45: Not a financial plan; ERISA disclosures
independent decision. This material is not a fnancial plan and does not create an investment advisory relationship between you and your Morgan Stanley Financial Advisor. We are not your fduciary either under the Employee Retirement Income Security Act of 1974 (ERISA) or the Internal Revenue Code of
Slide 46: Hypothetical performance disclosures
with the beneft of hindsight. Actual performance results of accounts vary due to, for example, market factors (such as liquidity) and client-specifc factors (such as investment vehicle selection, timing of contributions and withdrawals, restrictions and rebalancing schedules). Clients would not nece
Slide 47: Precious metals and ESG disclosures
depending on market conditions. Unlike bonds and stocks, precious metals do not make interest or dividend payments. Therefore, precious metals may not be appropriate for investors who require current income. Precious metals are commodities that should be safely stored, which may impose additional co
Slide 48: Sector investing risk disclosures
Because of their narrow focus, sector investments tend to be more volatile than investments that diversify across many sectors and companies. Technology stocks may be especially volatile. Risks applicable to companies in the energy and natural resources sectors include commodity pricing risk, supply
Slide 49: ESG investing disclosures
portfolios where ESG criteria is not applied. There is no assurance that an ESG investing strategy or techniques employed will be successful. Past performance is not a guarantee or a dependable measure of future results. For risks related to a specifc fund, please refer to the fund's prospectus or s
Slide 50: 529 plan disclosures
consequences before purchasing a 529 plan. You can obtain a copy of the Program Disclosure Statement from the 529 plan sponsor or your Financial Advisor. Assets can accumulate and be withdrawn federally tax-free only if they are used to pay for qualifed expenses. Earnings on nonqualifed distribution
Slide 51: BlackRock Solutions risk analytics disclosures
and scenario analysis employed by BlackRock Solutions (“BRS”), a fnancial technology and risk analytics provider that is independent of Morgan Stanley. BRS’ role is limited to providing risk analytics to Morgan Stanley, and BRS is not acting as a broker-dealer or investment adviser nor does it provi
Slide 52: Securities based loan disclosures
and for any reason. With the exception of a margin loan, the proceeds from securities based loan products may not be used to purchase, trade, or carry margin stock (or securities, with respect to Express CreditLine); repay margin debt that was used to purchase, trade or carry margin stock (or securi
Slide 53: Pledged-asset and mortgage loan disclosures
collateral (such as cash) to stay in compliance with the terms of the mortgage loan. If a Client does not deposit additional securities or other collateral, the Client’s pledged securities may be sold to satisfy the Client’s obligation, and the Client will not be entitled to choose which assets will
Slide 54: Tax advice and credit card disclosures
Morgan Stanley, its afliates, 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 specifc circumstances. The Platinum Card®
Slide 55: CashPlus account and Greenlight disclosures
withdrawal. Funds deposited by check or funds transfer may be delayed depending on certain circumstances, such as dollar value, account status, etc., and could be held for up to six business days. Please contact your Financial Advisor or Private Wealth Advisor for additional information and/or revie
Slide 56: Offer terms and SIPC disclosures
defned as Infows less outfows, not impacted by market fuctuations. Retirement assets deposited after the Application Date are not eligible to be used to qualify for this ofer . Assets transferred from E*TRADE from Morgan Stanley to Morgan Stanley Smith Barney, LLC are not eligible as net new assets.
Slide 57: Liquidity and average daily volume definitions
- Potentially High Liquidity – Less than or equal to 2 days to unwind - Potentially Moderate Liquidity – Greater than 2 days and less than or equal to 10 days to unwind - Potentially Less Liquidity – Greater than 10 days and less than or equal to 15 days to unwind - Potentially Low Liquidity – Great
Slide 58: Award disclosures
Group does not receive compensation from the participating frms in exchange for the award and Morgan Stanley did not pay a fee to Aite Group in exchange for the award. Morgan Stanley is not afliated with Aite Group. This award was granted to Morgan Stanley based on the time period from March 2021 to