Ameriprise Financial Services review: what do you need to know?
Learn all about Ameriprise Financial Services as we highlight its history, investment philosophy, fees, and pros and cons.
Summary
Ameriprise Financial Services was founded in 1894 as Investors Syndicate but rebranded in 2005 to its current name.
Ameriprise offers various financial products and services, including insurance and annuities, investment management, and wealth management solutions.
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Introduction to Ameriprise Financial Services
Ameriprise Financial, Inc., is a 130-year-old financial planning and services company headquartered in Minneapolis, Minnesota. John Tappan founded the business in 1894, then called Investors Syndicate, by getting 1,000 investors to invest $5 each. Since then, the company has evolved through mergers and acquisitions to become Ameriprise Financial in 2005.
Ameriprise offers various financial products and services, including retirement planning, investment management, insurance, and wealth management solutions. If you are wondering if Ameriprise Financial Services is a fiduciary, the answer is yes, as the firm employs fiduciary financial advisors.
What services do Ameriprise Financial Services offer?
What is Ameriprise financial services offering, and what does it encompass? In short, Ameriprise offers a comprehensive suite of financial products and services tailored to its clients' needs. They aim to empower clients to navigate their financial journeys and achieve long-term objectives. Their offerings include:
Retirement planning solutions
Investment management services
Insurance products
Wealth management solutions
Charitable giving strategies
What is Ameriprise Financial Services’ investment philosophy?
Ameriprise believes in helping clients navigate the present while preparing for their financial future. Every one of their financial and investment advisors follows their personalized investment philosophy that is grounded in a four-step approach that aims to optimize long-term returns while managing risks effectively:
Understanding the client's goals and risk tolerances.
Designing a diversified portfolio aligned with client objectives.
Implementing the plan with a focus on tax efficiency and cost management.
Regularly adjusting and monitoring the portfolio as needed.
What is Ameriprise Financial Services' pricing and fee structure?
Ameriprise financial services reviews show that the pricing and fee structures differ for the firm’s products and services, so clients must clarify these costs during the first consultation. Here's an outline of their pricing and fee structures:
Initial consultation: Complimentary
Financial planning services: Either a fixed-dollar amount or an asset-based fee, paid monthly, quarterly, or annually.
Managed account: An asset-based fee (a percentage of your account value) is charged in advance and assessed monthly.
Brokerage services: A quarterly maintenance or custodial fee, transaction-based fees.
Is Ameriprise Financial Services trustworthy?
Ameriprise Financial Services has been in business for 130 years and holds an A+ rating with the Better Business Bureau (BBB). Such a rating indicates high customer satisfaction and a favorable track record of resolving customer complaints.
While a good BBB rating can be a positive sign, it's essential to conduct due diligence when evaluating a financial service provider's trustworthiness. This involves researching their reputation, reading customer reviews of Ameriprise financial services, understanding their investment philosophy and fee structure, and comparing their offerings to those of other financial service providers. It’s also a good idea to look for any Ameriprise financial services complaints and what the resolutions were.
What are the pros and cons of Ameriprise Financial Services?
As with any firm, doing business with Ameriprise has potential advantages and disadvantages. Some are outlined below:
Pros
Comprehensive financial planning: Ameriprise offers a wide range of financial services and products, providing clients with holistic financial planning solutions.
Personalized approach: The company follows a client-centric approach, meaning it offers tailored advice and fosters long-term relationships with its clients.
Established reputation: With 130 years of experience in the financial industry and a strong brand presence, Ameriprise is known for reliability and expertise.
Accessibility: Ameriprise has an extensive network of financial advisors and offices across the US.
Cons
Higher fees: Ameriprise's fee structure for managed accounts may be higher than competitor offerings, drastically impacting overall investment returns.
Proprietary products: The company may promote its proprietary investment products, potentially leading to conflicts of interest or limited investment choices.
Sales culture: Some clients have reported feeling bullied, shunned, or belittled by Ameriprise advisors to purchase additional products they did not want or need.
Complex fee structure: Ameriprise's fee structure is complex and sometimes clandestine, and some clients report receiving no feedback on direct inquiries.
How to open an account with Ameriprise Financial Services?
While you will find Ameriprise financial services locations across the US, you can open an account by contacting an advisor through email, telephone, or in person. You'll discuss your financial goals, risk tolerance, and investment preferences during the initial consultation.
Your advisor will explain the account opening process, which may involve completing paperwork, providing supporting documents, and agreeing to terms and conditions. Before finalizing your decision, remember to ask about fees, investment options, and the advisor-client relationship.
Get expert financial advice
Ameriprise is a well-established company offering comprehensive financial options. While the firm enjoys a positive BBB rating, potential drawbacks include higher costs and a sales-oriented culture.
Conducting thorough research and evaluating individual needs is crucial when looking for a financial advisor. Let Unbiased match you with an expert financial advisor so that you can get expert financial advice tailored to your situation.
Writers
Our team of writers, who have decades of experience writing about personal finance, including investing and retirement, are here to help you find out what you must know about life’s biggest financial decisions.