Ameriprise and RiverSource Pros and Cons Compared

Ameriprise and RiverSource are two financial services companies that offer a range of investment products and financial planning services. Ameriprise has a long history, dating back to 1894, and is one of the largest financial services companies in the world.

Ameriprise has a strong presence in the US, with over 10,000 financial advisors serving clients across the country. RiverSource, on the other hand, is a subsidiary of Ameriprise and offers a range of investment products, including mutual funds and variable annuities.

RiverSource's investment products are designed to help clients achieve their long-term financial goals, whether that's saving for retirement or funding a child's education. Ameriprise's financial advisors can help clients create a personalized financial plan to meet their unique needs and goals.

Ameriprise has a reputation for providing high-quality financial advice and planning services, with many clients praising the company's knowledgeable and responsive advisors.

Ameriprise and RiverSource have shown impressive financial performance over the years. Their strong track record has helped them become one of the largest financial services companies in the US.

Ameriprise's revenue has consistently grown, reaching $12.3 billion in 2020. This growth can be attributed to their strategic acquisitions and expansion into new markets.

RiverSource's assets under management have also increased significantly, reaching $148 billion in 2020. This growth demonstrates the trust clients have in their investment and insurance products.

Ameriprise's operating income has been steadily increasing, reaching $2.5 billion in 2020. This strong financial performance has enabled them to invest in new technologies and expand their services.

RiverSource's strong financial performance has also led to an increase in their dividend payments. In 2020, they paid a dividend of $1.4 billion to their shareholders.

RiverSource offers a range of benefits that make it a compelling choice for annuity customers. Widely available, RiverSource sells annuities in all 50 states plus the District of Columbia.

RiverSource has strong customer satisfaction and financial strength ratings, holding excellent ratings from industry organizations. This is a significant advantage for customers who value reliability and trustworthiness.

Take a look at this: Ameriprise Financial Ratings

Some of RiverSource's annuity products have lower minimum premiums than most other providers, making it more accessible to a wider range of customers.

Here are some key pros of RiverSource:

RiverSource is a solid choice for those looking to buy an annuity. Here are some pros to consider:

RiverSource is widely available, selling annuities in all 50 states plus the District of Columbia. This makes it a convenient option for many people.

RiverSource holds excellent customer satisfaction and financial strength ratings from industry organizations. This suggests that the company is reliable and has a good track record of meeting its obligations.

Some of RiverSource's annuity products have lower minimum premiums than most other providers. This can be a significant advantage for those who are just starting to save or invest.

RiverSource has a strong track record of financial stability, customer satisfaction, and wide availability. This makes it a great choice for customers looking for a reliable annuity provider.

Here are some key ratings and ratings companies that support RiverSource's financial strength:

RiverSource has some drawbacks to consider. One of the main cons is that they don't offer fixed annuities, which are considered a safe and popular option.

RiverSource Distributors was fined $5M by the SEC for allegedly targeting retail Ameriprise Financial customers with variable annuity sales. This involved switching annuities to boost sales commissions.

RiverSource's sales strategy led to customers switching annuities, which may have resulted in additional fees and no benefits for the customer. This can be a costly mistake.

Here are some potential issues to watch out for:

RiverSource Distributors' actions may have caused harm to Ameriprise Financial customers, and broker-dealers must protect their clients from broker misconduct or negligence.

Ameriprise and RiverSource have a similar business structure, with both being subsidiaries of Ameriprise Financial, Inc. This means they operate under the same parent company.

Ameriprise Financial, Inc. is a publicly traded company listed on the New York Stock Exchange (NYSE). This public listing allows for transparency and accountability in their financial dealings.

Discover more: Ameriprise Trust Company

A RILA, or Registered Index-Linked Annuity, can be a valuable investment tool for those looking to save for retirement. RiverSource's RILA, known as the RiverSource Structured Solutions 2, has a minimum premium of $10,000.

This annuity allows owners to allocate funds across over 100 indexed accounts based on five well-known equity indexes and an ETF. The annuity includes a buffer against losses when the index's returns are negative.

RiverSource's RILA offers two options for locking in the value of the annuity's index segments: automatic lock and elective lock. The automatic lock instantly locks in the segment's value when the rate of return reaches a specific point.

Annuities like RiverSource's RILA can help clients with limited funds and saving difficulties by providing a commitment to contribute on a monthly basis automatically over a period of time. This can help build a fund that can provide income in the future.

It's essential to thoroughly evaluate the rates, fees, and alternatives to safeguard your assets when initiating a RILA.

Ameriprise Financial, Inc. has several key entities and service groups that handle its financial planning, asset accumulation, and protection business. Ameriprise Financial Services, LLC offers financial advisory services, investments, insurance, and annuity products.

Ameriprise Trust Company (ATC) acts as the custodian for retirement accounts, including Individual Retirement Accounts, and maintains collective investment funds and provides other services to retirement plans. ATC also holds retirement accounts.

Columbia mutual funds are distributed by Columbia Management Investment Distributors, Inc., a member of FINRA, and managed by Columbia Management Investment Advisers, LLC. Not all products and share classes are available through all firms.

RiverSource Distributors, Inc., a member of FINRA, distributes insurance and annuity products that are issued by RiverSource Life Insurance Company and in New York, by RiverSource Life Insurance Co. of New York. RiverSource Life Insurance Co. of New York is authorized to sell insurance and annuities in New York.

The Columbia, RiverSource, Seligman, and Threadneedle names are used for the institutional asset management business, including collective investment funds.

Ameriprise Financial offers a range of products and services under various brand names. The Ameriprise name is associated with brokerage and financial advisory services, retirement and financial education services, certificates, and insurance products.

Their annuity and insurance products are provided by Ameriprise Financial, Inc. and its subsidiaries, and are identified by the RiverSource name. RiverSource annuity and insurance products are designed to help individuals plan for their financial future.

The mutual funds and closed-end funds provided by Ameriprise Financial, Inc. and its subsidiaries are identified by the Columbia, Seligman, and Threadneedle brands. These funds are managed by experienced professionals who aim to provide consistent returns.

Columbia is also used for the institutional asset management business, including collective investment funds. This business is designed for institutions and organizations seeking investment solutions.

Related reading: Ameriprise Insurance Company