Is Ameriprise a Fiduciary or Just a Financial Service Provider

Ameriprise has been accused of prioritizing its own interests over those of its clients, but is this a fair assessment? The truth is, Ameriprise has a complex relationship with its clients, and its fiduciary status is a topic of debate.

Ameriprise is a financial services provider that offers a range of products and services, including investment advice, insurance, and retirement planning.

As a financial services provider, Ameriprise is not necessarily a fiduciary by law, but it does offer fiduciary services through its Ameriprise Financial Advisors division.

Some critics argue that Ameriprise's business model is designed to sell products, not provide unbiased advice.

Ameriprise's professionals often carry professional designations, including Certified Financial Planner (CFP), Chartered Financial Analyst (CFA), and Chartered Financial Consultant (ChFC).

These designations come with a commitment to uphold a fiduciary duty to clients, as they sign an agreement with their respective organizations to do so.

Anyone employed at Ameriprise who is registered as an investment advisor representative (IAR) must act as a fiduciary due to the company's registration with the SEC as an investment advisor.

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Ameriprise is a well-established financial services company that has ranked as a top financial services company, placing seventh in a recent study by J.D. Power.

Their services and investment products are designed to work for some investors, but not for others, as they often require granting a professional discretionary authority over your portfolio.

In Ameriprise's case, this means giving a manager or advisor control over your investment selections, which may not be suitable for everyone.

Ameriprise's products are tailored for those who want a hands-off approach, but it's essential to consider whether this level of control is right for you.

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Ameriprise is registered with the SEC as an investment advisor, which means its employees who are registered as investment advisor representatives (IAR) must act as fiduciaries.

Ameriprise professionals often carry professional designations like Certified Financial Planner (CFP), Chartered Financial Analyst (CFA), and Chartered Financial Consultant (ChFC), which require them to sign an agreement to uphold a fiduciary duty to clients.

People who work at Ameriprise and hold these designations are committed to putting their clients' interests first.

For financial services, Ameriprise charges a minimum annual fee of $500, which can be negotiable, and a minimum monthly fee of $50, although this may be higher.

The fees for managed account programs are generally 2% of managed assets per year.

Your advisor's fees for financial planning services can be higher, depending on their experience, credentials, and the complexity of your needs, and you may be charged more than the minimum annual fee.

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Ameriprise offers three main categories of managed advisory services: client-directed, manager-directed, and advisor-directed. These services provide all-in-one access to both a financial advisor and investment products.

Each category has one or more investment programs, which allow a financial advisor or portfolio manager to take care of trades, select investments, and perform rebalancing measures over time to manage risk.

Client-directed services involve giving a financial advisor discretionary power over your investments. This allows them to make decisions on your behalf.

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Manager-directed services also involve giving a portfolio manager discretionary power over your investments. They will handle trades, select investments, and perform rebalancing measures to manage risk.

Advisor-directed services allow you to work closely with a financial advisor, but they do not have discretionary power over your investments. You will still have control over your investments, but the advisor can provide guidance and support.

These services are designed to provide you with a range of options for managing your investments, whether you want to take a hands-on approach or have a professional handle the details.

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Financial services fees can be a significant part of your overall expenses.

The annual wrap fee for managed account programs is generally 2% of managed assets.

This fee can add up quickly, especially if you have a large amount of money invested.

For certain programs like Select Separate Account, Vista Separate Account, Investor Unified Account, and Access Account, there's an additional manager fee ranging from 0.1% to 0.8% and a platform fee of 0.17%.

Some programs, like the SPS Advisor Program, also have an investment and infrastructure support fee of 0.03%.

Financial planning services can also come with fees, which depend on factors like your advisor's experience and credentials.

The minimum annual fee for financial planning services is $500, although your advisor may charge more.

You may be able to negotiate this fee, and there's also a minimum $50/month fee, which could be higher.

Ameriprise has over 100 disclosures in its SEC filings dating back to at least 2012, so it's a good idea to study those for yourself.

The firm is fee-based, which means most advisors receive commissions or transaction-based fees, presenting potential conflicts of interest.

Ameriprise advisors are also often insurance agents and brokers, which can further blur the lines of their loyalty.

The firm is legally bound to work in clients' best interests, but it's essential to stay vigilant and ask questions directly.

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