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Ameritas Investment Corp

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Ameritas Investment Corp

Ameritas Investment Corp is a financial advisor firm with roughly $5 billion in assets under management (AUM) and more than 500 advisors. The firm serves more than 22,000 clients, including individuals, businesses, charities and retirement plans. Ameritas’ principal office is in Lincoln, Nebraska.

Ameritas is a fee-based firm, which means some of its advisors can earn commissions or other compensation from the sale of certain securities or insurance products. This differs from a fee-only firm, which would receive compensation solely from the fees that clients pay.

Ameritas Investment Corp Background

Ameritas Investment Corp was founded in 1984. However, it did not register with the U.S. Securities and Exchange Commission (SEC) until 1998. The firm’s parent company is Ameritas Mutual Holding Company, which also owns other insurance and investment companies.

More than 500 advisors provide financial services at Ameritas.

What Types of Clients Does Ameritas Investment Corp Accept?

Ameritas Investment Corp has a large client base that consists of nearly 12,500 individuals below the high-net-worth threshold. The firm also manages assets for high-net-worth individuals, pensions and other retirement plans, charitable organizations and corporations.

Ameritas Investment Corp Minimum Account Sizes

Ameritas Investment Corp offers a number of different investment strategies, and these strategies have varying minimum account sizes associated with them. These go as follows:

  • Galaxy: $50,000
  • Galaxy Wrap: $250,000
  • Galaxy II: $25,000
  • Galaxy II Wrap: $25,000
  • Constellation: $25,000
  • Managed Account Solutions: Varies by strategy
  • Retirement Plan Advisory Services: No minimum
  • Advantage Advisory Program: No minimum

Services Offered by Ameritas Investment Corp

Ameritas Investment Corp provides investment management to a wide range of clients. These services can come in the form of several different programs, including:

  • Investment management
    • Galaxy Program
    • Galaxy Wrap Program
    • Galaxy II Program
    • Galaxy II Wrap Program
    • Constellation Wrap Program
    • Managed Account Solutions Wrap Program
    • Direct Advisory Third-Party Programs
    • Solicitor Programs
  • Financial Planning
    • Estate planning
    • Investment planning
    • Tax planning
    • Insurance planning
    • Retirement planning
    • Cash flow and net worth analysis
    • Education fund planning
  • Consulting
  • Retirement Plan Advisory Services

Ameritas Investment Corp Investment Philosophy

Ameritas Investment Corp allows its advisor representatives plenty of independence to act upon their own investment philosophies and preferred methods of analysis. As such, the firm doesn’t have a strict investing philosophy that guides its decisions.

Most advisors tend to follow a general investment process, though. These processes rely on investment strategies like asset allocation, fundamental analysis, technical analysis and cyclical analysis. Asset allocation involves determining a combination of asset classes (equities, fixed-income, real estate, etc.) that will comprise a diversified portfolio capable of achieving a client’s goals, while also minimizing risk and volatility. The investment analyses above each work differently, but they all intend to ascertain a security’s intrinsic value in the end.

Fees Under Ameritas Investment Corp

For its investment advisory services, Ameritas charges fees as a percentage of each client’s AUM. If you take part in the Galaxy Program, the Galaxy II Program, the Galaxy Wrap Program, the Galaxy II Wrap Program, the Constellation Wrap Program or a third-party advisory program, your fees will generally adhere to these rates:

Investment Management Fees
Assets Under Management Fee Percentage
Up to $250,000 2.00%
$250,000 - $500,000 1.75%
$500,000 - $1,000,000 1.50%
$1,000,000 - $3,000,000 1.25%
$3,000,000 and above 1.00%

If you take part in the Managed Account Solutions Program, you’ll likely pay a fee of between 0% and 1.70%, depending upon the specifics of your account. A portion of these fees will go to Ameritas and a portion will go to the advisor representative.

Financial planning and consulting fees come in the form of either a flat fee or an hourly fee, depending on your needs and preferences. There is no standard fee arrangement, as it can vary by client.

What to Watch Out For

Ameritas Investment Corp may receive performance-based fees on a limited basis. The firm’s Form ADV explains the pitfalls of this compensation structure: “Performance-based fees create certain inherent conflicts of interest. Specifically, performance-based fees create an incentive for the IAR to take risks in managing assets that they may not otherwise take in the absence of such arrangements.”

This firm is also a fee-based operation. As a result, some of its advisory representatives can receive commissions from the sale of specific insurance products or securities. This, too, represents a conflict of interest, as representatives are incentivized to sell you such products.

Despite each of the potential conflicts of interest listed above, Ameritas abides by fiduciary duty. Therefore it is legally bound to act in your best interest at all times.

Disclosures

Ameritas Investment Corp has 21 disclosures listed on its Form ADV. Six of these are in the name of one of Ameritas’ advisory affiliates, and the other 15 are in direct relation to the firm.

These violations include failing to adequately disclose the receipt of 12b-1 fees from mutual funds held in advisory accounts and the initiation of an address change and fund disbursement without the authorization of the client. These and the rest of the disclosures resulted in various fines and censures from authorities.

Opening an Account With Ameritas Investment Corp

To get in touch with Ameritas Investment Corp, you can call the firm toll-free at (800) 335-9858. You can also reach out to the firm online by filling out the contact form on its website. For the latter, you must provide your name, contact information and a message.

Where Is Ameritas Investment Corp Located?

Ameritas Investment Corp has its headquarters in Lincoln, Nebraska on O Street next to the Gateway Mall. The firm has a secondary office in Cincinnati, Ohio.

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How Many Years $1 Million Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Least
Most
Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology To determine how long a $1 million nest egg would cover retirement costs in cities across America, we analyzed data on average expenditures for seniors, cost of living and investment returns.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. This reflects the typical return on a conservative investment portfolio. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research