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Citi Personal Wealth Management Review

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Citi Personal Wealth Management

Citi Personal Wealth Management is the financial advisory arm of Citi, a global financial services company. It is a subsidiary of Citigroup Global Markets Inc., which is itself a subsidiary of Citigroup Inc., a publicly held company. The firm is based in New York and has an extensive network of financial planning professionals, including more than 3,400 financial advisors.

Clients of Citi Personal Wealth Management are often clients of Citigroup Global Markets Inc., a broker-dealer. Most of the firm’s clients are individuals, but it also works extensively with high-net-worth individuals. It also serves institutional investors, including pension and profit-sharing plans, charitable organizations, state or municipal government entities, settlement trust accounts and other corporations.

Citi Personal Wealth Management Background

Citi Personal Wealth Management is a subsidiary of Citi. Citi was founded in 1998 as the result of a merger of CitiCorp and Travelers Group. It is publicly traded on the New York Stock Exchange.

The firm is ranked 32nd on the Fortune 500, and it has more than 200,000 employees worldwide. Citi works in many areas of financial services, including investment banking.

What Types of Clients Does Citi Personal Wealth Management Accept?

Citi Personal Wealth Management offers financial advisory services to a wide variety of clients, including individuals and multi-family offices. Financial planning services are exclusively offered to clients who already are clients of Citigroup Global Markets Inc. Since the firm is part of a large international financial service company, it will suit clients who want the resources that type of company provides.

Additionally, Citi works with a wide range of institutional clients. It offers its investment programs to corporations, foundations, charitable organizations, other business and governmental entities.

Citi Personal Wealth Management Minimum Account Sizes

Citi’s account minimums vary by service type. It doesn’t necessarily require a set minimum for its financial planning services, though it does note that most of its financial planning clients have at least $250,000 in net worth.

For investment advisory services, the firm’s account minimums vary by individual investment program:

  • Citi Private Bank clients: $500,000 ($2 million for Citi Markets Strategies product utilizing the VIBE Index)
  • Citi Wealth clients: $50,000 ($100,000 for multi-style accounts)
  • Manager Selection Program: $500,000
  • Citi Advisor Program: $100,000
  • Consulting and Evaluation Services Program: 
  • $1 million for Citi Private Bank clients
  • $200,000 for Citi Markets Strategies product utilizing the VIBE Index
  • $100,000 for Citi Wealth clients
  • Multi-Asset Class Solutions Program: $100,000 to $25 million
  • Advisory Portfolios Program: $1 million ($250,000 for retirement accounts)
  • Citi Portfolio Manager Program: $25,000
  • Model Allocations Portfolios Program: $25,000
  • Dynamic Allocation Portfolios - UMA Program: $25,000

Services Offered by Citi Personal Wealth Management 

A variety of services are offered by Citi Personal Wealth Management. They include:

  • Retirement planning
  • College planning
  • Wealth protection
  • Estate planning
  • Financial planning tools
  • Financial education center
  • Investment advisory programs, including multi-asset class programs

Citi Personal Wealth Management Investment Philosophy 

Generally, the financial advisory side of Citi Personal Wealth Management focuses on creating a complete personal financial profile for each of its clients. This profile includes information about a client’s assets, liabilities, income and expenditures, tax status and objectives, as well as other long-term plans like paying for education and getting ready for retirement. It also considers insurance needs and estate planning needs.

Clients who get a financial plan can then use Citigroup Global Markets, Inc. as a broker-dealer to implement the plan drawn up by their Citi Personal Wealth Management advisor. In terms of investing strategies, a number of options are available, including:

  • Fiduciary Services Program  
  • Manager Selection Program  
  • Citi Advisor Program  
  • Consulting and Evaluation Services Program  
  • Multi-Asset Class Solutions Non-Discretionary Bespoke
  • Multi-Asset Class Solutions Discretionary Bespoke
  • Multi-Asset Class Solutions Umbrella Portfolios 
  • Multi-Asset Class Solutions 
  • Citi Active Allocation Portfolios Program  
  • Advisory Portfolios Program  
  • Citi Portfolio Manager Program  
  • Model Allocations Portfolios Program

Fees Under Citi Personal Wealth Management

Citi Personal Wealth Management doesn’t charge any additional fees for its financial planning services, which are only available to clients of Citigroup Global Markets Inc. Citi also does not receive compensation from third parties in connection to preparing financial plans. Financial planners are paid through a combination of salary, incentive compensation and possibly a discretionary bonus. 

Using Citi Personal Wealth Management for investing carries a variety of fees, based on the account option selected. Fee rates for these accounts are below:

Equity, Balanced and Multi-Style Accounts
Assets Under Management Fee Rate
$0-$500,000 3.00%
$500,000-$1 million 2.20%
$1 million-$2 million 1.90%
$2 million and above 1.70%

 

Fixed Income Accounts
Assets Under Management Fee Rate
$0-$500,000 1.25%
$500,000-$1 million 1.00%
$1 million-$2 million 0.85%
$2 million and above 0.75%

Curious about how Citi’s investment management fees stack up? The below table compares Citi Personal Wealth Management’s fees to the national median. Note that these estimates are based on the maximum potential fee rates.

Estimated Fee Comparison*
Your Assets Citi Personal Wealth Management, Equity Account National Median Advisory Fees**
$500K $15,000 $5,000
$1MM $26,000 $8,500 - $10,000
$5MM $96,000 $25,000 - $32,500
$10MM $181,000 $50,000
*Fee estimates only consider the maximum base fees for the services each firm provides. You may also pay manager fees and other fees, which can vary in amount. **All figures are based on median fee levels according to Bob Veres' 2017 Planning Profession Fee Survey. The above estimates solely take into account AUM-only fees. Total costs will likely be higher due to additional expenses.

What to Watch Out For

Potential clients should note that Citi Personal Wealth Management is largely geared towards those who are already clients of Citigroup Global Markets, Inc. The firm’s financial planning services are only available to clients who are already clients of Citigroup Global Markets. Being a client of Citigroup Global Markets comes with its own set of decisions to make, so potential clients should know what exactly they are signing up for if they choose to open an account.

Additionally, Citi does have disclosures -- see more below.

Disclosures

Citigroup Global Markets Inc., the parent company of Citi Personal Wealth Management, has a number of disclosures on its record from over the past 10 years. According to SEC documents, the company has disclosures related to the following:

  • Pleading guilty or no contest to a felony
  • Being charged with a felony
  • Being charged with a misdemeanor
  • Violating SEC or CFTC regulations or statutes
  • Having an order entered by the SEC or CFTC for an investment-related activity
  • Having a civil money penalty or a cease and desist from the SEC or CFTC
  • Being found by a regulatory agency to have made a false statement or omission or to have been dishonest, unfair or unethical
  • Being found in violation of investment-related regulations
  • Having an order entered related to investment activity
  • Having a regulatory agency deny, suspend or revoke a registration or license
  • Having various disclosures related to a self-regulatory organization, including having made a false statement or omission

All in all, the firm has more than 1,300 disclosures on its record, including more than 500 regulatory events and nearly 800 that ended up in arbitration.

Opening an Account With Citi Personal Wealth Management

Citi has branches throughout the country. You can use Citi’s website to find a branch that has financial advisors onsite and then call to set up an appointment with an advisor.

Where Is Citi Personal Wealth Management Located?

The firm’s main office is in New York City. There are additional branches located throughout the country.

Tips for Financial Planning

  • Finding the right financial advisor that fits your needs doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors in your area in 5 minutes. If you’re ready to be matched with local advisors that will help you achieve your financial goals, get started now.  
  • No matter which advisor you work with, coming up with a financial plan is a key part of your strategy. Make sure you know exactly what your goals are so your financial plan can be as detailed as possible. 
  • When thinking about your financial future, it’s important to know how you’ll be supporting yourself after you retire. Part of your retirement income is likely to come from Social Security. You can use SmartAsset’s Social Security calculator to see just how much Social Security income you’ll be getting once you reach your golden years. 

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