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Comerica Wealth Management Review

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Comerica Wealth Management

Comerica Wealth Management is a financial services firm with several affiliates and divisions. One of them is Comerica Securities, an SEC-registered financial advisor headquartered in Detroit, Michigan that has more than 100 registered investment advisors (RIAs). The firm is a member of the Financial Industry Regulatory Authority, Inc. (FINRA) and the Securities Investor Protection Corporation (SIPC). Comerica provides various services, including portfolio management, selection of other advisors and holistic financial planning on behalf of its clients.  

Comerica Wealth Management Background 

Comerica Securities was founded in 1985. It became an SEC-registered investment advisor in 2005. It is based in Detroit, Michigan, but its parent entity, Comerica Incorporated, has been based in Dallas, Texas for more than 100 years and runs affiliates that focus on several facets of the financial services space. These include banking, investment management and financial planning.  

What Types of Clients Does Comerica Wealth Management Accept?

Comerica generally works mostly with individuals, including high-net-worth ones. The firm also provides its services to businesses, profit-sharing plans, trusts and estates. 

Comerica Wealth Management Minimum Account Size

The minimum initial investment required to open an account with Comerica depends on which type of investment option you choose. This minimum currently stretches from $25,000 to $2 million. 

Services Offered by Comerica Wealth Management

Comerica’s advisory services primarily focus on investment management. It offers various investment choices through its Managed Portfolio Solutions program. These are offered on a wrap-fee basis. Through this program, Comerica offers discretionary and non-discretionary investment advisory services. You can choose from the following options:

  • Personal Portfolio Advisory
  • Fund Strategist Portfolios
  • Guided Portfolios Program
  • Separately Managed Account
  • Unified Managed Account
  • Envestnet Advice Logix
  • Envestnet Tax Overlay Services
  • Envestnet Impact Services

When you choose one of these options, an advisor can guide you through portfolio-construction and asset-allocation strategies based on your individual investment objectives and financial goals. The advisor would also engage in ongoing portfolio monitoring. 

Based on your determined risk tolerance and financial objectives, your portfolio may invest in the following securities: 

  • Mutual funds
  • Exchange-traded funds (ETFs)
  • Preferred equities
  • Fixed-income securities

An advisor would periodically evaluate your portfolio and may recommend rebalancing strategies based on factors like changing market and economic conditions, as well as your financial situation. 

When managing certain options within this program, Comerica utilizes proprietary models by Comerica Asset Management as well as those by third-party model providers. In addition, Comerica may recommend that you invest in one or more funds from a pre-approved list. The firm says these funds have gone through its due-diligence process. A financial consultant may also recommend investing in a Comerica Managed Portfolio run by Comerica Asset Management. 

Before enrolling in any of the available investment programs, Comerica will gather information about your current financial situation and goals to determine which could be most appropriate. 

For the Managed Portfolio Solutions program, Comerica utilizes the services of Envestnet Asset Management. This SEC-registered investment advisor provides a technology platform and investment consultant services to the program. In addition, Envestnet Impact Overlay Services allows clients to place socially responsible investment restrictions on their portfolios in case they would like to limit their exposure to companies that engage in providing products or services against their social values. 

But beyond the services it provides to the program, Envestnet is not directly affiliated with Comerica, according to recent SEC filings. 

Comerica Wealth Management Investment Philosophy

Comerica Securities, as well as its financial consultants, sub advisors and separate asset-managers, may use one or more of the following strategies when driving overall investment decisions: 

Fundamental Analysis: Evaluating securities based on a variety of quantitative factors, including economic conditions, industry outlooks and performance history.

Technical Analysis: Using charts and other tools that detail market data as well as price and volume movements to project future performance. 

Qualitative Analysis: Examines non-quantifiable information like industry cycles, management expertise and more to evaluate “quality” of the security. 

Fees Under Comerica Wealth Management

If you’re receiving investment advisory services, a client fee would be deducted from your program account. This fee consists of an advisory fee paid to Comerica and an overlay fee paid to your financial consultant.

Depending on the type of investment option you choose, you may also be charged a manager fee. In addition, you may also be charged fees paid to third-parties such as Envestnet and Pershing. 

Advisor Fees are charged as a percentage of AUM. The tables below reflect the advisor fees for the different types of portfolio options offered by Comerica. 

Personal Portfolio Advisory (PPA) accounts

Assets Managed Advisor Fee
On first $2 million 1.35%
On next $3 million 0.90%
On next $5 million 0.60%
On balances greater than $10 million 0.40%

 

Strategist Portfolios (FSP), Guided Portfolios Program (GPP), Separately Managed Account (SMA), and Unified Managed Account (UMA)

Assets Managed Advisor Fee
On first $2 million 1.35%
On next $3 million 0.90%
On next $5 million 0.60%
On balances greater than $10 million 0.40%

 

Envestnet Impact and Tax Overlay Services 

Assets Managed Overlay Fee
On first $10 million 0.16%
On next $15 million 0.13%
On balances greater than $25 million 0.09%

What to Watch Out For

Comerica Securities has been fined and penalized by financial regulatory authorities a few times. 

Moreover, Comerica Securities is affiliated with several entities that comprise the greater Comerica Incorporated. Comerica Securities is a subsidiary of Comerica Bank. Employees of both entities provide investment strategies and model services. However, they don’t undergo the same review process other third-party managers would experience under evaluation. This arrangement may create a conflict of interest. 

Comerica Securities states in a brochure it filed with the SEC that it does not endorse one advisory program over another with its financial consultants. In addition, its financial consultants do not get any additional compensation for recommending a model or investment strategy from Comerica Bank. Comerica Securities says it will only recommend a service after determining it is right for the client based on extensive research.

Disclosures

Under the Disclosures section of its Form ADV, Comerica Securities listed some instances of undergoing disciplinary action. The latest case took place in 2017. That June, the firm paid a fine of $32,500 after it consented to sanctions that it “affected 15 customer transactions in municipal securities below the minimum denomination of the issue,” according to its Form ADV. The earliest reported instance took place in 2007. According to SEC filings, the “respondent member failed to report to the trade reporting and compliance engine (TRACE) transactions in trace-eligible securities executed on a business day during trace system hours within 30 minutes of the time of execution.” 

Opening an Account with Comerica Wealth Management

You can open an account with Comerica by visiting its Investment Advisory Services based in Detroit, Michigan. You can also reach this office by dialing (800) 232-6983. 

Where Is Comerica Wealth Management Located?

Comerica’s Investment Advisory Services office is headquartered at 411 W. Lafayette Blvd., Detroit, Michigan, 48226. 

Tips for Finding a Financial Advisor

  • You can compare the services of Comerica Securities with those of the top 10 financial advisor firms in Michigan
  • If you’re exploring financial advisors, we can help narrow your search. Use our SmartAsset financial advisor matching tool. After you answer a few simple questions, the tool will recommend up to three advisors in your area. It will also provide you with an in-depth look at the work history of each, so you can compare each advisor's qualifications before deciding to work with one.

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 cost of living in retirement there.

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

Methodology SmartAsset calculated the average cost of living for retirees in the largest U.S. cities. Using that calculation, we determined how many years $1 million would last in retirement in each major city.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors throughout the country. 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.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%, reflecting the typical return on a conservative investment portfolio. Finally, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would last in each of the cities in our study.

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