U.S. Bank Wealth Management, a St. Paul, Minnesota-based firm, provides financial advisory through U.S. Bank, one of the largest financial institutions in America, and U.S. Bancorp Investments combine to run its client accounts. Although they do work together to run its client accounts, U.S. Bank and U.S. Bancorp Investments each has its own specialties. U.S Bancorp Investments focuses on financial planning, investments and insurance, whereas U.S. Bank is more versed in banking, trusts and investment support.
U.S. Bank Wealth Management currently has around $8 billion in assets under management and a team of 809 financial advisors.The services at this fee-based firm are marketed alongside U.S. Bank’s personal and business banking products, although it is distinctly its own entity.
The firm primarily serves individuals, though it also works with institutions. More than three-quarters of this firm’s almost 33,000 client accounts belong to individuals who do not have a high net worth. Aside from this group, U.S. Bank Wealth Management also serves high-net-worth individuals, charitable organizations, corporations and charitable organizations.
U.S. Bank Wealth Management Background
U.S. Bancorp Investments, Inc. and U.S. Bank are owned by U.S. Bancorp, a financial holding company. The firm has been in business since 1974, but it registered with the U.S. Securities and Exchange Commission (SEC) in just 2007.
U.S. Bank Wealth Management’s advisors range from financial industry newcomers to seasoned veterans. The firm has more than 800 financial advisors on staff.
What Types of Clients Does U.S. Bank Wealth Management Accept?
Individuals who don’t have a high net worth make up the majority of the client base at U.S. Bank Wealth Management. In fact, the firm currently has more than 25,000 such clients. The firm’s clientele extends beyond just this demographic though. It also works with high-net-worth individuals, charitable organizations, pension and profit-sharing plans, corporations and other institutional clients.
U.S. Bank Wealth Management Minimum Account Sizes
U.S. Bank Wealth Management offers many different styles of services and portfolios. The firm has varying account minimums for its available programs:
- Automated Investor Program - $10,000
- Personal Portfolios Program
- Fund Managed Portfolio - $25,000
- Unified Managed Portfolio - $250,000
- U.S. Bancorp Investments Managed Portfolios - $25,000
- Managed Account Strategies
- General Securities - $50,000
- Mutual Funds - $25,000
- Advisor Select Account - $25,000
- Advisor Select Separately Managed Accounts - $100,000
Services Offered By U.S. Bank Wealth Management
There’s no shortage of services available through U.S. Bank Wealth Management. The firm offers the following planning, management, analysis and asset allocation services:
- Wealth planning
- Proprietary portfolio design
- Regular financial plan updates
- Investment management
- Asset allocation adjustments based on market shifts
- Investment analysis and rebalancing
- Banking services
- Integration of banking products into financial plans
- Self-directed investing
- Supreme sovereignty over investments
- IRA rollovers
- Automated Investor program
- Tax minimization
- Automatic rebalancing
- Insurance analysis
- Review of current insurance
- Exploration of insurance options
- Legacy planning
- Philanthropic gift planning
- Beneficiary planning
- Business planning
- Cash flow evaluation
- Tax-efficient succession planning
U.S. Bank Wealth Management Investment Philosophy
Likely due to the massive size of U.S. Bank Wealth Management, its investment ideology is extremely fluid. When you first meet with an advisor, you will discuss and determine your risk tolerance, time horizon, liquidity needs and any other variables that you deem to be important. The firm uses proprietary software that aids its advisors in refining your financial goals to develop a clearer picture as to what level of return is needed to reach them.
These facts then determine the investment styles your advisor will utilize. More specifically, the firm may use any combination of asset allocation, long-term purchases, short-term purchases, trading and other strategies.
Fees Under U.S. Bank Wealth Management
All financial planning services offered by U.S. Bank Wealth Management are completely free. However, clients may pay charges related to securities commissions, fees for account maintenance and possible asset-based fees.
The firm’s Personal Portfolio Program has a fairly standard fee structure, with fees based on the size of clients’ portfolio. Note that your fees may end up being higher than these percentages, though, depending on anticipated or past transaction activity, if you’ve used sub-account managers, whether or not you receive other services and other variables.
|Portfolio Size||Fee Rate|
Like many robo-advisors, U.S. Bank Wealth Management’s Automated Investor program charges lower fee rates than the firm’s traditional advisory programs. If you opt to use the firm’s robo-advisory service, you’ll pay a 0.50% annual advisory fee on a quarterly basis. Should you meet certain stipulations, though, the firm may lower your rate.
|Estimated Fee Comparison*|
|Your Assets||US Bank Wealth Management Personal Portfolio Program||National Median Advisory Fees**|
|$1MM||$17,500||$8,500 - $10,000|
|$5MM||$64,000||$25,000 - $32,500|
|*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
U.S. Bancorp is a such a massive organization with so many arms throughout the finance world that you may not get the personalized attention you’d get at more boutique firms. Considering the fact that this firm manages about 33,000 accounts and competitors typically manage just a tenth of that number of accounts, this could become an issue for some prospective clients.
Additionally, U.S. Bank Wealth Management does have disclosures and has faced other legal problems in the past. Read more below for further details on the firm’s disclosures.
Some of the financial advisors at this firm sell insurance policies through U.S. Bank’s affiliated entities.
U.S. Bank Wealth Management unfortunately has a fairly checkered past when it comes to legal issues, faced by both its banking and investment businesses. The firm’s most issue occurred in February 2018, when the company was fined $613 million by the Office of the Comptroller of the Currency. This stemmed from the company's faulty anti-money laundering program that was allegedly vastly under-tested.
Opening an Account With U.S. Bank Wealth Management
U.S. Bank’s website allows you to open an account directly through your browser. If you’d prefer to have the help of an employee, you can call (844) 872-4724 or set up a callback by entering your name, email address, phone number and what information you’re interested in.
Where Is U.S. Bank Wealth Management Located?
Advisors for U.S. Bank Wealth Management are available in 25 states, including Arkansas, Arizona, California, Colorado, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Minnesota, Missouri, Montana, North Dakota, Nebraska, New Mexico, Nevada, Ohio, Oregon, South Dakota, Tennessee, Utah, Washington, Wisconsin and Wyoming. The firm’s website features a directory of every advisor it employs, so simply select your state and area and you’ll be directed to the appropriate contact information.
Tips to Create a Strong Investment Portfolio
- If you’re a newbie to the world of finance, it can seem overwhelming to start building an investment portfolio. A financial advisor can be a big help to anyone who finds themselves in this situation, or simply anyone who doesn’t have the time to devote to making informed investment decisions. The SmartAsset financial advisor matching tool makes it easier to find a qualified financial advisor to work with. Simply fill out a short questionnaire about your financial goals and preferences, and our program will pair you with up to three advisors in your area.
- Diversification is far and away the most important investment principle in today's world. Not only can it protect you from dangerous losses, it can also boost your profits. SmartAsset’s asset allocation calculator can help you determine how to allocate your assets across asset classes based on your risk tolerance.