Ameriprise Financial Services, LLC is one of the largest wealth management firms in the U.S. According to the firm’s brochure, it is owned by Ameriprise Financial, Inc., which is a holding company for Ameriprise Financial Services.
The fee-based firm is both an investment advisor and broker-dealer. It has headquarters in Minneapolis and other corporate offices across the country. Many of its advisors are also brokers and insurance agents. So in addition to providing financial advice, they sell investment and insurance products.
Ameriprise Financial Services Background
Ameriprise’s history goes back to 1894, when it went by Investors Syndicate. It has since changed ownership and names a couple of times – and acquired other companies, including H&R Block Financial Advisors, Columbia Management, quantitative platform Dynamic Ideas and British investment firm Threadneedle.
According to Investment News https://www.investmentnews.com/best-in-wealth/top-independent-broker-dealers-in-the-usa-5-star-broker-dealers/255196, the only broker-dealer to bring in more revenue than Ameriprise is LPL Financial. The latter had more than $10 billion in revenue in 2023, while Ameriprise had almost $6.5 billion in total revenue that year.
Ameriprise Financial Services Client Types and Minimum Account Sizes
Ameriprise says in its brochure tha financial services do "not require a minimum asset amount,” though it charges a $500 minimum fee for services through Ameriprise Retirement Plan Consulting Services (RPCS).
Ameriprise manages assets for individuals with and without high net worth, as well as pension and profit-sharing plans, charitable organizations, state and municipal governments, insurance companies, corporations and trusts and estates.
Services Offered by Ameriprise Financial Services
Ameriprise offers an array of financial services, including asset allocation, ongoing portfolio management services and financial planning. As noted earlier, advisors are also able to sell financial and insurance products, for which they receive a commission from the vendor. Portfolio management can be on a discretionary or non-discretionary basis, depending on the investment program. It can also be through a wrap fee program.
The investment programs, which the company calls "Advisory Solutions" include:
- Strategic Portfolio Service (SPS) Advantage
- SPS Advisor
- Active Portfolios®
- Select Separate Account
- Investor Unified Account
- Vista Separate Account
- Access Account
Ameriprise is a registered investment advisor and broker-dealer that offers a wide range of financial products and services across all 50 states, D.C., Puerto Rico, and the U.S. Virgin Islands.
It is a member of FINRA, SIPC, and the National Futures Association. Ameriprise is also registered with the Commodity Futures Trading Commission.
As part of its business, the firm sells and earns compensation from different types of investments, including stocks, bonds, mutual funds, exchange-traded funds (ETFs), annuities, insurance and other alternative investment products.
Ameriprise Financial Services Investing Philosophy
Ameriprise advisors generally use an asset allocation strategy for diversifying assets across various asset classes. The idea is that investing in non-correlating sectors will lower the volatility in your overall portfolio. Your asset allocation will depend on a number of factors, including risk tolerance, time horizon and goals.
The strategy generaly depends on the investment managers. But, speaking broadly, the firm applies fundamental analysis when considering investments. Managers of model portfolios may also use computer-based quantitative analysis. Technical analysis may also be applied.
Fees Under Ameriprise Financial Services
The firm’s minimum account sizes vary, depending on the investment program. The fee you pay for investment advice and services through Ameriprise Retirement Plan Consulting Services (RPCS) depends on what you and your advisor agree to. It can be either a percentage of the plan’s assets (up to 1.25% per year) or a flat fee. The flat fee usually won’t go over 1.25% of the plan’s assets, but it may be higher in special cases, like when the advisor helps with a complex plan setup.
For financial planning services, fees depend on a number of factors, including your advisor’s years of experience, professional credentials, the complexity of your needs and how often you meet. The minimum annual fee is $500, though your advisor may charge more. Also, this fee is negotiable. Additionally, there is a minimum $50/month fee, which may also be higher.
What to Watch Out For
In its most recent SEC filings, Ameriprise had 145 disclosures dating back to at least 2012. It's important to study these for yourself to see if there is anything that you'd like to ask the firm about directly.
Also worth noting, Ameriprise is a fee-based firm. As we mentioned earlier, most of the Ameriprise advisors are also insurance agents and brokers who receive commissions or transaction-based fees. This presents potential conflicts of interest. That said, the firm is legally bound to work in clients’ best interests.
Opening an Account With Ameriprise Financial Services
If you're interested in investing in an Ameriprise fund, you can go online to its website and submit a contact form. For those who prefer dealing over the phone, you can call Ameriprise at (612) 671-3131.
All information was accurate as of the writing of this article.
Tips for Finding the Right Financial Advisor
- Ask how prospective advisors get paid. When they receive only fees from clients, they have fewer conflicts of interest than advisors who also receive commissions.
- Also ask about the advisor’s clientele profile. If you have a high net worth, you don’t want an advisor who has only a handful of clients like you. Same goes if you are on the other end of the scale. You want someone who has the experience and know-how to help people at your level – and considers you important, regardless of your asset level.
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