Introduction to Ameriprise Financial Services
Ameriprise Financial, Inc., is a 130-year-old financial planning and services company headquartered in Minneapolis, Minnesota. John Tappan founded the business in 1894, then called Investors Syndicate, by getting 1,000 investors to invest $5 each. Since then, the company has evolved through mergers and acquisitions to become Ameriprise Financial in 2005.
Assets Under Management:
$1.4 trillion (as of 2024)
Fee:
Typically 0.50%–1.50% (varies by service, advisor, and platform)
Fee Structure:
Fee-based and commission-based
Minimum Account Sizes:
$25,000–$50,000
Ameriprise offers various financial products and services, including retirement planning, investment management, insurance, and wealth management solutions. If you are wondering if Ameriprise Financial Services is a fiduciary, the answer is yes, as the firm employs fiduciary financial advisors.
What services do Ameriprise Financial Services offer?
What is Ameriprise financial services offering, and what does it encompass? In short, Ameriprise offers a comprehensive suite of financial products and services tailored to its clients' needs. They aim to empower clients to navigate their financial journeys and achieve long-term objectives. Their offerings include:
- Retirement planning solutions
- Investment management services
- Insurance products
- Wealth management solutions
- Charitable giving strategies
What is Ameriprise Financial Services’ investment philosophy?
Ameriprise believes in helping clients navigate the present while preparing for their financial future. Every one of their financial and investment advisors follows their personalized investment philosophy that is grounded in a four-step approach that aims to optimize long-term returns while managing risks effectively:
- Understanding the client's goals and risk tolerances.
- Designing a diversified portfolio aligned with client objectives.
- Implementing the plan with a focus on tax efficiency and cost management.
- Regularly adjusting and monitoring the portfolio as needed.
What is Ameriprise Financial Services' pricing and fee structure?
Ameriprise Financial offers a range of financial services with different pricing models depending on the product or program.
For clients enrolled in ongoing financial planning, the firm typically charges a $500 annual fee, plus a $50 monthly fee.
For managed accounts (also called wrap fee programs), fees are generally asset-based, often ranging from 0.50% to 2.00% of assets under management (AUM), depending on the program and account size.
Investment management fees may be higher in wrap accounts due to the inclusion of advisory, administrative, and trading costs.
For Personal Trust Services (via Ameriprise Bank, FSB), fees are structured on a tiered AUM basis, plus an annual base fee of $750 (waived if linked account assets exceed $1 million). The tiered schedule varies by model:
Advisor-Based Investment Model (Trust Services)
| Asset Tier | Annual Fee (%) |
|---|---|
| First $1 million | 0.75% |
| Next $2 million | 0.60% |
| Next $1 million | 0.50% |
| Next $6 million | 0.25% |
| Over $10 million | 0.10% |
Custodial Model (Trust Services)
| Asset Tier | Annual Fee (%) |
|---|---|
| First $1 million | 0.55% |
| Next $2 million | 0.40% |
| Next $1 million | 0.30% |
| $4–10 million | 0.15% |
| Over $10 million | 0.10% |
Note: These trust service fees apply to clients seeking fiduciary oversight and estate planning solutions. Other Ameriprise investment programs may follow different pricing tiers.
Ameriprise: minimum investment
Minimum investment requirements at Ameriprise vary widely depending on the product:
Retail Investment Programs:
| Program | Minimum Investment |
|---|---|
| SPS Advantage | $25,000 |
| SPS Advisor | $100,000 |
| Active Portfolios | $25,000 initial / $15,000 ongoing |
| Active Growth Builder Portfolios | $5,000 initial / $4,000 ongoing |
| Select Separate Accounts | $100,000 to $500,000 |
| Ongoing Financial Advice | Starts at $5,000 |
Managed Investment Account Structures:
| Structure | Minimum Investment |
|---|---|
| Client-directed | $2,000 per account; $25,000 per household |
| Advisor-directed | $2,000 per account; $100,000 per household |
| Manager-directed | $5,000 to $500,000 per account |
Trust Services:
Both Advisor-Based and Custodial Trust models typically require a $500,000 minimum to access personalized fiduciary oversight and trust administration.
Is Ameriprise Financial Services trustworthy?
Ameriprise Financial Services has been in business for 130 years and holds an A+ rating with the Better Business Bureau (BBB). Such a rating indicates high customer satisfaction and a favorable track record of resolving customer complaints.
While a good BBB rating can be a positive sign, it's essential to conduct due diligence when evaluating a financial service provider's trustworthiness. This involves researching their reputation, reading customer reviews of Ameriprise financial services, understanding their investment philosophy and fee structure, and comparing their offerings to those of other financial service providers. It’s also a good idea to look for any Ameriprise financial services complaints and what the resolutions were.
What are the pros and cons of Ameriprise Financial Services?
As with any firm, doing business with Ameriprise has potential advantages and disadvantages. Some are outlined below:
Pros of Ameriprise Financial Services
- Comprehensive financial planning: Ameriprise offers a wide range of financial services and products, providing clients with holistic financial planning solutions.
- Personalized approach: The company follows a client-centric approach, meaning it offers tailored advice and fosters long-term relationships with its clients.
- Established reputation: With 130 years of experience in the financial industry and a strong brand presence, Ameriprise is known for reliability and expertise.
- Accessibility: Ameriprise has an extensive network of financial advisors and offices across the US.
Cons of Ameriprise Financial Services
- Higher fees: Ameriprise's fee structure for managed accounts may be higher than competitor offerings, drastically impacting overall investment returns.
- Proprietary products: The company may promote its proprietary investment products, potentially leading to conflicts of interest or limited investment choices.
- Sales culture: Some clients have reported feeling bullied, shunned, or belittled by Ameriprise advisors to purchase additional products they did not want or need.
- Complex fee structure: Ameriprise's fee structure is complex and sometimes clandestine, and some clients report receiving no feedback on direct inquiries.
How to open an account with Ameriprise Financial Services?
While you will find Ameriprise financial services locations across the US, you can open an account by contacting an advisor through email, telephone, or in person. You'll discuss your financial goals, risk tolerance, and investment preferences during the initial consultation.
Your advisor will explain the account opening process, which may involve completing paperwork, providing supporting documents, and agreeing to terms and conditions. Before finalizing your decision, remember to ask about fees, investment options, and the advisor-client relationship.
Get expert financial advice
Ameriprise is a well-established company offering comprehensive financial options. While the firm enjoys a positive BBB rating, potential drawbacks include higher costs and a sales-oriented culture.
Conducting thorough research and evaluating individual needs is crucial when looking for a financial advisor. Let Unbiased match you with an expert financial advisor so that you can get expert financial advice tailored to your situation.
Frequently asked questions
Is Ameriprise a fiduciary?
Yes. Ameriprise employs SEC‑registered fiduciary advisors. Clients can opt for a consolidated advisory relationship where financial planning and managed accounts are combined under a fiduciary standard.
Is Ameriprise financial a reputable company?
Ameriprise Financial is a reputable company with more than 12,000 financial advisors and office locations across the country, making it one of the best-known financial advisory firms.
Is my money safe at Ameriprise?
According to Ameriprise, all your assets held with them are protected by regulatory oversight and their online security guarantee. The brokerage and investment businesses of Ameriprise are regulated by federal, state, and other regulators.
Are Ameriprise fees high?
Ameriprise Financial Services is competitively priced and prides itself on fee transparency. However, some fees and minimums can still be relatively high due to the complex and personalized services offered by the advisory firm.