Introduction to Citizens Wealth Management
Citizens Wealth Management is the investment advisory branch of Citizens Bank and its parent company, Citizens Financial Group, Inc. Established in 1995 as Citizens Securities, Citizens Wealth Management has over $9 billion in assets under management.
Citizens is one of the largest financial institutions in the U.S. and has an extensive team of financial advisors who manage assets for clients.
Citizens Wealth Management is a fee-based firm rather than a fee-only firm. This means that some of its advisors may earn additional compensation from selling specific securities to clients.
What services does Citizens Wealth Management offer?
Citizens Wealth Management currently offers four managed account options. The managed accounts vary based on the amount you have to invest, as well as the level of control you want to hand over to your wealth manager.
These options include:
Citizens Integrated Portfolios: Your investments are held in a unified managed account (UMA) with a diverse investment portfolio. Strategy, asset allocation, and investment vehicles need to be approved by you from the outset. You also grant the platform manager discretionary power to make trades within the account to align with your initial strategy. $100,000 minimum.
Fixed Income Solutions: You’ll have access to investment managers for fixed income portfolios to help create a strategy for risk tolerance, tax exposure, and liquidity. $100,000 minimum.
Citizens Private Wealth Solutions: Offers both a unified managed account (UMA) or an advisor as portfolio manager (APM) options for managing your account. How much discretion your financial advisor has over your portfolio is up to you. $250,000 minimum.
Citizens Advisory Connect Program: Receive investment recommendations and initial guidance from a financial advisor. The primary method of communication is by electronic communication. Minimum of $2,000.
In addition to wealth management, Citizens can also help clients with the following financial planning issues:
Save and grow money
Start a business
Prepare for retirement
Manage retirement savings
Life insurance
What is Citizens Wealth Management’s investment philosophy?
Citizens Wealth Management offers personalized financial planning designed to help you grow your money, protect your family, and transition your wealth. They offer a three-pronged approach:
Clarify your goals
Assess your situation
Plan for the journey ahead
Citizens utilizes a range of investment strategies through in-house mutual funds and third-party managers. This approach is also reflected in accounts, which vary in the wide range of securities used in portfolios.
What is Citizens Wealth Management’s pricing and fee structure?
To manage your money, Citizens Wealth Management charges a fee based on the amount of assets managed by the firm (also known as an AUM fee). The fee varies by individual, but is no greater than 2.0%. It is negotiable for Citizens Private Wealth Solutions customers.
Previously, Citizens had disclosed a fee structure, and while this may no longer be accurate, it can give you an idea of what they charge. Annualized charges were as follows:
Citizens Integrated Portfolios Unified Managed Account Fees
| Total AUM | Annual Fee |
|---|---|
| First $250,000 | 1.41% |
| Next $250,000 | 1.26% |
| Next $500,000 | 1.11% |
| Next $1,000,000 | 1.06% |
| Next $3,000,000 | 1.01% |
| $5,000,000 and up | 0.96% |
Citizens Advisory Connect Fees
| Total AUM | Annual Fees |
|---|---|
| First $250,000 | 1.35% |
| Next $250,000 | 1.25% |
| Next $500,000 | 1.13% |
| Next $1,000,000 | 1.08% |
| Next $3,000,000 | 1.03% |
| $5,000,000 and up | 0.98% |
Advisors can also earn money on your money from commissions from certain mutual funds, third-party providers, and affiliates. This compensation structure creates a conflict of interest, which Citizens will be required to disclose (pay attention to the fine print, in other words).
Previously, Citizens offered a Digital Advisory Program using SigFig as a provider, but that program has been discontinued.
Is Citizens Wealth Management trustworthy?
Citizen Wealth Management has been registered with the SEC since 1996 as Citizens Securities and is BBB accredited. The company has acquired a number of financial advisor groups with high-net-worth clients.
Citizens does have some limitations when it comes to managing your money.
Fiduciary limitations: Advisors have limitations when it comes to their fiduciary capacity. They are not required to be fiduciaries when advising you about retirement account rollovers, general information about financial markets, asset allocation, and individual investments.
Past sanctions: Sanctions include past violations of law when selling annuities, insurance, mutual funds, and other investment products. However, the last sanction dates back to 2018.
Conflicts of interest: The company has a number of conflicts of interest due to additional compensation that it or its advisors receive for making specific recommendations. Citizens Bank Investment Services receives 12b-1 fees from mutual funds.
Advisors may receive additional compensation from the sale of various securities, which means that you might receive recommendations based on the potential compensation your advisor will receive rather than on your needs.
What are the pros and cons of Citizens Wealth Management?
There are several pros and cons of Citizens Wealth Management, including:
Pros
Diverse Investments: The company offers an extensive selection of investment products, such as mutual funds, brokerage accounts, and IRAs, giving customers flexibility.
Knowledgeable Advisors: Citizens Investment Bank’s advisors are known for a professional approach that combines expertise, valuable insights, and personalized guidance.
Online tools: The company offers online tools and resources that clients can use to stay updated about market trends, track their investments, and take a proactive approach to managing their financial assets.
Cons
High fees: You’ll pay a lot of different fees with Citizens, from a high AUM fee to mutual fund transaction fees you may not be aware of. These can negatively impact overall returns.
Limited locations: Citizens Bank Wealth Management's physical branches are mostly in the northeastern part of the U.S., which can make it difficult for some clients to meet advisors in person.
Mixed customer service reviews: Some clients are not happy with the level of responsiveness or the quality of service they receive from advisors or customer care agents.
High account minimums: The account minimums are high enough to exclude some earners from investing with Citizens.
How to open an account with Citizens Wealth Management?
There are two ways to open an account with Citizens Wealth Management.
One is to visit the company’s website, access the “Investing and Wealth Management” page, and select the “Find an Advisor” button. The other is to call the company at 1-833-373-1955.
Get expert financial advice
Citizens Wealth Management is known for offering a wide range of investment products and personalized service. However, fees for services are higher than what you’ll find from other wealth management firms, which can take a bite out of your investment gains.
When you need impartial, expert advice on how and where to invest your money, talk to a fiduciary from Unbiased. You can get matched with a financial advisor at Unbiased and benefit from expert financial advice today.