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Ameriprise Financial Services is the second-largest independent brokerage and financial advisory firm. It offers a comprehensive suite of financial planning services, wealth management tools, and fiduciary advisor access. However, Ameriprise may not be ideal for beginner investors seeking a user-friendly platform with low fees.
Overview of Ameriprise Financial Services
Ameriprise Financial Investments (formerly known as American Express Advisors) is one of the oldest independent brokerage and financial management firms. It provides a huge selection of financial planning, retirement saving, and portfolio management services. It’s also one of the largest registered investment advisors (RIAs) in the US.
Ameriprise only employs fiduciary financial advisors legally and ethically bound to act in their client’s best interests. With this platform, you can invest in stocks, bonds, mutual funds, ETFs, unit investment trusts (UITs), structured notes, options, and various alternative investments.
Ameriprise investment management services are generally best for experienced investors (either passive or active) wanting to work alongside a financial advisor or have a fully managed account. Moreover, the firm provides multiple goal-building tools, fund screeners, financial calculators, and more.
However, Ameriprise Financial’s website is hard to navigate. Finding information about accounts, fees, and investment options is difficult and may not be accessible for beginners. And with high minimums and fees, beginners and cost-conscious investors are better off with one of the best online financial advisors. Moreover, the investment minimums and fees are high compared with competitors.
Ways to Invest With Ameriprise
Ameriprise Financial Services has roughly two million clients and more than $1 trillion in assets under management (AUM). Here’s how to access personalized financial planning with Ameriprise.
Managed Accounts
Ameriprise Financial Investments offers multiple discretionary and non-discretionary managed account options, including the SPS Advantage Account, Active Portfolio Investments, SPS Advisor Accounts, Select Separate Accounts, Vista Separate Account, Investor Unified Account, and Access Account Programs (aka Manager Direct Programs).
The three managed direct programs are:
- Client-Directed Accounts: Customize and manage your own individual investment portfolio alongside an Ameriprise financial advisor. Instead of taking a backseat, you’ll be involved in picking and approving all investment options. You can invest in mutual funds, ETFs, UITs, stocks, bonds, structured products, and alternative investments with a client-directed account. You can invest through the SPS Advantage Accounts.
- Manager-Directed Accounts: An investment manager provides ongoing investment management of your portfolio. To choose an investment manager, you and an Ameriprise financial advisor select one from a preselected list of managers. This account option offers you actively managed mutual funds and ETF portfolios. But you can also invest through separate managed accounts options, Select Strategist UMA Portfolio, Active Portfolio Investment, Select ETF Portfolio, or the Investor Unified Account.
- Advisor-Directed Accounts: A financial advisor creates and manages your investment portfolios. The financial advisor has complete authority over the assets and investment selections. With this account, you can invest in mutual funds, ETFs, stocks, bonds, and structured products. You can invest through the SPS Advisor Account.
Ameriprise Financial Services doesn’t disclose much about what the managed accounts offer, outside of what the managed direct programs are. Instead, Ameriprise Financial states, “Ameriprise Financial Services will determine whether an Account is appropriate for you upon Account opening based on the information you provide.”
You can read more about wealth management solutions by Ameriprise with this brochure.
Retirement Savings Accounts
You can open a client-directed, manager-directed, or advisor-directed account as an individual or employee-sponsored retirement savings account. Ameriprise Financial Services offers the following retirement accounts:
College and Education Savings Accounts
Ameriprise Financial Services offers various education savings plans, such as 529 plans. These are state-run, tax-advantaged accounts for future educational expenses like tuition, loan payments, apprenticeships, and other qualifying expenses. Tax benefits and contributions limits of 529 plans vary from state to state.
Ameriprise Financial Services offers 529 plans from 20 different firms. These firms include American Century, BlackRock, Fidelity, Goldman Sachs, and J.P. Morgan.
Ameriprise Financial Services also offers Coverdell education savings accounts (CESA), which, like 529 savings plans, are tax-advantaged accounts for users to save money for qualifying education expenses.
Investment Options
Ameriprise Financial Services offers around 2,200 professionally managed mutual funds from more than 130 fund companies. Stocks and exchange-traded products (ETPs) are listed on major US stock exchanges, like the NASDAQ, and over-the-counter securities like ETFs, ETNs, and CEFs.
You can also invest in various bonds and individual fixed-income securities like mortgage-backed securities, asset-backed securities, CDs, U.S. agency bonds, and treasury bills and notes. Alternative investment options include hedge funds, exchange funds, managed futures funds, non-traded closed-end funds, non-traded REITs, private equity, UITs, and 1031 exchanges.
Other investment options are unit investment trusts (UITs), pooled investment vehicles best for a buy-and-hold strategy until the termination date. Ameriprise Financial Services additionally offers options, structured notes, and syndicate offerings.
The investment options you can access depend on the type of account you have with Ameriprise Financial Services.
Ameriprise Fees
Ameriprise Financial charges an annual advisory fee of $500 with a $50 monthly fee if you enroll in ongoing financial planning services. Managed accounts (aka wrap fee programs) have a 2% AUM
Minimum investments for different Ameriprise Financial Services accounts are as follows:
- SPS Advantage Accounts have a $25,000 account minimum
- SPS Advisor Accounts have a $100,000 account minimum
- Active Portfolios Accounts have an initial $25,000 minimum with a maintenance minimum of $15,000 (Active Growth Builder Portfolios have an initial investment minimum of $5,000 and a maintenance minimum of $4,000)
- Select Separate Accounts have between $100,000 and $500,000 initial minimum.
Ameriprise Financial Services managed direct programs have varying investment minimums to start investing. For example:
- Client-directed: $2,000 per account minimum; $25,000 per household minimum
- Manager-directed: Between $5,000 to $500,000 per account minimum
- Advisor-directed: $2,000 per account minimum; $100,000 per household minimum
Ongoing advice from an Ameriprise financial advisor starts at $5,000.
Ameriprise Financial Services Pros and Cons
Ameriprise Financial Services Pros
- Various managed account options
- Multiple investment options and asset classes
- Large selection of research resources and investment tools
- Fiduciary financial advisor access
- Retirement savings accounts and education savings plans
Ameriprise Financial Services Cons
- High account minimums
- Difficult to navigate website
- Complex fee structure
Is Ameriprise Financial Services Trustworthy?
Ameriprise Financial Investments has an A+ rating with the Better Business Bureau. BBB ratings range from A+ to F and reflect the bureau’s opinion of how well a company interacts with its customers. Therefore, an A+ is the highest rating of customer trustworthiness.
Before issuing ratings, the bureau also considers a company’s time in business (including its business type), customer complaint history, licensing and government actions, and advertising issues.
In 2022, the SEC charged Ameriprise a $5 million fee. The SEC claimed that Ameriprise offered faulty variable annuity exchanges.
Ameriprise Financial Services Alternatives
Ameriprise Financial Services vs. Interactive Brokers
Both Ameriprise Financial Services and Interactive Brokers offer multiple investment options, such as mutual funds, ETFs, and stocks. However, the firms offer slightly different investments, as well as different account options and investment minimums.
Ameriprise is best for experienced investors looking to work with a financial advisor. In contrast, Interactive Brokers is best for advanced, active investors — but it also offers a robo-advisor option called Interactive Advisors. In general. Interactive Brokers is lower cost with a $0 account minimum and generally low fees.
Ameriprise Financial Services is the better choice for folks looking to work closely with a fiduciary financial advisor. It also offers education savings account options, but Interactive Brokers does not.
Ameriprise Financial vs. Vanguard
Vanguard Personal Advisor is an extension of the online brokerage Vanguard. It has a $50,000 minimum and is best for passive investors looking to trade Vanguard ETFs and mutual funds.
Like Ameriprise, Vanguard Personal Advisor offers fiduciary advisor access. But it also offers digital portfolio management. Vanguard is better for investors interested in using the brokerage’s automated trading features and unique retirement-planning solution. But it doesn’t offer individual stocks, bonds, options, or cryptocurrencies.
Ameriprise Financial Services is more suited for investors who want access to individual investments.
Vanguard Personal Advisor review
Why You Should Trust Us: How We Reviewed Ameriprise Financial Services
We examined Ameriprise Financial Investments using Business Insider’s rating methodology for investing platforms to compare and examine account types, pricing, investment options, ethics, and overall customer experience when reviewing investing platforms. Platforms are given a rating between 0 to 5.
Brokerages generally offer multiple account options, financial planning tools, advisor access, low fees, and other resources. Some investing platforms are better for more advanced investors or active investors, while others may better suit beginners and passive investors. Ameriprise Financial Services was evaluated with a focus on how it performed in each category.
Business Insider’s Ameriprise Financial Services Overall Rating
Ameriprise Financial Services FAQs
Ameriprise Financial Services is one of the largest global financial planning and wealth management companies offering a range of investment management, estate planning, and insurance products. Ameriprise’s advisors work closely with clients to craft personalized investment and wealth-building strategies.
Ameriprise Financial sticks out with its client-centric approach to financial planning and investing. Apprises’ advisors provide ongoing guidance and management to build long-lasting client relationships. In return, clients receive personalized plans based on their entire financial situation and fluctuating market conditions.
Ameriprise Financial Services is competitively priced and prides itself on fee transparency. However, some fees and minimums are still relatively high because of the type of complex and personalized services available through the advisory firm. Depending on the kind of services or products you opt-in for, you may be subject to annual or monthly fees based on assets under management (AUM). Ongoing advice from an Ameriprise financial advisor starts at $5,000.
Ameriprise Financial is suitable for a wide range of clients, but especially for individuals and families needing ongoing wealth management and financial planning guidance. The firm is a great option for people with large brokerage account balances or complex financial situations. However, beginner investors looking for low-cost, straightforward brokerage services may prefer a different platform.
Ameriprise Financial ensures personalized service through its network of experienced fiduciary advisors who work closely with clients to create long-term relationships for personalized ongoing investment advice. Ameriprise holistic approach to financial planning considers all aspects of an investor’s life to build a comprehensive financial plan that is routinely tracked and adjusted to meet their goals.
