1. Strategically speaking …
Choosing a financial services relationship
that is right for you.
Generally, brokers will not make investment decisions
Understanding brokerage services, for you but may offer recommendations about which
securities to buy, hold or sell. The recommendations
investment advisory services and are often made on a transactional basis. Brokers must
financial planning. know key facts about your financial situation and then
make suitable recommendations based on those facts.
As you consider your immediate and long-term
“Suitable” means that the broker has asked you about
financial needs, you may ask “What type of
your basic financial and tax status, including current
financial services relationship is right for me?”
investments, income and net worth; your tolerance for
There are different types of services: brokerage
risk; investment experience and the expected amount
services, investment advisory services and
of time you plan on holding the investments. Using this
financial planning. They are different not only
information, they can recommend a specific product
in terms of the services provided, but also the
different obligations of the firm that provides
those services. Ameriprise Financial can help Brokers can also provide investment guidance
you understand these types of services so you beyond the scope of buy/sell/hold recommendations
feel comfortable with your approach as you seek on individual securities, such as providing investor
to reach your financial goals. education, investment research, basic financial analyses
and advice on an asset allocation* strategy based on
Whatever approach you choose, we believe that
the suitability information described above. Typically, you
your needs can best be served by someone
are not charged a separate fee or commission for this
who understands your goals and supports
guidance because it is part of, and incidental to,
your dreams. This may include helping you
the brokerage services. Brokers must also:
plan to achieve your goals and recommending
appropriate investments for your situation. > Treat you in a fair manner characterized by high
Financial recommendations should take into standards of honesty and integrity.
consideration your risk tolerance, time horizon,
overall financial objectives, tax situation and > Conduct due diligence on any security so they have
any financial constraints. a reasonable belief that any recommendation made
> Seek to execute all orders in the best available
Brokerage services market by taking into account all relevant facts and
Brokerage services include a range of services related circumstances such as order price, order size and
to investing in specific securities — such as stocks, trading characteristics of the security involved.
bonds and mutual funds — which are held in a brokerage When working with brokers, you should also know that
account. These services are provided by a broker-dealer their obligation to tell you about their business, conflicts
through a registered representative who, acting as your of interest and other matters is more limited than if they
agent, can buy and sell securities on your behalf, and were to have a fiduciary relationship with you, like an
provide periodic reports regarding your transactions and investment adviser.
the value of your holdings.
*Asset allocation is the process of dividing investments among different kinds of assets such as stocks, bonds, real estate and cash
to optimize the risk/reward trade-off, based on your specific situation. Asset allocation does not assure a profit or protect against loss
in declining markets.
2. Investment advisory services When you engage the services of an investment adviser,
you will enter into a written agreement and receive a
Investment advisers provide analysis and advice by brochure that contains important information about the
making investment recommendations or providing adviser and their business. The agreement acknowledges
research and/or opinions to their clients on securities and governs the advisory relationship and outlines the
or markets. Investment advisers may also provide investment adviser’s obligations to you. The brochure
you with asset allocation strategies based on your includes information about the adviser’s business
financial and tax status. These services are provided model, the scope of services provided, fees you will pay
through investment adviser representatives who are and possible conflicts of interests that may affect the
responsible for providing investment advice and suitable advisory relationship.
recommendations to clients on an ongoing basis
throughout the term of the adviser-client relationship. Ameriprise® financial planning
The Investment Advisers Act of 1940 and applicable For many consumers, reaching long-term financial
state laws impose a different, higher set of regulatory goals through an investment advisory service is a solid
standards on investment advisers than broker-dealers. approach to take. Financial planning typically differs from
Sometimes, you will hear them referred to as having other types of investment advisory services because of
a “fiduciary” relationship with you — this means an the breadth and scope of the advisory services provided.*
investment adviser has the responsibility to act in your When you engage in a financial planning relationship,
best interests. In addition to having the same obligations you benefit from a comprehensive, ongoing process that
as brokers, investment advisers must also: helps you achieve your goals.
> Act in your best interests when providing you Financial planning is the process of meeting your
with investment advisory services. financial goals through the disciplined management of
your finances. Financial goals can include buying a home,
> Place your interests above their own. saving for education costs or planning for retirement.
> Avoid or disclose any material conflicts of interest,
including disclosure of compensation paid to or
received from affiliates as a result of the advisory
relationship or any recommendations made in
connection with the advisory services.
Securities and Exchange Commission 17 CFR Part 275
Defining your dreams
The Ameriprise Financial Dream > Plan > Track >® Our one-to-one, Identify/prioritize
approach to financial planning. face-to-face objectives
financial planning your dreams,
Our unique and collaborative Dream > Plan > Track > approach process goals and needs
to financial planning takes a holistic look at your financial to develop a clear
vision, starting with a comprehensive understanding of your vision of your
needs, goals and dreams.
Ameriprise Financial cannot guarantee future financial results.
3. The financial planning process consists of six steps Taking action on the proposed strategies and
that help you take a “big picture” look at where you recommendations is part of the process and can help you
are financially. It is an ongoing process, defined by the reach your financial goals. Once your Ameriprise financial
Certified Financial Planner Board of Standards, Inc., advisor has analyzed your situation and proposed
designed to help you meet your immediate and long-term strategies and recommendations that are aligned with
financial goals. Using these six steps, you can identify your goals, needs and priorities, you can decide how to
your objectives, define your current situation, evaluate take action on your plan.
how much you need to reach your goals and determine
what you need to do to help reach them. Typically, you have a choice of financial services providers
with whom to implement the recommendations via
At Ameriprise Financial, we believe financial planning is a transaction-based brokerage account, a fee-based
a long-term, collaborative relationship, delivered through investment advisory account or a combination of both.
a one-to-one financial planning process. We’ll work The protection you receive from a financial planning
together to define your dreams, develop a plan to help relationship does not extend to any existing brokerage
you get there, then track your progress along the way, accounts or the implementation of a financial plan, unless
recommending changes when needed. you decide to continue the relationship after you receive
your initial recommendations from the same provider.
Financial planning provides direction and meaning to
your financial decisions. It helps you understand how It is also important to revisit your financial and life goals
each financial decision can affect your other goals. For regularly, monitor your progress toward them and make
example, using a specific investment strategy might adjustments to help you stay on track. At Ameriprise
help you buy something in the future, but it may have a Financial, we encourage clients to have an ongoing
negative impact on your current lifestyle, protection needs planning relationship because research shows they
or other future goals. By viewing each financial decision are more confident and optimistic that they will achieve
as part of a whole, you can consider the impact on your their dreams and financial goals than people who don’t.
entire financial situation.
Reference the summary box on the back page for a complete comparison of service options.
To learn more about which type of financial services relationship is right for you, talk with your
financial advisor. If you don’t have a financial advisor, call us at 1-800-AmerIprIse or visit
ameriprise.com to learn more.
Developing your plan Tracking your progress
Gather Analyze propose Take action
information information recommendations Once we propose
We’ll review We’ll work We’ll provide specific financial
important together to written financial solutions to help Track ongoing progress
documents such understand the planning you reach your Because your goals and
as brokerage and big picture of recommendations goals, you can needs evolve over time,
bank statements, your financial that align with your take action on it is important to track
tax returns, situation, and goals and needs. your plan. your progress as part of
insurance policies how the different an ongoing process.
and retirement elements may
plans. impact each