Choosing A Financial Services Relationship That Is Right For YouDocument Transcript
Strategically speaking …Choosing a financial services relationshipthat 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 or service. 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 is “suitable.” > Seek to execute all orders in the best availableBrokerage services market by taking into account all relevant facts andBrokerage services include a range of services related circumstances such as order price, order size andto 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 thataccount. These services are provided by a broker-dealer their obligation to tell you about their business, conflictsthrough a registered representative who, acting as your of interest and other matters is more limited than if theyagent, can buy and sell securities on your behalf, and were to have a fiduciary relationship with you, like anprovide 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.
Investment advisory services When you engage the services of an investment adviser, you will enter into a written agreement and receive aInvestment advisers provide analysis and advice by brochure that contains important information about themaking investment recommendations or providing adviser and their business. The agreement acknowledgesresearch and/or opinions to their clients on securities and governs the advisory relationship and outlines theor markets. Investment advisers may also provide investment adviser’s obligations to you. The brochureyou with asset allocation strategies based on your includes information about the adviser’s businessfinancial and tax status. These services are provided model, the scope of services provided, fees you will paythrough investment adviser representatives who are and possible conflicts of interests that may affect theresponsible for providing investment advice and suitable advisory relationship.recommendations to clients on an ongoing basisthroughout the term of the adviser-client relationship. Ameriprise® financial planningThe Investment Advisers Act of 1940 and applicable For many consumers, reaching long-term financialstate laws impose a different, higher set of regulatory goals through an investment advisory service is a solidstandards on investment advisers than broker-dealers. approach to take. Financial planning typically differs fromSometimes, you will hear them referred to as having other types of investment advisory services because ofa “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 thatas 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 dreamsThe Ameriprise Financial Dream > Plan > Track >® Our one-to-one, Identify/prioritizeapproach to financial planning. face-to-face objectives We’ll discuss financial planning your dreams,Our unique and collaborative Dream > Plan > Track > approach process goals and needsto financial planning takes a holistic look at your financial to develop a clearvision, starting with a comprehensive understanding of your vision of your financial future.needs, goals and dreams.Ameriprise Financial cannot guarantee future financial results.
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 progressGather Analyze propose Take actioninformation information recommendations Once we proposeWe’ll review We’ll work We’ll provide specific financialimportant together to written financial solutions to help Track ongoing progressdocuments such understand the planning you reach your Because your goals andas 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 tracktax returns, situation, and goals and needs. your plan. your progress as part ofinsurance policies how the different an ongoing process.and retirement elements mayplans. impact each other.