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Ameriprise?
Old 07-19-2014, 10:22 AM   #1
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Ameriprise?

How do you all consider Ameriprise? I currently have a rothIRA and a taxable account there, but most of my money is tied up in megacorp's 401k. My broker's mom is an old friend of my mother (he and I went to the same high school, but he was a year younger and we didn't travel in the same circles). He's been doing about 7.5% per annum nominally with my money since 2009 by buying companies right before they get bought out/merge. I was just wondering if Ameriprise's fees are considered high. I can't really pull my money out without causing bad blood, but should I definitely look elsewhere if I decide to open another taxable account?


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Old 07-19-2014, 10:27 AM   #2
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Here are a couple of threads you should read

Hi! Ameriprise client needing advice...

Ameriprise just stuck it to us again

This one is especially informative

Hi all...glad to find this site but now disgusted with myself!
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Old 07-19-2014, 10:59 AM   #3
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Thank you, Michael B. My search function doesn't seem to work on my iPad, so I have a devil of a time finding related, older posts. What is a VUL? I didn't see it listed in the usual acronyms post.


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Old 07-19-2014, 11:28 AM   #4
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.... He's been doing about 7.5% per annum nominally with my money since 2009 by buying companies right before they get bought out/merge. ...
An S&P 500 index fund would have returned about 18% from 2009-2013 without exposing your money to all of those risks.
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Old 07-19-2014, 11:39 AM   #5
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How do you all consider Ameriprise? I currently have a rothIRA and a taxable account there, but most of my money is tied up in megacorp's 401k. My broker's mom is an old friend of my mother (he and I went to the same high school, but he was a year younger and we didn't travel in the same circles). He's been doing about 7.5% per annum nominally with my money since 2009 by buying companies right before they get bought out/merge. I was just wondering if Ameriprise's fees are considered high. I can't really pull my money out without causing bad blood, but should I definitely look elsewhere if I decide to open another taxable account?


Why be normal when you could just be yourself.
It is YOUR money not the advisers. You can do anything you want with it. If they can make you feel bad about what you do with your own money, then they really do have control over you. In my opinion it is scary to let people control you like that. They make big fees on your money, they are not doing this for friendship. It is their business. It should be a business decision for you too. Learn what you can about investing, there are a lot of resources on this forum. And then just tell them you want to do things on your own, for the experience.
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Old 07-19-2014, 11:57 AM   #6
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My condolences, but 18% looks a whole lot better than 7.5%.

Ameriprise has a deservedly abyssmal reputation right down there with the likes of Morgan Stanley, Edward Jones, Prudential, Merrill Lynch, UBS, et al. They do one thing that's smart though: In any google search, they pay to have their positve ads fill up the first pages of search results, so that all the bad reviews get hidden from unsuspecting [potential] clients.
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Old 07-19-2014, 12:07 PM   #7
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My condolences, but 18% looks a whole lot better than 7.5%.

Ameriprise has a deservedly abyssmal reputation right down there with the likes of Morgan Stanley, Edward Jones, Prudential, Merrill Lynch, UBS, et al. They do one thing that's smart though: In any google search, they pay to have their positve ads fill up the first pages of search results, so that all the bad reviews get hidden from unsuspecting [potential] clients.

Well I take it they will have to keep buying and buying to keep the ER Forum comments on the subject buried on page 10 or later, huh?


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Old 07-19-2014, 12:12 PM   #8
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There's are multiple fund companys that utilize low cost index funds, low cost ETFs, even some lower cost active funds. Ameriprise is a Financial Advisor, they dont use many of these low cost fund options.

Instead they use funds that allow fees of many kinds to make your money theirs. Here's some: they will put you into high cost investment options. They will normally switch you around in managed funds that allow for one time front end or back end loads in addition to the normal reocurring fund fees. Then there's probally a reocurring 12b1 fee for up to 1%. You may get so lucky as to have a deffered sale fee. These can be as simple as a 1% fee if you take your money back in the first year, some go for multiple years.

Other folks can tell you better about the Ameriprise fees. I understood there are yearly maintance fees and wrap fees for some lucky accounts.

Run away.
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Old 07-19-2014, 12:13 PM   #9
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Well I take it they will have to keep buying and buying to keep the ER Forum comments on the subject buried on page 10 or later, huh?


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The ads are cheap compared to what they suck out of people for high fees.
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Old 07-19-2014, 01:24 PM   #10
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The ads are cheap compared to what they suck out of people for high fees.

I bet the company pitchman I see on tv, Tommy Lee Jones, is taking a chunk of those high fees in endorsement money!


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Old 07-19-2014, 01:31 PM   #11
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I bet the company pitchman I see on tv, Tommy Lee Jones, is taking a chunk of those high fees in endorsement money!


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And all that advertising cost is a tax deduction for Ameriprise.
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Old 07-19-2014, 02:45 PM   #12
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I can't really pull my money out without causing bad blood
Let the blood flow and consider moving all of your investments to Vanguard. As mentioned earlier, it's your stuff not theirs.
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Old 07-19-2014, 03:25 PM   #13
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Vanguard won't send you a birthday card.

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Old 07-19-2014, 03:53 PM   #14
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Vanguard won't send you a birthday card.

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Thank goodness, who needs those expensive birthday cards anyway.
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Old 07-19-2014, 04:14 PM   #15
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Vanguard won't send you a birthday card.
So if I invest with Vanguard, they will stop me from getting any older? That is even better than the low fees.
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Old 07-19-2014, 04:27 PM   #16
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I always get a chuckle about the bad blood statement. First of all, it's your blood that the vampires have been sucking on. Second, they don't seem to feel too bad about bleeding you to death all these years as far as I can tell. Third, they have clients drop them all the time, so they are used to it.
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Old 07-19-2014, 04:31 PM   #17
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What is a VUL? I didn't see it listed in the usual acronyms post.
Variable Universal Life Insurance (VUL) Definition | Investopedia
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Old 07-19-2014, 05:09 PM   #18
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I always get a chuckle about the bad blood statement. First of all, it's your blood that the vampires have been sucking on. Second, they don't seem to feel too bad about bleeding you to death all these years as far as I can tell. Third, they have clients drop them all the time, so they are used to it.

+1

You should have bad blood towards your friend since he's been taking a significant chunk of your money.
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Old 07-19-2014, 05:40 PM   #19
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I always get a chuckle about the bad blood statement. First of all, it's your blood that the vampires have been sucking on.
Very well put. I'll remember that one.
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Old 07-19-2014, 06:44 PM   #20
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How do you all consider Ameriprise?
They are terrible. Their fees are high and they will put you in funds that will also have high fees (and they get a cut, including your friend).

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He's been doing about 7.5% per annum nominally with my money since 2009 by buying companies right before they get bought out/merge.
That's not very good for thsi time period--so you paid him a lot in fees and also "paid" a lot of money in lost performance.

Your friend cannot outperform the market on a consistent basis by picking winning stocks. If he could do this consistently, he could just leverage his talents by using options and he would be fabulously wealthy very quickly. But he can't, so he has to sell investments to friends at exorbitant fees and trade on their friendship to support himself.

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I can't really pull my money out without causing bad blood
After you figure out how much this is costing you (and it is a lot), do yourself a big favor and just cut the tie to him and do your investing yourself. It's not hard, and you've hit on a great resource here. Then, just mail your friend a check every month for 1/2 of the amount Ameriprise was costing you. You'll still save lots of money, your friend will be making bit more money, and, best of all, the nature of your relationship will be entirely transparent and above board.
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