Core Insights - Ameriprise Financial Services (AMP) reported a revenue of $4.92 billion for the quarter ended December 2025, marking a year-over-year increase of 10.2% and exceeding the Zacks Consensus Estimate by 4.45% [1] - The earnings per share (EPS) for the same period was $10.83, up from $9.36 a year ago, representing a surprise of 5.27% over the consensus EPS estimate of $10.29 [1] Financial Performance Metrics - Total Assets Under Management reached $1.3 billion, slightly above the average estimate of $1.29 billion [4] - Total Assets Under Administration were reported at $355.5 million, compared to the estimated $349.71 million [4] - Total Assets Under Management, Administration, and Advisement totaled $1.69 billion, exceeding the average estimate of $1.63 billion [4] - Management and financial advice fees generated revenues of $3.1 billion, a 14% increase year-over-year, surpassing the average estimate of $2.89 billion [4] - Revenues from Asset Management were reported at $1.04 billion, exceeding the average estimate of $924.22 million, reflecting an 11.7% year-over-year change [4] Stock Performance - Ameriprise shares have returned +1.9% over the past month, outperforming the Zacks S&P 500 composite's +0.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Key Points If you’re going to have a financial advisor, it’s important to find the right person for the job. Ask about license and experience before signing on. Make sure you understand what fees you’ll be charged. Investors rethink 'hands off' investing and decide to start making real money Choosing a financial advisor is one of the most important money-related decisions you can make, yet many people approach it casually or skip the vetting process altogether. With countless professionals offeri ...

Core Insights - Merit Financial Advisors is pursuing both inorganic and organic growth through the acquisition of SSC Wealth, a financial advice team valued at $260 million [2] - The acquisition will bring four advisors to Merit, including Michele Hammann, who will take on a dual role as regional vice president and partner while continuing as chief strategy officer at SSC CPAs + Advisors [2][3] - The partnership aims to enhance client services by combining tax expertise from SSC with Merit's wealth management capabilities [4][6] Inorganic Growth - Merit has acquired SSC Wealth, which is part of SSC CPAs + Advisors, based in Topeka, Kansas [2] - SSC Wealth has a focus on high-net-worth individuals and business owners, providing tax strategy and business valuation services [5] - The acquisition is part of a trend where RIAs are increasingly integrating CPA services, with examples from both large and smaller firms [4] Organic Growth - Michele Hammann will facilitate organic growth by fostering referral collaboration and joint client engagement between Merit and SSC [3] - The partnership will allow Merit clients to access SSC's tax planning and business advisory services, while SSC clients can work with Merit's wealth managers [6] Industry Context - A recent survey indicated that 57% of RIA executives offer tax planning services, and 22% provide tax preparation [5] - The collaboration between RIAs and CPAs has been evolving, with many firms opting to bring tax services in-house [4]

Core Insights - Financial advisors provide essential services that can significantly impact personal financial management and decision-making [4]. Group 1: Financial Management - Financial advisors assist in setting up sustainable household budgets and review them as circumstances change, such as income increases or new expenses [5][8]. - They help in planning for taxes year-round, employing strategies to legally minimize tax burdens and teaching clients various tactics to shield income from taxes [10]. Group 2: Major Life Decisions - Financial advisors can guide clients through significant life decisions, such as career changes, relocations for better opportunities, or considerations for early retirement, by assessing financial risks and benefits [6][8]. Group 3: Insurance Guidance - Advisors provide assistance in evaluating and obtaining the right types of insurance, including health, life, and long-term care insurance, ensuring comprehensive financial protection [9].

Group 1 - The importance of working with a fiduciary financial advisor in the U.S. is emphasized, as not all advisors are required to prioritize clients' interests [1][2] - Registered Investment Advisers (RIAs) are legally obligated to act as fiduciaries, which includes a duty of care and a duty of loyalty towards their clients [2][3] - The duty of care requires advisors to understand clients' financial situations and make recommendations that serve their best interests [2] - The duty of loyalty mandates that advisors must prioritize clients' interests over their own and disclose any potential conflicts of interest [3] Group 2 - The U.S. Securities and Exchange Commission (SEC) has reaffirmed that fiduciary obligations cannot be waived by contract or disclosure, making it illegal for fiduciary advisors to act against clients' best interests [3] - To determine if an advisor is a fiduciary, clients should directly ask the advisor about their fiduciary status during initial conversations [4] - Public databases such as the Investment Adviser Public Disclosure (IAPD) website can be used to verify if an advisor is registered, the services they provide, and any disciplinary history [5] - The Financial Industry Regulatory Authority's (FINRA) BrokerCheck tool can be utilized to review the licensing, employment history, and any complaints against advisors who also sell securities [6]

Core Insights - Understanding financial advisor compensation is crucial for consumers, with 36% unaware of how they pay for services and 20% believing services are free [1][2] Compensation Models - Advisor compensation is primarily categorized into commission-based and fee-based relationships [2] - Fee-based compensation can include various structures such as annual fees, monthly subscriptions, one-time consultations, or asset-based fees [3][4] Commissions - Commissions are one-time payments for selling specific financial products, with a decline from 23% of advisors in 2024 to an expected 16% in 2026 [5] - Pros include potentially lower costs for consumers needing specific product advice [6] - Cons involve conflicts of interest, where advisors may recommend products that yield higher commissions rather than optimal solutions [8] Assets Under Management (AUM) Fees - AUM fees are typically around 1% of assets managed, with 72% of advisors using this model in 2024, projected to rise to 78% in 2026 [9][10] - Pros include a common compensation structure, but cons include a focus on investment advice rather than comprehensive financial planning [11][12] Flat Dollar Fees - Flat fees provide predictability and align incentives between clients and advisors, but may be high for those with limited funds [13][15] - This model can exclude clients with fewer investable assets, as it may not be profitable for advisors to take them on [15] Subscription, Hourly, and Per-Engagement Fees - These models are straightforward and may be cost-effective for certain consumers, particularly those with less financial complexity [20] - However, accountability may be lower, and finding advisors who charge these fees can be challenging, with less than 1% of advisors using this model in 2024 [20]

AI in Financial Planning: Current Status - Industry experts suggest caution when using AI for personalized financial advice currently [2] - The financial industry sees potential in AI for general financial education, considering it a powerful tool [2] - Internal testing of AI is ongoing, but AI is not currently used for providing financial advice [2] - AI's ability to handle technical details and perform mathematical calculations is improving, but concerns remain [3] - Widespread adoption of AI in financial planning is not yet observed [3] Challenges and Considerations - Prompt engineering is crucial, as many investors may not know the right questions to ask AI [4] - Financial literacy is important for effectively using AI in financial planning; caution is advised otherwise [4]