My day at Ameriprise Financial started with meeting two
other interns from Roger Williams College who showed me the ropes that day. We
began by writing out reminder postcards, this either gave two or four weeks
notice to the clients so they could be reminded and prepare for the meeting
coming up with Mr Pippett. We also needed to identify if the meeting were to be
held at the Fall River office, at the client’s house or over the phone. For the
meetings that would happen in the office, we produced client packs in order for
Mr. Pippitt to have easy access to information before the meetings. This
enables him to review the client’s portfolio to see if any changes need to be
made to their investments. Compliance documents need to be signed yearly by
clients, if meetings are to be done over the phone then the company will send
out a variety of documents for them to sign in the comfort of their homes. Compliance
packs include:
1.
Up-to-date account summaries
2.
Disclosure forms
3.
Account suitability
4.
Professional relationships and released client
information, such as
·
Accountant
·
Tax Advisor
·
Attorney
·
Property and casualty insurance
·
Real estate broker
5.
Phone authorization – this allows over the phone
transactions to be made.
6.
And an agreement of the service fee from the SPS
(Strategic Planning System)
Afterwards,
I sat in on two phone calls that Mr Pippitt made. The first was to find out
additional information regarding a K1 form of a clients, this is a tax form
distributed from a trust account. The next was with a REIT (Real Estate
Investment Trust) company, this was to have an update on their product in order
inform a client in a meeting coming up of its expect revalue as it had
currently fallen in share price since the last review.
The next
thing I learnt that day was that if a client is making the majority of their
money in their working years, an individual RIA would be more beneficial for
them, as they can retire without having to pay taxes on their invested capital.
A RIA Roth on the other hand allows taxes on their capital to be paid after
they retire.
If income is made through investments then there is only a
15% tax on their capital gains compared to a higher amount that would be
charged through directly earned income. This subsequently helps to explain why
the likes of Mitt Romney and Warren Buffett pay a lower tax bracket then their secretaries.
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