Renee Hanson is a well-known private wealth advisor who serves at Ameriprise Financial Services LLC. She is located in Phoenix, Arizona.
While it is common for advisors to showcase their accomplishments and awards, some may do so in an attempt to divert attention from their shortcomings. To assist you in making a thoroughly informed decision, it is important to take note of the significant warning signs that are evident in Renee’s disclosures:
About Renee Hanson
Renee Hanson, a proficient financial planner, operates from the bustling city of Phoenix, Arizona. The individual in question is affiliated with Ameriprise Financial Services LLC and maintains an office situated at 7010 E Chauncey Ln Ste 200, Phoenix, AZ 85054, US.
The office hours are from 7:30 AM to 4:30 PM on weekdays, and from 7:30 AM to 2:00 PM on Fridays. You may reach her office at 602-923-9800.
Renee Hanson boasts an impressive array of certifications, including CFP, BFA, CEP, ChFC, and CDFA. Although she purports to provide tailored guidance to her clientele, her disclosures imply that her customers may not be receiving the utmost attention.
The disclosures made by her exhibit several prominent issues.
Problems in Renee Hanson Ameriprise’s Disclosures You Should Know
Multiple Dispute With Clients
Upon reviewing the FINRA BrokerCheck profile of Renee Hanson Ameriprise, it has been noted that there have been two instances of disputes with her clients. In 2007, the client claimed that redemption was carried out on their account without their consent, marking the first dispute.
The client had claimed $5,114 in damages, but the firm rejected the dispute because Renee had adhered to the company’s policy concerning the redemption in question.
The second dispute experienced by Renee occurred in 2019. According to the client, he was not informed that the RiverSource RAVA 4 Variable Annuity he bought in April 2010 was a proprietary product. Additionally, he claims that he was charged account termination fees for accounts that he did not authorize.
The client has claimed damages amounting to $5,941.50 in the ongoing dispute. The dispute in question has been denied once more.
It is important to note that the aforementioned disputes were declined following company policy, rather than due to any lack of merit in the client’s allegations.
Selling Commissioned Products
It is a common observation that proficient private wealth advisors seldom encounter any customer disputes on their FINRA BrokerCheck profiles. One possible explanation for the presence of two disputes on Renee’s record is that she offers custom-made products to her customers for sale.
As per Renee’s disclosures, she has the potential to earn commissions from the sale of specific investments. The potential for bias in the recommendations of the individual in question is a concern, as there is a possibility that her financial gain may take precedence over the best interests of her clients.
It is concerning to note that a significant number of clients remain oblivious to this reality and are under the impression that they are receiving appropriate guidance, despite the contrary.
Charging Extra Fees
It has been observed that certain products offered by Renee Hanson Ameriprise are associated with 12b-1 fees. The 12b-1 fee is a fee charged for marketing purposes, which is typically compensated to the advisor. Certain investors may perceive that despite the increase in investment cost, this fee could potentially provide some advantages.
However, that is not the situation at hand.
As per a recent study conducted by the SEC, it has been observed that there exists no discernible difference in the returns generated by an investment that levies 12b-1 fees as compared to one that does not impose such charges.
The imposition of this fee can lead to a substantial rise in investment expenses, potentially harming your portfolio.
The incentive for Ignoring Clients’ Interests
In her capacity as a member of Ameriprise Financial Services LLC, Renee Hanson possesses the ability to suggest a wide range of proprietary and affiliated products to her esteemed clientele.
The limitations on recommendations that an advisor can provide are imposed by proprietary investments. Financial advisors may sometimes feel compelled to recommend investments that may not be the best fit for their clients due to commission structures. This can result in suboptimal investment choices being presented, while potentially more suitable securities may not be suggested.
In such instances, it is the client who bears the brunt of the unfavorable outcome. Your advisor may suggest a particular proprietary investment as the most suitable option for you, but it is important to note that this recommendation is based solely on the available proprietary investments.
Exposing clients to undue risk
One significant concern with the services provided by Renee Hanson Ameriprise is the inclusion of products that impose performance-based fees.
If your advisor employs a performance-based fee structure, their compensation is contingent upon surpassing a predetermined benchmark. This particular approach compels the advisor to adhere to high-risk strategies irrespective of their client’s specific requirements.
The wealth management industry generally holds a negative view of the performance-based fee structure. The reason for this is that the high-risk tactics it compels an advisor to employ can swiftly eradicate substantial portions of an investor’s portfolio.
In addition, it is important to note that in the event of a loss in your investment, there may not be any recourse available to you against the advisor. As previously observed, Renee Hanson’s company will explicitly state, “You comprehended all the potential hazards.”
The presence of such a significant red flag poses a considerable challenge in establishing trust with this private wealth advisor.
Conclusion
There are other options available in Phoenix besides Renee Hanson Ameriprise. Based on her disclosures, it appears that she may have a significant motivation to overlook your interests and needs, which is a concerning matter.
It would not be a prudent decision to entrust your financial future and security to an advisor of such nature. Before engaging in any business dealings with her, it is imperative to inquire, “Does she prioritize my interests or her financial gain?”
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