Screenshot of Investment Home Page Citibank

Sure, for a big part of the 2000s many financial institutions and even businesses gained a lot by investing in these markets but after 2008, everyone is a little more reluctant. With a good spread of investments, consumers are able to mitigate their risks. Citibank Investments take a look at portfolios that offer a lot more than merely just the run-of-the-mill investments, they also make use of a team of specialists to keep an eye on what is hot and happening out there. This review measures these options against some of the best products across the world to see how they compare.

Have a look at what Europe has to offer where investments are concerned, with the Credit Agricole Investment range.

About Citibank

Screenshot of the History of Citibank

This is a bank that carries a rich history filled with a combination of triumphs and heartache. What started off as a bank to service a private customer, soon expanded to assist some of the most influential people in New York. It didn’t stop there, as services were then offered to the ordinary man on the street. The bank became a formidable opponent to other banks in the area and was soon rated as one of the top banks in New York.

Expansion efforts were soon on the cards and the borders of the US were simply not enough. In the early 1900s, the bank was able to establish their first overseas branch in Argentina. Soon after, WWI depleted many of the national coffers across the world and in the US, things were no different. Soldiers returned home only to find that there was no provision for them. Jobs, housing, and support were not even on the horizon. To make matters worse, the then chairman of Citibank, Charles E. Mitchell, made a few financial decisions that would prove detrimental to the economy. This was Black Tuesday, which was also the cause of the Great Depression.

A bank that played an integral part in the economic restoration of America during the World Wars, was Ally Bank.

After the War

For many, there was no option but to go back to war when WWII happened. Back home, banks and other institutions were working frantically to recover from the shock of the depression. It managed to rebuild parts of it and in the fifties, the manufacturing industry managed to do what the banks couldn’t. Once again the US enjoyed a period of prosperity and growth.

For decades, financial institutions experienced growth, refined their product offerings, and regained the trust of the public. This all changed in 2008 when the economy collapsed again. This time it affected the rest of the world as well. Citibank was one of the banks responsible for the collapse and this time will have to work double time to regain the trust of consumers.

4 Things You Should Know About Investments

Investment asset managers always have these epic advertising campaigns that promote prosperity and financial stability. However, what consumers often forget when they walk into those offices, is that there are terms and conditions to achieving wealth with these products.

The Investments Carry Risk, Even When They’re Low-Risk

The risk of the investments are usually determined by the mix of funds and whether the funds are in volatile or stable markets. Unfortunately, there is no way to determine whether an investment fund will be stable for the entire duration thereof. This is because market changes and other factors can influence it at a moment’s notice. A good example of this is the subprime mortgage crash of 2008.

Not All Funds Carry the Same Mix of Assets

Although many funds carry the same types of assets, the various funds will have different ratios of the assets to satisfy risk ratings. This means a low-risk fund could still have equity in it, however, at a much lower percentage than a higher risk fund.

Insist on Guarantees to Reduce Risk

Very few investors know that the FDIC doesn’t cover investments offered through the brokerage wing of a bank. Even though these are offered through a bank representative, it doesn’t fit the criteria for the FDIC. Customers who still wish to pursue investments should request a guarantee for their investment.

This is Not a Short-Term Fix

Investments experience peaks and valleys throughout and it’s important for the investor to be in a position to ride this out. This means investors should expect to invest their funds for at least 5 years before drawing from it.

Citibank Investments Product Offerings

Screenshot of Some Investment Service Options Citibank

Preparing for Retirement

Customers have access to a number of products and tools to meet their retirement objectives. Furthermore, the consultant will help the customer with goal setting and income projections.

  • Customers have access to calculators that show them when to start saving and how taxes affect their savings.
  • There are resources available for those who wish to sign up for a Traditional or Roth IRA.
  • Some of the products customers can look forward to include tax-deferred annuities, IRAs and rollovers, and immediate annuities.

College Savings

There are a number of ways to fund a college education, and savings are just one of them. There are a number of resources available on the website to guide customers accordingly.

  • Customers have access to a 529 plan to save for college. This also happens to be one of the most popular ways to save.
  • Furthermore, there is also the option to choose a Coverdell Account.
  • Those who were not quite able to save the full amount can fill the gap with a student loan.
  • Finally, this type of savings plan is not covered by the FDIC, which means investors carry some risk.

Preparing for Life Changes

Although there are certain things we may wish to avoid, some things in life are inevitable. This is a division takes care of both. The following aspects can comfortably be prepared for:

  • Marriage, living together, and same-sex partnership.
  • Losing a loved one, elder care, and preparing for a baby.
  • Emergency funds, and surviving a layoff.

Wealth Protection

Things happen in life that could affect the ability to earn a living. When this happens, it’s important to have the right measures in place. Some of the aspects to consider, including life insurance coverage, worst case scenarios, sudden health changes, and more.

Estate Planning

When it comes to death, the discussions tend to be put off for a long time. However, it is important to get these things in place to ensure a legacy for future generations. This division takes care of wills, trusts, special needs trusts, and more.

Build the Investment Portfolio

This is a great way to get those investments off the ground and increase wealth. In this division, account managers and specialists assist with investment objectives, manage the investment portfolio, online investing, personal guidance from a financial advisor, personalize the financial plan, and have access to products and services.

Financial Literacy

Investors who need access to additional resources will find it here. This includes market insights, financial planning tools, and a financial education center.

Consumers should also take a look at the savings selection offered by Citibank.

What We Like About Citibank Investments

When it comes to investments, we would like to think that Citibank ticks all the boxes. When it comes to a range of different options, then yes, this bank leads the pack. Their investment division is carefully compartmentalized in order to provide investors with structure and order. Each compartment allows customers a glimpse of product categories for various life stages. This will allow investors to have a look at the different options and make their plans accordingly.

The investment options also clearly spell out the dangers of investments and that the funds are not protected by the FDIC. This is important for transparency. Furthermore, there are a number of helpful hints and tips on the website that steer clients in the right direction when it comes to making these decisions.

Finally, the investments are over various life stages which allow customers to prepare for all inevitabilities. This includes life events such as moving in together, going to college, retirement, and death. This allows customers access to all products in-house.

What We Don’t Like About Citibank Investments

Although there are a number of product categories, there is no real information on the actual products. For this, customers would need to see a financial advisor which makes these options a little less convenient than some of the other investments we’ve reviewed thus far.

Also, the website does not clearly state the important things customers need to know before they head out and invest. This includes pricing and product classes. There is a lot of information that can be shared, however, the customer will most likely only have the opportunity to have exposure to it during the meeting.

Critical Reviews Rating Citibank Investments – 8 of 10

Screenshot of Some Investment Planning Tools Citibank

Initially, when we saw the product range offered in this category, we were hoping that it would redeem the bank from some pretty low scores on the other products. This was not the case, as the range is extensive, but the bank seems tight lipped on the information. It’s important that customers are able to make an informed decision, however, this will have to wait for the appointment with the bank representative. Merely making a decision based on the information online will land customers in trouble.

The other aspect that we need to consider and remains a thorn for Citibank, is the lack of communication when it comes to pricing. This is a crucial deciding factor for customers and could cost the bank investments if this information is more readily available elsewhere.

Perfect reviews are tough in the investment category. See how National Bank of Abu Dhabi did in their investment review.