1. I’d like to meet with Legacy Wealth Management to discuss my financial plan. What is my next step?
We offer an initial meeting with our financial professionals, free of charge. This gives us a chance to meet you and understand your financial goals. In turn, we will share with you our financial planning process, portfolio management process, and our client service team approach. This meeting will help us determine if there is a good match between your financial planning and portfolio management needs, and Legacy’s offerings and services.
2. I have my portfolio at several other investment firms. What advantages are there to moving my portfolio to Legacy Wealth Management?
New clients often come to us with fragmented portfolios comprised of investments made over the years with no real long-term plan. While these investments seemed to be a good idea at the time, no one is watching or coordinating their overall portfolio to see if it truly supports or even coincides with their long-term objectives. Legacy will then help you consolidate these assets to simplify your financial life. In addition, Legacy will consider tax implications, estate implications, and tax efficiency of asset location (taxable vs. tax-deferred) as part of your strategy.
3. I have an account with a national brokerage house. How is Legacy Wealth Management different?
At Legacy, you will find a refreshingly different approach. We will spend a great deal of time listening to your financial goals, analyzing your portfolio, and gathering data to help construct your financial profile. As a result of being good listeners, we are able to make objective recommendations to create a portfolio that meets your long-term financial goals.
4. How is Legacy compensated?
Legacy is a “fee-only” registered investment advisor. As such, our firm does not receive commissions from other financial institutions for the recommendation or sale of any financial products; our services are unbiased, objective and solely based on our clients’ personal needs. All costs, fees, etc. are fully disclosed; there are no hidden or undisclosed fees, as with many brokerage accounts. Each client pays an annual fee based on the amount of assets under management, generally 1% or less.
5. I am recently widowed, and I am depending on my investments for income. Can you help?
The administration and settlement of an estate can be complex and confusing. We can work with you and your other professionals (attorney, CPA, and Insurance agent) to simplify this process. We can offer a widowed individual experienced guidance in managing his or her inheritance. We realize that the goal of the deceased was to provide for you in their absence, and at Legacy, we take great care in making sure that goal is met. Our greatest satisfaction is helping our clients through this challenging period.
6. How is Legacy Wealth Management different from other wealth management companies?
The key difference between Legacy and other wealth management firms is our philosophy that your investment portfolio is a piece of your overall financial plan; it does not stand alone. Investing your money without first understanding your long-term financial goals just doesn’t make sense to us. Our skilled, CFP® practitioners are experienced in listening to your goals, before making recommendations for your investment portfolio. We will assess the level of risk you are willing to take and create an investment portfolio that will match your comfort level. Legacy adds value by considering the tax impact, estate issues, and other financial planning factors so that your long-term wealth is maximized. Legacy takes pride in the depth of professionally-trained staff to provide this expertise and does not use a “cookie-cutter” approach when allocating your portfolio.
7. What qualities are unique to Legacy Wealth Management that I may not find at another investment firm?
Our firm’s philosophy is to be long-term investors, and therefore, we believe that frequent trading does not benefit our clients. Trading is done to keep your portfolio in balance with your financial plan and risk tolerance, or when a change in our asset allocation occurs. We focus on downside risk management in addition to returns, as we know our portfolios are positioned to produce strong returns if the market performs positively. Our portfolios are designed for steady growth over time; therefore, our clients will not experience the ultra-highs or ultra-lows of the market. Are we living up to our expectations? Our clients tell our story best. Not only have we enjoyed a 98% retention ratio (past 5 years for clients over our minimum), but most existing clients choose to make additional contributions.
8. Do you work with clients who live outside of the Memphis area?
More than 30% of our clients live more than two hours outside of the Memphis area. With continued improvements in technology and communications, we are able to work with clients who live throughout the United States. Regardless of where you live, we will manage your investment portfolio, speak with you frequently, and remain focused on your financial goals and objectives.
9. Can you establish a portfolio for my children?
At Legacy, we encourage our clients to have their family members included in the financial planning and portfolio management process. Oftentimes, children accumulate assets but are below our minimum account size. Because we firmly believe in the benefits of long-term relationships, we will include portfolio management for your children, and the fee structure mentioned in #4 may be applied to the total family’s account.
10. My bank is offering me a “free” financial plan. What is different about Legacy Wealth Management’s plan?
The old adage that “you get what you pay for” is very true in this case. The financial plan that you will receive as a client of our firm is both comprehensive and client specific. This means we do not use scripted and overly-simplified, prepackaged planning software often used by large financial institutions. Typically, these types of plans are ultimately used as sales tools to introduce clients to proprietary products. In most cases, the safest way to project long-term retirement security is to be as exact as possible in using facts and assumptions. We have seen simple plans that led to disastrous decisions and caused retired individuals to have to go back to work. Remember, at Legacy we do not sell financial products for commission.
11. Can you explain your team approach to managing a client’s account?
Each client is assigned to a client service team of at least four highly-trained financial professionals. On each team are a Director of Client Service and several CFP® practitioners. Working in conjunction with the directors are a Portfolio Manager who will monitor and balance the asset allocation of your portfolio and a Financial Planner who will spend the necessary time gathering the facts and will guide the team in building your financial plan. All members of your team are at your disposal whenever you need to contact them. Supporting the client service teams is our Investment Committee, which monitors fund performance, researches new funds, reviews investment decisions, etc. Other staff members provide direction in operations and compliance activities.