Do you have a minimum investment amount?
Since we limit the number of client relationships we maintain, we cannot offer our services to everyone. Currently, our minimum investment amount is $250,000. Our typical household has closer to $500,000 under management but we reserve the right to work with anyone we feel is a good fit for what we do. Younger clients with high incomes but smaller investment balances are often a fit for Legacy Next. This platform features a more digital offering for clients with less sophisticated current needs, but a desire to connect with us so they have access to Legacy Financial Strategies when their needs change in the future.
What is a Registered Investment Advisor?
RIA firms are registered with the Securities and Exchange Commission or state securities regulators, and are subject to the Investment Advisers Act of 1940. Most importantly, they have a fiduciary duty to act in the best interest of their clients. Read more about the benefits of an RIA.
Where do we meet?
We meet most of our clients in our office because we have access to our technology and their account information. However, if you feel it is difficult to make it to our office because of scheduling or mobility issues we do have the ability to come to you at your work or home on a limited basis. We also utilize phone or web conferences for clients who prefer the convenience.
What does the initial consultation consist of?
The goal of the initial consultation is for us to get to know each other better. We will tell you more about what we do and how we work with clients. We’ll want to hear more about your situation, what you’re looking for in a financial advisor and why you’re interested in Legacy. We view our relationship as a partnership and want to make sure it will be a good one.
How does Legacy charge their fees?
Legacy charges either a percentage of assets under management for discretionary investment advisory services or a fixed annual or hourly fee for financial planning services, but rarely both. Annual planning fees are generally waived when assets under our management meet the minimum threshold. Our investment advisory fee structure is “tiered” and the fee percentage is reduced as the amount managed by Legacy increases. The rate starts at 1.75% annually and drops to as low as .75% on managed balances exceeding $2 million. Alternative arrangements are available for clients with unusually low or high complexity or for those who may have become clients when their previous firm was acquired by Legacy.
Legacy also offers non-discretionary investment advice for a fixed annual cost. An example of this might be a client who wants advice on their 401(k) investments. Legacy cannot log in to their account and place trades on a discretionary basis, but we can provide advice on how the client should allocate their account based on their objectives. For our time and research, these fees range from $250-$2,000 per year.
Legacy is a “fee only” Registered Investment Advisor. This means we cannot receive commissions. We don’t sell any products or receive compensation from any investment company or product. Our clients pay us directly. Fees can typically be withdrawn directly from a client’s investment account at an agreed upon frequency and rate.
What do I bring to the initial consultation?
You can bring whatever you feel comfortable sharing. Some people choose to bring income, asset and liability statements for us to better gauge their overall situation, while others just bring themselves. It’s up to you!
Is financial planning a one-time deal?
Absolutely not! We view the plan as a living, breathing thing that will change as your life changes. During our meetings, we work together to see how your financial plan needs to be updated depending on changing goals or circumstances in your life. In addition, as part of our financial planning service, you’ll have access to your own personal financial dashboard. This secure and private online platform links financial planning, investment management and cash management, allowing you access to all of your accounts anytime, anywhere. You can quickly review your holdings, track progress toward your goals, view spending habits and monitor cash flow.
How frequently do you meet with clients?
Each client household is evaluated on an individual basis to gauge how frequently they need a scheduled face-to-face meeting or phone call. We want to ensure there is adequate time to cover all of the issues that need discussion. At the end of each year we reevaluate meeting frequency to determine if meeting frequency needs to be adjusted.
Are scheduled meetings the only time we will have contact?
No. Our clients have access to us year-round and we’re happy to speak to you any time a question arises or a financial issue needs to be discussed.
Will you work with our CPA or attorney?
Of course! We are always willing and very much prefer to work with our clients’ financial, legal, and insurance professionals to make sure we’re not missing any opportunities. You might consider us the “General Contractor” when it comes to coordinating the efforts of your professional team.
Are you required to sell any products from any company?
As an independent Registered Investment Advisor, we don’t answer to a parent company. There is no pressure to sell any particular product, because in fact, Legacy doesn’t sell anything, other than our advice and guidance. Unlike a broker dealer, we don’t act as an agent in any client transactions. An analogy that clarifies our role for some: When you go to the suit store to buy a suit, the salesperson’s job is to find you a suit that fits. A good salesperson will find you a suit that fits AND looks good on you. However, ultimately, the salesperson’s goal is to sell as many suits as possible; the more expensive, the better, since that will determine their compensation. If you could bring a suit consultant with you to the store to overlook the transaction and be sure you were making a smart purchase, you would have to pay them, but it might give you confidence you were making wise decisions. That consultant would be a good analogy for what we do for our clients. We are paid for our guidance and expertise, but our pay isn’t determined by the type of mutual fund, security, or insurance policy (or brand of suit!) our client purchases. In the suit store analogy, the suit consultant acts as a fiduciary. Legacy‘s role is much the same for their clients.
Are all of your clients in town?
While the majority of our clients live in Kansas and Missouri, near our office in Leawood, we have clients all over the country. We remain in close contact through face to face meetings primarily, but also by teleconference and virtual meetings online.
Who can we expect to work with?
Most of our clients engage with one advisor for the majority of their meetings, however we utilize a team approach, which means multiple in-house experts are available to serve different needs. We find it helpful for clients to be familiar with multiple team members and for team members to be familiar with all client situations.
What custodians do you use?
Currently, we hold the majority of client assets at Charles Schwab Institutional. We also use Fidelity Investments for certain client situations. It’s important to note that we don’t work for these custodians. We’ve simply decided to use their platform to fulfill our investment management needs for clients.