Conforms to Investment Advisors: What You Need to Know before Choosing One published by the U.S. Securities and Exchange Commission.
What is your educational background?
Bachelor of Science--Degree in Speech and Secondary Ed.
Kansas State University.
Juris Doctorate (J.D.), Washburn University Law School.
Admitted to the Kansas Bar 1973
30 hours of qualified continuing education is required every two years in order to maintain the CFP® designation.
12 hours of qualified continuing education is required every two years in order to maintain my life insurance license.
What are your financial credentials, degrees, designations, and affiliations?
Juris Doctorate (J.D.), Washburn University Law School
Awarded Certified Financial Planner™ (CFP®) designation in 1987
Licensed Kansas Real Estate Broker (1979) (Inactive)
Series 7 & 63 (Stockbrokers) license by the SEC (inactive).
7 year Member, Board of Directors—Greater Kansas City chapter of Financial Planning Association (FPA).
30 year “heritage member” of the Financial Planning Association national organization.
Past Member, National advisory board on International Standards—Financial Planning Association
Past Member, National Self-Regulatory Organization Task Force—Financial Planning Association (FPA)
Past Member, National Committee on Professional Issues & Standards—Financial Planning Association (FPA)
Past Member, National Review Committee on Best Practices —Section 601 of the Pension Protection Act of 2006. (FPA)
How long have you been offering financial advisory services?
Since 2000 full-time. President of my own firm —2003-2014.
Do you have clients who would be willing to speak to me about your services?
Have you ever been cited by a professional or securities regulatory governing body for disciplinary reasons?
No securities infractions. My license to practice law was once suspended for several days for failing to pay my annual continuing education fees on time.
Describe your financial services work experience.
23 years full time.
- Host of a WIBW 580 Radio Talk Show; Financial Strategies for 5 years—(1987-1992)
- As an attorney, I drafted estate plans, wills and trusts for clients for 3 years. I am currently not practicing law.
- Brad T. Miller and Associates—financial planning and life insurance 1 ½ years
- Beecroft-Cole & Co. Investment Brokers—(later Piper-Jaffray) 1 ½ years
- Clayton Financial Services Inc. fee-only financial planning firm 6 ½ years
- Commerce Bank & Trust —Investment Division. Affiliated as vice-president for 3 years.
- Founded Peoples Wealth Management LLC an independently owned business in July of 2003.
- Peoples Wealth Management LLC merged with Legacy Financial Strategies LLC on January 1, 2015. I serve that firm as a representative and financial advisor.
What kind of clients do you work with?
I manage assets primarily for foundations, non-profit associations, retirees and pre-retirees. I intend to limit my personal practice to a select number of clients who meet my client profile.
Are you currently engaged in any other business, either as a sole proprietor, partner, officer, employee, trustee, and agent or otherwise?
I have a consulting business providing expert witness and case evaluation services to area law firms and their clients. I am an independently licensed insurance agent, registered in Kansas.
I serve as a non-compensated officer or committee member for several non-profit corporations as described in our Form ADV.
Will you or an associate of yours work with me?
If you become our client, I will meet with you personally on a scheduled basis. I will personally supervise and manage your account. Data storage and retrieval and day to day client paper work and client interfacing will be done by client relations manager Ruth Patterson.
How are you compensated?
Consulting is done on an hourly basis. Asset management and investment advisory services are provided on a fee for service basis.
Do you have an agreement describing your compensation and services that will be provided?
We are a fee for service consulting and asset management firm. Legacy Financial Strategies a registered investment advisory firm. A written agreement and a Form ADV and my amendment are provided to asset management clients.
What is your average client fee?
Our average asset management fee is 1.10% of assets (based on an average account size of $578,000). The percentage may be lower or higher based on the type of investment platform chosen. There may be additional charges such as custodial fees or trust services.
Do you have a minimum account size for your clients?
Yes. For individual clients we have a minimum of $250,000 in investable assets. For non-profit and charitable clients we have a minimum of $50,000. For endowments and foundations our minimum is $100,000. For TIAA-CREF clients our minimum is $100,000
Does any member of your investment advisory firm act as a general partner, participate in, or receive compensation from investments you may recommend?
Do you receive on-going income from any mutual funds that you recommend in the form of 12(b) 1 fees, trailing commissions, or other continuing payouts?
Are there financial incentives for you to recommend certain financial products?
We are technically a fee based firm meaning a portion of our income is generated from life insurance commissions, annuities, and long term care insurance. According to terms proscribed by the Certified Financial Planning Standards Board we are a fee and commissions firm. Commissions are fully disclosed to our clients and follow industry standards.
What services/advice would your clients expect to receive from you e.g. tax planning, investment review and planning, insurance needs, etc.
We are primarily investment advisors and managers. Our value-added advisory services will include an overview of many or all financial and tax considerations. However, we do not provide tax or legal advice to our clients. We work closely with, and value the services of, the legal, estates and tax professionals who serve our clients.
Will you provide a comprehensive written analysis and recommendations?
We believe in trying to make our clients better stewards of all of their assets. Our asset management clients and prospective clients receive detailed written proposals, situation reports and written investment policy statements.
Our services may include preparing written financial, retirement or estate plans. While these plans may be lengthy and detailed, they may not cover all elements necessary to be categorized as “comprehensive” financial plans under criteria developed by the Professional Standards Board for Certified Financial Planners.™
Will your financial/retirement planning services include recommendations for specific investments or investment products?
Our advice is detailed and it is specific to our clients. We recommend the services of specific custodians and service providers who accommodate our advisory services. See our disclosures regarding insurance products.
Do you offer assistance with implementation with the plan?
Yes. Financial and estate plans have little value if they are not implemented properly and monitored as part of our on-going client maintenance program.
Would you take custody of, or have access to, client assets?
No. All investment advisory client assets are maintained in custodial accounts with bona fide institutional trustees for safekeeping. We never have direct access to client assets or accounts.
If you offer continuous, on-going advice, do you require discretionary trading authority over the account?
Yes. We offer discretionary and non-discretionary account services. However all of our actively managed accounts require discretionary agreements
Are you a registered representative of any broker/dealer?
Are you a licensed insurance agent?
Yes. I do not represent any specific agency or product lines. I shop for products and rates from among insurance providers and brokers. I receive commissions from insurance companies for placing my client’s business. I am licensed by those providers at the time the insurance business is placed. Less than 5% of my current revenue comes from insurance products.
Are you a registered investment advisor with the SEC or the State of Kansas?
The Kansas Securities Commissioner’s office requires that investment advisors be properly licensed and registered as investment advisors. Legacy Financial Strategies LLC is a registered investment advisory firm regulated by the State of Kansas. I am properly licensed to provide investment advisory services through Legacy Financial Strategies LLC.
Are you a fiduciary?
Yes. The Registered Investment Advisors Act of 1940 confers a fiduciary obligation on Registered Investment Advisory firms and investment advisors acting on a discretionary basis or otherwise.
The canons of ethics for Certified Financial Planners® require certificants to act as a fiduciary in all financial planning engagements. I subscribe to these canons of ethics.