Financial Legacy Management   
Financial Planning, Portfolio Management,
Retirement Plan Management

"
The only financial resource you'll ever need"
                     Retirement Plan Services  
                   401(k) Profit Sharing and Pension Plan Services


Our Philosophy

Expenses can decimate an investment portfolio. Some fees are necessary to receive
financial advice, but most people do not know all of the expenses that their portfolio is
being charged. For example, do you know what mutual fund sales loads, 12b-1 fees,
trading costs, mutual fund management expenses, and extra taxation costs as a result of
excessive trading that you pay annually. These fees can easily subtract 3% yearly from a
portfolio. Therefore, if your portfolio had an average return of 8%, you would only receive
around 5% after fees, expenses, and taxes. On a $100,000 portfolio, this would be the
difference between having $684,848 and $338,635 after 25 years.

Most of these excess fees are a result of advisors trying to find the next Microsoft or Dell.
The sad thing is, none of these extra fees have a positive relationship with investment
returns. As a matter of fact, a professional study was conducted and it found that 95% of
all investment returns can be explained by asset class selection (such as whether you
were in large-cap stocks, small-cap stocks, bonds, real estate, etc.). That means less than
5% of your returns are dependent on those expenses for which most people are
overpaying. We try to minimize expenses from trading or mutual funds; and we analyze the
tax consequences of any transactions that we make.

Our philosophy is different. We spend our time concerned with trying to find the right
asset class mix to maximize your return and minimize your risk. Our approach is based on
Nobel Prize winning research (not by us!) modern portfolio theory, which states that there
is an efficient mix of assets for any given risk level. We spend our time trying to find the
most efficient asset classes for your portfolio.

The objective of these services is to help companies implement 401K Profit Sharing and
Pension Plans for the employer and employees.  We do this by:

  • Providing help in choosing the correct plan for your business.
  • Collaborating with an attorney to develop the Summary Plan Description with the    
    appropriate parameters for you and your employees.
  • Collaborating with a pension plan administrator to coordinate individual account
    balances and compliance of the plan with the IRS.
  • Providing education sessions for you and your employees on the benefits and
    specifics of the plan.
  • Conducting enrollment sessions with you and your employees.
  • Quarterly Reporting on all assets and performance of entire portfolio.
  • IPS creation and updates when needed.
  • Investment Decisions and Due Diligence.
  • Account Maintenance (opening accounts, wire transfers, etc.).
  • Rebalancing your investment portfolio as you add cash or as the market fluctuates.
  • Tracking progress towards your goals.
  • Buying and selling assets as needed.
  • Setting up automatic investments/withdrawals from your investment accounts.

All of our services are billed as a percentage of assets under management. Again, all
compensation comes from you. This eliminates all of the hidden expenses that can be
associated with investment managers as mentioned on the beginning of this section. The
fee will be drafted from your investment account at the beginning of each quarter, based
on market value of the investment assets at the end of the previous quarter. The minimum
fee for any quarter is $250. The fees will be calculated as follows:


Advisory Fee Structure

1.0% on the first $1,000,000 of assets.

0.8% on assets over $1,000,000                 

To paraphrase Warren Buffett and Charlie Munger –
The wise investors bet heavily
when the world offers them that opportunity. They bet big when they have the odds.
And the rest of the time, they don't. Wait for the FAT PITCH. You don't get paid for
activity. You get paid for being right.
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