For a PDF version, click here: Form CRS_The Legacy Financial Group_06-10-22
The Legacy Financial Group, LLC Relationship Summary June 10, 2022
We are The Legacy Financial Group, LLC (“Legacy”), an investment adviser registered with the Securities and Exchange Commission. Investment advisory and brokerage services and fees differ, and it is important for you to understand the differences. Free and simple tools are available to research firms and financial professionals at Investor.gov/CRS, which also provides educational materials about broker-dealers, investment advisers, and investing. Our firm and financial professionals’ registration information are also publicly available on the Investor.gov website.
Relationships & Services
Q: What investment services and advice can you provide me?
A: We offer customized investment advisory and financial planning services to retail investors. We offer advice on a full suite of securities described in Item 8 of our Form ADV Part 2A (“Disclosure Brochure”), including equities, fixed income, mutual funds, exchange-traded funds (“ETFs”), options, and similar investments. Our services are generally provided on a discretionary basis, which means that we have the power to buy and sell securities for your account without your prior consent. This authority is usually unlimited and remains in effect until you revoke it. We may provide non-discretionary investment advice, where we make investment recommendations to you and you decide whether to implement the recommendation.
Some securities carry additional costs, such as mutual funds and ETFs. We do not give advice on any proprietary investment products. We usually review portfolios at least annually. However, we do monitor accounts on a continuous basis and conduct ad hoc reviews if you change your objectives or risk tolerance, upon significant market and economic events, or if we change our investment strategy.
For Legacy Private Wealth Management, we require a minimum account size of $500,000 and a minimum annual fee of $10,000. For Legacy Portfolio Solutions, the minimum account size is $250,000. These minimums may be waived at our discretion.
Q: Given my financial situation, should I choose an investment advisory service? Why or why not?
A: Advisory services are usually appropriate when you have a portfolio of securities for which you require ongoing advice. Investors who maintain few securities holdings and are not inclined to make changes to their portfolio are likely best suited for a traditional brokerage account with a FINRA-registered firm.
Q: How will you choose investments to recommend to me?
A: We recommend investments based upon your individual circumstances, financial situation, expectation of current and future cash needs, investment objective, and risk tolerance. In addition, we attempt to identify those investments in which we expect to yield an acceptable level of return given the amount of risk you’re willing to assume, taking into account the level of diversification and how different securities and asset classes may complement one another.
Q: What is your relevant experience, including your licenses, education, and other qualifications?
A: Our financial advisors have been in the financial services industry for several years and maintain the Series 65 exam qualification or a professional designation accepted by the applicable state regulator. You can find information on any professional designations of your financial advisor in the Form ADV Part 2B (“Brochure Supplement”) we provide you at the onset of the advisory relationship.
Q: What do these qualifications mean?
A: These qualifications assure that our professionals have met specific regulatory exam requirements required to conduct investment activities (e.g., Series 65). In addition, professional certifications such as the CFP® require successful passing of the certification exam as well as rigorous continuing education requirements.
Fees, Costs, Conflicts & Standard of Conduct
Q: What fees will I pay?
A: Our quarterly fees are calculated as a percentage of the assets under our management, so our fees will rise and fall with the value of the assets we manage for you. As a result, we are economically incented to recommend that you place more assets in your account in order to increase the value of your portfolio, because as the value increases, so do our fees.
In addition to our fees, you will be charged transaction or asset-based fees by your custodian for its services. These fees vary depending on the custodian. Under a transaction fee arrangement, the more transactions effected in your account, the more fees you will pay, and high activity in your account does not assure positive portfolio performance. For custodians that charge their fees based upon a percentage of your assets, such fees may be more than would be the case if you are charged a transaction-based fee. Please be mindful of the effect of your portfolio size, the level of activity, and the rate of custodian asset-based pricing. Generally, large portfolios would be disadvantaged by paying an asset-based custodian fee versus a transaction-based fee. In addition to advisory and transaction fees, there are additional fees such as postage and handling, transfer taxes, SEC fees for sales of securities, and similar fees. These additional fees are not material, but like advisory fees and custodian fees, they do have an adverse impact on the value of your portfolio over time. Financial planning fees may be charged a fixed rate as agreed upon by you and the firm. You can find more information about our fees and costs under Item 5 of our Disclosure Brochure, available at Investor.gov/CRS.
Q: Help me understand how these fees and costs might affect my investments. If I give you $10,000 to invest, how much will go to fees and costs, and how much will be invested for me?
A: We charge asset-based fees, so our fees are calculated as a percentage of the value of your portfolio we manage. For example, a $10,000 investment at a 1% annual fee results in an annual deduction of $100 from your portfolio (meaning only $9,900 ends up invested). This means that it will take longer for you to realize positive returns than if no fees were charged. In this example, if you generated a 3% return, your net return would be 2%. Assuming nothing changes, it could take 18 months to realize a $300 return on your $10,000 investment.
You will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying.
Q: What are your legal obligations to me when acting as my investment adviser? How else does your firm make money and what conflicts of interest do you have?
A: When we act as your investment adviser, we have to act in your best interest and not put our interests ahead of yours. At the same time, the way we make money creates some conflicts of interest. You should understand and ask us about these conflicts, because they can affect the investment advice we provide. Here are some examples to help you understand what this means.
• Certain Legacy financial advisors engage in outside business activities, which can impede the amount of time spent managing client portfolios.
• Certain Legacy financial advisors are licensed to sell insurance, which creates conflicts of interest regarding compensation.
Q: How might your conflicts of interest affect me, and how will you address them?
A: Conflicts of interest can incentivize us to put our interests ahead of yours. We manage these conflicts through disclosures and employing supervision procedures to ensure our financial advisors are acting in your best interest. If a financial advisor has outside business activities, it will be disclosed in their Brochure Supplement. Please see Items 10, 11, and 14 of our Disclosure Brochure as well as your financial advisor’s Brochure Supplement for additional information about conflicts of interest.
Q: How do your financial professionals make money?
A: Our financial advisors are paid a percentage of the fees we collect from you. As a result, we are incentivized to recommend that you add additional assets to your account.
Q: Do you or your financial professionals have legal or disciplinary history?
A: No. You can visit Investor.gov/CRS for a free and simple search tool to research our firm and our financial professionals.
Q: Who is my primary contact person?
A: Your Legacy financial advisor will be your primary point of contact. However, administrative requests may be handled by an administrative assistant or client service professional.
Q: Is he or she a representative of an investment adviser or a broker-dealer?
A: None of our professionals are registered with a FINRA broker-dealer. All professionals are licensed with Legacy as investment adviser representatives.
Q: Who can I talk to if I have concerns about how this person is treating me?
A: In the event you have issues to be addressed, you may contact Mr. Kevin King at 918-665-0826 or by email to firstname.lastname@example.org.
You can find additional information about our investment advisory services at Investor.gov/CRS. You may also request a printed copy of this Client Relationship Summary by contacting us at 918-665-0826 or via email to email@example.com.