In Perspectives

lost-in-space-robot-2The evolution of technology over the past decade is drastically changing the landscape for advice-centered businesses.  Just look at how Travelocity has displaced the experienced travel agent and Zillow is fast becoming the realtor of choice for millennials.  And now those who peek into the future of financial services are warning that advisors must evolve their business models in order to compete with the emergence of online portfolio management platforms, commonly referred to as “Robo-Advisors.”

The principle behind Robo-Advisors is greater efficiency, lower cost and the consistency and objectivity in the advice driven by their algorithmic templates.  There is no doubt that this is quite appealing to the growing class of wealth accumulators who live online, utilize technology for almost every need and, thanks to vehicles like ETF’s, view investment solutions as mere commodities.

With almost thirty-five years in the wealth management field, I would agree that certain business models will soon be facing significant margin pressure from the emergence of the Robo-Advisors; especially those that are transaction centered or narrowly focused on proprietary research and security selection to “outguess the street.”

However, I do take exception to the notion that clients will also place a lesser value on holistic financial advice.  Extreme shifts in market valuations lead to undue euphoria or panic.  Tax and estate planning rules seem to be constantly changing, and generally speaking, life happens.

A value of the personal service advisory model, like that of Legacy Trust, will always be in the ability to demonstrate empathy (computers are indifferent to emotion), creativity of recommendations and agility to “think on your feet”.  Computers unfortunately must follow the code.

Each client’s goals and circumstances are unique and evolving.  They cannot be solved merely by impersonal algorithms.  The value associated with client trust and loyalty is when professional advisors demonstrate a thorough understanding of those unique dynamics and bring real world experience to recommended solutions.

Legacy Trust and Your Right to Financial Privacy

At Legacy Trust we have established policies and practices that respect the financial privacy of all individuals who use our trust company. We believe it is critical to comply with the laws and regulations designed to secure your financial privacy. Your relationship with us as our client is very important to us, and we want you to understand our policies and practices about handling your information.

This Policy applies to you – This Policy applies to our relationships with individual clients who inquire about or obtain products or services from us for personal, family and household purposes.

Strict security measures – We take the security of information very seriously. We have established security standards and procedures to prevent access to client information. We maintain physical, electronic and procedural safeguards to guard client information.

Limited employee access – We have established procedures to limit employee access to information to only those employees with a business reason for accessing such information. We educate our employees about the importance of confidentiality and client privacy. We take appropriate disciplinary measures to enforce employee responsibilities regarding client information.

Why we collect information – We collect information about you to:

  • accurately identify you;
  • protect and administer your records, accounts and funds;
  • help us design or improve our products and services;
  • understand your financial needs;
  • save you time when you apply for new products and services; offer you quality products and services; and comply with certain laws and regulations;

We collect information – We collect and maintain your personal information so that we can provide investment management and other services to you. The types and categories of information that we collect and maintain about you include:

  • Information we receive from you to open an account or provide investment advice or other services to you (such as your home address, social security number, telephone, financial information and investment objectives).
  • Information that we generate to service your account or from our transactions with you (such as account statements and other financial information).
  • Information on your transactions with nonaffiliated third parties.

We have established procedures so that the financial information we collect is accurate, current and complete. We are committed to work with you to promptly correct any inaccurate information.

Our selective sharing of information – In order for us to provide investment management and other services to you, we do disclose your personal information in very limited instances, which include:

  • Disclosures to nonaffiliated companies as permitted by law, including those who help us service your account (such as providing account information to brokers and custodians).
  • Other limited disclosures as permitted by law, for example, required reports to government entities.

We do not share your information with third parties for marketing purposes. We do not sell your information.

Former clients – If you end your relationship with us, we will continue to adhere to the privacy policies and practices described in this notice.


Important Information About Procedures For Opening A New Account

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account.

What this means for you: When you open an account, we will ask for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.

We apologize for any inconvenience this may cause; however, federal law prohibits us from waiving these requirements.

You are leaving the Legacy Trust website

Legacy Trust makes no representation concerning nor is it responsible for the quality, content, nature, or security of any hyperlinked site. This link is provided as a convenience and does not imply any investigation or endorsement of the site.


Do not send sensitive information over email. If you need to communicate sensitive information, please call us at 616.454.2852


The views expressed on Linkedin do not necessarily reflect the views of Legacy Trust