In Perspectives

Periods of market volatility such as we experienced in August and September often bring with them a chorus of advice, reminding investors to stick with their long-term strategy rather than to make rash, emotional decisions.  (In fact, I was one such chorister on this very blog.)  Now that markets have calmed somewhat in recent weeks, I thought this would be a good opportunity to revisit the process for laying out that long-term investment strategy in the first place, and the critical factors that should drive it.

Develop an Investment Policy

At Legacy Trust, we take a highly customized approach to developing investment plans.  Each individual or family that we work with has a unique set of financial circumstances and personal preferences that come into play, and what makes sense for one client may not be the right fit for another.  Accordingly, we work through a comprehensive discovery process with our clients to gather as much information as possible about their financial situation to guide us in making investment recommendations.

The process typically includes detailed discussion and data gathering on

  • goals and objectives
  • cash flow and liquidity needs
  • tax and legal considerations
  • tolerance of risk

The information gathered during the discovery process is summarized in a document called an Investment Policy Statement (IPS).  The IPS serves as a strategic roadmap for your portfolio by linking your personal financial situation to an appropriate investment implementation plan.  It establishes strategic asset allocation guidelines, identifies suitable investment classes and vehicles, and lays out risk and reward expectations that connect back to your specific needs.

Stay the Course

The key benefit to creating an IPS is that the process essentially forces you to think strategically about your needs, develop a plan, and put it down in writing, which can prove to be invaluable during times of stress.  It is only natural to want to react to market events as they occur, but referring back to your IPS can help you think through your actions in the context of your overall plan.  When the investment roller coaster has its ups and its downs, remember that your plan was put in place for a reason. More often than not, staying the course is the wisest choice. That being said, your IPS should be reviewed regularly, as your financial and personal goals do change over time.

If you have any questions about your Legacy Trust Investment Policy Statement, or if you are not yet a Legacy Trust client but are interested in learning more, please let us know.

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.

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