LGK Wealth Management's FAQ
At LGK Wealth Management we know that there are many questions surrounding investments, advisors, and the industry in general. We've compiled a list of frequently asked questions as well as some that we feel you should know the answers to. If you have any additional questions don't hesitate to contact our office. As always, we're here to answer your questions and to provide you with sound investment advice.
A financial advisor can assist you with creating a roadmap for your financial future that will help you to successfully accomplish goals such as:
- Saving an emergency fund
- Funding retirement account
- Saving for a wedding
- Purchasing a home
- Funding your child's education
- Taking a vacation
Additionally, Canadian's are living longer, more active lives as seniors and a financial advisor can assist you in planning your retirement by:
- Providing you with sound investment advice
- Building a comprehensive retirement plan
- Deciding when to convert your savings into income
- Deciding when to apply for government benefits
- Setting retirement goals tailored to you
- Creating a realistic retirement budget
- Determining your insurance needs
Many people try to manage finances themselves, but just like hiring a mechanic, it's peace of mind knowing that someone with proper training is looking out for you.
Although your banking institution may offer a similar service, it is likely that your investment portfolio will not be treated with the same degree of attention. Advisors at banking institutions tend to have a larger client base and are unable to monitor your portfolio needs as diligently as the advisors at LGK Wealth Management. Research is an integral part of our Portfolio Management process allowing us to create customized investment portfolios.
Here at LGK Wealth Management we provide expertise in a wide range of services which enables us to assist you through all life's stages. Whether opening an individual investment account, or preparing for retirement, our goal is to be an essential part of your life and the main point of consultation for all your life decisions.
Our approach is to look at the entire picture and not just manage the wealth you have accumulated. We implement a comprehensive and specialized approach to the Wealth Management planning process, and we are committed to remaining transparent and delivering a personalized service. We conduct business with integrity and provide recommendations that are best suited to your personal needs.
There is no ideal client type here at LGK Wealth Management, we service a variety of clients throughout the various financial stages of their lives. These include:
- Young investors who are becoming financially independent from their parents and looking to save for life's bigger transactions
- Investors who are in their family and career building years who want to purchase a house, life insurance and to grow their investment savings
- Investors who are in their pre-retirement years who want to pay off their mortgage and start planning for their retirement
- Investors who are currently retired and considering options for assisted living, estate planning and managing their savings to last
- Investors who own a private company with a surplus of wealth who are wanting to protect this wealth in order to transfer it to future generations
Your advisor at LGK Wealth Management is paid via trailing commissions.
These are fees associated with owning each fund in your investment portfolio. The fees and expenses a fund pays are deducted from the fund's assets before the returns are calculated and published. These fees are a percentage of the investment value and indicate how much a fund pays in management fees, operating expenses (including taxes) and to the fund company as well as in trailing commissions. Fund companies pay ongoing fees (known as trailing commissions or trailers) to the dealer for which your advisor is licensed with as long as you hold the fund.
Here's how a trailing commission works:
- A trailing commission is paid out of a fund's management fee; both the management expense ratio and trailing commission will be disclosed to you by your advisor when you purchase a fund. The management expense ratio and trailing commission will also be disclosed on the fund facts provided to you and in the fund's prospectus, published annually by the fund company
- A trailing commission typically ranges from 0.25% to 1.0% of the value of your investment each year
- The trailing commission is paid to the dealer your advisor is licensed with; the dealer then pays a portion of the trailing commission to your advisor. This is how your advisor is compensated for the services and advice they provide to you
- The trailing commission is reported annually on your year end statement
The expenses of each fund are determined by the mutual fund company based on the degree of research and travel associated with managing the fund. It is the role of the advisor to determine if the specific fund has achieved strong results, offers a low fee, and provides regular communication to the advisor on positioning of the fund.
Typically, you should see your advisor at least once a year for a financial progress review meeting. During these meetings your advisor will take the opportunity to review a summary of your investment & savings accounts, conduct a performance review of your investments, discuss insurance protection & banking strategies, as well as any other items you would like to discuss. However, when life changing events occur, such as marriage, purchasing a home, having a child, inheriting a large sum of money or retiring from your career, you should meet with your advisor so that they can help you navigate the financials of of these decisions. Furthermore, to ensure that they can continue to provide recommendations that are best suited to your needs.
Yes, our advisors are licensed to service clients any where within BC, Alberta, Saskatchewan, and Ontario. Just because you don't live in Edmonton doesn't mean we won't be able to provide you with quality products and services. Many of our clients prefer that we conduct their financial progress review meetings via phone or video conference rather than in person.
Yes, all necessary precautions are taken when dealing with client information. There are strict guidelines in place regarding this subject and LGK Wealth Management upholds these to the highest standard. Your information is never unnecessarily given out or used, and is always kept secure.
Although there are some minimum investment amounts associated with certain funds, there is no minimum account size to hold a portfolio with LGK Wealth Management. Often times smaller accounts belong to younger clients, these clients are the future of LGK Wealth Management and we serve them just the same as we would serve our largest clients.