Twenty-Five Years In
As Legacy Capital enters its second quarter century, I reminisce on what was the inspiration to create Legacy Capital. There was an epiphany. A moment at a stoplight on my way home from my previous firm’s location in Stillwater, MN. The realization that if I wished to remain in wealth management, I needed a drastic change in my environment. The firm was acquired by a larger organization. The expectations of the acquiring firm did not align well with my client’s best interest. I needed to resign. It was a long time coming and a difficult and painful decision. I had it easy. I was a top producer at a regional firm and functioned as Options Principal. My decision to leave was final. I met with other firms. Each offered substantial signing bonuses and guaranteed salaries, more of the same.
What I wanted to build was not common at the time. My dream of “what if one built a client centric practice of advice that always put the client first?” While this practice is common now, the turn of the century was a time of greed in our industry. The dot.com bubble was leaking air, but had not yet burst. I remember those feelings I had at the previous firm, how it felt being told by the leadership, “While we are very happy with the amount of assets you manage and the clients you have brought us, you should be making us a lot more money from your relationships.” I remember how that sentiment angered me, how it challenged my integrity and duty of loyalty to those I served first. My clients, not their firm!! It challenged my core tenet that if you take care of your clients, they will take care of you! I remember the reaction on the CEO’s face when I told him that he could not write a check large enough to get me to stay, and that “my integrity could not be bought.” I remember his response. He told me that I did not understand how our industry worked and I would surely “crawl back” within a year. With a wife and three kids at home I nearly relented. Naturally, I was full of self-doubt and fear, but it was either leaving the industry I loved or building a practice that I believed in.
I knew the only choice I had was to go independent. This was not a common thing in the year 2000. Finding a partner that would give me the autonomy to build what I envisioned, as well as the patience to let me build it, was a formidable task. Fortunately, a small firm out of San Diego called Linsco Private Ledger, now LPL Financial, allowed me this opportunity. LPL has continued to prove to be the right partner, I have yet to find any encumbrances to my practice. The product, support, technology, and knowledge base continues to be among the best in the industry. It has been satisfying to be part of their growth as they have gone from around one thousand advisors to over 32,000 with assets exceeding $2.3 trillion.
Maximizing personal compensation and firm profitability was never my goal. Listening and learning from my clients to assist them in building a wealth plan to fit their unique set of circumstances was the driving force and where my passion lives still today. It is important to complete adequate due diligence to develop confidence in your investment selection, to know why and where it fits within your client’s portfolio. I will never jeopardize my integrity. This is a very slippery slope. When small infractions and exemptions become acceptable, soon larger ones will follow. The most important lesson I have learned is that the client’s long-term financial plan should lead the investment allocation, not follow it. Mistakes occur when the plan is not in the forefront. When reactionary decisions are made after the fact, this often leads to permanent wealth destruction. Building a financial plan that encompasses growth of wealth, lifetime tax efficiencies, long term income flow requirements, as well as estate and charitable plan considerations to ensure generational wealth is tantamount to comprehensive wealth management. Always consider the situation through the client’s lens.
The client’s long-term financial plan should lead the investment allocation, not follow it.
I am proud of what I have built and continue to build. I am excited about the legacy of the firm and those I surround myself with. I feel blessed that I get to learn everyday from those that I once taught. I am endlessly amazed and impressed by the quality of work, expansive knowledge, and passion my son Austin Boniface exhibits. (But you have heard that from me already.) I am delighted that Austin Bock has chosen to join our firm. His options were boundless, but he chose Legacy because he believes in the sentiment described above. His desire and passion for his client’s financial future will be well served by our little firm. While I certainly hope to be around for a couple more “quarter centuries,” if I am not, I am most thankful for the Legacy and success that will follow.
651-982-1115 · legacycapitalwealth.com
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. This material is not individualized investment advice. Please consult us about your specific situation.
Securities and advisory services offered through LPL Financial, a registered investment advisor, Member FINRA/SIPC. Legacy Capital Wealth Management and LPL Financial are separate entities.