• Families Caring for Loved Ones with Special Needs

• Working Professionals with Children

While our home base is Greensboro, NC, we meet with clients face-to-face in the Triad and Triangle areas, or connect virtually no matter where you call home.

Financial planning is a comprehensive process that involves assessing your current financial situation, identifying your financial goals, and developing a strategic plan to achieve those goals. It encompasses various aspects of personal finance, including budgeting, saving, investing, retirement planning, tax planning, insurance, and estate planning.

The primary purpose of financial planning is to help individuals and families make informed decisions about their money, ensuring that their resources are allocated effectively to meet their short-term and long-term financial objectives.

A special needs financial planner specializes in providing financial guidance and strategies tailored to the unique needs of individuals with disabilities and their families. They have expertise in a range of areas that go beyond traditional financial planning, including:  

1. Government Benefits:

• Deep understanding of SSI and Medicaid: They know the eligibility requirements, income and resource limits, and how different financial decisions can impact benefits.  

• Other programs: They are knowledgeable about other relevant programs like Social Security Disability Insurance (SSDI), Supplemental Nutrition Assistance Program (SNAP), and housing assistance.  

• Benefits optimization: They help families maximize benefits while staying compliant with regulations.  

2. Special Needs Trusts:

• Expertise in different trust types: They can explain the different types of special needs trusts (e.g., third-party, first-party), their purposes, and how to establish and administer them.  

• Preserving benefits: They ensure that trusts are structured to protect eligibility for government benefits.

• Tailoring to individual needs: They work with families to create trusts that meet the specific needs of the beneficiary.

3. ABLE Accounts:

• Understanding ABLE Act: They are well-versed in the Achieving a Better Life Experience (ABLE) Act, which allows tax-advantaged savings for people with disabilities.  

• Maximizing benefits: They advise on how to use ABLE accounts effectively without jeopardizing government benefits.

4. Long-Term Care Planning:

• Financial strategies: They help families plan for the long-term care costs associated with disabilities, including housing, medical expenses, and personal care.  

• Funding options: They explore various funding options, such as long-term care insurance, Medicaid waivers, and other resources.

5. Guardianship and Conservatorship:

• Legal considerations: They understand the legal aspects of guardianship and conservatorship and can help families navigate the process.

• Financial implications: They advise on the financial responsibilities of guardians and conservators.

6. Estate Planning:

• Preserving inheritance: They help families with estate planning to ensure that assets are passed on to loved ones with disabilities in a way that protects their benefits.  

• Legacy planning: They assist with creating a plan that provides for the individual's future needs and wishes.  

7. Financial Education and Advocacy:

• Empowering families: They provide financial education and counseling to families, empowering them to make informed decisions.  

• Advocacy: They may advocate for individuals and families in navigating complex systems and accessing resources.  

8. Collaboration:

• Interdisciplinary approach: They often collaborate with other professionals, such as attorneys, social workers, and healthcare providers, to provide comprehensive support.  

In essence, a special needs financial planner helps families navigate the complex intersection of disability, financial planning, and government benefits. They provide expert guidance to ensure the financial well-being and security of individuals with disabilities throughout their lives.  

Legs Financial is regulated as a fiduciary. A fiduciary is a person or organization that acts on behalf of another person or persons. They are legally and ethically bound to act in the other's best interests.

Fiduciaries are held to a high standard of care and must:

• Act in the client's best interest: This means prioritizing the client's financial well-being over their own potential gains.

• Avoid conflicts of interest: They must disclose any potential conflicts and take steps to mitigate them.

• Provide full and fair disclosure: They must be transparent about fees, risks, and any other relevant information.

• Act with prudence and care: They must make informed decisions and take reasonable steps to protect the client's assets.

If a fiduciary breaches their duty, they can be held liable for any resulting losses.

Fee-only refers to a compensation structure for financial advisors where they are paid directly by their clients for services rendered. They do not receive any commissions or other forms of compensation from third parties, such as investment companies or insurance providers.

A financial plan is like a roadmap for your financial future. It helps you navigate your finances, make informed decisions, and ultimately achieve your goals. Here are some key reasons why having a financial plan is essential:

1. Provides clarity and direction: A financial plan helps you identify your short-term and long-term financial goals, such as buying a house, saving for retirement, or paying for your children's education. It then outlines the steps you need to take to reach those goals, providing you with a clear direction and purpose for your financial decisions.

2. Helps you make informed decisions: By having a comprehensive understanding of your income, expenses, assets, and debts, you can make more informed decisions about your finances. This can include choosing the right investments, managing your debt, and planning for retirement.

3. Reduces financial stress: Knowing that you have a plan in place to achieve your financial goals can provide peace of mind and reduce financial stress. It can also help you avoid impulsive decisions that could negatively impact your financial future.

4. Prepares you for unexpected events: Life is full of uncertainties, such as job loss, illness, or natural disasters. A financial plan can help you prepare for these unexpected events by ensuring you have adequate savings and insurance coverage.

5. Optimizes your financial resources: A financial plan can help you identify areas where you can save money, reduce debt, and maximize your investments. This can ultimately lead to increased wealth and financial security.

6. Keeps you on track: Regularly reviewing and updating your financial plan can help you stay on track to achieve your goals. It can also help you identify and address any potential roadblocks that may arise along the way.

7. Helps you achieve your dreams: Whether it's buying a vacation home, starting a business, or traveling the world, a financial plan can help you turn your dreams into reality.

To create a comprehensive financial plan, you'll need to gather several key pieces of information and consider various factors. Here's a breakdown of what you'll need:

Financial Information:

• Income: Gather information about all sources of income, including salary, bonuses, investments, rental income, and any other sources.

• Expenses: Track your monthly and annual expenses, categorizing them into needs (housing, food, transportation) and wants (entertainment, dining out).

• Assets: List all your assets, such as bank accounts, investment accounts, real estate, vehicles, and other valuable possessions.

• Debts: Include all your debts, such as mortgages, car loans, student loans, credit card balances, and any other outstanding loans.

Financial Goals:

• Short-term goals: These are goals you want to achieve within the next 1-3 years, such as saving for a down payment on a house or paying off a credit card.

• Long-term goals: These are goals that are further out, such as retirement, college savings, or estate planning.

• Prioritize: Determine which goals are most important to you and prioritize them accordingly.

Risk Tolerance:

• Assess your comfort level with risk: How much volatility are you willing to tolerate in your investments? This will help determine the appropriate asset allocation for your portfolio.

Time Horizon:

• Consider your age and stage of life: Your time horizon will influence your investment choices. Younger investors with a longer time horizon can typically afford to take on more risk than older investors who are closer to retirement.

Additional Considerations:

• Tax situation: Understand your tax bracket and any potential deductions or credits you may be eligible for.

• Insurance coverage: Review your current insurance policies (life, health, disability, property) to ensure you have adequate protection.

• Estate planning: Consider creating a will or trust to ensure your assets are distributed according to your wishes.

While the terms "financial advisor" and "financial planner" are often used interchangeably, there are some key differences between the two roles:

Financial Advisor:

• Broader Scope: This is a general term that encompasses various professionals offering financial services, including investment advisors, brokers, insurance agents, and bankers.

• Investment Focus: They often focus on managing and growing your investments, providing guidance on asset allocation, portfolio management, and selecting suitable financial products.

• May Not Be Fiduciaries: Some financial advisors are fiduciaries, meaning they are legally obligated to act in your best interests, but others may operate under a suitability standard, which means they only need to recommend products that are suitable for your needs, not necessarily the best options.

• Compensation: They may be compensated through commissions on products sold, fees for services, or a combination of both.

Financial Planner:

• Specialized Focus: They specialize in creating comprehensive financial plans tailored to your specific goals and circumstances, considering your overall financial picture, not just investments.

• Holistic Approach: They consider all aspects of your financial life, including budgeting, saving, investing, retirement planning, tax planning, insurance, and estate planning.

• Often Fiduciaries: Many financial planners are Certified Financial Planners (CFPs), who are held to a fiduciary standard, meaning they must act in your best interests.

• Compensation: They typically charge fees for their services, either hourly, as a flat fee, or as a percentage of assets under management (AUM).

The frequency of meetings depends on several factors, including:

1. Your financial situation: If your finances are complex, have multiple goals, or are going through major changes (e.g., job change, inheritance, etc.), we may need to meet more frequently (monthly or quarterly). If your situation is relatively stable, a semi-annual meeting might suffice.

2. Your preferences: Some people prefer more frequent check-ins for reassurance and guidance, while others are comfortable with less frequent meetings.

3. Legs Financial's recommendations: LF can assess your specific needs and suggest a meeting schedule that works for you.

Generally, experts recommend meeting with your financial planner at least annually. This allows you to:

• Review your financial plan and ensure it's still aligned with your goals.

• Discuss any changes in your financial situation or goals.

• Reassess your risk tolerance and adjust your investments accordingly.

• Review your progress towards your goals and make any necessary adjustments.

Financial plans should ideally be reviewed and updated at least annually. This allows us to assess your progress towards your goals, make adjustments based on life changes or economic shifts, and ensure your plan remains relevant to your current situation.

However, there are situations where more frequent updates may be necessary:

• Significant life events: Major life changes like marriage, divorce, birth of a child, job change, or inheritance can significantly impact your financial situation and require adjustments to your plan.

• Market volatility: Significant fluctuations in the financial markets may necessitate revisiting your investment strategy and rebalancing your portfolio.

• Changes in financial goals: If your priorities or financial aspirations change, your plan should be updated accordingly.

Some people prefer to review their plans even more frequently, such as quarterly or semi-annually, to stay on top of their finances and make timely adjustments. Ultimately, the frequency of updates depends on your individual circumstances, preferences, and the complexity of your financial situation.

Legs Financial's investment philosophy provides clients with a simple, cost-effective, and diversified investment strategy that can help them achieve their financial goals over the long term.

• Passive Investing: This involves investing in index funds that track a specific market index (like the S&P 500) rather than trying to beat the market through active stock picking. The belief is that markets are efficient and it's difficult to consistently outperform them over the long term.

• Low-Cost Investing: Low cost mutual funds and ETFs can significantly impact long-term investment returns due to the compounding effect of fees. The philosophy emphasizes minimizing costs to maximize returns for clients.

• Diversification: Investing in a broad range of asset classes and securities can help spread risk and reduce volatility.

• Long-Term Focus: This philosophy emphasizes the importance of investing for the long term, rather than trying to time the market or chase short-term gains. It involves staying invested through market fluctuations and reaping the benefits of compounding returns over time.

• Evidence-Based Investing: Decisions are based on sound financial principles and empirical evidence, rather than emotions or market speculation. This involves regularly reviewing and rebalancing the portfolio to maintain the desired asset allocation and risk profile.

• Client-Centric Approach: Legs Financial puts the client's interests first, understanding their individual financial goals, risk tolerance, and time horizon. This ensures that the investment strategy is tailored to the client's specific needs and circumstances.

• Transparency and Education: Legs Financial communicates openly and honestly with clients, educating them about the investment process, risks, and potential returns. This empowers clients to make informed decisions about their financial future.

Asset allocation and asset location are two important concepts in investment management, but they serve different purposes:

Asset Allocation:

• Definition: The process of dividing your investments among different asset classes, such as stocks, bonds, and cash.

• Purpose: To manage risk and return by diversifying your portfolio. Different asset classes have varying risk and return profiles, so spreading your investments across different classes can help reduce the overall risk of your portfolio.

• Factors to consider: Your risk tolerance, time horizon, and financial goals.

• Example: Depending on their factors, an asset allocation for a retired investor might be 60% stocks, 30% bonds, and 10% cash.

Asset Location:

• Definition: The strategic placement of specific assets in different types of investment accounts (taxable, tax-deferred, or tax-free).

• Purpose: To minimize taxes and maximize after-tax returns. Different accounts have different tax treatments, so placing assets strategically can help reduce your tax liability.

• Factors to consider: The tax efficiency of different assets, your income tax bracket, and your investment time horizon.

• Example: Holding high-growth stocks in a tax-deferred retirement account to defer taxes on capital gains, while holding tax-exempt bonds in a taxable account.