“A true wealth management firm’s advice and knowledge go far beyond just managing an investment portfolio. It involves understanding the totality of their financial lives and every area of the balance sheet including business interests, real estate, as well as tax, entity types, insurance and estate planning structure.”
Legacy Capital was founded in 1977 by the late Frank McGehee and today is owned by partners Matt Jones and Jason Prather. The company focuses on offering holistic wealth management services to the affluent and ultra-affluent with a team service-oriented approach. Since the late 1990s, Legacy has grown into one of Arkansas’ most respected wealth management firms representing several of the state’s wealthiest families. They work with a limited number of clients which affords them the luxury of getting to know each of their clients personally and devoting whatever time is necessary to meet their needs.
Is there a difference between someone who offers investment advice
versus someone who truly does wealth management?
Yes, we believe many advisers call themselves wealth managers but are really more asset or investment managers. A true wealth management firm’s advice and knowledge go far beyond just managing an investment portfolio. It involves understanding the totality of their financial lives and every area of the balance sheet including business interests, real estate, as well as tax, entity types, insurance and estate planning structure. The breadth of advice is generally much greater from a true wealth management firm. This also requires more educated and skilled advisers which is why we have two attorneys (one with an LLM in tax), two CFPs, an FALU and many other professional designations on our team.
Does Legacy provide model portfolios in which most clients are invested?
No, Legacy works with approximately 85 families on the asset management side of our business and no two are invested the same. Every client and family is unique with different circumstances which require a customized approach to how we invest their capital.
What does it mean to be “independent”?
For us, it means not having any restrictions on the financial instruments, managers, funds and products we use for our clients. We believe the only way you can be truly independent is not be employed by a large national firm or wire-house, as those firms may limit your access to what is available or encourage their advisers towards a particular product the firm wishes to use. Legacy is an independent and locally run Registered Investment Advisor (RIA) with the SEC, and we custody our clients’ accounts at Charles Schwab. We make all investment decisions affecting our client’s capital locally and have fairly unlimited access to managers, funds and products.
Legacy was originally founded as a high-end life insurance firm. What differentiates this aspect of your practice from other insurance advisers?
We use life insurance products as a tool, only when appropriate, in order to help with managing a client’s wealth. Many people that sell life insurance tend to sell it as the best solution in every situation. Life insurance can be very complex, so we spend a great deal of time educating our clients, as well as their other advisers, on how the different products work so they can make an educated decision about which type of, if any, life insurance is purchased as a part of their overall plan. We have dedicated case design, underwriting and policy servicing resources as a part of our team.
Who is a typical client of Legacy’s insurance practice?
Although we have placed insurance on clients from 18 to over 80 years of age, our typical client is usually between 50-80 and is a successful entrepreneur that has significant wealth that is often highly illiquid. This creates a major planning issue at death to pay estate taxes. Many of our clients prefer to use life insurance to address this liquidity issue as it allows them to keep their capital invested in the business that made them wealthy. From a planning perspective, life insurance does something no other asset does for wealthy families, it provides them liquidity at the time they need it most – at death when estate taxes are due.
How does your insurance process lead to a better outcome for the client?
First, we do not work for or with any one particular life insurance company but have access to most of the top insurance carriers, which gives us true independence. Different carriers have different sweet spots, so it is important to have access to a wide variety of companies and product types. We also have a completely different process for medical underwriting (which is the biggest determinant of cost) than other insurance firms in our market. We have a full-time underwriter on staff who individually underwrites each of our life insurance cases. Because we have this internal underwriting resource, as well as access to all of the top carriers, it allows us to bring both advocacy and competition into the process for our clients which typically leads to the best results and lowest cost for our clients.
8315 Cantrell Rd., Ste. 200, Little Rock
Legacy Capital Wealth Partners, LLC is a Registered Investment Advisor with the SEC