Firm Description
ESSENTIAL PLANNING, LLC, formerly ANDREW LORD & CO. and ANDREW
C. LORD REGISTERED REP was founded in 1984.
ESSENTIAL PLANNING, LLC provides personalized confidential financial
planning and investment management to individuals, trusts and estates.
Advice is provided through consultation with the client and may include
determination of financial objectives, identification of financial problems, cash
flow management, tax planning, insurance planning, investment
management, education funding, retirement planning, and estate planning.
Investment advice and financial planning are integral parts of ESSENTIAL
PLANNING, LLC’s offering.
Investment advice is provided, with the client making the final decision on
investment selection. ESSENTIAL PLANNING, LLC does not act as a
custodian of client assets. The client always maintains asset control.
ESSENTIAL PLANNING, LLC may place trades for clients who have granted
the firm discretionary authority or under a limited power of attorney.
Evaluation of each client's initial situation is provided to the client, often in the
form of a financial “to do” list. Periodic reviews are also conducted from time to
time to provide reminders of the specific courses of action that need to be
taken. More frequent reviews occur but are not necessarily communicated to
the client unless immediate changes are recommended.
Other professionals (e.g., lawyers, accountants, insurance agents, etc.) are
engaged directly by the client on an as-needed basis. Conflicts of interest are
disclosed to the client wherever possible.
The initial meeting is free of charge and is considered an exploratory
interview to determine the extent to which financial planning and investment
management may be beneficial to the client.
Principal Owners
Andrew C. Lord is a 100 % stockholder.
Types of Advisory Services
ESSENTIAL PLANNING, LLC provides investment supervisory services, also
known as asset management services; manages investment advisory
accounts not involving investment supervisory services; furnishes investment
advice through consultations; issues reports about securities in writing or
other devices which clients may use to evaluate securities.
On more than an occasional basis, ESSENTIAL PLANNING, LLC furnishes
advice to clients on matters not involving securities, such as financial
planning matters, taxation issues, and trust services that often include estate
planning. As of 12/31/2023 ESSENTIAL PLANNING, LLC manages
approximately $378,634,000 assets for approximately 513 clients.
$378,634,000 is managed on a discretionary basis.
Tailored Relationships
The goals and objectives for each client are documented in our client
relationship management system. Investment policies reflect the clients
stated goals and objectives. Clients may impose restrictions on investing
in certain securities or types of securities. Agreements may not be
assigned without written consent.
Types of Agreements
The following agreements define the typical client relationships:
Financial Planning Agreement
A financial plan is designed to help the client with aspects of financial
planning without ongoing investment management after the financial plan is
completed.
The financial plan may include, but is not limited to: a net worth statement; a
cash flow statement; a review of investment accounts including reviewing
asset allocation and providing repositioning recommendations; strategic tax
planning; a review of retirement accounts and plans including
recommendations; a review of insurance policies and recommendations for
changes, if necessary; one or more retirement scenarios; estate planning
review and recommendations; and education planning with funding
recommendations.
Detailed investment advice and specific recommendations are provided as
part of a financial plan. Implementation and methodology of implementation
of the recommendation are directed by the client.
The fee for a financial plan is predicated upon the facts known at the start of the
engagement. Since financial planning is a discovery process, situations occur
wherein the client is unaware of certain financial exposures or predicaments. In
the event that the client’s situation is substantially different than disclosed at the
initial meeting, a revised fee will be provided for mutual agreement. The client
must approve the change of scope in advance of the additional work being
performed when a fee increase is necessary.
After delivery of a financial plan, future face-to-face meetings may be
scheduled as necessary. Follow-up implementation work may be billed
separately.
Advisory Service Agreement
Most clients choose to have ESSENTIAL PLANNING, LLC manage their
assets in order to obtain ongoing in-depth advice and consulting. Many
aspects of the client’s financial affairs are often reviewed, including those of
their children. Realistic and measurable goals are set and strategies to reach
those goals are discussed. As goals and objectives change over time,
suggestions are made and implemented on an ongoing basis.
The scope of work and fee for an Advisory Service Agreement is provided to
the client in writing upon the start of the relationship. An Advisory Service
Agreement may include cash flow management; insurance review;
investment management (not including performance reporting); education
planning; retirement planning; estate planning; and tax planning, as well as
the implementation of recommendations within each area.
Although
the Advisory Service Agreement is an ongoing agreement and
constant adjustments are required, the length of service to the client is at the
client’s discretion. The client or the investment manager may terminate an
Agreement by written notice to the other party. At termination, fees will be
billed on a pro rata basis for the portion of the quarter completed. The
portfolio value at the completion of the prior full billing quarter is used as the
basis for the fee computation, adjusted for the number of days during the
billing quarter prior to termination.
Retainer Agreement
In some circumstances, a flat retainer is executed as part of an Advisory
Service Agreement when it is more appropriate to work on a fixed- fee
basis.
Asset Management
Assets are invested primarily in no-load or low-load mutual funds and
exchange-traded funds, usually through discount brokers or fund
companies. Fund companies charge each fund shareholder an
investment management fee that is disclosed in the fund prospectus.
Brokerages may charge a transaction fee for the purchase of some
funds.
Stocks and bonds may be purchased or sold through a brokerage account
when appropriate. The brokerage firm charges a fee for stock and bond
trades. ESSENTIAL PLANNING, LLC does not receive compensation
from custodians or fund companies other than in the form of research
offerings (soft dollars).
Investments may also include equities (stocks), warrants, corporate
debt securities, commercial paper, certificates of deposit, municipal
securities, investment company securities (variable life insurance,
variable annuities, and mutual funds shares), U. S. government
securities and interests in partnerships.
Initial public offerings (IPOs) are not available through ESSENTIAL
PLANNING, LLC.
Unaffiliated Wrap Program
ESSENTIAL PLANNING, LLC does not offer a wrap fee program for its
investment advisory services. However, ESSENTIAL PLANNING, LLC
is a participating investment adviser in an unaffiliated wrap and
managed account fee program sponsored by Valmark Advisers, Inc. (the
“Valmark Program”). Through the Valmark Program, client assets are
allocated to an unaffiliated third-party investment manager. The third-
party investment manager, then, retains day-to-day responsibility for the
discretionary management of the allocated assets. ESSENTIAL
PLANNING, LLC continues to render investment supervisory services to
the client relative to the ongoing monitoring and review of account
performance, asset allocation and client investment objectives.
Under the Valmark Program, clients pay a wrap fee directly to the wrap
fee program sponsor, which wrap fee includes our investment advisory
fee, investment management fees attributable to the third-party
investment manager, the execution of securities brokerage transactions,
custody and reporting services. The third-party investment manager
then remits a portion of the total fee to ESSENTIAL PLANNING, LLC.
The client is under no obligation to participate in the Valmark Program.
Participation in the Valmark Program may cost the participant more or
less than purchasing such services separately.
Termination of Agreement
A Client may terminate any of the aforementioned agreements at any time
by notifying ESSENTIAL PLANNING, LLC and paying the rate for the
time spent on the investment advisory engagement prior to notification of
termination. If the client made an advance payment, ESSENTIAL
PLANNING, LLC will refund any unearned portion of the advance
payment.
ESSENTIAL PLANNING, LLC may terminate any of the aforementioned
agreements at any time by notifying the client. in writing. If the client made
an advance payment, ESSENTIAL PLANNING, LLC will refund any
unearned portion of the advance payment.
Retirement Rollovers-Potential for Conflict of Interest
A client or prospective client leaving an employer typically has four options
regarding an existing retirement plan (and may engage in a combination of
these options): (i) leave the money in the former employer’s plan, if
permitted, (ii) roll over the assets to the new employer’s plan, if one is
available and rollovers are permitted, (iii) roll over to an Individual
Retirement Account (“IRA”), or (iv) cash out the account value (which
could, depending upon the client’s age, result in adverse tax
consequences). If Essential Planning recommends that a client roll over
their retirement plan assets into an account to be managed by Essential
Planning, such a recommendation creates a conflict of interest if Essential
Planning will earn new (or increase its current) compensation as a result of
the rollover. If Essential Planning provides a recommendation as to
whether a client should engage in a rollover or not (whether it is from an
employer’s plan or an existing IRA), Essential Planning is acting as a
fiduciary within the meaning of Title I of the Employee Retirement Income
Security Act and/or the Internal Revenue Code, as applicable, which are
laws governing retirement accounts. No client is under any obligation
to roll over retirement plan assets to an account managed by
Essential Planning, whether it is from an employer’s plan or an
existing IRA. Essential Planning’s Chief Compliance Officer, Andrew
Lord, remains available to address any questions that a client or
prospective client may have regarding the potential for conflict of
interest presented by such rollover recommendation.