ADVISORY FIRM
Legacy Financial Advisors, Inc., a Kentucky corporation (“Legacy” or the “Firm”), was formed in 2006 and
began conducting advisory business as an independent registered investment adviser in 2011. Michael J.
Maisel, Paul A. Sartori, and P. Trent Lucas are the principal owners of Legacy.
Legacy seeks to serve its goal of assisting and advising its clients in each and every aspect of their financial
lives. We specialize in investments, estate planning, and risk management services. Our purpose as an
independent financial services firm is to provide goal oriented financial guidance to individuals, families,
closely held businesses, pension plans, profit sharing plans, estates, trusts, charitable organizations,
corporations, and other business entities.
This Disclosure Brochure describes the business of Legacy. Certain sections will also describe the activities
of Supervised Persons. Supervised Persons are any of Legacy’s officers, partners, directors (or other persons
occupying a similar status or performing similar functions), or employees, or any other person who provides
investment advice on Legacy’s behalf and is subject to the firm’s supervision or control.
FINANCIAL PLANNING SERVICES
Legacy’s financial planning strategy is a proprietary process tailored to meet and act upon a client’s unique
life and financial expectations. Legacy will help clients identify and define the key financial goals that are
important to them, their family, and their business. Legacy will then evaluate the client’s present financial
arrangements and their capacity to achieve the client’s goals and will develop and present the client with a
tailored financial plan. As part of this process, Legacy may address the following planning issues:
Estate Planning (Conservation and Distribution)
Analyze present estate distribution plan. Determine the effectiveness of the client’s present plan
and recommend changes as needed.
Illustrate alternatives that may reduce or eliminate estate taxes.
Discuss asset management assistance needs for the client’s family and illustrate how management
flexibility can be made available to the client’s family.
Illustrate the economics of the options available to pay estate taxes.
Establish procedures to help reduce administrative costs of estate settlement.
Discuss coordination of annual exclusion and unified credit gifting programs.
Review existing life insurance contracts. Focus on ownership and beneficiary designation of
contracts. Evaluate the cost/benefit relationship of the client’s existing contracts. Determine
whether contracts will avoid estate taxation.
Evaluate the sources of income for the client’s survivors to confirm that adequate income appears
to be available.
Retirement Planning
Analyze the client’s present retirement plans, including company sponsored profit sharing, 401(k)
and pension plans or self-employed arrangements and how they help meet the client’s projected
retirement needs.
Determine whether the client’s resources will be sufficient to fund the desired level of retirement.
Identify additional retirement planning opportunities where appropriate.
Evaluate whether or not the taxes on qualified plan distributions may be an issue.
Determine whether or not the client’s retirement objectives are attainable in the event of a long
term disability or long term convalescent stay.
Investment Planning
Evaluate current investment strategy in relation to the client’s objectives and personal risk
tolerance and recommend reallocation of monies as needed.
Identify and discuss alternatives to help reduce income tax liabilities, as they relate to the client’s
investments.
Develop a personal cash flow statement to anticipate future cash flow needs and identify the
capacity for future wealth accumulation.
Assist in developing a comprehensive asset allocation and marketplace diversification strategy that
is tailored to client’s specific objectives.
Establish a management policy for the implementation of the client’s investment strategy.
Ensure coordination of the client’s investment plan with the remainder of the client’s financial
planning.
The above described financial planning services can be provided on a stand-alone basis in which case
Legacy will simply provide the client with a financial plan, or together with Legacy’s advisory services
described below. That is, if a client decides to implement the financial plan, Legacy can assist in the
implementation process as discussed below.
In addition, Legacy does not provide legal, accounting, or tax advice. In reviewing the estate planning
information listed above, Legacy seeks to work with the legal, accounting, and/or tax advisor(s) of the client.
If a client requests, Legacy may recommend lawyers, accountants, tax advisors, and/or other professionals.
Clients are under no obligation to follow Legacy’s recommendations or to engage the services of any of these
professionals. If a client does engage any of these recommended professionals, and a dispute occurs, the client
agrees to seek recourse exclusively from the professional they have directly engaged.
Use of Independent Managers
Legacy may recommend that certain clients authorize the active discretionary management of a portion of
their assets by and/or among certain independent investment managers (“Independent Managers”), based
upon the stated investment objectives of the client. The terms and conditions under which the client engages
the Independent Managers are set forth in a separate
written agreement between the firm or the client and the
designated Independent Managers. We will render services to the client relative to the discretionary selection
of Independent Managers. Legacy also monitors and reviews the account performance and the client’s
investment objectives.
When recommending or selecting an Independent Manager for a client, Legacy reviews information about the
Independent Manager such as its disclosure brochure and/or material supplied by the Independent Manager or
independent third parties for a description of the Independent Manager’s investment strategies, past
performance and risk results to the extent available. Factors that Legacy considers in recommending an
Independent Manager include the client’s stated investment objectives, management style, performance,
reputation, financial strength, reporting, pricing, and research.
In addition to the firm’s written disclosure brochure, the client also receives the written disclosure brochure
of the designated Independent Managers. Certain Independent Managers may impose more restrictive
account requirements and varying billing practices than Legacy. In such instances, Legacy may alter its
corresponding account requirements and/or billing practices to accommodate those of the Independent
Managers.
TAILORED ADVISORY SERVICES
Legacy portfolio allocation strategy is aided by diversification, tax management, and the inherent risk-
reward characteristics of portfolio construction. Within the discretion of Legacy, and subject to such factors
as the amount of client assets that a client maintains for advisory services by Legacy, a client who engages
Legacy to provide advisory services may receive, as part of the advisory services, some or all of the financial
planning services described above.
Legacy’s portfolio allocation strategy begins by identifying the client’s objectives and intentions for the
client’s investable assets and personal finances. Through this process, Legacy is able to identify and
reasonably quantify the client’s risk tolerance and risk capacity through a qualitative and quantitative
approach. Legacy will determine an asset allocation and set aside the client’s known capital and liquidity
needs in a “capital preservation portfolio” and will direct the remainder of a client’s portfolio assets to a
“growth portfolio” where they will be invested in securities that are intended to provide long-term capital
appreciation potential and diversification. Sub-portfolios within the growth portfolio are (1) growth equity, (2)
tactical, and (3) alternatives. Legacy’s asset allocation strategy will use a combination of these investment
classes, each of which is described in more detail in Item 8 of this Brochure, based on the client’s return
expectations and risk tolerance.
TYPES OF INVESTMENT AND CLIENT RESTRICTIONS
Legacy offers advice on a broad range of investment options, including but not limited to, equity securities,
corporate debt securities, commercial paper, certificates of deposit, money market funds, savings accounts,
U.S. Treasury bills, mutual funds, exchange traded funds and other investment company securities, real estate
investment trusts, master limited partnerships, and other publicly traded pooled investment vehicles.
A client may impose reasonable restrictions on the management of the client’s account, including the
designation of specific securities or a specific category of securities that should not be purchased for the
account or that should be sold if held in the account, and may reasonably modify such restrictions from time to
time. Legacy will evaluate requested restrictions and make a determination of whether Legacy is willing or
able to accommodate such a request.
PLAN PARTICIPANT ACCOUNT MANAGEMENT
We use a third party platform to facilitate management of held away assets such as defined contribution
plan participant accounts, with discretion. The platform allows us to avoid being considered to have
custody of client funds since we do not have direct access to client log-in credentials to affect trades. We
are not affiliated with the platform in any way and receive no compensation from them for using their
platform. A link will be provided to the client allowing them to connect an account(s) to the platform. Once
client account(s) is connected to the platform, Legacy will review the current account allocations. When
deemed necessary, Legacy will rebalance the account considering client investment goals and risk
tolerance, and any change in allocations will consider current economic and market trends. The goal is to
improve account performance over time, minimize loss during difficult markets, and manage internal fees
that harm account performance. Client account(s) will be reviewed at least quarterly and allocation changes
will be made as deemed necessary.
ERISA DISCLOSURE FOR RETIREMENT PLANNING
When Legacy provides investment advice to you regarding your retirement plan account or individual
retirement account, Legacy is 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. The way Legacy makes money creates some conflicts with your interests, so Legacy operates
under a special rule that requires Legacy to act in your best interest and not put our interest ahead of yours.
ASSETS UNDER MANAGEMENT
As of December 31, 2023, Legacy had $1,125,634,228 in assets under management, all of which was managed
on a discretionary basis.