A Message from Legacy Wealth Management

March 25, 2020
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If an effort to keep you informed, we have compiled important information concerning our operational status and our investment strategy thoughts for managing the crisis.

Most importantly, our concern and thoughts go out to everyone who has been adversely affected by the novel coronavirus as the way we run our daily lives has changed for everyone for now. Below is an Operational update for LWM along with the thoughts and beliefs of our investment committee.

Operational Status of Legacy Wealth Management and our people.

On March 16th management executed our firm’s continuity plan. All of our firm employees and associates are following the CDC recommendation concerning social distancing and are working remotely. Our employees and associates have full access to a safeguarded communication system with layered authentication and encryption networks in order to ensure there will be no disruptions in our ability to keep constant communication with our Clients and Business Partners. Therefore, LWM is 100 % operational and standby to serve you. All of our custodians are also fully operation and are following CDC guidelines.

Deposits and Distributions

We are checking our mail daily and depositing client funds as received. We are processing distributions normally. If you want to wire transfer or deposit funds into your account, please contact our operations team or your Financial Advisor.

Current state of our Economy and Equity / Fixed Income markets

• The world-wide community is laser-beam focused on combating this virus. We have great confidence that our world’s brilliant scientists and medical professionals will conquer the coronavirus. The U.S. government and industry are combining their immense power in a public-private cooperative effort to end the coronavirus threat as soon as possible.

• Major U.S. banks are well capitalized, and the world-wide financial community is unified in its resolve to stabilize financial markets. Central bank intervention has helped financial plumbing

• The U.S. Federal Reserve is taking swift and meaningful action to expand liquidity. The Fed has already lowered its target for the federal funds rate to a range of 0% to 0.25% and injected $1.5 trillion into our financial system.

This is not a new stock or bond market paradigm:

• We do not believe current events should change how capital markets are analyzed or asset allocation strategies are developed. Attempting to time markets based on emotion is not a sound investment strategy. Utilizing known economic data is the best way to develop asset allocation strategies.

• There will likely be general earnings disruption in stocks as well as bond credit downgrades. This, along with other economic data, will need to be carefully evaluated to determine if asset allocation strategies should be modified. We will continue to monitor economic data and research guidance as actual data is released.

What should long-term investors do?

• For those of you currently retired and taking distributions from your Legacy I, II and III portfolios (Growth and Income, Income with Moderate Growth and Income with Capital Preservation portfolios) we have 40% or more of your accounts in fixed income or cash which will provide assets we can liquidate in order to not realize losses on stocks. We very careful to select the holdings that are flat or positive to liquidate during times of stress in an effort to not sell the distressed asset at the wrong time. Most of you have 5-10 years of these assets without ever having to sell out stock allocation at the wrong time.

• For clients that invest regularly or systematically, we recommend our clients continue to buy stocks and bonds. Both are on “sale.”. Terrible events, like the novel coronavirus also create opportunities for investors that are not systematically investing to begin dollar cost averaging into appropriate investment allocations. Such strategies are typically more effective in down or flat markets than in appreciating markets.

• Be patient, though it’s difficult to do in volatile times like we are experiencing.

• Don’t capitulate to institutional traders and short sellers. These traders often use adverse exogenous events to create mayhem and fear. In part, such trading attempts to scare retail investors out of their stock and stock mutual fund holdings. By scaring investors out of their stock holdings, traders try to create an opportunity for them to buy investors’ stocks cheaply.

We remind our clients and friends of the following consideration when investing for the long term.

• A well-designed asset allocation strategy can be the anchor for many successful investors. Our clients have established asset allocation strategies (for example, a strategy to diversify assets among stock, bond and cash). Our clients should be comfortable with both advancing and declining markets. Investors should review their asset allocation strategies with their financial advisors. As long as we have implemented the asset allocation strategy that you are comfortable with, then we shouldn’t let short-term stock and bond market fluctuations or investment manias change our long-term investment strategies – our clients should consider remaining anchored. It’s normal to lose money during various time periods when investing in stocks and bonds; this is part of the price that investors pay to try to potentially earn higher rates of return over the long haul than they might earn if they place money in investments that don’t fluctuate in value.

• Consider adding money to investment portfolios when they decline in value. Dollar cost averaging is a good approach to consider using to add money to the markets. Of course, no one can tell for sure when a market has reached bottom, and there is no guarantee that an investment will rise after a decline.

• Stay focused on long-term investment goals. Investors should monitor their investment results on a regular basis to determine if their long-term investment objectives are being met.

• Be disciplined and patient with investment strategies. Successful investing requires both discipline and patience.

We’ll continue to be in touch, providing updates and support during this time. As always, please feel free to contact your Financial Advisor or any of our team members at any time if you have questions or concerns. We are always here for you.

Best wishes for good health as we all work to get through this challenging time.

LWM Investment Committee


Important Disclosures


Securities and Advisory Services Offered Through LPL Financial, Member FINRA/SIPC. Investment Advice Offered Through LWM Advisory Services, LLC, A Registered Investment Advisor. Legacy Wealth Management and LWM Advisory Services, LLC Are Separate Entities from LPL Financial.


Dollar cost averaging involves continuous investment in securities regardless of fluctuation in price levels of such securities. An investor should consider their ability to continue purchasing through fluctuating price levels. Such a plan does not assure a profit and does not protect against loss in declining markets. Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.