WHAT IS YOUR BUSINESS MODEL?
In an independent business model, the investment professional (I.e.: Future Legacy), the Investment Firm, and the Custodian are all separate entities that work together to process a client’s financial transaction. Marika is licensed to act either as an Investment Advisor Representative (IAR) when conducting Fee Based business, or as a Registered Representative on Commission Based accounts. This is how it works:
Now, more than ever, a client wants “peace of mind”
when it comes to the safety of financial assets
(Marika Somorjai, dba Future Legacy)
... is an independent business owner who provides financial
guidance to her clients and in the case of Fee Based business she
receives a fee for either managing assets, giving advice or both,
and on Commission Based accounts she receives a commission
purchase a financial product.
Click HERE to upload the latest copy of our ADV form for full disclosure of our fees
(Cambridge Investment Research, Inc.)
... processes the business submitted by the Investment Professional and holds
responsibility for regulatory compliance and adherence to securities laws
(Pershing LLC and other selected firms)
... executes trades and provides clearing, custody and
other services for securities and related transactions
Mutual Funds, Managed accounts,
Stocks, Bonds, etc.
WHAT HAPPENS TO MY CHECKS I WRITE?
A: We do not keep your money -- your money is sent to the companies you have chosen or who’s product you purchase. They, in turn, buy Stocks, Bonds and other investments for you that are being held by them under your name and ownership. Even if the company goes under, you still retain the the ownership of your portfolio.
You will never write a check to Future Legacy or to Marika Somorjai – your checks are made payable to the company where your money is being invested or managed. They track the performance of your account and issue Portfolio Statements.
HOW DO YOU SAFEGUARD MY ASSETS?
Cambridge Investment Research, Inc., is an independent Broker/Dealer and is free to choose a non-affiliated Clearing Firm to provide the trade execution, clearing, custody and other related services for our clients. Clearing relationships are typical throughout the industry and allow us to focus on helping you achieve your goals while taking advantage of the Clearing Firm’s safeguards for the physical protection of your assets.
Securities regulations are designed to protect client’s funds and fully paid-for securities when they are in custody at a registered Broker/Dealer. The Securities Exchange Commission (SEC) is an agency of the US Government that oversees the Financial Industry Regulatory Authority (FINRA), which in turn oversees Broker/Dealers, Clearing Firms and your Financial Professional. Both the SEC and FINRA require members to comply with various rules intended to minimize the chance of financial failure and maximize the protection of your assets. The SEC also requires a registered Broker/Dealer to segregate fully paid-for investor-owned assets – meaning that if the Broker/Dealer fails, investor’s assets will remain safe, separate from the Broker/Dealer’s assets.
Client’s assets are protected by the Securities Investor Protection Act, which is administered by the Securities Investor Protection Corporation (SIPC). SIPC is a non-profit non-government, membership corporation funded by member Broker/Dealers. SIPC’s primary role is to return funds and securities to investors if the Broker/Dealer holding those assets becomes insolvent. SIPC does not insure against the rise and fall of the market but does insure your funds against theft, up to $500,000 in securities.
Visit SIPC’s web site at www.SIPC.org for more details.
INDEPENDENCE – OBJECTIVITY – INTEGRITY
In a profession based on objective advice, true independence offers many choices intended to benefit you, the client. Your choice of an Independent Financial Professional is the first step in getting unbiased recommendations and important guidance based directly on your needs and goals.
WHO IS AN INDEPENDENT FINANCIAL PROFESSIONAL?
Objective advice on achieving your financial goals may be best delivered by an Independent Financial Professional. Your Independent Financial Professional is not an employee of an investment of financial services firm – they are independent business owners. They have the freedom to structure their business in a manner that best serves their clients. Your Independent Financial Professional utilizes a Broker/Dealer (in our case Cambridge Investment Research, Inc.,) who provides services that include processing investment business, marketing assistance, practice management and education. In addition, a Broker/Dealer holds responsibility for regulatory compliance and adherence to securities laws.
WHAT IS AN INDEPENDENT BROKER/DEALER?
There are many different types of firms for a Financial Professional to consider in choosing a Broker/dealer. You may be familiar with Broker/Dealers that are subsidiaries of conglomerates such as commercial banks, investment banks and investment companies. An independent Broker/Dealer is different from such firms because they generally do not underwrite securities, they do not create research and they do not engage in investment banking.
Our association with an Independent Broker-Dealer (Cambridge Investment Research, Inc.,) allows us to offer unbiased investment advice and wide range of non-proprietary products, such as mutual funds or life insurances from outside providers.
HOW DO YOU KEEP RECORDS?
A: Most records are kept by the issuing companies and accessible by us through password protection. In many cases we can arrange direct on-line access for you to your own accounts. Privacy policies are given to you by each provider at the time the policies are made.
We also keep copies of your investment and insurance policies on record and offer to meet your heirs to introduce ourselves and to let them know where to find your financial records in case they are lost or forgotten. According to Met Life Insurance Co, more than one quarter of all life insurance policies are going un-claimed for those reasons.
WHY HAVE LIFE INSURANCE? – I DON'T BELIEVE IN THEM
A: We sell Life insurance as incidental to our Financial Planning Process and only when it is appropriate and needed. There are many reasons for using Life insurance in addition to protecting your family members in case of your premature death - it is used as an Estate Planning tool, in Salary Deferral Plans, in Business Succession, etc.
Government gives special tax treatment to life insurances – and not only because of the strong insurance lobby. It is better if an insurance company takes care of your family than the government, after you die. Therefore, they give special tax breaks such as tax free death benefit, tax free accumulation of the assets, etc. If for nothing else, this is good enough reason to take a closer look at them.
HOW LONG IT TAKES? – I AM TOO BUSY.
A: Most of the work is done by us at Future Legacy -- you only provide the necessary information, make decisions, and “come along for the ride”. We will explain the issues, show you alternatives, and help you understand the implications behind every decision you make.
Yes it takes a little of your time to lay out a financial plan but we challenge you to compare it to the time you spent at school to enhance your earning capacity and the time you spend at work.
Most people concentrate on making money rather than managing it. They fall into a vicious circle of paying bills then creating new ones that have to be paid off again. Thus, they have to keep working to provide for next day's spending or worse, to pay for items they bought on credit long time ago. A little planning could go a long way to prevent this treadmill of working and spending.
We are here to help you. Give us a call and use our one-hour complimentary consultation to see if there is any room to improve on your current financial situation
WHAT HAPPENS TO MY MONEY IF MARIKA DIES?
A: First of all, let’s hope that it won’t happen soon. But should she die, quit, or sell her business, the management of your assets will be handed over to one of our colleagues, or, at your option, back to you. Remember, we only managing your assets; your money is in stocks, bonds and other investments under your name and ownership at various investment firms - and that won’t change