Lenox Wealth Management is a relatively small financial advisor firm in Cincinnati, Ohio. The firm has a staff of just nine financial advisors. It works with only a few types of clients, mostly individuals. However, it still has about $552 million in assets under management (AUM). The firm offers a range of financial planning and investment management services, with a few different pricing plans that allow clients to receive only the services they need. Continue reading to learn more about the fee schedules, available services and investment strategies of Lenox Wealth Management.
Lenox Wealth Management Background
Lenox Wealth Management is an SEC-registered, fee-only financial advisor firm. It was founded in 2004 by John C. Lame, who continues to serve as CEO and as a wealth advisor. Lame is also a certified exit planning advisor (CEPA®).
The firm attempts to help its clients realize their goals without sacrificing fun and purpose in their lives. This is highlighted in the firm’s motto, Fund a Life You Love®. Lenox Wealth Management also emphasizes how it has given back to its community by donating to a number of local and national charitable organizations.
What Types of Clients Does Lenox Wealth Management Accept?
Lenox Wealth Management works mainly with individual investors. The firm’s clientele is rather evenly divided between those with a high net worth and those without a high net worth. The firm does also work with corporations and charitable organizations.
Lenox Wealth Management Minimum Account Sizes
There is no set minimum account requirement for clients of Lenox Wealth Management.
Services Offered by Lenox Wealth Management
Lenox Wealth Management offers a range of financial planning services. This includes helping clients through a number of common life situations like marriage, divorce and family planning. Advisors also work with clients on matters of investing and portfolio management.
The following list includes some services that advisors provide:
- Education planning
- Cash flow and management
- Charitable gifting strategies
- Insurance review
- Estate planning
- Benefits planning and review
- Marriage, family and divorce planning
- Long-term care planning
- Creating a personalized investment strategy
- Designing a portfolio and selecting assets
- Selecting other advisors (including private fund managers)
If the firm does not offer a specific service or product that you are looking for, it may also be able to refer you to another advisor. The firm maintains a network of third-party advisors.
Lenox Wealth Management Investment Philosophy
Working with a new client involves first understanding his or her time horizon, risk tolerance and investment objectives. Lenox Wealth Management also emphasizes helping clients to live their best lives. This means taking a more holistic approach that provides clients with peace of mind and the assistance to realize more than just their financial goals.
When deciding on which investments to use in a portfolio, the firm uses multiple methods of analysis. Fundamental analysis attempts to understand the intrinsic value of an asset. Advisors can then determine whether an asset’s price matches its value. Technical analysis takes a broader look at the markets to find patterns in asset prices and investor behavior.
Instead of focusing on the securities that make up a client portfolio, advisors look primarily to create an appropriate asset allocation. This includes a ratio of equity, fixed-income and cash that is personalized to each client’s goals and situation. Within those asset classes, advisors will use many types of investments, including exchange-traded funds (ETFs), mutual funds, certificates of deposit (CDs), variable life insurance, variable annuities and real estate investments.
Fees Under Lenox Wealth Management
The advisor fees that you pay with Lenox Wealth Management will depend on the services you receive. The firm offers three main service options. Clients can elect to receive financial planning, investment management or both. Just receiving financial planning will cost you the least and opting for the combined service will result in the highest fee.
With planning services, clients can also choose to work with an advisor strictly on an hourly basis. In general, the hourly charge for financial planning help ranges from $100 to $350 per hour. The exact cost will depend on the client’s individual situation. Before providing any services, an advisor will provide an estimate for the total hours that will be necessary.
Clients can also choose to work with an advisor continuously. In that case, the advisor will charge the client an asset-based fee. The amount of the fee is based on the client’s AUM and the exact services received. The table below outlines the fee schedule for different service options.
|Service Fee Schedules|
|Client Assets Under Management||Investment Management and Financial Guidance||Investment Management||Cost for Financial Guidance Only|
|$0 to $2 million||1.10%||0.85%||0.50%|
|More than $2 million and up to $5 million||0.90%||0.75%||0.40%|
|More than $5 million and up to $10 million||0.70%||0.65%||0.30%|
|More than $10 million||Negotiable|
If you are investing with Lenox Wealth Management, you will likely take part in a wrap fee program. This is a program where all of your investment and portfolio management costs are bundled into a single fee. Many wrap programs with the firm actually have clients working with a third-party advisor (also called a sub-manager). This advisor will be a part of Lenox Wealth Management’s network but will not actually be a part of the firm. This other advisor will also assess a management fee worth between 0.15% and 1.00% of your AUM.
The table below illustrates how Lenox Wealth Management’s fee schedule compares. The fee estimates in this table are for the combined service of investment management and financial planning with an advisor at the firm. Note that these fees are estimates and your exact fees may vary depending on various factors.
|Estimated Fee Comparison*|
|Your Assets||Lenox Wealth Management Investment Management and Financial Guidance||National Median Advisory Fees**|
|$1MM||$11,000||$8,500 - $10,000|
|$5MM||$49,000||$25,000 - $32,500|
|*Fee estimates only consider the maximum base fees for the services each firm provides. You may also pay manager fees and other fees, which can vary in amount. **All figures are based on median fee levels according to Bob Veres' 2017 Planning Profession Fee Survey. The above estimates solely take into account AUM-only fees. Total costs will likely be higher due to additional expenses.|
What to Watch Out For
Lenox Wealth Management may use a third-party advisor to manage client portfolios. The advisor will charge a fee in addition to the fees charged by Lenox Wealth Management. Make sure that you understand all of the fees associated with your account before you start working with an advisor.
In the past decade, Lenox Wealth Management and its personnel (CEO John C. Lame) have been subject to a disciplinary event. The Office of Thrift Supervision (OTS) made an inquiry into whether or not the firm had violated an OTS regulation in an unsuccessful proxy solicitation of shareholders of First Franklin Corporation in the spring of 2010.
The OTS believes that Lenox Wealth Management and Lame triggered a rebuttable presumption of control under 12 C.F.R. Sec. 574.4(b)(2)(i) without obtaining the prior approval of the OTS. The firm believes that it and Lame acted consistently with law and regulation and it followed the instructions of prior regulatory counsel in initiating and carrying out the proxy solicitation.
Opening an Account with Lenox Wealth Management
If you are considering opening an account with Lenox Wealth Management, you should schedule a call with the firm at (513) 618-7080. A 15-minute call should be enough time for you to get an idea of what kinds of services you need and how an advisor can help you. For those who aren’t quite ready to call, you can also reach out through the firm’s online contact form at fundalifeyoulove.com/contact.
Where Is Lenox Wealth Management Located?
The office of Lenox Wealth Management is in Cincinnati, Ohio, just off of I-71. This is the firm’s only office, though advisors may also work with clients in California, Florida, Illinois, Kentucky, Ohio and Texas.
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