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Lexington Wealth Management Review

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Lexington Wealth Management

Lexington Wealth Management is a financial advisor firm located in Lexington, Massachusetts with roughly $960 million in assets under management. The firm works with individuals (including high net worth individuals), and it also works with pension plans, charitable organizations and corporations.

Lexington Wealth Management was founded in 2000 by Michael Tucci and Kristine Porcaro, who now serve as CEO and president, respectively. The firm offers both investment management and financial planning services to approximately 330 clients.

Lexington Wealth Management Background

Lexington Wealth Management was founded by Michael Tucci and Kristine Porcaro in 2000. Tucci, a CPA, had previously founded his own CPA firm, but shifted into the world of investment advice after becoming a certified investment management analyst (CIMA). Porcaro had founded Lexington Advisors in 1997, and the two joined forces to create Lexington Wealth Management three years later.

What Types of Clients Does Lexington Wealth Management Accept?

Lexington Wealth Management works with approximately 330 clients including individuals, high net worth individuals, pension and profit sharing plans, charitable organizations and corporations.

Lexington Wealth Management Minimum Account Sizes

Lexington doesn’t have a minimum account size. However, it does typically require a minimum quarterly fee of $2,500 for its services. So, if your account is smaller than $250,000, then you’ll wind up paying more than the 1% fee that you otherwise would for investment management services. 

Services Offered by Lexington Wealth Management

Lexington Wealth Management offers a fairly wide range of services to its clients. These can include:

  • Financial planning
    • Life planning
    • Business planning
    • Retirement planning
    • Net worth-cash flow forecasting
    • Risk management
    • Trust and estate planning
    • Financial reporting
    • Insurance planning
    • Divorce planning
  • Investment management
    • Portfolio analysis
    • Investment policy statements
  • Consulting services

Lexington Wealth Management Investment Philosophy

Lexington Wealth Management relies on a variety of inputs and strategies when formulating its advice to its clients. The firm considers asset allocation and asset location, as well as tax strategies, concentrated wealth strategies and alternative investments. The firm also conducts consolidated performance reporting and Monte Carlo simulation analysis. Lexington occasionally uses forecasting information from third parties to help formulate its advice, but the firm maintains sole responsibility for the advice it gives its clients. With each client, the firm tailors its advice to that client's goals, time horizon and preferences.

Fees Under Lexington Wealth Management

For investment management services, Lexington Wealth Management charges fees according to the following schedule based on account size:

Account Size Fee Percentage
Up to $5,000,000 1.00%
Next $5,000,000 0.75%
Next $15,000,000 0.50%
Next $25,000,000 0.40%
Above $50,000,000 Negotiable

Lexington may negotiate a different fee in certain situations depending on the account. The fees are typically charged from the date the investment management agreement is signed, and you will be billed quarterly in advance based on the market value of your assets from the last day of the previous billing period.

The firm also charges stand-alone fees for certain services, including the following:

Services Fee
Basic Plan - Net Worth, Cash Flow Planning  $3,000
Additional Add-on Planning $1,000
Insurance Planning $1,000
Retirement Planning $1,000
Investment Planning $1,000
Long Term Care Planning $1,000
Estate Planning with Referral $1,000
Portfolio Analysis $2,000
Investment Policy Statement $2,000
Business Planning $5,000

As with the investment management fees, the firm has the discretion to negotiate a different fee depending on the specifics of each situation. The below table shows how Lexington Wealth Management's investment management fees compare to the national median. Remember that these are only estimates and actual fees may vary.

Estimated Fee Comparison*
Your Assets Lexington Wealth Management National Median Advisory Fees**
$500K $5,000 $5,000
$1MM $10,000 $8,500 - $10,000
$5MM $50,000 $25,000 - $32,500
$10MM $87,500 $50,000
*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's 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

Lexington Wealth Management typically recommends that clients use either Schwab Advisor Services, Fidelity or TD Ameritrade for custody, brokerage and clearing services. In return for these recommendations, Lexington Wealth Management will occasionally receive investment research products or services from these institutions without having to pay for them. This creates a potential conflict of interest since the firm has an incentive to recommend these institutions. The good news is that all three companies are large and well-regarded brokerages, collective holding around $7 trillion in assets under management.

Additionally, Lexington Wealth Management participates in the Schwab Advisor Network, through which it receives client referrals. The firm pays Schwab a participation fee, and if any referred clients use a custodian other than Schwab, the firm must pay a Non-Schwab Custody Fee. This means that Lexington has an incentive to recommend all referred clients continue to use Schwab as their custodian. This incentive creates another potential conflict of interest. 

Lexington Wealth Management has a fiduciary duty to disclose these conflicts of interest. As a fiduciary, it always acts in its clients' best interests.

Disclosures

Lexington Wealth Management doesn’t have any disclosures.

Opening an Account With Lexington Wealth Management

To contact Lexington Wealth Management, you can call the office at (781) 860-7745 or send an email to info@lexingtonwealth.com. If you’re in Lexington, Massachusetts, you can also visit the office in person.

Where Is Lexington Wealth Management Located?

Lexington Wealth Management is located in historic Lexington, Massachusetts on the Southeast corner of Waltham Street and Massachusetts Avenue. History buffs may be intetrested to know that the office is just a few blocks from Lexington Common, where the first shots of the American Revolution were fired.

Tips for Finding a Financial Advisor

  • Ready to start working with a financial advisor? SmartAsset’s financial advisor matching tool can greatly simplify finding an advisor in your area. Take a few minutes to answer the questionnaire, and you’ll be paired with up to three local advisors who can help you build a financial plan.
  • Some advisors have high minimum investments, and others have minimum fees that may be cost-prohibitive at smaller account sizes. If you have less than $25,000 in investable assets, you might want to start out by looking into robo-advisors, a cheaper alternative to a traditional financial advisors.

How Many Years $1 Million Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about cost of living in retirement there.

Least
Most
Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology SmartAsset calculated the average cost of living for retirees in the largest U.S. cities. Using that calculation, we determined how many years $1 million would last in retirement in each major city.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors throughout the country. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%, reflecting the typical return on a conservative investment portfolio. Finally, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would last in each of the cities in our study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research