Lexington Wealth Management is a financial advisor firm located in Lexington, Massachusetts with roughly $930 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%|
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:
|Basic Plan - Net Worth, Cash Flow Planning||$3,000|
|Additional Add-on Planning||$1,000|
|Long Term Care Planning||$1,000|
|Estate Planning with Referral||$1,000|
|Investment Policy Statement||$2,000|
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**|
|$1MM||$10,000||$8,500 - $10,000|
|$5MM||$50,000||$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'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.
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 firstname.lastname@example.org. 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 interested to know that the office is just a few blocks from Lexington Common, where the first shots of the American Revolution were fired.
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