The services of various brokers differ, but in general, a broker’s role is to facilitate a trade. He or she is the individual you call when you want to buy or sell a security. A broker may also recommend various securities for their clients to purchase, but the securities recommended are often based on the attractiveness of that particular security, as opposed to how it fits into the client’s overall portfolio strategy.

On the other hand, a LVM portfolio manager first establishes an appropriate portfolio strategy for your particular needs. Within this strategy, a proper asset allocation is determined, and then a portfolio of attractive securities is chosen to that meet your goals.

Also, compensation model differs. We are paid on a percent of assets under management. Our fee revenue increases only if your account’s market value increases. A broker is typically compensated with trading commissions - thus, he or she is incented to encourage you to trade more frequently. This typically conflicts with your best interests. Some brokers are compensated under a "wrap" program wherein they get paid an asset-based fee versus transactional trading commissions. These programs are usually very costly alternatives, typically 2% or more of the asset value.

At LVM Capital, we often work with brokers as part of the team of service providers. As a Registered Investment Advisor, we are prohibited from holding your assets at LVM. Therefore, your assets are custodied at a bank trust department or at a brokerage firm. The broker acts merely as a custodian and does not have the authority to initiate any trades unless we direct him to do so. In cases where we use a broker in this capacity, part of our responsibility to you, as a client, is to negotiate low trading costs. Thus, often due to the economies of scale we experience, we are able to negotiate significantly lower trading costs than what you would be able to achieve on your own.

Mutual funds have a place in investment management. For the client with less than $500,000 to invest, mutual funds can provide an efficient means to diversify a portfolio. However, it is important that the savvy investor be aware of the hidden fees often embedded in mutual funds. It is important to read the fine print when considering mutual funds as an investment alternative.

There are many benefits of using individual securities for a client who has over $500,000 to invest. The diversification benefits of mutual funds for the smaller client can also be achieved using individual securities for the larger client. However, the advantage to using individual securities is that the portfolio is completely customized to the unique goals, desires, and needs of the individual client. For instance, you can exclude stocks from your portfolio that don’t reflect your personal beliefs and values. It is also easier to coordinate your investment objectives with the financial planning goals because you have control over the asset allocation and are immediately aware of any changes that take place in your portfolio.

An additional advantage to owning individual stock is that you are less affected by the behavior of other investors. If investors in your mutual fund panic and sell shares, the fund manager may have to sell stocks at depressed prices to meet redemptions when the manager would actually prefer to be picking up bargains. Another benefit is the ability to purchase and sell securities in real time during the trading day, compared to mutual funds which are priced once daily at the close of the market.

Of course, if the portfolio under consideration is a taxable account rather than an IRA or other tax-advantaged account, the benefits of individual securities are even more dramatic. You have the ability to determine when and if you want to take any capital gains or losses in a given year and can offset gains with losses to minimize tax liabilities. You also establish your own cost basis when you purchase individual securities as opposed to participating in the embedded capital gains you inherit when you buy shares of a mutual fund.

One of the most important considerations for using individual securities over mutual funds is that when investing in mutual funds, you are simply one of many ’investors’ to that mutual fund manager. The fund manager operates under guidelines prescribed in the fund prospectus, rather than your individual needs as a client. When working with a firm such as LVM Capital, which uses individual securities to accomplish your goals and objectives, you will meet face-to-face on a regular basis with your investment professional making strategic decisions for your individualized portfolio.

Our financial planners will review your existing estate plan and make any recommendations they deem appropriate. Our planners are "fee only", and do not earn any commissions on any products recommended, thus, you can be assured that recommendations are in your best interest. Any alterations or additions recommended would be coordinated with your existing estate planning advisors or attorneys, to effect the recommendations.

Asset management is one component of your overall financial plan. By integrating the two, you can be assured of consistency and congruity. LVM’s wealth management services consist of an initial financial plan, prepared by one of our CFP® practitioners, whom may recommend various investment trusts and/or accounts. Then, working with one of our CFA charterholder portfolio managers, the proper investment allocations are determined for the various accounts. For instance, different assets may be recommended for taxable accounts and tax deferred accounts. However, our financial planner and portfolio manager will work together to ensure the total asset allocation, regardless of each asset's location, adheres to your overall, customized investment policy statement.

Our goal is to be trustworthy. We believe that the Code of Ethics and Standards of Professional Conduct developed by the Association for Investment Management and Research is a very high standard for fair treatment of clients.

The ICFA awards the designation of Chartered Financial Analyst to the investment professionals whom achieve the highest level of professionalism. Completion of the CFA program involves three levels with a total of eighteen hours of examination. The program focuses on portfolio management, asset valuation, financial statement analysis, ethical standards, as well as providing general knowledge in other areas of finance. Also, all CFA program participants are required to subscribe to a strict code of ethics. The code says that the analyst must conduct himself with integrity and dignity, and act in an ethical manner. Key concepts of the code also include competence and the exercising of independent professional judgment.

The rigorous academic criteria and the strict Code of Ethics are the main reasons The Economist ranked the CFA Program as “the gold standard among investment analysis designations.”

The CFP® represent a Certified Financial Planner designation. An individual who has earned these marks has met the education, examination, experience and ethics standards established by the Certified Financial Planners Board of Standards (CFP® Board). Therefore, a financial planner who has earned the CFP® marks should be distinguished from a financial planner who has not. Consumers need to be aware that there is nothing preventing a person from declaring themselves a "Financial Planner", and it is therefore incumbent upon the consumer to differentiate between a planner who has earned the marks and one who hasn't.

If a financial planner has earned the right to use the CFP® marks, this means that he or she has met the following requirements:

Education

There are three ways to meet the CFP® certification education requirement: 1) completing an education program at a college or university whose curriculum is registered with the CFP® Board; or 2) submitting a transcript of previous financial planning-related course work to the CFP® Board for review and credit; or 3) showing the attainment of certain professional designations or academic degrees.

Examination

Candidates for the CFP certification must pass a rigorous two-day, 10-hour CFP Certification Examination administered by the CFP Board that covers the financial planning process and includes such topics as tax planning, employee benefits and retirement planning, estate planning, investment management and insurance.

Experience

Candidates for CFP® certification must prove they have experience in the financial planning process before being authorized to use the CFP® marks.

Ethics

Candidates for CFP® certification have their backgrounds checked by the CFP® Board, and must also disclose any investigations or legal proceedings related to their professional or business conduct. The CFP Board reviews all such disclosures and investigates those statements that indicate areas of concern.

Candidates must also adhere to the CFP® Board's Code of Ethics and Professional Responsibility and Financial Planning Practice Standards.

Additionally, once certified, CFP® certificants must fulfill a biennial continuing education requirement to stay up-to-date on planning strategies and financial trends affecting their clients.