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FAQ’s

Who We Are

1. What is Lawrence Wealth Management?

Lawrence Wealth Management (LWM) is a fee-only Registered Investment Advisory (RIA) firm founded in 2008. We provide comprehensive financial planning, investment management, and tax planning services for individuals, families, and trusts nationwide.

4. What does “fee-only fiduciary” mean?

Our compensation is strictly limited to an investment advisory fee that is based on a percentage (%) of the assets we manage.  We receive no compensation from the purchase or sale of any investment we recommend or purchase on behalf of clients.

2. Where is Lawrence Wealth Management located?

We have offices in Colorado and Pennsylvania and serve clients throughout the United States.

5. What is the difference between an RIA and a broker?

An RIA (Registered Investment Advisor) operates under a fiduciary standard. A broker may operate under a suitability standard and may earn commissions on transactions. As a fee-only RIA, we receive no commissions and have no incentive to recommend specific products.

3. Are you a fiduciary financial advisor?

Yes. As a Registered Investment Advisor (RIA), we are legally bound by the Fiduciary Standard, meaning the financial interest of our clients must take priority over our own.

6. Who do you typically work with?

We serve:

  • Pre-retirees and retirees
  • High-net-worth individuals
  • Families building long-term wealth
  • Trusts and multi-generational households
  • Individuals with concentrated stock positions

Financial Planning

1. What does a comprehensive financial plan include?

Our financial plans include:

  • Investment analysis
  • Retirement projections
  • Social Security analysis
  • Pension income review
  • Tax strategy integration
  • College funding planning
  • Second home analysis
  • Estate and inheritance considerations
  • Insurance evaluation

Our goal is to provide clarity and peace of mind through a structured roadmap.

2. What is your financial planning process?

Our four-step process includes:

  • Data Gathering Meeting
  • Draft Plan Preparation
  • Plan Review & Scenario Analysis
  • Re-work after client review
  • Final Plan DeliveryWe evaluate multiple “what-if” scenarios to stress-test your financial future.
3. What percentage should retirees keep in stocks?

There is no universal answer. It depends on risk tolerance, income needs, longevity expectations, and tax considerations. Many retirees maintain meaningful equity exposure to combat inflation, and importantly, a “safety bucket” of funds to finance spending needs, if any, for 2-4 years.  We work closely with clients to determine the correct balance between “safety funds” and equities with prospects of long-term gains.

4. How much money do I need to retire comfortably?

This depends on desired lifestyle, expected longevity, health care costs, and other income sources. Our financial planning process provides detailed projections tailored to your situation…our process will answer this question for you.

Investment Management

1. How do you build investment portfolios?

We begin with asset allocation – the percentage split between stocks, bonds, and cash – which determines over 90% of long-term return and risk characteristics.

Portfolios are customized based on:

  • Risk tolerance
  • Time horizon
  • Tax profile
  • Cash flow needs
2. What is an Investment Policy Statement (IPS)?

An Investment Policy Statement (IPS) is a formal document outlining:

  • Target asset allocation
  • Risk tolerance parameters
  • Tax considerations
  • Liquidity needsIt helps prevent emotional reactions during market volatility.  Most institutional investors follow an IPS, and so do we with our clients.
3. Can you exclude specific stocks or industries?

Yes. We customize portfolios and can exclude certain stocks based on client preferences.

4. How do you handle market volatility?

With over 36 years of experience navigating multiple market cycles, we apply a disciplined, steady approach. We are a weekly contributor to an eight-member investment committee, sharing investment strategies and market insights, giving us a broad market perspective as we advise clients.

5. Do you help with concentrated stock positions?

Yes. We help clients strategically reduce highly appreciated or concentrated stock positions while managing capital gains tax realization.

Tax Planning

1. What is our role in tax planning

We work directly with clients and their accountants to suggest and execute various tax-saving strategies, including when to take capital gains, to make or not make Roth Conversions, and how to structure charitable contributions to maximize tax deductions, especially with “Donor Advised Funds.”

2. What is tax-loss harvesting, and how does it work?

Tax-loss harvesting involves selling investments at a loss to offset capital gains. When used strategically, it can reduce tax liability and improve after-tax performance. There are specific Internal Revenue Service compliance rules to take advantage of this strategy.

3. When does a Roth conversion make sense?

A Roth conversion may make sense when:

  • You expect higher future tax rates
  • You are in a low tax bracket temporarily
  • You want to reduce future required minimum distributions
  • You are focused on long-term tax-free growth

We analyze tax bracket, time horizon, and long-term impact before recommending a conversion.

4. How can I reduce taxes on appreciated stock?

Strategies may include:

  • Gradual sales over multiple tax years
  • Donor-advised funds
  • Gifting strategies

Each strategy must align with your broader financial plan.

Fees & Transparency

1. How much does a financial advisor cost?

We charge a percentage of assets under management (AUM):

  • 1.00% on first $500,000
  • 0.95% on $500,001 – $1,000,000
  • 0.85% on $1,000,001 – $2,000,000
  • Negotiable above $2,000,000

Fees are billed monthly and deducted directly from client accounts held at their custodian. We provide a detailed report with the fee calculation each month.

2. Are there commissions or hidden fees?

Our investment fees are fully transparent and disclosed monthly to clients.  However, funds owned by clients have “expense ratios” which are in addition to the investment advisory fees we charge and disclose.  We do not share or benefit in any way from these “expense ratios”.

3. Do you charge fees on all assets?

No. We do not charge advisory fees on assets that are not actively managed, such as certain long-term concentrated stock positions.

Service & Communication

1. Do you limit the number of clients?

Yes. We serve a limited number of clients to ensure responsiveness and personalized attention.

2. Where are assets custodied?

Client assets are held with an independent custodian, Charles Schwab & Co. Inc. (Schwab). Clients can review their accounts on Schwab.com.  The statements issued by Schwab are the official record of accounts.

3. How often do you communicate with clients?

We manage an internal portfolio management system, which we use to issue monthly reports to clients. These reports include:

  • A commentary we write each month
  • Clients’ asset allocation among equities, bonds, alternative investments, and cash versus the clients target percentages
  • Investment performance by asset type (equities, bonds, alternative investments, and cash)
  • A monthly investment advisory fee calculation
  • A complete listing of all accounts’ investment holdings, cost basis and gains/loses

Media & Education

1. Do you provide market commentary and education?

Yes. Founder Rich Lawrence, CFA® provides monthly market analysis covering economic data, global events, and portfolio positioning. We are introducing additional educational blog content.

2. Where can I watch your financial planning videos?

Our Media section of our website and YouTube channel feature concise videos explaining:

  • Current market trends
  • Portfolio positioning
  • Tax planning concepts
  • Retirement strategies