A Look Inside Our Investment Council

Picture this: It is Monday morning. The alarm wakes you up around 6:30am and it is time to start the week. There are no “Monday Blues” at Family Legacy Financial Solutions, because we start our week with the Investment Council. The Investment Council is a weekly meeting led by our Chief Investment Officer, Todd Iglehart. We all get in the office by 7:30am and start the meeting promptly. We break down different topics every week and discuss both short-term and long-term investment strategies. Each advisor at Family Legacy takes part in this meeting and typically we walk away with homework for the following week.

At Family Legacy, we take pride in the fact that we do all investments in-house. Many advisors will hire third-party services to handle all of the investments. That is not how we operate. We do our own research and bring these conversations to our Monday morning meeting every week. Here are some topics and discussions we will have depending on the week.

1. Stock Voting

- We have a list of anywhere between 50-75 stocks that we each rate 1-4.

- 1 = Buy now, 2 = Buy on dip, 3 = Sell on rise, 4 = Sell now

- We focus our conversations on stocks with a mixed rating

- We take away any stock that has had a 4 rating for consecutive weeks

2. Research

- Todd loves giving us homework and typically we will give each advisor a sector to research and come back with best individual stocks of specific industries/sectors

- We will also do fund research to figure out which funds make sense in which portfolios. (Ex. Small cap blend, Mid Cap Value, International Growth, High Yield Corporate Bonds, etc.)

- Many times we have Wholesalers send us information on their funds and we will discuss these during the meeting as well

3. Book Club

- We read articles and books that are relevant to stock picking and investing

- We are currently discussing Jim Cramer’s “Real Money”

- We previously read other books which focus on either fundamental or technical investing styles

What are we analyzing?

This is the value we bring to our members. By holding everything in-house, we can communicate our investment strategy quickly and effectively. For individual stocks, here are some considerations:

- Price/Earnings ratio

- Price/Forecasted earnings ratio

- Price/Sales

- Price/Cash Flow

- Price/Earnings Growth

- Sales Growth % (1 year, 5 year)

- EPS Growth % (1 year, 5 year)

- Annual Dividend Yield

- Payout Ratio

- Dividend Growth %

- Gross Profit Margin

- Net Profit Margin

- Cash Flow/Share

- Current Ratio

- Quick Ratio

- Long Term Debt

- Debt to Capital

- Return on Assets

- Return on Investment

- Sales per Employee

- Quarterly Reports (company)

- Sector Reports (Industry/Sub-Industry)

- Balance Sheet

and much more…

Why do we do it?

Short answer, we love it. It would be tough to work in this industry without a passion for investing and the extensive amount of research that goes into both stock and fund picking. We pride ourselves in creating personalized investment portfolios so we do not have a “one-size-fits-all” model that we put all of our members into. We understand that each one of our members has a unique financial situation that requires a unique financial plan. Although this creates more work for us, the advisors, we know our members appreciate what happens behind the scenes. We are also opening up opportunities for our members to sit in on our investment council on a quarterly basis.

When 9:30am hits, we are ready for the market to open. At this point, we will probably need a coffee refill, but there’s no better way to start a Monday than at the Family Legacy Investment Council.

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