Letter from the Founders
Welcome to Lake Street. We formed our independent wealth management firm in 2017 with the following goal in mind: to offer clients unbiased, holistic advice. As an independent firm, we are not beholden to corporate agendas or shareholders‘ interests. We chose to leave behind the bureaucracy and conflicts of interest embedded in the large banks so that we could better serve the interests of our clients.
When clients engage us as their trusted advisor, they can expect exceptional service and focus in everything we do. We actively engage with our clients and provide a candid approach to their financial wellness. We are always learning and striving to be better at our craft as technology and policy continue to advance our industry.
By leveraging our open achitecture platform, we have greater control over the products and services we can offer to our clients, enabling us to deliver on a customized financial plan and investment strategy tailored specifically to individual goals and objectives.
As fiduciaries, we are held to the highest standard of trust and confidence in our industry. We take pride in “sitting on the same side of the table” with our clients to ensure their interests are always at the center of every financial recommendation and decision we make.
Whether you are just beginning to invest for your future, envisioning a transition for your business, or looking to manage your investments more effectively for retirement, we can help. Let’s get started.
With warmest regards,
Justin M. Terzo, CPA
Joseph D. Stock, CFP®
Who We Serve
Lake Street serves the needs of private clients and institutions throughout the United States. Many of our private clients include business owners, corporate executives, financial services professionals, and retirees. We have extensive experience in working with institutions, specifically privately-held businesses and private foundations.
Individuals and Families
We have had the privilege of guiding generations of clients, often acting in the capacity as “the family’s CFO.” Many of our clients have come to consider us as extended members of their families. For these individuals and their families, we apply a consultative approach to managing the complexities that accompany wealth and provide support in achieving the milestones that will have an impact in their lifetime and beyond. We assist in carefully planning the transfer of acquired wealth to the next generation of their families. We often serve as a mentor to future investors, ensuring they progress quickly along the path to becoming financially savvy.
Emerging Wealth Investors
Individuals and couples who are starting on the path of financial planning and wealth accumulation often need guidance and support. As peers, we share the range of financial challenges they face, from starting families to buying their first homes, paying down student loans, and advancing in their careers. Although retirement seems far away, the decisions made now can provide security and ease later in life. We strive to help them get a strong start at this critical point in their lives as we work tirelessly to become their investment management partner for the long term.
Business Owners
As entrepreneurs and business owners ourselves, we know firsthand the challenges of managing and growing a business. We understand that business owners need a comprehensive approach to address their entire financial picture, one that includes personal wealth management and business planning. We assist business owners on a wide range of services, from improving day-to-day operations to helping to plan for an eventual sale to a family member or outside party. In preparation for a liquidity event, we often assist with coordination between investment bankers, private equity firms, CPAs and attorneys.
Corporate Executives
Our clients who are successful executives often receive significant compensation in the form of stock options and lump sum bonuses. Executives rely on us to carefully plan for variable and speculative compensation, taking into consideration their risk in concentrated company stock positions and the impact of taxation to their financial plan. Our experience extends to hedging and monetization of concentrated equity positions, review of company trading policies, and compliance with regulatory requirements that impact transactions in company stock.
Financial Professionals
An advantage of being headquartered in Chicago, a growing hub for financial technology and home to multiple securities exchanges, is that our network continues to expand to notable financial services professionals in the area. In our due diligence with private equity investors, management consultants, traders and investment bankers, we find that a sizable portion of their investment risk and retirement savings exists in their day-to-day business. When engaged as their investment advisor, we are tasked with helping to hedge and minimize these business risks within the outside investments for which we have discretion in managing. These discerning professionals have high expectations for sound, unbiased financial advice and they often will leverage our resources for institutional research. Their choice of Lake Street speaks to our industry knowledge, level of sophistication, and unique access to non-traditional investment products.
Retirees
For clients approaching retirement or those who are already retired, we develop and execute on custom strategies for income protection and wealth preservation. We help ensure these clients meet their long-term financial needs in retirement by matching critical living expenses with available sources of income, such as social security and pensions, and supplementing any shortfalls with cash flow from their investment portfolio. Our goal is to enable retirees to achieve and maintain the financial security and freedom they worked so hard to achieve.
Privately-Held Businesses
Lake Street works closely with privately-held businesses on a range of financial issues, from daily operations to retirement planning and employee wellness. We often are engaged to improve balance sheet items such as cash management and debt service requirements. We also help implement retirement plans that benefit employee wellness while addressing the tax minimization needs of the owners or principals. Our services extend to a wide range of benefit and retirement options, including 401(k) plans, defined benefit plans, profit sharing and cash balance plans. We provide key staff members and other employees with financial education programs to help them become responsible, active partners in their investments. We will share in the investment responsibility provided to these clients through ERISA 3(21) and 3(38) co-fiduciary agreements.
Private Foundations
We work closely with the investment committees of private foundations and provide essential support to fulfill fiduciary responsibilities. We assist foundations in effectively managing their investment portfolio, administering grants and meeting their responsibilities to safeguard and grow the funds that support their programs. Our assistance enables private foundations to better understand investment options so they can make informed choices on behalf of their organizations and the constituencies they serve.
Our Process
The selection of securities and macro-investment decisions are based on Lake Street’s proprietary in-house methodology. Typically, we employ risk-based model trading, dynamic asset allocation, and active stock selection strategies. We primarily use equities, bonds, and ETFs to achieve strategic exposure to various asset classes. We also will utilize alternative investments such as commodities, private equity and hedge funds when the investment landscape calls for these types of investments.
As fiduciaries, we are responsible and accountable for all the investment decisions made and we place great emphasis on setting a high standard for transparency in all our client interactions. This responsibility extends throughout our relationship, not just at the point of sale. Investment research is conducted independently to ensure we remain unbiased and not beholden to a single source. We are mindful that our clients expect us to provide effective tax minimization options and to keep costs reasonable.
Each private client’s investment approach is determined on a case-by-basis using a multi-step process that begins with an investor profile questionnaire to determine investment goals, time horizon, liquidity needs, risk aversion and sensitivity to taxation. Our recommendations are based on our clients’ individual needs and consideration for their life stage — whether they are young and seeking growth, or retired and relying on their protected investments for income.
Institutions can expect the same level of due diligence when we are engaged to provide investment consulting services to their organization. In the event we are asked to share co-fiduciary responsibilities with plan sponsors, we will provide extensive quarterly reviews to address whether the selected investments are meeting minimum standards as defined in the Investment Policy Statement (IPS).
Once an investor profile has been completed, our team will evaluate the unique investment objective and begin portfolio construction. During this phase of our engagement, consideration will be provided in the following areas:
- Tax sensitivity
- Risk mitigation
- Tactical portfolio re-balancing
- Comprehensive review of holdings
- Utilization of low-cost investment vehicles
- Diversification across internal and external accounts
- Implementation of active and passive management strategies
Meet the Team
Letter from the Founders
Welcome to Lake Street. We formed our independent wealth management firm in 2017 with the following goal in mind: to offer clients unbiased, holistic advice. As an independent firm, we are not beholden to corporate agendas or shareholders‘ interests. We chose to leave behind the bureaucracy and conflicts of interest embedded in the large banks so that we could better serve the interests of our clients.
When clients engage us as their trusted advisor, they can expect exceptional service and focus in everything we do. We actively engage with our clients and provide a candid approach to their financial wellness. We are always learning and striving to be better at our craft as technology and policy continue to advance our industry.
By leveraging our open achitecture platform, we have greater control over the products and services we can offer to our clients, enabling us to deliver on a customized financial plan and investment strategy tailored specifically to individual goals and objectives.
As fiduciaries, we are held to the highest standard of trust and confidence in our industry. We take pride in “sitting on the same side of the table” with our clients to ensure their interests are always at the center of every financial recommendation and decision we make.
Whether you are just beginning to invest for your future, envisioning a transition for your business, or looking to manage your investments more effectively for retirement, we can help. Let’s get started.
With warmest regards,
Justin M. Terzo, CPA
Joseph D. Stock, CFP®
Who We Serve
Lake Street serves the needs of private clients and institutions throughout the United States. Many of our private clients include business owners, corporate executives, financial services professionals, and retirees. We have extensive experience in working with institutions, specifically privately-held businesses and private foundations.
Individuals and Families
We have had the privilege of guiding generations of clients, often acting in the capacity as “the family’s CFO.” Many of our clients have come to consider us as extended members of their families. For these individuals and their families, we apply a consultative approach to managing the complexities that accompany wealth and provide support in achieving the milestones that will have an impact in their lifetime and beyond. We assist in carefully planning the transfer of acquired wealth to the next generation of their families. We often serve as a mentor to future investors, ensuring they progress quickly along the path to becoming financially savvy.
Emerging Wealth Investors
Individuals and couples who are starting on the path of financial planning and wealth accumulation often need guidance and support. As peers, we share the range of financial challenges they face, from starting families to buying their first homes, paying down student loans, and advancing in their careers. Although retirement seems far away, the decisions made now can provide security and ease later in life. We strive to help them get a strong start at this critical point in their lives as we work tirelessly to become their investment management partner for the long term.
Business Owners
As entrepreneurs and business owners ourselves, we know firsthand the challenges of managing and growing a business. We understand that business owners need a comprehensive approach to address their entire financial picture, one that includes personal wealth management and business planning. We assist business owners on a wide range of services, from improving day-to-day operations to helping to plan for an eventual sale to a family member or outside party. In preparation for a liquidity event, we often assist with coordination between investment bankers, private equity firms, CPAs and attorneys.
Corporate Executives
Our clients who are successful executives often receive significant compensation in the form of stock options and lump sum bonuses. Executives rely on us to carefully plan for variable and speculative compensation, taking into consideration their risk in concentrated company stock positions and the impact of taxation to their financial plan. Our experience extends to hedging and monetization of concentrated equity positions, review of company trading policies, and compliance with regulatory requirements that impact transactions in company stock.
Financial Professionals
An advantage of being headquartered in Chicago, a growing hub for financial technology and home to multiple securities exchanges, is that our network continues to expand to notable financial services professionals in the area. In our due diligence with private equity investors, management consultants, traders and investment bankers, we find that a sizable portion of their investment risk and retirement savings exists in their day-to-day business. When engaged as their investment advisor, we are tasked with helping to hedge and minimize these business risks within the outside investments for which we have discretion in managing. These discerning professionals have high expectations for sound, unbiased financial advice and they often will leverage our resources for institutional research. Their choice of Lake Street speaks to our industry knowledge, level of sophistication, and unique access to non-traditional investment products.
Retirees
For clients approaching retirement or those who are already retired, we develop and execute on custom strategies for income protection and wealth preservation. We help ensure these clients meet their long-term financial needs in retirement by matching critical living expenses with available sources of income, such as social security and pensions, and supplementing any shortfalls with cash flow from their investment portfolio. Our goal is to enable retirees to achieve and maintain the financial security and freedom they worked so hard to achieve.
Privately-Held Businesses
Lake Street works closely with privately-held businesses on a range of financial issues, from daily operations to retirement planning and employee wellness. We often are engaged to improve balance sheet items such as cash management and debt service requirements. We also help implement retirement plans that benefit employee wellness while addressing the tax minimization needs of the owners or principals. Our services extend to a wide range of benefit and retirement options, including 401(k) plans, defined benefit plans, profit sharing and cash balance plans. We provide key staff members and other employees with financial education programs to help them become responsible, active partners in their investments. We will share in the investment responsibility provided to these clients through ERISA 3(21) and 3(38) co-fiduciary agreements.
Private Foundations
We work closely with the investment committees of private foundations and provide essential support to fulfill fiduciary responsibilities. We assist foundations in effectively managing their investment portfolio, administering grants and meeting their responsibilities to safeguard and grow the funds that support their programs. Our assistance enables private foundations to better understand investment options so they can make informed choices on behalf of their organizations and the constituencies they serve.
Our Process
The selection of securities and macro-investment decisions are based on Lake Street’s proprietary in-house methodology. Typically, we employ risk-based model trading, dynamic asset allocation, and active stock selection strategies. We primarily use equities, bonds, and ETFs to achieve strategic exposure to various asset classes. We also will utilize alternative investments such as commodities, private equity and hedge funds when the investment landscape calls for these types of investments.
As fiduciaries, we are responsible and accountable for all the investment decisions made and we place great emphasis on setting a high standard for transparency in all our client interactions. This responsibility extends throughout our relationship, not just at the point of sale. Investment research is conducted independently to ensure we remain unbiased and not beholden to a single source. We are mindful that our clients expect us to provide effective tax minimization options and to keep costs reasonable.
Each private client’s investment approach is determined on a case-by-basis using a multi-step process that begins with an investor profile questionnaire to determine investment goals, time horizon, liquidity needs, risk aversion and sensitivity to taxation. Our recommendations are based on our clients’ individual needs and consideration for their life stage — whether they are young and seeking growth, or retired and relying on their protected investments for income.
Institutions can expect the same level of due diligence when we are engaged to provide investment consulting services to their organization. In the event we are asked to share co-fiduciary responsibilities with plan sponsors, we will provide extensive quarterly reviews to address whether the selected investments are meeting minimum standards as defined in the Investment Policy Statement (IPS).
Once an investor profile has been completed, our team will evaluate the unique investment objective and begin portfolio construction. During this phase of our engagement, consideration will be provided in the following areas:
- Tax sensitivity
- Risk mitigation
- Tactical portfolio re-balancing
- Comprehensive review of holdings
- Utilization of low-cost investment vehicles
- Diversification across internal and external accounts
- Implementation of active and passive management strategies
