'I'm having more fun than ever': How these advisors carved their own path to becoming an RIA

The Registered Investment Advisor (RIA) model continues to be the fastest growing advisor channel in the U.S.¹ Many wirehouse and broker-dealer advisors choose independence because they want to create enterprise value, gain greater control over how their business is run, and serve clients the way they want.² They're also discovering that building an RIA from scratch isn't the only way to tap into the benefits of independence.

Scott Bills, CEO of Nilsine Partners, and Tom Mingone, founder and managing partner at Capital Management Group, A Hightower Company, have found that working with another firm offers both the support and freedom they need to pursue their goals and serve their clients. "I didn't know the independent space until I really started researching it," says Bills. "When I heard about it, I'm like, 'That is so brilliant. Why is everybody not doing that?'"

Finding the right path 

Many advisors on the move choose to work with an established firm or service providers to help take some of the administrative burden off their shoulders and sharpen their focus on what they enjoy most—helping clients set goals and make plans.

There are four paths to independence that include some level of support or collaboration with other firms.

• Join: Bring your talents to an established RIA firm to get the benefits of independence without the responsibility of ownership.
• Affiliate: Manage your book of business with the support of an established firm to handle admin and operations.
• Share: Work with an equity partner—on your own terms—to facilitate the transition process while mitigating risk.
• Outsource: Retain total equity while leaning on a team of experts to handle tasks outside your wheelhouse, like technology or compliance.

A second-generation advisor, Bills thinks of his firm as a family business. He joined his dad at a wirehouse two decades ago and never thought he'd leave. But there was a part of him that also wanted to step out of his dad's shadow. In 2021, he saw how the RIA model gave him that opportunity.

"We wanted to build our own brand," Bills says. "The entrepreneurial side was what drove us. We welcomed that challenge."

Bills also wanted to launch his new firm with proven systems and processes. He didn't want to divert time and resources to researching dozens of technology and service providers. He wanted to focus on his clients, employees, and firm culture so that he could build a business that was ready to grow right away. That's when Bills discovered Dynasty Financial Partners.

"We needed somebody to be able to come in and bring the whole package together and help us start day one," Bills says.

With more than $3 billion in client assets and many complex relationships, Mingone and his team were also cautious about making a big move. What drove him to keep exploring was the opportunity to develop a succession strategy that allowed him to monetize the practice he'd built over decades while also creating new opportunities for his team.

Mingone found that by working with an experienced partner firm in Hightower, he could turn the value he'd built through client relationships into equity that would allow him to retire when the time was right. Add in the support of Schwab and Mingone could make his move and keep building.

Start with Schwab

If you are an advisor exploring your RIA options, consider calling Schwab first. Schwab has helped more advisors go independent than any other custodian³ and can work side-by-side with you to help you find your path, develop your roadmap to independence, and connect with other RIAs.

For Bills and Mingone, working with Schwab gave them the confidence they needed to envision the firm they wanted—without settling for less.

"It was clear that Schwab had done this many times before," Mingone says. "They took a lot of time prior to the move to work with our entire team… They walked through the process and helped [my team] understand what needed to be done."

Bills was impressed by the level of support Schwab brought to the entire process. "They have been able to run alongside us the entire way and coach us and educate us in this space," Bills says.

From no to yes

Even advisors who believe in their potential as future RIAs can be slowed by fears. But those who keep exploring and asking questions often find that independence offers the choices and support they've been looking for.

"I just had this real quiet confidence about what we had built," says Bills. His clients felt the same way. "They heard the story and that whole idea of independence, it spoke to them," says Bills. "People were saying, 'Hey, we've been looking for an independent advisor. We love the fiduciary cap you're able to wear.'"

Mingone's team's confidence grew throughout the process of going independent because Schwab's commitment matched their own. "Every time we need something done, they're right there to help us serve our clients." He adds, "The clients are happy with where they landed. Understanding that their money would be custodied at Schwab was very comforting for them."

Instead of fear, many advisors who take their own path to independence find a new level of excitement.

"What's it like to be independent? I smile because I'm not joking that I am having more fun than ever," says Bills. "You're going from the land of no to the world of yes."

What you can do next

• Want to learn more about the potential advantages of the RIA model? Schwab can help.
• Get next-level clarity and momentum to help fast-track your growth as an independent advisor. Explore how the Schwab Advisor ProDirect™ fee-based program can help fuel your next move—and every step after that.
• Consider a custodian that is invested in your success. Contact us to learn more about the potential benefits of a Schwab custodial relationship.