Case study: Advisors join an RIA to find their flavor of independence

Amy Hiett and Mike Walsh didn't find their flavor of independence right away. It took time, research, and a lot of conversations to see that joining an RIA could expand their offering, sharpen their focus on client needs, and support their growth.

Challenges at every stop

Amy Hiett came to financial services looking to join a team and landed at a wirehouse firm. That's where she found Mike Walsh, another young advisor who wanted to do right by his clients.

Amy recalls, "We were really happy collaborating and trying to understand our way in the business. We've been partners ever since."

Amy and Mike wanted to build a practice with values, one that put people and financial planning ahead of products. At the wirehouse, they weren't able to control the client experience. Their best ideas kept running into roadblocks.

"I was over it," Mike says. "I wanted to focus on clients."

They wanted independence but didn't want to go it alone. They felt they needed the support of a larger firm that could provide infrastructure but that let them choose their clients and how to serve them.

In 2009, they moved their practice to an independent broker-dealer (IBD). At the IBD, they had more control, but as time went on clients began coming to them with more complex needs. To meet those needs and keep growing their practice, they felt they had to make another change.

"We could control some of the things that were important to us—the staff we hired, our brand, and our ability to say how we worked with clients," Amy says. What was missing was the flexibility to offer whatever products and services their clients need.

She and Mike were also running up against the limits of their growth potential. "We started to realize we had a capacity problem and a complexity problem." That's when they talked to Schwab.

"The RIA business model is the right business model [for us] because you're a fiduciary. Moneta was just right out there at the beginning [saying] we work solely for the best interest of clients. That, to me, is the key."
-Mike Walsh, Partner, Moneta

The path to Schwab

Amy and Mike were familiar with the RIA model but weren't sure how it could work for them. As they explored their options with Schwab, they were pleasantly surprised that Schwab didn't push them to take a particular path or establish their business in a specific way. The team listened to what Mike and Amy wanted out of independence and then got to work helping them connect the dots, filling in details about how the process might work, and making introductions to people who could help them realize their vision.

Early in their process they went to IMPACT, Schwab's annual conference bringing together leaders and innovators from across the RIA industry. There they saw the breadth of service providers and collaborators available to them and heard stories like theirs about wanting more and finding it as an RIA. That week, their hopes grew bigger and brighter.

"That was our first opportunity to see how many ways to do this business there are, how many different team structures, technology stacks, and service models there are for clients. All of that for us was very exciting," Amy recalls.

"It wasn't just, 'Great, we're going to funnel you down this one path,'" Mike says. "Being able to expose us without putting pressure on us to make a decision that was serving them—it was really [about] trying to find the right match for us."

How joining became the solution

As Amy and Mike talked to Schwab and RIAs in the Schwab network, they discovered that by joining an established firm they could minimize the disruption of moving clients and assets, and gain operational infrastructure and expertise that would help them keep their momentum and continue to sharpen their focus on meeting client needs.

Exploring opportunities to join an RIA led them to Moneta, a national RIA firm that has added multiple like-minded advisors in recent years, providing a platform, processes, and support while letting new teams maintain ownership and control. For Amy and Mike, the arrangement at Moneta offered everything they were looking for.

"The RIA business model is the right business model [for us] because you're a fiduciary," Mike says. "Moneta was just right out there at the beginning [saying] we work solely for the best interest of clients. That, to me, is the key."

At Moneta, Amy and Mike are better able to tap into opportunities for growth. Now that they're on an open architecture platform, they can expand the investments and services they offer. They also have access to an in-house team with experience helping advisors grow and that provides marketing support to help them win new clients.

Amy and Mike also relied on Schwab throughout their move—getting support from Schwab on both strategic and operational details. "Schwab was with us every step of the way," Amy says. "The paperwork, the people—every part of it made the job easier."

"Schwab was with us every step of the way. The paperwork, the people—every part of it made the job easier."
Amy Hiett, Partner, Moneta

Setting the stage for real results

"We have had extraordinary opportunities to grow since we've moved to the independent space," Amy says.

"This is a business that requires nimbleness," Amy says. "Technology, services, and products evolve. Being with Schwab allows us to stay on the cutting edge."

Mike agrees. "This is an organization that clearly has in its DNA how to innovate and try ways to not just meet clients where they are today, but to anticipate where they're going to be tomorrow," Mike adds.

As RIAs working with Moneta and Schwab, Amy and Mike now feel they can be there for clients as life changes and needs get more complex. They also now have a built-in succession plan. As partners at Moneta, they're able to monetize their enterprise value when they retire while also knowing that their clients are in good hands.

The combination of freedom and support they get with Moneta and Schwab is bringing new excitement to wealth management for Amy and Mike. "It's a reinvigorating experience to be able to say, 'Great, we're in the right place to do the right thing for clients,'" Mike says. "It doesn't get any better than that."

What you can do next

• Want to learn more about the potential advantages of the RIA model? Schwab can help.
• Curious about how Schwab helps RIAs? Wealth services, technology, and business support are just the beginning. Whether you're exploring independence or considering a custodian swap, we're here to help you take your next step.