Making the transition

The independent RIA life: Unscripted

What's going independent really like?

Two advisors discuss the paths they took.

Eric Rosel

Founding Partner

Morgan Rosel Wealth Management

ERIC ROSEL:  So, Sarah, it's in your mind, you made the decision, you're moving. So talk to me about the process you went through to decide where your clients' assets were going to be, how you were going to manage your trading, your compliance, things like that. So what was the due diligence process like and how difficult was it?

Sarah Keys, J.D.

Founding Partner

Cardan Capital Partners

SARAH KEYS:  Right. Well, to be totally frank about it, we actually didn't make the decision until we decided on the route because we wanted to have confidence that our quality of resources, what we had access to, would not be sacrificed, that we would still be able to deliver the same level of service that our clients had been accustomed to and that we took a lot of pride in delivering. And so we spent about two years talking with other broker-dealers, looking at hybrid solutions and then looking at the various independent routes, whether it was through like an independent branch through a broker-dealer or just totally independent. And once we really felt solid, and, in the fact, and it did… took two years, that by going the independent route and utilizing Schwab as our custodian, that we were going to be solid. Our clients were going to be solid. Everybody was going to be well taken care of, and we didn't need to worry about what resources we were going to have access to. And it's played out beautifully.

How about you? What was your process like?

ERIC:  Well, like you, I think the most important thing and fear in our mind was what's the client's perception going to be? So, for us, we wanted to make sure that we partnered with, of course, the biggest and the best, but we also wanted to partner with someone who is perceived in the eyes of the public as someone who is fighting for the client. So, like you, going through the due diligence, we wanted first and foremost to have someone that had our client's interests first. So, obviously, there's some big boys that come to mind, but at the end of the day, Schwab was the clear leader in our regard. So, you know, once we had that decision made, as you mentioned, the resources that they're able to bring to us to help put the other pieces together was there.

SARAH:  Were you always going to go totally independent…

ERIC:  Yes.

SARAH:  ...or did you look at any of the hybrid options?

ERIC:  Well, we did look at all of the other options, the hybrid models, whatever it may be. But, for us, at the end of the day, we felt that we wanted to chart our own path, from the compliance all the way down. We wanted to be the one that said, yes, this marketing is approved in the best interests of our clients, not someone else who, who knows what's going to happen or change at the leadership of their company…

SARAH:  Right.

ERIC:  …what compliance officer do they bring in. We know we have our clients' best interests at heart. No one knows more what our clients need than us, right? That's why we chose to go that path.

SARAH:  Yep. I would agree with that.

ERIC:  I'm sure you probably found that, as well.

SARAH:  Yep. Yep. There were moments that felt scary, but, yeah, looking back on it now, it was… you know, it was just the natural nerves that you would have, I think, going through such a big change.

ERIC:  That's right.

SARAH:  But, yeah.

ERIC:  No different than other major milestones, I guess, in your life, right?

SARAH:  Exactly. Yep.

ERIC:  You just go to do it.

DISCLOSURES

Information included during this video is intended to be an overview and is subject to change.

The comments, views, and opinions expressed in the presentation are those of the speakers.

Cardan Capital Partners, LLC and Morgan Rosel Wealth Management, LLC are not owned by or affiliated with Schwab, and its personnel are not employees or agents of Schwab. This video is not a referral to, endorsement or recommendation of, or testimonial for the advisor with respect to its investment advisory or other services.

Experiences expressed are no guarantee of future performance or success and may not be representative of your experience.

Schwab does not provide legal, regulatory or compliance advice. Consult professionals in these fields to address your specific circumstance.

Schwab Advisor Services™ serves independent investment advisors and includes the custody, trading, and support services of Schwab. Independent investment advisors are not owned by, affiliated with, or supervised by Schwab.

©2019 Charles Schwab & Co., Inc. ("Schwab"). All rights reserved. Member SIPC. (0120-9XNW)

The independent RIA life: Unscripted

What's going independent really like?

Two advisors discuss what kept them up at night.

Eric Rosel

Founding Partner

Morgan Rosel Wealth Management

ERIC ROSEL:  So, obviously, when you… thinking about doing this move versus actually, ‘Okay this is going to happen.' Talk to me about the fears that you had. I mean, going… I know I had some very specific fears and… but what were yours? What was going through your mind?

Sarah Keys, J.D.

Founding Partner

Cardan Capital Partners

SARAH KEYS:  Yeah, I'll be curious to hear about yours. But, I mean, I think like a lot of advisors that have been at a particular place for a very long time and had clients… some of your clients have obviously been there the entire time you've been there… it was fear that they weren't going to want to come with us, that their allegiance was maybe to the firm rather than to us. So that became the overwhelming fear. I was more concerned about what clients were going to think about why we were going independent and, you know, were their assets going to be safe, was there some way for us to make our own statements and fudge our performance or, you know, somehow mess with their financial documents, and trying to reassure them of those really kind of more basic things.

ERIC:  Yeah.

SARAH: And that turned out not to be anything that we needed to worry about. I mean, we brought… virtually all of the clients that we asked to come came with us. And they were excited and enthusiastic and supportive, and to a degree that I would never have guessed. So… and I had kind of heard that, but it really actually played out that way.

So… and what about you? What were you afraid of?

ERIC:  I mean, the number one thing on everybody's mind is going to be, ‘Look, are my clients going to come with me?' Without clients, we don't have a business…

SARAH:  A business.

ERIC:  …we don't have a career, right? So that's the number one concern. But it became very obvious, right? You resign, you're making the phone calls through the evening hour, and the response, as you mentioned, is just… was just incredible. It was… you know, we develop respect and trust with a client over a long period of time, maybe even a decade-plus, and those bonds don't get broken…

SARAH:  Right.

ERIC:  … just because you decide to leave one firm. And certainly if you're starting your own, it's almost a… a lot of my clients, you know, I think a few of them said, ‘Well, it's about time.'

SARAH:  Yeah.

ERIC:  Right?

SARAH:  Right.

ERIC:  I think that was…

SARAH:  Right.

ERIC:  …a very common response.

DISCLOSURES

Information included during this video is intended to be an overview and is subject to change.

The comments, views, and opinions expressed in the presentation are those of the speakers.

Cardan Capital Partners, LLC and Morgan Rosel Wealth Management, LLC are not owned by or affiliated with Schwab, and its personnel are not employees or agents of Schwab. This video is not a referral to, endorsement or recommendation of, or testimonial for the advisor with respect to its investment advisory or other services.

Experiences expressed are no guarantee of future performance or success and may not be representative of your experience.

Schwab does not provide legal, regulatory or compliance advice. Consult professionals in these fields to address your specific circumstance.

Schwab Advisor Services™ serves independent investment advisors and includes the custody, trading, and support services of Schwab. Independent investment advisors are not owned by, affiliated with, or supervised by Schwab.

©2019 Charles Schwab & Co., Inc. ("Schwab"). All rights reserved. Member SIPC. (0120-9Y06)