News, Vision & Voice for the Advisory Community


Letter to Our Readers: What to think about the unstoppable RIA movement meeting an immovable black swan

For RIAs the roaring 2020s had a feverish first eight weeks until COVID-19 hit a reset button

Author Brooke Southall March 23, 2020 at 11:12 PM
no description available
The RIA business can stare down a black swan.

A father and a very concerned investor.

A father and a very concerned investor.

March 24, 2020 — 8:48 AM
While most of the Country is in shelter in place mandate, Schwab is continuing its reckless behavior and utter lack of concern for its employees safety. Shame on Schwab. The Schwab management is calculating the reward with risking their employees lives. The greedy management knows there are many ways to protect employees such as obviously the technology but also staggering personnel and alternate hours. It is understandable that not everyone can work from home but they have been deliberately resistant to let people who can work from home do so or at least minimize the exposure to the office for no reason other than carelessness and laziness. Schwab is asking for a big lawsuit. I’m taking my business elsewhere.
Shirl Penney

Shirl Penney

March 24, 2020 — 4:13 PM
Brooke, thanks for being so present in the RIA ecosystem over the past 10+ years and in particular right now. Adversity builds character; in life and in business. I started my journey into the RIA space in 2008 in the midst of the financial crisis and little did I know that my journey would start by "working for free" for over 2.5 years. But to your point those early lessons on capital stewardship and the scrappy start up mentality serve you well over time. Dynasty was off to our best start to a year ever in 2020, and took steps to position ourselves for the long term last year, that now have us positioned well in the space going forward. Once the "fog" (to use your term) has lifted I think the long term opportunity for the RIA space will be even greater. More people need financial advice (and now more realize it) than ever and for those that get aggressive it will be the greatest organic growth opportunity of their careers. M&A will return with more realistic valuations allowing even more deals to happen. For vendors in the space who have strong businesses coming out of this period of time they will do well as outsourcing increases as RIAs look to further manage their largest fixed cost (people), and the break-away advisor movement will continue as once previously complacent advisors will realize if they want to keep more of the revenue they generate the best way is to go independent. Sure there were be some pain along the way, some firms will not make it, or merge / consolidate; but overall we (the RIA ecosystem) will emerge better than ever. Who better to thrive in challenging and fast moving times than entrepreneurs? Thanks to all the wonderful RIA advisors who are doing such important work right now for people all across our country. Your clients will never forget what you are doing for them right now. Its so inspiring to watch this industry standing and delivering right now! Be well. Shirl

Related Moves

2023 was great RIA year and nobody really noticed, setting up 2024 for a more visceral reap

Pushing toward $10 trillion on multiple rising tides -- and with much creative destruction sorted out -- the RIA channel, ethos and movement are succeeding quietly in plain sight

December 30, 2023 at 1:39 AM

RIABiz Directory

The Industry Sourcebook for RIAs

   |    LISTING

RIABiz Directory sponsored by:

Directory Sponsor Logo