After 2,300 hires in six months, Schwab makes decisive, with risk, RIA move to 'build out' 40 branch offices in swank winter enclaves -- staffed by 400 consultants -- to serve ultra-high-net-worth clients

Brooke's Note: Can Schwab literally go the whole distance from being a pesty self-directed discount broker to being the place where the wealthiest, most sun-drenched ultrawealthy go – forgoing J.P. Morgan – to invest their money? This article demonstrates that it's game to try! It has patiently worked its way up the segmentation chain from mass market to mass affluent and high net worth over decades. And it's always been a custodian for great RIA wealth managers handing the wealthiest. Maybe now under Rich Wurster at CEO and Chuck Schwab still chairing its board as an ultrahigh net worth consumer himself, the leadership is in place to make the passage. Well, it's still going to be a big process – with risks outlined by Alois Pirker [those rich have a bottomless appetite for service] – but a capital-flush Schwab might smell blood, and many of those ultra-wealthy no doubt grew up with Schwab before moving to Monarch Beach.

Charles Schwab today revealed its next step in the competition for ultra-wealthy clients with plans to hire 400 dedicated staff in the posher, sunnier American enclaves – armed with recently added discretionary investment management services. 

The Westlake, Texas, brokerage with $11.3 trillion is going all-in on 40 branches, including 16 new ones, in places like Monarch Beach, Manhattan Beach, Palm Beach Gardens, Aventura and Marco Island. It also announced plans for two new locations in greater Austin, Texas – Bee Cave and downtown. 

It surpasses Schwab's previous branching projections from January of building 12 branches. See: Charles Schwab will renew branch-building in retiree spots like Florida, relocate storefronts to 'high-traffic' areas, and dedicate staff to $10-million-plus accounts, new Schwab CEO says ahead of Tuesday earnings

Schwab underscored in its release that many new hires are strategically suited for this push into selling RIA services to America's wealthiest families and individuals.

“As Schwab builds out and enhances its branch geographic footprint, the firm is also planning to hire more than 400 new branch-related roles," it reads. 

They include "financial consultants and wealth consultants who partner with financial consultants to serve wealth management needs for Schwab high net worth and ultra-high net worth clients."

It reverses the trend of cutting branches – and people – after the TD Ameritrade acqusition. See: Charles Schwab shutters 79% of TD Ameritrade branches -- though 140 will cohabitate with a next-door Schwab branch -- and refers legacy TDA assets to legacy TD RIA custody clients

A capital-flush Schwab has already added 2,300 new employees in the first half of 2025 and is seeking more in client service, wealth management, digital innovation, and AI development. 

Many of these new roles are concentrated in Texas, California, Colorado, Florida, and Nebraska.

Morphed model

Yet, whether all the investment in wealth consultants and prime real estate space and fixtures pays off, is hardly a foregone conclusion, says Alois Pirker, principal of Pirker Partners of Marbehead, Mass.

“The risk is falling short of expectations that HNW/UNHW clients have gotten used to from the traditional firms that have been serving them, e.g., Northern Trust,” he says in the email.

“Schwab has morphed their business model from online brokerage to full-service in the past and is now moving towards the upper end of the WM spectrum.”

In fact, Schwab could potentially undershoot the mark in how much it needs to complete the leap from discount broker into the world of J.P. Morgan and U.S. Trust, Pirker adds.

“Clearly a big commitment by Schwab is required to add the capabilities demanded by these clients,” he writes.

This risk is very real for Schwab as it tries to hire talent to fulfill the expectation of the high net worth, never mind ultra-high-net-worth investors, says ex-Schwabbie Tim Welsh, president of Nexus Strategy in an email.

“Recruiting HNW advisors who command million dollar pay rates is impossible at the comp structure of a Schwab branch, so this very well be tilting at windmills,” he says.

"Where will they get these 400 advisors? Sifting through the bottom quartile of the wirehouses, and cast offs from the IBDs who can sell annuities super well, just won’t make the cut to refer rich folks to their internal investment solutions."

He adds: “As a result, their only answer just may be Schwab Advisor Network.”

Specialists key

Schwab's big investment in bricks, mortar and people in wealthy enclaves seems right in line with its 10-year trajectory, says Pirker. 

“With Schwab having transitioned towards a full-service wealth management business model over the last decade, having branches and specialists available in the various key markets is essential,” he writes by email. 

“Given the growth that Schwab has seen recently, I would expect them to further increase their branch footprint over time.”

Though traditionally moves by Schwab upmarket are beneficial for some RIAs that receive referrals, Schwab did not mention the involvement of its program, Schwab Advisor Network, in its release.

Sophisticated needs

One wealth management industry researcher, who asked not to be named for this article, said there is a clear shift underway toward keeping more wallet-share of sophisticated wealth clients.

“This enhancement of Schwab's services, with specific mention of HNW and UHNW clients, seems to be a step towards the firm’s wealth unit taking on clients with more sophisticated needs, who previously may have been good candidates for the firm's RIA referral network.”

Regardless of what Schwab said about referrals to RIAs, count on RIAs being the likely winners, says Welsh.

“When Schwab pushes into the wealthy segments, as long as the Schwab Advisor Network (SAN) is part of the story, RIAs won’t worry too much,” he says. “In fact, the billion-plus RIAs will rejoice as the average Schwab rep just isn’t the raw materials they need to service the ultra-rich. And as a result, SAN may indeed garner the lion’s share of this effort.”

RIA playbook

Of late, Schwab has openly tried to mimic RIA offerings with improved proprietary services – like discretionary asset management and deeper goal-based planning. See: Charles Schwab finally launches 'discretionary' version of Schwab Wealth Advisory, removing the last difference with RIAs, and closing a gap with Fidelity and Vanguard

Schwab's branch network head Jeannie Bidner's explanation for the branches is right out of the classic RIA playbook to build the trusted relationships with the very wealthy expect in their home communities.

“While we continually enhance our award-winning digital platforms and see an increasing number of clients interact with us online and on mobile, our branch network is without a doubt a competitive differentiator for Schwab," she says in the release.

"We’re excited to expand into new communities – as well as build out our presence in many communities where we are already located - to work with an even larger number of clients.”

Branching out

Schwab currently operates nearly 400 branches across the United States. 

“Schwab is adding 16 new branches and expanding or relocating 25 existing locations to increase capacity and optimize real estate, totaling more than 40 new locations across the country,” the release states. 

“Several new branches have already opened, and additional locations will be opening soon.”