Independent Perspective: Why Megan Gorman Chose Independence

https://www.investmentnews.com/wp-content/uploads/assets/graphics src=”/wp-content/uploads2018/11/CI1180271121.JPEG”

The decision to go independent as a Registered Investment Advisor (RIA) is not one an advisor makes lightly. In a three-part series over the next several weeks, InvestmentNews Content Strategy Studio will explore the thinking — and emotions — that went into the independence decision with three advisors. Below, Megan Gorman explains her route to becoming the founding partner of Chequers Financial Management in San Francisco, Calif., and what independence means to her.

InvestmentNews Content Strategy Studio Studio: Megan, give us a snapshot of your firm.

Megan Gorman: We’re an independent, boutique tax and financial planning firm working with high-net-worth clients. We are women-owned, have a woman as our chief investment strategist, and are really committed to promoting diversity within our firm and in the profession overall. We started in 2015 with around $100 million in assets, and today we manage over $250 million. We focus on building great relationships with our clients, which has led to a lot of growth, and we’re on track to reach $500 million in assets under management. As a high-net-worth planning firm, we advise on over $1 billion.

INCSS: Tell us about your path to independence.

MG: I’m an attorney by training, but as I went through law school I discovered that I didn’t want to practice law. However, I still wanted to advocate for people and help them navigate complexity. Fortunately for me, I took a tax class in law school and the complex subject of taxes just clicked. When I graduated, I interviewed with several law and accounting firms, but I took a job at a national financial planning firm because my work involved spending time with clients and coming up with complex solutions and executing on them. I loved it. The firm moved me from New Jersey to California, but things started to change once the firm was acquired; after 12 years there I started to think about going elsewhere. I moved to a major bank, but I missed working on tax issues, which wasn’t part of how the bank defined my job, and I became unhappy and frustrated.

I did a lot of reflection on what I truly enjoy, and I realized that a corporate environment wasn’t a good fit because I didn’t have the flexibility to do what I thought made sense for my clients. I also came to realize that there was a great opportunity for a firm that could provide technical tax and financial planning for high-net-worth individuals and families. In my local area, I didn’t see any firms like that — especially one that was female-owned. I came to realize that becoming an independent firm would give me the opportunity to be different and to do what I had great passion for.

INCSS: Was there a particular “ah-ha” moment that made you take the first step to go independent?

MG: It was more of a series of moments in which I realized that I had to have my own firm in order to serve clients in the way that I wanted. Then, one day, my husband looked at me and said, “You’ve talked about starting your own firm for years. Are you going to do it?” That nudge helped me put aside my fears and self-doubts and ask myself, “Why not me?” Then I made the move.

INCSS: What is it about running your own independent RIA firm that you find most appealing?

MG: Well, it’s more than just building a firm, although that’s really rewarding in itself. The best part is that you can be creative and imaginative, and build whatever you need to support your clients. The RIA space is unique because you don’t have to follow a cookie-cutter model. It allows you to use your years of experience to offer something that bigger firms cannot. Let me tell you, because of our work in taxes and financial planning, we attract clients who might have never be interested in us if we just focused on investments.

INCSS: How did you first hear about Schwab Advisor ServicesTM?

MG: Odd as it may sound, the first thing I liked about Schwab was their statements. When you’re a tax person like I am, you get to see how different firms present tax and investment data. Even though I do so much more for my clients than manage their investments, the monthly statement they receive is a physical reminder that I’m involved in their life. So, I wanted their monthly reminder to be tax-friendly and very easy to read.

INCSS: In what ways has the Schwab relationship been helpful to you?

MG: When you come from a wirehouse or a big bank, you’re used to having systems behind you. When you go independent, you realize that you have to create the system. The Schwab team was behind us 100% of the time, helped us at every step, and supported our plans for growth. From the first days of our firm, they’ve always been very engaged and truly interested in what we are trying to do. For example, because of our tax orientation, our software needs are different from many other firms. In addition to helping us find the right tech tools, they provided numerous introductions to providers to help us navigate the complex world of running an RIA firm.

INCSS: Diversity is important to you. How does Schwab support you in that area?

MG: My team is very, very diverse. When you’ve spent the first 15 years of your career in an industry where women are underrepresented, you become aware of how important it is to create opportunities for women. Schwab looks at things the same way. For example, they recommended Nicole Tanenbaum, our chief investment strategist, for an opportunity to moderate an investment event in our area. She was the sole woman on the panel, and Schwab helped her get there.

INCSS: Any takeaways on independence?

MG: Every advisor has thought, “If I had my own firm, I’d do it a better way.” You just need courage to make that dream a reality. For me, it was a choice about wanting to be happy. Independence is not unicorns and butterflies every day; it’s really hard work. But you work a lot because you want your firm to be amazing. This firm is my legacy, and I’m building something that will last and that I can pass on to the next generation of our partners.

To find out what going independent could mean for you, visit advisorservices.schwab.com/goindependent

Schwab does not supervise investment advisors and takes no responsibility to monitor the services they provide. Schwab Advisor Services™ includes the custody, trading, and support services of Charles Schwab & Co. (Member SIPC). (1118-8F1H)

This is a sponsored special feature developed by the InvestmentNews Content Strategy Studio and supported by Charles Schwab.