Charles Goldman tells indie advisers: 'Wind is at your backs'

Charles Goldman tells indie advisers: 'Wind is at your backs'
Plenty of business for the taking, says ex-head of Schwab Advisor Services; 'a lot of meat on the bone'
MAR 12, 2012
Independent advisers don't have to be big to be successful, according to Charles Goldman, former head of Schwab Advisor Services and past president of Fidelity Investments. The investor market has a lot of mass-affluent clients, said Mr. Goldman, now a senior adviser to Bain & Co., yesterday afternoon at an adviser event in San Diego hosted by Shareholders Service Group Inc. While some financial firms claim to have million-dollar or higher minimums, "that just ain't so," he said. "The average RIA account at Schwab [Advisor Services] is around $350,000." Advisers with $10 million to $100 million in assets control only about 10% of the $1.9 trillion registered investment adviser market, Mr. Goldman said, "but that's still a lot of money." He said the financial services industry is unique in having providers such as custodians, technology companies and product sponsors, who bring "massive scale" to boutique advisory firms, allowing smaller shops to compete with the big Wall Street houses. "The wind is at your backs" in terms of picking up market share, Mr. Goldman said. "There's still a lot of meat on the bone [of wirehouses] to go after,” he said. “There's still a lot of share to go get." RIA firms do face challenges in maintaining asset growth, given that many firms rely on one rainmaker, he said. Advisers also have to handle more technological and regulatory complexity, and few have figured out a succession plan, he said. He warned the 300 RIAs at the event about losing the battle over a fiduciary standard. "Your voices are almost unheard" in Washington, D.C., he said. A new fiduciary standard isn't necessarily bad, "but to take fiduciary case law of 100 years [in the making] and wash it away, that would be criminal and unfortunate," Mr. Goldman said.

Latest News

'Bogged down' advisors just want to have fun (again)
'Bogged down' advisors just want to have fun (again)

Jim Cahn, of Wealth Enhancement Group, lifts the lid on his firm's partnership model, his views on RIA M&A, and the widely slept-on reason why advisors are merging into larger organizations.

Vestwell unveils new emergency savings account offering
Vestwell unveils new emergency savings account offering

The fintech firm is cementing its status in the workplace savings space with its latest ESA offering, which employers can integrate into their existing benefits package.

'Money Mimosas' and other ways to show your Valentine financial love
'Money Mimosas' and other ways to show your Valentine financial love

Wealth managers offer unique ideas for couples to grow closer emotionally and financially.

Limra research finds financial confidence on the rise among Black American workers
Limra research finds financial confidence on the rise among Black American workers

Survey findings suggest increased sense of financial security and more optimistic 2025 outlook, while highlighting employers' role in ensuring retirement readiness.

DOGE efforts sideswipe muni bonds backed by federal lease payments
DOGE efforts sideswipe muni bonds backed by federal lease payments

Falling prices for some securities within the $4 trillion state and local government debt market spotlight how the push to shrink spending is sending shockwaves across the US.

SPONSORED Record growth: Interval funds emerge as key players in alternative investments

Blue Vault Alts Summit highlights the role of liquidity-focused funds in reshaping advisor strategies

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.