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Advisors may risk fallout from their association with embattled firms. In a recent survey, 25% of affluent investors who have moved a portion of their assets out of their financial services firms cited “lack of trust” as a primary motivator.†

† “Memo to advisors: Don’t lose clients’ trust,” Investment News, 02/14/2005.

What have been the rewards of dedicating the time and effort to starting your own firm?

Hear what David Bromelkamp, CEO of Allodium Investment Consultants in Minneapolis, MN, has to say.

Discover the benefits of working with us

Why move your business to Schwab Institutional? The answer is simple: Adopting the RIA model with Schwab Institutional is the clearest path to gaining more control over your practice.

In the last two years¹ alone, we’ve helped over 300 advisors move $31 billion in assets and 60,000 client accounts to our platform. We use a proven approach to helping you make the transition to Schwab Institutional, complete with customized strategy, planning and end-to-end coordination of the process. We can even help you manage all aspects of launching a new firm with Schwab Business Start-Up Solutions, which offers best in class tools and services.

Why advisors like you choose to work with us

How many times have you wished you could do things differently for your clients or receive a greater reward for the services you provide? As an independent registered investment advisor (RIA) working with Schwab Institutional, you can:

  • Have control over products and solutions for your clients, and have the advantage of Schwab Institutional’s leading platform:
  • Control your economics:
    • Receive 100% of the revenue you generate and have total control over managing expenses, to gain greater control of the net revenue you earn.  You have the opportunity to no longer be captive to “payout” structures or how various products align with “the grid”. *
    • Build non-taxable equity in your firm, creating a valuable asset as you near retirement.

      *Schwab Institutional does not play a role or share in your revenue, our focus is providing you the platform you need to be successful.
  • Get full support for your day-to-day operations:
    • Expert guidance in specific areas of practice management and back-office support, provided by consultants specializing in business operations, technology and more.
    • Access to the people you need, including a dedicated service team with an average tenure of 7.5 years, and subject matter experts for solving complex issues.
    • Stay on top of legal and compliance considerations through access to experts and compliance-related solutions from third parties.²
  • Retain clients and grow your firm:
    • Advisors who moved their business to Schwab Institutional enjoy excellent client retention rates – 90% on average.³
    • Some advisors experience a surge in business when they adopt the RIA model supported by Schwab Institutional – advisors who moved to Schwab Institutional grow assets an average of 23% per year vs. less than 10% at wirehouses.4

¹ 2005-2007 - Schwab Institutional Account Conversion Services Report (12/31/07)
² Schwab does not provide legal or compliance advice. 
³ Schwab Institutional Study 2006,
4 Schwab Institutional Study 2006 and Cerulli Associates 2006

Find out what it means to become an RIA

What exactly is an independent financial advisor? More formally known as “Registered Investment Advisors,” or “RIAs,” independent advisors offer advice for a fee and provide financial products from across the entire market. In addition, RIAs:

  • May charge a management fee based on a percentage of a client’s total portfolio (the range is typically 80-150 basis points per year).
  • Independently register with the Securities and Exchange Commission (SEC) or their state securities regulator (as applicable) and are regulated by the Investment Advisors Act of 1940, which means they have a fiduciary duty to act in the best interest of their clients.
  • Use a custodian such as Schwab Institutional to hold their clients’ assets, execute and settle trades, and provide other products, services and expertise. Or they may use a broker-dealer, bank or other custodial resource instead.

Case study: David Bromelkamp

Learn how Schwab Institutional connected one advisor to a partner for operations support.

In 2005 when David Bromelkamp concluded that the best way to help clients was to build his own firm, he turned to Schwab Institutional and the support of Jack Barber, a Business Development Officer with 13 years of experience working at Schwab.

The process began with a conversation. According to David, “Jack Barber started our first meeting by asking me to tell the whole story about why I needed to establish an independent investment advisory firm. He wanted to understand what I wanted to accomplish before making any specific recommendations. The best question he asked — what was our core competency — helped focus me on the unique strengths and skills that became the foundation of our firm.”

Once they defined the services the new firm would offer, David and Jack worked together to determine which tasks the new firm would handle in-house, and which areas needed support from outside resources. David’s biggest concern was running the daily operations of the firm, but, “Jack helped me realize that I didn’t have to do it all: I could either hire or outsource the help that I needed, to allow me to stay focused on my core goals of attracting and retaining investment advisory clients.”

The next step was connecting David to the right outside resources. According to Jack, “Today, the outside resources available to advisors are numerous. It was my job to understand David’s goals, and then introduce him to the people and organizations that could match his needs. So I brought in experts from Schwab to evaluate and narrow down a list of potential partners for David.” David chose one of the operations partners Jack recommended, and has built a strong partnership with them that continues today.

According to David, working closely with Jack made all the difference: “One of the best decisions Jack helped me make was hiring a professional manager and a partner to run the operations of the firm. If Jack hadn’t introduced me to those resources, I think it would have been a rude awakening to be running my own business. With their support, I can focus on client service and business development, and I’m very happy with my decision.”

The mention of the above firm is not, and should not be construed as a recommendation, endorsement or sponsorship by Schwab. This firm is not affiliated with or an employee of Schwab. You must decide whether to hire any firm and the appropriateness of their services for you or your firm. Schwab does not supervise third party firms and takes no responsibility to monitor the services they provide to you.

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