From “Overservicing” Clients to Building a $1B RIA
In Summary
What happens when an advisor builds a business around client service rather than operational efficiency?
Jason Diamond speaks with Michael Smith, Founder and Managing Partner of Emerald Advisors, about the path from a successful Merrill practice to an independent RIA that has grown from approximately $385mm to more than $1B in assets. Along the way, Michael shares the story of being told he was “overservicing” clients, why that moment became a catalyst for independence, and how a highly specialized service model fueled the firm’s growth. Drawing on lessons from a 24-year Navy career, Michael offers a perspective on leadership, specialization, client care, and what it takes to build a durable business in today’s wealth management landscape.
The Storyline
Growth is often viewed as the result of marketing, referrals, acquisitions, or scale.
Michael Smith sees it differently.
After building a successful practice at Merrill, Michael found himself at odds with the constraints of the traditional wirehouse model. What ultimately stood out wasn’t compensation, technology, or platform capabilities. It was a philosophical difference around client service.
When he was told he was spending too much time helping clients navigate tax planning, equity compensation, and other financial decisions outside the traditional scope of investment management, he began to question whether the model aligned with the way he wanted to serve families.
That realization eventually led him to launch Emerald Advisors in late 2019.
The firm started with roughly 85 clients and approximately $385mm in assets. Today, Emerald serves more than 225 families and oversees more than $1B in assets.
Throughout the conversation, Michael reflects on the lessons learned from building an independent firm, developing a niche around concentrated stock positions and executive compensation, navigating custodial and technology decisions, and creating a culture rooted in accountability and service.
Underlying it all is a simple belief: when firms become highly intentional about who they serve and how they serve them, growth often becomes the outcome rather than the objective.
Topics Covered
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Merrill breakaways and independence
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Client service as a growth driver
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RIA growth and scalability
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Organic growth strategies
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Concentrated stock positions and equity compensation planning
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Ideal client personas and niche specialization
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Schwab and Fidelity custody relationships
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Advisor succession and enterprise value
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Navy leadership principles in wealth management
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Advisor technology and infrastructure.
Listen and Learn Highlights for Advisors
Why did being accused of “overservicing” clients become a turning point? (08:15)
Michael explains how a conversation with management revealed a deeper misalignment between his client-service philosophy and the wirehouse model.
What does client service look like beyond portfolio management? (11:30)
The discussion explores how tax planning, equity compensation guidance, and proactive coordination can deepen client relationships.
Why can specialization accelerate growth? (15:45)
Michael shares why serving a defined niche often creates stronger referrals, greater expertise, and clearer positioning.
How has the RIA landscape evolved since 2019? (20:30)
Michael reflects on the rise of mega RIAs, changing technology capabilities, and why he believes independent firms still have significant advantages.
What role do custodians really play in an independent business? (23:15)
Michael discusses his experience working with Schwab and Fidelity and why he views custodians as strategic partners rather than competitors.
Is the wirehouse model still the right fit for some advisors? (26:45)
The conversation challenges the assumption that independence is the best path for everyone and explores the realities of running a business.
Does reaching $1 billion in assets actually change anything? (32:45)
Michael offers a practical perspective on growth, success, and why asset milestones can be misleading.
What can advisors learn from the “steamboat” philosophy? (37:15)
Drawing on his Navy experience, Michael shares a leadership framework that continues to shape how he approaches business building and decision-making.
Key Takeaways
Exceptional client service can become a meaningful competitive advantage when it extends beyond investment management.
Independence gave Michael the flexibility to build a service model that aligned with his philosophy rather than adapting his philosophy to fit the platform.
Developing a niche around executive compensation and concentrated stock positions helped accelerate Emerald’s growth.
The ability to make technology, custodial, and operational decisions quickly remains a significant advantage for independent firms.
Not every advisor should be independent. Running a business requires a different set of skills and responsibilities than serving clients alone.
Growth milestones are useful, but they do not define success. Michael believes success existed long before Emerald reached $1 billion in assets.
High-performing teams with a clear client focus often find that growth becomes a natural byproduct of execution.