Reasons to be optimistic: Schwab leaders and management guru Simon Sinek address high-energy RIA audience at Schwab Impact 2025
Key Takeaways:
- Schwab CEO Rick Wurster highlighted the continued growth of new RIA firms and encouraged advisors to capitalize on the "bull market in convenience" by serving as clients' single point of contact across financial relationships.
- Schwab strategists expressed cautious optimism about markets and the economy, with Liz Ann Sonders noting AI sector strength differs from the Dotcom bubble due to strong balance sheets and actual earnings, while predicting AI will replace tasks rather than entire occupations.
- Management expert Simon Sinek urged advisors to focus on their "why" before the "how," emphasizing that leadership is a learnable skill.
The vibe was positive and the energy high at this year’s Schwab Impact. Turnout of 5,400 total attendees and 2,800 RIAs filled the convention center in downtown Denver. Schwab has always had a unique hold on the growing RIA market. The company created a platform and invested in the technology fiduciary advisors need to support their clients and grow their business.
Schwab voices set the tone
President & CEO Rick Wurster in a keynote address spoke to the fact that, even with extensive consolidation and M&A, the number of new RIA firms keeps growing.
There is a “bull market in convenience” across all aspects of the economy that he encouraged RIAs to embrace. The average consumer has relationships with seven financial institutions, and RIAs can help make their lives easier by serving as a single point of contact.
A panel of Schwab strategists including Kathy Jones, Liz Ann Sonders and Michael Thomson were optimistic, for the most part, on the outlook for the economy, markets and policymaking—though not without highlighting a few clouds on the horizon.
Jones noted the Fed appears to be nearing a neutral rate and another cut in December is far from certain. While bonds have done well in 2025, she pointed to potential cracks in private credit markets.
Despite the market’s hiccup caused by Michael Burry’s announced short on AI stocks, Sonders noted that the run up in the sector is different from the Dotcom boom/bubble as the leading AI companies have strong balance sheets and actual earnings. However, she called out the recent punishment factor for companies with earnings misses relative to beats and thinks the market will shift away from the hyperscalers. In the end she believes usage of AI is lowering the cost of work and that will accrue to the benefit of margins; she predicted AI will likely be a replacer of tasks versus full occupations.
Sinek offers advisors insights on leadership and optimism
Aside from the plethora of Schwab voices, the mainstage filled to capacity to hear an inspiring talk on leadership and business from management guru Simon Sinek.
Sinek advised advisors building their teams to focus on their “why” before focusing on the “how.” “Know what your vision is and stay true to it. Don't get distracted by changes in politics or by shiny objects.”
In a fireside chat, he answered several questions geared toward his advisor audience:
On Leadership: Sinek focused on the qualities of leaders, saying leadership is a choice, and not everyone is cut out for it. It is a teachable and learnable skill that the best leaders cultivate.
On the dramatic changes being wrought be AI: “Don't rail against AI, it is like railing against the internet. Ask instead, how do we make our product better while keeping what is special about what we do?” Leaders at all companies need an AI vision for how they are going to use it, how to embrace it for certain tasks and its ethical use. Focus on what can’t be replaced by AI. “The future is human. Focus on the things AI cannot do.”
He warned young people to invest in learning the skills first and only then using AI to help them be more efficient. “AI can be your collaborative partner, but it can’t replace your thinking. If you let AI do all the work for you, you'll have a beginner brain and will never learn the critical thinking skills.”
On culture: When asked how an advisory firm can create a culture where everyone is passionate and no one ever leaves, Sinek said passion is an output: “If you give people work that they care about, passion will be the output. If you define a vision that is bigger than yourselves, they will feel like they matter.”
Sinek also stressed that employees want a “safe” environment, but that doesn’t mean no accountability. It does mean that you can have difficult conversations without employees feeling like they are going to lose their jobs.
On helping clients find meaning as they move into retirement: Advisors have an opportunity to help clients find their “why” in retirement, but Sinek noted that a person’s “why” doesn’t change throughout their lifetime. Yet many people have never separated their job and accomplishments from their identity. When the job is gone, these people lack purpose. “Get them to tell specific stories from their career about work that they loved being a part of. Look for markers of love not accomplishment.”
One life hack: Sinek offered one important life skill he learned working with the military. In the private sector, individuals create good work and hold it up to be admired. Military leaders hold up their work and ask for “spears.” They invite others to poke holes in their thinking. “This is a very effective practice of self-improvement.”
On optimism: Leaders must be optimistic, but not naive. Blind positivity isn't helpful, and it is important to be realistic. Strong leaders believe that the future is bright. They accept reality, are honest when they don't know all the answers and know that as a team they can get through any challenge. “The only true thing you can rely on is each other. Everything else is out of your control.”
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