Growth Strategies: An Ex-Merrill Advisor on Going from Practice to Firm to $4B Enterprise

The Diamond Podcast for Financial Advisors

With Brett Bernstein, CEO and Co-Founder of XML Financial Group

Overview

Brett Bernstein realized that he could not achieve his vision and goals within the wirehouse world. So he set out to build his own practice. When he outgrew that, he built a firm. Now, he’s building an enterprise.

Listen in…

> Download a transcript of this episode…

NOTE: The views and opinions expressed by the guests on this podcast are their own and do not necessarily reflect the views and opinions of Diamond Consultants. Neither Diamond Consultants nor the guests on this podcast are compensated in any way for their participation.

About this episode…

Growth is not something that happens by chance.

It is the result of just the right combination of vision, strategic planning, determination, and the ability to act upon each.

Brett Bernstein is one such advisor who, just a couple of years after becoming a licensed broker at Merrill, recognized he wanted more latitude in how he could build and grow his business.

That is, it seemed more difficult to achieve his goals as one of thousands in a large firm that has no choice but to manage to the lowest common denominator.

No doubt, the wirehouses provide the support, platforms, and tech stacks that serve most advisors and their clients well, but they’re not for everyone.

As one of the latter group, Brett and his team moved on to LPL Financial in 2004 – a firm that looked very different than it does today – where they grew the business to some $550mm in assets. But, as Brett put it, they outgrew the broker dealer model they were in.

In 2016, Brett and his team took the next big leap to independence, partnering with Focus Financial.

For Brett, the steps represented what he describes as moving from building a practice, then a firm, and now an enterprise. Each with a goal of putting the right pieces in place to impact growth.

And when it comes to growth, it’s pretty clear Brett and his team know what they’re doing: Today, XML Financial Group (a name that’s derived from “ex-Merrill Lynch”) has client assets in the range of $4B.

In this episode, Mindy and Brett have a candid conversation about what it really takes to grow, including:

• The limitations he felt that kept him from thriving—and how he resolved them through the transitions.
• The decision to forgo a recruiting deal from another big firm—and whether that decision had an impact on his bottom line.
• The value that Focus Financial brings to the table—and why he refers to them as their horsepower to help turbocharge growth.
• The story behind the firm’s name—and how it plays into their culture and value proposition.
• And much more!

It’s a real-world narrative around what it takes to really grow and thrive in the wealth management industry with plenty of actionable advice from an industry peer.

Want to learn more about where, why, and how advisors like you are moving? Click to contact us or call 908-879-1002.

Related Resources

Celebrating Independence: Different Perspectives on How to Achieve Greater Freedom and Control
Independence in the wealth management industry is much like your local ice cream shop: There are many different flavors to choose from.

The Independent Alpha: Making the Breakaway Math Add Up
Advisors breaking away for independence know what they are giving up, so how can they justify making this leap? The answer starts and ends with growth.

Financial Advisor Economics: From Transition and Beyond
In an active recruiting environment, advisors are eager to understand where deals are at and where they’re headed. Beyond a transition deal, how can advisors monetize their business over time – thinking about the short-, mid- and long-term – whether they are in an employee or independent model?

BRETT BERNSTEIN, CFP®
CEO & Co-founder

Brett Bernstein is the CEO and Co-founder of XML Financial Group. He manages the operations of the firm, including the firm’s M&A strategy. Brett is an active financial advisor assisting clients with his holistic approach to goal-setting and problem-solving. Prior to co-founding XML in 2004, he was a Vice President and Senior Financial Advisor at Merrill Lynch, where he was a designated Producing Sales Manager for a multi-billion-dollar complex.

Brett is a serial entrepreneur actively investing in many start-up companies and has led his firm in three acquisitions. He earned his Certified Financial Planner® professional designation in 2003. He is a sought-after speaker and industry commentator having numerous contributions in the Wall Street Journal, Financial Advisor Magazine, Investment News, and Forbes.

Brett received a Bachelor of Science in finance from the University of Maryland’s Robert H. Smith School of Business and continued his education at Georgetown University and Harvard Business School’s Executive Leadership Program.

Brett has served on various non-profit organization boards in numerous leadership positions but over the past 12 years has served as the Board Chair of So What Else, a local, grassroots charity helping at-risk youth with after-school and summer programs and food recovery. Brett also serves as a Board Trustee for the Bullis School in Potomac, Maryland. Brett volunteers his time to the Bullis School’s entrepreneurial program, sponsoring the Capstone Entrepreneurial Shark Tank competition and was recently named to Bullis’ Entrepreneurs in Residence.

Brett is also active in volunteering at the Dingman Center for Entrepreneurship at the University of Maryland’s Robert H. Smith School of Business as an Advisor and Subject Matter Expert. In Brett’s free time, he enjoys spending time at Bethany Beach, DE with his wife, two teenage daughters, and two dogs.

Also available on your favorite podcast app and other media sites

Browse other episodes in this podcast series…