From “Overservicing” Clients to Building a $1B RIA: A Merrill Breakaway Story

Michael Smith—Managing Partner and Founder, Emerald Advisors

Michael Smith shares how a client-first philosophy, niche specialization, and independence helped Emerald Advisors grow from $385mm to more than $1B in assets.

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

• Merrill breakaways and independence
• Client service as a growth driver
• Building an RIA
• RIA growth and scalability
• Organic growth strategies
• Concentrated stock positions and equity compensation planning
• Ideal client personas and niche specialization
• Schwab and Fidelity custody relationships
• Advisor succession and enterprise value
• Navy leadership principles in wealth management
• The rise of mega RIAs
• Advisor technology and infrastructure

> Download a transcript of this episode…

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 te