Independent RIAs have become the fastest-growing advisor channel as consolidators, equity incentives, and tax-efficient deal structures reshape recruiting – and expose growing tensions around career paths, ownership, and scale.

Sam Huszczo, founder of Michigan-based SGH Wealth Management, is an example of a smaller-scale RIA that has opted for a W-2 model for its 15 employees that manage $570 million in assets. His firm’s average employee is 27 years old, and he’s leveraged campus visits to colleges such as Michigan State to meet potential recruits.

“Our industry is literally no different than lawyers or accountants or audit people. We do a professional service, you need designations, and then you need to get clients. But why has the business model of wealth management always been this independent contractor pool thing?” asks Huszczo.

Michigan State offers a minor in financial planning and wealth management for students interested in that career path. Schwab has also been active on college campuses, awarding $15,000 to winners of its RIA Talent Advantage Student Scholarship.

“With wealth management firms, I think we’re going to be occupying skyscrapers across the country at some point in the next 15 years, but not on a business model that can’t scale. And I’m sorry, but the independent contractor route is unscalable,” adds Huszczo.