1An independent registered investment advisor (RIA) is a professional advisory firm that offers advice about
securities, largely for a fee. RIAs are registered with the Securities and Exchange Commission (SEC) or their
state securities regulator and are subject to the Investment Advisers Act of 1940.
2The calculations apply a multiple of 2.0 times revenue in the RIA model and 1.8 times revenue in the Full
Affiliation model. This assumes that at the time of sale, the RIA model consists of 100% fee-based assets,
whereas there is still a mix of fee-based and non-fee-based assets in the Full Affiliation model. The
difference in comparable multiples is due to the unpredictable nature of the revenue generated by
non-fee-based assets.
The Economic Discovery Tool (Tool) is intended solely for use by investment professionals. Please see:
"Terms of Use and Important Information" prior to using the tool. The Tool simulates the pro forma financial
results of various hypothetical scenarios for establishing, operating, joining and/or selling an investment
advisory practice or firm and compares those simulated outcomes to various alternatives. The scenarios and
alternatives covered are not exhaustive and may not be representative of those you actually encounter. Moreover,
the simulated pro forma results are materially dependent on various assumptions and inputs, some of which are made
and specified by you and some of which are static. These assumptions and inputs may not reflect actual circumstances,
and thus the Tool is inherently limited and intended for general informational purposes only. The simulated pro forma
results do not reflect, and are not guarantees of, actual or future results. Your actual results may be materially
different than those simulated. Schwab makes no warranty of the accuracy or completeness of the Tool or the simulated
pro forma results and shall have no liability for your use of the Tool. The Tool is not intended to provide financial,
investment, legal, tax, or regulatory compliance advice. You are urged to consult your own professional advisors.
The results generated in this report are inherently limited and rely on certain assumptions,
including information provided by the advisory firms and investment professionals that
participated in the Charles Schwab RIA Benchmarking Study. Schwab did not independently
verify Benchmarking information nor did it examine the investment performance or client
service levels of the participating firms. The report may not be representative of others with
similar circumstances and your results may vary significantly. See Terms, Conditions, and Assumptions for further details and assumptions.
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