Financial Advisor Success Podcast: Ep 462

“Making The Tough Decision To Change Firms To Find the Path to Equity Ownership You’re Seeking”

Host: Michael Kitces
Guest: Maggie Rapplean, Partner at Moneta Group
Date: November 4, 2025

Episode Overview

In this episode, Michael Kitces interviews Maggie Rapplean, a partner at Moneta Group, about her unconventional journey toward equity ownership in the financial advisory industry. Maggie discusses her transitions through different firm models—from a wirehouse to a startup RIA, and ultimately to Moneta—detailing the motivations, challenges, and decisions that shaped her path to partnership and building her own successful advisory team. The conversation delivers candid insights into the complexities of equity paths, practice growth, business succession, integrating work and family life, and the importance of business development for advisors seeking long-term independence and success.

Key Discussion Points & Insights

1. The Drive for Ownership and Autonomy

Motivation for Equity:

• Maggie’s entrepreneurial mindset was present from the start of her career.
• Early wirehouse observations revealed that lack of equity limits end-of-career choices for advisors.
• Ownership provides flexibility and control in how to serve clients, design teams, and monetization at exit.

“I wanted the opportunity to own my own business or have some level of ownership in whatever entity it was that I was operating in.”
—Maggie [04:49]

2. Career Path & Firm Transitions

a. Starting in the Wirehouse Model

• Benefitted from extensive training, camaraderie, and resources—“the training was amazing.”
• Saw the limitations: “the advisors don’t really actually have ownership equity in their client base.” [06:33]

b. Moving to a Startup RIA

• Joined mentor in breaking away as an independent RIA, becoming direct with a custodian.
• Realized loss of support: resources, camaraderie, infrastructure—all missing.
• No clear, defined path to partnership or equity.
• Maggie’s business development skills made it “demotivating to help create something I couldn’t eventually own.” [13:56]

c. Searching for a Sustainable Equity Path

• Realized ownership opportunities are rare, especially for younger advisors.
• “I was essentially selling my future for a comfortable salary.” [08:34]
• Moneta offered clear, structured paths to both practice and firm-level equity, with flexibility in team design and ownership.

3. Transition to Moneta Group

• Brought ~$200,000 in revenue and several self-developed clients. [21:27]
• Took over clients from a retiring Moneta partner (inheritance plus opportunity to buy the book via earnout).
• Clearly outlined metrics for partnership (“four pillars”: business development, operations, leadership, and practice management) [23:22].
• Unique model: full ownership over clients she brought in and those purchased, with the ability to grow into additional firm equity as revenue increases.

4. Practice Structure & Growth at Moneta

• Started with ~26 inherited clients/$450k revenue and own clients/revenue; now at 108 clients and $1.6M revenue. [36:13, 39:27]
• Successfully transitioned most clients from the prior advisor by:
  • Extended, multi-year handoff (3 years), building “relationships with both advisor and clients.” [54:45]
  • Providing new value (re-doing financial plans, deeper tax/estate advice, enhanced communication, generational connections).
• Grew additional client base through direct business development, another internal advisory team (Moneta Advisory Services), client referrals, and being visible in the community.

“Clients seem to be relieved that there was a plan.”
—Maggie [40:25]

5. The Partnership Process & Economics

• Partnership eligibility: minimum $500k in revenue PLUS demonstration of operational/leadership capabilities.
• Two streams of profit/equity:
  • Ownership of team/practice client base.
  • Option to buy units/shares in Moneta’s holding company, with distributions based on firm profits.
• Earnout structure for purchasing book; designed over a 6-year period, motivated by both growth and risk minimization.

“It was like a Roth conversion...the sooner I do this and the younger I do this...the more upside I’m going to have.”
—Maggie [76:51]

6. Business Development and Growth Mindset

• Early focus: “If you can bring on $1M in assets, over time you can bring on $10M or $100M.” [14:18]
• Modern growth comes 50% from client referrals, the rest via visibility, accolades, and proactive outreach.
• Advice to young advisors: prioritize business development and soft skills EARLY, even if not required by your firm.

“Even if you get into a role where you’re paid a salary and not really required to bring on clients, you should still focus on business development.”
—Maggie [81:24]

7. Balancing Ownership and Work-Life Integration

• Surprised by the level of flexibility and control that practice ownership allows while still being able to “be present as a parent.”
• The journey included navigating family changes, COVID disruptions, and building a support network (“built an army” for family/child care support).

“I have more freedom and flexibility than I thought I was going to have...young parents in the industry should know that over time it does get easier and you can design your own life.”
—Maggie [73:09]

Notable Quotes & Memorable Moments

• Finding the right firm:

  “Do thorough research on the firm...making sure they 100% align with your values.”
  —Maggie [79:18]

• On supporting clients through succession:

  “We gave them three years...he was sitting with me in every single review...eventually worked his way out of the relationship.”
  —Maggie [54:45]

• On setbacks and perseverance:

  “I wasn’t sure I made the right choice at that time...in hindsight, it was the smartest thing I ever did.”
  —Maggie [75:38]

• On defining success:

  “I just want freedom...to do things with my family, take good care of people, set an example for my kids. As long as I know I’ve taken good care of people, that’s success to me.”
  —Maggie [85:06]

Timestamps for Key Segments

| Timestamp | Segment | |------------|--------------------------------------------------------------------------| | 04:49 | Why Maggie pursued equity and ownership | | 08:34 | From wirehouse to independent RIA: Pros, cons, and turning points | | 13:56 | Realizing need for clear equity path; misalignment at previous RIA | | 20:19 | Transition to Moneta; timing with family and pandemic | | 21:27 | What Maggie brought to Moneta; succession opportunity | | 23:46 | Moneta’s four pillars and partnership process | | 36:13 | Starting base (“about $250k revenue”); growth to present | | 40:25 | Building trust in client transitions; emotional responses | | 54:45 | Details on three-year client transition process | | 73:09 | Work-life integration surprise: achieving flexibility | | 76:51 | Reflecting on early transitions as “like a Roth conversion” | | 81:24 | Advice to younger advisors: develop business development skills early | | 85:06 | Maggie’s current definition of success |

Conclusion

Maggie Rapplean’s episode is a rich resource for advisors seeking real-life guidance on navigating career choices, practice growth, and the pursuit of equity in advisory firms. Her story is one of initiative, strategic risk-taking, and the persistence to build a business that provides both personal and professional fulfillment.

Listen to the full episode for a granular, behind-the-scenes perspective on building ownership, leadership, and balance in today’s financial advisory world.