Jul 11, 2025
Building A $800M Advisory Firm
Jack Firestone's path to building an $800 million registered investment advisory firm reads like anything but a typical financial advisor success story. For nearly 20 years, he lived and breathed the arts world, managing symphony orchestras across the country, from Albany, New York to Louisville, Kentucky, and eventually Miami, Florida. "My journey began as a symphony orchestra manager," Firestone recalls. "I spent the first nearly 20 years of my career in the arts. 17 of those managing symphony orchestras."
But his arts career came to an abrupt halt in Miami, where he became "the 10th manager in 11 years" of an orchestra that he ultimately had to shut down just six months after his arrival. It was a devastating professional setback that would prove to be the catalyst for one of the most remarkable career transformations in the financial advisory industry.
The Career Pivot That Changed Everything
At 40 years old, Firestone found himself at a crossroads. He went back to school, earning his MBA and pursuing the CERTIFIED FINANCIAL PLANNER™ designation. But breaking into the financial services industry proved more challenging than he anticipated.
"What I really wanted to do was be a strategic planner and nobody would hire me," Firestone explains. "I was 40 years old. I had a beard. I went to all the banks, all the businesses in town. They said, lose the beard. We'll start you in management training program for 20 grand a year."
The response from traditional financial institutions was universally discouraging. They wanted him to start at the bottom, despite his extensive experience managing multi-million dollar organizations and complex payrolls. "I said, that's all well and good, but I've been a senior executive managing multi-billion dollar firms and hundred percent of payrolls for the last 15 years. It'll take me six months to learn your business."
In a twist of irony, Firestone notes that "none of those corporations that I interviewed with are still in business. They all went belly up. The banks folded. There's no major bank in Florida now."
The Harold Evensky Connection: A Mentorship That Launched a Career
Firestone's break came through meeting Harold Evensky, a legendary figure in the financial planning world who would become his mentor and business partner. Evensky, who was working with Drexel Burnham Lambert at the time, recognized Firestone's potential and invited him to join his firm.
"He said, Jack, you want to join the firm? That was 1986, October 1st of 1986. I was one of his first partners, and we spent five years together learning the business."
The partnership with Evensky & Brown (later Evensky, Brown & Katz) provided Firestone with the foundation he needed to understand the financial planning business. But it was also where he learned what he didn't want to do.
"It was a commissioned business there... that really wasn't what I wanted to do. All the partners were individual practices, individual silos, as we called them."
The Leap to Independence: Building a Fee-Only Practice
The turning point came during Thanksgiving weekend of 1991, when Evensky's firm decided to transition to a fee-only model with specific requirements that didn't align with Firestone's vision.
"I said, it's time for me to go out on my own. I went out as a fee only planner as well. I kept my licenses for a few years, ultimately gave them up, and I was a solo practitioner."
For the next ten years, Firestone built his practice methodically, focusing on delivering exceptional client service rather than aggressive growth. This period of solo practice taught him the fundamentals of running a client-centric advisory firm.
The Partnership That Changed Everything: Meeting Carol Kaufman
In December 1996, ten years after starting his financial planning career, Firestone met Carol Kaufman, a meeting that would transform his solo practice into a thriving multi-generational wealth management firm.
"We had a three hour lunch. She was referred by [Evensky]. She actually wanted a mentor. She had a fresh CFP. She spent ten years with her family. She had three kids, and she said it was time to go back to work."
What started as a mentorship arrangement quickly evolved into a true partnership. Firestone's approach was both generous and strategic: "I said, I'll mentor you. Just bring a computer and a desk, show up on Monday."
After working together for a year, they incorporated and moved their SEC registration. Three years later, Firestone made what he calls "the best decision I ever made", giving Kaufman half the firm for sweat equity.
"She made me rich," Firestone says simply. "We built a wonderful practice."
The Growth Engine: Multi-Generational Wealth Management
The secret to Firestone Capital Management's remarkable growth wasn't aggressive marketing or complex sales strategies. Instead, it was built on a foundation of exceptional client service and a unique approach to multi-generational wealth management.
The Client-Centric Philosophy
"The secret sauce was we did everything for the client. We did very little marketing. We weren't out trying to build the biggest practice. We just wanted to build the most client centric practice."
This philosophy attracted a specific type of client, professionals in their 40s and 50s who were at inflection points in their careers. These clients became the foundation of what would become a multi-generational wealth management powerhouse.
The Referral Generation Machine
"What really built the practice is we brought in our peer group, the 40 to 50 year olds who were at inflection points in their careers. They saw what we did as real financial planners, and they looked at their parents and said, my parents aren't getting this kind of service. Would you meet with my parents? And that's where the real money was."
This approach created a self-perpetuating cycle of growth:
Generation 1: The initial clients in their 40s-50s
Generation 2: Their parents (where "the real money was")
Generation 3: Their children, who became clients at age 21 regardless of financial qualification
Generation 4: Eventually, great-grandchildren
"We built a multi-generational practice," Firestone explains. "We started with the peer group that we had. They had very young children or growing children. They brought in their parents. When their children grew up, when the children reached 21, they became clients even though they weren't financially qualified. We took them anyhow."
The Long-Term Vision
This multi-generational approach required a long-term perspective that many advisory firms lack. Firestone and his team were essentially investing in relationships that would pay dividends for decades.
"We helped their children build their own financial wealth and make the right decisions. Because frequently, young people are sold insurance they don't need, the wrong kind of insurance. Financial planners treat insurance as a risk management tool. If you don't have a risk, you don't need insurance."
As the original clients aged and passed away, the firm maintained relationships with subsequent generations while also bringing in extended family members who inherited wealth.
The Technology Evolution: From $795 Hard Drives to Modern Platforms
Firestone's career spanned one of the most dramatic technological transformations in financial services history. His observations about this evolution provide unique insights into how technology has both helped and complicated the advisory business.
The Early Days of Financial Planning Technology
"I built my first computer in 1986," Firestone recalls. "I got a C prompt and I said, now what do I do? But I paid extra. I paid $795 for 20MB of hard drive."
To put this in perspective, he notes that "now we carry 64GB in our pockets." The firm was an early adopter of cutting-edge technology, working with some of the first financial planning software available.
"When I first started with [Evensky], he had state of the art. He got the first Hewlett-Packard laser printer. He had a Xerox Parc, WYSIWYG... It took one hour to calculate a financial plan and if you made a mistake and had to retype something, it took another hour to reformat the whole thing and do it all over again."
The Modern Era: Speed and Efficiency
The contrast with today's technology couldn't be more stark: "Now we push a button [and] our financial planning software is fast enough that we can change scenarios, push a button and it flashes up in three seconds."
Early Adoption of Custodial Platforms
Firestone Capital Management was also among the very first advisory firms to embrace what would become the modern RIA custodial model. "We linked up with Charles Schwab. We were one of the very first advisory firms to sign up with what is now Schwab Institutional. Our master account was like number 308."
This early adoption of technology and custodial platforms gave the firm significant operational advantages, but it also required continuous learning and adaptation.
The Lean Machine Philosophy: Efficiency Through Simplicity
One of the most striking aspects of Firestone's approach was his commitment to running what he calls a "lean machine." This philosophy permeated every aspect of the firm's operations and contributed significantly to both its profitability and its ability to maintain work-life balance.
Staffing Strategy
"We were very, very lean. We had one support person, and then we hired an operations manager about 11 or 12 years ago. We never knew what she did, but she knew exactly what to do."
The firm's approach to staffing was deliberate and strategic:
One operations manager who handled daily posting and compliance
One client service person who grew from receptionist to qualified payroll planner
Minimal administrative overhead
"Everybody is credentialed in the whole firm except the receptionist," Firestone notes, emphasizing the firm's commitment to having qualified professionals in every client-facing role.
The Contrast with Industry Norms
This lean approach stood in stark contrast to many other advisory firms. "At [Evensky's firm] at 14 or 15 people, we had 3 or 4 in primary [roles]. I think it's eight now."
Work-Life Balance
The efficiency of the lean model enabled something that many advisory firms struggle with: genuine work-life balance.
"We never felt overwhelmed. We came in at 9:00 in the morning and basically left at five. Our managing partner now comes in at ten and leaves at six because he takes his kids to school. He goes to their baseball games, their soccer games... their band concerts."
This wasn't just about personal preference, it was a strategic decision about the type of practice they wanted to build.
"It was a lifestyle practice. It was not a dog eat dog growth machine... We didn't care about making money. I mean, we made money as a result of doing good work for our clients."
The Value Proposition: Beyond Portfolio Management
Firestone's approach to client relationships was built on a clear understanding of where real value lies in the advisory relationship. His framework for explaining this to clients became a cornerstone of the firm's value proposition.
The 25/75 Rule
"I would tell clients at initial meetings, managing your money is only worth 25 basis points. You can go to online platforms and for 25 basis points they'll manage your portfolio just fine. What are you paying for the other 75 basis points?"
This honest assessment of portfolio management's limited value allowed Firestone to focus on where he could truly add value:
Life planning and strategic decision-making
Risk management and insurance analysis
Multi-generational wealth transfer planning
Behavioral coaching during market volatility
The Real Value: Strategic Financial Life Planning
"All of the other things that money [and] wealth manager provides you are helping you make the right strategic decisions in your financial life," Firestone explains. "That's where the value is."
This approach resonated with clients who understood that investment management, while important, was just one component of comprehensive financial planning.
Fee Structure and Value Alignment
The firm's fee structure reflected this value-focused approach:
100 basis points maximum (compared to industry standards of 120-150 basis points)
50 basis points on the first million for some clients
Significant fee reductions for family relationships over $5 million
Aggregated family relationship pricing
"We were a lean machine, inexpensive," Firestone notes, emphasizing how operational efficiency allowed them to offer competitive pricing while maintaining high service levels.
Crisis Management: The Human Element in Market Volatility
Throughout his 37-year career, Firestone experienced numerous market crises and economic downturns. His approach to managing client relationships during these challenging periods provides valuable insights into the behavioral aspects of wealth management.
The Constant Nature of Market Crises
"There was something every 2 or 3 years," Firestone recalls, referring to the various market disruptions that occurred throughout his career, from the dot-com bubble to the 2008 financial crisis and beyond.
The Advisor's Role During Market Stress
"The hardest part of being a wealth manager is keeping people from acting on their fears, because if you let them act on their fears, that's when they do damage to the wealth."
This insight captures one of the most critical but often underappreciated aspects of the advisory relationship: behavioral coaching during times of market stress.
Communication Strategy During Crises
The firm's approach to crisis communication was proactive and educational:
"We were very communicative with our clients when things went haywire. We sent out blast emails that day. Here's what's going on in the market. Here's what it means."
This immediate, transparent communication helped clients understand market events in context and reduced the likelihood of panic-driven decisions.
The Philosophy of Emotional vs. Action-Based Responses
Firestone developed a simple but powerful framework for helping clients navigate market volatility:
"You can panic, you can stress, you can do anything. Just don't [act]. Be human. React, but don't act."
This approach acknowledged the natural human response to market stress while preventing the destructive actions that often result from fear-based decision-making.
The Technology Paradox: Enabler and Complicator
Despite being an early adopter of financial planning technology, Firestone had a nuanced view of technology's role in the advisory business. His observations about the benefits and challenges of technological advancement provide important insights for modern advisory practices.
The Benefits of Technological Advancement
Technology clearly enabled many aspects of the firm's operations:
Faster financial planning calculations and scenario analysis
Improved client communication and reporting
More efficient portfolio management and rebalancing
Better compliance and audit trails
The Complications of Modern Technology
However, Firestone also recognized the challenges that came with technological advancement:
"[Technology] made things easier but it also complicated everything that we did. So one of the reasons I retired when I did is I didn't want to learn a whole new software system to manage portfolios."
The constant need to adapt to new systems and platforms became a significant burden, particularly for experienced advisors who had already mastered previous generations of tools.
The Learning Curve Challenge
"We installed Tamarack in 2013, and it was a full week of training... Then we had to install the Microsoft Dynamics CRM, which I never did learn."
This experience highlights a common challenge in the advisory industry: the ongoing need to invest time and resources in learning new technologies, even when existing systems are working well.
The SEC and Technology
The firm's relationship with technology was validated by their regulatory examinations:
"The last audit we went through was all about technology and cybersecurity, and we knew so much more than the auditors that they couldn't even find anything to issue a letter on."
This success came from their commitment to staying current with technology trends and maintaining robust systems and procedures.
Investment Philosophy: The Limits of Active Management
Firestone's approach to investment management was refreshingly honest about the limitations of active management and the importance of keeping investment costs low.
The Reality of Active Management
"The problem is you're going to get what the markets are going to give you. And there's very little that money managers can do to improve the results of the markets."
This perspective, while not widely shared in the industry, is supported by decades of academic research and practical experience.
The Evidence Against Active Management
"If you look at active mutual funds, so few of them have outperformed just the basic S&P. So active management is really a sales vehicle and not necessarily a viable strategy."
This honest assessment of active management's track record informed the firm's investment approach and helped clients maintain realistic expectations about investment returns.
The Winning Strategy
Firestone's investment philosophy was built on time-tested principles:
Market cap weighted portfolio construction
Broad sector diversification
Low expense ratios
Minimal trading activity
Regular rebalancing when allocations drift
"If you invest in all the sectors of the market, have a market cap weighted portfolio, you're going to do well by keeping your expenses low, by not trading too much, by rebalancing on a regular basis when things get out of whack."
This approach freed up time and mental energy to focus on the areas where advisors can truly add value: strategic planning, risk management, and behavioral coaching.
The Human Element: Why People Still Want People
Despite the technological advances and increasing automation in financial services, Firestone remained convinced that the human element of advisory relationships would remain crucial.
The Concierge Model
"People still want to deal with people. They don't want to deal with computers, they don't want questions answered by chatbots... like concierge doctors. People are willing to pay an annual fee to have a doctor that you can text, and they'll text back."
This analogy to concierge medicine captures the premium that people are willing to pay for personalized, human interaction in professional services.
The Therapist Role
The emotional aspects of money management cannot be automated or systematized away:
"Money means different things to different people. For very few people is it just a commodity. There are major emotional attachments to money, fear, greed. All kinds of emotions come into play."
Understanding and managing these emotional aspects requires human judgment, empathy, and relationship skills that technology cannot replicate.
The Filtering Role
"You have to filter all of that and understand the person you're dealing with and what is that relationship."
This filtering and interpretation role, understanding what clients really need versus what they think they want, remains a fundamentally human capability.
The Retirement Transition: Life After Building an $800 Million Firm
Firestone's retirement provides insights into both the personal and professional aspects of transitioning out of a successful advisory practice.
The Timing Decision
After 37 years in the business, Firestone retired at age 77, having built the firm from a solo practice to an $800 million RIA. The decision was influenced by both personal factors and the changing nature of the business.
Succession Planning Success
The firm's succession planning proved successful, with the managing partner (Anthony) taking over operations while maintaining the firm's culture and client service standards.
"I just call Anthony and say, just do whatever," Firestone says about how his own money is now managed, demonstrating his confidence in the succession plan.
Continuing Care and Tax Planning
Even in retirement, Firestone couldn't completely leave his advisory instincts behind. Moving to a continuing care retirement community provided both personal benefits and tax planning opportunities that he shared with fellow residents.
"When you move into a continuing care retirement community, there are very substantial tax benefits. We pay an entrance fee, and a substantial portion of our entrance fee is a tax deduction."
The Advice Continues
"I've given significant advice up here," Firestone notes, describing how he helped fellow residents optimize their tax situations by coordinating IRA distributions with the tax deductions from their entrance fees.
Key Lessons for Modern Advisory Practices
Firestone's journey from orchestra manager to successful RIA founder offers several important lessons for today's financial advisors:
1. Client Service Over Marketing
The firm's growth was driven almost entirely by referrals from satisfied clients rather than traditional marketing efforts. This approach required:
Exceptional client service
Deep, multi-generational relationships
Transparent communication
Reasonable fees aligned with value delivered
2. The Power of Partnerships
Firestone's partnership with Carol Kaufman demonstrates the importance of finding the right people and treating them generously. Giving her half the firm for sweat equity was "the best decision I ever made."
3. Operational Efficiency
Running a lean operation enabled both profitability and work-life balance. This required:
Strategic hiring decisions
Investment in the right technology
Efficient processes and procedures
Focus on high-value activities
4. Multi-Generational Thinking
Building relationships with multiple generations of families created a sustainable competitive advantage and steady growth engine.
5. Honest Value Proposition
Being transparent about the limitations of portfolio management and focusing on areas of genuine value creation built trust and justified fees.
6. Technology as Tool, Not Master
While embracing helpful technology, the firm never lost sight of the human elements that drive client satisfaction and loyalty.
The Future of Financial Advisory
As the industry continues to evolve, Firestone's experience provides valuable perspective on what's likely to change and what will remain constant.
What Technology Can and Cannot Do
While AI and automation will continue to improve operational efficiency and reduce costs for routine tasks, the human elements of advisory relationships, emotional intelligence, strategic thinking, and relationship management, will remain crucial.
The Continuing Importance of Advice
"Those firms that are delivering real service and real value to the clients, there's not a lot of fee pressure," Firestone observes, suggesting that advisors who focus on genuine value creation will continue to thrive.
The Wealth Transfer Opportunity
The massive wealth transfer from baby boomers to younger generations presents both opportunities and challenges for advisory firms. Those that can successfully navigate multi-generational relationships will be best positioned for long-term success.
Conclusion: The Enduring Principles of Successful Advisory Practice
Jack Firestone's journey from a 40-year-old orchestra manager with a beard to the founder of an $800 million RIA demonstrates that success in the advisory business isn't about following a prescribed formula. Instead, it's about understanding and consistently applying fundamental principles:
Put clients first, always
Build genuine relationships, not just business transactions
Operate efficiently and maintain reasonable fees
Be honest about what you can and cannot do
Focus on areas where you can truly add value
Invest in people and treat them well
Think long-term, not just quarterly
These principles, while simple to state, require discipline and commitment to execute consistently over decades. Firestone's story shows that when these principles are applied with integrity and persistence, they can create not just a successful business, but a meaningful career that makes a real difference in people's lives.
For financial advisors looking to build sustainable, profitable practices while maintaining work-life balance and genuine client relationships, Firestone's approach offers a proven roadmap. The specific tactics may evolve with technology and changing client expectations, but the underlying principles remain as relevant today as they were when he started his practice over 35 years ago.
The measure of Firestone's success isn't just the $800 million in assets under management or the profitable sale of his firm. It's the fact that clients from 35 years ago still come to visit him in retirement, and that one client even moved to the same retirement community because "that's where Jack's moving." That's the kind of relationship-driven success that technology can enhance but never replace.
Jack Firestone retired in March 2024 after 37 years in the financial advisory business. His firm, Firestone Capital Management, continues to serve clients under the leadership of the partners he mentored and developed throughout his career.
