Please remove before using The “Careers in the RIA Industry” presentation was developed for Advisors to use in their recruiting and outreach efforts. The customizable presentation will help tell the story of what an independent Registered Investment Advisor is, and why the work RIAs do is so important. We believe it’s a powerful tool that can help raise awareness and understanding of the industry while attracting the diverse talent needed to carry firms into the future.   [Please remove slide before using.]

Careers in the RIA industry [This presentation is a powerful and customizable recruiting tool that allows you to connect with prospective talent, showcase your firm, and explain your own path to becoming a registered independent investment working for or starting an RIA firm. By telling your story and explaining the appeal and the importance of independent RIAs, you can help solidify long-term success for your firm—and the industry.] [Please delete copy in brackets before using.] I’m thrilled to be here with you today to talk about your opportunities in financial services.  

Using this presentation Please remove before using Using this presentation This presentation is intended to be used to support your recruitment efforts and to help create awareness of the RIA profession among students and career changers Audiences and venues We encourage you to work with your Relationship Manager to develop local or regional events to attract potential candidates – from students to mid-career professionals. Consider delivering this presentation to prospective candidates in a variety of venues, including: Undergraduate/MBA on-campus student groups Financial industry educational and networking events Individual meetings with college career counselors Individual meetings with job candidates Spread the word We also encourage you to: Post the presentation to your firm’s website and LinkedIn page Share parts of the presentation in e-newsletters or blogs Where to find This presentation will be available to download from the Business Services Center on the Advisor Services website. Share your thoughts Share any success stories you have in using the presentation – type/size of audiences, effectiveness of the content, feedback from the audience, and any suggestions for improving the presentation. Please send feedback to the RIA Talent Advantage Team at (RIATalentAdvantage@schwab.com). [Please remove slide before using.] A

Using this presentation (cont’d) Please remove before using Using this presentation (cont’d) Presentation Layout The presentation was designed with sections that: Give an overview of the industry Discuss the benefits to the investor of the RIA model Highlight the benefits of choosing this career path Point out considerations for working for an RIA firm, including Firm size Client type Services offered Licensing requirements Provide specifics about your firm This final section should be customized by the Advisor delivering the presentation with information specific to the firm. [Please remove slide before using.] B

Using this presentation (cont’d) Please remove before using Using this presentation (cont’d) Included are placeholder slides with guidance for you to add content to discuss your professional background, your firm, and opportunities to work at your firm. Optional speaker notes are also included to assist in delivering the presentation. Instructions: Save a copy of this PowerPoint presentation file to your computer Click “View, “ and then choose “Master View” Insert your firms logo or simply type in the firm name where it ways “Your firm” Click “Close Master View X” to return to normal view Delete instruction and Advisor disclosure slides Have your compliance officer review every version of this presentation and add any appropriate disclosures. To customize the content, you can do so in the following ways Rearrange the slide order Delete slides Add your own slides NOTE: Remember to update the page numbers based on changes you’ve made. [Please remove slide before using.] C

[Your intro] [As a leader of your firm, you are an incredible recruitment resource for your organization. When you tell your story, you bring the RIA model and your firm to life for potential employees. Use the prompts and questions provided throughout the presentation to help tell that story.] We have two options for your intro: Start with your own story. Use the quote on the following slide. If you choose to tell your own story, here are a few areas you can cover: What your role is How long you have been an RIA Why you love what you do An emotional story about the impact you have made on a client’s life Before we begin, I would like to tell you a little about how I find meaning and purpose in this job and why I can’t imagine being anything other than a Registered Investment Advisor (RIA). [Give a brief introduction of yourself and your firm.] I’ll tell you more about myself and my firm toward the end of this presentation, and please feel free to ask questions as we go.

“For me, there cannot be a better job “For me, there cannot be a better job. I’m helping people, I’m well paid, and I love what I do.” [Read quote aloud] Raise your hand if you would love to be able to say this about the career path you have chosen. [Leave time for people to raise their hands.] Unfortunately, for some professionals it can take a few job transitions before they even come close to living this statement. In the near future, all of you are going to make a watershed decision: You’re going to decide how to define yourself professionally. The path you choose will determine what your future looks like, how you make an impact on the world, your opportunities today and tomorrow, and so much more. The next several slides cover the potential benefits – to both an investor and professional – of the Registered Investment Advisor – or RIA – model. I’ll also give you the definition of what it means to be an RIA.   —RIA firm owner of 25+ years Experiences expressed are no guarantee of future performance or success and may not be representative of your experience. 2

How would you like a career that… Provides opportunities for you to make a difference in peoples’ lives Allows greater control over your working environment Gives you more control over your earning power Offers freedom and fulfillment Lets you have more control over your work-life balance Leverages both your analytical skills and emotional intelligence I believe that this career is one of the best-kept secrets in the financial services industry. There are many benefits for advisors and other professionals to joining an RIA firm. Many of the things that may matter to you personally intersect with what a career as an RIA can offer. As an RIA you can: Feel the satisfaction of helping people reach their financial goals Control and build your professional future Leave time in your life for other important things Be part of a dynamic industry Working at an independent Registered Investment Advisor (RIA) firm can offer each of these things—and more. Yet it is an often overlooked opportunity in financial services.

Registered Investment Advisor (RIA): Professional advisory firm that offers personalized financial advice to clients who require a high level of investment management strategy and consultation1 What is an RIA? Well, let’s start with the actual definition. An RIA is a professional advisory firm that offers personalized financial advice to clients who require a high level of investment management strategy and consultation.1 But what does this really mean? In this definition, I want to emphasize “personalized” and “consultation.” These are two indicators of the importance of relationship-building in this industry. And, for the sake of this presentation, you’ll hear me use the term “RIA” to refer to both the professional advisory firm and to the individual advisors who work in the firm. 1. RIA firms register with the Securities and Exchange Commission or state securities regulators and are subject to the Investment Advisers Act of 1940. State-registered advisers are subject to state-specific securities rules that may differ from federal regulation. Individual advisors are subject to the same standard as the RIA whether the individual is required to be registered or not. RIA firms register with the Securities and Exchange Commission or state securities regulators and are subject to the Investment Advisers Act of 1940. State-registered advisers are subject to state-specific securities rules if state registered, that may differ from federal regulation. Individual advisors are subject to the same standard as the RIA whether the individual is required to be registered or not. 4

RIAs can support individuals’ lives and financial well-being Every investor encounters life events: To meet these various investor needs, RIAs can provide a range of services: Preparing for the future Marriage and family New house Saving for college Sale of a business Retirement Unplanned events Death of a spouse Divorce Financial planning Investment management Tax planning Estate planning Retirement planning Wealth management People experience many life events that require the expertise of a financial professional. RIAs can support their clients as they start a family, consider purchasing a home, plan for college expenses, and put together a retirement savings strategy. They can also provide financial planning support for unplanned events. RIAs can offer support through a variety of services – from financial planning and investment management (for those life events we just discussed) to offering referrals to tax and estate planners. 5

Overview of the RIA industry Now that we have talked about what an RIA is, I want to share an overview of the industry and the benefits of being an RIA, along with information on how to get into this part of the business. Overview of the RIA industry 6

$1 trillion in growth in next two years2 The RIA industry is one of the fastest-growing segments in financial services, with the potential for even more growth $4 trillion in assets1 $1 trillion in growth in next two years2 $23 trillion market opportunity3 The RIA industry is one of the fastest-growing areas within the financial services industry. In the 10-year period between 2003 and 2013, assets in the RIA channel increased by 10% year-over-year, reaching $4 trillion. Assets managed by RIAs have increased more than 14% year-over-year since 2008 and this number is expected to grow another $1 trillion in the next two years alone. While some of this is due to market increases, it also shows that investors are choosing RIAs to manage their wealth. Further, the value of assets not currently in an advised relationship (that is, investable assets not currently being managed by an RIA) is estimated at $23 trillion – a tremendous market opportunity. Cerulli Associates company reports and Charles Schwab Strategy estimates, marketwatch.com.  Charles Schwab Analytics, Insight & Loyalty, May 2014. Cerulli Associates, company reports, Charles Schwab Strategy estimates. Schwab Strategy estimates, individual company financial reports, FDIC, ICI, Federal Research Flow of Funds, Cerulli Associates, and Discovery Database. Based on households with over $500K in assets. 7

The industry is in greater demand as a career choice as well 51,000 employees And, it is not just investors who are flocking to this model. It is in demand as a career choice as well. The number of individuals at RIA firms is expected reach 51,000 in the next two years.1 Already there are nearly 16,000 RIA firms nationwide.1 1. The Cerulli Report: RIA Marketplace 2014; reflects dually registered and independent advisors. RIA model Traditional model2 Source: RIA Marketplace 2014: Growth Drivers in an Accelerating Industry Segment, Cerulli Associates, 2014. Traditional model = Banks, Wirehouse, and Brokerage Firms 8

Working for a smaller company and work-life balance are among the many reasons why advisors choose RIA firms Total advisors1 Includes mentions such as “to be independent,” “ownership/to be my own boss,” “to better serve clients” Advisors who are flocking to the industry cite working at a smaller company and work-life balance as key reasons for joining an RIA firm. Interest in working at a smaller company Greater work-life balance Potential for greater earnings/ compensation Opportunity to contribute to firm growth Greater choice of financial products Opportunity for greater career advancement Opportunity to rebuild a career after being away from the workforce Other Men and women report similar incentives, with no significant differences 2014 RIA Talent Study, conducted for Schwab Advisor Services by Koski Research, June 2014. 9

Why should you join an RIA firm? Be part of a dynamic industry “You get new clients every day with different problems that you get to help them solve. You get to see the direct impact on people’s lives. —Independent RIA Enjoy the potential to own your own business “I’ve always wanted to have my own business. So by going independent, I created a business value, and I have an asset then that I’ve worked so hard to create for the past 27 years.” —Independent RIA Feel the satisfaction of helping people reach their goals “We foster close relationships with our clients as we build their confidence in their financial future. We believe that our clients trust that we have their best interests in mind, and that allows our team to build long-standing relationships.” —Independent RIA Connect your strengths through specialization People enter the RIA field for a variety of reasons. Here are some additional benefits of working as an RIA and some quotes from independent advisors that really drive them home. Being a part of a dynamic – and growing – industry can mean working with clients on a variety of planning areas. That keeps you on your toes professionally. Feeling the satisfaction of helping people reach their goals. That’s where long-term relationship building and the emotional intelligence to build a client’s confidence can be critical to success. Leaving time for other things in life – the nature of this client-focused industry means being available to clients when they need you, but also structuring a schedule that works for you. “The focus of the firm… has been many times with clients in transition, and a lot of times we find that clients are going through different phases of life, whether it’s going through a divorce or a major inheritance or the sale of a business, or it could be the death of a spouse.” —Independent RIA Leave time in your life for other things “Success is not just revenues that our firm generates—its us having a policy of people being at home with their families and not always focused on hours here at work.” —Independent RIA Information expressed above are based on Advisors opinions. 10

RIAs can offer a powerful value proposition for investors Many RIAs:1 Provide tailored advice based on investors’ goals Offer a fee structure that is simple, transparent, and easy to understand, and that gives advisors an incentive to grow client assets Provide advice for complex needs Form close relationships with clients and have a strong sense of accountability Use institutional custodians, such as brokerage firms, to help safeguard clients’ assets Investors appreciate the RIA approach2 51% More than half of new clients and assets come from existing client referrals. 97% RIAs have a 97% client retention rate. The potential benefits to investors of the RIA model are considerable. Many RIAs provide tailed advice based on their client’s goals. RIAs have access to the full depth and breadth of product options the market has to offer, potentially opening up more opportunities to find ideal solutions for clients. Being an RIA can also enable you to be transparent with clients about the price of service, how fees are calculated, how you make recommendations, how you are compensated, and the value that you offer for your service. So how are RIAs paid? RIAs typically assess a flat fee based on a percentage of the clients’ total assets managed. This ‘fee-only” or “fee-based” model means an RIA’s pay does not fluctuate based on how they construct portfolios or what recommendations they make. To be clear, this isn’t the only way RIAs may choose to be paid, but it is a common approach. RIAs frequently develop long-term, trusted relationships with their clients and feel strongly accountable for helping their clients achieve their financial goals. Finally, RIAs often use institutional custodians, such as brokerage firms, to safeguard their clients’ assets. Accounts are held in clients’ names, and the custodian typically sends account statements to clients detailing transactions. This set-up means clients can know who is actually holding their assets. These characteristics can apply to other financial services professionals and are not unique to RIAs. Median results for all firms with $250 million or more in assets under management (AUM). 2015 RIA Benchmarking Study from Charles Schwab, fielded January to March 2015. Study contains self-reported data from 1,007 firms. Participant firms represent various sizes and business models categorized into 12 peer groups—7 wealth manager groups and 5 money manager groups, by AUM size. 11

Considerations when pursuing a career with an RIA firm Now that we have talked about what an RIA is, the benefits of working as an RIA, and the value the industry brings to investors, let’s talk about a few things you’ll need to consider as you make your way into the industry. 12

RIAs come in all shapes and sizes Firm structure1 RIA firms range in size from sole proprietors to firms with 100+ employees. Small to medium-size firms tend to have two partners or individuals who own a share in the firm. Roles and responsibilities Employees of RIAs can be responsible for a variety of tasks: Portfolio/investment management Client services Operations/trading Compliance Technology Marketing Human resources Administration support Consider the type of firm that you may want to work for. In many cases, RIAs are small businesses that are entrepreneurial in nature and are run by professionals who may have worked at larger financial institutions before deciding to go independent. As firms grow, employees often take on a broad array of tasks that eventually require a high level of specialization. As firms grow in size, RIAs tend to hire individuals for more specialized roles and functions. 2015 RIA Benchmarking Study from Charles Schwab, fielded January to March 2015. Study contains self-reported data from 1,007 firms. Participant firms represent various sizes and business models categorized into 12 peer groups—7 wealth manager groups and 5 money manager groups, by AUM size. 13

RIAs serve a variety of client types Individuals—singles, couples, families, entrepreneurs Institutions—small and medium- size firms, 401(k) plans, pension funds Nonprofits and endowments— universities, charitable organizations, foundations Firms typically serve 319 clients (median)1 Clients average $1.7 million in assets1 And as a result, firms serve a variety of client types. Many firms serve individuals and families, including entrepreneurs building their businesses. Some firms also serve small to mid-size businesses and provide retirement or pension fund management to firms. Others serve as managers of large endowment and foundation portfolios. Given that many RIA firms are small to mid-sized companies themselves, it’s hard to give an average client number or asset level. From a recent survey done by Charles Schwab, they found the median number of clients served to be over 300 (for firms in the study who custody their assets with Schwab). Client assets averaged $1.7MM. Many RIAs require a minimum of $1MM in investable assets per client. Median results for all firms with $250 million or more in AUM. 2015 RIA Benchmarking Study from Charles Schwab, fielded January to March 2015. Study contains self-reported data from 1,007 firms. Participant firms represent various sizes and business models categorized into 12 peer groups—7 wealth manager groups and 5 money manager groups, by AUM size. 14

RIAs offer a variety of services1 Comprehensive financial planning Asset allocation Selecting third-party managers and funds Selecting individual securities to maximize performance Estate planning Tax planning and strategy Charitable planning Family education The types of clients a firm serves often influence its offer. Services range in complexity from financial planning (typically for individuals and families) to investment management (for high-net-worth and institutional clients) to wealth management, which can encompass a wide range of financial and lifestyle services for high-net-worth clients. 2015 RIA Benchmarking Study from Charles Schwab, fielded January to March 2015. Study contains self-reported data from 1,007 firms. Participant firms represent various sizes and business models categorized into 12 peer groups—7 wealth manager groups and 5 money manager groups, by AUM size. 15

Working at an RIA may require licensing Series 65 registration1 Uniform Investment Advisor Law Exam Other registration requirements vary depending on the services RIAs provide and include:2 Required by most states for individuals who act as investment advisors and provide investment advice to clients 130 questions plus 10 pre-test questions with a minimum passing score of 72% Topics covered: Economic factors and business information Investment vehicle characteristics Client investment recommendations and strategies Laws, regulations and guidelines, including prohibition on unethical business practices Certified Financial Planner™ (CFP®) Chartered Financial Analyst® (CFA) Personal Financial Specialist (PFS) Certified Investment Management Analyst® (CIMA®) Chartered Investment Counselor (CIC) Chartered Financial Consultant® (ChFC®) In general, there are many skills necessary to becoming a successful RIA, as RIAs provide services that address a variety of personal and professional financial needs: Financial trading instruments Sale of business Complicated tax situations Trusts Intergenerational issues Investment strategies Estate planning Personal and corporate tax The Series 65 license is mandatory, though some states will waive the requirement for individuals who have already achieved certain designations, such as: Certified Financial Planner™ (CFP®)—CFPs have completed university-level financial planning course work and passed a 10-hour exam covering nearly 90 diverse topics, including group medical insurance and derivatives. This designation can be helpful in terms of bringing in business. Chartered Financial Analyst® (CFA)—CFAs must pass three exams, each of which demands a minimum of 250 hours of study and includes corporate finance and financial statements. Personal Financial Specialist (PFS)—PFSs are certified public accountants who specialize in personal financial planning. The credential requires a detailed exam and significant financial planning expertise. Certified Investment Management Analyst® (CIMA®)—CIMAs focus on asset allocation and typically complete final course work at the Haas School of Business at the University of California, Berkeley or at the University of Pennsylvania’s Wharton School of Business. Chartered Investment Counselor (CIC) Chartered Financial Consultant® (ChFC®) In addition to the technical proficiency related to financial planning and investment management, so-called “soft skills” are also necessary, such as the ability to relate to people and draw them into conversations. Successful RIAs tend to be empathetic, service-orientated, and good listeners. Successful RIAs also tend to demonstrate emotional intelligence, which includes the ability to relate to people, show empathy, be service focused, listen closely, and be attentive to client needs. North American Securities Administrators Association, accessed June 18, 2015, www.nasaa.org. Obtaining one of these registrations may make you exempt from the Series 65 exam. 16

[Your firm] [The following slides are your opportunity to talk about your firm and to provide a closer look at your personal experience in the RIA industry. Adapt the slides to talk about what’s most important to your particular audience and business. Sharing real-life stories is one of the most compelling ways to promote your firm to talented prospective employees.] So, up until now, I’ve walked you through the “nuts and bolts” of what being an RIA can mean to you and your clients. I hope it was helpful to give you a glimpse into our industry and to arm you with some key considerations as you continue to weigh your professional options. At this point, I’d like to switch gears. Earlier I shared a little about myself and my passion for this industry. Now, I’ll share a bit about how I became an RIA and take you through “a day in the life” at my firm. 17

How I became an RIA at [Your firm] [Your audience will benefit from hearing your personal story. For potential topics to cover, see prompts below.] Getting started Where you grew up and went to school; your major Your first job in financial services and what you liked and disliked about that position Considering the RIA path When and how you first discovered what an RIA is What about the career appealed to you; what concerned you Going for it When and how you decided to become an RIA How your skill set allows you to excel in your role How you have had an impact on a client’s life Life today If your perception of what it would be like to work as an RIA matches up with your reality today What life is like today and what you enjoy about your job Now I’m going to tell you about why I became an RIA and the path I took to get here. 18

Day in the life at [Your firm] [This is an opportunity to talk about your firm. For potential topics to cover, see prompts below.] The office culture The first thing you do when you walk in the door to the office The most important part of your day How much time you spend meeting with clients versus doing other things How you communicate with and support each other What types of people are successful at your firm What success looks like Now that I’ve told you why being an RIA is a great career choice for you, let me tell you about what a day might look like at our office. 19

What it takes to be successful at [Your firm] [This is an opportunity to talk about your firm’s requirements. For potential topics to cover, see prompts below.] The educational backgrounds of the individuals at the firm Your educational background What tests you have taken and what they were like Licenses you hold Any ongoing educational requirements What you have always been good at Why your personality is particularly suited for the RIA field What your RIA colleagues have in common personality- or skill-wise Let’s also talk about what it takes to be successful at my firm. 20

Training and development opportunities at [Your firm] [This is an opportunity to talk about your firm’s training programs. For potential topics to cover, see prompts below.] Formal or informal mentorship programs Internal and external training Conferences and networking events Paid certification and credentialing programs Any other ways the firm supports new advisors and career development For those of you who are considering entering the field right after you graduate [when addressing collegiate audience], I’ll share the formal and informal training programs our firm has in place. 21

Benefits of working at [Your firm] [Use this opportunity to talk about your firm’s benefits. For potential topics to cover, see prompts below.] Mentorship and long-term career opportunities Formal or informal mentorship programs and how those programs work How quickly new RIAs get to work directly with clients Career advancement for young/new employees; ownership/partnership opportunities Work-life balance How many hours per week advisors usually work How the firm ensures people have a life outside of work Client service Why clients like the firm; what they say about the firm; what sets the firm apart How working with clients at the firm is fulfilling Diversity If the firm is actively recruiting female RIAs How the firm specifically helps to meet the career needs of women Compensation What the holistic compensation package looks like (this could include salary, health insurance, 401(k) plans, paid time off, bonuses, etc.) 22

Get involved and look for opportunities Get involved with industry organizations The Financial Planning Association http://www.fpanet.org/ FPA NexGen! This is a community for FPA members age 36 and under that focuses on the next generation of financial professionals. http://www.onefpa.org/community/nexgen/Pages/Welcome%20to%20the%2 0NexGen%20Community.aspx Certified Financial Planner (CFP) Board http://www.cfp.net/ Financial Women’s Association http://fwa.org/ National Association of Insurance and Financial Advisors http:www.naifa.org/ The National Association of Personal Financial Advisors http://napfa.org/   Look for career opportunities Schwab’s RIA Career Opportunity Service http://advisorservices.schwab.com/public/advisor/nn/transition/transition_plann ing/career_opportunity_service Schwab’s advisor directory http://riastandsforyou.com/FindAdvisor CFP’s career center http://www.cfp.net/career-center I encourage you to dig deeper and get involved with the industry. Join an organization, and look at the types of opportunities available on career sites such as Schwab’s RIA Career Opportunity Center. Key search terms: “RIA” and “Registered Investment Advisor” 23

Make an informed decision Read industry publications Financial Planning (http://www.financial-planning.com/) Financial Advisor (http://www.fa-mag.com/) ThinkAdvisor (http://www.thinkadvisor.com/) InvestmentNews (http://www.investmentnews.com/) RIABiz (http://www.riabiz.com/) Trusts & Estates (http://wealthmanagement.com/subscriptions)   Learn what potential clients/investors need to know RIAStandsForYou.com http://riastandsforyou.com/ Pay special attention to the resources on the Benefit of RIAs tab. The Wall Street Journal: “Thinking About Hiring an RIA? Here Are 10 Things You Should Know http://riastandsforyou.com/assets/pdf/WSJ_reprint_44777.pdf Worth magazine: “Have You Outgrown Your Financial Advisor?” http://www.riastandsforyou.com/assets/pdf/2618-WO29_Charles%20Schwab_E-Print.pdf “5 Key Benefits of Independent Registered Investment Advisors” http://riastandsforyou.com/assets/pdf/SLS63879.pdf You can follow a few key publications to keep abreast of the developments shaping the industry. You can also access a lot of great investor education resources as well. Key search terms: “emotional intelligence” and “financial planning” 24

Q&A Thank you for your time today. What are your thoughts about this career? What other questions do you have?

Thank you