Ric Edelman, co-founder of Edelman Financial Engines, to step down in 2021
Edelman Financial Engines co-founder Ric Edelman will step down as chairman at the end of 2021.
He will act as a strategic advisor and remain a member of the board of directors, according to a statement by the company. Amid the change, Edelman continues to be the company’s largest shareholder.
Edelman started Edelman Financial Services in 1986 with his wife, Jean. In 2018, it merged with robotics consulting pioneer Financial Engines, creating the largest RIA in the United States.
The size of the transaction sent shock waves in industry. He brought together $ 169 billion in Financial Engines’ assets under management with Edelman’s $ 21.7 billion in assets under management, as well as the latter’s 35,000 clients. The RIA now serves 1.3 million customers and manages $ 270 billion in assets across more than 150 offices, according to a spokesperson. for the company.
“It has proven to be very successful and has helped build our confidence,” Edelman told Financial Planning of the landmark transaction.
In the statement, he said that he and John “have decided that the time has come for us to begin our next chapter. With a team of talented and dedicated planners and staff, and an experienced and capable management team, we are Confident in the future of the company. We thank our friends, colleagues and, above all, our customers for the trust they place in us. And we are excited about our new ventures.
He told Financial Planning that the decision “was more of an evolutionary process following years of conversations with many people and assessment of the environment and current circumstances and conditions.”
Edelman will focus on the RIA Digital Assets Council (RIADAC) he created three years ago that helps advisors understand cryptocurrencies, according to InvestmentNews.
RIADAC has partnered with the Financial Planning Association to deliver a certificate program on blockchain and digital assets, regularly contribute content to the Journal of Financial Planning, and present sessions on cryptocurrency investing at the annual conference of the FPA.
“Ric Edelman is known and recognized across financial services, and his work to educate the financial advisor community on blockchain and digital assets is commendable,” said FPA President Skip Schweiss. in a report.
Timothy Welsh, president, CEO and founder of Nexus Strategy, said Edelman’s departure would leave “a big void in the company’s future.”
“Despite their assurances that it is business as usual, when the founder and namesake leaves, it will never be the same again,” he said. “Currently, he’s inextricably linked to the business through his radio show, books, speeches, cryptocurrency fandom, and more. How can you reproduce this? “
Edelman is the bestselling author of 10 personal finance books and hosted The Ric Edelman Show podcast for 29 years. The latest episode under that moniker is slated to air this fall, the company said.
“The philosophy developed by Ric, deployed across the company’s nationwide branch network and adopted by our 340 financial advisors, is what sets Edelman Financial Engines apart in the RIA industry,” said Larry Raffone, President and CEO. the management of Edelman Financial Engines, in the press release. . “We will continue to champion Ric’s legacy as we fulfill our mission to help millions of Americans reach their financial goals.”