The new economics of wealth management: Stirlingshire’s advisor-first approach

Today we’re examining the evolution of asset management and financial advisory services. As technology transforms how we invest and manage wealth, we’re exploring the critical balance between innovation and human expertise.

We’ll discuss how disruption in the advisory space creates new opportunities for clients and advisors alike, why personal relationships remain essential even as AI expands, and how progressive firms are reimagining compensation models. We’ll also look at the hybrid approach resonating with next-gen clients who want both self-directed tools and personalized guidance.

Joining me to explore these topics are Steven Woods, CEO and Founder of Stirlingshire, and Jim Webb, VP of Investments. Their firm is working to remake the asset management model for both clients and advisors. Today, we’ll hear about their non-traditional approach to wealth management, how they’re balancing technology with the human touch, and why this matters for both financial professionals and their clients.

Challenging the Traditional Asset Management Fee Structure

Steve Wood founded Stirlingshire to reimagine how advisors are compensated. Instead of the typical model where firms take substantial cuts from advisor earnings, Stirlingshire allows advisors to keep 100% of asset management fees and commissions with zero expenses. This creates a win-win where clients pay less and advisors earn more. “Every single advisor keeps every penny that they generate in asset management fees and commissions, there’s zero expenses to them whatsoever. And so that’s how I began to think about it.”

The “Advice on Demand” Innovation

Stirlingshire is pioneering a third option between fully-managed portfolios and self-directed investing. Their “advice on demand” model allows clients to self-direct at zero commission while having access to professional advisors when needed. The key innovation is that advisors only get paid when their specific recommendations result in profits. “What this has allowed us to do, this has allowed us to build technology that allows us to offer high level, personalized professional advice from licensed individuals in an on demand basis, and tie the compensation that’s being paid directly to the outcome of the specific advice that’s being given.”

Technology-Enabled Compliance and Remote Work

By building compliance directly into their technology systems, Stirlingshire has reduced overhead costs dramatically while increasing flexibility. This allows the firm to operate remotely, eliminate real estate expenses, and reduce compliance staffing. “We could build systems. Programs that allow us to kind of automate a lot of the compliance processes and build a lot of the compliance infrastructure directly into the code itself. Then it could help us do a couple things. Number one, it can help us move everybody to a permanent remote environment, right? So we can get rid of the real estate footprint.”

AI as an Efficiency Tool, Not a Replacement

Stirlingshire views AI as a tool to make advisors more efficient rather than replacing them. Their AI tools provide quick portfolio analysis and market context but don’t make direct recommendations or trades. “Until the SEC and FINRA really lay out guidelines for how AI can be used to make recommendations…we’re limiting it…it’s not actually making trades and doing things for us. For example, you can get in, you can say, tell me about Mr. Jones’s portfolio over the last quarter. What happened, right?…it’ll in three seconds, be able to spit you out a really detailed breakdown.”

Disrupting the Industry to Drive Broader Change

The ultimate goal isn’t just to build a successful company but to force change across the entire financial advisory industry. Similar to how Robinhood disrupted commission structures, Stirlingshire aims to push other independent firms toward more advisor-friendly compensation models. “Our goal is to hire 5000 advisors over the next five years…there’s probably that many people in the industry that want 100% payout and 100% flexibility and inbound clients…if we can make that impact at the LPL and the osaics and all these other firms drive them up to a real 100% payout…then I’ve done what I’ve set out to do, which is improve the world and the financial services world.”

The Big Ideas:

• • Challenging the Traditional Asset Management Fee Structure: Stirlingshire allows advisors to keep 100% of asset management fees and commissions with zero expenses. This flips the traditional model where firms take substantial cuts from advisor earnings, creating better economics for both clients and advisors.

• • The “Advice on Demand” Innovation: Stirlingshire offers a hybrid model between self-directed investing and full management. Clients can self-direct at zero commission but access professional advisors when needed, with advisors only getting paid when their specific recommendations result in profits.

• • Technology-Enabled Compliance and Remote Work: By embedding compliance directly into their technology systems, Stirlingshire eliminates the need for physical offices and reduces compliance staffing. This automation significantly reduces overhead costs while increasing advisor flexibility.

• • AI as an Efficiency Tool, Not a Replacement: Rather than replacing human advisors, Stirlingshire uses AI to make them more efficient. Their AI tools quickly analyze portfolios and provide market context, saving advisors time without making actual investment decisions.

• • Disrupting the Industry to Drive Broader Change: Stirlingshire aims to force change across the entire financial advisory industry, similar to how Robinhood disrupted commission structures. Their goal is to push other independent firms toward more advisor-friendly compensation models by demonstrating a successful alternative approach.

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