Kara Murphy, President and Chief Investment Officer of Kestra Investment Management, shares her remarkable journey of building a $4.3 billion investment platform from the ground up in just three and a half years. Drawing on her unique background in international relations, Kara brings a strategic perspective that goes far beyond traditional investment management.

In this conversation, Kara reveals her blueprint for successful platform building: identifying advisor pain points, creating scalable solutions, and leveraging technology to enhance rather than replace the human element.

The discussion explores how Kara is helping solve the industry's most pressing challenges: the advisor shortage, succession planning gaps, and the need for greater efficiency. She demonstrates how AI tools are already transforming advisor productivity in note-taking, document analysis, and marketing, freeing professionals to focus on what matters most: client relationships. Kara also addresses the persistent opportunity for greater gender diversity in financial advisory and why she remains exceptionally bullish on financial services as a dynamic, entrepreneurial career path for the next generation.

Takeaways

• Strategic platform building starts with listening. Kara built Kestra Investment Management by identifying advisor pain points, determining what could be taken off their plates, and focusing on scalable solutions rather than manual processes.

• Diverse experience creates better leaders. Kara's background in geopolitics, fundamental research, and wealth management gave her a unique perspective on markets, client needs, and business building that traditional career paths might miss.

• Channel distinctions are becoming irrelevant. The convergence of wirehouses, independent broker-dealers, and RIAs reflects what clients have always wanted: trusted advisors who care about their financial goals, regardless of operational structure.

• The advisor shortage requires multifaceted solutions. Success demands better succession planning programs for founding advisors (G1s), comprehensive training for next-generation talent (G2s and G3s), and AI-driven efficiency tools that help fewer advisors serve more clients effectively.

• Investment opportunities exist beyond the obvious. While AI stocks have dominated headlines for three years, Kara sees compelling value in mid-caps, industrials building AI infrastructure, and international markets with attractive valuations and emerging growth catalysts.

• AI amplifies advisor effectiveness without replacing relationships. Early adoption in note-taking, document analysis, and marketing demonstrates how technology handles administrative work, allowing advisors to dedicate more time to the human connections that build trust and deliver value.

In this compelling conversation, George Nichols, President and CEO of the American College of Financial Services, shares his transition from a distinguished 17-year executive career at New York Life to leading one of America's oldest yet "stealthiest" academic institutions dedicated to financial services education. George candidly addresses the industry's most uncomfortable truth: financial services has collectively failed aspiring advisors, with 72% not surviving in the business (85% in insurance). He discusses how the nearly 100-year-old American College is evolving from its insurance roots to serve the broader wealth management industry through applied financial knowledge and specialization programs. George explores critical challenges facing the profession, including the looming advisor shortage (needing 700,000 advisors when only 300-400,000 exist today with a third retiring), the urgent need for better training and mentorship, and why firms must adapt to serve changing demographics. The discussion concludes with insights on AI's impact on both the industry and academic training, and why George remains more bullish on financial services careers than ever before.

Takeaways

The industry has accepted unacceptable failure rates - 72% of financial advisors fail to stay in the business, with insurance seeing 85% attrition. Despite building business models around these numbers, the industry must fundamentally rethink training and support to address this crisis.

Applied knowledge beats theoretical curriculum - The American College differentiates itself as a non-profit, accredited institution focused on applied financial knowledge that advisors can learn Monday and use Tuesday, not just theoretical education from university programs.

The math doesn't add up on advisor supply - With 700,000 advisors needed in 10-15 years, only 300-400,000 currently practicing, a third retiring in the next decade, and 72% attrition rates, the industry faces a critical talent shortage that current approaches cannot solve.

Demographics demand new approaches - With $30 trillion in horizontal wealth transfer to women through 2030 (70% of whom change advisors after a spouse's death), plus fastest population growth among mixed-race, Hispanic, Asian, and Black Americans, firms must rethink how they attract both clients and advisors.

Four A's framework for talent development - Success requires Awareness (understanding financial services as a career), Alignment (matching candidates to the right sector), addressing Attrition (the 72% failure rate), and supporting Advancement (career progression and specialization).

Specialization is the future beyond CFP - While comprehensive financial planning provides the foundation, the next generation of successful advisors will specialize in areas like wealth management, taxes, retirement, philanthropy, and special needs planning.

AI brings efficiency but requires knowledge - Artificial intelligence will make advisors and firms more efficient, but garbage in still equals garbage out. Advisors need sufficient knowledge to evaluate whether AI-generated recommendations are sound.

Regulatory structure will slow AI adoption - Unlike other industries, financial services' strict regulatory framework will prevent rapid AI transformation. Regulators lack resources to quickly establish AI policies, likely restricting usage until rules are clear.

Training must evolve for modern practice models - Large aggregators no longer need advisors to hunt for clients but need well-trained professionals to manage handed-down books of business. This requires different training focused on practice management, not just prospecting.

George remains bullish on the profession - Despite challenges, financial services offers tremendous opportunity for those who prepare properly. The need for good financial advice has never been greater, creating options for advisors willing to serve clients beyond just the ultra-wealthy.

In this engaging session, financial industry pioneer Ric Edelman shares his journey from founding one of America's largest wealth advisory firms to becoming a leading advocate for blockchain technology and digital assets. Beginning with his Philadelphia roots and recent work with the Edelman Fossil Park, Ric transitions to explaining why he believes blockchain represents the most revolutionary technological advancement since the internet itself. He discusses the current state of digital assets, practical allocation strategies for advisors, and how the changing regulatory landscape is creating unprecedented opportunities. Ric emphasizes that RIAs who ignore digital assets are not only missing a key differentiator in a homogenous industry but also failing to address their clients' existing crypto holdings and questions. The conversation concludes with insights on tokenization as the future of asset management and the implications of a more crypto-friendly political environment.

Takeaways

• Blockchain is Internet 3.0 - Just as Internet 1.0 connected people and 2.0 connected things, blockchain technology is creating the Internet of Money, enabling frictionless, fee-less transactions without intermediaries.

• Digital assets are a legitimate, established asset class - With 15 years of performance data, Bitcoin has proven itself as the first new asset class in 170 years. Modern Portfolio Theory research suggests a 5% allocation optimizes risk-adjusted returns.

• Compliance barriers are dissolving - With Bitcoin ETFs now available from major asset managers like BlackRock and Fidelity, compliance departments no longer have legitimate reasons to prohibit digital asset investments.

• Client demand is overwhelming - 40% of US adults own Bitcoin, and 65% of clients would leave their advisor to find one who could help them with digital assets. Most firms are unprepared to meet this demand.

• Tokenization will transform asset management - Beyond cryptocurrencies, blockchain enables the tokenization of real estate, art, music royalties, and other assets, potentially creating thousands of new investable asset classes.

• Regulatory environment is improving dramatically - The current administration is strongly pro-crypto, with supportive officials throughout government and favorable legislation expected within the next 18 months.

• Digital assets represent an M&A and organic growth opportunity - Firms that develop expertise in digital assets can differentiate themselves in a homogenous industry, attract new clients, deepen relationships with existing clients, and potentially increase their valuation.

Chapters

00:00 - Introduction and Philadelphia Connections

01:14 - The Edelman Fossil Park and Dinosaur Discoveries

02:43 - Evolution of the Personal Finance Industry

05:47 - Ric's Journey into Blockchain and Digital Assets

09:27 - Understanding Blockchain Technology as Internet 3.0

14:44 - Practical Asset Allocation Strategies for Digital Assets

18:06 - Bitcoin's Correlation with Traditional Markets

20:40 - Bitcoin as Digital Gold and Store of Value

23:14 - The Broader Digital Asset Ecosystem and Investment Options

25:45 - The Case for Adding Digital Assets to Client Portfolios

35:22 - ETFs and Product Proliferation in Digital Assets

38:23 - Tokenization: The Future Beyond ETFs

41:42 - Digital Assets in Retirement Accounts and Mainstream Adoption

44:00 - The Transforming Regulatory Landscape

47:25 - Impact on M&A Activity and Closing Advice