March 11, 2026
By Mike Papedis
Wealth management is in an operating-model arms race: talent, technology, compliance and client experience all have to scale at once. In this column, I speak with leaders building firms across different structures—independent RIAs, hybrids and enterprise platforms—to understand what’s working, what’s not and where the industry is heading.
I recently spoke with Paul Karlitz, CEO of Sagient, an independent wealth management and financial services firm headquartered in El Segundo, California. The firm comprises 85 professionals supporting approximately $2 billion in client assets. Sagient is affiliated with MassMutual’s independent wealth management platform.
In a wide-ranging discussion, Karlitz weighs in on the firm’s growth plans for the year ahead, how Sagient approaches client service, its Behavioral Finance focus, and why he views insurance as a “Swiss Army Knife” within a holistic planning toolkit.
NOTE: Views expressed are those of the guest. Fusion Financial Partners is platform-agnostic and advises teams across multiple operating models.
Mike Papedis: How does Sagient’s structure shape recruiting—who you target, what you offer and what you can realistically support as you grow?
Paul Karlitz: At Sagient, as an independent advisory firm, our business model is to operate with the appropriate support infrastructure and resources to serve our clients with distinction and grow our practice in a manageable and appropriate way.
We plan to add about 30 advisors in 2026. This number was carefully determined through internal discussions about the strategic growth we can responsibly support this year. Growth just for the sake of growth doesn’t benefit the firm, the advisors or their clients. To reach our realistic recruitment goal, we aim to bring on a mix of experienced and new advisors. Most will be seasoned professionals with existing books of business, but we will also seek out younger advisors who show potential, as well as individuals currently in sales or service fields interested in career change and the opportunity to build a successful business for themselves.
We are also structured to help our advisors succeed, whether they have been with us for years or are just coming onboard. With the help of our back office team, we listen to our advisors, learn about any pain points and put together plans to enhance their experience with Sagient and free up their time so they can spend more of it with their clients.
Papedis: We’re in the midst of a massive inter-generational wealth transfer. From your seat, what planning capabilities matter most for UHNW and HNW families—especially around tax mitigation, estate complexity and preserving family intent?
Karlitz: When considering a client’s needs, we never start with a product in mind, and that mentality is instilled in the team. You need to start with the ultimate solution: where does the client want to end up, and what are you really trying to solve for? Once you figure that out, there are product options that can help your clients get there.
This is where holistic advice and a planning mindset that incorporates behavioral finance come into play. Knowing your client and their goals, whether straightforward or complex, and encouraging them to stay the course you have mutually agreed on, is key to better outcomes.
We differentiated ourselves with our consultative approach that leaves the product discussion for last. Going down a rabbit hole of features, benefits and Monte Carlo simulations too early in the process can result in analysis paralysis and distract from making the right decision based on the unique needs of the client.
For wealth transfer specifically, the end solution can be a legal entity like a trust or family foundation, a well-crafted estate plan, an insurance-based risk management approach, a donor-advised fund for charitable giving or a combination of all of these. It’s then up to the expertise of the advisor to recommend appropriate products to help implement the plan.
Papedis: How have Behavioral Finance strategies changed in the digital era of 24/7 news cycles and unlimited, easily accessible information?
Karlitz: With the 24/7 news cycle, there is always a shiny object for people to chase after if left to their own devices. In our evenly split country, politics has become a team sport with a never-ending season, and markets can move on every social post, poll or headline. Add constant access to macro and micro economic data, and it can be information overload.
We are not solely buy-and-hold managers; we actively manage each client’s unique account, but we make adjustments based on what makes sense for their values and well-crafted financial plan. When clients let emotions rule their actions, suboptimal outcomes can result. That’s why many investors may experience outcomes that differ from long-term market averages.
We know that common emotional triggers, from panic during downturns to fear of missing out during rallies, to clinging to outdated assumptions, can negatively affect financial results if left unchecked. And emotions can work in both directions. Elevated optimism may lead to undue risk-taking, with negative consequences.
We use modern behavioral finance methods designed to help clients better understand and manage emotions like fear, anxiety or overconfidence to minimize their impact on financial decision-making.
Papedis: Many next-generation clients, especially those focused on holistic planning, don’t instinctively view insurance as part of “modern planning.” How do advisors introduce it in an educational way—and ensure it stays aligned with the broader plan rather than feeling product-driven?
Karlitz: I can understand that mindset, especially among younger clients. Insurance isn’t a tangible product. You’re buying a promise and a document. And when you think about it, you’re buying something you never want to use. It’s counterintuitive for many to buy something they won’t be around to see work. But insurance is so much more than just a term life policy, and it takes education to present it as such. We like to think of insurance as the Swiss Army Knife of financial planning. It has so many uses, and most advisors barely scratch the surface with their clients.
Insurance has asset protection, risk management and estate strategy implications. We see including insurance in a financial plan as more than just guaranteed income or potential tax-management benefits, but as an act of love for family and the next generation.
Advisors who focus on educating their clients about insurance and other wealth management topics can truly separate themselves from the competition and build deep client relationships that last a lifetime.
Papedis: What wealthtech investments do you believe offer the best ROI—either by giving advisors time back or materially improving the client experience?
Karlitz: Having a strong tech stack has become table stakes in wealth management. Many smaller firms are finding it harder to keep up, and that reality continues to drive consolidation in the industry.
The question for leaders at firms with scale is where best to allocate their tech budgets. We are strong believers that once you move past the basics, any additional wealthtech tools introduced by a firm need to either help advisors streamline their business and workflow or improve the client experience. Some tools can do both.
AI and digital automation tools, platforms and third-party providers can be terrific for improving accuracy and efficiency. We’ve recently started using an AI tool to help educate and train advisors, and we are seeing great results.
But it’s important to remember that ours is a relationship business, and nurturing human connections is critical to success. Technology should never disintermediate the advisor. However, that doesn’t mean firms shouldn’t be innovative in the wealthtech they employ, and ensure client-facing systems are as frictionless as possible. Clients expect working with their financial advisor to be as easy and tech-enabled as their interactions with other service providers. That’s where the most ROI on a firm’s tech spend can be found.
Mike Papedis is co-founder and CEO of Fusion Financial Partners (“We Build RIAs”), a strategic consultancy that helps advisor teams design, launch and scale independent RIAs and multi-family offices.
