How do you build a sustainable financial advisory business that values the talent of its people as a competitive advantage against the rise of AI?
In this episode of "The Business Philosopher Podcast," host Bhavesh Naik sits down with Brett Bernstein, CEO and co-founder of XML Financial Group, to explore how to create organizations that prioritize people, nurture emotional intelligence and drive sustainable growth. From building a legacy-focused culture to navigating mergers and acquisitions, Brett shares his unique philosophy on leadership, effective communication and empowering teams to thrive.
Among the topics we explored:
- The "bottom-up strategy" to approach to setting people-centric goals. How it helps a company create trackable KPIs and build an engaged work culture.
- How to achieve exponential business growth that outperforms AI-based advisory services. Hint: Build it around natural intelligence.
- The strategies for aligning company cultures after expansion through mergers and acquisitions. How to sustain a vibrant company culture even during expansion.
- The role of innovation and mentorship in building enduring businesses. Strategies for creating a company culture where people don't want to leave.
- The tight-rope that a leader in a professional services firm has to walk while leading the dual role of a CEO and contributing professional.
Whether you're a business owner, aspiring leader, or curious about the intersection of people and performance, this conversation offers actionable insights for personal growth and professional success. Tune in to discover how you can apply these strategies to build lasting, people-centered businesses.
Audio Outlasting AI: How to Build a Sustainable Business that AI Can't Beat
Video How to Build a Sustainable Business that AI Can't Beat
Click to play
About Brett Bernstein
CEO, XML Financial Group
Brett Bernstein, is the CEO and Co-founder of XML Financial Group who built it from the ground up into a dynamic, people-first organization.
He has led XML through three successful acquisitions, expanding the firm from four to over 50 full-time employees and multiple locations. Brett has a unique philosophy on growth, which emphasizes investing in people to create exponential value and ensuring that the company's culture remains vibrant even amidst significant expansion.
With his rare insight from serving both as a leader and a practicing financial advisor, Brett has cultivated a future-focused organization that thrives on innovation and mentorship, built to last well beyond any single generation.
As a regular commentator for Forbes, Investment News, and Financial Advisor Magazine, Brett brings a compelling blend of substance, clarity, and an entrepreneurial spirit to fellow founders and business builders.
"If you can be replaced, then either you're not adding the value or you have the wrong client."
Brett Bernstein, CFP®
CEO, XML Financial Group
Chapter-by-Chapter Summary
Following are the sections we covered in this conversation with their summaries, along with the time location in the video and audio to follow along. The timestamps in orange correspond to the chapters in the YouTube version of the podcast episode. This video will display to the lower right as you scroll down.
Please Note...
The numbers that precede the headings (like 00:00) are the time-stamps associated with the video version of the podcast that's included above.
04:12 What's in a Name? The Story Behind XML
Brett and his partners left Merrill Lynch in 2004 and picked a name with a bit of bite: XML — an inside joke standing for "ex‑Merrill Lynch" presented as Roman numerals. It stuck for two decades. Beyond the humor, the name signaled intent: a bold, independent firm built on clear choices about technology, investments and client service instead of accepting the product push of big firms.
07:42 Client-Centric Philosophy
Brett's core client profile is mass affluent to high net worth individuals and small business owners who want sound financial planning and emotional steadiness in decision‑making — not investment banking or corporate services. Independence, to him, means choosing what genuinely benefits the client rather than what pays distribution fees.
Terms and Definitions
Bottom-Up Strategy: A management approach where goals and plans are developed starting from the input of lower-level employees, allowing for a more inclusive and realistic planning process.
Mergers and Acquisitions (M&A): A strategy used by companies to grow or downsize, and change the nature of their business or competitive position through the buying, selling, dividing, and combining of different companies.
Client-Centric Philosophy: A business approach that prioritizes the needs and interests of clients, ensuring that services and products are tailored to meet their specific requirements.
Culture Deck: A presentation or document that outlines a company's culture, values, and practices, often used to communicate these aspects to employees and stakeholders.
Key Performance Indicators (KPIs): Metrics used to evaluate the success of an organization or of a particular activity in which it engages, often used to track progress towards goals.
Legacy Business: A company that is built to last beyond the tenure of its founders, often focusing on sustainable practices and long-term growth.
Independent Financial Planning: Providing financial advice and planning services without being tied to specific financial products or services, allowing for unbiased recommendations.
Pay to Play: A practice where companies pay to have their products or services featured prominently, often used in the context of financial services where fund managers pay to be included on a platform.
Robo Advisors: Automated platforms that provide financial planning services with minimal human intervention, often using algorithms to manage client portfolios.
10:51 Competitive Difference
What separates XML from large wirehouses is not better suits or bigger brands; it’s the client service model and the freedom to communicate as clients prefer. Brett highlighted how being nimble lets XML implement technology, marketing and compliance changes quickly so clients receive service on their terms.
"Investing in people creates exponential value."
Brett Bernstein, CFP®
CEO, XML Financial Group
12:26 Vision and Growth Strategy
The firm began with a simple vision: build a legacy business that outlives its founders. Rather than name the firm after individuals, the founders designed XML to be transferable and sustainable. Growth came organically at first, then accelerated through deliberate strategic choices.
15:30 Mergers and Acquisitions for Growth
XML’s expansion relied on careful M&A. A partnership with Focus Financial Partners provided capital and expertise to pursue acquisitions while preserving autonomy. The result: XML grew from roughly $500M to nearly $4B in client assets — a mix of organic growth and targeted deals.
"Innovation and mentorship are built to last beyond any generation."
Brett Bernstein, CFP®
CEO, XML Financial Group
17:22 Building a Legacy Business
Brett stressed that legacy requires systems, shared ownership and long‑term thinking. Equity is available to contributors across roles, not just rainmakers. That approach aligns incentives and makes retention and succession real possibilities rather than afterthoughts.
21:12 Leadership and Culture in a Growing Firm
Good leadership balances a visible guiding voice with genuine listening. Brett described setting clear direction while creating committees and cross‑firm forums so acquired teams feel heard and contribute to unified goals. The leader sets the destination; the team helps chart the route.
"A vibrant culture is key to sustaining growth."
Brett Bernstein, CFP®
CEO, XML Financial Group
23:23 Installing a Culture Deck Vs Cultivating a Culture
Culture can't be installed like software. Brett shared anecdotes — a "swearing jar" from an acquired firm was removed because culture shows up in small, everyday norms. Respecting each team's ways and bringing people into decisions makes transitions smoother than forcing top‑down rules.
26:31 Balancing Productivity and Happiness
Happiness and productivity reinforce each other when expectations are clear and people feel valued. Brett gives teams flexibility — remote work, understanding different work rhythms — and believes happier employees are better for clients and for retention. Small gestures of recognition go a long way.
"A bottom-up strategy helps track goals effectively."
Brett Bernstein, CFP®
CEO, XML Financial Group
28:30 The Role of KPIs in Business Growth
Brett uses KPIs as flight plans. He asks every team member to create a personal business plan: CFP, new clients, professional goals — then builds the firm budget from the bottom up. That ties individual ambition to firm objectives and makes measurement straightforward.
31:19 Navigating Leadership Through a Bottom-Up Approach
The bottom‑up method prevents unrealistic top‑down targets. Brett won’t announce a billion‑dollar growth goal without the team capacity to achieve it. Asking people where they want to go and funneling that into company goals creates ownership and traction.
32:44 Essence of the Culture
"I want every person who comes to XML to be able to retire at XML." — Brett Bernstein
That sentence captures the culture: opportunity, internal mobility, and equity for those who stay and contribute. Long tenures at XML are evidence the model works when people can see a path inside the firm.
"Would you ask a pilot to fly a plane without a flight plan?"
Brett Bernstein, CFP®
CEO, XML Financial Group
34:30 Balancing Leadership and Advisory Roles
Brett remains a practicing adviser because he believes a leader must understand the core client work. It requires deep delegation, an excellent support team, and being strategic about client intake. His dual role keeps him connected to the product he’s scaling.
38:43 Overcoming Challenges & Learning from Setbacks
Market downturns, client departures and regulatory noise are inevitable. Brett admitted those moments hit hard early on. Over time he learned to reflect, extract lessons, and leverage communication and process to reduce recurrence.
41:11 Personal Growth Through Life Experiences
Years of running XML, parenting, surgeries and setbacks shaped Brett into a more patient, listening leader. He’s learned to accept different working styles and prioritize understanding over quick judgment.
"Ninety nine percent of everything can be fixed with communication."
Brett Bernstein, CFP®
CEO, XML Financial Group
43:32 Finding Grounding in a Fast-Paced World
Brett's simple grounding rituals include moving between locations, long dog walks, and yes — a healthy dose of reality TV to switch off the news cycle. Small rituals matter for leaders under constant pressure.
45:56 Happiness as a Driver of Positive Relationships
Happiness is not fluff; it's a performance driver. When Brett is happier, his relationships at work and home improve, and that energy cascades through the firm.
48:11 The Importance of Communication in Business
Most problems can be solved by direct conversation. Brett urged people to pick up the phone, walk into an office, or use video to clear misunderstandings instead of hiding behind chat or email. Open dialogue keeps talent from silently walking away.
"AI can't replace the human touch in financial services."
Brett Bernstein, CFP®
CEO, XML Financial Group
49:53 AI's Role in Financial Advisory Services
Brett is pragmatic about technology: AI will change workflows and create efficiencies, but it can’t replace human presence in emotional moments. His rule of thumb: if your advisory work can be fully replaced by AI, you either lack differentiation or you have the wrong client. XML uses AI where it adds value while protecting human judgment and relationship work.
52:13 Future Aspirations for XML Financial Group
Brett wants to continue growing XML responsibly — heading for multi‑billion asset milestones while preserving culture and people opportunities. He aims for higher AUM with the right talent, continued M&A where fit matters, and more travel and health‑focused balance in his personal life.
Closing Thoughts
Building "People-First, Beyond AI, Advisory Firms" is a practical project: hire well, listen loudly, create shared ownership, measure from the bottom up, and apply technology without losing the human moments. Brett's journey shows that scalability and soul are not mutually exclusive — they can be the same strategy when leaders design systems that value people first.
Insights on Scaling a People-Centered Business Beyond AI
Here are some take-aways for any business leader who wishes to scale their professional service business by building a customer centric company culture.
- Client-Centric Approach: XML Financial Group emphasizes doing what's best for the client, ensuring that their needs and interests are prioritized.
- Legacy Building: The firm is designed to outlast its founders, focusing on creating a sustainable and enduring business model.
- Bottom-Up Strategy: Encouraging input from all levels of the organization helps in setting realistic goals and fosters a sense of ownership among employees.
- Cultural Integration: Successfully merging different company cultures during acquisitions requires listening and respecting existing practices while introducing new ones.
- Balancing Happiness and Productivity: A positive work environment where employees feel valued leads to higher productivity and job satisfaction.
- Role of KPIs: Key Performance Indicators are crucial for tracking progress and aligning personal and company goals. When combined with the bottom-up approach to organization building, KPIs become meaningful both to the employees and the management and help create an engaged, high-performing culture.
- Embracing Change: Personal and professional growth often comes from embracing change and learning from life experiences.
- Communication is Key: Open and effective communication can resolve most issues within an organization, fostering a healthy work culture.
- Human Connection in Advisory Services: Despite advancements in AI, the human element remains irreplaceable in providing personalized financial advice and support.
Article Creation Process
This article was created with the help of Artificial Intelligence from a live, recorded video conversation between Bhavesh Naik, Host of "The Business Philosopher Within You podcast" and Brett Bernstein, CEO of XML Financial Group.
While AI's help was sought for many aspects of the article, the structure of the article, driven by the creation of the index, is mainly a human process that requires significant natural intelligence and input.
