Ray Ferrara, Founder & Executive Chair, ProVise Management Group

Invest: met with Ray Ferrara, executive chair and founder of ProVise Management Group to discuss milestones achieved by the financial planning and investment management firm over the past year, particularly focusing on succession planning, employee retention, and the challenges of transitioning leadership in a small business.

Reflecting on the past year, what have been the most significant achievements for ProVise Management?

We’ve had a succession plan in place for a long time to transition from my role as the founder. That plan isn’t fully executed yet, but it will be soon. I don’t want to commit to a specific date, but I’d be surprised if I haven’t passed on all of my ownership by Jan. 1, 2026.

It’s challenging in a small business to pass the reins. First, it’s difficult for the founder to step aside, and it can be just as hard for the next generation to step up and take control. I gave up the CEO title a couple of years ago.

The president at that time also passed his title to another member of the team early in the transition. But they weren’t doing their respective jobs. The CEO was still acting as the president, and the president wasn’t fully taking on his responsibilities. I still had some CEO duties as well. Finally, in a meeting, I said to them, “Gentlemen, titles come with responsibility.” They responded that they didn’t want to step on my toes. I told them, “Go ahead and stomp as hard as you can. When it hurts, I’ll let you know. But in the meantime, start running the ship.”

Transitions like that are always interesting. It’s been a significant, ongoing achievement for us. We’ve also been recognized as one of the best places to work in the financial services industry and in Florida, according to Florida Trend magazine. I’m very proud of that recognition. It means we have happy employees, which leads to happy clients, good retention, and the ability to continue doing things right.

What do you believe is the key to attracting young professionals to the financial planning industry today, and what are some challenges related to passing the reins, as you put it?

I’m very enthusiastic about young people entering the financial planning profession. It’s incredibly rewarding to help people, and it becomes personally gratifying when you see the plans you made 15 years ago come to fruition.

This business also offers a lot of flexibility. I’m heavily involved with the University of South Florida (USF), where I serve on the Executive Advisory Board for the Muma College of Business in Tampa, and I try to be an ambassador for attracting young people to the financial planning profession.

One of the challenges is that many young people don’t want to be salespeople — it feels icky to them. I remind them that they’re always selling themselves and that “selling” isn’t a dirty word. Our firm is 96% fee-based, not commission-based, which attracts young professionals. Another advantage we have is that we don’t need to have people “dialing for dollars” or knocking on doors for prospects. We receive great referrals from the accounting and legal professions, as well as from our clients. Our firm’s size and reputation mean we can grow organically.

Young hires spend their first two years learning our processes, which we call “the ProVise way.” During that time, we expect them to earn their Certified Financial Planner designation, which we pay for. Once they have that, they can begin working directly with clients and building their own careers. I’m proud of the retention we have — not just with clients, but with our staff. People rarely leave, unless they’re retiring. And although I’m 77 and don’t quite understand retirement yet, I can’t fault others who do.

Over the past 12 months, what areas of your services have seen the most demand?

Without a doubt, the greatest demand has been for retirement planning. It’s not just about helping people who are about to retire; it’s also about continuing to plan for those already retired. With inflation over the past few years, many people who felt secure are now worried they may not have enough to maintain their lifestyle.

We also have to remind clients that financial planning isn’t a one-time thing — it’s a continuous process. The second most common concern we address is why clients’ portfolios may not always keep pace with the stock market. We tell them that success comes from staying in the market and sticking to the plan. We’re not trying to beat the market; we’re trying to meet their goals with the least risk necessary.

The Federal Reserve cut interest rates by 50 basis points in September. How do you think this will impact your clients and your firm’s services?

The 50-basis-point cut marks the beginning of a new trend in lowering interest rates; however, the immediate effect is more psychological than financial. Just as it took the Federal Reserve nearly two years to control inflation with rate hikes, it will take 12 to 18 months for rate cuts to make a real impact. But right now, it feels good to know they’ve reversed course, which will eventually benefit businesses and individuals alike, especially those looking to buy or refinance a home.

What initiatives are you planning to ensure your clients stay engaged in their financial planning process?

We’re exploring ways to use AI to assist with planning. Right now, AI is more hype than reality in the financial industry, but we’re keeping an eye on its potential. I even took a course in AI from MIT’s Sloan School of Management to better understand it.

One of my concerns, though, is that clients may come to rely too much on AI and treat it as the definitive answer rather than consulting with professionals. AI is just a tool, not a replacement for the expertise of financial planners, accountants, or lawyers.

AI is only as good as the data it’s given, and no one has figured out how to recreate human emotions in that data yet. My concern is that some firms may try to sell AI as a “magic solution,” but it’s just another tool in the toolbox. It can’t replace the emotional guidance a human advisor provides.

What trends do you see shaping the future of financial planning?

The financial planning profession has built a large body of knowledge, but there’s still much to learn. Younger professionals are showing great interest in doing research and creating new ideas, which I find very encouraging.

Another trend is the growing importance of the Certified Financial Planner (CFP) designation. With over 100,000 CFPs now, I believe the next 100,000 will come much faster. Without it, it’s going to be hard to call yourself a financial planner in the future.

We’re also seeing more young people start planning earlier in life, which is a great trend. The sooner you start planning, the better your chances of success.