Understanding what makes each family tick

Tyson Ray’s approach to wealth management has evolved significantly over the years, driven by the advancement of technology and new practices. However, one thing has always remained consistent – and that’s his client-centric strategy.

The CEO, Founding Partner, and senior wealth advisor at FORM Wealth Advisors, Ray has been named a 2018-2024 Forbes Best-in-State Wealth Advisor, 2021-2024 Barron’s Top 1200, and a 2005-2024 Chairman’s Council Advisor.

Reflecting on his early career, Ray tells InvestmentNews: "I was in my early 20s, one or two years into the business, working under a senior advisor who was the classic stockbroker. This was the late 90s, and technology hadn't yet caught up. People relied on their stockbrokers to know what the markets were doing."

He goes on to explain that the challenges of that era, where real-time communication and rapid decision-making were almost impossible due to technological limitations.

"The market was moving faster, and as technology started coming online, I realized that calling clients to get them out of stocks was impractical," Ray adds. "You couldn't call them fast enough, and not everyone benefited equally from our efforts. I felt this was a disservice to my clients. I began offering fee-based advisory services to avoid the commission notification process when appropriate. This provided me the ability to focus on doing the right thing. Today, we primarily offer fee-based advisory services charging a flat fee based on a client's total assets under advisement. However, if deemed appropriate and in our client's best interest, we also provide commissioned brokerage services. "

And it was this change that allowed him to develop predetermined investment strategies and portfolios for clients, designed to create a more consistent investment experience.

"It freed me up to realize my job wasn't about making money or trying to beat the market," Ray adds.

As he delved deeper into the behavioral aspects of investing, Ray came across studies highlighting that average investors often underperform their investments due to poor timing and emotional decisions.

"Investors often underperform their own investments because they wait too long to take money out or panic," he explains. "Our philosophy became helping clients behave better by keeping short-term needs out of the market. When the tangible items clients needed were not in the market, their overall portfolio experiences typically improved.”

Ray also discussed the evolution of his business, which initially operated under the name RE Financial Group. "I wanted to take my name off the business," he says, inspired by a philosophy from Duncan McPherson's book that introduced the acronym FORM—Family, Occupation, Recreation, and Mission. This philosophy became the cornerstone of their client interactions.

"The philosophy we have for a client is to understand what's going on in their family because money goes up and down that family tree. Occupation is another crucial aspect because it’s where a lot of money is made, and clients are transitioning into retirement.”

Recreation, the third component, involves hobbies and interests that often evolve. "People’s hobbies change every five to 10 years because they get bored or want to try something new. What’s the legacy you want to leave both when you pass and while you're still here?" he adds.

Looking to the emerging new technologies, Ray dismisses concerns that the financial services market is losing out on clients thanks to AI.

"[It’s about] realizing how to use technology," Ray adds. "Social media has made face-to-face conversations that much more special, whereas 20 years ago it was the norm. We’ve spent quite a bit of money and time building proprietary software and customizing it to capture information around family, occupation, recreation, and mission.”

At FORM, their software tracks clients' personal plans, from their next car purchase to vacation destinations.

“We’ve created fields within our CRM to help understand what the client is doing," Ray says. "Then we ask them, 'Hey, did you enjoy that vacation? How was the graduation?'

Using technology to track client activities allowed his firm to differentiate itself and better meet client needs. He believes many clients tolerate traditional discussions about portfolios and market forecasts but really want reassurance about their financial independence.

"Clients just want to know, do I have enough? Am I not going to run out? Can I do this? We can be in the permission business if we understand what clients are really trying to do and empower them to go do that.  Just answer the question, yes, you can or no, you shouldn't, and here’s why."

Part of Ray’s distinct approach to wealth management centers around having that strong two-way relationship with his clients.

“It's not just about understanding the client's finances but also their relationship to risk, money, their family, and their goals," he says. “There are three real aspects to a relationship: the plan for the future, the history of how they got here, and how to care for them going forward. The life plan is about understanding the client's story and what they've done to get to this point, the wealth plan is about funding their life plan, the care plan is  about how the advisor cares for the client.”

This deep level of engagement creates multi-generational relationships, a hallmark of FORM Wealth Advisors' success.

"We get to be that trusted resource," Ray concludes, "helping clients live a life that's so much richer than just a portfolio or performance report."

Disclaimer:

Securities through Raymond James Financial Services, Inc. Member FINRA / SIPC. Investment advisory services are offered through Raymond James Financial Services Advisors Inc and FORM Wealth Advisors. FORM Wealth Advisors is not a registered broker/dealer and is independent of Raymond James Financial Services. Managed accounts are charged Advisory Fees in addition to internal fees of investment company products, and should be evaluated when determining the costs of a fee-based account. A list of additional considerations, as well as the fee schedule is available in the firms Form ADV (Part 2A) as well as the client agreement. Please ask your Advisor to provide.

Any opinions are those of Tyson Ray and not necessarily those of Raymond James. Investing involves risk and you may incur a profit or loss regardless of strategy selected.

The Forbes Best-In-State Wealth Advisors 2024 ranking, developed by SHOOK Research, is based on an algorithm of qualitative criteria, mostly gained through telephone and in-person due diligence interviews, and quantitative data. This ranking is based upon the period from 6/30/2022 to 6/30/2023 and was released on 4/3/2024. Those advisors that are considered have a minimum of seven years of experience, and the algorithm weighs factors like revenue trends, assets under management, compliance records, industry experience and those that encompass best practices in their practices and approach to working with clients. Portfolio performance is not a criteria due to varying client objectives and lack of audited data. Out of approximately 44,990 nominations, roughly 8,500 advisors received the award. This ranking is not indicative of an advisor's future performance, is not an endorsement, and may not be representative of individual clients' experience. Neither Raymond James nor any of its Financial Advisors or RIA firms pay a fee in exchange for this award/rating. Compensation provided for using the rating. Raymond James is not affiliated with Forbes or Shook Research, LLC. Please visit https://www.forbes.com/best-in-state-wealth-advisors for more info

Barron’s is a registered trademark of Dow Jones & Company, L.P. All rights reserved.  The rankings are based on data provided by 6,595 individual advisors and their firms and include qualitative and quantitative criteria. Time period upon which the rating is based is from 09/30/2022 to 09/30/2023, and was released on 03/11/2024.  Factors included in the rankings: assets under management, revenue produced for the firm, regulatory record, quality of practice and philanthropic work. Investment performance is not an explicit component because not all advisors have audited results and because performance figures often are influenced more by clients’ risk tolerance than by an advisor’s investment picking abilities. The ranking may not be representative of any one client’s experience, is not an endorsement, and is not indicative of advisor’s future performance. Neither Raymond James nor any of its Financial Advisors pay a fee in exchange for this award/rating. Barron’s is not affiliated with Raymond James.

Raymond James Council Advisor membership is based on prior fiscal year production. Re-qualification is required annually. The ranking may not be representative of any one client’s experience, is not an endorsement, and is not indicative of an advisor’s future performance. No fee is paid in exchange for this award/rating.