Personal, Practical, and Proactive Client Service with Dr. James Flanagan and Jigar Doshi

Speaker A: I'm an advocate for women. I'm an advocate for longevity. And women are left to deal with the decisions that men make. A lot of times we all make them together, hopefully. But a lot of times it's women who live longer and have to deal with decisions. I think of a certain story of a woman who was single at the time. And when you're single, you really have to think about your Social Security. She didn't have a pen and she wanted it to retire and she wanted to take her Social Security. I really talked her out of it. I urged her to please not do it, and she did. She waited until 70 and she came back. We had our regular meetings and we were taking care of our other needs and helped to bridge that time through. And it truly was the best thing.

Speaker B: Welcome to the Active Advisor podcast brought to you by Harbor Capital. Join us as we learn from pros who have helped thousands of investors live better lives. I'm Brian Moore and I'll be chatting with some of the brightest minds in the financial advisory business, bringing you insights on practice management and investment research that works for advisors and their clients. Joining me today on this episode of the Active Advisor podcast are two very special guests from Ventron Financial Group. First up, uh, bringing you a four decades of expertise in wealth creation, tax reduction and retirement planning is Dr. James Flanagan, the president and founder of Bentron. He's a well respected advisor, author and educator dedicating to empowering clients nearing retirement through thoughtful fee based planning. Also joining us today is Jigar Doshi, a financial planner at Bentron with over 20 years of experience in financial services. And his background in chemical engineering and finance has given him a unique edge in maximizing returns and enhancing the client experience. Without further ado, welcome gentlemen and thank you so much for joining us.

Speaker C: Thank you.

Speaker A: Thank you, Brian. Thanks for having us.

Speaker B: Glad you're here. So here in the Active Advisor, we always love to get the conversation started by asking each of our guests, what's the first memory that you have related to money or investing? Let's start with you, jd.

Speaker C: So my first memory is when I was in college, we were assigned a project to evaluate a company. So it was a equity valuation class and um, a team evaluated a company, it was Emco, based out of Illinois. And we determined the stock at that time was trading around 12. And then we determined that the stock target price should be 29. And a year later, stock was trading at 29. So that's my first memory that this works. The theory that we are studying works in the practical world. And that has been the foundation of what we do. Stick to the valuations, stick to the discipline, and the results will come.

Speaker B: Excellent.

Speaker C: How about you, Jim?

Speaker A: Okay, Brian. Well, this is crazy because I have purposely, as I said, Jigger and I haven't discussed. We try to stay away from any conversation about anything related to this podcast. My story is so similar, it's crazy. In my high school, when I was young, I guess you could say that the 1980s sitcom Family Ties was loosely scripted from my life. I was the character Alex Keaton. I had my first subscription to the Wall Street Journal when I entered freshman year of high school because I was taking general business. We learned how to balance a checkbook, and the task of the class was going to be to purchase a stock. Okay. So what we did, though, was we sold Fuller Brushed products. People aren't going to know what Fuller Brush is, but it was door to door soap and brushed sales. So your commissions from Fuller Brush would be the seed money for the investment. Our class got its own tax ID number. We walked from the high school to David A. Norrie's brokerage house and opened a brokerage account. During the time we sold Fuller Brushed, we researched docs, as you did in your class. This is about sophomore year of high school or freshman year, I'm not sure which. And I bought Coleco. I wanted Coleco Products. That was my company, was a gaming company. I sold a lot of Fuller Brush, and you got as many votes for as many dollars of commission you had. So it was a wonderful experience. Coleco was amazing at that time. They were one of the first video game companies. I was a kid. It was like Peter Lynch, Backyard Economics. I got the bug. Then I used to stop at the library on my way home and chart stops. We would tape the paper together. I had. My parents worked here. I was into religious studies because I had, like strolls all rolled up of all the charts for the different stops that I had. So it bit me the day I walked into that brokerage firm. I knew that was my place and that's where I belong. So I've literally had this job my entire professional life. I've never, ever deviated from it or looked back. I have hobbies that I've dabbled in, but this is my passion.

Speaker B: Awesome. They say somehow sometimes college actually prepares

Speaker A: you for your career.

Speaker B: I was a liberal arts major. Didn't necessarily, but same thing. Like you, I kind of fell into it. But it sounds like you're actually high school and college really did prepare you

Speaker A: for Your career for sure,

Speaker B: planted the seeds early.

Speaker C: I'd love to hear a little bit

Speaker B: more about your background in the business, Jim. You were in the financial services business for 15 years before founding Ventron.

Speaker A: That's kind of.

Speaker B: Can you talk a little bit about that background, that prior time, and what was the catalyst for you to form Bentron?

Speaker A: Well, I'll tell you what it was. I started out in the insurance field and basically risk management, life insurance in the late 80s. And so at that time, if you go back and think about the progression, the mutual fund companies really aren't even mainstream in existence. Uh, The Tax Reform Act 86 has just gone through the investment world as we know it today. The landscape is completely different to what it looked like then. And so I evolved in the business through were starting in risk management, life insurance, disability insurance, property and casualty insurance. But I was captive to Prudential and learned quickly that I wanted to be independent. And that was my passion. And so some life events occurred that made me really look at my very successful time at Prudential. I, um, learned a ton and enjoyed my time, but I knew I wanted to at that time. I determined the people that gave me the most and that I got the most from, um, all had the same colored hair as me. Now it was all older people, older adults that I had surrounded myself with since I was young. And so it was kind of a natural thing for me to say I'm going to do work with people that are at or near retirement. And this is back in 1999, 1998, before retirement planning as we know it is, is really, uh, a thing. So that was a really pivotal point in my life where I kind of walked away from a successful business. Didn't take but three or four clients out of a thousand with me, and started Ventron.

Speaker B: Amazing. JD I've got to ask you went from a degree in chemical engineering to getting a master's in the financial markets. Love to hear what that journey kind

Speaker A: of looked like for you.

Speaker B: And how did you land at Ventron?

Speaker C: Well, I have a joke, uh, about that, that in my culture they say first you become an engineer or a doctor, and then you decide what you want to do with your. So it kind of like, I was good in studies and I didn't want to be a doctor. So engineering was the default option. I became a chemical engineer, and while studying engineering, I realized that I have a natural understanding of finance because there was a subject on finance that was taught in the third year of my engineering course. And that's When I realized that I have this natural, um, instinct towards finance. And what I thought at that point in time is that I had to do masters something related to financial markets. So to fulfill my dream, I came to United States in 2002. I did my master's in financial markets from Stewart School of Business. IIT now everybody around me, they were working for a bank, going to CS Tower, and beating myself nowadays Willis Star in Chicago. And that was my dream, too, that, you know what? One day I'll be just working in one of those tall buildings in front of a computer. And my dream was to become an equity analyst or some kind of analyst. But then I was looking for a summer internship, and this company, which now I know was a brokerage house, just hired me because they were hiring anybody who applied. I didn't know that. So I went there because I wanted to get some experience in real world. And I mean, just working and doing that task that was assigned to me. I realized that I can't create bond with people. I can build trust, raise confidence, give them good ideas, and then build a book of, uh, business. So one day I was just thinking that, should I. How do I want to live the rest of my life in front of a computer screen or in front of all these real different people? And to be in front of people really excited me that to be in a position where whatever little, you know, can make a meaningful difference in people's life. And that was the trajectory that took me on the path of financial services. And I met Dr. Flanagan in 2018. So I had my own home office until then. And then I wanted to expand. And I'm so glad that I found Dr. Flanagan and we were in the same brokerage company, IfG and it was a very smooth and easy transition for me from there on. And I consider myself very fortunate that I found him as my mentor and my partner.

Speaker A: And I, too. This, uh, TIDR has been an invaluable asset to us. Is that good skills or excellent?

Speaker B: That's amazing. That's awesome. It's good. When you see kind of good people find each other and do good work, you both seem like men of intention. So I've got to ask Jim, can you explain the meaning behind the name Bentron and why you chose that is the name of your firm?

Speaker A: I talk about this all the time. My father lied to us when we were kids and said that Latin was a required course in high school when it was not.

Speaker D: So.

Speaker A: And I spent a lot of time studying etymology and word derivatives. And so in Latin bene is the root for good. Or. Well, ah. Tron is the Greek root for an instrument of. So Ventron is our instrument of good. We work with a part of the population that's vulnerable. And it's our intention to try to always put the interests of the people that we work with first to serve their needs in the best way that we can with dignity and respect. And so that's kind of really the. The values I talk about that we try to imbibe, being honest about what we do and how we do it, transparent in the work that we do. So, uh, people don't understand it. I thought it was strange, but once I kind of got used to it, I've gotten, uh, very familiar with it and people seem to like it. So.

Speaker B: Excellent. Since you brought it up, since you got. I guess the firm is really focusing on people at or very near retirement. What challenges do you. Have you guys seen that this demographic is facing right now?

Speaker C: One thing that I think the challenge that this, uh, generation is facing is too much information. Lot of noise around them, guiding them towards. You should take Social Security at 62. You should be in this. Other medical plans that might not be in their best interest. You should do investments in so and such and such. Too much information around them. And what we provide is clarity and proper guidance. And sometimes because of this noise, it takes time for this demographic to understand that what we are saying is actually in their best interest. Sometimes we have to tell them that what you are asking us to do will make us more money. But we are. We don't want to do that for you because it is not in your best interest. And it takes too much time because now you're not starting from zero, but you're starting from negative. And then you are taking in the positive direction. So I think too much information. So from lack of information to, uh, too much information is I think the biggest challenge that we face.

Speaker A: I think dovetailing on that idea is the fact that we try to point out to people all the time that you're confused because you're asked to be a lot of things your parents and grandparents were never asked to be. You're supposed to be a Social Security timing expert. Now you have to understand Medicare, dental, drug programs, these ancillary benefits, deal with the barrage of all the marketing. You're supposed to be an investment manager too, because no one is. Pension people do. To be an investment manager, it would be helpful if you had a degree in psychology so you could counsel yourself through some of these late life Transitions. So you're asked to be um, a benefits manager, an HR expert, a healthcare expert. It's a lot of things and I think that's the biggest challenge that people face today. I say there's a level of confusion out there in the marketplace today that didn't exist five and ten years ago.

Speaker C: Right.

Speaker A: Because of all of these new things that have been kind of added to the menu of what we have to do in late life.

Speaker B: No, completely understand. I think that is one of the downfalls of having too much information these days and having too many programs and too many things out there. There is something to, for simplicity. Although it's nice that everybody has that choice is always nice. But so it sounds like, sounds to me like a key theme in your conversations are really around kind of focusing people back to what they need and the services that are going to benefit them the best.

Speaker A: That's correct. Everybody lives differently in terms of the way that we think. We have a concept we call purpose driven planning where we believe everything's done with purpose. No one's ever come to us and said, oh, I don't know what this money's for. They might say, I might need it for retirement. Everybody has a purpose and a meaning behind their plan and that helps to guide us.

Speaker B: Jd, do you have anything to uh, add to that?

Speaker C: I think that's exactly what we do is talk about their goals, their objectives. And one thing that we say is that divide your retirement expenses in three categories. Needs, wants and wishes. Secure your needs and wants. Push first and then go after your riches if you have extra money, resources. Because a lot of times retirees, they have this bucket list and they start, want to, they want to just check those boxes and they go straight after the wishes and then they realize that they don't have enough money left. Considering longevity and uh, everything that is happening around us in terms of longitudinal, if there was no longevity, there is no need of a retirement plan. But if we are going to live longer, that means that we need our money to last longer and to do the right thing. That is 30 years prior is what financial planning is.

Speaker B: You bring up an excellent point. People are living longer and I think that's one of the things. So how are you helping working with your clients on some of the non financial aspects of retirement? And how does, in your opinion, does this help you deepen kind of that relationship and strengthen those bonds with them?

Speaker A: Well, I think that's the entire reason that I began to pursue my degrees in gerontology was understanding that financial discussions and logic only take us so far. If someone's experiencing the pain of loss, the pain of transition, the loss of identity, there's a lot that's said about how difficult aging can be and there's a lot of truth to it. I think there is more opportunity than there is obstacle. But I think it's a focus on the non financial things, about what gives you purpose and meaning, uh, what makes you tick, what gets you out of bed in the morning and then really encouraging people to think about health and nutrition and activity and being conscious and mindful of movement. And there's so many non financial ways that we could try to help and influence people in the work that we do. So we try to surround ourselves with other people that can have a positive influence as we go through these transitions in later life.

Speaker C: I mean we work with different families and they might have the same goal, but the trajectory that they take to achieve that goal might be totally different because the family, they have a, ah, different temperament, understanding of life, their work experience, their life experience. So as a financial planner we dive deep into the dark. Not dark, but you know, all the corners of their lives that makes them who they are. Right. And based on that we kind of explain them the plan that works for them. And that's I think, the critical component. And in that process we know everything about them. Their personal life, their emotions, what keeps them um, up at night, what gives them good sleep. And so I think it's very important for us to know and we take copious notes of that. So every meeting we read those notes before we start and we are kind of aware of like how the meeting should be set up and what to say and what not to say. So I think knowing your customer is the number one rule of our business.

Speaker B: Well, this actually dovetails nicely into that. Knowing your customer. I'd love to hear from both of you. Is there a specific story or example that sticks out in your minds where you've made a positive impact on a client's life? And names aren't necessary, but it is nice to hear kind of for our listeners and for myself, where the rubber meets the road. And you're actually, I'm sure it makes you feel good as well.

Speaker C: I have one that is very close to my heart because this is, this is the time when I started working with Dr. Flanagan. And the uh, way we have built our business is through education. So we go out and give education in libraries, community events, corporate events, wherever we get an opportunity to speak. And then we don't filter clients Based on their net worth and what they have. So everybody's welcomed for a one hour complimentary consultation. So I think, uh, it was you who went to this library. I don't remember which, but a lady came for the complimentary consultation, and she sat down and her hand was like this constantly, like, shaking. The first thing that she said was that I have no money and I don't know if I'm worth your time. So I was sitting with Dr. Flanagan. It was him who was going to do the meeting. I was just learning back then. And the first word that came out of, uh, Dr. Flanagan's mouth was, that's okay. How can we help you? And I saw him treat that lady with utmost dignity, care, love and affection. That kind of created that foundation in me too, as, uh, somebody who was starting out, that this is the way to build your business. And I think we gave all the answers to her that she had. And we had. I have tears in my eyes even now thinking about it, but we had tears in our eyes. She got up from the chair at the end of the meeting and said, can I give you a hug? And that's the story that is going to stay with me forever in terms of what we did.

Speaker A: Thanks, Jaguar. Break everybody down here on the podcast. Nice working. Dick and I did nice job. So, um, and I don't go to go a little lighter. I just. We call in the office, we call me brutally compassionate. And I think about times I really see my role. I've said this for a long time, and I appreciate men and all my men friends, but I'm an advocate for women. I'm an advocate for longevity. And women are left to deal with the decisions that men make. A lot of times we all make them together, hopefully. But a lot of times it's women who live longer and have to deal with decisions. I think of a certain story of a woman who was single at the time. And when you're single, you really have to think about your Social Security. She didn't have a pension and she wanted to retire and she wanted to take her Social Security. I really talked her out of it. I urged her to please not do it. And she did. She waited until 70 and she came back to me. We had our regular meetings and we were taking care of her other needs and helped her bridge that time through. And it truly was the best thing. And she came back after she was, oh, this is about 71 or 72. She goes, we didn't speak your name in my house for several years, but I'LL tell you what, Jim, that advice you gave me, it's made a difference in my life. It's given me a level of comfort and a peace of mind that I never ever would have had if I hadn't listened to you. And knowing that I can have that impact, that we have that impact, it has nothing to do with investment performance. It doesn't have to do. It has to do with making people understand what's really best for them. If someone's got a pension and it doesn't grow past 65, continue working, but take the pension from that old company. Like lots of little things like that that sometimes people need to know it's okay, it's okay to do this or it's okay to do that. But I think advocating for women and the results, uh, that has meant in countless lives of people that I've worked with is a big deal for me.

Speaker B: Excellent story from both of you gentlemen.

Speaker A: Thank you.

Speaker B: Final question for you. At Harvard, we're firm believers in active management. Though it's important to acknowledge that every financial expert has their own unique perspective. From your experience, what is your take on active management and where have you seen it making the most significant difference?

Speaker C: I think active management is important because it's the and I'm kind of equity valuation background. So what equity valuation does is it gives you those gems that are trading hopefully undervalued or has tremendous potential to grow. And it's the job of this active managers to find that those gems before it becomes part of s and P500. Of course you need it's our portfolio is a combination of active and passive investments. And the biggest benefit that we saw wasn't actually like during in 2020 during the pandemic, it was the active money managers that liquidated the stocks and bought stocks that were pandemic friendly in a way. So zoom and peloton of the time and they just got all that and some of the funds did it so well in 2020 that was the best performing gear if I know, if I remember correctly in the past five years. So I think active management is extremely important.

Speaker A: I have to agree. I believe that there's an alpha given uh, investment expertise and experience knowledge long term in the markets matter. I think somebody like Charlie Munger or Warren Buffett, uh, are proof, living proof that, that knowing when to do certain things makes sense in everybody's life no matter who you are. There's old saying, there's a reason why Baskin Rabbits makes 31 flavors. Right? Everyone wants something different. Everybody believes something different. And that's why the markets are efficient. So active management is a key to, uh, way to, to try to exploit any inefficiency in the market.

Speaker B: Last but not least, gentlemen, how could people find you guys?

Speaker A: Well, www.bentron.com that's B E N T R O N dot com. Or you can call us 630-505-8375.

Speaker B: Excellent. Okay, gentlemen, we let you take a deep breath. We're going to move on to my favorite part of the podcast. I call it the Lightning Round. Officially it's called 60 seconds with Dr. Jim Flanagan and JD nickname JD planner.

Speaker A: Bland man.

Speaker B: Hidden Talent.

Speaker C: Stooly Comic.

Speaker A: General Construction Services.

Speaker B: Best professional advice you've ever received.

Speaker C: Focus on the process and not the outcome.

Speaker A: Uh, always be honest with people. Tell the truth.

Speaker B: What should go to relaxation activity after a busy week?

Speaker C: I have two young boys, 30 men. Chen. So my mortgage. Most relaxing activities, Talking to them, Being

Speaker A: at home with the dogs.

Speaker B: What's one question you think all clients should ask their financial advisor?

Speaker C: I would like them to know a little bit about me as a person. So not just financial questions, but personal questions about me would give them a good understanding of, uh, who I am as a person.

Speaker A: I would ask the person, what gets you out of bed in the morning? What motivates you? What gives you purpose and meaning? What has brought you on this path and why are you here?

Speaker B: Favorite way to get active?

Speaker C: Playing with my boys. Anytime I get an opportunity to go out and play with them, I can't

Speaker A: be stopped tinkering around.

Speaker B: Whether you're a seasoned advisor or just getting started, the Active Advisor brought to you by Harbor Capital offers professional insights for the financial advisor community. Visit us@harborcapital.com to learn more. And don't forget to subscribe. Please the Active Advisor on Apple, Spotify, Google Podcasts or wherever you listen to podcasts to stay up to date on investment trends, tried and tested research methods and what your industry peers are up to. From all of us at Harbor Capital, thanks for tuning in.

Speaker D: And now for important disclosures. This material is for informational purposes and is not intended to be relied upon as a forecast, research or investment advice and is not a recommendation or offer, uh, or solicitation to buy or sell any securities or adopt any investment strategy. The opinions expressed are, uh, as of 15th of November 2024 and are, uh, subject to change. The opinions expressed by the speakers do not necessarily represent the views of Harbour Capital Advisors, Inc. The information and opinions contained in this material are derived from proprietary and non proprietary sources deemed by Harbour Capital Advisors, Inc. To be reliable and are, uh, not necessarily all inclusive and are not guaranteed as to accuracy. This material may contain forward looking information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any of these views will come to pass. This material may not be representative of the experience of other individuals. Reliance upon information in this material is at the sole discretion of the viewer. Uh, this material is not legal, tax or accounting advice. Please consult with a qualified professional for this type of advice. Investing involves risk, including the risk of loss. Stock markets are volatile and equity values can decline significantly in response to adverse issuer, political, regulatory, market and economic conditions. Fixed income investments are affected by interest rate changes and the creditworthiness of issuers. As interest rates rise, the values of fixed income securities are likely to decrease. Specific companies and issuers are mentioned for educational purposes only and should not be deemed a recommendation to buy or sell any securities. Any companies mentioned do not necessarily represent current or future holdings of any investment products. Harbour Capital Advisors, Inc. Does and may seek to do business with companies covered in this podcast. As a result, listeners should be aware that the UM firm may have a conflict of interest that could affect the objectivity of this podcast. This material is prepared by Harbour Capital Advisors, Inc. Harbor Capital Advisors, Inc. Is not affiliated with Bentren Financial Group, Inc. All trademarks or product names mentioned herein are, uh, the property of their respective owners. Copyright 2024 Harbor Capital Advisors, Inc. All rights reserved.