10 Years of Client-First Commitment

Ben Beck of Beck Bode LLC

By Kevin Adler

February marked 10 years since Benjamin Beck and James Bode launched Beck Bode LLC, and the two former Northeastern University athletes have turned the Dedham, MA, firm into a winner. The firm now serves approximately 1,300 clients and manages about $700 million.

Beck and Bode were working at Merrill Lynch in downtown Boston when they decided to set up their Fee-Only firm. “The idea was to … [create] the biggest impact in the lives of our clients, as well as in the lives of any other people we would meet in the future. We believed it would only be possible in an environment where we could be in control of that impact,” says Beck, CFP^®, managing partner and chief investment officer.

Discussions began around Christmas in 2012, and they set up shop in February 2013. “It wasn’t a long process—it was ‘let’s go do it,’” Beck says.

Even though the decision came quickly, the partners were not in a “shoot first, aim later” situation, Beck explains. Armed with a clear investment philosophy, the skills to attract clients and build referral relationships, and contacts with independent firms and brokerage firms, they knew they had a solid game plan. “We saw opportunity out there,” he continues. “It’s been a tremendous ride so far. But I feel like we’re only getting started.”

Trust Relationships

From the beginning, their playbook was to present a client-first service with an investment policy that was easy to explain. “The ideal client for us … comes to take our advice because, above all else, it is our advice,” Beck says. “Not only are they folks who want the help and need the help, but they are also willing to be coached. Once we give them the help, they take it and follow through.”

Client relationships are built on trust and a heavy dose of education about the importance of staying with their long-term plan. “It’s one thing for them to trust you, and it’s another for them to understand what you’re doing,” Beck says.

Many of the key ideas come from David Mallach, a managing director at Merrill Lynch who developed a methodology and discipline for investing that was widely shared within the company. Beck says that when he heard Mallach speak at a lunch seminar, he found new clarity about how to link an investment allocation to a client’s actual financial and personal goals.

At the time, Beck had his Series 7 and was in training as a Merrill advisor. He would present a client with the results of quantitative analysis, but he didn’t know why that recommendation was right for them. For example, why should a client roll over 22% of a 401(k) to a particular mutual fund? That recommendation was an abstraction, and he was frustrated.

“I’m an optimistic person, and I want to contribute to people’s lives, but I needed to learn how,” Beck says.

Mallach opened that door. He became Beck’s mentor, and they remain in regular contact. “David Mallach gave me a context, a structure, which: 1. I could understand; and 2. I could explain so the client could understand,” Beck says.

Making the Break

Armed with that newfound clarity, Beck went about growing his client base and building relationships. But he found that operating within the structure of a financial giant still had numerous restrictions. That’s why he and Bode decided to go out on their own.

Beck Bode distills Mallach’s principles to three questions that drive how it invests for its clients: What investments do you buy? When do you sell? Where do you reinvest the proceeds?

“We have specific criteria on how to buy a stock and a strict sell discipline … that is repeatable and understandable,” Beck says.

Beck Bode invests in individual equities, and it looks for companies with the following criteria (as well as others): well-established, heavily researched companies that have experienced numerous upward revisions in their future profit projections. When a company falls outside of those parameters, it’s sold—no hesitation, no regrets. Meanwhile, the firm has been identifying where to reinvest those proceeds to keep on track with the client’s long-term goals, risk tolerance, and other needs.

The buy analysis focuses on “finding good companies that are getting better,” Beck says, but he emphasizes that this is less important than knowing when to sell. “It’s not about selling at [the] top. It’s about avoiding disaster and acknowledging that companies go through cycles,” he explains. “When it’s time to move onto a new company, whether that’s Apple or an obscure company, it’s time to move on. This allows us to avoid emotion and things that are irrelevant to the buy-sell decision.”

Stock declines in 2022 put the strategy in play—and it worked as expected. “We had a few calls from clients that ‘this time is different’—and you can’t get much more different than a global pandemic. But we had very few clients who got very nervous … [or] went against our advice,” Beck says.

Of course, it doesn’t take a global pandemic for clients to engage in financially destructive behaviors, such as jumping into cryptocurrency investments or day trading, Beck says. Beck uses an idea from advisor consultant Nick Murray that his role is to help clients achieve their highest “real-life long-term return.” That phrase indicates how long-term investing is aimed at a concrete financial goal that’s defined by clients’ objectives. It’s investment management with a purpose.

“As passionate as we are about investing, I’ll be the first to say that … it’s not number one. Without an actual financial plan that connects the goals and objectives … you are just floating out there,” Beck says.

Often a client comes to Beck Bode because of a life change such as pending retirement, a divorce, or exercising stock options. But their true picture is much bigger. Through conversations, Beck says they develop a financial plan that’s like the blueprint of the house. When the blueprint is ready, then the house be built. Over the years, the house must be protected (risk management), and it could need expansion or renovation (needs of the homeowners change).  

Championship Mentality

Beck and Bode bring an athlete’s mentality to their firm, a can-do attitude and an energetic approach to building their business. Beck played baseball at Northeastern University and then for three seasons in professional independent leagues, and Bode played football at Northeastern. “From our perspective as athletes, it’s almost a contest [to see] how many people can we get in front of and impact and build relationships with,” Beck says.

Growth has come organically and through three acquisitions, as Beck Bode and the affiliated firms now number about 40 staff members. Among the first to arrive were advisors Beck and Bode knew from Merrill Lynch, who were attracted to the independence and client-first philosophy of the firm. Then, through activities at NAPFA and other organizations, they met potential partners among other independent firms, too.

That has led to three acquisitions, starting in 2015 with Boston Retirement Partners, founded by NAPFA member Paul Pignone. The acquisition brought about 250 new households under Beck Bode’s wing. Compass Rose Private Investment Management (Portsmouth, NH), another NAPFA-affiliated firm, was bought in 2020, and Intentional Wealth Advisors of Traverse City, MI, came aboard in 2021.

In each case, the acquired firms have retained their names, staff, office locations, and even separate brand-name websites. So far, the principals at each of the acquired firms remain active in the merged entities. Beck says the priority has been to pool together the best resources of both firms to create the most positive long-term impact for our new clients. “We intentionally seek out great leaders and great staff so that we can continually learn about (and often adopt) some best practices.”

In incorporating the acquisitions, Beck Bode centralized back-office activities such as compliance, payroll, and human resources fairly quickly. In contrast, in activities that touch clients more directly, such as planning, investments, and communications, the firm is going more slowly. “We are not in a hurry to change anything,” Beck says. “Rather, we are more interested in taking the time to introduce ourselves over time and continue building on that existing relationship.”

Growth will not be at the expense of Beck Bode’s core values, which line up with NAPFA’s fiduciary commitment. “We have a high level of respect for NAPFA and appreciate their advocacy for clients, for transparency in communication and compensation, among many things,” Beck says.

Now it’s about building the roster of highly qualified staff members. “I think the positive challenge for us right now is finding the right people who fit our vision and meld into our culture so that we can impact our clients in the greatest possible way. We are always looking for talented people who fit our culture and are interested in making maximum impact.” 

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Beck Bode LLC, at a Glance

Location: Dedham, MA

Website: Beckbode.com

Year founded: 2013

Number of staff: 40

Number of clients: 1,300

Amount of money managed: $700 million

Description of typical clients: “We have gone through many iterations of the ideal client definition. … In terms of what they need, I would say they need guidance. They need a person they can trust to help them make the best decisions toward reaching their goals. Equally, if not more importantly, they need help to avoid bad decisions, decisions that are often made because of emotional reactions to external circumstances.”

Typical client needs: Long-term planning, investment management

Favorite financial planning website: nickmurraynewsletters.com

Piece of advice to fellow NAPFA members: Do not follow the crowd. What you may hear daily from industry publications is not necessarily right for you and for your clients. Think critically and specifically about the person that you’re working directly with and craft something from a financial planning and investing standpoint that is unique to them, something that you feel can have the most impact in their lives.