Announcer:
It’s time now on KROS for Financial Focus, brought to you by NelsonCorp Wealth Management. The opinions voiced in this show are for general information only and are not intended to provide specific advice or recommendations for any individual. Any indices mentioned are unmanaged and cannot be invested into directly. Registered representative securities offered through Cambridge Investment Research Incorporated, a broker dealer member FINRA, SIPC. Investment advisor representative Cambridge Investment Research Advisors, incorporated, a registered investment advisor. Cambridge and NelsonCorp Wealth Management are not affiliated. Cambridge does not offer tax advice. Now, here’s today’s Financial Focus program.
Gary Determan:
Always a pleasure to have David Nelson in studio. Of course, you weren’t here long ago for our men’s. So it’s always great to have you in.
David Nelson:
Yeah, thank you. I enjoy coming in and blabbing a little bit about stuff other than business. It was kind of fun. Yes. Usually it’s in the years past, it’s been talking hoops as far as a ton and as far as coaching varsity basketball and some of the pros and cons of that. So now that’s no longer part of my life. It’s a little different to say the least.
Gary Determan:
I happen to be at the gym on Monday. The Joe O’Donnell Sports Center. Didn’t see Joe there though.
David Nelson:
Oh, really?
Gary Determan:
Yeah. Joe wasn’t there. I was kind of surprised by that.
David Nelson:
I know he goes south as far as down to his brother’s for like a week or two. His brother lives in Texas.
Gary Determan:
Right.
David Nelson:
And so he gets on a plane. I mean, people help him and whatever, whatever and he’ll go down there for a week or two. So that’s probably it. I would venture to guess.
Gary Determan:
But Hakeal Powell had 40 points in the ball game, and then I see last night where he now is the school record holder for points. I think it was probably for Prince of Peace.
David Nelson:
Really? Okay.
Gary Determan:
Because I have no idea how many points like a Joe Bergman,-
David Nelson:
Yes. Going back.
Gary Determan:
Might’ve scored.
David Nelson:
Yes, exactly. Staggering. Yes. Yes.
Gary Determan:
I mean, and Brent Murphy.
David Nelson:
Yes.
Gary Determan:
You guys had some outstanding basketball in the 60s into the mid 70s.
David Nelson:
Exactly.
Gary Determan:
But I’m thinking the record that he broke might’ve been held by I think Seth Moeller.
David Nelson:
Oh, okay. Yes.
Gary Determan:
That comes to mind.
David Nelson:
You’re probably right. You’re probably right. In recent times, he would clearly be the,-
Gary Determan:
I would think so.
David Nelson:
The man. Now we’ve got a different man.
Gary Determan:
Yeah. Yeah. I know Seth’s brother Nate got just to a 1000 points.
David Nelson:
Yes.
Gary Determan:
It was a tournament game.
David Nelson:
Yes.
Gary Determan:
They lost to Easton Valley. He hit a free throw. They gave him exactly 1000 points.
David Nelson:
Wow. Good memory. That’s cool.
Gary Determan:
Well, I mean, you’d hate to end your career at 999.
David Nelson:
Yes. Right.
Gary Determan:
But he got to 1000. Thank goodness for that. But Hakeal is only a junior.
David Nelson:
Yes, yes.
Gary Determan:
So he’s got another season to go yet.
David Nelson:
Yes.
Gary Determan:
I mean, people aren’t going to touch his record at all.
David Nelson:
Yeah, he put in a lot of time and he’s a good kid too. That’s the other part of it. I mean, again, there’s some people you cheer for. We talk about the Iowa women basketball and Caitlin Clark, and she’s a good person. You cheer for people like that. Some of these other people I could, I mean, to me that’s front and center, and then the sports are just an added benefit. But he’s a good kid. He’s worked really, really hard at it. The team that he’s been with has needed him to score. I mean, there’s a few other people that can put the ball in the hole.
But yeah, he’s done a really nice job. And again, I did not realize as far as, my life’s a little different these days as far as now the tax season’s underway and just traveling as far as much as I have, as far as meeting clients, what have you. So I haven’t really seen a lot of him this year. I saw him play Marquette, and that unfortunately wasn’t an outcome that we wanted, but Marquette’s got a really solid team. They took down, ooh, what’s the team that’s dominated as far as this area?
Gary Determan:
Not North Linn.
David Nelson:
North Linn. They took down North Linn. Yeah. Yeah.
Gary Determan:
Oh my goodness.
David Nelson:
Yes. And North Linn had lost, I think Jerry said in three years. So it was just wow. Holy buckets. And they got them, so.
Gary Determan:
And North Linn’s not afraid to put some points on the board against you.
David Nelson:
Exactly. Yes. Yes. Yeah. We’ll keep the starters in for a while. Yes.
Gary Determan:
They’ll run up the score on you. There’s no doubt about that.
David Nelson:
Yes, yes.
Gary Determan:
But yeah, in fact, the Irish, we’re going to have their tournament game on Monday. They host Springville with a win there. In all likelihood, they’ll have to play Marquette.
David Nelson:
That’s what I heard.
Gary Determan:
I think it’s going to be up at Marquette.
David Nelson:
Up at Marquette.
Gary Determan:
Because it’ll be a district semifinal or final.
David Nelson:
Yes. Yes.
Gary Determan:
So yeah, it’ll be tough.
David Nelson:
Yeah. Yeah.
Gary Determan:
But staying with the Irish,-
David Nelson:
Yeah.
Gary Determan:
What a job Gerry Murphy has done.
David Nelson:
Yes.
Gary Determan:
Now in his 23rd year.
David Nelson:
Really?
Gary Determan:
He’s approaching 300 wins in his career.
David Nelson:
Wow.
Gary Determan:
Which I know John Lingle had, I believe over 300 wins in his time with the Irish. So it’s an amazing job that he’s done there.
David Nelson:
It is.
Gary Determan:
And I know you leaned on Gerry quite a bit when you were coaching.
David Nelson:
Yeah. Yeah. We were a good tag team as far as, again, the period that I was there, Murph and I were literally best friends. We worked together as far as, I mean, he understood his skillset and shooting, his ability to help teach players to be better scores, shooters, what have you. In my opinion, he’s the best that I’ve been around. I mean, literally, he’s awesome. And he could pick up stuff that I did not see. So that was very, very helpful. And what I brought to the table as far as with him is probably more of the behind the scenes type stuff where you’re trying to coach people mentally to be tougher as far as in that regard. And to, again, be able to work as a unit and motivating people. I really felt that that, I had one person, he was at the newspaper for a number of years, Larry Brennan, and I really liked Larry.
And anyway, we spent a fair amount of time together and would talk, and he was one that was there when I was looking at retiring after six years, my first go around. And he said, “You can’t pack it in. You can’t quit.” I said, “But I am.” I said, “I committed to six years. I’m done.” He said, “No, I’ve been around a lot of people and seen a lot of basketball.” And he said, “You get more out of your players than there’s one other coach, the two of you, one on the boys, one on the girls side that have gotten more out of your players. You haven’t had a tremendous amount of talent, but look at your records.” And so it was nice to be acknowledged as far as that, yes, I think I’m a good motivator. I think I can get more out of people than a lot of people can.
I can link up with the kids, what have you. And at the end of the day, we had success because of that. And we had success because Murph helped me a lot as far as in the coaching, as far as scoring, what have you. So it was a really good tag team. I miss it immensely. People bring it up to me all the time, “You miss coaching?” And I said, “I absolutely loved it, but I’ve now got 12 grandchildren.” We’re starting to get to the ages where they’re participating in sports. Our business is really demanding a lot more. We’ve expanded some of the offerings and whatever there, as far as Medicare supplements, what have you. I’ve got a few other responsibilities.
And so subsequently, I had to step aside. And I miss it. Yeah. I had some great kids through the years. And actually we literally got confirmation yesterday, one of my past players that graduated in two and a half years at Iowa, we’ve been chatting for a while and she’s coming to work for me. So I’m really, really pumped up and excited as far as about that. She’s a great, great individual, and she’ll be a really nice addition as far as to our office.
Gary Determan:
Can you give the name or?
David Nelson:
Yeah, Isabelle Hanson.
Gary Determan:
Oh, okay. Well, I’ve heard of her. Yeah.
David Nelson:
Yeah, Is. She was,-
Gary Determan:
Two and a half years from Iowa.
David Nelson:
Two and a half years and she got out of there with very little debt. Jenny’s daughter. Yeah. Yeah. I mean, this kid knows how to work. I mean, again, there’s players that you coach that have a fair amount of, I guess I’d call it kind of natural talent. She’s not one of those, but yet she was a starter for me, I think for four years. And why? Because she knew how to work hard. She was a grinder. She was smart. And again, just the type of person you want to be around. I mean, I was told I spent a whole bunch of money. I went up to some coaching as far as up in Toronto, Canada, several years back. And this has to do with business. And basically what this guy said is you need to surround yourself with people that help you accrete energy versus zapping energy.
And so whether that’s a spouse, whether that’s a fellow employee, you need to really focus on that. And it was great advice. And she’s in that category. She helps you accrete energy because she’ll outwork just about anybody, just like her mom. And at the end of the day, she’s going to be just a fantastic addition as far as to our operation. She’ll start in the low end like everybody else does and have to work her way up. But she’s got a good future ahead of her, whether it’s with me or whatever she decides to do. It’s absolutely fantastic. And yeah, we’re looking forward to having her there.
Gary Determan:
Well, that is great to hear. And before we get to the weather break, you bring up something so important, surrounding yourself with good people,-
David Nelson:
Yep.
Gary Determan:
People that maybe you can outsource some different things to them, but having that positive attitude.
David Nelson:
It’s really, really key. And again, I would tell my kids, and I would tell my basketball players the same thing, “If you’re happy, tell your face.” And they kind of look at me and I say, “Tell your face you’re happy.” Okay. So it is important. And again, being around negative people, you’re going to become negative. And we don’t want that. And so we’re blessed as far as to be in the business that we’re in. We’re blessed to live in the town that we live in, even though people whine about it. And I said, the people that whine about everything under the sun, I said, “You’ve never traveled much.” Okay.
I have a daughter that lives in for quite some time or in around Chicago in a really wealthy suburb. And they had potholes that were as big as your car. And people bellyache about potholes and whatever. Everybody has them, okay? It’s not just Clinton, Iowa. Everybody has them. And so let’s get over it. Let’s find the good. Let’s not focus on the bad and let life can be a lot better. So anyway, we try to have that as far as in our business, and we got a lot of really good people that are really working hard right now. I mean, you go into tax season and I don’t know, take a peek at the parking lot. It’s hard to find a parking spot down there a lot of times now because people are excited. They want to get their taxes done and hopefully get a refund. And so they’re coming in fast and furious as far as coming in the office.
Gary Determan:
Well, you speak the truth. Every once in a while, we’ll take a look at our back door and yeah, your parking lot is pretty well full, no doubt about that. We got more with Dave Nelson. Let’s take a break for the weather now. Brought to you by Kelly Heating & Air Conditioning.
Andrew Stutzke:
We are tracking some areas of dense fog that will linger throughout much of the morning, but by the afternoon, that will head on out of here, leaving us with mostly cloudy skies and highs in the mid 50s. For tonight, mostly cloudy. We’ll drop to the mid 40s and a few showers and storms still on track for your Thursday as we scoot to the low 60s. With your storm track eight forecast, I’m meteorologist Andrew Stutzke.
Gary Determan:
Right now we do have overcast guys, 32 degrees. Our update brought to you by Kelly Heating & Air Conditioning.
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Gary Determan:
Going to conclude the program with live with Dave Nelson to the bottom of the hour, so.
David Nelson:
Yeah, beautiful.
Gary Determan:
As you mentioned, it is tax time.
David Nelson:
Yes.
Gary Determan:
And you guys have expanded your services so much to deal with these times of years.
David Nelson:
Yeah, I had a person in yesterday that was 88 years old. He has three different individuals that he currently works with, not us. And he came in, he’s heard some things and whatever, and a couple of people told him he needed to stop in. And so we spent some time and I went back through kind of the history of day one, we were like, I think a lot of other people where it was money management. So you basically, somebody came in and for a price, you basically oversaw their money and managed it, hopefully made some money for them as well as making some yourself. That’s day one. Day two was, Hey, geez, we got a lot of people coming in here and they don’t have their proper documents in place, wills, trust, et cetera, et cetera. So we brought in as far as some legal, so we have an attorney that does estate planning.
And we’ve had that relationship for now, literally 40 years as far as with this particular firm. And so they come to our office once every two weeks and we have clients come in and get their estate planning as far as taking care of. So that was good. We were really minus an important piece that we wanted, but the rules and regulations as far as from the accounting perspective and from the investment perspective, they didn’t jive very well as far as being able to put that puzzle together. So eventually we figured it out. Eventually we’re able to bring it in-house. And through time we basically acquired three different CPA firms, bought them out and again, had the people help transition. They worked in our office for a number of years, several of them. And bottom line is at some point they now went into retirement.
So that was what we thought was the trifecta. That’s pretty much all we needed. So we’ve got the tax issues we’ve taken care of, we’ve got the investment issues, and we’ve got the legal stuff taken care of. But through time, we just would get question, after question, after question with a lot of the folks that we work with. They’re 60, they’re 70, they’re 80 years old, and Medicare was a big, big item. And so bringing Medicare in-house wasn’t something, again, that was at the top of our list, but we felt that, hey, this is something that we’re going to need to do. And so over the last couple of years we’ve been working at that.
And so this year was the first year that we rolled it out. And we’ve got a lot of people that we basically are working with right now as far as in that capacity. So we do think we’re done now as far as the type of services, as far as that. And again, for individuals that are 30 years old, we’re probably not the place they should be coming to. For those individuals that are 60, 70, 80 years old, having all of the services under one roof, I think it’s been received amazingly well. I think it’s what people have wanted for quite some time, and it was a massive undertaking. But we’re there and we think we’re in really good shape as far as in that regard.
Gary Determan:
So you’re not going to be flipping burgers or anything like that.
David Nelson:
We thought about them. Just kidding. No. No burgers, no sandwiches.
Gary Determan:
So with the additions of all the services that you now provide, I would imagine also different personnel. I would imagine that has changed quite a bit.
David Nelson:
It has the skill sets that are needed today versus the skill sets that were needed 20 years ago, 30 years ago, what have you, are night and day different. I’ve always had a good background as far as in taxation. So again, not trying to put people to sleep here, but just to kind of, again, those that don’t know as far as my background, most people that are so-called in the investment arena have passed exams series six, series seven type exams. Maybe you’ve heard those terms before. And essentially what they do is they allow you to be able to be legal to offer investment services as far as to people. So in other words, what I like to say is they’re legal to sell you a product, but that’s it. They’re not necessarily trained from the standpoint of taxation, estate planning, the other important issues as far as that that an individual needs to deal with, the average person needs to deal with.
So I started years and years ago as far as the first designation that I got. Again, each one of these is a two-year commitment, and the CLU was first. And that has to do with insurance planning, that has to do with estate planning primarily. Those are the two main focuses. Next in line, another two years was what’s called the CHFC, which is Chart Financial Consultant. Well, the chart and financial consultant has to do with primarily the most important thing to our clients, the bulk of the clients we work with that are retired, and that is cashflow planning. So again, helping from a tax perspective, helping from an investment perspective, cashflow planning. The next one that I got was CFP, which is Certified Financial Planner. That one probably most people are familiar with, that gets a lot more press and attention and what have you.
And that one’s much broader. It’s income taxes, it’s investments, it’s estate planning. It’s a whole bunch. The final exam is two days. It’s a lot of fun, trust me. But it’s a two-year commitment. And the bottom line is it’s a two-day exam and 43%, I think passing ratio back when I took it, which was primarily attorneys and accountants and 43%. So it was a very tough exam. Fortunately I got through it. But that I think allows me to be able to counsel people versus selling them something. And I think there’s a big, big difference. And I try to make that distinction with people. Like the gentleman I started referencing that came in 88 years old, he’s working with investment people. He’s working with, as I call it, salespeople. He’s not working with somebody that’s advising him. He’s working with salespeople.
And again, not that salespeople are bad. I’m not saying that. I’m just saying in our line of work, when people realize that you’re willing to jump in the boat with them in a fiduciary capacity, and as they succeed, you succeed and if they suffer or you suffer, they really like that concept. And so that’s been our business model now for give or take, 30 years. And I think it’s a good business model versus the old traditional one, which was you’re a broker and you’re selling people something.
Gary Determan:
Again, visiting with Dave Nelson on Financial Focus. Now, Financial Focus on a weekly basis is generally handled by Nate Kreinbrink.
David Nelson:
Yep.
Gary Determan:
Nate came to our community to work for the Clinton Baseball Club.
David Nelson:
Yes.
Gary Determan:
How did he end up at NelsonCorp Wealth Management?
David Nelson:
His wife. And so his wife was good friends with my daughter, my number two child. And I get a call from my daughter one day saying, “Dad, would you be open-minded to talking to geez Nate,” and geez, I’m drawing a blank on her name now. Anyway, so Nate’s wife. “And bottom line, would you be willing to talk to him as far as about possibly coming into this business?” And my response was, “No. No, I don’t have time. We don’t need anybody.” “Please dad, please dad, please dad.” So anyway, so I agreed to it, and he had been visiting with somebody else as far as about an opportunity. They had approached him. And so he wanted a second opinion as far as for me. And as I told him that day, pretty much what he was told, I don’t know how to say this nicely, but it was pretty much a bunch of lies.
You’re going to make a gazillion dollars your first year, blah, blah, blah, blah, blah. And then I had to smack him around and say, no, that’s not true. But I told my daughter, I said, “The only way I’ll agree to talk to him will be that the wife comes along as well, because she needs to hear this as well.” There’s going to be a major sacrifice that he’s going to have to make, and he’s going to be broke for several years. But if he can make it through that, he’s going to have a really nice career. And he has. Nate is a terrific person. He’s got a great heart one. Number two, he’s very good at what he does. And so yeah, you’re right. We turn the reins over to him as far as other than the live program. So he’ll bring up accountants at various times and whatever.
And I think my son James will come up here. John’s down to Quad City, so he’s not on I don’t think as much. But anyway, it’s really important. And we get people asking, “What do you find the value as far as to doing this form that we’re doing right now as far as being on radio?” And I said, “It’s reinforcing.” They’re asking us, “Do you pick up many new customers, clients, whatever.” And my response is, “No, but what I’d love about it is we have lots of clients that listen to this on a regular basis, and it reinforces to them, as far as a lot of the stuff that we talk about as far as when they’re in one-on-one.” Let’s be blunt. When markets aren’t performing the way that people want and they’re looking at statements and they’re going down, down, down, the bottom line is they need some reassurance.
And so what this venue, I think allows us to be able to do is on scale, give people some confidence as far as that, Hey, it’s going to be okay. We’re going to get through this, et cetera, et cetera. And it’s really worked great. We go to the 50, I call it 50 plus fair. I know it’s a little different wording, but you got the general idea. It’s great going there. And then people coming up and saying, “I listened to you on the radio, I really enjoy that,” et cetera, et cetera. And again, for me, I like it because again, I know I’m in a business and in an area that very few people get, and I want people to feel comfortable as far as that they can ask a question and not feel stupid about asking that question.
I know there’s an engine under the hood in my car. That’s all I know. That’s all I want to know because I have experts that are going to help me take care of the important stuff. I’m going to focus on what I’m good at and not try to be the jack of all trades.
Gary Determan:
Very good point. Again, visiting with Dave Nelson, wrapping up today’s program. We are just into 2024. How do you see the year?
David Nelson:
Yeah. Shockingly, we’re pretty optimistic. And for those that listen to me on a regular basis, they realize that there’s not a lot of, I’m a realist. I’m not negative, I’m a realist. But I think this year I would, if I had to bet, I would say that we’ll probably have an up year. That isn’t a given, as everybody I think out there knows. We had a big drawdown in 22, depending on again, what a person was invested in. You’re down 25, 30% if you didn’t do any, as we call it, dancing. In other words, trying to dodge some bullets, what have you. And then last year, pretty good year to say the least. And now we’re in a new year here, and if we look at the pricing. In very simplistic way here, you had seven stocks. It’s called the magnificent seven, which is the big gorillas, the Googles and the Microsofts, Apples, et cetera, et cetera that pretty much carried the market last year. They contributed seven stocks, contributed almost two thirds the return last year.
We’re thinking that the other 493 stocks that are in the S&P 500 are probably going to do okay this year as well. Subsequently, hoping that people out there are diversified. They don’t have all their eggs in those seven stocks basket, but they’re diversified. And we think that this year could have a decent year. We’ll be monitoring things closely, as always. I mean, I tell clients we got the guardrails up. The guardrails like going over a bridge, protecting you from catastrophe. We have the guardrails up. We’re not going to let anything dramatic happen, and we’re going to try to capture as much of the upside as we can. Volatility we thinks going to be increased this year. It’s not going to be a straight line up, but overall, we think it could be a really nice year.
Gary Determan:
Very good. Always great to have you in.
David Nelson:
Thanks Gary. Appreciate it. Always love coming in.
Gary Determan:
Take care of yourself.
David Nelson:
Thank you.
Announcer:
Financial Focus is a production of NelsonCorp Wealth Management in Clinton and Davenport. The opinions voiced in the show show are for general information only and are not intended to provide specific advice or recommendations for any individual. Any indices mentioned are unmanaged and cannot be invested into directly. Registered representative securities offered through Cambridge Investment Research Incorporated, a broker dealer member FINRA, SIPC. Investment advisor, representative Cambridge Investment Research Advisors Incorporated, a registered investment advisor. Cambridge and NelsonCorp Wealth Management are not affiliated. Cambridge does not offer tax advice. For more information, visit our website at www.nelsoncorp.com.