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:
First Wednesday of the month. So we get to catch up with David Nelson in studio, and of course, naturally we were talking a little hoops before we went on the air.

David Nelson:
Yeah, sure, sure. Of course.

Gary Determan:
Back third year?

David Nelson:
Third year back, yes, exactly.

Gary Determan:
Then of course, your nephew, at South Dakota State now. You say they’ve got him out doing some scouting.

David Nelson:
He’s on the road. Yeah, I think he likes recruiting, I think, maybe I’m a little biased, but I think he’s a good recruiter. He’s been able to assemble a team, junior college and on a national basis, have two titles. He’s obviously doing something right as far as getting the right people in. So yeah, he’s been on the road. He was out in Iowa recruiting at a big tournament. I don’t know where exactly that was, and then he was targeting another tournament that same weekend in the Chicago area. He came out for that.

David Nelson:
I know a lot of this because my daughter that lives around Chicago, he was communicating with her and she passed the word on and so had a good good a couple of days there. Then the following weekend the head coach came down, they flew down and they spent the weekend as well. So some really good candidates, again. They’re D1, they’ve got a good program. But at the end of the day, as my daughter was telling me from her discussions, as far as with them, a lot of these guys, they’re from Chicago and that’s where they’re comfortable and they would prefer to stay in Chicago land versus, where is South Dakota anyways? That’s clearly what you’ve got to be fighting as far as what do you do up there, and it’s really, really cold, I understand. So anyway, they’ve got some roadblocks there, but he’s been able overcome the stuff in the past and assemble a good team.

David Nelson:
So they said their main targets are Wisconsin and in Iowa, that’s where they’re picking up through the years, as far as the most talent that is open minded to coming out there and playing basketball. So, yeah, it was really cool. Again, I love hearing this type of stuff and the chatter and what they go through. I’m just this hack out here. Seriously, and I’m not saying that in a joking way. I’m as good probably as most of the coaches in this area, but yet a hack compared to this level, as far as what these people see, what I don’t see as far as an a game, and it’s cool. It’s exciting. The conversations are for me enjoyable, just to hear, as far as what they look for.

Gary Determan:
What a career move for him. Doing great at Kirkwood Community College, really seemed to enjoy it there, but to get the opportunity to be an assistant on D1 …

David Nelson:
Yup.

Gary Determan:
Is, I would imagine he would love to be a head coach once again.

David Nelson:
I think so. I’m guessing this is the stepping stone. After the first national championship, again, this is a community college championship, he had offers there. The offers there, one, I believe, was a D1 assistant coach job, but at that point in time he just wasn’t comfortable. So after he got the second one, I thought people are going to be knocking on the door and seeing if he will entertain the opportunity, as far as to go somewhere else. He did and he was surprised because they really like Cedar Rapids, he and his wife both, and she was able to keep her job, which is really amazing, as far as she’s going to work from … With technology today, she doesn’t have to be on site. So I don’t know how often she has to go in, but anyway, from the Dakotas down to Cedar Rapids, so that’s great.

David Nelson:
He’s digging it so far. I’m guessing the budget for recruiting is a little different, too. Before, we’ll hand you 10 bucks and you figure it out from there. So, I’m thrilled. He’s such a good kid. I say kid, he’s not quite 40 yet, but he was so disciplined and he knows what, again, it takes to have some of these people that have good talent but not great talent and how do you mold those individuals into playing at this level. So, my daughter in Chicago, her husband coaches at a big Catholic school in there, and they have two players.

David Nelson:
One has four offers already, as far as D1, and then another player that we thought was okay but not great. We watched him on two different occasions. Actually, Brian’s interested in him. He’s a point guard and they’re lacking as far as that area. So, I thought that was interesting. So they’re thrilled because they don’t have any children or anything, and this high school basketball team, literally, it’s almost like their kids, the way they talk about them. So it’s really, really cool and they’re thrilled, as far as the opportunity, as far as for some of these kids coming out of really tough communities and what have you and going to be able to make it, hopefully as far as playing at a D1 level.

Gary Determan:
Again, we’re talking about Brian Peterson and, of course, pay level much better as a division one coach, as opposed to a community college.

David Nelson:
Sure.

Gary Determan:
So has he sought his uncle for any advice?

David Nelson:
Exactly. We’re always on him about that, and the good news is his wife is an accountant and so she’s very frugal, so it’s all good there I think. They’re, again, a solid family and plan ahead, as far as the finances could change pretty quickly, positively or negatively. So while things are rolling, take advantage of it.

Gary Determan:
You were talking about that she is able to keep her job even though they’re moving to the Dakotas. I know with NelsonCorp Wealth Management, you got your fingers all over the place.

David Nelson:
Sure. I just literally spoke to another client. So we’ve got a client over in Indianapolis that we were visiting with recently that they came up here. We’ve got a client from Atlanta that’s going to be driving through here before too, too long.

David Nelson:
We’ve got to get on a plane and we’re heading out to Durango, Colorado before too long. We’ve got a, what’s the name of the town? It’s Arizona. It’s right next to Phoenix. We’ll be heading there, southern California, and probably home. So yeah, we’re on the road a lot. That’s about 40 different states, I think, that we have clients in now. Great relationships, great people. We get the question all the time, how in the world did that happen? As far as some of these other people. I said, usually they start with somebody that we work with, is communicating with a family member or a good friend that says they have some questions. They’re not comfortable as far as with their person, and it builds from there. So great relationships, great opportunities, as far as for us and it makes things exciting.

David Nelson:
So you’re on the road, I’m on the road a little more than I’d like, but it’s fun and exciting at times, as far as to get out and see different things. Many times, scary, as far as this last trip that I went to. I was in Tennessee, then onto the Carolinas, then back to Tennessee, then Indianapolis, then Houston, then home, and that was under a week. So the way I do that is a lot of these people meet me at the airport. So we just meet at the airport, we talk shop maybe for a couple of hours, I get on another plane and head somewhere else. So it works out okay. They don’t seem to object too much. They’re probably whining a little more than I think when fighting the traffic around some of these big airports, what have you, but the end of the day, it works. So, we’re making it work.

Gary Determan:
You were talking about meeting with clients on the road, in the airport. I know you’re talking about some really private stuff, so how do you make something like that work, Dave?

David Nelson:
So it depends on the client, we pretty much leave it up to them, as far as where they would like to visit. Oftentimes, I say in the airport, it’s typically a restaurant next to the airport, somewhere close by. We’ll typically leave the airport area and drive five minutes, whatever, we’ll have our chat, talk shop, as far as for a couple of hours and then get back on. Many times, and again, a lot of this has to do with technology, people say, well, we could Skype or whatever, do that FaceTime type stuff, and I said, it’s just not the same.

David Nelson:
So we’re very much into the face to face. Again, in particular, I guess the people that I’m referencing now, which the average age is probably 65, 70 years old, as far as most of these people that I’m chatting with. So, yeah, it’s a challenge. Again, if you go into restaurant and you’re getting into a corner area, you’re making sure that nothing falls on the floor, as far as leaving any personal information type stuff. But, it’s worked really well, and again, most of the people, as far as when we initially meet, we’ve got one, I think in about two weeks we’re going to be chatting with on the phone. Birmingham, Alabama. I have nobody in Birmingham, Alabama. So this will be a different experience. But it’s a friend from Atlanta, that this is a sister of his and, long story short, bottom line, we’re going to link up there.

David Nelson:
So, for me it works and again, I jokingly said, I think for the clients it does too. But it does because we set the expectation up front, and the rule of thumb is typically every other year I come your way. Every other year you come my way. So like the Atlanta folks, they’re big into motor homing and going various places, what have you. So they’re heading to Michigan and then they’re going to make their way through here and they’re heading out to Utah. So they’re going to swing in and probably spend a day. Last time they were through here, we went down to the ballpark, we went up to the theater, they stayed two nights, as far as parked up by the dike. They had a ball. It was absolutely fantastic.

David Nelson:
Retired. This guy was a big operator, as far as an attorney in a massive law firm. I think it’s the second largest law firm, as far as in the world, and it’s out of Atlanta. He was one of the key people. So it was just really, really cool as far, as to spend some time with the two of them. A couple of meals and a couple of shows and ballgame and what have you and just cool stuff.

Gary Determan:
You point out he was a former big time attorney, but I would imagine you run into people from all kinds of walks of life.

David Nelson:
We do, and the good thing is that we’ve got a good balance of personnel, as far as in the office. One of the things that comes up on a very regular basis is a lot of our time is spent on consulting people on a social security, how to take it, when to take it, et cetera, et cetera.

David Nelson:
Because there’s literally hundreds of different combinations, and people think it’s, well, I draw it at 62, or I draw it at 60. No, no, no, no. There’s so many different things, and if you’re married, it just even gets more complicated. So we want to get this right. Well, what’s my point with this is when people bring it up, I’m as bad as they are. I glaze over my eyes and I say, I don’t get this either. So the good news is that we have some really, really smart people that specialize in that.

David Nelson:
Back in the olden days, I was pretty much a one man show, as far as in the very early days. Gene Krueger had his own practice, I had mine, and we were pretty much separate. We’re in the same building, but we were pretty much separate. Today with, we’re I think 23 heads, we’re interviewing somebody at 10 o’clock today, as far as on the accounting side. So with 23 people we have a lot of different skillsets and we’ve hired four different skillsets for that very purpose. So, again, if somebody has a question on that, we bring somebody in that knows the rules.

David Nelson:
There was a situation recently we had a client, it was to me, interesting. Probably most people out there won’t find this as interesting, but it was a decision on, we’ve got a husband that’s really in bad shape, he has Lou Gehrig’s disease and they live out south of Iowa City. The wife we’re visiting with and we’re talking about, again, what happens as far as when he passes away, they’ve got OK assets but not terrific assets. My understanding was when he passed away, she elevated to his, so she would get his full benefit, as far as that he was currently receiving.

David Nelson:
So James is there and he starts explaining this. He says to Mary that we were talking to, said Mary, you won’t get his. You will get his plus a little additional because he drew at 62, so you’ll get his full benefit as if he waited age 66. I learned something new. I did not know that. So again, it comes back to a situation of competence and again having a good team. I know there’s companies out there that believe there can be one man shows. I’m just not a believer in that. Because I’ve done that and I realize it’s so complex. Tax law, estate planning, investing, retirement income planning, all this stuff. I just don’t think there’s a human being that’s qualified to help people make all of those decisions. So again, we’ve got a lot of good people, as far as around to help in those tough decisions.

Gary Determan:
Yeah, you would think so. You coach basketball, you’ve got a point guard, you got the forward, you got the center.

David Nelson:
Good analogy.

Gary Determan:
They work together to mesh as a team.

David Nelson:
Exactly. One of the nice things is these days is that we’ve got a lot of it in house, as far as the accounting side, as far as in house. Doesn’t mean people have to work with that side, but we’ve got that skillset as far as there. We’ve got an attorney that comes to our office on a regular basis. That too can come to the table as far as to be able to help explain this to people. So the pieces are there and again, the average person is still to this day, whether they have a big amount of money or a modest amount of money, is still pretty intimidated, as far as in this whole space.

David Nelson:
So we really try to help people understand the terminology. We try to help people understand the basics, as far as of all these various areas. That doesn’t happen in 10 minutes. That takes time and that’s the repetition, as far as the importance of the ongoing reviews, as far as with people. When you put all that together, people tend to sleep better at night. My professor for the last coursework that I did at the John Kinney School of Government at Harvard, he made the comment to me, he says, David, never forget. An extra quarter percent interest doesn’t mean anything if the people can’t sleep at night. So again, prior to that, why he beat me over the head with this, is part of my discussion, as far as with him in the early stages of this class, centered around, as I would explain to people 25 years ago, my job is to make you money.

David Nelson:
You’re going to have to deal with the volatility. That’s not my problem. That’s your problem, and stupid me, as far as to believe that and I believed that back then, and then he’s beating me over the head as far as saying an extra quarter percent means nothing, if people are fretting over this stuff, they can’t sleep. You got to help them sleep at night. So what we try to do with the team approach is to educate, get them to a point where they understand they have somebody grabbing the steering wheel, as far as on the big ship out in the rough ocean. Somebody’s there as far as manning the ship and so they can go do what they want to do. Again, fun stuff, grandkids, you name it. Go enjoy yourself and we’ll take care of this.

Gary Determan:
Visiting with Dave Nelson of NelsonCorp, and of course now NelsonCorp Field.

Gary Determan:
I know you had a thing down at the ballpark. How did that go?

David Nelson:
That was fantastic. It was a great night. Again, for those who don’t know, the Lumber Kings played for a number of years at Ashford Field, and Ashford several years back dropped the contract, as far as with them and nobody in the area was stepping in, as far as to grab hold of that. I was hoping for some of the big employers. I think always as a business owner and I want that to succeed. I get tired of people, I grabbed the microphone for those that were there, they’ll know what I’m talking about. So we did a ribbon cutting as far as the chamber. I got on my soapbox for a little bit and I really feel that I’m right and I really feel that we as a community can do better.

David Nelson:
Basically, the idea was I get tired of hearing people complain, there’s nothing to do. There’s a lot of stuff to do if you look around. The key is we have to put a positive vibe in our brain and we have to go out and pursue some of this stuff. Maybe you too can not only participate but could lead. So this came about with just that in mind, is that we need these options available in the community, and this community has been very good to David Nelson, very good to me, and very good to many of the people as far as in our business. So we started chatting, literally in ’14 about this, because we knew that this was coming, that Ashford wasn’t going to be renewing down the road here.

David Nelson:
So just kicked it aside for a year or two and hoping that Ted might be able to land something. Then three years ago we started having more serious conversations. I’m throwing names to them. I’m telling him about some possibilities of some organizations potentially. No, no, no, no, no. So then it got to a point where we said we need this in town, and again, not that this check, I want to make this clear. That place will survive without NelsonCorp. This is not, we’re coming in to save the day. I want to make that crystal clear, but hopefully this is going to help them be more successful because now they have more resources to do what they need to do. We had numerous people think we bought this stadium. Literally, probably 50 plus people I’ve spoken to thought we bought the joint. We didn’t buy the joint.

David Nelson:
Basically all we did is we gave them money to be able to throw our name up there. It’s a form of advertising per se, and more importantly, it’s a commitment as far as to the community to say we’re in and we hope everybody else’s in. So like before, and I think I brought it up here before and I know I’ve certainly done this, as far as in various print media things that we’ve done, is challenge other companies and other people that are in our business. Our business, most people that are any account at all, are doing okay these days. If you’re doing okay, maybe you can do more for the community and step in and make a difference. So this is a three year commitment that we’ve made to them. Again, will it go further than that? I’ve had so many people say, oh, you think you’ll go after?

David Nelson:
I said, if there’s nobody else standing in line, probably without question, we’re going to step in because this is important to us in this community, not to NelsonCorp, but to the community. So we want to keep that thing there. You covered it for years, as far as it’s great to look down there and see all kinds of people enjoying themselves watching the game.

David Nelson:
As the Channel four news was up here and covering this, he kept emphasizing that it’s just a fun atmosphere to come to this ballpark and I think he’s right. So, yeah, we want to keep it. We’re excited to be participating. We hope we’re making a difference. We think we are. At the end of the day, again, we want people to get out and support it. We have no vested interest when we say stuff like that. Again, I think people sometimes, oh yeah, they want them down there so they can make more. No, we wrote a check. We don’t get any income. We have no say in what goes on down there. We have no vested interest financially. We’re just hoping that it makes a difference as far as the community.

Gary Determan:
So we’re not going to see you in the dugout?

David Nelson:
I would love to get the dugout and take a couple of cuts. Well, they hand me a ball to throw a pitch, and I played baseball and I was pretty good. Without bragging, not great, but pretty good and played catcher for awhile. Then I went to shortstop, second base is where I rotated those two spots then. So I got the ball in my hand and people, were you nervous? Not at all. I’m not nervous as far as in that type of environment, but it was high and outside. It wasn’t over the plate. So I was really disappointed with that. I had my granddaughter out. I wanted her to throw the ball, but she didn’t want to. So, I chucked it in there and the guy had to step up and get it.

David Nelson:
He couldn’t stay in his crouch, but it was fun.

Gary Determan:
July. What can we look forward to in July?

David Nelson:
July, typically as far as markets, August, for whatever it’s worth, performance is the worst month as far as markets. So as far as we’ll be talking, again, taxes are always at the forefront. We’re going to be doing estate planning gathering here before too long. So we’ll be talking a little estate planning as well, but again, I’ll just emphasize as far as to folks out there, it’s a complicated world. Seek out help. It’s worth it. If you get the right people, it won’t cost you a dime because those individuals will make you more than what it costs you as far as to hire them. They will save you more, as far as in taxes, than you paid. So at the end of the day, very helpful. Again, July, August, typically going to be fairly rough months, so hold on a little bit and don’t make any rash, dumb decisions and again, seek out some help.

Gary Determan:
Great to see you. Have a good holiday.

David Nelson:
Thank you. You too, Gary. Appreciate it.

Announcer:
Financial Focus is a production of NelsonCorp Wealth Management in Clinton and Davenport. 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, Inc, 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.

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