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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 representatives 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: David Nelson in studio, and just dropping some big news on me. Naturally just before we go on the air. David Nelson again, NelsonCorp Wealth Management, he’s got some pretty good nephews. Of course we’ve talked about the one who is a PGA pro out in Des Moines. Of course, Brian Peterson, we’ve talked about him, former River King standout. Good news, tell us about it.
David Nelson: Yeah, great news, and I don’t know, I guess maybe I heard this about two weeks ago. And I assume by now it’s probably out.
Gary Determan: Let’s hope so.
David Nelson: Let’s hope. But, Eddy North, he has a job at South Dakota State and going to be an assistant coach up there, so he’s pretty pumped up and excited. It basically came about … I’ve been talking to him about [Cadian 00:01:36] as far as from Prince of Peace, as far as the possibilities of him coming out and spending some time as far as with the team, and running with them and seeing what he can do. So yeah, we’re trying to work out details, and then he never responded on one of my emails for several days. I thought what the heck is going on? I mean-
Gary Determan: Because yeah, that doesn’t sound like Brian.
David Nelson: That doesn’t sound like Brian, and that’s not him. So anyway, so he responded, and he said hey, been really busy trying to finalize some of the details as far as the new job, so. So yeah, you know. Again, it’s exciting to see. It’s not exciting just because it’s a relative, I mean I’m excited for my sister and brother in law. I’m excited for Brian and his sister. But at the end of the day I’m excited for the area. It’s great to see some local talent as far as making it to a different level. The Harlem Globe Trotters, we’ve got Devan Douglas that’s playing, we’ve got David playing in the National Football League, it’s just great to see. And so I’m really excited for them. I think this is a stepping stone, as far as for him, I think the upside is pretty tremendous.
I think I mentioned to you that I bought his DVD. He’s got DVDs out now as far as his offensive set, and just kind of philosophy type stuff, so. Did I get some value out of that? I really did, and again, heck of a difference in age here, me versus him, but at the end of the day, and I’ve been around basketball a long time, but it was great getting his viewpoint, because his viewpoint is a heck of a lot different than my viewpoint. You know mine is the Ericksen Center viewpoint, and his is you know, out at Hilton Coliseum out at Ames, you know, working with some of the finest coaches as far as in the country. So it’s really great, and I’m excited for him, and again, I think he’ll do a great job, and I hope it’s a short stint there, and he’s onto bigger things, as far as head coaching jobs somewhere as well.
Gary Determan: Well he’s done a tremendous job, I mean, two national championships as a head coach. What he did as a player at Iowa State. South Dakota State is a Division I, it’s a very good program in that conference, I think they made the NCAA tournament.
David Nelson: They have, exactly. A couple times, I got the message, and then my new son in law, my daughter just recently got married, they were back for a few days, and he gets on and Googles it. I go from memory, and all the youngsters they love the machine right, to do the homework, and they’re not guessing, they’re working, so. But anyway, yeah, a couple times in the last several years, so it’s terrific, and you know, again, around here, you don’t really hear much of it. Western Illinois is the closest as far as the teams, so my wife brought up immediately as far as uh, you know, geez, Karen and Mike aren’t going to be able to go and watch, you know, they really enjoy traveling around and watch him coach, what have you, but that’s not going to happen as far as with Colorado, there’s a couple there. I mean, it’s the Dakotas. But Western Illinois is part of that, so Western Illinois, I assure you they’ll be there watching him. As far as when they come here.
Gary Determan: Well, I know you know Bob Walker, and his son [Casey 00:04:43] played, I think it was either South or North Dakota State. So he was out in that area there, but Bob used to make the trip all [crosstalk 00:04:52] the time.
David Nelson: Really, is that right?
Gary Determan: Yes.
David Nelson: Sure, sure. [crosstalk 00:04:54] I’m sure it’s a-
Gary Determan: You get a lot of traveling.
David Nelson: I don’t know what the distance is, but I suspect we’re double digits, about ten hours, twelve hours, fourteen hours, something like that.
Gary Determan: Well great news.
David Nelson: Yeah, it really is, isn’t it. Again, it’s deserving. When I use the term junkie in the context of sports, that’s for those that aren’t into sports, that’s usually a really good thing. They really enjoy it, and they bury myself in it, what have you, and he’s certainly one of those, and he’s done a great job. He and his bride will be heading north, I don’t know when exactly, I didn’t get that from him. I’ve got to communicate and check with him, but really excited for him.
Gary Determan: I’m going to transition this to business, and see if you can get this or not.
David Nelson: All right, go for it.
Gary Determan: Ryan Peterson was a good, all around athlete at Clinton High School. Not just basketball, but baseball, track and field, golf as well. And of course, NelsonCorp Wealth Management, a good, all around business, but you guys do have your specialties as Brian has found in basketball.
David Nelson: Yeah, and it’s crucial to that. Yeah, that was outstanding. Great analogy. You know, no different than across the street here, Medical Associates, we’ve got specialists as far as that are there. And our office within the walls, accounting, we’ve got legal, we’ve got the financial issues, we’ve got individuals that get sole security better than probably most of the people as far as that sole security administration. So having all of that has really, really been crucial as far as to helping people over the last, probably realistically, fifteen, twenty years. Most of that’s been at play. Prior to that it was just pretty much, we were just doing what we could do. Very similar to a lot of people out there, kind of a one man show type approach, and that doesn’t cut it in today’s complicated world. One of the slides, and I’ll visit on that as far as we’ve got a couple workshops that are coming up here next week. And I think we’ve got room as far as for … one’s at St. Ambrose and the other one is going to be in town as far as up at Rastrelli’s.
But one of the topics that we’re going to be discussing is, you hear the term all the time, the only thing that’s consistent is death and taxes. And so, one of the slides that I have is death is consistent, but taxes aren’t. Taxes have changed a lot. And so it’s really crucial as far as to be current, as far as in that area. And again, subsequently, why we’ve basically acquired two different CPA practices, brought it in house, and again, making it available as far as to clients, and anyone else for that matter, but again, it’s really important as far as to pull all this together, and being all around good in all these areas is really crucial today.
Gary Determan: Before we do take a break for the weather, want to thank you again for being a part of our plus fifty living, for you have been at every one, all twenty-nine.
David Nelson: Yes, exactly. And enjoying it, and again, I myself I think, have missed at least one. I was somewhere, I think I was on the road or I was ill, I don’t remember, but I just enjoy going out and visiting with people, and again, there’s a lot of people out there that are intimidated as far as about the discussion of our worlds, you know, money. They feel inferior as far as from the standpoint from not understanding some of the terms, and the jargon and whatever. So it’s a great challenge as far as to try to simplify, and it’s a great challenge as far as to try to again, be approachable, as far as for people to come up and ask a question that they may think is kind of silly, but rarely do we get that. I said there’s no dumb questions. There can be dumb answers, but not dumb questions. So we’re happy to do that and it’s a great way to do it. Again, we don’t do a lot, any more, for the general public. We’ve got clients that pay us, and pay us well. So our focus is there. But occasionally we’ll run some that are open to the public, and I remember the days, I don’t remember the times, so if individuals are interested, I’ll kind of yap a little bit about what we’re going through, as far as in the second half here.
Gary Determan: All right, very good, let’s check our weather now, brought to you by the Clinton Midas 00:09:03.
Eric Sorensen: Good morning everybody. We are going to see a couple of isolated showers and thunderstorms for today, but nothing terribly heavy. That’s really great news. It’s going to be a milder day as well, highs up in the middle sixties. For tonight down to fifty, only small chances for showers and thunderstorms tonight and into tomorrow. Tomorrow’s high is sixty, but dry skies and warmer temperatures up near seventy for the weekend.
Our flood coverage continues right now at WQAD.com. I’m Storm Track 8 meteorologist Eric Sorensen.
Skies remain overcast, temperature constant, 46 degrees with north winds under ten. Our weather brought to you by the Clinton Midas.
Announcer: For 42 years, the Clinton Midas has treated you and your vehicle fairly. Now is the time to see the Clinton Midas to have that air conditioning checked before you head out onto those summer road trips. Also, the Clinton Midas features an outstanding selection of tires, and of course, brake service is a specialty at Midas. See them also from service to major repairs. You can count on them to tell you what needs fixing now and what stuff can wait. The Clinton Midas, 1412 Lincoln Way serving you with brakes, tires, and more, for 42 years.
Gary Determan: First Wednesday of the month, in fact, May Day, so we continue to the bottom of the hour with David Nelson, and you say you’ve got some great opportunities for our listeners.
David Nelson: Yeah, again, throughout the year we do a lot of educational stuff, because this isn’t something people can hear once and get it. And not that we want clients to do our job, that isn’t what we’re attempting to do. What we’re attempting to do is to get them to understand the logic and why they should proactively be doing certain things. And so, most of them, as I mentioned just a couple of minutes ago, are geared strictly for clients. So, as an example, we’re down at St. Ambrose four times a year, four times a year we’re discussing something relating to money. Estate planning, taxes, investments, sole security, Medicare. Those are pretty much as a general thumb closed off, those are St. Ambrose people and only St. Ambrose people. We do some down at 3M. Those are only for 3M employees. People can’t wander in as far as to those. We’ve got one coming up as far as up at Rastrelli’s. I think that one is on either the seventh or the eighth, and folks, I apologize, I don’t have it with me, but you can call the office and ask.
So we’re at Ambrose on the seventh, which, I believe it’s the seventh there, and then I think we’re hear on the eighth, as far as at Rastrelli’s. And if individuals want to come to these two, this will be open, as far as to the public. Seating is limited, I know at Rastrelli’s we’re already at triple digits, as far as headcount. So I don’t know how much additional room there is going to be as far as there. The one down at St. Ambrose, it’s a smaller room. I think capacity is give or take thirty people, and we’re probably at twenty, twenty five ish right now. So there might be a couple openings. If not, we apologize, I’ll just say that up front, again it is what it is.
But what we’re going to be discussing Gary, there, is going to be heavy tax related issues. Again, not boring people with details they don’t care about, but trying to draw comparisons to seventeen, 2017, 2018. Because there was a lot of confusion about this. We had numerous people that said you know, in the past, I got a refund, now I don’t. And you know, what happened? My taxes went up. And so what we try to do is, again, peeling back the onion as far as to get to the part that we want. What are the facts? The facts are that in eighteen, during the year, if you’re working, your tax, the amount of money taken out of your check reduced in the first quarter. And so because of that, that now yields at the end of the year a smaller refund for most individuals. Net, which is what people want to know, hey did I pay more tax or did I pay less tax? Ninety percent of the people out there, probably even ninety five percent of the people out there paid less tax. So that’s reality.
Now, it didn’t feel like that maybe to some people, because again, it came to you as far as in pay checks, 26 times for the year, or whatever, or how often you get paid. But at the end of the day, most individuals did see a reduction as far as in their tax liability, give or take two to three percent. Again, we’re going to walk through a lot of that type of stuff as far as in the workshop, and share with people ideas and concepts and things, not looking backwards again, but looking forward. What should I be doing today to make tomorrow better, as far as for my situation, my family’s situation, et cetera, et cetera. And there are many things that individuals can do.
Gary Determan: Very interesting, now, David, when you do a local workshop like this, is it primarily you, or do you have other people on staff that help out with this?
David Nelson: Good question. So, probably eighty percent of it will be me. Twenty percent of it on this particular one is going to be Andy. Andy is working with Deb Montgomery as far as in the accounting area. He has his MBA and his EA, Enrolled Agent, so he gets taxes inside out. I get concepts, and I get the proactive aspect of it. He’s the reactive, primarily as far as figuring out what people owe. What we’re focusing on as far as on the other side of the office, is what can we do today that will have a positive impact for you over the next ten years? And impact your bottom line in a very positive way as far as paying less tax, and hopefully having more money in your buckets versus in the IRS buckets.
Gary Determan: Now are these interactive, are the people who are sitting there primarily listening to you, or do they get an opportunity to maybe throw a question or two at you?
David Nelson: So I always tell people, don’t worry about asking a question that you might throw me off track, because I have no track. Okay, so, I’ll start with that. So these are off track all the time. Just bouncing around, and I think I’m good at reading people, and so what I attempt to do as we discuss something. Eh, that doesn’t seem like it sunk in. Individuals out there, I see a lot of question marks in their facial expressions, so we’ll go back to it, try to word it differently to maybe make it easier as far as to digest. But no, they’re always open as far as we want feedback from people, we don’t want it to be a lecture. But reality is, you get a lot of people in a room, most individuals are a little intimidated as far as to ask a question, because again, the perception is, I’m the only one thinking this, it’s probably a dumb question. And everybody else knows the answer to it. Where in reality, nobody in the room knows the answer to it.
Gary Determan: They’re waiting for somebody to ask that question.
David Nelson: Exactly, exactly. So yeah, and again, I’ve said in the office, we try to figure out, we’ll have various gatherings once a month where we talk about how many of these should we be doing, where do we want to do them, what are the topics, et cetera. And my response is always the same, if I could do these daily, I would do them daily. I love doing this, I love being able to communicate, have eight, ten, twenty people in a room where we talk about this stuff. I want people out there feeling more informed, more secure about their tomorrows, and again, we want them involved in the process. Most individuals, again, they just want to get to a certain level of understanding, and then they’re going to shut down pretty much and say, it’s your problem, to us. That’s fine. But we want them to understand the logic behind it.
And again, knowing as far as how markets have gone up and gone down, and again, most individuals out there, as we say, we don’t have a lot of people that walk in the door and ask us to help them that have an extra million sitting around that they don’t need. So whatever they have is really important to them. So the idea of this flippant type attitude that many individuals in our industry have, they should just put the money in and over time you’re going to be okay. Well over time you’re going to be okay may or may not happen. And can we impact that and make sure that we don’t wake up tomorrow and we have half the money there. And so that’s the type of stuff that what we try to educate people on why that’s important. The other part of it that’s really key is when you’re taking money out, so I’m now retired let’s say, and I’m taking a distribution of five percent per year. You’re taking five percent out and the market rolls over thirty or forty percent, which is average. That isn’t a big drop, that’s an average type drop, and it doesn’t recover instantly, and you’re taking that withdrawal. You’re finding a part time job somewhere. Not because you want to but because you need to.
And so that’s the concern that we have. That’s what keeps us awake at night. People say again, what’s the biggest concern that you have? To me it’s complacency. There’s so many people out there just assume that over time things are going to be okay. And I don’t want to be this negative Nelly, I don’t want to be, you know, always trying to find as far as the negative to focus on it, but the reality is, most individuals need the income from their piles of money that they have. They’re not big enough, and they need the income from that. And at twenty percent punch in the nose, a thirty percent punch in the nose with their account balance, again, which happens routinely, bottom line game over. They’re going back to work and we don’t want that for those individuals.
Gary Determan: Again, visiting with David Nelson, of NelsonCorp Wealth Management. Now, when you do something like this and as you pointed out, people sometimes are a little hesitant to ask a question. Is there a follow up, do you get phone calls sometimes the next day or next couple of days?
David Nelson: Terrific question there too, so generally speaking, ninety percent of the people in the room, we already work with. So they know they have a green light as far as to call us any time that they want. And more and more we’re getting emails, hey you touched on blah, blah, blah, blah, blah, you know, can you expand on that a little bit. And then that has to be done over the phone, because again, this isn’t the type of stuff, that you know, it could be six pages you know, of text as far as to try to get them the answer to, to many times what they’re asking. But for individuals that aren’t clients, it’s an opportunity as far as to hear it the first time, and then do we get phone calls as far as follow up from individuals like that? Almost every single time, somebody is going to follow up and say hey, I’d like to get together and maybe talk about this a little bit, or I had a question about this, can somebody explain this to me maybe a little differently? And that’s the goal.
Again, I know this sounds probably a little arrogant, but you’re not going to find many people that care more about the area, and put their money where their mouth is than we do. So, the goal is, I want everybody in our area to prosper, whether you work with us or not, I don’t care about that. I want people to prosper, I want this area to prosper. So we’re going to continue to offer this type of venue here to hopefully give people something to think about. We’re on TV now as far as on CBS which I think most people probably out there already know. So we’re on Tuesday, and we’re on three times on Tuesday. Three times on CBS, one time on Fox, where we’re talking about this type of stuff. We’re not doing it because we have nothing else to do. We’re doing it to try to, as best we can, get the word out to people, to be aware of potential pitfalls, and aware of opportunities that may exist out there.
And again, what we found is that these two meetings have been pretty good. It’s boring, you know, again, we write various things, and we have various publications that we put various articles in. We don’t get a lot of feedback as far as on that, and I think most people, again, they read through that, they don’t quite get it, oftentimes. Many of us learn from hearing, not from reading, and so what we have found, is that, again, this venue, and we’ve worked, and I’ve worked in particular, really, really hard over the last thirty eight years, of trying to take complex things and trying to make them as simple as we possibly can. And unfortunately, we’re in a very complicated world, it’s not black and white, it’s always gray, and so with it being gray, we have to make sure that, again, we help people through this process, not one time, and they get it, but often many times, you know, three, four, five, six, times before it really starts sinking in.
And we’re fine with that, again, that’s why we continue to do this. I’m not doing it every week like I used to on this, but John, James, and Nate are doing the other three. But the goal is, from all of us, is to have some topic revolving around financial issues that is going to be important to people at certain parts of their life, and we want to make sure that we’re there as far as to give good independent advice. We’re not paid, we’re not employee of some big company. We’re independent individuals that are fiduciaries out trying to help people make better decisions.
Gary Determan: We’ve got about a minute left in the program, and again, always appreciate you do coming in on the first Wednesday of each month for this live program. Your website, talk a little bit about that. We very seldom talk about the website, I don’t know how often you go to it, but that is a great tool for people to find out more information about NelsonCorp.
David Nelson: It is, and it’s getting better. We basically trashed our old one, I think it was about two months ago, and we have our brand new one. There’s still pieces missing, I think a lot of the bio stuff isn’t currently there. But we’re getting really good, good feedback, as far as not even just local, but on a national basis. We’ve had a couple people way out of the area as far as that contacted us want to communicate with us. So it’s really, really good from that regard. We have clients roughly in forty states right now that we work with, so it’s not unusual to have someone out of the area. But what’s really interesting is again, the feedback from that. So yes, I’ve been on it, I think twice, I mean ever, in my life. But I hear from the youngsters that are on there as far as a fair amount that it needed to be redone, we redid it, and it’s constantly, we’re adding stuff to it as far as to get it fully implemented but, yeah, it’s today’s world. And again, I don’t deal in that world and I don’t plan on dealing in that world. But many people do, and so, so yeah, we want to have all the bases touched as best we possibly can.
Gary Determan: Again, thanks so much for coming in, and again thank you for sharing that news about your nephew, Brian Peterson, that is great.
David Nelson: Awesome, you betcha. I’m excited for him as well. Thank you, Gary.
Gary Determan: Have a good day.
Announcer: Financial Focus is a production of NelsonCorp Wealth Management in Clinton and Davidnport. 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 representatives 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.nelsoncore.com.
Gary Determan: Once again our thanks to David Nelson for stopping by. Financial Focus, heard every Wednesday morning at 9:05. Our next live and expanded program will be coming up on Wednesday, June 5th.
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