by David Chapman
Staff Writer
Local investment firm NestEggs growing, expanding
On a daily basis, Rob Slimmon sees just what a down economy can do to his client’s psyche.
As one of the principals of local NestEggs Retirement Plan Services, he knows the negativity — through both the media, overall market dives and subsequent down statements — can lead a person to make emotional decisions regarding their long-term investments.
Ultimately, he said, dipping into investment money early, selling off investments or underinvesting in retirement as a reaction to a bad spurt is counterproductive in the long term — though he understands the present predicament.
“This is clearly the most challenging time in my 40 years (in the business),” said Slimmon. “And I’ve been through a lot of hard recessions.”
Slimmon, with his wife, Connie, opened NestEggs in 2000 after moving to Jacksonville in 1997. The company is an SEC regulated investment advisor group and offers the design, implementation, record-keeping and investment management of retirement plans for small- and medium-sized businesses, with a niche in entrepreneurial companies. The organization is based on fees, not commissions, which fundamentally establishes that the client comes first.
It’s a niche, he said, because staff is charged with finding the delicate balance between what an owner wants to accomplish with its retirement plans and what the client’s employees receive and deserve.
“It is tough to find that balance because there are so many factors involved,” said Slimmon.
It isn’t the Slimmons’ first foray into investment services — not even close.
The two each have more than 35 years in the business and owned one of the largest investment advisor firms in the Northeast through the 1980s before selling it to the then-Bank of Boston.
After some careful city research (“We chose Jacksonville deliberately,” he said) and a little time off, the two moved to Jacksonville and later opened NestEggs, and ended up attracting many of the Northeastern certified public accountant firms as clients following their move and new business venture.
Today, NestEggs has around 100 clients, with more than two-thirds coming from Northeast Florida companies.
NestEggs itself has grown, as its staff of nine recently moved from its longtime location in San Marco to a more spacious and centralized location in the Sutton Park area off Hodges Boulevard.
The growth “has taken five years off my life” said Slimmon, as it’s been slow yet steady with the loss of clients — some went out of business, others discontinued service — offset by the addition of new clients that’s added to its base.
The loss of clients is an industrywide action, as investment advisors, as the messengers of bad news due to short-term losses, are the ones who deal with the often emotional reactions that come with negative results.
Kevin Cheezum, NestEggs senior plan administrator, said during bad periods, many clients look upon their retirement as a potential safety net and try to access the funds. By doing so, tax implications, early withdrawal fees and overall funds loss can be “catastrophic” to long-term plans.
The industry in general tends to follow a trend, said Slimmon, with the tried and true “buy low, sell high” mantra going by the wayside when emotions become involved.
“It’s interesting,” said Slimmon, referring to the investment industry. “When markets are up, people expect relative rates of return ... in down markets, they want absolute returns.”
Keeping the long-term goal of a healthy plan in focus, Slimmon even has a recommendation: don’t even look at your statements.
“It will take care of itself over time,” he said.
Investment opportunities abound in a down economy, he added, and said people need — and must — save more, as a generational disparity of spending in the present instead of saving for the future is troublesome.
Cheezum agreed that opportunities are abundant and believes people could look back and see it as such.
“I believe people will look back (to now) and say ‘That was a great time to invest,’” he said.
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