Midlands Business Journal • APRIL 30, 2021 •
Investing for Retirement A section prepared by the staff of the Midlands Business Journal
April 30, 2021
How is your nest egg positioned for the next big volatile event? by Michelle Leach
How investment portfolios aligned with personal goals, and were balanced to spread risk, represented those considerations that played a role in the effect the pandemic had on individual investors. These and other factors will dictate the effect the next “big one” (public health turmoil, geopolitical crisis, etc.) has on investors’ financial wellness. Creative Planning Partner and Managing Director Ryan Swartz said there has been a Swartz spike in bond yields, with the 10-year treasury nearly doubling since January. “After years of big tech and growth stock outperformance, we have seen a rotation from growth stocks to value stocks, and a rotation from large companies to small companies,” he said. “We also saw a surge in foreign stocks during the early part of the year, which has pulled back mildly due to the dollar’s regained strength.” Despite larger investment themes, the “buzz” remains on speculative and behavioral finance topics; for instance, GameStop and cryptocurrencies. “Overall, it has been an investment environment of strong returns for globally diversified investors,” Swartz said. A year ago, global uncertainty provided a catalyst for volatility. “Some of the most unnerving times historically have been the best times to invest,” he said. “This proved to be the case once again.” Opportunities are presented to refinance to a lower, fixed rate on outstanding liabilities or variable loans. “From an investment perspective, the low rates also favor the long term expected returns of diversified stocks over bonds,” Swartz said. “While it is important to have enough assets set aside that are not invested in the stock market to meet short term and intermediate term income needs, remaining invested in a globally diverse portfolio of stocks will allow investors to take advantage of asset classes that are benefiting from the reopening performance, and inflation.” These include exposure to both mid- and small-company stocks, along with international developed and emerging markets stocks. William Diederich of Thrivent Midwest Heartland Region recalled how the market was at all-time highs a year ago.
William Diederich, financial professional, Midwest Heartland region at Thrivent. “People were wondering and waiting for a rebalanced, it is possible that you are overweight recession to occur,” the financial professional in certain sectors, so much so that you may have said. “Most investors were hesitant to invest large shifted your risk exposure. It is also a great opsums and fearful of a pull back. The markets have portunity to re-evaluate your retirement income recovered and we are at all-time highs again, but distribution strategy. This could be a great time the hesitation and fear is not as prevalent.” to look at ‘harvesting’ some gains.” There may be no time like the present, When asked about notable changes related according to Diederich, to rebalance portfolios. to the investment environment in the past six “We have seen large runs from specific months, Jim Mikus, president and CEO of sectors of the market,” he said. “If you have not Ameritas Investment Advisors, reiterated those
qualities that are “applicable in all economic environments,” and to all retail investors, “smart” or not. “Investors … should be engaging with an investment professional to develop a long-term investment plan that takes into account the return objectives and amount of risk the client is willing to take,” Mikus said. “Also, make sure you periodically meet with your investment professional and discuss any changes in circumstances that may require adjustments to Mikus the plan.” Ideally, investors will take these steps earlier in life rather than later. “So, it is easier to make adjustments if need be,” he said. “The longer a person waits to develop a plan with an investment professional, the more difficult it may be to achieve one’s goals. Get started early, create and agree on a plan, periodically review the plan with your investment professional, and execute the plan to meet the agreed-upon the goals.” Swartz cautions that there is a large amount of money that is flooding the system, some of which is moving into speculative areas (such as Continued on next page.
Investing for Retirement — inside APRIL 30, 2021
THE BUSINESS NEWSPAPER OF GREATER OMAHA, LINCOLN AND COUNCIL BLUFFS
THIS WEEK ’S ISSUE:
VOL. 47 NO. 18
Studio 951 eyes project diversity as regional player by Richard D. Brown
PartnersBid sees demand for livestreamed commercial auctions. – Page 2
40 er d Un 40 Leadership, team-building enables Levy to serve community needs. – Page 4
t me en Ho vem o pr Im
Home improvement industry strong amid challenges. – Page 24
Studio 951, a division of Shive-Hattery — a regional multi-disciplinary architectural and engineering firm — has strengthened the architectural services offered by its Lincoln office to the point that it has set its sights on opening an Omaha area office. Although the precise location has yet to be determined, company leaders are looking at space opportunities in the old Granary building in Ralston, which is the hub for a recently-announced multi-acre development project. The firm worked on the Ralston Granary District Master Plan and designed the commercial and residential buildings and spaces. I See It Ventures, of Omaha, is the developer. Studio 951, founded in Lincoln by Dave L. Johnson in 1994, employs 18 in the historic Stacy Bros. Haymarket building at 800 P St., Suite 203. Creative Director Jason Struve will head the three-person Omaha area office, which is sharing space in the I See It Ventures headContinued on page 9.
From left, Office Director Dave Johnson, Creative Director Jason Struve and Business Development and Operations Manager James A. Walbridge … With the addition of an Omaha office, the firm is aiming to expand its project portfolio. (Photo by MBJ / Becky McCarville)
The Farnam Hotel marries downtown energy with luxury, Omaha history by Becky McCarville
As Omahans watch the transformation of the Gene Leahy Mall, the Landmark building at 1299 Farnam St. will soon open as an urban luxury hotel, with the new park as its front lawn. Owned by investment group Avaden, headed by Cushman & Wakefield/The Lund Company’s Jason Fisher and his wife, Angie Fisher,
M.D., the 1991-era, 15-story renovated Landmark Center will serve triple duty as The Farnam, Autograph Collection Hotels, office space and retail/restaurant space, along with a 525-stall parking garage. “We’re really excited about the kind of engagement we’ll be able to have with the park because proximity-wise, we are perfectly Continued on page 10.
Owner Rachel Evans … Benson is the perfect neighborhood for a coffee and cocktail lounge with ever changing themes.
Transformation is key for Edge of the Universe, a coffee and cocktail lounge by Savannah Behrends
Jason and Angie Fisher, principals in the Avaden investment group that owns The Farnam Hotel, set to open in May … Immersed in Omaha’s history, the Farnam Hotel opens in the Landmark building across from new downtown park.
A deep love for art and community inspired Rachel Evans and Adam Van Osdel to create Edge of the Universe, a coffee and cocktail lounge in Benson with quarterly experiences (“exhibits”) based on themes. “My partner and I both worked with museums and exhibits and we saw this potential because there are so many incredible artists in Oma-
ha,” Evans said. “We wanted to have an escape where you’re going to leave the world for a bit and go into this exhibit to hang out.” Setting the scene Like exhibits found at museums, the central goal of the café is to expose visitors to new experiences and artists in a unique, no-pressure environment. Evans’ idea was to pick quarterly Continued on page 30.