BizNOW - May 2014 Issue by BizNow Magazine

Vol. 4 Iss. 5 May 2014

get inspired

NOW

inspiring the creative spirit in every business leader

Investing in Gold! How Much Do You Need to Retire?

6 Tips to Get a Raise Look like a Millionâ&#x20AC;Ś on a Budget

THE

MONEY

issue

Pd V S Rquire 9 FREE HAIR LOSS Re 88-165 8 FOR WOMEN ) SEMINAR 0 0 (8

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May – the Money issue! Photo by Hannah Parker

Money – How to Make it, Keep it, Grow it. We all know money does not rain down from above, but if it did, what would you do? What do successful people do that sets them apart from their peers? How can you get a slice of the pie? We all have equal opportunity but education and professional advice could make all the difference. The possibilities are unlimited!

This issue will help you create a budget, grow your nest egg, and find the right investment mix for your age. Perhaps you’re ready to expand your portfolio with gold, safer or riskier instruments, or even solidify your retirement with tax free investments.

Credit cards that pay YOU!!!

Running your own business? Are you charging what you are worth? Can you find the funding you need to grow your business?

Cover Model Laura Blankenship is a Financial Advisor at Verley Financial, representing the face of the next generation that is helping us make sound financial decisions and plan for life’s events and retirement. Credit for this month’s cover goes to Photographer Hannah Parker.

in every issue

Inside Biz........................................4

note from the editor

Biz Feature....................11, 15,

16, 17, 26

Smart Biz ...................7,8,12, 19,20,21,23,24,27

Biz Blurbs................................... 13 Style NOW...................28-29 What's NOW....................30

calendar of events

contents

It’s all here in BizNOW.

Investing: Where are your eggs? Diversifying your financial basket: Stocks & Bonds, Mutual Funds, Annuities, Real Estate, Foreign Investments

We’re all looking to grow our net worth and retire comfortably one day. You’ll find new options and expand your knowledge in BizNOW.

In this issue, you’ll also find tips on how to dress for success on a limited budget, ask for a raise with credible results, or even how to make money with your credit card!

6 Tips to Get a Raise

Investing in Gold! Is it for you?

Entrepreneur Alert: Find Funding Online

Charge What you’re Worth

Budgeting: The MOST IMPORTANT thing you can do with your finances!

Keep it SIMPLE: 5 Tips to Living within Your Means

Biz Blurbs: Could you use a raise? Invest consistently. How to truple your money.

What you NEED to Know about Money: at age 20, 40, 60

How Much Do You Really Need to Retire?

May 2014 | BizNOWmagazine.com | 3

inside Biz

NOW note from the editor

Make Some Money

Give it away Not only is Philanthropy biblical, but its good business too.

Photo by Hannah Parker

When you give back to your community, people notice and respect you as a business person. They know you care and are more willing to support your venture. Without the great philanthropists of the 1800’s and early 1900’s we would not have our public library system, many of the great educational institutions we enjoy or the advances in medicine that have allowed us to live longer and healthier lives.

“We make a living by what we get. But we make a life by what we give.”

Modern day givers like Bill Gates and Warren Buffet who single-handedly created the largest non-profit foundation almost overnight are continuing the American tradition of giving by tackling tough medical challenges throughout the world. As a good business leader, it’s imperative to be a good community leader too. Giving. It’s how each of us can change the world.

- Winston Churchill

Publisher BizNOW Magazine, LLC. Editor Charlotte Hofer 605-376-3758 char@biznowmagazine.com Design Director/ Senior Creative Ally Vogel 605-759-5615 ally@allysart.com Director of Marketing Tim Cummiskey 605-366-1489 tim@biznowmagazine.com Director of Business Development Alan Dooley alan@biznowmagazine.com Contributing Photographer Hannah Parker Social Media Strategist and Proofreader Alison Peymann May cover photo by Hannah Parker Reproduction or use of the contents of this magazine is prohibited. BizNOW Magazine is published monthly by BizNOW Magazine, LLC and strives to publish only accurate information, however BizNOW Magazine, LLC cannot be held responsible for consequences resulting from errors or omissions. All material in this magazine is the property of BizNOW Magazine, LLC and cannot be reproduced without permission of the publisher. Send magazine feedback and advertising and sales inquiries to tim@biznowmagazine.com ©2014 BizNOW Magazine, LLC All Rights Reserved.

Connect with us! Char Hofer

Publisher/Editor

Visit us online at:

www.biznowmagazine.com

@BizNowMagazine

4 | BizNOWmagazine.com | May 2014

for news that affects the Sioux Empire business community

Biz Contributors Contributors

Alan Dooley is a 32-year veteran of IBM and now runs Grathia Corp, a private lending and real estate investment firm. Having been a soccer coach and heavily involved in the Boy Scouts of America, he raised four children and now cares for his parents, one of whom is in remission from bone marrow cancer. Putting the fast-paced corporate world behind him, he now lives in Madison. He has a BS in Computer Science from Rutgers University. Marcella Prokop teaches business communication at Kilian Community College and composition for Southern New Hampshire University’s College of Continuing Education. She has a BA in journalism from Augustana College and an MFA in creative writing from Chatham University. Marcella’s writing has appeared in literary journals, newspapers and magazines, and when she’s not prepping or grading for class, she is working on a book, gardening, or planning her next adventure.

Steph Laska works as an

Executive Recruiter with Lucas Group in Phoenix. Fluent in French, Steph has also worked as an English tutor in Grenoble, France. She says that living in different places has given her a broader and more dynamic view of the business world. Her heart belongs to Sioux Falls, though, and she plans to start a business here one day, as she loves the exciting city growth combined with the small-town feel!

Sam Tastad is a freelance

videographer and writer in the Sioux Falls community. He is a Production Assistant at KDLT where he films and edits local sports games, and freelances as a sports writer at ESPN 99.1. He interviews local coaches and players about games and writes feature stories. Sam graduated from the University of Sioux Falls in May of 2013 with a Media Studies degree.

Interested in Advertising? Let us help you: Charlotte Hofer

char@biznowmagazine.com 605-376-3758

Tim Cummiskey

tim@biznowmagazine.com 605-366-1489

DID YOU KNOW? BizNOW has expanded to Sioux City, Okoboji and Dell Rapids! In Sioux City, find us at HyVee, St. Lukes Hospital, Fareway grocery store, banks, clinics, and more! Find us in a dozen locations in Brandon, including Sunshine Foods and Pizza Ranch, and at Sunshine Foods in Hartford. Every month we’re adding new locations! Find us online at biznowmagazine.com

BizNOW

Vol. 4 Iss. 2 February 2014

With a degree in Journalism and English from South Dakota State University, Tessa Audet enjoys both reading and writing. She spends her time writing for BizNOW and exploring Denver, CO. When Biz isn’t keeping her busy, you can usually find Tessa with her nose buried in a book or out spending time with friends.

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Get it. And Get AheAd.

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May 2014 | BizNOWmagazine.com | 5

BizBUZZ

a little more about our advertisers

Get to the job you love with a great interview with tips from ERC. It’s what every job seeker should know whether you’re changing careers or headed into business for the first time. During your interview, refrain from playing with your hair or touching your face, remember to make eye contact and smile. Let them know that you’re the enthusiastic and qualified candidate they’re looking for. Good luck! (See ad page 7)

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Smart BIZ

by Steph Laska

6 tips on How to Get a Raise

There aren’t many people in the world who would be opposed to making more money. Although they do exist, there are not many who would say, “Absolutely not! Keep your money, Mr. Employer. I don’t want it.” (If you’re one of these, skip to the next article.) Asking for a raise can be a difficult, if not terrifying. But, it doesn’t have to be. If you believe you deserve it, then just go for it. The worst thing that can happen is your boss says no. And “no” isn’t always a bad thing; he now knows you may be looking somewhere else and will be on his guard to keep you.

1. Timing is everything when it comes to asking for a raise.

Not Monday. Your boss hates Mondays just as much as you do. Keep in mind their mood, and stress levels. Hit them on a day when they are happy, you have been performing well, the birds are chirping and the sun is shining. (Not literally, but it couldn’t hurt!)

2. K now your market value. Things to consider are what other individuals are making in your same position. And we don’t mean people in New York. If that were the case, we would all be vastly overpaid in comparison to our cost of living. Check out resources like glassdoor.com, local recruiters that may specialize in your field, and job boards. Then compare and contrast.

5. Ask for the raise, and then wait for an answer.

This is hard. It may be the worst part of the meeting. People tend to want to sugar coat and soften hard questions. You will most likely want to say, “I would really like a raise, because I think I’m worth it based on all the information provided, and I trust you understand where I am coming from, and this is why…etc.” DON’T DO THIS. Instead, you should be saying, “I believe $X is a fair amount,” and wait for their answer. Warning: it may be uncomfortable. But you can do it.

6. When the answer is “no” don’t give up. Ask why,

and then ask how you can work toward the amount you want. It’s not over. You may just need to give it three to six months. Maybe your manager’s hands are tied. Whatever you do, don’t take it personally. Take it as an opportunity to learn more about what the boss expects from your position. u

Smart BIZ Sponsored by:

3. U nderstand what your company is allowed to pay. Some companies put caps on salaries and if your

company is already paying you at the top of their scale, you may be out of luck. Talk to HR. Although a hard number may not come out of the conversation, at least you’ll be more educated on your company policies.

4. T oot your own horn. Confidence is the only way a

boss will take you seriously on this topic. When you request that meeting, prepare a presentation, documentation, or a list of all your recent accomplishments and how your contribution impacts the bottom line.

Call us today! 605.428.6150 www.ercjobs.com

Craig Libis

Sources: cnbc.com; forbes.com; nbcnews.com

May 2014 | BizNOWmagazine.com | 7

Smart BIZ

by Marcella Prokop

CREDIT CARDS THAT PAY YOU Making Money with your Credit Cards

At the beginning of the year I stopped by my bank to order a new ATM card. A banker tried to sell me on a new rewards card, one that was “sure to earn me a roundtrip airline ticket by the end of the year.”

If you’re the kind of person who could pay off a balance in full, consider these points as you look for a card that will work for you.

It was an appealing offer, but the fine print stipulated that:

1. Are the rewards items they offer something you’d actually spend money on? A gift card to Red

1) I would pay an annual fee for the card 2) I would need to spend a certain amount each month 3) The ticket price capped at $400 4) T he ticket could only be purchased through one of the bank’s partner websites When I did the math and compared the requirements, pros and cons to the rewards I get with my current card, the numbers just didn’t add up in my favor. This is because I have a card that does pay me—in cash—to use it.

YES

, it's pos sible!

Lobster is nice, but if you’re allergic to shellfish, you’re not really making any money there. Make sure the rewards are for things you want.

2. Does the card charge an annual fee? How much? Are you going to be able to recoup that fee with the rewards you earn, or will you just break even?

3. Does the lender tack on penalty fees if you don’t use your card

enough? “…So I decided I found out about this card through a friend who told me that this to sign up for the card. 4. Is there a requirement for particular Visa card gave her 1% how much you spend? Does Two years later, I’ve cashback on any purchase, but that translate to a percentage of gas, groceries and travel all earned made more than $850.” cash back? Like a pyramid scheme, additional percentages on top of some cards give you an extra 1% if that. I love the American Express your spending hits a certain tier. It’s - Marcella Prokop card I have, but Amex isn’t as widely better to look for a card that offers accepted as Visa, so I decided to sign a consistent rate; cards that offer a up for the card she recommended. consistent rate plus a guaranteed bonus Two years later, I’ve made more than on things like gas or groceries are even $850! While that’s not enough to bank on better. Think about it this way: If you have for retirement, it is money I made by spending to hit a certain amount each month for an extra money on things I would normally purchase 1%, are you going to be consistent? You will probably anyway. purchase gas and groceries each month, thus bumping up that percentage rate. It turns out I’m not alone in the desire to use a card that pays: a survey by the Pew Research Center found that 33% 5. What is the length of the billing cycle? As noted of all credit card holders use a specific card in order to above, the only way you’re going to truly make money on a accrue points, rewards or cash. But is this system as good as credit card is if you are able to pay it off in full each month. it sounds? In reality, a rewards card is an excellent tool to If you can do that, you shouldn’t pay any interest on your earn a bit of additional money; but there is one significant charges; however if you don’t have a billing cycle with a grace reason a card like this may be too good to be true. If the period you might get charged interest on a large balance consumer is not in a position to pay off the balance in full at before the bill arrives. the end of each billing cycle (according to Pew, only about 24% of cardholders “generally” do this), then the interest on a Best advice: the rewards card has to fit your lifestyle and remaining balance can eat away at any benefits that may have spending habits to be of value. u come from the month’s spending. 8 | BizNOWmagazine.com | May 2014

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BIZ Feature by Steph Laska

Charge What You’re Worth! In any business, you have to be prepared to fight for what you are worth. Whether you are a freelance writer, graphic designer, photographer, recruiter, or any other trade that would require a project fee of some kind, it’s important to remember that you set the price. There are a number of things that should factor into what your services are worth.

1. Research what the value of your work is in your market.

2. Understand your client’s needs; what it will take to achieve them.

3. Know your client’s budget before you set your price.

• If they low-ball you on price, negotiate. • If they refuse to negotiate, educate.

4. Explain why you price your service at the value you do. Let them know you’re

the best, how your services will benefit them, and how you differ from your competition. Be consultative. You must be an expert in your industry and how your skills will benefit the company. Don’t be afraid to walk away from a project if a client isn’t prepared to pay you what your services are worth. There is always more business out there. Set your standards and don’t compromise on what you are worth. u May 2014 | BizNOWmagazine.com | 11

by Tessa Audet

Smart BIZ

Keep it SIMPLE: 5 Tips to Living within Your Means

Most of us aren’t billionaires who have never heard of the word budget. The reality is finances are constantly on our mind, whether it’s bills coming up, medical expenses or maybe just being able to afford groceries. Living within your means can be a hard pill to swallow, especially with easy credit available. With countless Americans in overwhelming debt, it’s important to understand what you truly can – and can’t – afford. 1. Know both your income and your expenses.

Make a list of all monthly household income and a second list of all the monthly expenses and those that aren’t monthly like insurance or certain utilities. If your expenses outweigh your income, it’s time to make changes.

2. Is it a need or a want?

Of course you need groceries but do you really need all those cans of diet soda, or the more expensive brand of coffee? Begin to examine where you are spending most of your money and what can be cut back. Maybe instead of going out to eat three times a week, settle for just once. Brew your own coffee, rent a movie instead of going out, etc.

3. Use cash.

If you struggle with the urge to whip out the plastic every time you hit the mall or the electronics store, try waiting until you have the cash instead. For example, maybe you want a new computer; instead of using a credit card where you end up paying interest on it, wait until you have saved up enough money. One of two things will happen; you eventually are able to buy something you want without the interest or; while you were saving you realized you didn’t really need a new computer and avoided an unnecessary expense. 12 | BizNOWmagazine.com | May 2014

4. Boost your income.

If you are still struggling paying for bare essentials, it might be time to find ways to boost your income. If you are a business owner, maybe it’s time to expand. If you’re a star employee, ask for a raise at work. If this isn’t an option, consider looking for a better paying career or take a job that will give you the education you need to boost your career. Another option is to find a second job or free-lance work for supplemental income.

5. Be creative.

It’s important to remember when living within a budget that you can still have fun too. You might have to skip the Caribbean vacation in favor of a weekend getaway or a day trip to the lake. Look for fun and inexpensive ideas that will allow you to relax and enjoy life without breaking the bank. Everyone knows it’s important to save money for emergency expenses. The reality is you should have three to six months of expenses ready at all times. If you don’t have that then it’s time to start. u

3.5” x 2.5” | Maximum Font Size: 30 pt

BIZ Blurbs

Looking for the right financial advisor? Jennifer R Tolk Financial Advisor .

Could You Use a $2,000 Raise?

Can you save $6 a day? Take your lunch to work, skip the expensive java, find an investment that will provide a higher return, reinvest your dividends, turn off the lights or TV. Does your employer match your 401k? Take full advantage of the program, its free money!

Consistent Investing Can Pay Off BIG! If you start today with $10,000 and average 20% a year for 20 years, you'll have over $380,000. Add $2,000 a year to the pot, and you'll wind up with $756,751 after 20 years. Granted, 20% a year is not easy to achieve. But even if you only make 10% a year, you're still going to become very wealthy over the long term.

The Rule of 115:

When Your Money Will TRIPLE If doubling your money based on the Rule of 72 is not good enough for you, then consider the Rule of 115. This rule of thumb tells you how long it will take to TRIPLE your money assuming you let the earnings compound. No surprise, just divide 115 by the interest rate to get the amount of time it will take for your money to triple.

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For example, if you earn a 5 percent interest rate, it will triple in 23 years (115 divided by 5 equals 23.) 5 years faster than the 14.4 it took to double. With a 6% return, you triple your money in just over 19 years. This concept works in reverse too – consider how much you are spending on credit interest. If your debt is costing you 14%, you have just paid twice the cost of the goods in just over 5 years! u May 2014 | BizNOWmagazine.com | 13

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BIZ Feature

by Alan Dooley

Investing: Where Are Your Eggs? Diversifying your Financial Basket

As you develop your financial strategy, examine where you’re at in life, your risk tolerance and your goals. Like a triangle, your base investments should be strong on principal preservation with low risk. Moving up the triangle, each layer can be more aggressive and take on more risk for the prospect of better returns. Invert the triangle as you get close to retirement to preserve your wealth. So what should you do? There are as many solutions as individuals and financial advisors and only YOU can decide what is right for you. Biz has checked with the experts and here are a few eggs to consider adding to your basket…

SAVINGS and CDs

Savings accounts, Certif icates of Deposit (CD), and Treasuries

have been traditional starting points and can help you develop the savings habit, however, they currently return less than the inflation rate.

For retirement, take advantage of your company 401(k) especially if they match your contribution. Granted, these funds are for retirement, but your investment grows tax deferred. A Traditional, SEP or ROTH IRA should be in your portfolio as well.

If college expenses are in your child’s future, consider a 529 plan. Your contribution grows tax free in your state as long as it is used for educational purposes. If your first child does not use the funds, they can be transferred to another child or beneficiary. Contributions are tax deductible, rules vary by state.

Stocks and Bonds tend to move in

STOCKS and BONDS

opposite direction in terms of returns, but can be profitable if monitored. Consider municipal bonds for relatively safe tax free income and stability or if you are in a high tax bracket.

May 2014 | BizNOWmagazine.com | 15

BIZ Feature

Investing: Where Are Your Eggs? Diversifying your Financial Basket

OBAMA TAX PLAN Income Tax rate Income/Payroll

Current

Obama Proposal

35%

39.6%

37.4%

52.2%

Capital Gains

15%

28%

Dividends

15%

39.6%

55%

Estate Tax (2010)

A set of mutual funds can help you accomplish your mix with little effort on your part, however always monitor your investments and it’s best to leave the day trading to the experts. Track your trades, each one could produce a capital gain or loss. Capital gains and dividends are taxed at 15% with a congressional proposal to raise the rates to 28% and 39.6% respectively according to the Wall Street Journal, while interest is taxed at your income rate.

MUTUAL FUNDS

Source: Wall Street Journal

As you build your stock portfolio, mix your high risk stocks with reliable dividend producing companies. Jennifer Tolk* provides the following insight on building the dividend portion of your portfolio “By doing some research, you can find companies that have not only consistently paid dividends year after year but also increased those dividend payments regularly. (Keep in mind that companies are not obligated to pay dividends and can reduce or discontinue them at any time.) When share prices are low, reinvesting dividends — which don’t typically fluctuate with share price — can help boost your investment reach further, simply because each reinvested dividend can buy more shares than at the previous higher share price.” After the 1929 crash, people who reinvested their dividends recovered in 15 years, whereas those who did not reinvest dividends recovered in 25 years according to Ned Davis Research. Investors who stayed the course after Black Monday in 1987, the dot-com bubble burst of 2000-2002, and the subprime credit bubble of 2008, not only gained from the rise of the S&P 500, but probably bought more shares at lower prices through dividend reinvestment plans.

Foreign investments can

be a different beast. “Investing abroad allows you to capitalize on diverse areas outside the U.S. with tremendous growth potential. However, in addition to the typical risk you face investing in U.S. equities, you also have to examine the political, regulatory and economic stability and weigh the currency exchange risk,” cautions Laura Blankenship, Financial Advisor & Chartered Retirement Planning Specialist with Verley Financial of Sioux Falls and Canton, SD.

FOREIGN INVESTMENTS

Gold:

From the beginning of time, gold has captured the imagination of explorers, kings and rulers throughout the world. Conquistadors conquered the New World in search of the precious metal, and many shipwrecks still lie buried in their watery graveyards, their treasures of gold just waiting to be discovered. Gold has been prized throughout the ages. Today, it’s the top investment choice for the people of India. In Dubai, you can buy it from vending machines! China is buying up gold at record pace – 490 tons purchased in 2011; presumably to help the nation diversify away from a devaluing dollar.

Are you interested in buying gold? You can own the metal outright or purchase mining stocks. Holding the actual metal is cumbersome for some depending on the amount on hand, safety deposit boxes are the norm for most.

16 | BizNOWmagazine.com | May 2014

BIZ Feature Insurance and annuities can

add a level of comfort and safety to INSURANCE your portfolio and protect you in a ANNUITIES disaster. “Most insurance products are not investments. Investments should be purchased to make you a return on your dollar. Insurance should be bought to protect you or your business from risks,” states Paul A. Curley, Investment Advisor with Pathway Investments, Madison, SD. “There is never a “one-size-fits-all” solution. If a client has a modest income or net worth, term life insurance makes the most sense, especially if they want to cover the family or business liabilities. Whole Life should typically be recommended only for the purpose of funeral expenses ($10,000) or estate/business succession planning.”

Real Estate can be added via a REIT

REAL ESTATE

(Real Estate Investment Trust) that invests in broad markets or specific sectors and they are traded on the open market. If you decide to own your

own investment properties, this will clearly take more of your time and discretionary dollars. They have the advantage of appreciation, depreciation, and 1031 exchange options so you can make trades.

PRECIOUS METALS

Once you have a solid foundation you may want to take on higher risk or more aggressive initiatives, such as gold and silver or quality

collectibles like art and jewelry, antiques or anything you think will go

up in value. Some brokers are suggesting as much as 10% of your net worth be in precious metals. Collectibles can be dropped into your basket with the added benefit of being able to enjoy that Renoir hanging on your wall. Above all, you want to be able to sleep comfortably at night while your money works for you. u * Jennifer Tolk, a Financial Advisor with Edward Jones, shares information written by Edward Jones for use by local Edward Jones Financial Advisors. Note: this article is for information purposes only and is not meant as investment advice.

Is it for You? The risk of owning gold and silver in regard to its value today depends on what the world currencies do tomorrow, say gold experts. In 5000 years has gold ever been worth zero? No, but it does go up and down in value. If you’re going to invest in gold, there are many things you should know before buying -- do your homework and visit with other gold investors to develop your strategy. Most people have little tolerance for metals. Gold runs on both lust and fear in relationship to currency values because gold prices can shift dramatically based on world events and monetary discrepancies between countries. Still have gold fever? One source to visit is the US. Mint web site, they provide a quality product such as one-ounce

by Char Hofer

gold eagles. Last year’s 2013 uncirculated eagles are a good example. Generally, gold prices rise during uncertain economic conditions. Silver, on the other hand, tends to be more consistent because industry consumes over a million ounces everyday globally. Some experts caution that with the issues we face in our country pertaining to debt, plus what is going on in Europe and South America, we could possibly be heading for a global meltdown. They wonder, how much longer can we print 85 billion a month with no consequences? Silver is down $20 from about $45 just two years ago, and gold is in the $1300 range per ounce, down about $600 in the same time frame. So is this the golden opportunity to buy or are we witnessing the beginning of the meltdown? You decide. u

* note: this article is for information purposes only and is not meant as investment advice.

May 2014 | BizNOWmagazine.com | 17

Web First. Marketing Always.

Announcing the merger of local web development juggernaut, Gage e-Services with stalwart, ad agency The A Team. From this point forward we shall be known as The Gage Team and as such we provide sophisticated website development and online marketing solutions with a full suite of advertising and marketing services. Letâ&#x20AC;&#x2122;s face it, today your website better come first. Without one, your business simply doesnâ&#x20AC;&#x2122;t exist. Get that right and everything else is easy.

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Find Funding Online Remember when Radiohead released In Rainbows in 2007? The album was a free, digital download, and consumers could pay as much or as little as they wanted for the music. While this pioneering release didn’t completely turn the music industry inside out, it did teach consumers and producers of all kinds of goods—artistic or otherwise—two things: Using the web to ask people to pay whatever they want for something they believe in can be a viable option. It’s also a good way to just get your name out there. Today, Kickstarter is perhaps the most wellknown way to ask unknown people for funding, and according to research conducted by Rockefeller University, crowdfunding finances were expected to hit more than 5 million dollars in 2013. In a society with fewer grant opportunities and more organizations vying for those funds than ever before, getting clever with a crowdfunding campaign might be the way to go. Sioux Falls scholar Nate Thomas, a member of the Phi Theta Kappa Honor Society, is using GoFundMe to seek funds for a science trip this summer. Thomas says he first learned of the site through an ad. “Frequently we learn of families who experience tragedies, or communities coming together to complete a goal,” he said. “Crowdfunding has become a popular method to gain donations for their cause from a wider audience. I thought I might give it a try to help fund my trip as part of the Medicine and Science delegation to New Zealand and Australia with the International Scholar Laureate program.” So far, his campaign has spread the word to millions of GoFundMe viewers and earned him nearly $3,000. This is only about half of what he needs, he says, but he’s grateful for this, and hopeful the page will draw in more people interested in his opportunity before the trip. GoFundMe and Kickstarter are just two of the many crowdfunding sites out there, but before you sign up for one of them make sure to do your research. Does the site you want to use support the kind of enterprise you’re promoting? Kickstarter, for example, may not work well if you are in the scientific field and looking for research funding. While these mostly hands-off resources are popular, they aren’t the only ways for an enterprising person to connect with others who are interested in what they do. For Sioux Falls pianist Michael Sorenson, personal networking is still the best way to get his name out there and not only drum up business but also help

out others. “For me, promoting my services as a musician started right where I was at, and with the people I already knew,” he said. “When I put some thought into it, I may not have had great connections to start, but I at least knew a handful of contacts who DID.” Sorenson says he launched not a crowdfunding campaign, but a Facebook page to keep in touch with others in the music industry and promote his work. This free service has helped his business grow. Combined with his face-toface networking, he says, “I have seen a multiplicative effect. In turn, I have recently found myself in a position where I have been able to take on the role of connector as well.” Not only is Sorenson able to work as a “connector,” he’s also worked hard to promote the value of his craft— music—within Sioux Falls. His volunteer role Michael Sorenson at the Brennan Rock & Roll Academy allows Sioux Falls pianist him to give back in a meaningful way. “Magic happens when you can pair what you have to offer with the needs of others. Once you start making those connections, it can quickly become a fulfilling (and profitable) enterprise.” Although Thomas and Sorenson utilize resources that allow them to tell a story about themselves and their work, there are, of course other ways to eke out extra funds. Amazon’s Mechanical Turk program allows a registered user to do all kinds of things and earn a few cents a pop. Bored on your lunch break? Take a survey and get paid for it. Another option is Demand Media Studios. With a few writing skills and the ability to follow AP style, you can set up an account, apply for various topical positions, and take your pick of stories from the hundreds that are available. Payment generally starts at $25 for a few hundred words, but this can vary by topic and section. If you have an interesting or useful skill, and can interest people in what you’re all about, you can find funding. Be creative, use caution, the sky’s the limit! u May 2014 | BizNOWmagazine.com | 19

Smart BIZ

by Sam Tastad

How to Budget your Money: Everything you need to Know

While 30 percent of Americans have a long-term financial plan to create savings and investment goals, only a scant 2% of Americans keep a budget to track their income and expenses (Gallup Economy Poll, 2013). Trying to maintain a job, family, marriage AND manage money as a twenty-something, thirty, or forty-year old can be an ominous task that impacts a person for LIFE. Brandon Lane of the Brandon Area Chamber of Commerce shares how he learned from his mistakes, starting when he created a family with his wife and child. “Being 18, you qualify for credit cards, and being on your own, you can dig a hole without income on a monthly basis. After you graduate college, you are trying to resurrect your credit card, and pay college bills. I think high schools should offer courses on credit. Now, at age 26, I have my head on my shoulders, matched a 401K through work, and opened an IRA to grow tax free.” Many people can relate to Lane. But whether young or old, learning to budget and manage your money is not just important, it’s a critical life skill.

For many, distinguishing between a want and a need can be difficult. "Wants and needs have become a lost art in what's important in people's lives. We want the bigger car, and we want to be entertained. It's like a diet. To do a budget, quit your choice of lifestyle,” adds Reed. Reed advises having 3 to 6 months of savings on hand at all times (for rent, food, utilities and other necessities). Here are her additional tips for planning your future.

10 Top Tips to Creating a Budget 1. Save 5% for a rainy day. 2. Save 8 to 13% for long-term retirement (401K, Roth IRA).

tool, “Money is a have either you , or it control of it l has contro of you,” eed – Debbie R

20 | BizNOWmagazine.com | May 2014

3. Allow 5 to 7% for entertainment.   4. Allocate 15% to auto.

Deborah Reed

Ameriprise Financial Agent Madison, SD

5. Allocate 25 to 35% to housing. 6. Allow 5 to 10% for insurance. 7. Allot 5% to pay off debt. 8. Allocate 5% to food. 9. Allow 7% for clothing. 10. A llow 2% for miscellaneous (gadgets like cell phones, computers, television, etc.). This is where a lot of people - young and old - may have trouble with their budget. Often they are spending too much and something has to go, but they don't know where to cut back. You can cut back on luxuries and you have to decide what you can get along without. – Deborah Reed

Smart BIZ Robin Aden

First Bank & Trust

Start saving now and it will become a habit as you get older. When starting a budget, seek out the help of a tax or financial advisor. They can help you find the numbers that work for you. And to set up retirement plans (401K or a Roth IRA). Saving, and retirement plans can reward businessmen and women that have worked hard over their lives.

4 Steps to Live by when Budgeting 1. Avoid a financial disaster. While six months is preferable, have three months living expenses in cash/savings all the time. Insure your biggest risks, i.e., life, disability/health, home and vehicles.

"Many times we see successful individuals that have worked hard, have strong careers, make good income, are busy raising their families, yet they have no idea when they can retire, or when they do, if they can live the way they want to. When we sit down and take their 'financial pulse,' so to speak, there can be a big 'aha' moment. There is tremendous value in providing peace of mind that they are on track, and other times, there is value in knowing there is some work to do, but we can help develop strategies to get them where they want to be, no matter what stage of life they are in," adds First Bank and Trust's Robin Aden.

2. Determine what will get you out of debt and implement a plan. 30% is the maximum debt to income ratio you should have.

3. Maximize your 401K. In 2014, $17,500 is the

maximum contribution. Work towards saving at least 10 percent of your income, 15 percent is better.

4. Seek advice from a trusted advisor. Map

out short and long-term goals, use a balance sheet to understand your current situation, assess risk tolerance, and seek the advice of a professional to help organize your taxes, investments, wills, debt and liquidity issues and family dynamics.

Most businesses have retirement plans for their employees as well. Lane gives practical advice to help you learn to live a healthy money lifestyle, “If I don't need it, I don't buy it. No need to keep up with the Joneses'. Save for it and buy it outright." u

Deborah P. Reed, LITCF Financial Advisor

FIND MORE

Profits IN YOUR BUSINESS

Ameriprise Financial Services, Inc.

212 N. Egan Ave PO Box 202 Madison, SD 57042-0202 Tel: 605.256.4774 deborah.p.reed@ampf.com

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We work inside your business 5024 S Bur Oak Place, Suite #117 • Sioux Falls 57108 Phone: 605 362.2616 • Cell: 605.310.7197 sharonf@aceshr.com • www.aceshr.com

Coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, coverage is underwritten by American Family Life Assurance Company of New York. Policies may not be available in all states. There may be indirect administrative or other costs. Source: Aflac Company Statistics, June 2011. 7/12

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May 2014 | BizNOWmagazine.com 21 Coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, coverage is| underwritten by 7/12 M1861C Policies may not be available in all states. There may be indirect administrative or other costs. Source: Aflac Company Statistics, June 2011.

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Smart BIZ

by Alan Dooley

What you NEED to Know about Money… AT AGE

20, 40, 60 good at this stage of life. Here is where you need to confront your kids’ college expenses and be socking away as much as you can greatest accumulation years, not necessarily after paying off your consumer debts. Your retirement annuity, in money, but in acquiring the lifestyle IRA, SEP, or 401k should be well funded and your investments you want. Consumerism is high as you growing nicely. purchase a car, a home, get married and have kids. It’s easy to put off saving for retirement or Entering your 60s and laying the groundwork looking to retire? With for a lifelong pattern your home paid of saving and living at or below your off, think about means. Learn to live using 70% of your the lifestyle “Compound interest income, save 10 to 15%, allocate 5 to you have is the eighth wonder of 10% toward debts and blow the rest planned for the world. He who having fun. Enjoy your youth, but do the next thirty it along with laying the foundation or forty years and understands it, earns it ... for wealth accumulation. Allowing take the steps to preserve your wealth he who doesn't ... pays it.” compounding growth to start early but keep it growing at or above the can make a huge difference over your rate of inflation. You will want to be lifetime. able to live comfortably with taking out - Albert Einstein about 4% each year from your nest egg. Accounting for your changing health needs In your 40s and will be your biggest expense and you want to be 50s, you should well cared for to enjoy the golden years. have most of the ‘things’ you need or want and your consumerism itch will start to wane. It’s Where ever you are on your life journey, it makes sense to consult easy to get caught up in the latest fade a financial planner so you can get the professional guidance and you could end up living above your needed to match your goals and aspirations. Cheers to a happy means and accumulating more debt, not future! u

Your 20s and 30s represent your

20's

60's

40's

May 2014 | BizNOWmagazine.com | 23

by Tessa Audet

Smart BIZ

Work and Play: The Balancing Act No matter what you do for a living, we’ve all felt stressed out and over-worked at some point. We are taught to work hard, make money and achieve success, often at the expense of finding time to relax and play. Well, here at Biz we believe that all work and no play really does make Jack a dull boy! So here are some tips to manage the stress of work and find some time to play, before you feel like putting an ax through a door. 1. Clear your thoughts. Whether before or after your work day, take the time to clear your mind and just relax. Try enjoying your morning coffee in silence instead of reading the paper. Or once you get home, relax on the couch without turning on any electronics. This will help you recharge and de-stress.

2. Stretch. Tight muscles, a kink in the neck, sore shoulders…all signs you’ve been sitting at your desk way too long. Take a minute to get up and stretch out all those muscles every hour or so, or walk around

your office a bit. It will help relax both your body and your mind so you can focus more clearly once you sit back down.

3. Make a list. Feel like there’s just too much going on in your life to deal with? Try making a list of what worries you the most. Putting concerns and to-dos on paper can give you a sense of organization and calm, making it easier to focus on what needs to get done.

4. Keep up with your hobbies. Everyone has something they enjoy doing that’s just for them, whether it’s reading a thriller, running, cooking or fishing. Make sure to not let those important hobbies slip away and get permanently put on hold while you’re working so hard to get ahead. Take time for yourself: it’s essential and leads to feeling more fulfilled, which will energize you and make you more productive.

5. Plan a vacation.

605-351-5470 24 | BizNOWmagazine.com | May 2014

You may scoff at the idea now since there’s absolutely no way you have time to go anywhere. However, the simple act of planning and thinking about taking a trip can be as therapeutic as actually going on one. (Not quite…but close!) Then once you realize you do have the time, you have all these great vacation ideas to choose from. u

by Char Hofer

Financial planning Retirement planning

Are You

PASSIVE OR AGGRESSIVE ACCOuntIng-COnSultIng and FIND MORE EMPlOyMEnt SOlutIOnS Profits

Greg Leonard

Bookkeeping

We all have different risk tolerance levels. When we’re young, we tend Financial Consulting to take on more risk in everything we do. This feeling of invincibility can serve us well financially. After building a stable base, manyPayroll of the experts Biz spoke to encourage younger investors to take a more Human Resources aggressive approach to their investing, not wild betting in unfamiliar arenas, but in sectors of your profession where you feel you can take reasonable, educated risks with your portfolio. Early growth can compound substantially over the years just as early losses can be 5024 S Bur Oak Place, Suite #117 • Sioux Falls 57108 made up over time after swallowing a humble pill. Never invest more Phone: 605 362.2616 • Cell: 605.310.7197 than you can afford to lose.

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Stay in touch with your financial advisor and once a solid financial base has been established, be prepared to move into more balanced positions of wealth preservation and moderate risk. As you progress through mid-life, constantly rebalance your investments to meet your goals and ever changing needs. Uncle Sam will constantly be making modifications to investment rules and the tax plan, so your financial future depends upon understanding and reacting to the whims of Washington. As you approach retirement, you need to become even more protective of your nest egg, meaning less risk and safe dividend producers that will stay ahead of inflation. One huge market correction – which can happen – could take years to recover from and put a serious damper on your retirement plans!

Consistency Pays If you start today with $10,000 and average 20% a year for 20 years, you'll have over $380,000. Add $2,000 each year, and you'll have an impressive $756,751 in 20 years. Granted, 20% per year is not easy, but even with a 10% return, you will accumulate a nice chunk of change. The Warren Buffet approach is to buy solid dividend producers when they are on sale, keep them forever and let the returns compound. For example, Buffett bought Coke in 1988 and now owns 16 shares for every 1 he bought due to stock splits. He bought again in 1994, and now owns 4 for 1 due to splits. Today, Buffett owns over 400 million shares – worth over $15 billion. The dividends alone return around 50% of his purchase price each year! … Go find your own ‘coke’. u

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Business solutions: - Preventing and Managing Injury - Workers Compensation - Business Insurance - Hire Right Renae Eidenshink, CPCU, CWCA 5024 S Bur Oak Place, Suite #117 • Sioux Falls 57108 Phone: 605 362.2616 • Cell: 605.310.7197 renaee@inspecialtygroup.com • www.insspecialtygroup.com May 2014 | BizNOWmagazine.com | 25

BIZ Feature

Biz Staff Reports

If you retire at 55 and make it to 100, you will need 45 years of steady retirement income that keeps pace with inflation.

How Much Money Will You Really Need to Retire?

Estimates vary, but many experts agree that 60-70% of your current income is what you’ll need to retire comfortably. One size does not fit all, so work with a qualified financial professional who can help you estimate your financial needs over the short and long haul. Consider the following life factors: Spending Habits – Most Americans will spend 90-95% of

their working income according to MarketingLibrary.net. If you have your home paid for by retirement or plan to downsize, you should be able to reduce spending to the 60-70% level without too many budget cuts. Also, you have passed the consumerism phase and probably have all the things you need, so maintenance mode is the norm. If you are planning to take that world tour or visit the kids and grandkids, then you will need to factor that in.

Health – Most people will face some type of costly health issue

at some point in their golden years. Insurance premiums having already jumped 30 to 40% and continue to go higher as the ACA is rolled out, so when you are ready to retire and pick up Medicare coverage, what will it look like? Will it even be there? Will it cover your needs or will you require additional private care? Deductibles have risen and the cost of prescription medications will presumably continue to rise. If you need additional care and enter an assisted living or comprehensive care facility what will that cost be? Do you have insurance?

Heredity – What is the longevity factor for your family? As a society, we are living longer and healthier lives with more of us entering our 80s and 90s. If you retire at 55 and make it to 100, you will need 45 years of steady retirement income that keeps pace with inflation.

Portfolio – Many people enter retirement with asset allocations that may no longer be appropriate. Some carry too 26 | BizNOWmagazine.com | May 2014

much risk at a time when more stability is required and others are so risk adverse that they do not keep up with inflation or allow for a modest three to four percent to be withdrawn annually and last 40 or more years.

• Cash – examine your Social Security, Pension, 401k, IRAs

and any other cash sources to determine your likely cash flow. There are many retirement calculators available on the web or through your financial advisor to help determine what you can withdraw and keep pace with inflation. With the Feds printing money every month, inflation will take a toll on your cash.

• A business – Do you plan to sell your business and cash out? Consult your tax advisor for the best way to do this.

• Other residual income – are you an author, internet

guru, or real estate mogul with residual income? Determine how much longer you want to monitor these assets.

• Income-producing investments – if your dividends and capital gains are solid, congrats!

Quality of Life – It all boils down to what you want from your retirement years. It’s easy to be complacent and keep putting off retirement planning, but if you want to have a vibrant and fulfilling retirement with the time and resources to follow your passion, plan now. u

Smart BIZ

by Greg Leonard

Zero Taxes in Retirement? There’s a massive freight train bearing down on the average American investor, and it’s coming in the form of higher taxes. The US Government has made trillions of dollars in promises for programs like Social Security and Medicare that it may not be able to keep. The only way to deliver on these promises is to raise taxes. It’s simple math. Some experts have even suggested that tax rates have to double just to keep our country solvent. Unfortunately, if you’re like most Americans, you’ve saved the majority of your retirement assets in tax-deferred vehicles like 401(k)s and IRAs. If tax rates go up, how much of your hardearned money will you really get to keep? A study of the history of taxes in America lends a bit of perspective. Back in 1913, the first income tax was a mere 1%. By 1943 the highest marginal tax bracket in our country had skyrocketed to 94% on any income that exceeded $200,000. By the 1970’s, Americans were still paying 70% on anything they made above $200,000. Today the top marginal rate is 39.6%. You could make the case that taxes haven’t been this low in nearly 80 years! The real question is, how long can these low rates last? We need to implement strategies that can help remove us from the train tracks. It’s difficult, if not impossible, to create a Tax-Free Road Map without the help of someone who’s been down this road before. In order to create a Tax-Free Road Map, an advisor must be familiar with all the pitfalls of the traditional tax-deferred investing paradigm and be well-versed in the tax-free strategies that will land you at the 0% tax bracket before tax rates go up again. If you believe that income tax rates will be higher in the future, you may be better off forgoing that deduction now in favor of tax-free income later; especially when you consider you may live 30 years or more in retirement. It’s seldom too late to make substantive changes that can have major effects on your bottom line income.

With the right blend of an individual's resources - their pension, Roth IRA, and tax free investments, taxable income CAN be minimized. To keep down taxable and tax - deferred earnings in retirement, work with your advisors and investigate Roth and Life Insurance Retirement Plans well in advance of retirement. u

Government Spending Today, the federal government spends 76% of the federal budget on just four things: Medicare, Medicaid, Social Security and interest on the national debt. Absent serious efforts on the part of Congress, those costs are set to climb to 92% of the federal budget by the year 2020. (Source “Long-Term Economic Effects of Some Alternative Budget Policies,” Congressional Budget Office, May 19, 2008, 8-9.)

This huge increase will be fueled in large part by the exodus of our nation’s 78 million baby boomers out of the work force and onto retirement programs. In order to offset these costs, tax rates would have to rise dramatically. In fact, David Walker, a former federal comptroller general, has calculated that taxes would have to double immediately in order to sustain our ever-increasing debt load. (Source “Commentary: Why your taxes could double,” David M. Walker, CNNMoney.com, June 15, 2009)

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growth

BizNOW is expanding locally and nationally. There’s never been a better time to join us! BizNOW has been invited to speak locally and around the country as a leader in entrepreneurship support. Columbia University, NY National American Society of Aging Conference Women Ignited by Faith collaborating with Harvard University

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Look like a million bucks…on a budget!

It’s not as hard as you think to look stylish and sophisticated when you’re on a budget. Just try these few tips and you’ll be there in no time! Shop the sales:

Be the Frugal Fashionista: shop the sales, sign up for a store’s email list to receive coupons, and consider second-hand stores. It might be arduous to look through all the racks of clothes to find the perfect outfit but the outcome can be spectacular – and easy on the budget! Look for classic pieces that glam up the clothes you already own like a blazer, a little black dress or a cashmere sweater.

Accessorize:

Here’s where quality pays. Invest in a few key pieces to make any simple option look more elegant and expensive. Consider the classics like a timeless watch, a string of pearls, a statement necklace or a fantastic pair of black heels. (you can never have too much black)

Do it yourself: Women Ignited by Faith

Sioux Falls Brookings Madison Mitchell Tea Vermillion Iowa Minnesota 28 | BizNOWmagazine.com | May 2014

Dress for Success:

Have an old tank top that’s a little tired? Transform it into something new again, freshen it up with sequins or a sparkling applique. There are tons of easy tutorials online that give you step by step instructions on revamping your clothes. So take a few well-loved pieces and turn them into something new --all on a budget! u

21,000

by Tessa Audet photos by Hannah Parker

2014

Style Now

May 2014 | BizNOWmagazine.com | 29

BizNOW Calendar

May 1-31 The Pettigrew Home & Museum 9:00 AM - 5:00 PM M-Sat, 12:00 AM - 5:00 PM Sun 131 N. Duluth Avenue, Sioux Falls 1st SD Senator’s restored home and history of S. Falls Free

Send items to: events@biznowmagazine.com

what's now

May 2 DTSF First Friday 5:00 PM Downtown Sioux Falls Shopping, entertainment and special events at your favorite downtown locations like Coffea, Museum of Visual Materials, Old Courthouse Museum, Washington Pavilion.

May 3 Big Brothers Big Sisters Kentucky Derby Gala 4:30 PM The District 4521 W.Empire Place, Sioux Falls For tickets contact Jami Gates at 605.334.1632 or jamig@bbbsse.org

May 4 Brandon Loyalty Day Parade 2:00 PM - 4:00 PM Annual Loyalty Day Parade

May 6 Brandon B 2 B Member Luncheon 11:30 AM - 1:00 PM Pizza Ranch, Brandon Business-2-Business membership luncheon welcomes the newest members.

May 13 Visitor Industry Annual Luncheon 11:30 AM - 1:30 PM Sioux Falls Convention Center Speaker Captain Mark Kelly was the commander of Space Shuttle Endeavor's final mission. Visitor Industry Awards presentation. Tickets $40. VisitSiouxFalls.com/Luncheon May 13 Sioux Falls Chamber Mixer 5:00 PM Earth Bend 2300 E. 54th St. N., Suite 3 Sioux Falls, SD $3 includes hors d'oeuvres. RSVP to 605.373.2014 or plund@siouxfalls.com. May 15 Brandon Chamber Mixer 5:00 PM - 6:30 PM Edward Jones

May 15 Off The Clock Avera Mixer 4:00 PM - 7:00 PM Avera Prairie Center Network with Avera Executives and employees, YPN members. Cost: Free - food and drinks are sponsored by Avera May 15 “I.N. After Hours” 5:15 - 7:00 PM McNally's, Sioux Falls Join the South Dakota Technology Business Center Network and meet entrepreneurs, investors, business professionals and resource providers.

Open to the public. For details, contact Kim at 605-759-5293 May 25 Networking at Noon Brandon Valley Chamber 12:00-1:00PM Brandon Steakhouse Join Chamber members for lunch! See brandonvalleychamber.com.

May 30 Fridays on the Promenade Concert #1 6:00 PM - 8:00 PM 4th & Virginia Streets, Sioux City, IA $3 Bring your lawn chair, great music, food and beverage vendors. See: fridaysonthepromenade.com

22 3 May 20 SME Membership Meeting 11:30 – 1:00 PM Holiday Inn City Center, Sioux Falls May 21 Siouxland Social 12:00 PM - 1:00 PM Sioux City Chamber of Commerce, 101 Pierce St, Sioux City, IA 712.255.7903

May 21 South Dakota Real Estate Investors Association 3rd Thursday of each month; 6:00 Social, 6:30 meeting 5915 S Remington Place

June 10 Chamber Membership Mixer & Business Fair 4:30 PM Sioux Falls Convention Center 1101 N. West Ave. Sioux Falls, SD Complimentary hors d'oeuvres, $3 admission. RSVP to 605.373.2014 or plund@siouxfalls.com. The June Mixer includes the 13th Annual Business Fair. Booths $100 each.

Biz Lunch Corner May 14, 2014 12:00 noon CST. RegistRation Now Open 60 minute webinar:

“The Top Ten Mistakes That Break Up a Family Business” with Jolene Brown, CSP

30 | BizNOWmagazine.com | May 2014

Business lunch? Guadalajara Mexican Restaurant For South of The Border appeal, good food and atmosphere, topped with excellent service, take a stroll to the west side of I 29 and dine at the Guadalajara Mexican Restaurant located at 5309 W. 41st St, Sioux Falls. Brightly colored walls and furnishings, you are transported to a tropical atmosphere with plenty of hot jalapeno or mild Mexican favorites including fresh made salsa and chips, tamales and guacamole. Top off your experience with Sopapillas and you’ve just had a great business lunch! Got a place we should know about? Send in your own review in 75 words or less - we’d love to hear about it! info@biznowmagazine.com

L to R: Ashley, Colleen, Heather, Megan, Tony, David, Diane, Sue, Carli

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