NOVEMBER/DECEMBER 2017 BIZ.IDAHOSTATEJOURNAL.COM
Building a ShEL-ter EAST IDAHO NATIVE CHANGING THE wAy wE HAMMOCk. PagE 12
morE InSIdE n mCdonald’S a nEw CoffEE dEStInatIon? n BuSInESS lookIng uP for travEl agEntS loCally, natIonwIdE n vandErSloot makES forBES’ lISt of 400 wEalthIES amErICanS
Is your business doing something groundbreaking? do you have a business news tip? Email Idaho State Business Journal editor danae lenz at: dlenz@journalnet.com
2 Nove m b e r / D ec e mb e r 2 017
Danae Lenz takes helm of Idaho State Business Journal Danae Lenz is the new Idaho State Business Journal editor. She was born and raised in Billings, Montana, and attended Northwest College in Powell, Wyoming, before moving to Lincoln, Nebraska. There she attained her Bachelor’s degree in journalism LENZ in 2014 from the University of NebraskaLincoln. She had internships with the Dallas Morning News, the Arkansas Democrat-Gazette and the American Copy Editors Society. After college, she moved to Pocatello and has been building her home here ever since. Lenz has been working at the Idaho State Journal since she graduated college and until now has been a copy editor and designer. She’s been designing this publication for more than three years. Lenz has a yellow Labrador retriever named Felix and two cats named Clara and Virgil. When she’s not working, you can find her in the mountains or reading her huge backlog of books. If you have story ideas or if your business is doing something awesome, contact Lenz at dlenz@journalnet.com or 208-239-3530.
Ida ho St ate B us i ness J o urna l
In this issue vandersloot makes forbes’ list of 400 wealthiest americans Page 3 McDonald’s a new coffee destination? Page 4 Business and Achievement Awards honor area leaders Page 6 Christmas tree prices expected to rise amid shortages Page 6 Business looking up for travel agents locally, nationwide Page 8 Protect Yourself Against Fraud: Phishing Page 9 Potato harvest yields down as growing season ends Page 9 Creative Urban Gardening at Bowman Farm Page 10 ASSESSING THE STATE OF RETIREMENT PLANNING IN THE US Page 10 East Idaho native changing the way we hammock Page 12 Your End-of-Year Financial Checklist Page 14 Community and CEWT — An Intern’s Perspective Page 14 Idaho’s September unemployment rate drops to historic low Page 14
The Idaho State Business Journal is published by the Idaho State Journal. Our mailing address is: 305 S. Arthur Pocatello, ID 83204 Main number: 208.232.4161 | Subscriber Services: 208.232.6150 Copyright © 2016 Pioneer News Group, All rights reserved. Idaho State Journal Publisher: Andy Pennington | APennington@journalnet.com Idaho State Business Journal Editor: Danae Lenz | dlenz@journalnet.com Contributors: Mountain America Credit Union | arosenkrantz@macu.com Janna Graham/Pocatello Co-op | outreach@PocatelloCoop.Com Jennifer Landon/Journey Financial Services | www.JourneyRetirement.Com Robert Spendlove, Economic and Public Policy Officer/Zion’s Bank | Robert.Spendlove@zionsbank.com Shelbie Harris | sharris@journalnet.com Stephanie Bachman
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Idaho St ate B u s in e ss J ournal
vandersloot makes forbes’ list of 400 wealthiest americans BY NICOLE BLANCHARD Idaho Statesman
Journal file photo Frank VanderSloot, CEO of Idaho Falls-based Melaleuca, is one of 13 people who tied for No. 302, each with fortunes Forbes estimated at $2.7 billion.
“The data they were using to value Melaleuca is a year fresher, and the stock market is up about 15 percent over the last 12 months. Everybody’s asset base has gone up, especially if you own stock in any company.” — Frank VanderSloot
This summer, Frank VanderSloot was reluctantly crowned Idaho’s wealthiest man by Forbes. Now he’s made another of the business magazine’s lists: the wealthiest 400 Americans. VanderSloot, the founder of Melaleuca, was one of 13 people who tied for No. 302, each with fortunes Forbes estimated at $2.7 billion. That’s an $800 million jump in net worth from Forbes’ last estimate of $1.9 billion, published only four months ago. Has VanderSloot managed to amass millions more in such a short time? Maybe. VanderSloot told the Idaho Statesman that Forbes’ new list includes updated information on his company, and he “didn’t provide much information” to the magazine for its June list of the wealthiest person in every state. “The data they were using to value Melaleuca is a year fresher, and the stock market is up about 15 percent over the last 12 months,” VanderSloot said recently. “Everybody’s asset base has gone up, especially if you own stock in any company.” VanderSloot declined to say
how accurate Forbes’ estimates were, though. “I know they did their research. I don’t want to respond to (the accuracy of the reports),” he said. He said most of his wealth comes from his shares of stock in Melaleuca, which is privately traded. Based on the $2.7 billion figure, VanderSloot said he believes Forbes is valuing his company around $5.5 billion. “I would argue that (Forbes) placed a lower value on Melaleuca than if it was publicly traded,” he said. That’s not unusual for VanderSloot, who started the online health products retailer in 1985. In June, he told the Statesman that he had “mixed feelings” about the Forbes lists, adding that “the fact that we track things like that and somehow think it’s newsworthy doesn’t say a lot of good things about our society and what we value.” He reiterated that sentiment Wednesday. VanderSloot said the focus should be on the employees who’ve built Melaleuca into a profitable, successful business. “Melaleuca paid out $6.6 billion to employees and marketing executives, so that value is being distributed out to the people who built this,” he said.
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4 Nove m b e r / D ec e m b e r 2 017
Ida ho St ate B us i ness J o urna l
MCDONALD’S A NEw COffEE DEStINAtION? with wi-Fi, inexpensive drinks and a large variety, McDonald’s is starting to compete with Starbucks, local coffee shops
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Idaho St ate B u s in e ss J ournal
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DOUG LINDLEy/IDAHO STATE JOURNAL
Some of the new McDonald’s coffee varieties include, from left, cappuccino, Mocha Frappe and iced Caramel Macchiato.
By danaE lEnz dlenz@journalnet.com POCATELLO — When you think of a coffee shop, you’re likely visualizing something like this: a couple of baristas at the counter, lots of small tables, people sitting and reading or working or maybe chatting with friends. You generally don’t picture a McDonald’s. But the international company known for fast food is working to change that. In fact, it’s working to change how you feel about coffee altogether. “We are striving to build a better McDonald’s which suits the lifestyle needs of all of our guests,” Lindsay Rainey, McDonald’s brand reputation manager for the Pacific Northwest, said via email. “Whether that’s enjoying a McCafe in our lobby while using our Wi-Fi, picking it up in the drive-thru ... or as soon as they pull up to the restaurant, we have made it convenient for everyone to enjoy their favorite McDonald’s items.” Among the coffee drinks McDonald’s is offering in its McCafe line are macchiatos, mochas, cappuccinos and lattes, all of which come in a variety of flavors and sizes. The company will also offer Americanos and hot chocolate. McDonald’s is hoping to compete with local coffeehouses and even corporate coffee giants such as Starbucks. One local coffee shop owner is optimistic about McDonald’s providing some coffee competition. Bart Nawotniak, owner of The College Market on South Eighth Avenue in Pocatello since the fall of 2013, said he hopes McDonald’s will introduce coffee to people who may have previously had no experience with it. And then maybe those people will branch out and try what local coffee shops have to offer. “McDonald’s has a really large customer base and a lot of that customer base is not really, especially in this area, into coffees and lattes and mochas,” Nawotniak said. “Because McDonald’s has such a broad customer base, people who don’t usually go for those kinds of things may be introduced to that at a McDonald’s and they try it at a McDonald’s and then move out to something more like a small shop like mine.” Sam Vineyard, manager of Mocha Madness on South Fifth Avenue in Pocatello, acknowledged that McDonald’s does provide some competition — especially when the store offers free drip coffee — but his busi-
ness tries to make up for it by having better drinks. “It is harder to compete with their prices in a way,” Vineyard said. “Them being such a large corporation, they can lower their prices on similar drinks. … We’re always trying to make our drinks the best quality as possible. That way we can not only draw our customers in by the quality of drink we’re serving, but also the quality of service.” McDonald’s’ foray into the coffee world started in 2009 when the company launched its McCafé coffee brand. According to Rainey, customers loved it, “and over the years, their affinity for the brand and our coffee has grown.” The company announced in September its relaunch of the McCafé brand with flavor improvements. And over the next three years, it will continue to add more coffee choices at its eateries, several of which are located in East Idaho. McDonald’s hopes to continue to get more customers by offering an array of drinks — all for an affordable price. Small McCafés are $2 for any drink — significantly less than what many coffee houses charge. “We are raising the bar for our customers by offering new café-quality espresso beverages to the McCafé lineup — which are made with freshly-ground espresso and U.S.-sourced whole or nonfat milk — in addition to recrafted lattes and mochas,” Rainey said. “The new beverages include: Caramel Machiatto (iced or hot), Cappuccino and Americano.” As for the prices of the beverages on McDonald’s coffee menu, Rainey said, “We are committed to providing our customers with café-quality beverages at a price they can afford and the convenience they expect, both in-restaurant and in our expanded retail presence.” Nawotniak said he isn’t worried about losing customers to McDonald’s, despite the higher prices he charges. He said his customers are loyal and prefer “slow” food to fast food. “I don’t think the type of people who are generally my normal clientele are likely to go into a McDonald’s to get a latte anyway,” Nawotniak said. “For my normal clientele, McDonald’s isn’t exactly a pull away even if they do offer coffee and Wi-Fi and sit-down.” Vineyard also believes his customers will keep coming back. He is positive that his business provides something that McDonald’s
“wE arE StrIvIng to BuIld a BEttEr mCdonald’S whICh SuItS thE lIfEStylE nEEdS of all of our guEStS. whEthEr that’S EnJoyIng a mCCafE In our loBBy whIlE uSIng our wI-fI, PICkIng It uP In thE drIvE-thru ... or aS Soon aS thEy Pull uP to thE rEStaurant, wE havE madE It ConvEnIEnt for EvEryonE to EnJoy thEIr favorItE mCdonald’S ItEmS.” — Lindsay Rainey, McDonald’s brand reputation manager for the Pacific Northwest can’t: a unique experience. “I think people are willing to spend a little bit extra and help support a local business as well,” Vineyard said. “The people I know and have communicated with, even travelers that are coming through, they’re looking for those small, unique, locally owned businesses so they can help support the community. … What we offer is unique, whether it is the drinks that we have or the environments that we have and the audiences that we have that enjoy our environments with us.” McDonald’s is also competing for coffee customers in other ways. The company will soon launch a line of bottled McCafes, which are intended to compete with Starbucks’ bottled Frappuccinos. Both brands sit side by side on grocery store shelves. “In early 2018, the McCafé Frappé line will join an already successful line of ground, whole bean and on-demand single cup McCafé coffee available in grocery stores and other retailers nationwide,” Rainey said. “As we continue to raise the bar for our customers, we are working to make our menu items more accessible, and in this case, creating quality café experiences inside and outside of our restaurants.” With McDonald’s pushing its coffee more aggressively than ever before and many new coffee shops opening their doors in East Idaho during the last few years, one has to wonder if there are too many places serving coffee and not enough customers to go around.
But Nawotniak said the local coffee competition should be viewed as a positive rather than negative. “If different places can open and provide a different atmosphere that people can enjoy and choose from, then that’s better for everybody,” Nawotniak said. “There is a point where there’s too much, but that’ll just mean that we all have to be better to better serve our clientele. ... So as long as we’re providing a good product and good service and a good atmosphere, then that fits positively with us.” Vineyard said having different places for different people is a good thing. “Each person can find their own coffee shop, their place to study,” Vineyard said. “When we have other coffee shops that are locally owned and have their own unique vibe, it really provides a better opportunity for the community to have everyone have the atmosphere that they like. We’re not all the same. We’re not all going to like the same place. … If we were all (offering) McCafes, then it would be all the same experience.” Rainey said McDonald’s is excited about investing more money into coffee and generally being a place where people want to be. “There’s no denying our customers are serious about their coffee,” Rainey said. “This industry and its competitive set is stronger than ever. It’s one of the fastest growing categories and on the rise. It’s good for our business. It’s also good for customers. … We’re providing them with more café-quality beverages at the price and convenience they expect in and out of our restaurants.”
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Ida ho St ate B us i ness J o urna l
Business and Achievement Awards honor area leaders Doug Lindley/ Idaho State Journal
The late Greg Anderson was awarded the Hall of Fame award at the Business & Achievement Awards. His son, Tim, and wife, Cheryl, accepted the award on Greg’s behalf.
By Shelbie Harris sharris@journalnet.com POCATELLO — Leaders in business and philanthropic pillars of the community were honored recently at the Stephens Performing Arts Center during the 18th annual Business and Achievement Awards ceremony. Sponsored by Premier Technology Inc., the Idaho State Journal and Idaho State Business Journal, the event has changed significantly over the past 17 years, but the quality of the people honored year after year has remained the same. Of the total 16 award categories that run the gamut from those in education to law enforcement and the many people involved in retail, legal and medical services, the recipients of the Hall of Fame award were prime examples of people who truly care for the community in which they live. Norm and Beth Hill and the late Greg Anderson received Hall of Fame awards this year. Originally from Hansen,
Idaho, Norm and Beth were high school sweethearts who have been married 60 years. Both retired from Idaho Power and are well known for their philanthropic efforts in the Pocatello community. Norm and Beth Hill are ardent ISU supporters, and Beth chaired the I Love ISU fundraising campaign for several years. In addition to receiving the William J. Bartz award from ISU in 2008, Norm and Beth Hill have been active in the Pocatello-Chubbuck Chamber of Commerce, the Pocatello Chiefs, Pocatello Valley Pride, United Way and Rotary Club. During the construction of Brooklyn’s Playground, both served as build captains. “This is amazing,” Beth Hill said about receiving the award. “We really appreciate it and since we retired we have tried to be involved as much as we can.” When asked why she felt compelled to give back to the community in such a way, Beth said it’s because it’s the right thing to do.
“There’s not anything monetarily in it for us, but it’s the self-satisfaction of knowing that we are doing something great for the community,” Beth said. Norm said events like this highlight the greatness of the community and only encourage more people to get involved. Also awarded at the ceremony was the late Greg Anderson, who is most remembered for his contributions as a former mayor and longtime City Council member in Pocatello. Anderson dedicated his life to serving, helping groups including Pocatello Jaycees, Idaho Jaycees, Junior Chamber International and, among others, the ISU Bengal Boosters program. “Most of it started when Greg was Earl Pond of ISU’s assistant,” said Cheryl Anderson, Greg Anderson’s wife. “Earl encouraged him to get involved in the community and gave him many opportunities and time to get involved.” Greg Anderson received the honor posthumously and Cheryl
Doug Lindley/Idaho State Journal
Norm and Beth Hill were awarded the Hall of Fame award at the 18th annual Business & Achievement Awards that took place recently at the Stephens Performing Arts Center in Pocatello.
Anderson and their son, Tim Anderson, accepted the award on Greg’s behalf. “I saw my dad’s passion for being involved at a young age,” Tim Anderson said. “He ignited a passion in me to recognize the people I’m surrounded by every day and to try and make Pocatello the best place to live.” Other award winners included: n Elementary Education: Brenda Miner n Middle School Education: Stephanie Kollbaum n High School Education: Sheryl Brockett n University Education: Dr. Cornelis Van der Schyf n Firefighter/EMT: Karen Aguilar n Government: Gordon Howell
n Law Enforcement: Jim Jeffries n Military: George Woodman n Nonprofit: Rainbow Maldonado and Courtney Fisher n Retail: Arturo Beery n Nurses/Caregivers: Roxann Jackson n Volunteer: Jennifer Erchul n Financial Services: Elizabeth Merzlock n Legal Services: Douglas Balfour n Hospitality Services: Jeffery Glissendorf Other sponsors for the event included the Portneuf Medical Center, Valley Office Systems, the Pocatello-Chubbuck Chamber of Commerce, the Shoshone Bannock Hotel and Events Center, the Fort Hall Casino and Citizens Community Bank.
Christmas tree prices expected to rise amid shortages By JONATHAN BACH Statesman Journal Americans will pay more for pre-cut Christmas trees this year as shortages deepen from the country’s top two producers: Oregon and North Carolina. Joe Territo sells Oregon trees in San Jose, California. But he’s becoming increasingly frustrated with rising costs, from the trees to labor. Territo says the only figure going down is profit. “It seems like every year, it’s harder and harder,” Territo said. He expects to sell 6-foot Noble firs for about $75 a piece this season, up from about $69 last year. The problem is one of supply. Christmas tree growers are coming up short as their 2017 harvest enters its critical period, with trees being shipped coast-to-coast and abroad. Around the time of the Great Recession, growers had an oversupply of trees after planting too many in the early 2000s. Subsequent low prices forced many farmers out of the Christmas tree business, leaving other growers to tend to the market. But now, with only so many trees to go around, remaining farmers can’t keep up with demand — and they might not catch up for years. It can take nine years before some trees are ready to be cut and sold. Oregon farms harvest the most trees in the United States, exporting them to places like Asia and California. Trees from North Carolina are generally shipped to states east of the Mississippi River, such as Florida. Casey Grogan is a manager at Silver Bells Tree Farm, a few hundred acres outside Oregon’s capital city, Salem. He reckons the farm has received 20 times its normal number of customer inquiries. “We just have enough to supply the customers we’ve been supplying, so we’re not able
to help them,” Grogan said. But Grogan is optimistic for fellow Oregonians who should be able to find fresh fir trees. And there are many u-cut tree farms. “The people that are really gonna suffer from this, I think, are going to be people in Southern California, Arizona, Texas, places like that,” he said. Tim O’Connor, executive director of the National Christmas Tree Association, denies a shortage, but acknowledges, “Supply is tight.” “Everyone who wants a tree will be able to get one,” O’Connor said. Christmas tree farmers aren’t so confident. “Right now, there’s a tree shortage. It’s been coming down the line for the last eight or 10 years or so,” said Jason Hupp, who helps manage Hupp Farms near Silver Falls State Park in Oregon. “So our biggest challenges are having enough trees to supply customers and just getting phone calls after phone calls after phone calls of people desperate for trees that don’t exist,” he said. One recent morning, a helicopter piloted by Terry Harchenko swooped over Hupp Farms, snatching up bundles of trees after Raul Sosa, a lone worker clad in high-visibility orange, connected them to a hook on the chopper’s dangling line. It’s dangerous work — the hook could swing and strike Sosa — but worker and pilot worked gracefully in concert. “It’s like air ballet. It’s crazy,” Hupp said beforehand. The helicopter dropped the heavy trees in a nearby lot, where other workers pulled away ropes holding them together. Many Hupp Farms trees will head down to California. Wholesale growers estimate they’re raising prices at least 10 percent year-over-year. Growers don’t expect normal harvest levels for Christmas trees to return until at least 2021 or 2025.
Like Hupp Farms in Oregon, Barr Evergreens in North Carolina can fulfill wholesale orders for its existing customers but has to turn away new ones, said owner Rusty Barr. Barr expects to raise prices $2 to $3 for precut Fraser fir trees at his retail outfit. That’s on top of the $60 to $80 they’ve sold for in the past, depending on size. North Carolina harvested an estimated 3.5 million trees in 2016, according to the Pacific Northwest Christmas Tree Association. The state was followed by Michigan (3 million), Pennsylvania (2.3 million) and Washington (1.5 million). By contrast, Oregon cut down approximately 5.2 million trees. For Oregon growers, popular Noble firs are especially lucrative — but they only grow so fast, often spending nine years in the ground to grow to 6 feet in the Pacific Northwest. “That’s the Cadillac of the industry,” said Bob Schaefer, general manager of Noble Mountain Tree Farm. The Salem, Oregon, area wholesaler is massive, usually harvesting about half a million trees a year from the more than 4,000 acres the company grows on in the Willamette Valley. One of the factors driving the shortage was a practically nonexistent crop of Noble fir cones for 15 years, with a good crop finally returning in 2016, Schaefer said. Without cones, there’re no seedlings and no trees. Limited supplies of the Noble fir seedlings led Noble Mountain to fill production holes with Douglas firs, assuming customers would still want a Christmas tree of some sort. But some buyers aren’t eager to branch out. “There’s a lot of pent-up demand for Noble fir that, you know, probably, to some extent, won’t be met this year,” Schaefer said. He expects Noble fir harvest levels to return to normal in 2025 or 2026. California is Noble Mountain’s biggest customer, but the company sends trees elsewhere
in the U.S., and even down to Mexico, where the market is hot for its abundance of Douglas firs. “This year, we’re shipping more to Mexico than we’ve ever shipped before,” Schaefer said. Even as shortages affect the Pacific Northwest, competitors in North Carolina don’t keep Schaefer up at night. For starters, cross-country freight prices tend to keep the competition at bay. “I won’t say it’s prohibitive, but it pretty much prices their product out of the realm of reason for the consumer in most cases,” he said. Barr, the North Carolina wholesaler, agrees. With freight costs, “it’s getting pricey to go to Denver,” he said. There’s also a rule of thumb among Christmas tree farmers: West Coast trees remain west of the Mississippi, and East Coast trees stay east of the river. Scattered exceptions crop up, such as when wholesalers compete for Lone Star State customers. “We kind of bash heads in Texas,” Schaefer said. Shortages and rising prices are fueling concerns among growers that customers will turn to artificial trees, whose shelf lives long outlast those of their natural competitors. Oregon growers sold 4.7 million real trees in 2015, falling more than a quarter from sales five years earlier, according to the United States Department of Agriculture. Artificial trees accounted for nearly 81 million of Christmas trees displayed in the U.S. in 2016, while nearly 19 million were real, according to estimates from the nonprofit American Christmas Tree Association. With a dramatic shortage that’s not expected to reverse for another six or eight years — if not longer — Hupp, in Oregon, is worried customers will buy artificial because they can’t find the real thing. “Their families will get used to that being the norm,” he said.
ournal
Keeping hearts strong
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Ida ho St ate B us i ness J o urna l
Doug Lindley/Idaho State Journal
Holley Henderson, director of Travel Agency Services for Sunrise Travel in Pocatello, is optimistic about the future of her industry.
MAKING A COMEBACK Business looking up for travel agents locally, nationwide By Danae Lenz dlenz@journalnet.com POCATELLO — “I would never not use a travel agent — ever.” Those are words you wouldn’t expect to hear in 2017 — long after a lot of Americans thought travel agencies had died off in the age of the internet — but it’s true for Idaho Falls resident Cindy Hoge and for a growing number of people around the country. “If anything goes wrong, all you have to do is call your travel agent when we’re on vacation,” Hoge said. “... We don’t have to do a thing.” Holley Henderson, director of Travel Agency Services for Sunrise Travel in Pocatello, has been in the travel agency industry for 40 years. So she’s seen it all — from the peak of the travel agency market to the rise of the internet and now, she thinks, somewhere in between. She thinks the versatility of today’s travel agents and the fact that they can solve all sorts of problems is part of the reason for the comeback. “When people book something online, that’s pretty much the end of it,” Henderson said. “They get the ticket, they get the email and that’s the end. … We see it happen over and over again; Airlines have problems, delays, schedule changes, weather. ... When someone gets stranded in an airport, they can actually call us when we’ve done their travel and we can … get them rebooked.” Travel agents across the country are trying to re-educate Americans on the merits of using agencies to book trips. And one of the biggest merits is, maybe surprisingly, cost savings. “The internet did a good job of convinc-
ing people that it was less expensive to book travel online. It’s now coming back because people have learned it’s not less expensive,” Henderson said. “You call a travel agent and most of the time you don’t pay any additional because even though we usually charge a ticketing fee for airline tickets, we can usually get them for less than you can online.” Another merit is being available to help 24-7, whether it’s to help you book a new flight when you’re stuck in an airport or to help with restaurant recommendations. “There will always be an opportunity to help people,” said Henderson, who keeps her cellphone on 24-7 in case an emergency arises. “So what I mean by that is somebody who booked their travels who may have got stranded in an airport or something. We have to drop whatever else we’re doing and get that person on their way.” Hoge backs up that statement, saying Henderson has been there for her when she has had to change plans in the past. “Any time that we’ve ever had any issue on a trip or with airfare or anything, she takes care of it,” Hoge said. Hoge added, “It’s almost like insurance. I feel like we’re covered. If anything goes wrong, she’s got us covered.” And then there’s the plus of not having to waste your personal time on booking a vacation. That alone is enough to make it so Hoge, who has been using Henderson’s services for 17 years, to never make reservations herself again. “As far as your time it takes to book, the time on the computer and trying to find the best rate, (Henderson) does that. So it’s 25 bucks well spent,” Hoge said. According to the Bureau of Labor Statis-
tics, in 2000, the U.S. hit a high of 124,000 travel agents. Then the internet became huge and that number dropped to 74,000 in 2014. However, the American Society of Travel Agents says business is looking up. In a report released in 2016, it said that in the previous 12 months, 22 percent of consumers booked through a travel agent, the highest share reported in the past three years. Looking forward in her own business, Henderson said she expects travel agencies to continue to grow. “I’ve found that even since 2014, 2015, that business is coming back,” Henderson said. ”Our business goes up every year. We just keep increasing.” She said she thinks the personal connection is part of the reason for that growth. “I think that the need for somebody that has the knowledge and has the connections will always be there,” Henderson said. According to an article published in USA Today in 2016, “Based on a survey of 14,000 households, the American Society of Travel Agents reports that it is currently seeing the highest numbers in three years for consumers booking through travel agents.” And, surprisingly, Millennials are the most likely to use travel agents and to recommend them to a friend, according to the American Society of Travel Agents. Also according to that USA Today article, “Much of the new business is coming from that most sought after of demographics — Millennials. MMGY reported in its 2015 ‘Portrait of the American Traveler’ that 34 percent of the Millennials responding had consulted a traditional travel agent in the 12 months preceding the survey — higher than
any other age group — and 39 percent said they planned to do so in the next two years”. Henderson said she, too, has seen an increase in Millennials using her business. In addition to all the other amenities Henderson has mentioned, she said each travel agent’s expertise is an added bonus. They can tell you where to eat, where to go snorkeling and any one of a number of things “You can’t get that kind of knowledge just by poking around online,” Henderson said. “... We can make a perfect vacation.” Henderson also said travel agents are always looking for deals for their customers. She said that just recently, they had several couples who had booked a cruise through an agent in Henderson’s office, when that agent found a deal for about $400 off. That more than makes up for the $25 fee Henderson and her agency charges per ticket. “We can get our clients things you could never get yourself online,” Henderson said. Shirley Allen, another agent at Sunrise Travel, said she loves being there for her clients and the best part is when they come back happy. “Having my travelers come back and say ‘That’s the best vacation ever,’” is the most rewarding part of Allen’s job. Henderson is happy to be there for her clients and she says being a travel agent is a job she loves. “I love my job. It’s a job I look forward to doing,” Henderson said. “I still am learning. It’s a job you never get bored with. There’s always more to learn about a destination because there are so many destinations. I love making people happy.”
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Idaho St ate B u s in e ss J ournal
Protect Yourself Against Fraud: Phishing information via email, text or social media.
By Mountain America Credit Union
How can I protect myself? • Log in to your account often and monitor transactions • Change your password frequently (every 90 days) • Use secure websites (URLs beginning with https) • Enable email notifications on your account
Phishing is a form of fraud that has increased exponentially over the last several years due, largely, to the reliance on email and social media to communicate and conduct business. Criminals have found that they can hack these platforms easily or, better yet, they can just send an email or social post asking for help and watch as good and trusting people hand over their cash. It happens all the time. So, how can you protect yourself? Mountain America Credit Union has compiled a list of red flags to look for (hello spidey-sense!) as well as suggestions for what to do if you spot a scam. Take a look! What is phishing? Phishing is an attempt to obtain sensitive account information by posing as a reputable company or its representative.
How can I spot a phishing email? Phishing criminals are not overly sophisticated. There are often several, easy-to-spot red flags in the email. Here’s a list of things to look for: • Subject line: Includes “Urgent” or “Immediate action required” or something similar. • Sender name: Looks odd, unfamiliar or ournalthe sender’s email does not match company name. • Greeting: General, not personalized, like Dear Customer, MACU Member, etc. • Spelling errors: Misspellings, grammatical errors or British word spellings. • Confirm your identity: Legitimate companies won’t ever ask you to do this through unsecure digital channels (Bonus tip: Look at the URL, if it begins with https, instead of http, it is a secure site).
• Attachments: Unless you’ve specifically requested documents from this company, and asked for them to be delivered via email, don’t open sent attachments. • Links: If they look altered (i.e. they don’t include the company name or if random characters have been inserted into the company name in the link — like ma1cu.com), don’t click on them. • Threats: Frightening information is used to get you to act quickly, without thinking or questioning why you have to do it. • Phone contact: Never disclose personal information unless you initiated the phone call directly with the company. • Pop-ups: Never enter personal
information into a pop-up or copy and paste URLs into your web browser from a pop-up. Additionally, authentic companies should never ask for your SSN, PIN, card number, account number or any other personal information via email, text or social media. However, if you call a company directly (a specific location or the company’s call center) you may be asked to provide personal information to confirm your identity. Mountain America usually asks for recent transaction information as identity verification. As a Mountain America member, we will never ask you to provide sensitive personal
What types of accounts are vulnerable? When we’re talking about phishing, most people think of their bank accounts. This is arguably the most important account to diligently monitor, but it’s certainly not the only account that can be targeted. Criminals can attempt to access your money through any online account where you may have entered credit card information. One item of note: Email is the most common channel for this type of crime, but scammers might also use social media, text, advertisements, paper mail, the phone or even in-person connections. You could get an email asking you to confirm your Social Security Number from your auto or health insurance company. Or it could be a direct message on Facebook from that cool clothing line you follow, claiming you’ve been randomly chosen to win a prize if you confirm the credit card number from your last purchase. Be diligent in verifying all requests for personal information. How should I report a phishing scam? If you believe you’ve been the victim of a phishing scam, or any other type of fraud, or if you have received a communication from a company that seems suspicious, contact the company directly and immediately. They will provide you with the proper steps to address it.
Potato yields down as growing season ends By MYCHEL MATTHEWS Times-News BUHL — While wildfires raged and smoke filled Idaho’s sky, the state’s famous spud crop suffered this summer. “Smoke does tend to affect potatoes,” said farmer Randy Hardy of Oakley. The haze over much of the state filtered vital sunlight and somewhat stunted the tubers, said Idaho Potato Commission spokesman Travis Blacker of Idaho Falls. Early estimates say yields are down from last year’s record crop, Blacker said, confirming what Hardy, a potato commissioner, has seen this year. But it’s too early to tell how far below last year’s record crop today’s crop is. Most of the state’s 308,000-acre potato crop is harvested; only a few of the large operators are still digging. “The cold weather held us back a little,” Hardy said Tuesday. “I had expected to be done by now.” In addition, acreage is down
Pat Sutphin/Times-News
A truck filled with potatoes prepared to transport the harvest on Oct. 12 at Rod Lake’s crop in Buhl.
about 5 percent from last year’s 323,000 acres, Blacker said. Twenty years ago, Idaho grew even more potatoes, he said. But dairies have changed the crop profile, especially in the Magic Valley. Producers are now growing more alfalfa and corn. “Growers have more options
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adverse growing conditions. Lake, who grew up on a cattle ranch near Blackfoot, started out as a crop consultant. He started small and grew into the potato acreage he farms now. About onethird of his crop goes to the fresh market, while the rest of his crop is sold to be dehydrated. He’s seen prices fluctuate between $3 and $7 per hundredweight. The $21 per hundredweight he saw in 2008 was an anomaly. With lower yields this year, he hopes this crop will bring a good price. The potato industry has reduced its risk through better seed quality, better fertilizers and advanced technologies, including remote sensing to identify problems early, Lake said. Still, he said, “the best tool a farmer can have is a shovel.”
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now,” Blacker said. Idaho produces about 13 billion pounds of potatoes annu-
ally, more than any other state. According to the commission, potatoes are “America’s favorite vegetable.” About 94 percent of Idaho producers grow brownskinned russet potatoes such as Burbank and the early Norkotah, leaving 6 percent for niche varieties such as fingerlings, golds and reds. Much of the state’s crop was planted late because of wet soils in the spring, Blacker said, which also contributed to lower yields. But other than a few hiccups in the weather, this year’s potato crop experienced few other problems, said Rod Lake of Burley. Lake grew some 1,500 acres of potatoes this year, some near Burley and some near Buhl. Both Hardy and Lake say their crops yielded well — the quality of their soil made up for the
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10 Nove m b e r / D ec e mb e r 2 017
Id a ho St ate B us i ness J o urna l
Creative Urban Gardening at Bowman Farm
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atthew Bowman sold his wasn’t up to speed with numbers first pumpkins at the early on; we eventually caught Portneuf Valley Farmers up, but early on it was projected Market and the Pocatello Co-op to not be the greatest year. This is at the end of the 2008 season. stressful because it’s how I make Since then, Bowman Farm has living and people count on me. grown into a cornerstone of I’m also starting to make somethe farmers market, offering an body else a living and trying to impressive variety of high-quality project consistency in my market. Janna produce and developing a deGraham voted following along the way. As Did you try anything new? a mainstay of our region’s small Sorrel, which is related to farming enterprises, Bowman Farm rhubarb and tastes a bit like sour apples. shows us what is possible at the local I tried another 10 heirloom tomatoes, level. Here, Matthew provides insight and new peppers and melons. We into what it means to make a living (and produced field corn, which is Oaxacan a life) growing food. green corn, for tortillas. It’s being dried right now and will be turned into masa. Do you call yourself a I would like to sell tortillas, but I also farmer? like to eat them. Farmer or urban gardener. I like the implication of doing this in an urban What changes will you landscape. try next year? The farm will get doubled again, and Why did you become a we’ll add at least one more hoop house. farmer? Peppers will be sown two and a half I didn’t have a choice. It came out of weeks earlier, and winter squash will be creative pursuits. I tried to live my life pushed earlier. Cucumber and eggplant with my creative mind and needed to will have their own house. Tomatoes find something fundamental for the will have two big houses. benefit of other humans. It couldn’t be an art form, it needed to fulfill a daily What’s going on at the need, and now I can use all of my crefarm right now? ativity to produce it. Planting garlic. This is the eating season. Earlier in the season we try to sell How would you everything, plus there’s no time to cook. characterize this Can you describe the growing season? growth in interest for This was an unusual year, like every your products? year. It was a fight from the very beginI came in knowing the challenges — ning. I spend a lot of time germinating if I wanted something I had to make it tomato plants, and it was a struggle getting 50 percent germination. A lot of completely, from vegetables to customers. I started small, read the market and additional tomatoes were needed to get where the little tiny holes were, and the right number. This was the first indicator. A hoop house blew over in May grew at a relatively even pace so I could adapt. and had to be reconstructed. The farm
“The local food scene has to evolve from survivalist, sustenance mode into a gradual, more sustainable system that reflects a more intimate understanding of what a local environment can do for the local people. We don’t have to use a broad concept of the Pacific Northwest as local; we can look at what can grow in the south valley of Pocatello, and people can grab a taste of something specific that happens there.” What has surprised you most about farming in Southeast Idaho? All signs indicate that people are changing and are receptive to this. Do you have any suggestions for home gardeners? Yes. Experiment all the time. Drop seeds in the dirt, try things out and watch them fail. To what do you attribute your success? Hard work is No. 1 and also resilience — staring into the face of the potential for clear failure and pushing past it anyway.
and their lives and culinary habits are centered on a local food culture based on what can be grown there. I see those things here, but we’re still reeling from pioneer status. The local food scene has to evolve from survivalist, sustenance mode into a gradual, more sustainable system that reflects a more intimate understanding of what a local environment can do for the local people. We don’t have to use a broad concept of the Pacific Northwest as local; we can look at what can grow in the south valley of Pocatello, and people can grab a taste of something specific that happens there. Culture in general is what I look for.
Why is your farm good for the local economy? It’s a lot of little things. I think giving people an example of enterprise.
What should people understand about what you do? How much it reflects on their own lives, and the depth of labor it requires, and the depth of satisfaction that comes from that labor.
How would you describe the local food scene? Young and fragile. Ultimately, my ambition is based on what we see in Europe and how fundamental and natural local markets are to people’s daily lives,
To get a taste of Pocatello, look for Bowman Farms produce at the Portneuf Valley Farmers Market and the Pocatello Co-op. Janna Graham is outreach coordinator for the Pocatello Co-op. She’s at outreach@pocatellocoop.com.
ASSESSING THE STATE OF RETIREMENT PLANNING IN THE US New Research Shows How Much Still Needs to be Done
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he United States is facing supervision on the part of the a retirement crisis. Ameribeneficiary. The promise was cans know they won’t have that if an employee committed enough money for retirement but to work for a company for a set they still won’t save. period of time, often around 30 The average retiree will need years, the employee could expect around $1 million to provide an regular payments throughout income of $5,000 per month for their retirement years. However, 30 years. However, the averpension plans are going away and Robert age 50-year-old only has around Spendlove have been replaced by “defined $43,000 saved for retirement. contribution” plans such as the 401(k) that require much more Furthermore, 45 percent of Americans have nothing saved for retire- active planning and maintenance to achieve goals in retirement. ment, and 38 percent don’t actively save for retirement. It’s no wonder that 80 Health care Costs on the percent of Americans between the ages Rise of 30 and 54 believe they will not have enough saved for retirement. One of the largest expenses retirees can expect is providing for their health Social Security care needs. These costs can add up Social Security isn’t intended to be the quickly and can decimate retirement acsole source of income for retirees. It is counts. The average out of pocket medidesigned to supplement other sources cal costs for a 65-year-old couple could of retirement income. However, many be as much as $218,000 over a 20-year people now are completely dependent period. Adding to the problem is the on it for support. In fact, 36 percent of forecast that health care expenses will Americans over 65 years old rely entirely rise by around 6 percent per year. And on Social Security for support. UnfortuMedicare only covers 62 percent of the nately, Social Security is running out of average American’s medical expenses. money, and will only be able to cover 77 percent of benefits by 2034. Addressing the Problem It’s not a lack of knowledge that holds Pensions Disappearing people back, it’s a lack of discipline. It’s For many years, workers relied on difficult to set aside money today that generous pension plans to provide for could be used for a new car or a vacation them in retirement. These “defined and instead save that money for retirebenefit” plans required little direct ment expenses many years in the future.
Behavioral economists have proposed several remedies to help people better plan for retirement. • Encourage automatic enrollment and automatic payroll deductions: Most people can save a few dollars a day for retirement, but they struggle to commit to save hundreds of dollars per month or thousands of dollars per year. However, automatically enrolling in workplace retirement accounts with regular automatic payroll deductions reduces the shock of paying large amounts of money for retirement. • Reduce investment options: When investors focus on broad based mutual funds or target date funds they don’t have to worry about returns on an individual stock basis. This reduces confusion and stress about where to invest for retirement. • Discourage withdrawals and loans: If people view their retirement savings as off limits they are less likely to use them or borrow them before they are needed in retirement. While a 401(k) loan can provide a quick infusion of money, it reduces potential retirement gains because the borrowed money does not benefit from stock market gains. Also, if someone with an outstanding loan leaves their employer the full amount of the loan must be repaid. • Show people the impact of saving more and how money will be used in retirement: Many tools now exist to help people understand their needs in retire-
ment and whether they’re on track for success. By modeling different scenarios, workers can see what they will need and plan better. • Plan to work longer and save more: The line between working and retiring is getting blurry. Many people may have to delay retirement until they are older and others may have to plan to continue working during retirement. The Baby Boom generation is already experiencing this new reality. In 1986, under 11 percent of people older than 65 were still working. By 2016, this percent had risen to nearly 19 percent of the traditional retirement-aged group. Plan Early and Be Ready Retirement should be a time to relax and enjoy life. However, to be successful, it is imperative that people adjust their planning for retirement and expectations of retired life. Careful planning and execution of those plans will ensure that everyone can have a financially secure retirement. Additional economic insights, including state and national economic trends highlighting indicators such as employment, demographics, housing, and more can be found online at www.zionsbank. com/economy. Robert Spendlove is Economic and Public Policy Officer for Zions Bank. To contact Robert, email Robert.Spendlove@ zionsbank.com.
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12 Nov e m b e r / D ec e mb e r 2 017
Id a ho St ate B us i ness J o urna l
Building a SHEL-ter East Idaho native changing the way we hammock By Danae Lenz | dlenz@journalnet.com
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t started as an idea written in a notebook. Eventually, the idea won a $7,000 award for entrepreneurship. Then it took Kickstarter by storm, raising nearly $95,000 in 30 days. The idea? The SHEL: Essentially an all-in-one shelter that wraps around your hammock, eliminating the need for a bug net, tarp, underquilt — even a sleeping bag.
The SHEL, short for “shelter,” was started by East Idaho native Caleb Lystrup, who is currently attending Brigham Young University in Provo, Utah, and working toward a doctorate in mechanical engineering with an emphasis in carbon fiber processing. He started the company Khione Outdoor Gear — “Khione” meaning the Greek goddess of winter — with his fellow student, Casey Messick, who was born in California but raised in Hong Kong and is working toward a master’s degree in advanced materials science. Together they are hoping to build a product that makes camping as easy and enjoyable as possible. “We know that when people try out the SHEL, they’re going to be excited about it, they’ll tell their friends about it,” Lystrup said. Lystrup was born in Idaho Falls and raised in various communities around southern Idaho. Eventually, the family moved to Pocatello, where both of Lystrup’s parents are from. Lystrup lived in Pocatello for four years while in elementary and middle school. After that, he and his family moved to Las Vegas, but they still have relatives and friends in East Idaho.
“I really miss Pocatello,” Lystrup said. Lystrup, who said he “always wanted to be an inventor,” got his undergraduate degree at BYU and was later sponsored by Zodiac Aerospace in his studies to complete his doctorate. Lystrup is still working on that degree while trying to get his business off the ground. Lystrup said he got the idea for the SHEL when he was camping one time. That idea eventually became the SHEL, which won BYU’s Student innovator of the Year Award in March 2017. He and Messick won $7,000 at the time and then launched the Kickstarter campaign, which reached its goal of $15,000 in an hour and 35 minutes. The campaign had nearly $95,000 by the end of the 30 days. Lystrup said they did spend money on marketing, but almost all the growth in the Kickstarter campaign came organically — people telling other people about it. The Kickstarter “was very, very successful,” Lystrup said. “We were very surprised at how well it did.” That money has helped launch Khione into another world. Lystrup and Messick started off with
a tiny budget, borrowing Messick’s parent’s sewing machine to make the initial prototype. BYU’s Rollins Center for Entrepreneurship & Technology then provided them with an office and mentorship. “BYU is awesome,” Lystrup said. “They do such a great job with entrepreneurship.” In addition to starting Khione, Lystrup is doing extensive research with carbon fiber. Lystrup jokes that he works all day and then goes home and works all night. “We spend all our time working and then working some more when we get home,” he said. Lystrup’s excited about his future and has been recruited by three aerospace companies, but he says he will keep working with Khione after his graduation and he’s looking forward to building a team to grow the business. Right now, the company is working on getting all 580 of its Kickstarter backers their SHELs by January — in time to test out their winter durability. “We want to make sure the backers are super happy. We want to nail it on the first try,” Lystrup
Idaho St ate B u s in e ss J ournal
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said. “We want the SHEL to be everywhere. We The SHEL is intended to be suitable for all weather. “You can camp in cold weather, rainy weather, snowy weather,” want to see it in retail venues. I would Lystrup said. But it won’t protect you from porcupines — or bears — so be love to see it in REI. I’d love to see it at sure not to keep any food in the SHEL. “It kind of resembles a bear taco,” Lystrup said, referring to the Sportsman’s Warehouse, Dick’s Sporting shape of the SHEL. Goods, Walmart even.” The best part about it is that it eliminates the need for so much other gear. And it only weighs 20 ounces, so it won’t weigh down — Caleb Lystrup your pack. “It uses the best materials available,” Lystrup said. “It will help us trap our body heat and keep us warm. … The geometry of the SHEL traps a thin, 1-inch layer of air underneath the SHEL, and that becomes extra insulation for you.” Survivalists have also been a fan of the SHEL because they can easily store it and put it in their 72-hour kits — basically everything you need for a major emergency or disaster. “People who are preparing their 72-hour kits really like the SHEL because it’s so light you can store it with three day’s worth of food in a backpack. And they know that whatever happens, they’ll be fine as long as they can find some trees,” Lystrup said. Andy George, a professor of manufacturing engineering technology at BYU and Lystrup’s Ph.D. supervisor, said of Lystrup, “I think it’s a mark of a good engineer to be easily excitable about a lot of topics and that fits Caleb perfectly. He’s put a lot of energy into his school work, enough to impress Submitted photo his faculty and potential The SHEL is weather-proof, making it so you can go hammock camping in winter — all without even needing a sleepfuture employers. Yet he’s ing bag. also fully invested himself in this new product, putting in all of the hours for initial research and marketing and now product development.” Outdoor enthusiasts interested in pre-ordering the SHEL can do so www.khioneoutdoorgear.com. The SHEL is $179 — which Lystrup says is less than a really good sleeping bag. If you order now, your SHEL will get shipped out with the SHELs of all the Kickstarter backers. Eventually Lystrup would love to see his SHEL in retail stores all over the place. “We want the SHEL to be everywhere,” Lystrup said. “We want to see it in retail venues. I would love to see it in REI. I’d love to see it at Sportsman’s Warehouse, Dick’s Sporting Goods, Walmart even.” According to an article written by the BYU student newspaper, Universe, the president of the interior design company Alice Lane Drew James served as a mentor for Khione through the Student Innovator of the Year process and she thinks the project will go a long ways. “I envision Khione carving out a strong foothold on Amazon and other digital retailers, and then eventually developing a brand that will be recognized and sold across the country in physical locations, like REI and Scheels,” James said in the article. “I think this will be the first in a long line of products from them.” More products in the Khione line are in the works. “Our goal is to make people’s camping experience as awesome as possible,” Lystrup said. Submitted photo More information on the SHEL can be found at khioneoutEast Idaho native Caleb Lystrup is one of the founders of Khione Outdoor Gear, which doorgear.com, on Facebook at Khione Outdoor Gear and on Instamakes the SHEL. gram at @khioneoutdoor.
“I think it’s a mark of a good engineer to be easily excitable about a lot of topics and that fits Caleb perfectly. He’s put a lot of energy into his school work, enough to impress his faculty and potential future employers. Yet he’s also fully invested himself in this new product, putting in all of the hours for initial research and marketing and now product development.” — Andy George, professor of manufacturing engineering technology at BYU
14 Nove mb e r / D ec e mb e r 2 017
Id a ho St ate B us i ness J o urna l
Your End-of-Year Financial Checklist
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s you enter the final months of the year, you’re probably going to be busy planning — busy planning out your shopping list, busy planning your travel or planning for guests, busy planning for parties to attend or to host. But as you make your plans, there is another item that you should add your to-do list: Your endof-year financial moves. If you want to make the most of your money in 2017, here are some items you could add to your financial checklist:
401(k)s, IRAs, investments that help you save while also reducing your tax burden. In 2017, the maximum you can contribute to a 401(k) is $18,000, or $24,000 for workers who are 50 or older. If your employer allows after-tax contributions, you can keep adding to the total — it’s $54,000 this year, or $60,000 if you’re 50 or older. The Jennifer maximum contribution amount for Landon an IRA is $5,500 for 2017 and if you’re age 50 or older; the catch-up contribution is an extra $1,000, which totals $6,500 for the year. Review Your Financial Goals Another way to save through retirement accounts is by making contributions for your The end of the year is a great time to take spouse. According to IRS regulations, a nona comprehensive look at your financial goals, working spouse can make a deductible IRA both short- and long-term, and see if your contribution up to $5,500 ($6,500 if age 50 or current plan is on track to help you create the older as of Dec. 31, 2017) as long as the couple nest egg and retirement that you want. You files a joint return, and the working spouse may want to consider talking with a financial earned income that equals or exceeds the sum professional when you take this “big picture” of the nonworking spouse’s contribution plus view of your finances. A financial adviser can the working spouse’s contribution. help you establish your goals, set up a portfoBefore the end of the year, try to max out lio, realign an existing portfolio to reflect your your retirement contributions if you can. Not current financial situation, and review your only will you set more money aside for the estate plan. future, but you can also reduce your taxable income for your 2017 return. Check your retirement accounts Make a Charitable Donation One of the best financial decisions you can Another great way to save on taxes make is investing in yourself and your future while also helping causes you care about is through retirement accounts. These include
through charitable giving. Before you give, do your research and make sure the charity you’re considering qualifies for tax deduction. If they do, then your contributions are tax deductible up to 50 percent of your income. To claim your charitable deductions, you’ll need to itemize them on your 1040 tax form. Also, be sure and keep a receipt of your deductions as proof for the IRS. It also pays to be strategic with your charitable giving, allowing your donations to make more of an impact. The following are two of the best strategies regarding charitable contributions: n DAF. A donor-advised fund works as a charitable savings account. A DAF offers both flexibility and control. The donor can contribute to the fund on their terms and then move the money to their preferred charity when they choose. n QCD. A qualified charitable distribution is another great giving strategy that helps consumers give while reducing taxable income. The law went into effect in 2015 and allows someone to give up to $100,000 to charity directly from their IRA without being taxed when you are over 70 1/2 years old. Remember to Take Your RMD If you reached the age of 70½ in 2017, you will be required to take a “required minimum distribution” from your IRA,
401(k) or other qualified retirement account. The deadline to take a distribution is April 1st of the year following the year you turn 70½. For subsequent years, the deadline changes to Dec. 31. The amount of the distribution varies by account type, so check with your plan sponsor or tax professional. Failure to take an RMD can result in a 50 percent penalty, so make sure you take any RMDs before the deadline. By taking time during the holiday season to plan incorporate these tips and strategies into your life now, you’ll be able to enjoy financial freedom and security during your golden years. Jennifer Landon, founder and president of Journey Financial Services, is an accomplished advisor, educator and presenter on financial topics. Landon has spent the last decade advising Idaho Falls residents on the wealth and retirement planning strategies needed to help them achieve peace of mind on their retirement journey. She is an Investment Advisor Representative and a licensed life and health insurance professional in the state of Idaho. Landon is a member of Ed Slott’s Master Elite IRA Advisor Group, the National Ethics Association and the Better Business Bureau. For more information about Jennifer Landon and Journey Financial Services, please call 208-552-9169 or visit www. JourneyRetirement.com.
Community and CEWT — An Intern’s Perspective
By the Idaho department of Labor
s an intern at ISU’s Continuing visiting on-the-job. Walking throughout the Education and Workforce Training massive warehouse of Spudnik you can find division (CEWT), I often surprisingwhite-blue sparks of welding torches, bare ly find myself working to a mosaic of music tractors waiting to be painted, and a comwhile in the office. Whether it be the distant plexity of machines doing hundreds of tasks beat of David Bowie, the soft instruments guided by the hands of Spudnik’s workers. of classical music or the cheerful harmony Alongside these workers are Spudnik’s of Disney songs on a Friday afternoon, the new registered apprentices, who are fresh joy of these songs — while diverse — tend Stephanie out of high school and expanding their to knit together a camaraderie between career opportunities with Spudnik’s alternaBachman employees within the workplace. tive to college, the Registered Apprentice My fellow employees’ music selection program. CEWT helped promote the program also reflects the various nature of CEWT’s services. to college-aged young adults and together with Since I started working here in February, I have Spudnik has been shepherding the administrative seen the CEWT team members combine their requirements of the program. Even in its first year, diverse talents to help enrich the community they this company is finding success through this inserve. From language classes to economic surveys novative learning model. to wood crafts, CEWT pairs with many local busiAt the end of this past summer, I saw CEWT nesses and composes many services that help serve and Amy’s Kitchen join together to offer a language our community. class for the latter’s employees. Amy’s Kitchen, a For example, just this past summer, CEWT family-owned company that specializes in healthy worked closely together with the Home Depot to and organic hand-made foods, added 65 jobs to the offer training on trailer organization so local busiPocatello market last year. This influx of new emnesses could work more efficiently when they’re on ployees prompted Amy’s Kitchen’s to offer a Spanish the road. CEWT helped with the marketing and class to its non-Spanish speaking employees so its provided an instructor while Home Depot offered new arrivals to the company could feel more welup location and supplies. come and knit their team closer together. CEWT In planning for early next year CEWT, Home also provided team building and leadership classes Depot and the Idaho Department of Labor will for those employees, supporting their growth not arrange something similar to an NFL draft — with just as workers, but as part of community. construction workers. Pocatello’s construction CEWT also partnered with the Wood Station in companies are in need of more skilled workers, so Blackfoot to bring the Make-and-Take Craft Night they will hold a two-day “Construction Combine” to ISU’ s campus. Wood Station’s owner, Lori Mcproject in March to find additional interested Neel, hosts these classes for students, hobbyists and workers who want to receive training before demcrafters and helps them create festive decorations onstrating their skills to those same contractors for each holiday season. These classes are popular who are eager to hire them. and attract all ages to our campus. In another part of our regional neighborhood, Throughout my nine months of interning at CEWT has partnered with the Shoshone-Bannock CEWT, I have seen how community can work toTribes, a Southeast Idaho community rich in gether. I have seen the complementary elements of innovation and history to gather tribal-specific service and growth, fueled by those with a need and economic data as part of a Department of Labor by those with the means. When we add the magic grant. Using a survey, created and distributed by of vision, dreams and energy to our neighborhood CEWT though a social media campaign, and with the help of a tribal student intern, the analysis of the of employers, employees and families, we see the responses collected through the survey will help the mosaic of community working together to make things better — just like that mosaic of music I hear tribe offer training that is more acutely tailored to whenever I come to the CEWT offices. the goals of its community. Stephanie Bachman is an intern at ISU’s ContinuAnother business CEWT has been collaborating ing Education and Workforce Training division. with is one that I have had the personal pleasure of
Idaho’s September seasonally adjusted unemployment rate decreased for the seventh consecutive month to 2.8 percent — the lowest unemployment rate on record — dating back to January 1976. September’s decrease was because of a robust increase in the number of Idahoans working and a continued drop in the number of unemployed. Total employment grew by 4,154 in September — the largest monthly increase since July 1993 — driving the total number of people with jobs to 800,629. Employers in five of the state’s 11 industry sectors increased their payrolls in September, pushing Idaho’s total nonfarm jobs up to 715,000 from 714,400 in August. Education and health services jobs increased by 1,400 and construction jobs decreased by 1,300. Natural resources met seasonal expectations with no net gain or loss. A 3,761 increase in the number of people 16 years or older or looking for work helped drive the state’s labor force participation rate up slightly to 63.2 percent — the second consecutive increase after five months of decline. An 11 percent drop in both the hard-to-fill and total online job postings was another indication of increased hiring by employers. Department analysts classified 4,717 of Idaho’s 19,269 online job postings for September as hard-to-fill. Health care jobs — physicians, surgeons, psychiatrists, occupational and physical therapists and support positions — accounted for 24 percent of all hard-to-fill jobs. Idaho’s labor force statistics continue to reflect the state’s robust economic growth. Employment was up 13,187 over September 2016, and the state’s labor force showed a 5,463 increase. Unemployment was down 25 percent with 7,724 fewer unemployed workers. Idaho’s nonfarm jobs have shown
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Idaho’s September unemployment rate drops to historic low steady annual growth for nearly eight years since the trough of the Great Recession in January 2010. Over the year, the state’s nonfarm payroll jobs were up 2.1 percent with a net gain of 15,000 jobs. Education and health services had the largest over-the-year increase at 4,200 while both natural resources and leisure and hospitality saw declines of 200. Annually, unemployment insurance benefit payments were down more than 26 percent — from $1.2 million a year ago to $891,000 for September 2017. The number of claimants also decreased by 26 percent from a weekly average of 3,900 a year ago to 2,900. The Boise Metropolitan Statistical Area (MSA) showed the strongest seasonally adjusted over-the-year percentage nonfarm employment growth of the five MSAs at 3 percent in September, or 9,400 jobs, followed by the Pocatello metro area with a 2.8 percent increase, or 1,000 jobs. Month over month, the Idaho Falls and Pocatello MSAs exceeded seasonal expectations with gains of 0.6 percent and 0.3 percent respectively, for a total of 500 jobs. Nonfarm jobs in the metro areas of Boise (down 0.2 percent), Coeur d’Alene (down 1.4 percent) and Lewiston (down 0.7 percent) saw a collective decrease of 1,800. Twenty-one of Idaho’s 44 counties had unemployment rates above the state rate in September. Of these, three counties were at or above 5 percent: Clearwater at 5.6 percent, Shoshone at 5.5 percent and Lewis at 5.3 percent. Madison County’s unemployment rate remained the lowest at 1.7 percent. Nationally, unemployment dropped to 4.2 percent in September — down two-tenths of a percent from August — while the labor force increased by 575,000. The nation’s labor force participation rate, at 63.1 percent, changed little over the month and has shown little movement over the year. For more information on Idaho’s labor market ,visit lmi.Idaho.gov.
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