The Fight For $15 Backfires

By Alexi Harding

One of the more hotly debated topics in the past few years has been the level of the minimum wage. Since 2009, the minimum wage in the U.S. has been set at $7.25 per hour. Recently, however, there has been general public sentiment that in today’s economy $7.25 per hour cannot possibly be a living wage: thus the Fight for $15 per hour was born.

The Fight For $15 is a community of workers who openly protest the minimum wage. While the movement started out as a small collection of upset New York fast food workers, they now profess to have reached over 300 cities on six continents, officially becoming an international protest group. And while their efforts are valiant, and justifiable, they may have unintentionally made matters worse for themselves.

McDonald’s, the movement’s primary target, seems to have found a way around paying their workers anything at all: by installing self-service kiosks. McDonald’s has finally entered the 21st century, adopting self-service “Create Your Own Taste” touch screen kiosks. These kiosks allow the customer to, as they suggest, create a completely customized burger. Users can choose the type of bun, toppings, sauces and patty that goes into their carefully crafted burger, adding a level of customization that has not been seen before. And from what some reports suggest, the kiosks are working tremendously. The food served is fresh, fashionably and most importantly, fast. While this brand new implementation of technology to enhance the user experience is most certainly welcomed by many, it poses many dangerous implications.

With the introduction of technology and humanity’s growing reliance on robotics and hardware, the need for actual human beings is decreasing; nowhere is this more evident than in the fast food industry. With so many complaints regarding workload and compensation, the fast food industry is eager to find more effective ways to provide customer service while keeping labor costs down. One of the easiest ways to do that is through the use of technology and robotics. Should McDonald’s new kiosk take off, it could potentially cost thousands of workers their jobs.

The announcement comes only two years after then CEO Don Thompson publicly stated that the company would support a minimum wage hike therefore giving workers hope. Under new CEO Steve Easterbrook, however, the company has made some radical changes, mainly in its ingredients and sources of food, as opposed to wage changes.

McDonald’s is not the only fast food company looking into automated customer service. Panera Bread has already implemented self-serve kiosks in about half of their restaurants, with the remaining half to receive kiosks by the end of the year. Wendy’s is poised to follow suit. Unfortunately, the growing push for higher minimum wage could force fast food chains to cut labor costs, and opt for the cost savings of automated kiosks.

Industry leaders are taking note of these changes. In a recent interview with Business Insider, CEO of Carl’s Jr. and Hardees, Andy Puzder stated, “if you’re making labor more expensive, and automation less expensive — this isn’t rocket science.”

The push for higher minimum wage can have other negative impacts as well. While multi-billion dollar companies such as McDonald’s and Wendy’s can afford to install automated kiosks, other, smaller companies will be forced to adapt in other ways. In order to keep up with higher wages, these smaller businesses may need to drastically layoff employees or, in some severe cases, close completely. And while this may sound sensationalized, it is very much a reality. According to Business Insider, after many voted for higher a minimum wage in this year’s election, several local businesses have struggled to cope with the cost increase.

With so many companies prepared to replace human beings with technology, the push for a higher a minimum wage could force these companies’ hands, leaving thousands, potentially even more, without jobs. And with more and more workers from different occupations joining Fight For $15’s ranks, even more industries could follow suit and impact far more people than initially anticipated. This is definitely a serious issue that I will continue to cover as it unfolds.

AUSTIN: ENTREPRENEURIAL BREEDING GROUND?

By Alexi Harding

With every new year comes a Forbes tradition: the “30 Under 30” list. Launched in 2011, the list includes a variety of entrepreneurs across a range of industries who are innovating and becoming successful in their respective fields. Since its inception, the list has become something of a staple for the magazine. This year’s list includes entrepreneurs in industries ranging from consumer tech to venture capital. Of the 600 total honorees, 1 percent  all come from the same place: Austin, Texas. It’s no secret that the U.S. is home to some of the world’s largest contributors to innovative ideas and inventions, with Los Angeles, San Francisco, Atlanta and New York City all famous for their entrepreneurial activity. Could Austin be another such city?

Below I provide an overview of these year’s honorees from Austin:

Joshua Dziabiak, 29 & Adam Lyons, 29

The Zebra

Two young entrepreneurs included in Forbes’ list under the consumer tech category. They are both the co-founders of The Zebra, a search engine for auto insurance quotes. The duo’s company is turning heads and has attracted an astounding $23 million in venture funding. The Zebra is definitely a welcome application to anybody who has ever purchased car insurance before. The application allows users to instantly compare insurance quotes from over 200 insurance companies. With 50 employees, a large amount of funding and their names in the spotlight, these two are destined for great success.

Whitney Wolfe, 27

Bumble

The second innovator from Austin is Whitney Wolfe. The founder and CEO of Bumble, Wolfe has created a dating network with a twist. Users can enter relevant information, such as their name, area, photo and interests, and view other users in an effort to make a connection. Although the application supports both men and women, only women can initiate contact. In an effort to give women the advantage of the situation, male users are not allowed to contact female counterparts. This is done to provide women with a safer environment within which to network and socialize. If the application sounds similar to Tinder, that’s because Ms. Wolfe was a co-founder of the insanely popular dating application and worked to market the app. As of this year, Bumble has 11 million registered users. Wolfe clearly has a knack for creating social networking applications that catch on.

Alex Schwartz, 29

Owlchemy Labs

Currently gaming is highest grossing sub-sector of the entertainment industry. From hardware and software sales to online multiplayer services to large gaming expos around the world, video games are no doubt a popular part of today’s world. And, as an ever-changing industry that is still fairly new (compared to other industries), one of gaming’s latest trends is virtual reality. It seems as if every major company involved in the industry is attempting to make their mark in VR, from Sony to HTC to the Valve Corporation. And at least one young Austin resident has his finger on the pulse and is making a name for himself. Alex Schwartz is CEO of Owlchemy Labs, a video game development company specializing in virtual reality video games. They achieved critical acclaim and notoriety with their first game Job Simulator. According to Forbes, Schwartz’s team is currently working on Rick and Morty VR, a virtual reality game based on the popular animated sitcom.

Miguel Garza, 29

Siete Family Foods

Miguel’s story is extremely personal and inspiring. Due to an autoimmune disease, Miguel’s sister is not able to eat grain, which prevented the family from eating any tortillas. Because of this, she was determined to find a way to devise a tasty tortilla that was grain-free. After some testing, Miguel’s sister, Veronica, found the perfect combination in an almond flour tortilla. After realizing the potential, Miguel began to market the new tortilla to a variety of grocery stores. Miguel is now the CEO of Siete Family Foods. Currently, the company makes over $1 million in revenue and has plans to roll out a line of grain-free tortilla chips at Whole Foods stores early this year.

Dominik Stein, 29

VERTS Mediterranean Grill

Not an Austin native, but a current resident, Dominik is the cofounder of VERTS Mediterranean Grill, which specializes in bringing European dishes to the United States. Originally from Germany, Dominik came to Austin to study abroad. After some time in America, he began to miss his favorite native dishes. And from that simple bit of homesickness, he built an incredibly successful restaurant chain. VERTS currently has 36 chains nationwide and a whopping $36 million in investment capital.

Six of America’s finest and most unique entrepreneurs of the year all stem from the same area. While Austin is no stranger to successful citizens, the fact that it is home to so many rising stars is proof alone that the city has the ability to produce talented individuals who are setting the bar for their respective industries.

For the full “30 Under 30” list, click here.

WAYUP: THE FUTURE OF JOB SEARCHING

By Alexi Harding

Searching for a job can be not only intimidating, but difficult. And while job hunting is a challenge at any age, it tends to be a bit worse right out of college. As a young, inexperienced “professional” you are, in most cases, armed only with your education and determination. Admittedly, that can take you far, but the search is still competitive. One startup is looking to change that and help the youth of today find the best possible job.

What is WayUp?

WayUp is an online job listing aggregator. It compiles a list of positions from a variety of businesses and matches them to users based on his or her individual education and experience.

Now, you may be thinking: “Big deal. LinkedIn and plenty of other applications already offer services similar to this.”

 And WayUp and its executives know this. However, they believe that their platform is in a different category. WayUp does not cater to all demographics of job seekers. Instead, they focus solely on college students and recent graduates. The application also heavily focuses on its mobile application. In a recent report from TechCrunch, Liz Wessel, the company’s co-founder and CEO, stated her thoughts on the company’s competition, saying, “LinkedIn is built for a much older generation.”

In a world that is constantly becoming more mobile, it is perfectly reasonable to believe that a company whose focus is on the future will emerge victorious. In fact, one of WayUp’s partners, Karan Mehandru, thinks as much.

“Wayup has the potential to surpass LinkedIn over time as the dominant next generation platform that becomes the online resume for the next generation and connects employers with candidates to get them hired,” Mehandru told TechCrunch.

If you aren’t sold on the company, its investors sure are. The same TechCrunch article claims that the company has earned a whopping $18.5 million in series B funding. WayUp plans on using the money to further build and develop its engineering and product teams. And some of the world’s largest companies have already used the platform to acquire new talent, including Facebook, Google and The New York Times.

Could we be looking at the next generation of job searching?

How To Scam Proof Your Charitable Donations

By Alexi Harding

The holiday season has come and gone once again, and made way for a brand new year. And with a brand new year comes the inevitable and infamous new year resolutions. If you have yet to devise a resolution for 2017, why not look into charitable donations? It is always important to give back to the community and those who are less fortunate. With every new year comes a fresh start, so start the year off right by donating. And if you are looking into becoming more charitable, or are already a veteran in the art of giving back, it is always a great idea to make sure that the charities you are giving to and representing are legitimate and not scamming you out of your money. Here are a few ways to make sure that your donations are scam-proof.

First and foremost: Don’t trust anyone. While this may sound pessimistic and mean spirited, unfortunately in this world, there are many people who are looking to cash in on the kindness of others. So never assume that any charity is legitimate. If you ever receive an unsolicited phone call from someone claiming to work for a charity, and they thank you for your pledge to donate, do not trust it. They are more than likely trying to trick you into giving money.

Research, research, research: On the topic of legitimacy, one of the easiest ways to ensure that a charity is actually doing what they claim is to do some quick research. The advent of the Internet and Google has made fact checking incredibly easy. Make sure to look up the charity that you are giving to. There are a numerous tools at your disposal that can be used to verify a charity’s legitimacy. Two of the more popular sites are Charity Watch and Charity Navigator. Both sites include lists of respectable charities and even breakdown how your donations are being used.

Secure Your Personal Information: While charities do typically require some basic amount of information from you, there is a limit to what they need to know. For example, your name and contact information are reasonable requests that a charity would need to know, but more personal information, such as your social security number are off limits. There is no situation where a charity would need information such as that. Also, make sure to get information from them. Ask questions. Find out how they are using your money or when and how they will provide you with a statement so that you may deduct the donation from your tax return.

File it away: Record keeping when donating to charities is a crucial part to charitable contributions. When donating, it is typically good practice to use a credit card because it will automatically create a paper trail of the amount spent. If you can’t use a credit card, at least keep a physical note of it, whether digitally in your phone or written down on paper. Never assume that you can remember each and every donation. Also, if you make a contribution more than $250, you will typically need a letter from the charity in order to verify their organization’s tax-exempt status.

And scams are not only prevalent in the organized charity industry; there are hundreds of thousands of people begging for money on the streets who don’t really need it. Take for example, Simon Wright, a beggar on the streets of London. According to a report from the Daily Mail, Wright made a whopping £300 a day by pretending to be hungry and homeless, even going so far as to use a dog to get even more sympathy from passersby. Scams and scammers are everywhere, so be wary.

Donating and charitable contributions are an important aspect of human society. Although the holiday season is past us, that does not mean that we need to stop helping one another. Hopefully these handy tips will allow you to be generous and, most importantly, safe.

Alexi Harding Featured in Entrepreneur Magazine

Award-winning financial services executive and Senior Managing Director of the Opes Group, Alexi Harding was recently published in Entrepreneur.

The article, titled “Why Startups Should Look for Opportunity Between the Coasts,” covers the fascinating story of how tech startups should, and are beginning to, look at areas other than Silicon Valley in order to fund their entrepreneurial endeavors.

Here is an excerpt from the article:
“Tech entrepreneurs are the cool kids on the block. Whereas young people once aspired to be rockstars or astronauts, today they dream of being startup founders, flush with venture capital and working out of sleek, open-plan offices in San Francisco’s trendy SoMA district or New York’s bustling Flatiron neighborhood.”

To read the full article, make sure to click here!

Charles F. Feeney: The James Bond of Philanthropy

By Alexi Harding

When one thinks of charitable contributions to society and philanthropic work, the first thing to come to mind is typically not James Bond. The debonaire spy is well known for his high-speed car chases, shootouts, and successful attempts at thwarting villains determined to take over the world, not necessarily for his donations to charity. However, one real-world billionaire has been compared to the famous spy for that very reason.

Charles F. Feeney, 85, is a man of simple taste. According to a report from The New York Times, Feeney never lived a lavish lifestyle. He would eat burgers at his local pub in New York, fly coach and even carry around any and all reading materials in a plastic bag. And while these all sound like fairly normal things that any average citizen would do, Charles is no average citizen. Once having a net worth of just over $8 billion, Feeney was a wealthy investor and businessman. Dedicated to “giving while living”, Feeney set out to donate the entirety of his fortune to charitable organizations and philanthropic efforts by the end of 2016, which he ultimately completed.

In order to achieve that lofty goal, Feeney founded Atlantic Philanthropies in 1982. Atlantic Philanthropies is a private group of foundations that donates to a variety of charities and philanthropic organizations around the world from South Africa to Vietnam. In its efforts, the organization has funded direct medical care, immigration reform, education and criminal justice advocacy, to name a few.

Feeney made most of his fortune through a company he co-founded that sold a variety of items to travelers at duty-free shops. As previously mentioned, he is also an incredibly shrewd investor, particularly in the field of tech startups, having invested early in companies such as Facebook and Alibaba.

While Feeney’s incredible generosity is amazing on its own merit, what makes him even more remarkable is the fact that he has no interest in self-aggrandizement.  He donated a significant fortune of $8 billion and yet almost all of Feeney’s work has been done privately without media attention. This extreme secrecy and lack of publicity lead Forbes  to unofficially dub him the “James Bond of philanthropy.” In fact, Feeney had such a focus on keeping his work secret that, for quite some time, Atlantic had a stipulation requiring that all organizations receiving their support not mention their involvement.

In the aforementioned Forbes article, Feeney was quoted as saying, “People used to ask me how I got my jollies, and I guess I’m happy when what I’m doing is helping people and unhappy when what I’m doing isn’t helping people.” Now, with a personal net worth somewhere around $2 million, Feeney lives in a rented apartment in San Francisco with his wife, Helga.
Charles F. Feeney’s incredibly unselfish attitude and generosity is sorely needed in the world. And while many wealthy people do give to charity extensively, very few come close to the philanthropic strategy that has earned Feeney the title, “the James Bond of philanthropy.” All of us, billionaire or not, should equally strive towards the betterment of the human experience.

What is MealConnect?

According to Feeding America, over $200 billion worth of food is wasted every year in America alone, which equates to 72 billion pounds of food. That is a lot of food that goes uneaten. Obviously, since the dawn of man, our society has faced the issue of homelessness and starvation. When there are hundreds of thousands of homeless people in America, and billions of uneaten food thrown out, there is clearly something wrong. That is why Feeding America is looking to stop this unnecessary waste with an application.

Feeding America has developed an application called MealConnect to combat the issue of wasted food in America. In essence, the application is designed to streamline, or even create, a communication between food banks and businesses. The hope is that, in creating this dialogue, businesses and farms will be able to cut down heavily on food waste, and potentially end hunger in the US by 2025. Businesses that could use the platform include grocery stores, butcher shops, farmer’s markets and even large food stores.

The platform uses a specially designed algorithm to match up food banks with food stores or businesses that have food to give away. The beauty of the application is that it is a web-based app, meaning any company, farm or food bank with an Internet connection can access it. It can also be used on mobile devices, making the process even easier.

Through MealConnect, users can get real-time information and statistics on when and where organizations are able to give food away. Feeding America even offers classes on how to use the program to its fullest potential. This is an ingenious way for food banks and food donors to get on the same page and work towards a better future.

So far, MealConnect has helped serve millions around the country. According to the official website, MealConnect has recovered 333 million pounds of food, served 278 million meals and has helped organize 737 thousand pickups.

The project was funded by Google and General Mills in order to give the platform a wider reach across the nation. Hopefully this program will get the reach it requires and find its way into the hands of every food-related business that has an excess of supplies to donate, which they most certainly will.

At the Opes Group, we pride ourselves in not only making long lasting, successful connections, but also in making efficient and organized transactions; so when we see other companies whose sole focus is organizing and connecting people together for the betterment of the world, we are always very excited.

This is just another example of how technology is helping to create a better world.

Jeff Bezos Wants “Short-Term” Philanthropic Ideas

Jeff Bezos, founder and CEO of Amazon, is one of the world’s wealthiest people. With a net worth of approximately $84 billion, Jeff Bezos is certainly a man with a lot of money to give. And, although he has given a fair amount of money to charitable causes, he still feels that he could do more. That is why, just recently, he took to social media in an attempt to crowdsource a solution to his philanthropic problem.

Last week, Jeff Bezos published a tweet asking all of his 200,000+ followers for advice and strategies on how to concentrate his philanthropic efforts so that they may have an immediate, or “short-term,” impact. He mentioned that he believes that he has invested in philanthropic endeavors through his multiple companies, Amazon, Blue Origin and The Washington Post, which contribute to society in “their own ways.”

But Bezos, who has been scolded in the past by news outlets for not being as philanthropic as Bill Gates, Mark Zuckerberg or Warren Buffett, is looking to invest in opportunities that will improve the lives of others instantly. His request for suggestions on Twitter earned more than 40 thousand responses. Suggestions ranged everywhere from donating to libraries to funding wildlife preservation. Bezos’ request was so popular that he was able to gain the attention of celebrities. World-famous singer Madonna had replied to Bezos by asking that they both take a trip to Detroit, her home city, and fund various projects and institutions there in order to improve the hurting city.

I feel that we need to take a step back and truly appreciate what is happening here. We live in a day and age where one of the world’s richest and most hard-to-access people is asking hundreds of thousands of strangers for advice on how to better our world. And through the power of social media, average, everyday citizens can respond to him. This would not have been possible 15 years ago. While many have condemned social media for creating a generation of narcissistic, uninterested and unmotivated teens, we sometimes fail to remember how much good it can bring.

Whether or not Bezos actually takes any of the suggestions and moves forward with them remains to be seen, but the fact that this is even possible is worth more than some of us realize. Instead of complaining about the negatives of the age in which we live, let us practice gratitude (see my earlier post on this topic) and appreciate the advances that come with time.

What is Blue Apron?

We all enjoy a great, home-cooked meal, right? It’s better for you and usually tastes far better than anything that a fast food chain could provide. Unfortunately, most of us have incredibly busy schedules that don’t grant us the luxury of enough time to go to the grocery store, find the necessary ingredients, then look up a recipe and prepare the meal. But a new company is looking to change that; and so far, they are a booming success.

Blue Apron, founded in 2012, is a new method of getting a delicious and healthy home cooked meal. In essence, subscribers pay for the type of service they prefer, either a two person plan or a family plan, and Blue Apron will send the supplies for your meals. The plans typically send food for the week, but you can skip weeks or days and tailor your subscription to your liking. A two person plan runs for $59.94 while a family plan costs $71.92; compare that to the average cost of a grocery store run for a two person family ($90) and a four person family ($131).

The company also offers tips on how to properly chop or prepare each ingredient and a recipe with video tutorials. The entire process takes place online, and is incredibly convenient. With Blue Apron’s suggested meals, and your food preferences, not only will you get new and exciting meals to prepare, you will also no longer have to worry about what you will eat for the week.

Blue Apron pushes a heavy focus on healthy eating and cutting out food waste. The company prides itself on cutting out the middleman and delivering fresh farm produce and ingredients straight to its consumers, including non-GMO ingredients, all-natural meat and sustainable seafood.

To many, the company sounds like Netflix for food, and in many ways, it is. It should come as no surprise then that the company, also much like Netflix, has taken off. Since its 2012 debut, Blue Apron has shipped 159 million meals and has a reported revenue of $795 million. And now the company plans on going public. According to a report from Business Insider, the company is expecting to earn $15 to $17 per share in its initial public offering (IPO), which would place the company at a $3 billion valuation.

That same article also discusses why the service has been so successful. Blue Apron offers farm-fresh ingredients at cost-effective pricing. Others who have used the service have lauded it for its ability to simplify the cooking process. A review of the service from MoneySavingMom.com stated that one of Blue Apron’s best features was its ability to cut down on trips to the grocery store and time planning out meals. For those of us who would love a home cooked meal but don’t have the time to acquire the necessary ingredients or look up recipes, Blue Apron is a fantastic alternative. And those who constantly eat out at fast food or expensive restaurant can save money and eat healthier with Blue Apron.

Blue Apron’s flexibility, ease-of-use, wide variety and cost-effective pricing makes it an incredibly enticing service. And with a world that is slowly moving towards on-demand services, it is very possible for Blue Apron to completely disrupt the way that humans obtain and prepare their meals.

The Impact of Technology on Our Lives

It is 2017. The world is an incredibly different place than what it was 2,017 years ago. In fact, it’s an incredibly different place than it was even 15 years ago. Technology has invaded every waking aspect of our culture. From social media to autonomous cars to artificial intelligence, technology is everywhere; it has even managed to find its way into our businesses, such as the creation of a new fintech industry.

When we were younger, most of us watched a show called The Jetsons. The Hanna-Barbera classic told the everyday adventures of the Jetsons, an average family living in a futuristic world. The show included flying cars, video communication watches and robotic maids. The show debuted in 1962, and for decades, we, as a society, dreamed of having those devices in our reality. And while flying cars are still a way off, several of the other gadgets and gizmos are a reality today.

For example, we now have watches that can not only tell time, but also make phone calls, track our fitness and heart rate, receive and send text messages, play music and even give us directions. And we have robotic maids that clean our houses in the form of Roombas.

However, we now have even more technological advancements than we could have ever dreamed. For example, drone technology has boomed in the last few years. Companies such as Parrot, DJI and Yuneec are all creating remote-controlled flying devices that can be utilized for both practical and personal needs. Drones are being used in construction for land surveying and in Hollywood for quick and cheap aerial shots. Some companies, such as Amazon, are looking into drone delivery services, which would allow same-day delivery for online purchases by drone.

Automated vehicles are another, very real part of our society today. Almost every major vehicle manufacturer in the world is adopting some sort of self-driving vehicle technology and looking to implement it in the near future. Even companies such as Apple and Google that have nothing to do with the automotive industry are looking into self-driving cars. Ride-sharing services, such as Uber, are of course also interested in self-driving cars. We now live in a world where it is very likely that the next car you purchase will have the ability to drive itself.

Robotics have also made vast improvements through the years. Today, we have robots that assist in product manufacturing, help our soldiers avoid direct contact with dangerous situations and assist astronauts in space exploration. But, up until recently, these were all robots that were nothing more than large pieces of machinery. In China, however, scientists have managed to blend reality with the world of robotics by creating the most lifelike robot in human history. At the University of Science and Technology of China, researcher Chen Xiaoping and his colleagues created a truly fascinating creation. Dubbed Jia Jia, the robot is capable of recognizing human speech and responding, realistic eye movement and lip synchronization, and can even show expressions.

Whether or not we need a robot that can perform those actions is up for debate, but it is, without a doubt, a testament to how far we’ve come as a society. Technology is literally changing our world everyday. We are now all interconnected, we can watch content whenever we want, know where someone is at all times, and much, much more. And while not all aspects of technology have been well-received (texting while driving has lead to millions of car accidents), it is impossible to deny that it has changed our lives for the better. And when you consider the fact that roughly $42.5 billion was spent in venture-backed tech companies in 2015, it is pretty safe to say that the technology sector isn’t leaving us anytime soon.

Saving For Retirement

Saving For Retirement

Hard work is in the DNA of every human being. Since the dawn of time, our species has never feared a little bit of hard work, and for centuries, there was never really a time where one could relax in old age. Now, however, living in a different period, with completely different circumstances, we are able to work hard for a few years of our lives, and peacefully go into retirement. It is a luxury that our ancestors could not afford. But what exactly goes into retirement? How and when do you even begin? Hopefully, this article will help answer those questions.

When Should You Start Saving?

Now! A common misconception of retirement is that one must begin saving later in life. This couldn’t be further from the truth. Begin saving now! According to an article from Merrilledge.com, a 25-year-old who invests $25 a month, through the power of interest and time, will have an incredible amount of assets by the age of 65. If you wait too late to save, you may not have enough money to be able to rely on in your later years.

Take Advantage of Your 401(k)

You’ve heard the term before dozens of times, but you aren’t exactly sure what it is. 401(k). You know that you should know about it, and yet you don’t really take the time to do some research. Do yourself a favor and look into it! Put simply, a 401(k) is a retirement savings plan that is sponsored by an employer. A certain amount of money from your paycheck is taken and put inside of the account. If your employer offers a 401(k), take advantage of it! You may benefit not only from tax-deferred compound interest but also employer matching payments. If you are unsure, definitely conduct research (or call the Opes Group), and learn the intricacies of its inner workings so that you may be financially stable in your retirement.

Invest in an IRA

This is another term that gets thrown around a lot that can be just as confusing as a 401(k). IRAs, also known as Individual Retirement Accounts, are incredibly helpful when you are looking to hang up your hat and enjoy life after work. While the world of IRAs can be quite complicated, there are two basic versions: standard IRAs and Roth IRAs. The former allows your contributions to the account to be tax deductible, and once you are retired, the money you withdraw can then be taxed; the latter does not allow for any tax deductions for contributions, however, any money that is withdrawn from the account during retirement is completely tax free. While there are some minor details regarding both types of accounts that I did not mention, that is the basic gist. It is really up to you how you would like to utilize the account. Where can you go to get one? Banks and brokerages typically offer them.

Saving for retirement is not always easy, and it can be confusing. But starting early, thoroughly looking at all of your options, and asking for advice, help and information are the best ways to get started. Although it may not seem worth it now, saving earlier pays off in the end. Good luck and call us at Opes if you need help!

Companies That Bounced Back

Companies That Bounced Back

We’ve all heard of startups that never make it. In fact, most startups don’t make it; a whopping 90% of them fail. But what is even more shocking is the number of businesses that became successful, multi-million (sometimes even billion) dollar companies after experiencing crises that could have crippled them.These companies were able to come back from the brink of disaster and rise to the top, once again.

Apple

Though it may sound impossible, the most valuable company on Earth was once not so highly regarded. In 1997, the company was on the verge of going bankrupt. So, what was it that saved the failing computer company? It’s biggest rival: Microsoft. At the time, Microsoft was gaining a reputation of becoming something of a monopoly. Rumors suggest that Microsoft made a hefty, $150 million investment in Apple in order to break away from the negative press. Little did Microsoft know they were helping to create a behemoth that even they could not defeat. Steve Jobs was brought back to Apple shortly before the investment, and, working with Jony Ive, they began working on the iPod, which helped Apple come back stronger than ever. Later, they would release the iPhone, and become the most valuable company in the world, with a worth of $750 billion.

Marvel Entertainment

Chances are, if you’ve been to the movies in the last 10 years, you know what Marvel Entertainment is. Originally a comic book company, after several decades of churning out popular comic book characters such as Spider-Man, Iron Man, Hulk, and Captain America, Marvel fell on hard times in the late 90s, going as far as filing for bankruptcy. In order to stay afloat, the publisher sold off the licensing rights to their characters to several different movie studios. This ultimately helped the company come back. Eventually, Marvel struck a deal with Paramount Studios to produce a series of films based on the characters that they still owned the rights to, including Captain America, Thor, Iron Man and Hulk. This led to the creation of the Marvel Cinematic Universe,15 films and counting, a stunning $11 billion worldwide megamachine and the return of Robert Downey Jr….another comeback story in and of himself.

Xerox

Similar to the Jacuzzi and Chapstick, Xerox became so popular for manufacturing photocopiers that the name became synonymous with the product, even if the copier wasn’t Xerox branded. Unfortunately, with the rise of the digital age, the company’s popularity declined and it almost went bankrupt. After the appointment of one Anne Mulcahy to CEO, the company saw a fast turnaround. It did not come easy, however, as Mulcahy was forced to layoff thousands of employees in the process. She also invested heavily into the R&D department of the company, as well as branched out and diversify the company’s portfolio of products.

There are dozens of other companies that have had similar fates, and I may feature them in a second article. However, these examples alone should show you that there is no shame in failing. It is a part of life and a part of the growth curve that can sometimes allow on to achieve greater heights than might have been achieved without the fork in the road.

Amazon Go: The Future of Retail?

Amazon Go: The Future of Retail?

There was a time when Amazon was simply an online book store. However, as the years passed, the online retailer grew and broadened its horizons and eventually started selling a plethora of items beyond books. Then Amazon took an interest in technology, and it began to produce electronic devices: Amazon Kindle e-readers, Amazon FireTV portable digital media players, and even a failed smartphone. Currently, Amazon is the fourth most valuable public company in the world.

You may be thinking to yourself that Amazon has clearly come a long way from its humble beginnings, and that it has found its niche, and will stick to it, right? Wrong!

The company is notorious for pushing ahead with innovative ideas, and their latest one is certainly shaping up to be a game-changer. Amazon’s latest venture is called Amazon Go. The premise is simple, but the complexity behind it is astounding.

Have you ever had to wait in a terribly long line at the grocery store behind customers with tons of items when you only have a few? The process of grocery shopping can be irritating. This is exactly the problem that Amazon Go is looking to solve. With Amazon Go, customers can simply walk into the store, grab whatever items they desire, and walk out.

According to Amazon Go’s website, the store offers a bevy of food choices. Customers can stop in for ready-to-eat breakfast, lunch, dinner and snacks, which are prepared by the on-site staff of chefs. The store also seems to be blending the best of both local groceries and big-budget franchises by including brand name items like milk and bread, with smaller, locally produced items like sweets and cheeses.The store will even offer what are called “Amazon Meal Kits,” which include the necessary ingredients for a meal for two.

Sounds too good to be true? There is more to it, but that is the basic gist.

But how does it truly work?

That’s where the beauty of technology comes into play. Essentially, customers must have an Amazon account and the Amazon Go application on their smartphone in order to enter the store. Once inside the store, customers pick up whatever items they want from the shelves. Stock counts are kept entirely electronically. The store uses a mix of computer vision, sensor fusion and deep learning in order to keep track of how many items are on the shelf. This same technology also learns who is grabbing which item, and once the customer leaves the store, their Amazon account is charged accordingly.

"The store uses a mix of computer vision, sensor fusion and deep learning in order to keep track of how many items are on the shelf. "

It sounds simple enough, but in reality, it raises some questions.

Firstly, how reliable is this technology? One of the greatest concerns over this entire project is billing; more specifically, the accuracy of billing. For example, if two customers come in to purchase the same item, taking the item off of the shelf in rapid succession, is the technology embedded in the shelves smart and fast enough to differentiate between those two customers? Or will it simply charge one customer twice? Obviously, these are situations that Amazon has thought of, and is hopefully working to ensure won’t happen.

Secondly, and much more importantly, what are the economic ramifications of a store like Amazon Go? The entire idea behind the store is to eliminate the human element of cashiers. Customers can simply walk in, take their items, and leave without the hassle of waiting for cashiers to ring customers out. Those cashier positions are important for millions of American citizens to make ends meet.

Could an influx of Amazon Go stores hurt the economy by cutting jobs?

Currently, Amazon is planning for one single opening in Washington, just to demonstrate the technology as a prototype. If Amazon Go is successful, and the company decides to go nationwide with its stores, many other retailers could follow suit. Obviously a major incentive behind this concept is not only to create a quick and painless user experience, but also to save money on labor for retailers. If other retail juggernauts, like Walmart or Target, do establish their own version of Amazon Go, it could decimate cashier jobs nationwide.

One could make the argument that, even with all of the store’s cutting-edge technology, it will still rely on human beings to restock its shelves, and this will create more jobs, but that seems doubtful. Retail stores only require a nominal number of employees to restock shelves, so it seems unlikely that they will hire additional employees for that purpose.

For those who think this couldn’t possibly be a viable form of retail, industry experts believe that the store has potential to take over. In an article from GeekWire, CEO of Clarus Commerce, Tom Caporaso, gave his thoughts on the store, stating, “If [Amazon Go] can be achieved in some form or fashion, a ‘Just Walk Out’ retail environment would offer consumers a better shopping experience, with greater speed and convenience, which is sure to build loyalty, which is every retailer’s goal.”

Customers are always looking for new ways to do their shopping as effortlessly as possible. That’s what made online shopping so popular in the first place. But can Amazon, one of the world’s largest online retailers, make the brick-and-mortar store as convenient as e-commerce? We’re probably more than a few years off from a completely cashier-less shopping experience, but Amazon Go is certainly paving the way.
The first Amazon Go store is set to open sometime later this year. Once the store opens, I will keep you posted on any further developments.

Who is Elon Musk?

Who is Elon Musk?


Every now and then, mankind is graced with an innovator who seeks to shape the future of our society and our world. Leonardo Da Vinci, Benjamin Franklin, Thomas Edison, Steve Jobs, Bill Gates and many more have gone down in the annals of history as people who have changed our daily lives. But what of today’s thought leaders and entrepreneurs?

The first person that comes to mind would have to be Elon Musk. But, who exactly is he?

Born in Pretoria, South Africa, Elon Musk showed an interest in programming and technology at a very young age. At 17 years old, he traveled to Canada and enrolled at Queen’s University, and then ventured into Pennsylvania to attend the University of Pennsylvania, where he earned two bachelor’s degrees, one in economics, and the other in physics.

Shortly after graduating, Musk joined the Internet boom by forming Zip2 Corporation. Afterwards, he would go on to create several new businesses, with moderate success. However, Musk’s most renowned efforts are SpaceX and Tesla Motors, founded in 2002 and 2003 respectively. SpaceX was created for the sole purpose of making commercial spaceflight a reality, a tremendously innovative and ambitious undertaking; Tesla Motors, on the other hand, looks to bring cost-effective, technologically advanced, electric cars to a larger audience.

Tesla’s first model, the Tesla Roadster, released in 2008, proved that electric cars could be stylish and fast. Four years later, Tesla released the Model S, possibly their biggest hit, with over 100,000 sales. While that may not seem like many, for an electric car from a relatively unknown manufacturer, it is incredible.

Musk saw even greater success this year, after Tesla Motors (now simply Tesla) had beaten General Motors to become America’s most valuable vehicle manufacturer. This is a landmark moment for a participant in the auto industry.

Despite his successful businesses and immense wealth (he is valued at $15 billion) we must not forget that Musk, like any entrepreneur, has had setbacks throughout his illustrious career. Remember Zip2? The first company that he started? He was removed as CEO. Musk was also an original founder of PayPal, which was considered one of the worst business ideas at the time, from which he was also ousted. His recent endeavors have seen some hiccups as well. SpaceX’s first launch ended in an explosion rather than a successful landing; as for Tesla, certain Model S cars experienced spontaneous combustion. Both Tesla and SpaceX were on the verge of bankruptcy in 2008.


Mr. Musk has clearly bounced back from these mistakes to become one of the most talked about and interesting people who is attempting to move the world in the direction of sustainable energy. He is still, however, a human being. And human beings make mistakes. Hopefully, for any of you future Elon Musks reading this, you will take Elon’s story and use it to not only realize your own unfathomable dreams, but to also not fear failure. It is a necessary part of growth.

Celebrity Entrepreneurs

When we think of celebrities we tend to envision vast sums of money, lavish lifestyles, some form of artistic or athletic talent, and not much else. While we love watching celebrities, from actors to athletes, as a society, we do not normally think of them as savvy businessmen and women. However, quite a few of today’s superstars have an entrepreneurial side. Here are a few of the most successful.



Jessica Alba

An actress who rose to fame after the television show Dark Angel, Jessica Alba went on to have a series of popular roles in film, including Sin City, Honey and Fantastic Four. After earning her place among Hollywood’s brightest stars, this mother of two’s entrepreneurial side did not emerge until she had suffered an allergic reaction to laundry detergent. This began Alba’s crusade for non-toxic household products across America. Despite her star power, she did not find immediate success. According to Alba herself, the idea for a non-toxic household product company took some time to catch on. “It took three years of people not getting it. It was too big of an idea,” said Alba during an interview at an SXSW festival. However, once the idea caught on, it took off! Alba’s Honest Company is valued at $1.7 billion; there are even rumors that she is in talks with Unilever—owners of Dove cleaning products, Hellmann’s food products, and several other brands—to sell Honest Company for an estimated $1 billion.



Sofia Vergara

Popularly known for her role on ABC’s hit sitcom Modern Family, Sofia Vergara is a force to be reckoned with. According to a report from Inc.com, Vergara made an estimated $37 million from 2013 to 2014. While that is impressive enough, Ms. Vergara did not rest on her laurels. With the help of music promoter Luis Balaguer, Sofia Vergara founded Latin World Entertainment. While the company name may not have reached the public, it is certainly a major player in the entertainment industry. According to a report from ABC, Latin World Entertainment made an estimated $27 million in revenue in 2011. The company specializes in curating Hispanic talent for the entertainment industry, while also offering producers insight into appealing to a Hispanic audience, among other things.



Dr. Dre

Known as one of the most influential artists in the hip-hop genre, Dr. Dre has been making music for over three decades. He is credited with helping popularize “gangsta rap” and has jumpstarted the careers of multiple hip-hop artists, such as Eminem, 50 Cent and Kendrick Lamar. However, he made headlines a few years back for his business-savvy entrepreneurial endeavors. Dre, along with IGA chairman Jimmy Iovine, founded Beats By Dre in 2006. The company started out making large, high-quality headphones with a heavy focus on flashy looks and deep, pounding bass. Dre and Iovine, using their connections in the music industry, managed to get several high-profile artists to use and promote the headphones, causing the company’s popularity to skyrocket. Later, the company diversified its portfolio of products by making high-quality, portable speakers. Eventually, the company was purchased by Apple Inc. in 2014 for a whopping $3.2 billion. This deal made headlines as it pushed Dre’s net worth to an estimated $830 million.



These are not the only celebrities that have managed to use their business savvy to forge successful companies. However, not every celebrity can make it big in entertainment and business. Celebrities are human beings like everyone else, and sometimes, they can fail. Take, for example, the Kardashians. You may be surprised given the family’s multiple successful ventures, including a clothing and makeup line and even a mobile video game that pulled in a whopping $100 million. However, they’ve made some serious blunders, namely their attempt at entering the credit card industry. Dubbed the Kardashian Kard, the entrepreneurial endeavor between the three eldest sisters (Kim, Khloe and Kourtney) didn’t even last one month before being canceled. According to a report from CNN, the Kardashian Kard came under fire from a variety of people, namely Connecticut Attorney General Richard Blumenthal. Blumenthal cited the card as, “troubling because of its high fees combined with its appeal to financially unsophisticated young adult Kardashian fans.”


You do not have to be a celebrity to become successful. Success comes from hard work and determination. Sometimes your great ideas will blossom into a fantastic opportunity. Other times, they will fail. Regardless, never give up and always move forward.

Surprising Celebrity Charitable Efforts

It is no surprise that celebrities give money to charity; they do it all the time, either for tax purposes, good publicity or because they are genuinely nice people. That being said, there are celebrities who are involved in a number of unusual charities or philanthropic efforts. This isn’t to say that they are focusing on unimportant issues or that they are not doing a great thing. It is just fascinating, and a bit surprising, to see what some celebrities are dedicating thaeir time to.



Nicki Minaj’s Tuition Charity

The first example comes from famous rapper/singer Nicki Minaj. Known for her creative lyrics, interesting fashion sense and brash attitude, Nicki Minaj also has a softer side. If you were to ask any college student what their number one concern was, they would probably answer: “student loans.” And Nicki, being a tremendous lover of her fans, wants to help some college students out. Just recently, after speaking directly to some of her fans through Twitter, Minaj officially declared that her charity for college tuitions and payments was being finalized, and that fans would be able to apply soon. And although the charity is not officially open for business, that isn’t stopping Ms. Minaj  from making some lucky fans’ dreams come true now. Also through Twitter, Minaj shared a screenshot of a series of students’ names and their paid tuitions, courtesy of one Nicki Minaj. Once this charity becomes a reality, I can only imagine that Nicki Minaj is going to develop an even larger fanbase.



Matt Damon’s Water for Women

Before I delve into this example, I would first like to clarify that I am in no way taking away or belittling the importance of what these celebrities are doing. I am merely observing charities that are unique. That being said, Matt Damon, star of such films as The Martian, The Bourne Series, and Good Will Hunting, has been hard at work ensuring that the women of the world have clean drinking water. According to a report from The Huffington Post, Matt Damon’s organization has been doing this for 25 years. And a few months ago, Damon’s organization collaborated with Stella Artois for the “Buy a Lady a Drink” campaign. The campaign is aimed at selling hand-designed cups. For every cup sold, one woman is given clean water for five years. The reason Damon has focused on women is due to the fact that, according to the Huffington Post, women in developing nations walk a reported combined 125 miles per day to retrieve water. While it may sound like a strange choice at first, it is certainly a valiant effort on Damon’s part.




Here are two celebrities that are utilizing their fame, fortune and time to do something better for the world. There is a certain beauty behind the fact that these charities are so unique. Hopefully, this inspires you to go out and fight for causes that you believe are not only important, but a bit different as well. At Opes we have several ideas for unique charities. Please contact us if you would like to brainstorm.