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can then be taxed; the latter does not allow for any tax deductions for contributions, however, any money that is withdrawn from the account during retirement is completely tax free.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.