Mountain Views News          Saturday, March 2, 2013

15

BUSINESS NEWS & TRENDS

 Mountain Views News Saturday, March 2, 2013 

BUSINESS TODAY

The latest on Business News, Trends and Techniques


DOLLARS AND ENTS

By Carl Davis, CIMA


MAKING THE MOST OF YOUR BONUS OR RAISE

If you’re receiving a raise or a bonus this year, you may feel a little bit wealthier 
when you see your suddenly inflated bank account or paycheck. But it’s no secret 
that this money can disappear quickly.

Resolve to take extra care with your bonus or raise this year and make sure to 
get the most of it. This requires you to think beyond the new flat screen TV or summer vacation, and 
consider how the extra money could help you in the long run. 

The extra tax hit

A boost in your wages this year won’t mean quite as much as it did in the past due to the rise in 
payroll taxes. Any raise or bonus you receive is subject to payroll taxes, which increased for all wage 
earners and those who are self-employed in 2013. The employee’s share of the Social Security payroll 
tax has reverted to 6.2 percent for 2013 after being reduced to 4.2 percent in the two previous years. 
That means you’ll have $20 less in take home pay for every $1,000 you earn. The tax applies to the 
first $113,700 of income earned in 2013. In short, this tax increase may counteract a boost to your 
paycheck to some extent, depending on your circumstance.

For those at higher income levels, additional taxes may be incurred:

• The addition Medicare surtax of 0.9 percent. This applies to wage or self-employment income 
over $200,000 for single tax filers and above $250,000 for married couples filing a joint return.
• A higher federal income tax rate of 39.6 percent applies for taxable incomes above $400,000 
for single taxpayers and above $450,000 for married couples filing jointly. This is higher than the 35 
percent rate that applied in prior years.


Virtually all wage earners will feel the extra tax hit in 2013.

Maximizing the impact

Once you’ve calculated the “take-home” value of your bonus or raise, it comes down to a matter of 
spending the money now, paying down existing debt, saving and investing it, or a combination of the 
three.

After receiving a bonus check, it’s often tempting to make a purchase of something that’s long been on 
your wish list. Before you do, think about whether that money could have more impact in other ways.

If you have significant debts, particularly high interest credit cards or other loans, you may want to 
use some of the extra cash to pay down those loans and dramatically reduce future interest costs. 
The faster you can eliminate debt, the more money you will have left from your paycheck for other 
purposes.

Alternatively, you can apply some of the extra money to help achieve your key financial goals. These 
can include:

• Having sufficient emergency cash reserves in place (you should have enough to cover at least 
three to six months of expenses).

• Investing more money for long-term goals like retirement or your childrens’ education

• Increasing the level of insurance coverage you have in place to prepare for the unexpected, 
such as death, disability or medical needs.

Getting more from your raise

If you’ve received your annual salary increase, the change to your bottom line is more gradual, but 
it also means you can take steps to steadily improve your long-term financial outlook. You could 
consider:

• boosting pre-tax deferrals into your workplace retirement savings plan;

• devoting a portion of the increase to other retirement savings, such as an IRA; or

• directing more money to other investment accounts, such as a 529 college savings plan

Every dollar invested this year has the opportunity to grow as time passes. That is a powerful way to 
multiply the impact of this year’s pay hike. 

Carl H Davis, CIMA®, CRPC® is a Financial Advisor and Vice President with Ameriprise Financial 
Services, Inc. in Los Angeles , CA He specializes in fee-based financial planning and asset management 
strategies and has been in practice for 36 years. To contact him at 310-954-2566 or via email @ 
carl.h.davis@ampf.com, or at 10880 Wilshire Blvd, Los Angeles CA 90024

Brokerage, investment and financial advisory services are made available through Ameriprise 
Financial Services, Inc. Member FINRA and SIPC. 

This communication is published in the United States for residents of California only

© 2013 Ameriprise Financial, Inc. All rights reserved.

By La Quetta M. Shamblee, MBA

DISCIPLINE MAKES THE DIFFERENCE

Discipline is the element that creates the distance 
between those who are extremely successful 
and those who are average. Being successful 
or average is determined by the standards that 
an individual sets for himself or herself. A 
person’s definition of success may be influenced 
by outside factors and cultural standards, but in 
the end, each of us must decide what we consider 
as success for our own live. Once we make that 
decision, it is important to be honest about where 
we are in relation to that definition of success. 
Discipline is the element needed to create and 
maintain momentum toward achieving success.

Achieving success is within the reach of every 
one of us with a simple three-step process. 
First and foremost, it is important to make a 
decision about what I want (set goals); Set a date 
(accountability) and commit to what I’m willing 
to do to have it (discipline). Leadership guru, 
American entrepreneur and motivational Jim 
Rohn said, We must all suffer one of two things: 
The pain of discipline or the pain of regret or 
disappointment.” The latter plays out in a person’s 
life as “If I Shoulda, Woulda, Coulda.”

Millions of us seem content to drift through life 
wishing things were different – where we live, 
what we drive, how much we weigh, and the list 
goes on. I can’t comment on the opportunities 
in other parts of the world, but in American, the 
reality is each one of us has the capacity to create 
the life that we ponder in our dreams.

Everyone expends some level of effort to get 
some enjoyment out of life, but those who aspire 
to taste the fruits of success understand “You 
reap what you sow.” They are willing to take the 
steps and do the work that results in success. The 
appearance of what looks like “overnight success” 
to an observer is the result of someone’s discipline 
day after day, year after year. Merriam-Webster 
defines discipline as a “rule or system of rules 
governing conduct or activity.” Successful people 
don’t enjoy hard work any more than the “average 
Joe.” The difference? They adopt a system of 
rules and behavior and a willingness to stick to 
it until they hit their mark, accepting the reality 
that work is involved.

If you’re ready to make real progress toward your 
success, here’s a simple step process: 1) Decide 
what you want and write it down, along with a 
date by which you plan to achieve each goal, 2) 
Based on what you know now, record at least three 
things for each item on your list that you need 
to do to accomplish it, and 3) Select at least one 
item from the list as a point of focus to establish a 
pattern of discipline for the next 10 days.

“The discipline of writing something down is the 
first step toward making it happen.”

- Lee Iacocca


SOCIAL MEDIA CAN INFLUENCE 
YOUR WORD OF MOUTH

I’ve discovered that social media marketing is more fun when you have a bigger following. 
There is something to be said when other people share your posts to their friends and 
followers. Create likeable and helpful content and people will share it for you. Who knows 
how far that reach could extend. It’s basically good old-fashioned word of mouth.

I recently helped one of my favorite local businesses, The Shabby Dog, build their “Likes” 
on Facebook from 290 to over 9,300. As we built the fans, more people started to engage 
in the posts and share them forward. Below is an example of a post that was shared by 
15 people! The average person on Facebook has between 100-300 friends. Do the math. 
The 15 people who shared the 
post extended the reach to a 
bigger audience. When your 
audience starts to do the heavy 
lifting for you, then you know 
your social media marketing is 
working for you!

To increase your word of 
mouth in social media, I believe 
you need two things:

1. You need to commit to 
providing consistent, valuable 
and likeable content 
2. You need to grow 
your Likes, Followers and 
Connections. 


About MJ: MJ and her brother 
David own HUTdogs, a creative 
services business that specializes 
in Internet Marketing strategies 
and Social Media Education for 
businesses and non-profits. “Like” 
them on Facebook for trending 
news in social media, internet 
marketing and other helpful tips, 
www.facebook.com/hutdogs.

Sign up for their upcoming classes 
and presentations at: www.hutdogs.
com/workshops/schedule 


MORE INFO THAN EVER

It turns out that under the expanded powers of search and seizure given to law enforcement agencies 
over the last 10 years or so, law enforcement officials from all levels of government now have the de 
facto right to pull information from smartphones using a variety of forensic analysis tools. The same 
phones that we carry in order to simplify our lives can be used as potent tools against us, often without 
our knowledge or our consent. In one instance an iPhone was seized from a suspect’s bedroom 
during a drug bust. In a single sweep, ICE agents were able to extract call activity, contact lists, voice 
mails and text messages, photos and videos, apps, multiple passwords and hundreds of geolocation 
points, including connections to over 200 cellphone towers and multiple wireless networks. 

Before the arrival and widespread use of smartphones law enforcement agencies were required 
to obtain a warrant in order to access information located in a target home or office. Back then 
our pockets simply weren’t large enough to carry around any significant amount of information 
about our comings and goings but today our 5 year-old emails are just a click away with the fully-
functioning computers we carry in our pockets that we call smartphones. The fact that we now carry 
this much private, sensitive information around with us means that the government is able to get this 
information, too. Intrusive cell phone searches are becoming ever easier for law enforcement officers 
to conduct. Hi-tech companies now produce portable forensics machines that can download copies 
of a smartphones’ existing, hidden, and deleted phone data, including call history, text messages, 
contacts, images, and geotags in minutes. This type of equipment, which allows the government to 
conduct quick, easy phone searches, is widely available to law enforcement agencies and interested 
commercial entities.

While the law does not sufficiently protect the private data on smartphones, technology can at least 
provide some protection. All modern smartphones can be locked with a PIN or password, which can 
slow down, or in some cases, completely thwart forensic analysis by the police (as well as a phone 
thief or a prying partner). Make sure to pick a sufficiently long password: a 4 character numeric PIN 
can be cracked in a few minutes, and the pattern-based unlock screen offered by some smartphone 
manufacturers can be bypassed if requested by law enforcement or by the government. Finally, if 
your mobile operating system offers a disk encryption option (such as with Android 4.0 and above), 
it is important to turn it on.

HOW TO GET 
A JOB YOU LOVE

(StatePoint) Taking control of your professional 
life may be easier than you think in today’s economy, 
where one-third of the American workforce is 
now comprised of freelancers. 

Experts say self-employed, independent workers 
have gone mainstream and are here to stay.

 “From computer programmers and nannies to 
opera singers and anesthesiologists, nearly every 
industry is now employing freelancers,” says 
Sara Horowitz, founder of the Freelancers Union 
and author of the new handbook, “The Freelancer’s 
Bible.” “The time’s long past for viewing 
freelancing as a euphemism for slackers or the 
unemployed.”

While freelancing does have challenges, Horowitz 
contends that with a bit of planning and research, 
a freelancer can survive and thrive in the 
new economy. 

“Even those with stable full-time jobs should 
consider the benefits of freelance work -- from 
the freedom to pursue multiple professional 
paths at once, to the ability to take time off without 
permission,” says Horowitz.

To help, Horowitz founded the Freelancer’s 
Union to empower this growing independent 
sector with solutions for affordable health care 
and retirement planning.

Whether you’re an experienced independent 
worker, or just getting started, there are several 
things that can help you become a more nimble, 
flexible and successful freelancer:

• Tell everyone: Sometimes gigs drop in your 
lap, but mostly they come from connecting and 
sharing with others. Remember that everything 
is a marketing opportunity. Don’t be shy about 
networking. People will want to help. Give them 
what they need to spread the word. Just be careful 
to be professional, not pushy. 

• Stay positive: In many ways, having multiple 
sources of income and multiple money-making 
skills is less risky than putting all your eggs in 
an employer’s basket. So don’t think of freelancing 
as volatile and risky, so much as flexible and 
opportunity-rich.

• Balance risks and rewards: Weigh how much 
time and energy you should invest in various 
projects and be open to changing the mix depending 
on the work market and your income 
needs.

• Negotiate: Negotiating a contract isn’t about 
displaying bravado. It’s about knowing your 
power relationship with the client. Get informed 
by learning your industry’s deal norms, the market’s 
needs and your market value. Not happy 
with where you stand? Get training, find markets 
with bigger budgets or gain more experiences 
until you can be rewarded with higher pay.

• Get a life: Employees get vacation time, sick 
leave, family leave, bereavement days and personal 
days. Those policies exist largely because 
workers advocated for them. Who advocates for 
you? Without a 9-5 schedule, it’s easy to forget 
you have a life outside of your work. Be sure to 
schedule breaks and vacations and budget for 
time off.

In this new economy that’s friendlier toward independent 
workers, taking control of your career 
is easier than ever. 


Modern Marriage