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Kaiser CEO Bernard Tyson Dies Unexpectedly, Here Is His Impact

In stunning news, healthcare lost a major leader today. Bernard J. Tyson, the Chairman and CEO of Kaiser Permanente, unexpectedly passed away in his sleep at just 60 years young. Unexpected is an understatement since it was only yesterday when Tyson was a guest speaker at the AfroTech gathering in Oakland as shown by this tweet:

                               

And three days prior, he had been in New York City to speak at the Fast Company Innovation Festival as seen in this picture:

Today In: Innovation

Discussing and advocating for key health issues was a big part of Tyson’s life. Through my career, I have met many hospital, health clinic, and insurance executives, and Tyson without a doubt has stood out from most of the rest. He was far from a “mind the store and pick up the paycheck” CEO. Sure, we can rattle off what happened to the typical metrics used to measure hospital and insurance CEO’s since he became Kaiser Permanente’s CEO in 2013 and it’s Chairman of the board of directors in 2014. Kaiser Permanente went from having 9.1 million members to 12.3 million, employing a workforce of 174,000 to 218,000, and generating $53 billion in annual revenues to $82.8 billion. These are all very impressive jumps but do not begin to capture the larger and what I think are the more important steps that have occurred.

Tyson has helped Kaiser Permanente become a leader in transforming how healthcare systems can have a greater impact on population health. Historically, many hospitals and much of the health care system in the U.S. have been way too focused on inpatient and “sick” care, because surprise, surprise, that’s where the immediate money seems to be. You can make a whole lot more money today trying to fix a medical problem (and even failing horribly to fix it) than preventing the problem in the first place.

This has made much of healthcare far too reactive, waiting for problems to occur, too focused on repairing people after they have already been broken. It’s like waiting at the of the wall for Humpty Dumpty to fall rather than helping him down from the wall or at least installing some seat belts. It can also be analogous to waiting for a car to fall into pieces before you take it (or rather carry it in a bag) to the shop and ask the mechanic, “hey, can you do something about patching everything together? I need to drive to a date tonight.”

Under Tyson’s leadership, Kaiser Permanente has taken major steps to expand the role of health care beyond the walls of hospitals and clinics. For example, as I reported previously for Forbes, there are the ongoing initiatives to address obesity and homelessness in the communities surrounding Kaiser facilities. Tyson covers the latter in this Kaiser Permanente video:

                                  

Another example is their first-of-its-kind partnership with the National Basketball Association (NBA) to tackle (or rather, since it’s basketball, assist with) children’s health issues, which I also have written about for Forbes.

Then there’s climate change, which for Pete’s and everyone else’s sake exists. Recognizing the impact that all of their facilities and many employees can have on pollution and the climate, Kaiser Permanente has been taking steps to become carbon neutral by 2020.

If this doesn’t sound like your typical hospital system or clinic, it isn’t. Tyson hasn’t been your typical healthcare system CEO either. When I spoke to Tyson earlier this year, the conversation was more about a vision of how healthcare should be and what a good healthcare system should be doing rather than a review of how great things already are. He didn’t dwell on dollar signs and listing the clinical services that Kaiser and its many physicians offer. Instead, he talked at length about how Kaiser was trying to not just be reactive but rather address the “social determinants of health” such as “improving basic infrastructure, promoting healthy eating, working on exercise, and taking care of the key ingredients to promoting health.” As he emphasized, “great health care is not just engaged with treatment.”

Tyson also pointed to a part of the body that healthcare systems frequently neglect. No, not the feet or the spleen. It’s the head or more specifically the mind, which incidentally should be connected to the rest of your body. As Tyson mentioned, Kaiser has been “extremely focused on the mind, as in mental health and well-being,” and “looking at the whole person.” He spoke of the “comprehensive package, looking at health and health care.” Again, while healthcare systems may talk about mental health and well-being, talk is cheap. They often don’t mind the gap or rather address the gap in taking care of the mind in the community. How many have actually invested in community well-being programs as Kaiser Permanente has?

Of course, Kaiser Permanente does have strong incentives to keep its millions upon millions of members healthy since it serves the dual purpose of insurer and healthcare system. However, this dual role alone may not necessarily lead to transformative change. When you talk to Tyson, you never got the sense that he was just spewing platitudes. Rather, expanding healthcare these directions seemed to be a passion.

For example, take a look at his experiences as a child. As he related to me, he was “greatly impacted by a wonderful mother, who was sick all of my life and wonderful doctor who take care of her and us.” This combined with the fact that his “father was a minister” meant that his “line of sight was always the community of the congregation. The community was the family.” He spoke of “having resources in the community and encouragement with multiple ‘moms’ who raised me as a child. The community came together,” and offered “a support system that you can rely on, that was in your corner,” that was encouraging, “you to be all that you can be.”

Certainly, Tyson was much more than the color of his skin. Nevertheless, in this day and age, color of the skin still unfortunately can be a major barrier in healthcare. It was an important step that Tyson, as a racial minority, became the leader of the largest nonprofit health plan and integrated delivery system in the United States. This brought a little more demographic diversity to healthcare leadership, which remains way too homogeneous. If you look at pictures of many healthcare system executives, the colors of the neckties are often more diverse that the colors of the skin. Tyson helped get many people more used to seeing an effective and forward-thinking healthcare system leader from a different background.

Tyson didn’t shy away from talking about how race, ethnicity, gender, and sexual orientation either. These demographic characteristics still unfortunately affect healthcare inside and outside hospital and clinic walls. In fact, he had strong interests in reducing disparities of care as well and said, “The fact that someone may not be getting what they should be getting because color of skin or sexual orientation is unacceptable. Period. No sentence to follow.”

The Kaiser Board of Directors has named Gregory A. Adams to fill Tyson’s shoes as Chairman and CEO on an interim basis. These are certainly big shoes to fill. Adams is no stranger to the Kaiser system as he had been reporting to Tyson as the Executive Vice President and Group President, overseeing all eight Kaiser Permanente Regions that includes 38 hospitals and 651 medical office facilities. Additionally, Adams has led Kaiser Permanente’s national Medicare care delivery strategy and was responsible for Kaiser Permanente’s partnership with the NBA. Adams appears in this video covering the launch of the NBA partnership:

                                

Adams has been with Kasier Permanente since 1999, beginning at Kaiser Permanente in Southern California and subsequently holding positions with increasing leadership responsibility. Adams’ Kaiser Permanente biography includes more information on his background.

In a statement, Ed Pei, Kaiser Permanente board member and Chair of its Executive Committee and the Governance, Accountability and Nominating Committee, said: “Bernard was an exceptional colleague, a passionate leader, and an honorable man. We will greatly miss him. The board has full confidence in Greg Adams’ ability to lead Kaiser Permanente through this unexpected transition.”

Indeed, in his five years as CEO and over 30 years in the Kaiser system, Tyson made a major impact on healthcare that went well beyond hospital and clinic walls in many ways. Unfortunately, we won’t be able to see all that he could have done with more years at the helm.

Follow me on Twitter or LinkedIn. Check out my website.

I am a writer, journalist, professor, systems modeler, computational and digital health expert, avocado-eater, and entrepreneur, not always in that order. Currently, I am a Professor of Health Policy and Management at the City University of New York (CUNY), Executive Director of PHICOR (@PHICORteam), Associate Professor at the Johns Hopkins Carey Business School, and founder and CEO of Symsilico. My previous positions include serving as Executive Director of the Global Obesity Prevention Center (GOPC) at Johns Hopkins University, Associate Professor of International Health at the Johns Hopkins Bloomberg School of Public Health, Associate Professor of Medicine and Biomedical Informatics at the University of Pittsburgh, and Senior Manager at Quintiles Transnational, working in biotechnology equity research at Montgomery Securities, and co-founding a biotechnology/bioinformatics company. My work involves developing computational approaches, models, and tools to help health and healthcare decision makers in all continents (except for Antarctica) and has been supported by a wide variety of sponsors such as the Bill and Melinda Gates Foundation, the NIH, AHRQ, CDC, UNICEF, USAID and the Global Fund. I have authored over 200 scientific publications and three books. Follow me on Twitter (@bruce_y_lee) but don’t ask me if I know martial arts.

Source: Kaiser CEO Bernard Tyson Dies Unexpectedly, Here Is His Impact

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The Kaiser Permanente model is all about integration and partnerships, and how everything comes together for patients, said Kaiser Permanente CEO Bernard Tyson. Tyson thus has to balance his time with both internal and external constituents, which is a non-trivial task for an organization of Kaiser Permanent’s size. “The outside influences so much of what happens on the inside, that I have to spend a lot of my time with customers, the government and other key parties.” In his visit to Systems Leadership on April 25, 2019, Tyson spoke with Lecturer Robert Siegel on the challenges of running an $80B per year company in a complex world while still focusing on the goal of keeping patients healthy.
Read more on Medium: https://stanford.io/2XZKhTZ

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Getting To Know The Man Who Did The Most To Nourish Free Enterprise In China: Jack Ma

Most everyone has probably heard of Jack Ma and Alibaba. But, few understand the true immensity—and importance—of what Ma, the co-founder and former executive chairman of Alibaba Group, has done. We had a fascinating conversation at the Forbes Global CEO Summit in Singapore, where we discussed what he did at Alibaba, one of the most formidable e-commerce companies in the world, and his future plans and aspirations.

By providing people in China with a powerful online platform to market their products and services with Alibaba, he nourished millions of small businesses — and the cause of free enterprise. Thanks to Ma, countless numbers of Chinese businesses and individuals can obtain loans and other financial services that would otherwise be unavailable from traditional institutions within China. He also enabled small enterprises everywhere, including the US, to easily trade with entities in China.

Having recently stepped down from Alibaba, Ma is moving into philanthropy, big time, to promote entrepreneurship and education, among other things.

Struggling students will take heart at the fact that Ma was a poor student, frequently flunking his exams. Furthermore, his success was not immediate; numerous employers turned him down when he first entered the workforce.

Ma’s story validates Adam Smith’s truth that commerce benefits us all, and free markets are the best poverty fighters ever created.

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Steve Forbes is Chairman and Editor-in-Chief of Forbes Media.
Steve’s newest project is the podcast “What’s Ahead,” where he engages the world’s top newsmakers, politicians and pioneers in business and economics in honest conversations meant to challenge traditional conventions as well as featuring Steve’s signature views on the intersection of society, economic and policy.

Steve helped create the recently released and highly acclaimed public television documentary, In Money We Trust?, which was produced under the auspices of Maryland Public television. The film was inspired by the book he co-authored, Money: How the Destruction of the Dollar Threatens the Global Economy – and What We Can Do About It.

Source: Getting To Know The Man Who Did The Most To Nourish Free Enterprise In China: Jack Ma

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3 Key Signs Your Startup’s Business Plan Needs to Change

Pivoting is expensive, but so is making smaller changes to your business plan to address the present-day realities of your market, your customers and your company. Revising your plan and implementing those changes can be time-consuming and expensive, and it can result in considerable operational upheaval.

But sometimes that’s exactly what your small business must do to ensure future success. How will you know it’s time to re-write your small business’s playbook? Here, three key signs:

1. Your growth is stagnant.

In a startup, momentum is everything. Growth provides the resources to continue to expand, beat the competition, improve quality and service, and increase efficiency through economies of scale.

Unfortunately, most small businesses can’t afford to simply plow additional funds into advertising in order to grow. Keeping customer acquisition costs down — and churn rate down as well — is key in the early stages for any bootstrapped startup.

In that case, growth might require jettisoning — or at the very least de-emphasizing — some products to focus on more profitable products. (See Steve Jobs when he returned to Apple in 1997.) That may require you to shift employees into new seats: sales, service, operations, etc.

Do this and the result might be a ripple effect of positives: Shifting employees provides opportunities for them to learn new skills, demonstrate new talents and learn about other functional areas. Moving a few employees into different roles can help re-energize and re-engage a number of other people.

Growth could also require introducing new products or services, especially when they complement existing offerings. Complementary offerings are a great way to re-engage existing customers as well as to bring in new customers who may then purchase other products or services.

In short: If your growth has stalled, what you planned to offer may not be sufficient. So how will you know what changes to make?

Ask your customers. They’ll tell you.

2. The needs of your “ideal” customer have changed.

Every business plan includes information on the target market: Demographics, interests, needs, pain points, etc. Over time, those needs can change (or maybe they never actually existed, at least on a sufficiently broad scale).

If you’re a tech company, evolving technologies can change the way customers interact with your service. If you’re in the restaurant business, today’s hot trend can be tomorrow’s outdated fad.

More likely, as your business has grown, so too has your infrastructure — meaning the level of one-on-one service you planned to provide is no longer necessary. (Or even desired.)

A great business plan lays out a blueprint for meeting customer needs and solving customer pain points. A great business constantly evolves to ensure those needs are met and those pains are eliminated.

Stay on top of metrics like return, service calls, churn rate, etc. to keep up with changing customer needs. Talk to your customers to find out how their needs may have changed.

Then revise your plan to make sure you provide not just what your plan says, but what customers really want and will pay to get.

3. You need full-time people in freelancer seats

Early on you may not have needed — or maybe couldn’t afford — to hire full-time people to perform certain functions. Wisely, you turned to freelancers. Freelancers are great for completing specific tasks, especially when sufficient expertise or specialized knowledge is a necessity.

The problem with freelancers is that they can only perform specific tasks. They can’t step into other roles. They can’t step into other functions. Because they aren’t a part of your company, they can’t learn and grow and develop with your company.

At some point it makes sense to hire a full-time employee. While they might not currently possess every drop of skill and experience they need to succeed in the role, when you hire people who are adaptable and eager to learn, they soon will.

And then they will help create an outstanding foundation upon which your company can grow.

By: Craig Bloem Founder and CEO, FreeLogoServices.com

Source: 3 Key Signs Your Startup’s Business Plan Needs to Change

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Tutorial starts at 1:20 Whether you’re starting a new business or just trying to get your existing business a bit more organized, writing a business plan is the perfect way to clearly outline how your business operates, declare goals, and set out a strategy to reach those goals. In this video you’ll learn about the six essential pages every business plan should have, what to record on each of those pages, and also how to write your business plan as quickly and easily as possible — even if you’re a complete beginner! 🔹 Download the FREE Six-Step Business Success Plan: https://www.gillianperkins.com/downlo… // WHAT TO WATCH NEXT Six Ways to Earn Six Figures Working from Home https://www.youtube.com/watch?v=Y1i8x… How I (actually) Got My First Client Online https://www.youtube.com/watch?v=AST3P… How I Created Multiple Streams of Income for Myself https://www.youtube.com/watch?v=dfaH_… How to Decide What Business to Start https://www.youtube.com/watch?v=Mid_A… // LINKS Learn more about Gillian and find resources to build your online business: https://www.gillianperkins.com Join our private Facebook group! https://www.facebook.com/groups/start… Follow Gillian on Instagram to get a BTS look at what it’s like to be a digital entrepreneur: https://www.instagram.com/gillianzper… // MAIL Gillian Perkins International P.O. Box 13573 Salem, OR 97309 NOTE: This description may contains affiliate links to products we enjoy using ourselves. Should you choose to use these links, this channel may earn affiliate commissions at no additional cost to you. We appreciate your support! KEYWORDS how to write a business plan, free business plan, do i need a business plan, #entrepreneurship, #gillianperkins, business plan how-to guide, business plan step by step, business plan tips ,gillian perkins, gillianperkins, do you need a business plan, How To Write a Business Plan To Start Your Own Business, how to write a business plan step by step, business plan for beginners, simple business plan, business 101, business plan template, business plan example, how to write a business plan for beginners

The Formula You Are Using To Determine How Much To Save For Retirement Is Broken

If you are trying to figure out how much money you need to save for retirement, there’s an easy rule of thumb that you can use: simply multiply your expected annual expenses in retirement by twenty-five.

For example, if you expect to spend $100,000 annually once you’re retired, you’ll want to have a $2.5 million portfolio saved up. If you’d like to play around with the numbers to estimate your own retirement needs, you can use this simple retirement calculator.

This retirement savings rule of thumb is based on the 1998 landmark study conducted by Carl Hubbard, Philip Cooley and Daniel Walz, in their seminal study known as the Trinity Study. They built on the 1994 work of William Bengen, who originally coined the ‘4% Rule’.

Today In: Money

The Trinity Study evaluated safe retirement withdrawal rates, and found that 4% was sufficient for the majority of retirees. A safe withdrawal rate simply refers to the amount of money that can be taken out of an account and allow you to reasonably expect the portfolio to not fail, or run out of money. In this case, the 4% withdrawal rate refers to the amount of money that will be withdrawn from the balance of the retirement portfolio in the first year of retirement. In subsequent years, the balance withdrawn will simply be an inflation adjusted number based on the total dollar amount withdrawn the year prior.

The Trinity Study has become so well-known, that it has been adopted by hopeful retirees from all walks of life, including those hoping to retire early. The FIRE movement (Financial Independence, Retire Early) is a lifestyle movement with the goal of allowing individuals to retire as early and quickly as possible.

However, one detail that the movement is getting wrong and completely missing, is the fact that the Trinity Study’s 4% rule of thumb was based on a 30 year retirement period. This time horizon was determined to be on the conservative end of retirements by the authors of the study. If you work until you’re 65, having a 30 year retirement seems pretty reasonable. I don’t think many would argue that living until the age of 95 is a short life by any means.

The problem arises due to the FIRE movement seeking a much longer retirement period. If you retire at 45 years old, you may need a portfolio that will survive another 45 to 50 years in order to avoid running out of money. In this case, making a judgement error could end up meaning re-entering the workforce at an advanced age. For this reason, relying on a 4% withdrawal rate is an extremely risky decision if you plan to retire early.

This begs the question of what a more appropriate withdrawal rate is if you plan to retire early. The answer is that it depends. In general, the study found that as the balance between stocks and bonds shifts towards equities, a portfolio is more likely to withstand the test of time. So inherently, your risk tolerance will need to be factored into the equation. If you are comfortable with 75%+ of your portfolio being in stocks (and stomaching the increased risk), you might be safe with a 3% withdrawal rate. If you prefer less volatile investments, a lower rate is more conservative.

This is bad news for a lot of you hoping to retire early.

For one, it would mean having to save an additional $833,000 if you hope to spend $100,000 annually like in the example above. Unless you are an exceptionally high earner, it’ll likely mean having to work for several additional years or having to continue to earn additional income even after retirement.

With the buzz surrounding the gig economy and the seemingly endless ‘side-hustle’ opportunities available, this seems like a surmountable hurdle. The deficit in retirement savings required also highlights the impact of having to save for retirement as efficiently as possible.

This means fully taking advantage of your 401(k), IRA, and other tax-advantaged accounts. It also means evaluating whether it makes sense to refinance your student loans or not. Avoiding credit card interest fees and other forms of high interest debt are a must. In addition, maximizing your earning potential will also help safeguard your nest egg from market turbulence and economic uncertainty.

Just as important, you’ll also want to avoid making costly investment mistakes. One that comes to mind is erroneously viewing your vehicle as a sound investment. Another pitfall is picking individual stocks in lieu of index funds or ETFs. To set yourself up for success, minimizing fees and diversifying your investments is the name of the game.

Does all of this mean that the 4% rule is futile and should be completely ignored? Absolutely not. The authors of the Trinity Study ran simulations to find what the safe withdrawal rate would be for varying time horizons. But at the end of the day, they were just that: simulations. Even if you only had an expected 15 year retirement and used a conservative withdrawal rate, there is always the chance that your portfolio could fail. The same is true in the opposite direction: there’s always the chance that a 4% withdrawal could be sufficient for a 50 year retirement.

The question you have to answer is whether you are comfortable taking that risk. I know I’m not.

Follow me on Twitter or LinkedIn. Check out my website or some of my other work here.

Camilo Maldonado is Co-Founder of The Finance Twins, a personal finance site showing you how to budgetinvestbanksave & refinance your student loans. He also runs Contacts Compare.

Source: The Formula You Are Using To Determine How Much To Save For Retirement Is Broken

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There are many financial gurus out there that tell you how much to save for retirement, but how did they come up with that number? Honestly they are all just using each others guesses, but as financial advisors we need to do better. While others guess that you should save 10, 12,15% for retirement we can actually figure out how much you should save…to the penny! The first thing we want to know is how much income are you looking for in retirement? Typically we say that you should aim to have 75% of your current income replaced for retirement. The reason is that social security and other savings may make up the difference. Today we will calculate how much a 30 year old couple should save for retirement given that they each have income of $50,ooo per year. We will adjust this to account for inflation and make some assumptions about their retirement age and life expectancy. After calculating this along with expected returns we can see that they need to save 11.9% of their income yearly to have 75% of their income in retirement. We love doing this for our clients and if you are considering a place for your retirement investments then we hope you will consider jazzWealth.com We’re an investing service that also helps you keep your dough straight. We’ll manage your retirement investments and, using NestEgg we can help you with every penny! —Ready to subscribe— https://www.youtube.com/jazzwealth?su… For more information visit: www.JazzWealth.com — Instagram @jazzWealth — Facebook https://www.facebook.com/JazzWealth/ — Twitter @jazzWealth Investment related questions 📧 Dustin@JazzWealth.com Business Affairs 📧Carolyn@JazzWealth.com

IRS Announces New Per Diem Rates For Taxpayers Who Travel For Business

Are you wondering about those updated per diem rates? The new per-diem numbers are now out, effective October 1, 2019. These numbers are to be used for per-diem allowances paid to any employee on or after October 1, 2019, for travel away from home. The new rates include those for the transportation industry; the rate for the incidental expenses; and the rates and list of high-cost localities for purposes of the high-low substantiation method.

I know, that sounds complicated. But it’s intended to keep things simple. The Internal Revenue Service (IRS) allows the use of per diem (that’s Latin meaning “for each day” – remember, lawyers love Latin) rates to make reimbursements easier for employers and employees. Per diem rates are a fixed amount paid to employees to compensate for lodging, meals, and incidental expenses incurred when traveling on business rather than using actual expenses.

Here’s how it typically works: A per diem rate can be used by an employer to reimburse employees for combined lodging and meal costs, or meal costs alone. Per diem payments are not considered part of the employee’s wages for tax purposes so long as the payments are equal to, or less than the federal per diem rate, and the employee provides an expense report. If the employee doesn’t provide a complete expense report, the payments will be taxable to the employee. Similarly, any payments which are more than the per diem rate will also be taxable.

Today In: Money

The reimbursement piece is essential. Remember that for the 2019 tax year, unreimbursed job expenses are not deductible. The Tax Cuts and Jobs Act (TCJA) eliminated unreimbursed job expenses and miscellaneous itemized deductions subject to the 2% floor for the tax years 2018 through 2025. Those expenses include unreimbursed travel and mileage.

That also means that the business standard mileage rate (you’ll find the 2019 rate here) cannot be used to deduct unreimbursed employee travel expenses for the 2018 through 2025 tax years. The IRS has clarified, however, that members of a reserve component of the Armed Forces of the United States, state or local government officials paid on a fee basis, and certain performing artists may still deduct unreimbursed employee travel expenses as an adjustment to income on the front page of the 1040; in other words, those folks can continue to use the business standard mileage rate. For details, you can check out Notice 2018-42 (downloads as a PDF).

What about self-employed taxpayers? The good news is that they can still deduct business-related expenses. However, the per diem rates aren’t as useful for self-employed taxpayers because they can only use the per diem rates for meal costs. Realistically, that means that self-employed taxpayers must continue to keep excellent records and use exact numbers.

As of October 1, 2019, the special meals and incidental expenses (M&IE) per diem rates for taxpayers in the transportation industry are $66 for any locality of travel in the continental United States and $71 for any locality of travel outside the continental United States; those rates are slightly more than they were last year. The per diem rate for meals & incidental expenses (M&IE) includes all meals, room service, laundry, dry cleaning, and pressing of clothing, and fees and tips for persons who provide services, such as food servers and luggage handlers.

The rate for incidental expenses only is $5 per day, no matter the location. Incidental expenses include fees and tips paid at lodging, including porters and hotel staff. It’s worth noting that transportation between where you sleep or work and where you eat, as well as the mailing cost of filing travel vouchers and paying employer-sponsored charge card billings, are no longer included in incidental expenses. If you want to snag a break for those, and you use the per diem rates, you may request that your employer reimburse you.

That’s good advice across the board: If you previously deducted those unreimbursed job expenses and can no longer do so under the TCJA, ask your employer about potential reimbursements. Companies might not have considered the need for specific reimbursement policies before the new tax law, but would likely not want to lose a good employee over a few dollars – especially when those dollars are important to the employee.

Of course, since the cost of travel can vary depending on where – and when – you’re going, there are special rates for certain destinations. For purposes of the high-low substantiation method, the per diem rates are $297 for travel to any high-cost locality and $200 for travel to any other locality within the continental United States. The meals & incidental expenses only per diem for travel to those destinations is $71 for travel to a high-cost locality and $60 for travel to any other locality within the continental United States.

You can find the list of high-cost localities for all or part of the calendar year – including the applicable rates – in the most recent IRS notice. As you can imagine, high cost of living areas like San Francisco, Boston, New York City, and the District of Columbia continue to make the list. There are, however, a few noteworthy changes, including:

  • The following localities have been added to the list of high-cost localities: Mill Valley/San Rafael/Novato, California; Crested Butte/Gunnison, Colorado; Petoskey, Michigan; Big Sky/West Yellowstone/Gardiner, Montana; Carlsbad, New Mexico; Nashville, Tennessee; and Midland/Odessa, Texas.
  • The following localities have been removed from the list of high-cost localities: Los Angeles, California; San Diego, California; Duluth, Minnesota; Moab, Utah; and Virginia Beach, Virginia.
  • The following localities have changed the portion of the year in which they are high-cost localities (meaning that seasonal rates apply): Napa, California; Santa Barbara, California; Denver, Colorado; Vail, Colorado; Washington D.C., District of Columbia; Key West, Florida; Jekyll Island/Brunswick, Georgia; New York City, New York; Portland, Oregon; Philadelphia, Pennsylvania; Pecos, Texas; Vancouver, Washington; and Jackson/Pinedale, Wyoming.

You can find the entire high-cost localities list, together with other per diem information, in Notice 2019-55 (downloads as a PDF). To find the federal government per diem rates by locality name or zip code, head over to the General Services Administration (GSA) website.

Follow me on Twitter or LinkedIn. Check out my website.

Years ago, I found myself sitting in law school in Moot Court wearing an oversized itchy blue suit. It was a horrible experience. In a desperate attempt to avoid anything like that in the future, I enrolled in a tax course. I loved it. I signed up for another. Before I knew it, in addition to my JD, I earned an LL.M Taxation. While at law school, I interned at the estates attorney division of the IRS. At IRS, I participated in the review and audit of federal estate tax returns. At one such audit, opposing counsel read my report, looked at his file and said, “Gentlemen, she’s exactly right.” I nearly fainted. It was a short jump from there to practicing, teaching, writing and breathing tax. Just like that, Taxgirl® was born.

Source: IRS Announces New Per Diem Rates For Taxpayers Who Travel For Business

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Per Diem is one of the largest tax deductions available to owner-operator truck drivers. Effective October 1, 2018, the daily rate was increased. In this video, we discuss Per Diem and how it will affect owner-operators.

With Its Stock Hitting An All-Time High, Here’s Why Nike Is So Dominant

Topline: Nike, already the world’s dominant athletic footwear and apparel brand, hit an all-time high share price on Wednesday, boosted by a successful digital transformation, high demand for athletic products and product innovation that is faster than its competitors.

  • Nike surged 5.5% after smashing expectations on its first-quarter earnings report yesterday, soaring past its previous record high of $90 per share. The stock opened at an all-time high Wednesday and is now up almost 18% for the year.
  • The company cited new product innovation and investments in e-commerce for helping boost results, as it continues to maintain a leading position in the athleisure and street fashion trend.
  • Furthermore, “Nike’s digital investments continue to bear fruit,” as Jefferies analyst Randal Konik says. Digital sales spiked 42% from a year earlier, as the company has increasingly been investing in apps and online selling platforms—which further helped drive overall sales growth. As a result, Nike has increasingly adopted a direct-to-consumer strategy for its business, discarding the traditional method of selling products through retailers.
  • The latest earnings show that despite trade tensions between the U.S. and China, the company wasn’t hit as hard by tariffs as some of its peers. Global sales grew 7% from a year earlier to $10.7 billion (above the expected $10.4 billion, according to FactSet). That growth was largely driven by revenue in China, which surged 22% to $1.7 billion.
  • Wall Street had a field day with Nike’s first-quarter earnings report, which widely surpassed even the loftiest expectations. Many analysts rushed to upgrade the stock’s price target and rating: Over 70% recommend it as a “buy,” according to Bloomberg data.
  • While Adidas is still the company’s biggest rival globally, it “has lost market share to Nike in some areas,” Morningstar analyst David Swartz told Forbes. He also pegs ANTA, the largest Chinese sportswear company, as a legitimate competitor in China, though its market share still lags slightly behind Nike and Adidas. He identifies the region as a huge growth market and highlights the 2020 Olympics as another big event where Nike will do well: “That should give them a big boost in Asia.”

Crucial quote: In a call with analysts Tuesday evening, CEO Mark Parker reiterated that demand for athletic product remained high worldwide. He highlighted women’s apparel, which also grew at a double-digit rate last quarter, as another high priority growth area for the company. “The opportunities ahead are as bright as I’ve ever seen them,” Parker said.

What to watch for: While Nike’s performance and revenue growth was stellar, the valuation of its stock price is somewhat expensive relative to its peers, according to Konik. Nike currently trades at a price-to-earnings ratio of 32.5—compared to Adidas, at 29.5, for instance. The company will need to maintain its rapid pace of growth in the next few years to justify its valuation, but that may well be possible, as Nike has momentum in its favor. They “crushed it” in the latest quarter, according to Konik, who puts the stock’s price target at $97 thanks to the “ongoing power of its brand.”

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I am a New York—based reporter for Forbes, covering breaking news—with a focus on financial topics. Previously, I’ve reported at Money Magazine, The Villager NYC, and The East Hampton Star. I graduated from the University of St Andrews in 2018, majoring in International Relations and Modern History. Follow me on Twitter @skleb1234 or email me at sklebnikov@forbes.com

Source: With Its Stock Hitting An All-Time High, Here’s Why Nike Is So Dominant

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Nike is one of the most recognized brands in the world. It continues to surpass rivals like Adidas and Under Armor, despite controversy and slowing sales growth in U.S. How did Nike become the giant it is today? Nike’s iconic swoosh logo and “Just Do It” slogan are universally known. As of June 2019, Nike is valued at nearly $130 billion, making it one of the most valuable companies in the world. It’s popular shoe lines include the Nike Air Max, Nike Air Force 1, Nike VaporMax, Nike Cortez, and of course, Air Jordans. Air Jordans, combined with an advertising strategy that embraces controversy and exclusive contracts with some of the biggest sports leagues in the country have helped Nike succeed. But sales growth in North America is slowing down and and sneaker sales aren’t growing as fast as they used to. Nike also faces criticism for its treatment of female employees, which is something the company will need to work on as it tries to make Women’s apparel and sneakers a bigger part of its strategy. Will Nike continue to grow or will Adidas, Under Armour, and other brands continue to eat into its market share? » Subscribe to CNBC: https://cnb.cx/SubscribeCNBC » Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision » Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic About CNBC: From ‘Wall Street’ to ‘Main Street’ to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Connect with CNBC News Online Get the latest news: https://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC #CNBC How Nike Became The Most Powerful Brand In Sports

This Kombucha Entrepreneur Hired a Man Who Spoke No English. He Is Now a Company Executive

Fifteen years ago, a non-English-speaking man applied to work at GT’s Living Foods. In Spanish, he told the hiring manager, “I am willing to do anything.” He got the job.

Originally, his job was to sweep and mop the floors. He moved up to housekeeping, and later was promoted to work on the bottling line.

“Every month, every quarter, every year he grew, and his attitude got better,” says GT Dave, founder and CEO of GT’s Living Foods. “He promised he would do anything, and he did. He had zero ego, zero pride, and the best attitude I’ve ever seen.”

Dave even goes so far as to say that this hire is better at his job than any other employee–even those with more education and industry experience. Unlike many people, who are specifically good at only one or two tasks, this employee has an affinity for quickly learning how to do many different things. And now he’s an executive at GT’s Living Foods. His job is to develop kombucha flavors and to run production lines. He’s also a general problem solver for the company.

In a company like GT’s Living Foods, Dave says, he needs people who are scrappy, flexible, and quick to jump on problems that need solving. “We’re very, very lean. We’re very, very agile. We’re much more artistic than we are corporate,” Dave says. “It’s a hard environment for your typical executive to exist in.”

As such, Ivy League degrees and decades of experience don’t necessarily count for much. Dave says résumés don’t matter to him: He looks for the same can-do attitude in every applicant who walks in the door. And, once he hires someone, that person has to keep proving she’s worthy of the job.

“I want to see what you can do here, and now. That’s my litmus test for talent,” says Dave.

By: Lizabeth Frohwein

 

Source: This Kombucha Entrepreneur Hired a Man Who Spoke No English. He Is Now a Company Executive

Our Founder & CEO, GT Dave, speaks to industry leaders & entrepreneurial pioneers on “Keeping The Attachment” at BevNet Live Winter 2018 in Santa Monica, CA. Watch to the end to see the announcement of our newest offering, DREAM CATCHER: Our CBD-Infused Sparkling Wellness Water. For more information about GT Dave and GT’s Living Foods, visit GTsLivingFoods.com. Follow @GTsKombucha on Social Media! Facebook: https://www.facebook.com/GTsLivingFoods/ Instagram: https://www.instagram.com/gtskombucha/ Twitter: https://twitter.com/gtskombucha Pinterest: https://www.pinterest.com/gtskombucha/ LinkedIn: https://www.linkedin.com/company/gts-… Website: https://gtslivingfoods.com

 

Walmart Beats Q1 Earnings Forecast, Misses on Revenues; E-Commerce Sales Surge

Walmart Inc. (WMTGet Report) posted much stronger-than-expected first quarter earnings Thursday as same-store sales in the United States beat expectations amid a renewed push in the retailer’s e-commerce division.

Walmart said adjusted earnings for the three months ending in April, the retailer’s fiscal first quarter for the 2020 financial year, came in at $1.13 per share, well ahead of the $1.02 forecast. Reported earnings rose 84.7% from last year to $1.33 per share, reflecting a 20 cents per share gain from the group’s holding in China-based online retailer JD.com (JDGet Report) .

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Group revenues, Walmart said, rose 1% to $123.925 billion, missing analysts’ forecast of $124.51 billion, as currency moves clipped the topline. Excluding currency impacts, Walmart said, revenues rose 2.5% to $125.8 billion, but the company cautioned currency moves would hit sales by around $1 billion over the current quarter.

“We’re changing to enable more innovation, speed and productivity, and we’re seeing it in our results,” said CEO Doug McMillon. “We’re especially pleased with the combination of comparable sales growth from stores and eCommerce in the U.S. Our team is demonstrating an ability to serve customers today while building new capabilities for the future, and I want to thank them for a strong start to the year.”

Walmart shares were marked 3.7% higher following the earnings release at $103.59 each, a move that would extend the stock’s year-to-date advance to around 11%.

U.S. same-store sales rose 3.4%, Walmart said, with net sales hitting $80.3 billion while e-commerce revenues surged 37%, although that growth rate slowed from 43% over the Christmas holiday quarter. International sales, however, fell 4.9% to $28.8 billion. Sam’s Club revenues rose 1.5% to $13.8 billion.

Earlier this week, Walmart said  it will launch a free, next-day delivery service to challenge its online rival Amazon Inc.  (AMZNGet Report) as retailers step-up their efforts to cater to changing consumption patterns in the world’s biggest economy.

Walmart’s NextDay delivery service will apply to around 220,000 frequently-purchased items on the Walmart.com website, the company said, and will be offered without a membership on all orders over $35. The new service will launch in Phoenix and Las Vegas, Walmart said, before expanding to Southern California in the coming days and around 75% of the broader U.S. population, including 40 of the top 50 major metro areas, by the end of the year.

Walmart’s move follows a similar offering from Amazon, the world’s largest online retailer, which shifted to one-day from two-day delivery for its Prime members last month — who pay $119 per year for the loyalty club membership — with a strategy it said will cost $800 million over its fiscal second quarter.

By:

Source: Walmart Beats Q1 Earnings Forecast, Misses on Revenues; E-Commerce Sales Surge

 

How Did This Phoenix Tech Company Achieve a Staggering 36,000 Percent Growth? A Mistake Had a Lot to Do With It

The story of the fastest-growing private company in America, a profitable technology startup called Freestar whose revenue growth since 2015 has been a staggering 36,680 percent, starts with a calendar.

Not a buzzy new calendar app. Not a life-altering meeting request. A printed wall calendar. One of those relics with pictures of animals or landscapes that we all used to tack up in the kitchen.

This particular calendar–Tempe12–had, well, swimsuit models. Arizona State University co-eds in bikinis, to be exact. “All the girls had to have a minimum 3.0 GPA, so they had beauty and brains,” explains Freestar co-founder David Freedman, without a trace of sheepishness. Freedman, who launched the calendar when he was a 22-year-old fifth-year senior at ASU back in 2004, has come a long way since then. But he draws a straight line from that fairly crude start to his current success.

Freestar, you see, sells solutions and services that help publishers make more money online by optimizing their advertising operations. When Tempe12 was just getting started, Freedman sold all its ad space to local businesses. The calendar took off, expanded to 21 other colleges by its third year, and drew attention from Playboy and Howard Stern. Tempe12 had a website with photo archives and decent traffic–but no efficient way to make money.

In 2008, Freestar’s other co-founder, Chris Stark, joined Freedman, taught himself to code, and started scaling Tempe12’s online ad business. Other publishers noticed and asked for help, so Freedman and Stark launched a consultancy–DigitalMGMT.

“Smaller publishers would get requests from an advertiser to spend money on their website, and they didn’t even know how to sell it or how to serve it,” Freedman remembers. He and Stark could help. They had no secret formula, no proprietary technology, but they were crafty and entrepreneurial and understood an industry that was evolving every month.

“The biggest problem we had at that point was that we’d take a client from making five grand a month to 50 grand, and some other company would come in and buy them,” says Stark. “Our success meant having to always find new clients.”

In 2014, Freedman and Stark set out to raise around a million dollars and then spent most of it purchasing nine small publishers–webdesignledger.com, webresourcesdepot.com, a stock photography site called lostandtaken.com–thinking that they’d “juice the revenue and sell them off,” Freedman recalls. It was the birth of Freestar–and it was a big mistake.

Almost immediately, Freedman and Stark realized that publishing a swimsuit calendar didn’t give them any real editorial expertise. They also realized that focusing on scaling their own websites put them in competition with the sites for which they consulted.

But around the same time, Stark began experimenting with a new technology that was revolutionizing online advertising: header bidding. Until then, many Web ads had been bought in a split-second auction process that went like this: A publisher sent out a request to advertisers to bid on an ad space, and the software would automatically accept the first qualifying offer.

Ads could be sold in real time–but publishers couldn’t weigh offers against one another, potentially missing the best ones. Publishers also had little sense of who was buying ads, which left their sites vulnerable to shady operators. “It was as if you were selling your car at an auction, and they let only one person into the room at a time,” Stark explains. “That person could offer whatever they wanted–and you had to either accept or reject their offer.”

With header bidding, a snippet of code sent a request to all potential advertisers simultaneously–and then selected the best offer. Suddenly, publishers earned more from each ad, and they had more control over which ads ran on their sites. A decade after Freedman started dabbling in ad sales, Freestar took off like a rocket.

“The beautiful thing is, when you start making people more money and helping them run their businesses better, they typically have pretty big mouths,” says Freedman. “Word travels quickly.” Today, Freestar works with more than 300 publishers, including Barstool Sports, Snopes, and Fortune.

Coindesk, which covers all things cryptocurrency, saw ad revenue increase 300 percent in the first month it worked with Freestar, says Jacob Donnelly, the publisher’s managing director of digital operations. Freestar, he says, has made it unnec­essary for Coindesk to hire anyone to handle advertising operations. “That lets me think more strategically about revenue generation,” he says, “which is huge.”

Freestar generates its own revenue by taking a small percentage of the ad dollars that flow through its technology. The company hauled in $37 million last year and expects to cross the $100 million mark soon. It now employs 40–including a new face up top. Freedman and Stark aren’t big on job titles, and neither was ever formally CEO or president.

About a year into the company’s breakout growth, the founders tried to hire Kurt Donnell, a well-regarded media executive in their hometown of Phoenix, but failed to bring him on.

Two years later, they tried again, and Donnell joined as president this past January. What changed Donnell’s mind? “They had executed on everything they said they were going to do two years prior,” he says. And, he adds, “the growth was just astonishing.”

By: Tom Foster

 

 

Source: How Did This Phoenix Tech Company Achieve a Staggering 36,000 Percent Growth? A Mistake Had a Lot to Do With It

He Built A $2.5 Billion Business At Age 50 That Is Disrupting A 7,000 Year Old Industry

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Dr. Joe DeSimone took his own path to entrepreneurship. His latest venture, Carbon, is changing the way things are made.

He’s assembled one of the most impressive Board of Directors and line up of investors to transform the $300 billion manufacturing industry.

Joe recently appeared as a guest on the DealMakers Podcast. During his exclusive interview, he shared how his team is transforming how the world makes things, the fundraising process, what it’s like building a nearly 500 person company in less than 6 years, and many more topics.

From Academia to Entrepreneurship

Joe DeSimone was born and raised in the suburbs of Philadelphia. Ever since high school, Joe found he had a knack for chemistry. For both understanding it and for teaching it.

He attended Ursinus College, and then Virginia Tech for his Ph.D. On a tip from a faculty advisor, he went to check out the University of North Carolina, at Chapel Hill—-one of the top 10 chemistry departments in the country.

If he would teach organic and polymer chemistry, then they would give him $500,000 to start a research program. He was convinced. At UNC, he enjoyed a highly successful career as a professor for 25 years.

Joe taught a lot of students chemistry and mentored many researchers. He learned that people have very different learning styles. From his perspective, if you want to be a great teacher, you have to take responsibility for explaining complicated topics in accessible ways.

It turns out that is a really important trait for entrepreneurs too. It’s a valuable skill whether you’re doing it in a classroom setting, talking to VCs or investors, or your own employees. The importance of bringing people along with you.

His position in academia enabled Joe DeSimone to pursue a handful of interesting startups based on his research before he launching his newest venture, Carbon, in 2013.

His first company was BioStent. A partnership with an interventional cardiologist at Duke University. They developed a coronary stent that is polymeric instead of metal-based. It dissolves in the body after 18 months, once blood vessels can operate on their own again. The company was acquired by Guidant, and then Abbott.

Next, it was Liquidia Technologies, a partnership with one of Joe’s Ph.D. students including Jason Rolland, now SVP of Materials at Carbon. Liquidia went IPO last year.

They developed technology that leveraged tools from the computer industry to make precision nanoparticles. It spawned new and more effective ways to deliver medicines to the airway.

It has proven valuable in improving treatment approaches for diseases like pulmonary arterial hypertension, and in creating next-generation vaccine platforms for infectious diseases and certain cancers.

After spending 25 as a faculty member at UNC, the opportunity to go to Silicon Valley and take on a new entrepreneurial challenge was something Joe couldn’t pass up.

UNC agreed he could take a sabbatical to pursue his idea. That was five years ago.

Departing Academia for Silicon Valley 

When Joe left North Carolina for Silicon Valley to found Carbon, he didn’t know what the future would hold. Carbon is now one of the world’s leading digital manufacturing companies.

Based in Redwood City, Carbon’s mission is to enable companies to make breakthrough products that can improve human health and well being, transform industries, and change the world.

Joe launched the company and its groundbreaking Digital Light Synthesis™ (DLS) technology on the TED stage in 2015.  DLS fuses light and oxygen to rapidly produce products from a pool of resin. Using DLS technology, Carbon is enabling companies like Adidas, Riddell, Ford and Johnson & Johnson to create breakthrough products at speeds and volumes never before possible, finally fulfilling the promise of 3D printing.

Joe believes that empowering product teams to make breakthrough products and bring them to market faster will change the way we live.

Carbon has cracked the code on 3D printing at scale. The manufacturing industry is a $12 trillion market and manufacturing polymers is a $330 billion market. There is enormous potential here for Carbon to lead the digital revolution in manufacturing.

Creating a Company Differentiated by its Technology, Business Model and Team 

With a team of nearly 500 employees around the world, Carbon has also assembled an impressive team of board members and investors while raising $680 million in the process at a $2.5 billion valuation.

Carbon’s board includes former Chairman and CEO of DuPont, Ellen Kullman, former CEO of Ford Motor Company, and former CEO of Boeing’s Aircraft Division, Alan Mulally, and Sequoia’s Jim Goetz.

Some of their investors include Sequoia, Google Ventures, GE, Adidas, BMW, Johnson & Johnson, and JSR. They’ve also got Fidelity, Baillie Gifford, and Madrone Capital Partners as well as investment from additional international sovereign funds.

Storytelling is everything in fundraising and Carbon was able to master this. Being able to capture the essence of what you are doing in 15 to 20 slides is the key. For a winning deck, take a look at the pitch deck template created by Silicon Valley legend, Peter Thiel (see it here) that I recently covered. Thiel was the first angel investor in Facebook with a $500K check that turned into more than $1 billion in cash.

Critical Ingredients for a Successful Company

During the interview, Joe shared three of the most important components of building a successful company as being:

1. The importance of IP and patent-protection

2. Building highly differentiated technology

3. Assembling a world class team of people that are committed, passionate, and talented

DeSimone also shared his thoughts on the similarities between academia and entrepreneurship such as the importance of bringing people along with you and painting a vision for the future and how the world can be different.

Listen in to the full podcast episode to find out more, including:

  • Joe’s advice for starting your own company
  • How he created a purpose-led company
  • Building a successful business model
  • Putting your customers first
  • Future-proofing from obsolescence

Alejandro Cremades is the author of The Art of Startup Fundraising, co-founder of Panthera Advisors (M&A and fundraising advisory), and creator of Inner Circle (fundraising tools & resources)

 

I am a serial entrepreneur and the author of the The Art of Startup Fundraising. With a foreword by ‘Shark Tank‘ star Barbara Corcoran, and published by John Wiley & Sons, the book was named one of the best books for entrepreneurs. The book offers a step-by-step guide to today‘s way of raising money for entrepreneurs. Most recently, I built and exited CoFoundersLab which is one of the largest communities of founders online. Prior to CoFoundersLab, I worked as a lawyer at King & Spalding where I was involved in one of the biggest investment arbitration cases in history ($113 billion at stake). I am an active speaker and have given guest lectures at the Wharton School of Business, Columbia Business School, and at NYU Stern School of Business. I have been involved with the JOBS Act since inception and was invited to the White House and the US House of Representatives to provide my stands on the new regulatory changes concerning fundraising online

Source: https://www.forbes.com

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