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Socially Responsible Investing

2014-04-29T17:43:00Z

This month, as we celebrated another Earth Day, I thought it would be appropriate to talk a little bit about Socially Responsible Investing (SRI).

According to the website Investopedia, “ Common themes for socially responsible investments include avoiding investment in companies that produce or sell addictive substances (like alcohol, gambling and tobacco) and seeking out companies engaged in environmental sustainability and alternative energy/clean technology efforts.”*

Several years ago, as I was researching SRI options, I found that most mutual fund approaches fell into two categories. There were the large name brand companies that had lots of funds to choose from, but only one or two SRI options. And, there were the smaller fund companies that were exclusively SRI, but didn’t really have a good selection of funds. Then there were the Calvert Funds. With about $13 billion in assets under management and over 40 separate funds, Calvert has the best of both worlds.

What I really liked about the Calvert Funds is their comprehensive approach to socially responsible and sustainable investing. Not only do they filter out the usual suspects, they take additional steps aimed at improving the world in which we live. For example, by using the voting power of stocks, the funds try to effect change in the companies that they own. Among the issues they try to address are: diversity in the workplace, employee rights, and environmental sustainability. Outside of shareholder advocacy, Calvert also tries to improve communities by providing aid for affordable housing, human rights and reducing pollution.

Finally, through the Calvert Foundation, low interest loans are made to small businesses in communities in need. These loans are typically used in low income areas to promote economic growth, support local organizations, empower women, and build healthy communities. Many of the Calvert funds have invested in the Community Investment Notes that fund these loans.

In the last few years, socially responsible investing has become much more important and in demand. Many of my clients have asked about it as they want their investments to have a financial and social return. To find out more about socially responsible investing, please contact Bre Lowry at 206-361-5312 or breannal@veritycu.com to set up an appointment with a Financial Advisor.

Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. Verity Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members.

*http://www.investopedia.com/terms/s/sri.asp

Bold Does NOT Equal Bossy

2014-04-25T18:28:00Z

In an attempt to encourage more female leaders, Sheryl Sandberg and others have started a campaign against the term "Bossy." Sandberg wants 50% of all business executives to be female. One way for women to get there is to be more bold in their careers. Female executives at Verity agree that women need to exhibit more confidence in their careers and be willing to take more risks Heads up, everyone, there is a ban on the term "bossy" and the leaders want you to join their campaign.

Sheryl Sandberg, COO of Facebook, Condoleezza Rice, Director of Stanford University’s Global Center for Business and the Economy, and Anna Maria Chavez, CEO of the Girl Scouts, have joined together with other celebrities to put a ban on the term “bossy.” They claim that “bossy” is applied to girls when they are being assertive, bold and courageous, whereas boys are simply called assertive, bold or courageous. This is an effort to change society’s treatment of girls and enable girls to grow into confident leaders.

This is Sandberg’s latest step to encourage women and girls to take on leadership roles; despite women having ascended the corporate ladder to the C-Suite, there is still not equality at that level. Women represent only 18% of the total executive roles in businesses across the country and only 5% in Fortune 500 companies. Sandberg wants 50% across the board.

The quest for 50% is bold and Sandberg’s tactics are even more so. She continues to approach the issue from the perspective that WOMEN can change this picture. They can be more of what the term, “bossy” embodies: assertive, outspoken, and fearless about leading regardless of what others have to say. Despite receiving much criticism for her approach, many other female leaders agree with her.

In an attempt to understand this issue better, I spoke with the two Verity Credit Union female executives, Sherry Steckly and Sarah Slonsky. Steckly is Verity’s Chief Operating Officer and Slonsky is our Chief Lending Officer and the head of CUHMS and Business Lending. I asked each her perspective on why women executives and board members are still so rare.

Surprisingly to me, Steckly and Slonsky had messages similar to Sheryl Sandberg’s, though neither had read her book, Lean In, or any of the press about the banning bossy campaign. In our discussions, both wanted women to be more confident and assertive in their careers. They felt that this change in attitude would greatly increase the number of women in executive roles.

Steckly spoke about how confidence plays a role asking for raises, promotions, and bonuses. In her experience, men are comfortable walking into their supervisor’s office to openly request a desired pay increase or promotion, talking up their successes, skills, and contributions. She found that her female employees are less apt to make such bold requests. Most women wait for the manager to give them a raise or bonus or to offer the next position. This leaves the women behind because those handouts just don’t happen.

Similarly, Slonsky feels that women tend to be more humble about their accomplishments. She says this isn’t a bad thing, but humility is not going to get a woman recognized for her achievements. Slonsky believes that structurally, all the elements are in place for women to excel in business. Of course there are many improvements that can be made across the board involving work/family balance and how business supports all people who are raising families (this will be the topic of another post). That aside, Slonsky believes that the biggest hurdle for women is to get out of their comfort zone and take risks in their careers.

Steckly's and Slonsky’s career paths are positive examples to all women. Steckly became an executive by being curious, willing to challenge herself, and open to taking on new roles. Slonsky became an executive at age 36 by reaching out and taking opportunities. She seeks out each next challenge rather than waiting for one to fall into her lap. Both want to see more women doing the same thing.

Verity's female executives echo the need for removing the stigma against women being outspoken leaders. Women have knowingly or unconsciously learned to hold back in an attempt to fulfill societal norms and avoid criticism. But here is the rub. It is not just women’s careers that suffer from this trend. It is business itself.

In the introduction of Lean In, Sandberg refers to mega-investor Warren Buffet as attributing part of his success to the fact that, “he was competing with only half the population.” After decades of women making strides in business, it is time for us to have a more equal say. Think of what could be done if women had an equal role in what and how things were done in businesses across the country and the world.

Just like men, not all women want to be C-Suite executives. For those women who are driven to lead, however, female executive role models do exist and their message is clear. We need you. Their advice:

<center>Speak up. Take the risk. Be bold.</center>

Along the way, some may call you bossy to get you to back down. Along the way you may be uncertain and not truly believe you can do it. When that happens, look to the women ahead of you. Take a deep breath and step up anyway.

Present with Confidence!

2014-04-18T14:25:00Z

The Verity Experience presents Rebecca Osman, founder of Your Stage Coach. Rebecca helps business people present themselves and their ideas with confidence and clarity.

Join Rebecca on Thursday, May 1, 2014 from 6 - 8pm at Verity Credit Union's headquarters office in the Northgate area - 11027 Meridian Avenue North, Seattle, 98133 - for this interactive workshop. In this workshop, you will:

understand the 3 keys to building credibility and influence with your audience
gain strategies for conquering your nerves and taming your butterflies
discover the secret to walking away from your presentations feeling successful

Attendance is FREE with pre-registation: Click here to pre-register.

Questions? Call 206.618.2170 or email Rebecca.

Looking forward to see you at this Verity Experience! V2

Senior MSR

2014-04-11T22:27:00Z

My Senior Member Service Representative training was put on hold because of a staffing switch in the Auburn branch but has begun again in full speed! I’m so excited to get back on track and learn new things. Our branch has been so busy the last few quarters that I can’t wait to jump in and be able to help more on the platform! I feel like I have the best support anyone could ask for in a management team! Can’t to blog about my first day on the platform!

Heartbleed Update

2014-04-10T18:51:00Z

By now, you've probably heard about the Heartbleed Vulnerability, a vulnerability effecting systems that rely on specific versions of OpenSSL encryption.

Upon hearing the news of Heartbleed defect, we began to investigate our services and any vulnerabilities we, and in turn our members, could be exposed to. Verity has been reaching out to our vendors to assess our risk.

The good news is that our website and Online Branch vendors assured us we are not at risk. We've been in contact with our other vendors as well and have confirmed that they are not at risk, and are taking steps to continue to mitigate risk. We will continue to monitor the situation with each of them and everyone is taking this threat very seriously.

Regarding the websites that list out sites that may be "vulnerable" to this virus, our IT department has said that these websites are determining if our web servers useOpenSSL, regardless of version. Verity's website does use OpenSSL, but the version we use is not vulnerable to the Heartbleed defect.

We encourage to you to regularly update your passwords, preferably every 90 days, as a best-practice. If you find you are affected in your personal activities, please update your passwords. If the service you use has not implemented a fix yet, you will need to update your password again once they have. If there are updates to our status that have an impact on our members, we will post them in the comments section of this post.

If you want some more information about Heartbleed, here are some websites for more information:

Stay Oso Strong - Donate Online

2014-04-02T19:46:00Z

I am sure pretty much everyone in the area knows by now that recently a massive mudslide forever changed the community of Oso, Washington. The loss of lives and family homes is overwhelming - this mudslide is the most horrific natural disaster seen in the Northwest in decades. Many of the victims and their surviving family are credit union members like you.

The credit unions of Washington and Oregon are banding together to help make a difference. Want to know how you can help too? The Northwest Credit Union Foundation (NWCUF) has set up a channel for you to make an online contribution. The NWCUF has started off the donation with $5,000 and will work directly with the Snohomish County United Way to ensure that all the donations received go directly to helping the families impacted by the mudslide.

Imagine what the 4.5 million credit union members in the Northwest could do to help these victims and their families.

If you’re able to make your donation by Wednesday, April 9, it will ensure quick delivery to the victims. Thank you for your support.

The Easter Bunny is coming to Alderwood

2014-03-31T19:31:00Z

The Easter Bunny will be taking a break from egg preparations this weekend and visiting his friends at the Alderwood Branch.

Verity friends and family are invited to come visit with the Easter Bunny and get photos taken on Saturday, April 5. The family-friendly event is free and will also feature cookie decorating for those kids (and adults) needing an afternoon sugar rush.

We hope to see you there!

When: Saturday, April 5

Time: 10:00 a.m. - 2:00 p.m.

Where: Alderwood Branch, 18530 33rd Ave W, Lynnwood, WA 98037

Phone: (425) 712-0379

Download a flyer here.

Tax Time

2014-03-28T20:05:00Z

Tax time is a good time to think about your retirement planning.

It’s tax time again, and a great time to talk about IRA accounts. (as if there is a bad time to talk about IRA’s…) IRA’s (Individual Retirement Arrangements) are accounts that are used to help people save for retirement. By providing significant tax advantages, IRA’s incentivize people to invest for the long term.

IRA accounts were first introduced in 1975 as a way to help people save for retirement in their own accounts. By the early 70’s, the pension system in corporate America was becoming increasingly underfunded. So, Congress passed the Employee Retirement Income Security Act (ERISA) in 1974. Along with regulating pension plans, retirement plans and health care plans, ERISA established the IRA.

In the beginning, the IRA contribution limit was the lesser of the following: 15% of your gross income or $1,500. Also, IRA’s were only available to people who were not covered by employer-sponsored retirement plans (this has since changed). The money you put into your IRA account was tax deductible, and when you pulled the money out, it would be taxable as income. ERISA also set a penalty of 10% if money was withdrawn before the age of 59 ½.

Throughout the years, there have been many changes to the rules governing IRA’s. Contribution limits were raised (including a provision for “catch up contributions”), income limitations were imposed and the Roth IRA was created. This is why they may seem so complicated today. So, let me give you a few basics about IRA’s:

Traditional IRA’s: Your contribution is tax deductible,* and when you pull out the money (after age 59 ½) it is fully taxable.
Roth IRA’s: You contribution is not tax deductible, and when you pull out the money (after age 59 ½) it is tax free.
Traditional vs. Roth: Neither one is intrinsically better than the other. Deciding which is best for you will depend on your individual situation.
IRA’s are not investments. They are accounts that can hold a variety of different kinds of investments. Stocks, bonds, and mutual funds are just a few of the types of investments you can hold in an IRA.
Contribution limits (2014): $5,500 with an additional $1,000 allowed if you are 50 or older.
Contributions for 2013 can be made until April 15, 2014 and are one of the few things you can still do that may lower your previous year’s taxable income.*

Investing for retirement is one of the most important things you can do. But it definitely can be confusing. And, IRA accounts can be an important component of your overall portfolio. Meeting with a ** CFS Financial Advisor at Verity Credit Union can be a helpful step in creating a sound retirement plan. If we can be of help, please feel free to contact Bre Lowry at (206) 361-5312 to set up an appointment.

*Income limitations may apply

** Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. Verity Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members.

Risk vs Reward

2014-03-28T16:13:00Z

Our personality can be our best friend or worst enemy when it comes to financial decisions and risk taking.

Roll the clock back thirty years while water skiing in my youth off the coast of Miami. I would quite often see rays and sharks, occasionally skiing over them as they cruised a couple feet below the surface. It would happen very quickly but you still had to make that decision to move over and actually go over them. What’s the return for that risk?...well maybe a thrill, really cool to see those creatures close up if even so swiftly. The risk?... well if you fall I suppose you’re in the water with a shark which was just really, really startled. The thinking was they would be running for the watery hills anyway, but the likelihood of falling just at that moment was slim to none. We generally look for more return on our investments as we move through life and the risks may not always be what they seem.

We hear it all the time, risk versus reward. In the Mortgage Industry it’s all about borrowers, loans, investments, balance sheets, and navigating those financial waters to successful returns. As a wise and cautious consumer one examines the benefits and risks of home ownership vs renting, or a car’s safety versus the price of the car. To say the least we face the decision daily and if we’re lucky or smart enough to have advisors, we seek their expertise when needed.

Buying a home involves risk and reward like most things and it may not be safe if you don’t know what you’re doing. Some may even say it’s not smart in this seller’s market; others drive the risk with timely property investments. The reward may be steady income stream with rental properties, or a warm fireplace or beautiful view of our own. For my part the best rewards, and adventures, have been found well off the beaten path. While this occasionally leads to challenging situations, knowing there is a risk and proceeding anyway is a matter of assessment, along with the belief that something better awaits.

Climbing 2,000 feet in 25 minutes to catch a spellbinding sunset, one is not supposed to become waylaid in the backcountry darkness with no cell phone and only the stars to navigate back to safety. Our personality can be our best friend or worst enemy when it comes to financial decisions and risk taking. A willingness to adopt risk as a vehicle toward personal growth and experience, as well as financial well-being, will not be everyone’s mantra. What we personally get in return for the risks we take, and what risks we are comfortable taking vary by individual. Seattle’s home market is not for the faint of heart right now.

Coming back down in complete darkness… yeah that was kind of crazy. Better planning would have reduced the risk. As with buying a home, spontaneity may not be the way to go. If it’s worth the risk for you - plan ahead, get expert help, persevere, and enjoy the view! However you pull it off, the experience will last a lifetime!

Microsoft Discontinues Support for Windows XP Operating Systems

2014-03-21T15:57:00Z

Did you know that Microsoft is ending its support for the Windows XP operating system after April 8, 2014?

What does the end of support mean? According to Microsoft it means Windows XP users should take action. There will be no new security updates, nonsecurity hotfixes, free or paid assisted support options or online technical content updates after April 8, 2014. Running Windows XP after April 8, 2014 may expose your computer to potential security risks, because unsupported and unpatched computer operating systems are vulnerable to security risks.

To learn more about this change and what you should do to make sure your computer isn't at risk, Microsoft has a page on their website explaining your options.

Rent vs. Buy: Which option is right for you?

2014-03-13T21:51:00Z

There are advantages and disadvantages to both renting and buying the home you live in; the choice depends on your situation and your goals.

Financially, purchasing is a better long term decision then renting and in the right market conditions can even pay-off in the short-term. Today, rates are still at historical lows and appreciation is very strong. So, besides our current low rates and appreciation (with a lot of room left to grow), are there any general principles that make buying a better decision than renting?

1. Equity:
When it comes to buying vs. renting the most common comparison is equity. With renting, you do not accumulate equity whereas homeowners can build equity, in multiple ways: Principle reduction, sweat equity and appreciation.

Principle reduction: Your payment is comprised of 4 parts: Principle, Interest, Taxes and Insurance (PITI). The principle portion of your mortgage is reducing the loan balance with each payment, which can be recovered when you move away and sell your home. This reduction starts off small compared to interest, but with each payment the reduction grows thereby a larger portion of your monthly payment is building equity in your property. A rent payment has just one portion…rent.
Sweat Equity: If you fell out of love with the unexplainably peach color of your home…you have the freedom to paint it any color you choose. Your reward: Home improvements increase the value of your property, which is also called sweat equity. According to HGTV when comparing different home improvements, a new front door has the highest return on investment at 102%. Most improvements like kitchen or bathroom remodels return about 60-80% of your investment. Really though, recouping 75 cents of your dollar while increasing your comfort and lifestyle sounds like a win/win and is another advantage of owning.
Appreciation: According to the National Association of Realtors the prices of existing homes increased by 5.4% annually from 1968 to 2009 on average. In Seattle the current year-over-year growth is 13.2% according to the Case-Shiller Home Price Index. Obviously this last year has been a great year for home appreciation and most economists believe 2014 will see this return closer to normal growth at around 6%. A $200,000 home appreciating at just 5.4% is worth $338,404 in 10 years. Appreciation is a wonderful thing.

So, watching your equity grow because each month a portion of your payment is lowering your loan balance and your home is appreciating at 5.4% is the great advantage of equity. Take into account the increased value from the new front door and that new pickleball court you use every weekend and you're quickly seeing the value of home ownership.

2. Leverage:
Owning real estate's big win is in leverage. Using leverage to buy a home you can afford is one of the greatest financial advantages of owning real estate over any other asset (depending on your market) and especially renting. The stock market may return more on average in the long run, but you cannot live in your mutual fund. As real estate appreciates, your appreciation is not only on the amount you invested (down payment) but on the entire value of your home.

Example: If you put 5% down on a $300,000 home and it appreciates 5% in the first year your equity doubles from $15,000 to $30,000 in just one year.

Of course, the cost of selling real estate is much greater than the cost of selling stocks which is why no financial planner advises real estate as a short-term investment. Plus, the national average for home appreciation is about 5% while rent typically grows at 3% year-over-year in non rent-controlled markets. Both numbers favor the homeowners.

3. Having a home, not just a place of residence:
Owning a home is not just about the financial decision but also, if not more, about the lifestyle and freedom of owning the roof over your head. An apartment or rental can be a home too, but saving your money so you can build that dream deck or planting the perfect garden…that for many is the big winner in the rent vs. buy decision.

There are also some advantages to renting:

1. Mobility:
Short-term leases are options in renting but they are not with buying. If you expect to move within 2-3 years, renting for now might be a better option for you.

2. Less Responsibility:
There are responsibilities of homeownership such as maintaining a home and paying for repairs that renters do not have to pay for.

Honestly, paying your mortgage off and living without a rent or mortgage payment should be the ultimate goal of homeownership. Also, it is important that you use the right mortgage product for your individual goals and situation. If you’re thinking of buying, take a home buying class to learn more. If you need help saving, meeting with a Verity finance counselor to create a plan for you is a great decision. Like the famous quote from Seneca, “Luck is what happens when preparation meets opportunity.” – Just sayin’.

Daylight Savings

2014-03-13T19:11:00Z

You can’t put it in a piggy bank, but that’s ok. I love Daylight Savings. Can we be clear about that up front? Sure, it makes life complicated on any creature who doesn’t understand the concept of time or why we change our clocks twice a year… And it's a little strange that we change our clocks because of how things were back when railroads were the rulers of the empire that was the US, rather than today's more global economy... But for all the challenges that come up (lost hour of sleep, leaving for work in the dark again), I still think it can’t be beat.

Why? Cause we have a whole extra hour of daylight after work, people! Think of what you can DO with that! I’ll give you my favorites:

Go for a walk in the sunshine.
...or cover more ground on a bike ride! (Don't have a bike? Getya one!
Count the crocuses and daffodils sprouting up in your garden...
...or count all the people showing up in a park.
Make friends with Alleycat Acres, and take home some fresh produce.
Better yet, grab a friend and help a pea patch grow food for area food banks
Maybe head out on the water...
...or head up in the sky to catch that sunset over Elliott Bay.

Let's shake off these last vestiges of winter, and get ready for springtime!

What's your favorite thing to do with the extra hour of daylight after work? Please share in the comments!

Budgeting 101

2014-03-10T21:37:00Z

Budgeting - the dreaded task of committing to yourself to handling your finances better, or at least know where your money goes each month. But, there is good news! It doesn’t have to be difficult or time consuming. The basic premise is to have a solid grasp of your monthly income and expenses. Budgets have two components: fixed and flexible expenses. A third component is savings, but you must first determine if you are positioned to do so or if this is an immediate goal to address.

Fixed expenses are your core expenses, such as housing, utilities, insurance and debt. Because there is much competition for consumers business, it is a good practice to contact folks like your insurance agent, cable company and cell phone carriers to review your rates annually. You can determine if you are still receiving a competitive price and evaluate whether you are actually using everything you are paying for.

Flexible expenses are typically related to entertainment, pocket money (think coffee, small purchases, etc.) meals out, groceries, etc. These are expenses you can change to accomplish new goals.

Most people will feel strongly about creating and following a budget while preparing for a major purchase or a life changing event. Others will begin budgeting when they become tired of being in debt. These are all good motivations, but budgeting should really be a part of your monthly routine even when there isn’t a “reason." Budgeting helps keep goals at the front of your mind and can keep your spending in perspective. Without that quick check up (budgeting), we don’t tend to pay as close of attention to our spending habits.

So, how do you create a budget and actually make it work? Here are a few tips:

Keep your budgeting plan simple.

Evaluate monthly due dates and align them with your paydays. A budget plan can be as simple as a notebook with Payday 1, 2, etc. and a list of who you need to pay and the amount. If you need more detail and help tracking expenses, there are great online resources. Mint.com is popular site, and Verity provides tools in Online Branch.

Understand that budgets don’t turn out perfectly each month. Evaluate what went right and what went wrong. Adjust for the next month and move forward!

Use cash instead of a debit card until you develop a routine. It is harder to let go of hard earned cash than to swipe a debit card.

Use a checkbook register or an electronic tracking sheet to record your spending. This keeps you mindful of how you are spending your money. It is a way of being in constant motion to achieve desired results.

Develop a savings plan for expenses that are not billed monthly. These expenses include car maintenance, medical deductibles, etc.

Pay down your debt. Carrying debt means your money is pre-spent and carrying debt can be expensive. Don’t let your credit report be impacted by carrying too much debt. It will lead to higher rates on future purchases.

Practice paying for a major purchase to see how it impacts your budget. If you are considering a home purchase, increase your budget to include the new costs and practice it for a while. Put the money into savings. This will give you a good idea of adjustments you may need to make to afford the new home.

Utilize budgeting and financial counseling services for help, tips, and free consultations. Verity Credit Union has Financial Counselors who help their members for free! Take us up on an appointment and start your budgeting process today! Balancepro.net has many valuable tools and offers debt management plans for those who need them!

If you would like assistance in creating a new budget for yourself, contact me. I’d love to help you!

Surviving toddlerhood

2014-03-04T21:09:00Z

My son has officially entered toddlerhood, which is making me wonder how any of us survive that stage and become well-functioning adults.

Watching him learn to walk is both thrilling and terrifying. He's beyond the tentative steps and is now trying to run, but unfortunately he hasn't quite figured out that he needs to watch where he's going. Or that he shouldn't run while holding large objects. Or that he can't stand up underneath the dining room table.

Every day, he falls, bumps his head as he tries to walk underneath something, or smacks a body part into a hard object as he's flailing around. When I drop Peanut off at daycare, I give a "bumps and bruises" report, pointing out any new marks from the last time they saw him. And when my husband or I pick him up, our daycare gives us an update, pointing out any new bruises that happened on their watch.

I want to bubble wrap him. Especially his head.

I know that most kids go through this stage and that it's completely normal. Walking (and falling) helps him learn spatial awareness, cause and effect, and the fact that when he falls, he should use his hands to break his fall, not his head. But as a parent, it is incredibly nerve-wracking to watch. I'm constantly seeing sharp corners and potential hazards in the world. And since I can't make the entire world soft and squishy, I keep dreaming about putting Peanut in a protective bubble to save him from himself.

My youngest sister was exactly like Peanut, always running into things or accidentally cutting herself. My mom didn't leave the house without being armed with band aids and an ice pack. And yet, my sister survived, just as I did. And I know Peanut will to... my nerves may just be shot by the time he's 2.

So, if you ever see a cute, blond boy running around with a bubble wrap helmet, you'll know who he belongs to and that the head gear was created out of love.

What's in a name brand?

2014-02-26T22:07:00Z

Many years ago, my girlfriend’s best friend and her husband declared loudly and definitively that they were boycotting Disney. Now, this couple was somewhat oblivious, but that’s not what I’m writing about today. I had just started my career as a financial advisor and was spending a lot of time researching companies and investments. I found it very interesting how several brand names were often owned by one company. And, I remember thinking, “Do these people know that the ABC Network and ESPN are owned by Disney?”

Boycotts aside, I believe knowing this brand/company relationship is important when choosing investments. In a play on Warren Buffett’s “invest in what you know,” I’d also say, “know what you invest in.” Some are easy. For instance, iPods and iPads are owned and sold by Apple. Microsoft Office? Microsoft Corporation.

But some are a little fuzzier. Head & Shoulders, Herbal Essences, Pantene, and Vidal Sassoon are all hair care brands made and marketed by Procter and Gamble, one of the largest U.S. companies. Mondelez is the foreign sounding name of the spinoff from Kraft Foods. This company is based in Deerfield, IL and produces brands such as Nabisco (Ritz, Chips Ahoy!, Oreos, etc), Gevalia, Tang, Toblerone and Cadbury. They also sell Dentyne, Stride and Trident gums. Speaking of food brands, the largest food maker in the world, Nestle, is a company based in Switzerland. We all know their famous lines of chocolate: Crunch Bars, Kit Kat and Toll House Morsels, but they also sell Gerber baby food, Lean Cuisine, Stouffer’s, Dreyer’s ice cream and Purina pet food.

Then there are the fun ones. As Netflix becomes more of a household utility, content providers are becoming increasingly important. MTV, BET, VH-1, and Nickelodeon are all owned by a company called Viacom. They also own Paramount Pictures. And, you know that tiny ice cream company that brings you Cherry Garcia and Chunky Monkey? Ben and Jerry’s is owned by Unilever, a huge European consumer products company (also the maker of Dove soap, Pond’s, and Lipton teas). Finally, one that is near and dear to us in the Pacific Northwest. Washington wine maker, Chateau Ste. Michelle is owned by Altria, the same company that owns cigarette maker Phillip Morris USA.

Now, all of this may be little more than fun pieces of trivia. But, I would argue that knowing what you put your money into (both investment-wise and purchasing-wise) is important. And these are just a few examples. I’ll leave it to you to find some more. Such as what does Honest Tea (“great-tasting, truly healthy, organic beverages”) have to do with Coca-Cola?