SUNDAY, DECEMBER 15, 2013
WSJ 2
PERSONAL BUSINESS
Holiday Gifts for the Money-Minded BY SIMON CONSTABLE If there’s one time of year when people are apt to break the budget, it’s Christmas. Here are some gifts that at least stand a chance of nurturing the money-savvy gene. What’s more, we have a gift idea for pocketbooks of all sizes. One Antarctic Dollar ($1) Giving cash is an old standby, but often not special. So what about beautiful currency from far-flung lands? Consider buying Antarctica dollar bills, at one per U.S. dollar (plus shipping direct from www.bankofantarctica.com). These notes, produced to commemorate the centennial of the 1911 Amundsen expedition (the first humans to reach the pole), sport stunning pictures of penguins in their natural habitat, the Antarctic. But there’s a catch: “Our bills are not legal tender money of Antarctica or anywhere else,” states the Antarctica Overseas Exchange Office, which controls the funny money. That said, the notes are redeemable one-for-one for U.S. dollars until their expiration date (printed on each bill).
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Piggy Bank ($20) There is a reason that piggy banks remain popular with young and old alike. They help make saving pennies, nickels and dimes easy, and—dare I say it—fun. But why pay shedloads of cash for a fancy one—and violate the penny-pinching spirit— when you can decorate your own for less? Instead, consider one with a chalkboard surface that you can draw on, clean and then redraw to your heart’s content. There is a wide selection, including the CapitaLIST Pig. It’s available from various web outlets, including Fab.com, Fancy.com and Amazon.com.
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Vintage Monopoly Set from the 1930s to 1940s ($40+) Who doesn’t love playing Monopoly? The board game was born in the Depression years and provides instant lessons in
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how to make a buck. If regular Monopoly is fun, then surely a vintage set dating back decades has to be better. You’ll find buying an old or vintage set surprisingly inexpensive: You can get a used set from the 1930s for around $40 on eBay.com. You can also pay into the hundreds of dollars for mint-condition sets.
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Sterling-Silver Tiffany Money Clip ($170 plus $30 to engrave) Few things say “stylish, Old World gentleman” and “financial responsibility” quite like an engraved money clip. (Sterling means the silver is at least 92.5% pure.) Expect this potential heirloom to get better with age as it
develops a soft patina from rattling around your loved one’s pocket. That “soft” shine comes from lots of tiny scratches in the surface of the metal. Make it extra special by giving an Antarctica dollar bill with it (see above).
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Rare Economics Books ($7,500 to $10,000) If you’re willing to drop a small fortune, consider giving a rare and collectible economics book. A 1936 first edition of John Maynard Keynes’ classic “General Theory” will set you back around $10,000, says Matthew Raptis, proprietor of Brattleboro, Vt.-based Raptis Rare Books. Of course, Keynes famously argued that government spend-
ENCORE
ing could rescue a flagging economy, a contentious assertion to this day. If Keynes doesn’t fit your ideology then try a first edition of Milton Friedman’s classic, “A Monetary History of the U.S.,” at around $7,500. Along with coauthor Anna Schwartz, Friedman gave birth to the monetarist school of economic thought. Socalled free-marketeers tend to love Friedman and Schwartz. Buyers of these classic texts are generally hedge-fund managers and other Wall Street executives, and they tend to favor Friedman over Keynes, Mr. Raptis says. Mr. Constable is the host of WSJ Live’s News Hub show, which airs weekdays at 8:30 am ET on WSJ.com.
AL’S EMPORIUM
Happy Birthday, Ms. Barra BY AL LEWIS
Mary Barra, the new chief executive of General Motors, was born on Sunday, Dec. 24, 1961, the same day as me. When you are born on this day, you don't grow up expecting anything to be handed to you. If anyone gives you a gift, they say, “Here, this is for Christmas and your birthday.” I bet this keeps Ms. Barra humble. Over the past week, she became a powerful symbol of everything GM has done right since its emergence from bankruptcy in 2009. She is nothing like the outof-touch suits who had slowly brought GM to ruin. Her father worked at GM as a tool-and-die maker. She started working there as an intern 33 years ago. She earned a bachelor’s degree in electrical engineering from Kettering University and an M.B.A. from Stanford University. She led development of the auto maker’s new truck line, its seventh-generation Corvette, some retooled Cadillacs and the 2014 Impala—all critically acclaimed successes. GM reported a $4.3 billion profit for the first nine months of this year. Ms. Barra was a key part of the management team. But here’s a little advice from one 1961-vintage Christmas Eve baby to another: � Don’t start believing the headlines about GM’s turnaround. It wasn't so terribly amazing, given a $49.5 billion bailout. Additionally, the bankruptcy process allowed GM to ditch tens of billions in debt, shutter rusting plants and abandon thousands of employees. Most struggling businesses could succeed for a long time if they could get rid of their costs. � Remember that car sales have been up because interest rates have been down. Nothing’s changed since the 2008 financial crisis—except fewer people have good-paying jobs. Easy credit is what sells cars.
� Don’t brag about stock performance. GM stock trades around $40, about 21% above its 2010 initial public offering price. The stock market, since that time, has risen more than 50%. � Remember that to many people, GM will always be “Government Motors.” The Treasury, which once owned nearly 61% of GM’s stock, recently sold the last of its shares, culminating in a $10.5 billion loss to the taxpayers. When Mitt Romney was running for president, he called this “crony capitalism.” � Always be ready to prove that the bailout was worth it. Start with this: The Center for Automotive Research in Ann Arbor, Mich., released a report last week concluding that the bailout of GM and Chrysler saved 2.6 million jobs and that a collapse would have cost the government $105 billion in reduced tax and Social Security collections. � Market the Chevy Volt as a workingman’s Tesla. For all the hype about Tesla, it just makes pricey electric toys for rich kids. � Sell the Corvette as a midlife crisis for people who can’t afford Lamborghinis. A more complete package would include hair-replacement solutions. � Advertise the Camaro like this: “You’re never too old to drive the car you wished you had in 1969.” � Don’t engage in discussions about women CEOs. It’s not productive. No woman could ever screw up GM as much as a man. Enough said. � Correct people who say “she’s a car guy.” People don’t say things like this about men. No one ever said of Lululemon founder Chip Wilson: “He’s a yoga-fashion gal.” � Remember, you’re not special. You are the fifth CEO at GM in four years. And like me, you’ve probably spent a few birthdays competing for attention with baby Jesus.
Al Lewis is a columnist based in Denver. He blogs at tellittoal.com; his email address is al.lewis@tellittoal.com
CAREERS
IRA Charity Provision Expires Soon Be Your Own Brand, and Promote It Time is running out for a popular tax provision that allows owners of individual retirement accounts who are 70½ or older to save on taxes when donating to charity. The provision, which expires Dec. 31 (though Congress could reauthorize it), allows individuals ages 70½ or older to donate up to $100,000 of IRA assets to charity without reporting the withdrawal as taxable income. By reducing taxable income, the provision can help retirees avoid or reduce a host of taxes and penalties—including many tax increases that took effect this year. It can also count toward the annual required minimum distribution that people 70½ or older must take from a traditional IRA. Those who are charitably inclined are likely to fare better with the charitable IRA rollover provision than they would by withdrawing money from their IRAs, paying income taxes, and writing checks to charity, says Ed Slott, an IRA expert in Rockville Centre, N.Y.
Consider what would happen with a $10,000 gift to your alma mater. If you don’t itemize your deductions, you would normally receive no tax break for the gift. But under the charitable IRA rollover provision, the $10,000 won’t be included in your income. Assuming you are in the 25% tax bracket, that would save you $2,500. If you itemize, you won’t receive a deduction. But the $10,000 IRA withdrawal won’t inflate your taxable income, either. That may help you keep your adjusted gross income below the thresholds at which you would lose some of your deductions and other tax benefits. For example, individuals with more than $200,000 of adjusted gross income and couples with more than $250,000 are subject to the new 3.8% tax on net investment income. Individuals with AGI above $250,000 and couples above $300,000 now start losing personal exemptions and itemized deductions. As income rises, you can also lose deductions for medical expenses, casualty losses and miscellaneous itemized deductions.
The rollover provision can also help taxpayers avoid or reduce taxes on Social Security benefits and avoid higher Medicare Parts B and D premiums, which kick in when adjusted gross income exceeds $85,000 for individuals and $170,000 for couples. To take advantage of the provision, you must be 70½ or older on the day you make the gift. Instruct your IRA custodian to directly transfer the money by Dec. 31 to a qualified charity. Private foundations, donoradvised funds and supporting organizations are not qualified charities, says Conrad Teitell, an attorney at Cummings & Lockwood in Stamford, Conn. The charity must acknowledge the gift in writing, and you cannot receive anything in return. Some prefer to donate appreciated securities from outside their IRAs to take a deduction for the fair-market value while avoiding the capital-gains tax. To see which approach benefits you more, do the math, says Mr. Teitell. Email: encore@wsj.com
TAX TIP
Is There a Tax Break in Your Garage? BY TOM HERMAN
If you use your car for business purposes, you may be eligible for a valuable tax deduction. You might also be eligible if you use your car—or some other type of vehicle, such as a van or truck—for medical purposes, moving or to help charitable organizations. Just be sure to keep good records. It also might help to be aware of a choice you have in calculating your deduction. The easy way is to use the Internal Revenue Service’s optional standard mileage rate. The other option: Deduct your actual expenses. Here are a few details. A few days ago, the IRS announced the optional standard mileage rates for next year: � 56 cents a mile for business miles driven, down from 56.5 cents a mile this year. � 23.5 cents a mile for medical or moving purposes, down from 24 cents a mile this year.
� 14 cents a mile driven “in service of charitable organizations.” The IRS said the standard mileage rate for business is “based on an annual study of the fixed and variable costs of operating an automobile.” The rate for medical and moving purposes is “based on the variable costs” of operating a car. The rate for helping charities is set by statute. If you conclude these rates are too stingy, consider deducting your actual expenses, such as oil, gas, tolls and many other items. (See IRS Publication 17 for more information.) If you use your car for both business and personal purposes, divide your expenses accordingly. The IRS offers an example: You are a contractor and drive your car 20,000 miles during the year, but 8,000 miles are personal use. You can claim only 60% of the costs (12,000 is 60% of 20,000) of operating your car as a business expense. Warning: This can be a sur-
prisingly complex area, including just figuring out the basic question of who is eligible. You may need to consult a trusty tax professional. Most employees and self-employed workers should look at “Figure 26-B: When are Transportation Expenses Deductible?” in IRS Publication 17. “Daily transportation expenses you incur while traveling from home to one or more regular places of business are generally nondeductible commuting expenses,” the IRS says. But there are “many exceptions for deducting transportation expenses, like whether your work location is temporary (inside or outside the metropolitan area), traveling for [the] same trade or business, or if you have a home office.” Send your questions to us at askdowjones.sunday03@wsj.com and include your name, address and telephone number. Questions may be edited; we regret that we cannot answer every letter.
BY DENNIS NISHI
When a friend suggested that he write a blog, Joel Backaler saw it as a good opportunity to share some of his most interesting stories about working as a consultant in China. One of his clients, for example, was the chief executive officer of a state-owned chemical company who lived in a province renowned for hand-pulled noodles. The CEO had a passion for noodles, so he ended up opening a chain of fast-food noodle houses that would offer jobs to laid-off factory workers. “I was surrounded by so many great stories to write about, but I never had an outlet to write about what I was learning through work. It was a passion project,” says Mr. Backaler, who would regularly wake up at 4 a.m. and post new articles to his blog “The China Observer,” before going to the office. He’d also blog on weekends and on holidays. His hard work paid off. Within months, Mr. Backaler became a quoted authority on business in China. His articles were linked to by well-known industry blogs, and he was asked to write on international business topics for Forbes and BusinessWeek. He was also offered a full-time job in 2011 to start up Asian-Pacific operations for the Frontier Strategy Group, a Washington, D.C.based advisory firm. Mr. Backaler is now working on a book about the rise of Chinese companies in overseas markets for Palgrave Macmillan entitled “China Goes West.” In the current competitive job climate, hard work alone doesn’t always get noticed, say career experts. Good employees are getting passed up for new opportunities because companies may not be aware of their full capabilities. That’s where branding can be used to promote your value to your busy bosses, peers and anybody else that can help you from inside and outside the company. Through a coordinated networking, social-media and blogging effort, you can become the go-to specialist in your field. � First, think strategically. How do you want to be perceived by the world? You should choose a unique specialty to promote that is not based on any other brands, says
Ralph Butler
BY ANNE TERGESEN
Dan Schawbel, a workplace expert from Boston and author of “Promote Yourself: The New Rules of Career Success.” “Instead of being a LinkedIn expert, you could become a LinkedIn expert for baby boomers. It’s important to find your own niche that sets you apart from your peers.” � Fill any knowledge or skill gaps. Especially if you’re looking to advance, ask for honest feedback from co-workers. You may find that you need to shift to a different functional area within the company, for example, to get that international assignment that you want, says Dorie Clark, a branding and management consultant from Somerville, Mass., and author of “Reinventing You.” � Don’t be self-conscious. It’s OK to promote your accomplishments. Bragging can be a good way to increase visibility. Just don’t make self-promotion the only thing that you tweet or blog about, says Mr. Schawbel. You want to attract new readers by becoming a resource or mentor for colleagues and by reaching out and participating in online discussions in company forums or in LinkedIn groups. � Blog regularly. It may seem old-fashioned when compared with Facebook, Twitter and Pinterest, but blogging is the best way to showcase what you do and how you think—especially if you are a knowledge worker known for your ideas. If you make the effort to blog, you are setting yourself apart and showing that you are a thought leader in your com-
pany or your field, as opposed to being just a commodity, says Ms. Clark. “You don’t want to be a commodity, since there’s somebody out there, literally, that’s willing to do your job for $3 an hour. You have to provide a compelling reason why you’re worth the money. Otherwise, it’s a race to the bottom.” It’s important to establish your brand outside of your company since that can help you get recognized from within, says Ms. Clark. “So if you’re being asked to speak as an expert by media and winning awards for your blog, that may compel the powers that be at your company to reevaluate you.” � Don’t stagnate. Be proactive with your brand. You may need to reinvent yourself multiple times to keep up with shifting industry trends and changes to your career fortunes, like recovering from a layoff. Make the best of your situation. Even if you’re in a job that you don’t like, you can continue to broadcast your expertise through social media and your blog and use that experience to flush out new opportunities. � No surprises. Tell your boss what you plan to do. You don’t want him or her to stumble on your blog accidentally and find that you’ve been posting 1,000-word stories throughout the day when you should be working, says Mr. Schawbel. It helps to get your boss’s sanction. He or she may even make it part of your job. Otherwise, do it outside of work. Email: sjdnishi@gmail.com