November 2013


www.hamptonroadsmessenger.com


Small Businesses Earn More Green by 'Going Green'


Quick Tips FROM PAGE 1


Consider writing down a list of your financial institutions and account numbers and keeping it in a safe place that would be accessible by your loved ones in an emergency. An attorney can help you decide if you should have a legal document known as a power of attorney (POA), which would allow one or more people you designate to make key decisions with as much or as little of your financial or personal life as you choose.


Note that a “durable” POA takes


Enoch Shin, owner of Turbo Tire in Oakland, Calif., says energy consumption at his shop fell 40 percent after he switched over to a more modern and efficient lighting system. Photo by: Aruna Lee


BY ARUNA LEE Korean small businesses in


California are challenging the naysayers who claim that economic growth coupled with sound environmental practice is not possible. Thanks in large part to government and private incentive programs, they have come to the fore in implementing emerging technologies beneficial for the environment and their bottom line.


In fact, many owners are “going


green” precisely because of the economic benefits.


“Korean businesses have adopted


green technologies largely in order to reduce their energy bills,” says Jason Lee, secretary general of the Korean Chamber of Commerce in Los Angeles. The city is home to one of the largest Korean communities in the country.


Statewide there are just over


450,000 Koreans residing in California, according to recent census figures. Many are small business owners, accounting for roughly 2 percent – or 63,365 – of all small businesses in the state, data from the census show. In 2007, the latest date such figures are available, they tallied nearly $33 billion in economic activity.


A Model of Efficiency Hesperian Cleaners, located in the


working-class Bay Area suburb of San Lorenzo, sits along a modest row of businesses just off the freeway linking Oakland to the north and Silicon Valley to the south. In 2007, the store’s owner, Sung Han Lee, switched to a more environmentally-friendly method of cleaning, and has since become something of a hometown hero.


“What do you smell?” asks


Lee from behind the counter, before answering his own question: “Nothing, that’s the point!” Lee, who came to the United States with his family as a teenager, opened his business in 1982. For years he, like many other cleaners, used a toxic substance known as per- chloroethylene, or perc. California banned perc in 2007, because it contributed to air pollution (it is also a known carcinogen), requiring its complete phase-out by 2023. The decision set into motion a series of changes for the dry cleaning industry.


“For over 25 years I had to smell


that odor, whenever I opened my machine,” says Lee. “Because of perc, I was always nauseous and worried about the potential harm it was doing to me and my employees.” Lee switched to the greener wet cleaning -- a water-based cleaning method -- soon


after the perc ban went into effect. A single wet cleaner runs upwards


of $70,000. But thanks in part to an incentive program offered by the state to dry cleaners in California, Lee now operates two such machines, which are manufactured per order in Germany and exported to the United States.


“There have been 134 dry cleaners


that have been granted awards [like the one awarded to Lee],” says Melanie Turner with California’s Air Resources Board. More than a third of them are Korean-owned. Turner says the fund will continue to be offered, “Until there are no longer perc machines in operation in California.”


Since making the switch Lee’s


electricity consumption has fallen by more than half. And despite the term wet cleaning, estimates from the local water district show he is saving an astonishing 673,000 gallons of water per year compared to a traditional dry cleaning establishment.


Seeing the benefits, both to his


business and to the community, Lee says he decided to “go completely green,” adopting everything from more efficient lighting to non-toxic paints and reusable laundry bags.


It’s an attitude reflective of the


wider Asian American community, and to ethnic communities in general across California. A recent poll by the Public Policy Institute of California shows that Asian Americans and other ethnic groups are 20 percentage points ahead of whites when it comes to support for environmental policies. Many believe that rather than waiting for the economy to strengthen, the government should take quick action to address the growing climate threat.


Incentives Help, But More Outreach Needed


Still, not everyone in the Korean


small-business community is singing the praises of green tech.


Miae Chung is the owner of


Nonpareil Cleaners in Beverly Hills. She invested well over $100,000 into two wet cleaning machines once the perc ban went into effect, but says she’s yet to see that investment translate into financial savings for her business.


“The economy has been so bad


… fewer people are willing to pay for cleaners,” she says, adding that some of her customers have complained their clothes don’t come out as well with the new machines.


Chung says that in addition to


the financial incentives, the state and private companies need to do more GOING GREEN PAGE 4


effect when you sign it and remains effective if you become incapacitated, while a “springing” POA generally becomes effective only if and when you have been declared incapacitated. (The laws governing POAs vary from state to state, so consider consulting with an attorney who is knowledgeable about such matters.)


You can also add a co-owner to


a deposit account, but that person has the ability to conduct transactions, including withdrawing money from a checking or savings account, without your prior approval. Your banker or attorney may be able to help you identify other possible alternatives, but you still must think carefully about who you give access to your money. Also, if your co-owner owes a debt and cannot pay it, the funds in your account may be taken to pay the debt.


Spending Money 3. Develop a spending plan for


your retirement. Having a plan for your money and limiting expenses in retirement is important. Consider new ways to cut costs, such as by letting your auto insurer know you no longer drive your car to work. “Consider continuing to put some of your income into savings, especially for short-term goals such as holiday gifts, because that can help you avoid a large, sudden withdrawal from your retirement investments,” added Luke W. Reynolds, Chief of the FDIC’s Outreach and Program Development Section.


4. Consider limiting the mail


and phone calls you receive from marketers. Unsolicited offers from unfamiliar companies can result in you overspending your budget or paying for shoddy merchandise or service from vendors who don’t stand behind their products. Consider being added to the national Do Not Call Registry (call 1-888-382-1222 or visit www. donotcall.gov). Also review the privacy disclosures that banks and other financial companies you do business with send at least once a year. They explain if and how you can limit certain sharing of your information.


“To protect yourself in general,


be wary if someone approaches you unexpectedly to say he or she specializes in helping seniors with home improvements, health cures or financial products. Don’t let anyone make you think you need a good or service that you didn’t need before,” Reynolds said. “In fact, a recent study suggests that many consumers pay hundreds of dollars each year in fees that get automatically charged to their credit card or bank account, often on a monthly basis, for a subscription or other service they probably never really wanted. So closely review your credit card and bank statements to find any charges that you may be able to cancel because they are for products or services you can do without.”


Borrowing Money


The Hampton Roads Messenger 3 5. Review your credit reports even


if you don’t plan to apply for a new loan. Why? Mistakes or other errors on your credit reports could make it more costly for you to buy insurance or borrow money (for example, if your credit card company raises your interest rate on future purchases because of a problem tied to a credit report). And, monitoring your credit reports is a way to detect identity theft. Order your free credit report at least once every 12 months from each of the three main credit bureaus at www.annualcreditreport.com or by calling 1-877-322-8228.


6. Think twice before accepting an


offer to “advance” (lend) you a portion of your future pension, Social Security or other retirement income. These offers are similar to payday loans and they likely involve costly fees and interest. You can also find yourself taking out similar loans in the future — paying additional fees and interest charges — to make up for new cash shortages as you repay the original loan. “If you need to borrow money fast, check with your bank and other financial institutions, and compare the products they offer based on the Annual Percentage Rate,” advised Reynolds.


7. Use credit cards cautiously.


Accumulating debt can be costly, yet many seniors have considerable credit card debt. Before making purchases using your credit card, consider whether you will be able to pay your balance in full when the statement arrives, so you will avoid costly interest charges. Even small purchases can add up to big credit card bills.


8. Remember that a reverse


mortgage will eventually have to be paid back — with interest. Reverse mortgages allow homeowners age 62 or older to borrow against the equity in their homes without having to make monthly payments as long as they meet the terms of their loan agreement, such as staying current on property taxes. However, the money borrowed plus interest must eventually be repaid, usually when you or your heirs sell the house.


“If you do get a reverse mortgage


and you live in the home with your spouse, some experts suggest that both of you sign the reverse mortgage agreement to ensure that the surviving spouse can continue to live in the home if one dies before the other,” Reynolds added.


Earning Money 9. Think about ways to turn a hobby


or another interest into a part-time job. Other possibilities for supplementing your income in retirement include a seasonal job or freelance consulting. But consider if this extra money could affect other aspects of your finances tied to your income, such as a potential increase in your Medicare costs or a possible temporary reduction in your Social Security benefits. Also consider any income tax implications.


Saving and Investing 10. If you’re considering an


annuity, understand the potential pros, cons and costs. You’ve probably seen or heard promotions for annuities, which are financial products tied to a contract between a consumer and an insurance company. Insurers sell annuities but so do other financial institutions, including banks. You buy an annuity by making either a single payment or a series of payments to the insurance company. In return, the company promises to make payments to you, either as one lump-sum payment or a series of payments for a specified time period.


Because there are different types of QUICK TIPS PAGE 11


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