SMART | work


Te power of the crowd


I


n last month’s SmartBiz, I talked about how mobile computing and cleantech were melding together to create a killer app in moving a post- carbon world forward. Along for the ride


which is helping pro- vide another financial option for entrepre- neurs is crowdfund- ing. According to In-


Clean Tech Adam Johnston


vestopedia, def ines crowdfunding as "Te use of small amount of capital from a large number of individuals to finance a new busi- ness venture.” What stands out


about crowdfunding, unlike other outlets is utilizing the power of


the Internet and social media. Investopedia also suggests “Crowdfunding


makes use of the easy accessibility of vast networks of people through social media and crowdfund- ing websites to bring investors and entrepreneurs together.” The most well-known crowdfunding site is


Kickstarter.com. Since its inception in 2009, it’s launched nearly 373,000 projects receiving a total of $3.30 billion USD. According to Business Insider, many popular Kickstarter projects included the Veronica Mars movie (earning $5.7 million USD in funding), and the Pebble Watch, a smartwatch which raised a total of nearly $20.34 million USD and was a critically acclaimed alternative to the Apple Watch. While crowdfunding may seem like a dream for


backyard hobbyists and garage inventor, it's be- coming big business, as its grown leaps and bounds this decade. Consider in 2012, the crowdfunding market value globally was $2.7 billion USD, ac- cording to a National Crowdfunding Association of Canada press release. Tose numbers ballooned quickly to $16.2 billion USD in 2015 to $34.4 billion one year later in 2016, according to Techbullion. com. Te World Bank, a staple of traditional fi- nance is bullish. A report they published in 2013 predicts the global crowdfunding market at $93 billion USD by 2025. These numbers outline the potential of un-


locking funds they would have never had in prior periods. Te World Bank said Te Great Recession of 2008


was the catalyst in crowdfunding’s rise, with start- up entrepreneurs, artisans and new enterprises seeking capital, but were having a difficult time accessing it from traditional financial institutions. Crowdfunding has also been beneficial in


renewable energy and cleantech companies who have utilized the power of crowdfunding to untapped financial capital, which would not have been possible. Mosaic, was an early solar crowdfunding com-


pany (which is now a solar loan company) offered investments for solar projects at small amounts. Teir first project in 2012 was a smash according to Grist . Mosaic sold out their first solar project raised $313,000 USD, with an average investment of $700.00 USD. Today other renewable energy companies are


using the crowdfunding platform to raise financ- ing and build customers. WindCentrale, is a unique Dutch enterprise. Te customer can invest in a wind project, and


they receive the benefits of clean wind power. Investors pay a onetime investment between


200-350 Euros, along with an additional 20 Euros a year for supporting maintenance. In exchange, investors receive 500 kWh of wind annually. Renewable Energy World in 2014 said WindCen-


trale was the “world’s biggest renewable energy crowdfunding platform”, while suggesting they have “made themselves a household name in the world of crowdfunding”. It will be interesting to see where crowdfund-


ing evolves in the future as we see many exciting opportunities in financing new cleantech and in- novative ventures while allowing the power of the crowd to have a slice of the investment pie. Adam Johnston is a freelance writer and owns


a part-time social media and cleantech writing business. You can go to his website at www.salay- consulting.com or email him at salayconsulting@ gmail.com.


6 Smart Biz


this tough season. Snow and ice and cold, that’s nothing right? It’s important we re- member to take extra steps to make sure our furry family members are comfort- able and safe during the winter months. 1) Keep your pets inside! If it’s too cold


Winter safety for your pets W


Jessica Thompson


inter is fast approaching and as Manitobans, we pride ourselves on how we are able to handle


for you to be out for extended periods of time, it’s too cold for your dog or cat. Frostbite on sensitive paws, ears and tails can occur just as quickly as your exposed skin. Some breeds of dogs are more equipped for being outside during the cold, but they must have adequate shelter with insulation and a break from the wind. 2) Watch those paws! When walking


your dog, be aware of the temperature of the ground and how quickly frostbite can occur on your pooch’s paw pads. Slowly and gently get your dog accustomed to wearing doggy boots or keep walks shorter in length on particularly cold days. If your dog has a particularly short or sparse coat, get them a doggy sweater as well to keep them comfortable during walk time. Dogs won’t complain when they’re cold so it’s our job to make sure they are warm. 3) Bang the hood of your vehicle before


starting it. Cats can be sneaky and will look for warm places to take shelter. In their mind, curling up next to your car engine is a good idea. However this is how cats can get terribly hurt when you start your car. A simple bang on the hood of the vehicle will let cats know to get out of there. 4) Be aware around bodies of water! During the winter freeze and spring


thaw, pets can easily slip through ice on rivers and lakes and drown. Keep them safe on leash near natural bodies of water. 5) Clean up winter puddles on your


driveway and keep pets away from pud- dles on the street. These puddles can sometimes contain antifreeze which often consists of ethylene glycol. This chemical is particularly tasty to pets but is incredibly toxic. If you suspect your pet may have ingested a poison, contact your vet immediately. 6) Wipe off your pets’ paws and un-


derbelly after walks. Many salts and ice melting products can irritate your pets’ skin and may be fatal if ingested. Elect to use sand on your own walks or purchase pet safe ice melters, available at many pet stores. 7) Be aware of your pet’s diet! A lot of


pets get less exercise in winter, in favour of cuddling on the couch on those espe- cially cold days. And some pets activity


level increases if they participate in win- ter sports like sled pulling or skijoring. It’s important to adjust your pet’s caloric intake accordingly so they maintain a healthy weight. 8) Leave your pet at home! Parked cars


can get particularly chilly on colder days, acting like a refrigerator. Do not leave your pet unattended in your parked car. 9) Take care of their skin! Just like us,


the dry air can affect your pet’s skin and coat, causing dry skin and dandruff. Re- duce how often you bathe your dog as this can dry out their coat, but brush your dog frequently to help their skin circulation and avoid matting. Visit your vet or local pet store to look at supplements that can help your pet maintain their health. Winter can have extra hazards for you


and your pet, but if you follow these safety tips it can also be a lot of fun! Jessica Tompson, Paws For Tought


Boutique For Pets, 1051 Main St, Win- nipeg, ph#204-421-7297.


Let’s make some money - putting it all together


MAKE SOME MONEY! • In July we looked at the


F


choices for your money: lending it (fixed income with interest) or buying a piece of the business (equities or self-employment) and about striking the right balance for your comfort level with the risk and volatility trade-offs • Then in August, we fig-


ured out how much you were going to need to provide you with financial independ- ence, and how to trade off how long you would need with your balanced alloca- tion of assets, and how you may need to start sooner or save more or take more risk if you are to achieve your target. • September started investing princi-


or my faithful readers, this is the is- sue where we bring together the se- ries of the last few months on LET’S


portion of government debt and another shell in the public finance shell game of how politicians use our money to bribe us with promises while get- ting their gold-plated jobs with platinum defined ben- efit pension plans. The former CPP invest-


Financial


Literacy Fred Petrie


ment portfolio in govern- ment bonds was not dis- similar to the average saver, approaching ret irement, with their savings wasting away in GICs, slowly los- ing capital after taxes and inflation. Government real- ized that the CPP was going bankrupt long before most of us alive today would get to collect benefits. Typical of politicians, they created the CPP Investment Board


ples to keep your risks as low as possible while still reaching your independence target using diversification, across sec- tors and geographies. • October answered the age-old in-


vestment question of how to time the market, to buy low and sell high. Te bad news was that you can’t. Te good news was that you do not need to if you commit to consistent saving with dollar- cost-averaging so that you make money whether markets are going up or down. Now in November, we wrap up that


advice by showing you a real live exam- ple of what a well-balanced, diversified portfolio with consistent additions can do for you. Would you believe the Canada Pen-


sion Plan? * * Te CPP the government runs is a


rip-off as I discussed last November. Here I am talking about the CPP Invest- ment Board and how they manage our CPP funds.) The CPP used to get lousy returns.


Governments used it as easy money, where they could borrow your money at ridiculously low-interest rates instead of raising your taxes directly. It was a big


to manage the CPP funds. Now if CPP went broke, it wouldn’t be their fault! Te CPPIB have done very well with our money. Most of us need a similar plan, to reduce our low interest fixed income investments and get into balanced, blue chip, large-cap, dividend-paying equities, diversified across sectors and around the world. How they are doing with our money?


Te last Annual Report for the year end- ed March 31st, 2017 showed the $316.7 billion fund earned 11.8%; the ten-year average rate earned was 6.7%. And that included 2008/9 when the TSX was down 35.5% Te CPPIB was only down 18.6%, half of the market’s downturn volatility, the downturn dampened by having the balance of fixed income assets. Balance in your portfolio means being content at 10%, when others are bragging about a 20% return so that you can be consoled when they are “losing” half their fortune and you are only temporarily down a fraction of that. Te CPPIB asset alloca- tion balance is down the middle with 55.4% in equities and 44.6% in fixed income and real estate. Diversity is applied by the CPPIB


geographically by only having 16.5% invested in Canadian assets while 83.5% is invested outside of Canada. And the


www.smartbizwpg.com


CPPIB has its investments fully diversi- fied across economic sectors as well. With all working Canadians’ pay-


cheques being docked 4.95%, matched by their employers, every month, the CPPIB is investing a steady cash flow through all market cycles, using the power of dollar-cost-averaging effec- tively. You need to be sure your financial planning is working with a similar 10% of your cash flow. Tere is only one problem, the CPP


has not (yet) been opened up to allow you to make additional investments. In the meantime, what are your options for an affordable, well performing yet conservative, balanced investment? Select investment funds or ETFs that mirror the CPPIB. The Saskatchewan Pension Plan is a defined contribution plan (unlike CPP’s defined benefit) that allows contributions up to $2500 a year that are RRSP eligible. And CPP is not the only big game in town. Manulife has over $300 billion of assets under management. A Globe and Mail column featured two


actively managed balanced funds. One fund with a 60/40 balance of equities and bonds had an 8.5% average return over twenty years, through all the turmoil of the 21st century, after a very reasonable MER of 0.96%. Invest $50,000 at age 35 and your money would double four times as you approach 65 for an $800,000 retirement fund objective. So if “you don’t have the time or inclination for do-it-yourself investment” you can still “seek the comfort of knowing someone is at the helm”, at an affordable cost. Tis example may be out of date by the time you read this. Tat is why you might pay a financial planner (by the hour) to help you construct your own CPPIB. Fredrick Petrie, B. Comm. (Hons.),


author of “THE END OF WORK: financial planning for people with better things to do”, provides financial education at www.navigatingfinance.com, reach him at navigator@navigatingfinance.com or call (204) 298-2900. You can get started at http://www.amazon.ca/END-WORK- Financial-Planning-People-ebook/dp/ B00XCY0AJ2/


November 2017


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