Podcasts about jeff there

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Best podcasts about jeff there

Latest podcast episodes about jeff there

The Johnny Tacos Show
Origin Stories with special guest Mawcore

The Johnny Tacos Show

Play Episode Listen Later Jan 24, 2024 69:27


First Episode of the season!!! On todays episode, I sit with Josh and Jeff Redding of MAWCORE!    Mawcore is an Alternative Modern Hard Art Rock band, from America, driven to “Flood our World with Hope-Driven Fearless Rock”. Pulling in core elements of grinding guitars, pulsing bass, pounding drums, layered electronica sounds and soring vocals, Mawcore has created their brand of Alt. Modern Hard Art Rock. The band draws upon musical influences from the 70's, 80's, 90's and carries into the present day, stretching and barreling onward towards eternity. From the Hebrew word, meaning “Wellspring”, Mawcore taps into the central line of the hopeless, with a continual supply of hope and life, through faith-based lyrics and a mended-heart filled message Mawcore was formed from the ashes of the former internationally distributed band, Blushing Well, who shared their music with thousands all around the world. They shared the stage with Skillet, Red, Disciple, Seventh Day Slumber, Jeremy Camp, Pillar and countless others. Their music was distributed internationally through Nightmare Records and played by radio stations in The Philippines, Yugoslavia, Norway, Germany, Mexico, Brazil, Italy and the United States.             Although the past had crumbled, the three remaining members Joshua, Jeremy and Jeff found themselves with wounds being healed by the music within their core. Being joined by a variety of other musicians and eventually now permanent guitarist Ben, the programming talents of Chris, and the drumming skills of Ryan, they crafted a sound uniquely their own. Each member brings their own reason to keep them going:  Jeremy: “For me, life without music is no life at all. I breathe it. I live it. Being in Mawcore is an amplifier for the music in my head”; “Music has shown me that there is a way to overcome fears and insecurities. When faith is tested, there is strength to be found in music with a message”; Jeff: “There is new life when the musician gets to share the journey with his offspring. The journey grows deeper and the passion more fervent when you are fighting for the life of others”; Joshua “If you cut me, I bleed music! This is such a deep part of my healing and knowing that we are sharing this healing with others, has made it all the more intense”; Chris: “The things that once made me feel undone and hurt, I now use to embrace others in their healing. This new journey has played a part in helping me believe that there is always hope and redemption”. These passionate members are fueling the forward motion that is Mawcore! In this life, which can be full of disappointment and difficulties, music can be an avenue by which we can find hope again. Mawcore is on a mission to do just that. Mawcore is: Jeff Redding: Guitars Jeremy Redding: Bass Ryan Rice: Drums Joshua Redding: Vocals Chris Strupp: Programming  

Screaming in the Cloud
Use Cases for Couchbase's New Columnar Data Stores with Jeff Morris

Screaming in the Cloud

Play Episode Listen Later Nov 27, 2023 30:22


Jeff Morris, VP of Product & Solutions Marketing at Couchbase, joins Corey on Screaming in the Cloud to discuss Couchbase's new columnar data store functionality, specific use cases for columnar data stores, and why AI gets better when it communicates with a cleaner pool of data. Jeff shares how more responsive databases could allow businesses like Dominos and United Airlines to create hyper-personalized experiences for their customers by utilizing more responsive databases. Jeff dives into the linked future of AI and data, and Corey learns about Couchbase's plans for the re:Invent conference. If you're attending re:Invent, you can visit Couchbase at booth 1095.About JeffJeff Morris is VP Product & Solutions Marketing at Couchbase (NASDAQ: BASE), a cloud database platform company that 30% of the Fortune 100 depend on.Links Referenced:Couchbase: https://www.couchbase.com/TranscriptAnnouncer: Hello, and welcome to Screaming in the Cloud with your host, Chief Cloud Economist at The Duckbill Group, Corey Quinn. This weekly show features conversations with people doing interesting work in the world of cloud, thoughtful commentary on the state of the technical world, and ridiculous titles for which Corey refuses to apologize. This is Screaming in the Cloud.Corey: Welcome to Screaming in the Cloud. I'm Corey Quinn. This promoted guest episode of Screaming in the Cloud is brought to us by our friends at Couchbase. Also brought to us by Couchbase is today's victim, for lack of a better term. Jeff Morris is their VP of Product and Solutions Marketing. Jeff, thank you for joining me.Jeff: Thanks for having me, Corey, even though I guess I paid for it.Corey: Exactly. It's always great to say thank you when people give you things. I learned this from a very early age, and the only people who didn't were rude children and turned into worse adults.Jeff: Exactly.Corey: So, you are effectively announcing something new today, and I always get worried when a database company says that because sometimes it's a license that is going to upset people, sometimes it's dyed so deep in the wool of generative AI that, “Oh, we're now supporting vectors or whatnot.” Well, most of us don't know what that means.Jeff: Right.Corey: Fortunately, I don't believe that's what you're doing today. What have you got for us?Jeff: So, you're right. It's—well, what I'm doing is, we're announcing new stuff inside of Couchbase and helping Couchbase expand its market footprint, but we're not really moving away from our sweet spot, either, right? We like building—or being the database platform underneath applications. So, push us on the operational side of the operational versus analytic, kind of, database divide. But we are announcing a columnar data store inside of the Couchbase platform so that we can build bigger, better, stronger analytic functionality to feed the applications that we're supporting with our customers.Corey: Now, I feel like I should ask a question around what a columnar data store is because my first encounter with the term was when I had a very early client for AWS bill optimization when I was doing this independently, and I was asking them the… polite question of, “Why do you have 283 billion objects in a single S3 bucket? That is atypical and kind of terrifying.” And their answer was, “Oh, we built our own columnar data store on top of S3. This might not have been the best approach.” It's like, “I'm going to stop you there. With no further information, I can almost guarantee you that it was not.” But what is a columnar data store?Jeff: Well, let's start with the, everybody loves more data and everybody loves to count more things, right, but a columnar data store allows you to expedite the kind of question that you ask of the data itself by not having to look at every single row of the data while you go through it. You can say, if you know you're only looking for data that's inside of California, you just look at the column value of find me everything in California and then I'll pick all of those records to analyze. So, it gives you a faster way to go through the data while you're trying to gather it up and perform aggregations against it.Corey: It seems like it's one of those, “Well, that doesn't sound hard,” type of things, when you're thinking about it the way that I do, in terms of a database being more or less a medium to large size Excel spreadsheet. But I have it on good faith from all the customer environments. I've worked with that no, no, there are data stores that span even larger than that, which is, you know, one of those sad realities of the world. And everything at scale begins to be a heck of a lot harder. I've seen some of the value that this stuff offers and I can definitely understand a few different workloads in which case that's going to be super handy. What are you targeting specifically? Or is this one of those areas where you're going to learn from your customers?Jeff: Well, we've had analytic functionality inside the platform. It just, at the size and scale customers actually wanted to roam through the data, we weren't supporting that that much. So, we'll expand that particular footprint, it'll give us better integration capabilities with external systems, or better access to things in your bucket. But the use case problem is, I think, going to be driven by what new modern application requirements are going to be. You're going to need, we call it hyper-personalization because we tend to cater to B2C-style applications, things with a lot of account profiles built into them.So, you look at account profile, and you're like, “Oh, well Jeff likes blue, so sell him blue stuff.” And that's a great current level personalization, but with a new analytic engine against this, you can maybe start aggregating all the inventory information that you might have of all the blue stuff that you want to sell me and do that in real-time, so I'm getting better recommendations, better offers as I'm shopping on your site or looking at my phone and, you know, looking for the next thing I want to buy.Corey: I'm sure there's massive amounts of work that goes into these hyper-personalization stories. The problem is that the only time they really rise to our notice is when they fail hilariously. Like, you just bought a TV, would you like to buy another? Now statistically, you are likelier to buy a second TV right after you buy one, but for someone who just, “Well, I'm replacing my living room TV after ten years,” it feels ridiculous. Or when you buy a whole bunch of nails and they don't suggest, “Would you like to also perhaps buy a hammer?”It's one of those areas where it just seems like a human putting thought into this could make some sense. But I've seen some of the stuff that can come out of systems like this and it can be incredible. I also personally tend to bias towards use cases that are less, here's how to convince you to buy more things and start aiming in a bunch of other different directions where it starts meeting emerging use cases or changing situations rapidly, more rapidly than a human can in some cases. The world has, for better or worse, gotten an awful lot faster over the last few decades.Jeff: Yeah. And think of it in terms of how responsive can I be at any given moment. And so, let's pick on one of the more recent interesting failures that has popped up. I'm a Giants fan, San Francisco Giants fan, so I'll pick on the Dodgers. The Dodgers during the baseball playoffs, Clayton Kershaw—three-time MVP, Cy Young Award winner, great, great pitcher—had a first-inning meltdown of colossal magnitude: gave up 11 runs in the first inning to the Diamondbacks.Well, my customer Domino's Pizza could end up—well, let's shift the focus of our marketing. We—you know, the Dodgers are the best team in baseball this year in the National League—let's focus our attention there, but with that meltdown, let's pivot to Arizona and focus on our market in Phoenix. And they could do that within minutes or seconds, even, with the kinds of capabilities that we're coming up with here so that they can make better offers to that new environment and also do the decision intelligence behind it. Like, do I have enough dough to make a bigger offer in that big market? Do I have enough drivers or do I have to go and spin out and get one of the other food delivery folks—UberEats, or something like that—to jump on board with me and partner up on this kind of system?It's that responsiveness in real, real-time, right, that's always been kind of the conundrum between applications and analytics. You get an analytic insight, but it takes you an hour or a day to incorporate that into what the application is doing. This is intended to make all of that stuff go faster. And of course, when we start to talk about things in AI, right, AI is going to expect real-time responsiveness as best you can make it.Corey: I figure we have to talk about AI. That is a technology that has absolutely sprung to the absolute peak of the hype curve over the past year. OpenAI released Chat-Gippity, either late last year or early this year and suddenly every company seems to be falling all over itself to rebrand itself as an AI company, where, “We've been working on this for decades,” they say, right before they announce something that very clearly was crash-developed in six months. And every company is trying to drape themselves in the mantle of AI. And I don't want to sound like I'm a doubter here. I'm like most fans; I see an awful lot of value here. But I am curious to get your take on what do you think is real and what do you think is not in the current hype environment.Jeff: So yeah, I love that. I think there's a number of things that are, you know, are real is, it's not going away. It is going to continue to evolve and get better and better and better. One of my analyst friends came up with the notion that the exercise of generative AI, it's imprecise, so it gives you similarity things, and that's actually an improvement, in many cases, over the precision of a database. Databases, a transaction either works or it doesn't. It has failover or it doesn't, when—Corey: It's ideally deterministic when you ask it a question—Jeff: Yes.Corey: —the same question a second time, assuming it's not time-bound—Jeff: Gives you the right answer.Corey: Yeah, the sa—or at least the same answer.Jeff: The same answer. And your gen AI may not. So, that's a part of the oddity of the hype. But then it also helps me kind of feed our storyline of if you're going to try and make Gen AI closer and more accurate, you need a clean pool of data that you're dealing with, even though you've got probably—your previous design was such that you would use a relational database for transactions, a document database for your user profiles, you'd probably attach your website to a caching database because you needed speed and a lot of concurrency. Well, now you got three different databases there that you're operating.And if you're feeding data from each of those databases back to AI, one of them might be wrong or one of them might confuse the AI, yet how are you going to know? The complexity level is going to become, like, exponential. So, our premise is, because we're a multi-modal database that incorporates in-memory speed and documents and search and transactions and the like, if you start with a cleaner pool of data, you'll have less complexity that you're offering to your AI system and therefore you can steer it into becoming more accurate in its response. And then, of course, all the data that we're dealing with is on mobile, right? Data is created there for, let's say, your account profile, and then it's also consumed there because that's what people are using as their application interface of choice.So, you also want to have mobile interactivity and synchronization and local storage, kind of, capabilities built in there. So, those are kind of, you know, a couple of the principles that we're looking at of, you know, JSON is going to be a great format for it regardless of what happens; complexity is kind of the enemy of AI, so you don't want to go there; and mobility is going to be an absolute requirement. And then related to this particular announcement, large-scale aggregation is going to be a requirement to help feed the application. There's always going to be some other bigger calculation that you're going to want to do relatively in real time and feed it back to your users or the AI system that's helping them out.Corey: I think that that is a much more nuanced use case than a lot of the stuff that's grabbing customer attentions where you effectively have the Chat-Gippity story of it being an incredible parrot. Where I have run into trouble with the generative story has been people putting the thing that the robot that's magic and from the future has come up with off the cuff and just hurling that out into the universe under their own name without any human review, and that's fine sometimes sure, but it does get it hilariously wrong at some points. And the idea of sending something out under my name that has not been at least reviewed by me if not actually authored by me, is abhorrent. I mean, I review even the transactional, “Yes, you have successfully subscribed,” or, “Sorry to see you go,” email confirmations on stuff because there's an implicit, “Hugs and puppies, love Corey,” at the end of everything that goes out under my name.Jeff: Right.Corey: But I've gotten a barrage of terrible sales emails and companies that are trying to put the cart before the horse where either the, “Support rep,” quote-unquote, that I'm speaking to in the chat is an AI system or else needs immediate medical attention because there's something going on that needs assistance.Jeff: Yeah, they just don't understand.Corey: Right. And most big enterprise stories that I've heard so far that have come to light have been around the form of, “We get to fire most of our customer service staff,” an outcome that basically no one sensible wants. That is less compelling than a lot of the individualized consumer use cases. I love asking it, “Here's a blog post I wrote. Give me ten title options.” And I'll usually take one of them—one of them is usually not half bad and then I can modify it slightly.Jeff: And you'll change four words in it. Yeah.Corey: Yeah, exactly. That's a bit of a different use case.Jeff: It's been an interesting—even as we've all become familiar—or at least junior prompt engineers, right—is, your information is only going to be as good as you feed the AI system—the return is only going to be as good—so you're going to want to refine that kind of conversation. Now, we're not trying to end up replacing the content that gets produced or the writing of all kinds of pros, other than we do have a code generator that works inside of our environment called Capella iQ that talks to ChatGPT, but we try and put guardrails on that too, right, as always make sure that it's talking in terms of the context of Couchbase rather than, “Where's Taylor Swift this week,” which I don't want it to answer because I don't want to spend GPT money to answer that question for you.Corey: And it might not know the right answer, but it might very well spit out something that sounds plausible.Jeff: Exactly. But I think the kinds of applications that we're steering ourselves toward can be helped along by the Gen AI systems, but I don't expect all my customers are going to be writing automatic blog post generation kinds of applications. I think what we're ultimately trying to do is facilitate interactions in a way that we haven't dreamt of yet, right? One of them might be if I've opted into to loyalty programs, like my United account and my American Express account—Corey: That feels very targeted at my lifestyle as well, so please, continue.Jeff: Exactly, right? And so, what I really want the system to do is for Amex to reward me when I hit 1k status on United while I'm on the flight and you know, have the flight attendant come up and be like, “Hey, you did it. Either, here's a free upgrade from American Express”—that would be hyper-personalization because you booked your plane ticket with it, but they also happen to know or they cross-consumed information that I've opted into.Corey: I've seen them congratulate people for hitting a million miles flown mid-flight, but that's clearly something that they've been tracking and happens a heck of a lot less frequently. This is how you start scaling that experience.Jeff: Yes. But that happened because American Airlines was always watching because that was an American Airlines ad ages ago, right, but the same principle holds true. But I think there's going to be a lot more of these: how much information am I actually allowing to be shared amongst the, call it loyalty programs, but the data sources that I've opted into. And my God, there's hundreds of them that I've personally opted into, whether I like it or not because everybody needs my email address, kind of like what you were describing earlier.Corey: A point that I have that I think agrees largely with your point is that few things to me are more frustrating than what I'm signing up, for example, oh, I don't know, an AWS even—gee, I can't imagine there's anything like that going on this week—and I have to fill out an entire form that always asked me the same questions: how big my company is, whether we have multiple workloads on, what industry we're in. And no matter what I put into that, first, it never remembers me for the next time, which is frustrating in its own right, but two, no matter what I put in to fill that thing out, the email I get does not change as a result. At one point, I said, all right—I'm picking randomly—“I am a venture capitalist based in Sweden,” and I got nothing that is differentiated from the other normal stuff I get tied to my account because I use a special email address for those things, sometimes just to see what happens. And no, if you're going to make me jump through the hoops to give you the data, at least use it to make my experience better. It feels like I'm asking for the moon here, but I shouldn't be.Jeff: Yes. [we need 00:16:19] to make your experience better and say, you know, “Here's four companies in Malmo that you ought to be talking to. And they happen to be here at the AWS event and you can go find them because their booth is here, here, and here.” That kind of immediate responsiveness could be facilitated, and to our point, ought to be facilitated. It's exactly like that kind of thing is, use the data in real-time.I was talking to somebody else today that was discussing that most data, right, becomes stale and unvaluable, like, 50% of the data, its value goes to zero after about a day. And some of it is stale after about an hour. So, if you can end up closing that responsiveness gap that we were describing—and this is kind of what this columnar service inside of Capella is going to be like—is react in real-time with real-time calculation and real-time look-up and real-time—find out how you might apply that new piece of information right now and then give it back to the consumer or the user right now.Corey: So, Couchbase takes a few different forms. I should probably, at least for those who are not steeped in the world of exotic forms of database, I always like making these conversations more accessible to folks who are not necessarily up to speed. Personally, I tend to misuse anything as a database, if I can hold it just the wrong way.Jeff: The wrong way. I've caught that about you.Corey: Yeah, it's—everything is a database if you hold it wrong. But you folks have a few different options: you have a self-managed commercial offering; you're an open-source project, so I can go ahead and run it on my own infrastructure however I want; and you have Capella, which is Couchbase as a service. And all of those are useful and have their points, and I'm sure I'm missing at least one or two along the way. But do you find that the columnar use case is going to disproportionately benefit folks using Capella in ways that the self-hosted version would not be as useful for, or is this functionality already available in other expressions of Couchbase?Jeff: It's not already available in other expressions, although there is analytic functionality in the self-managed version of Couchbase. But it's, as I've mentioned I think earlier, it's just not as scalable or as really real-time as far as we're thinking. So, it's going to—yes, it's going to benefit the database as a service deployments of Couchbase available on your favorite three clouds, and still interoperable with environments that you might self-manage and self-host. So, there could be even use cases where our development team or your development team builds in AWS using the cloud-oriented features, but is still ultimately deploying and hosting and managing a self-managed environment. You could still do all of that. So, there's still a great interplay and interoperability amongst our different deployment options.But the fun part, I think, about this is not only is it going to help the Capella user, there's a lot of other things inside Couchbase that help address the developers' penchant for trading zero-cost for degrees of complexity that you're willing to accept because you want everything to be free and open-source. And Couchbase is my fifth open-source company in my background, so I'm well, well versed in the nuances of what open-source developers are seeking. But what makes Couchbase—you know, its origin story really cool too, though, is it's the peanut butter and chocolate marriage of memcached and the people behind that and membase and CouchDB from [Couch One 00:19:54]. So, I can't think of that many—maybe Red Hat—project and companies that formed up by merging two complementary open-source projects. So, we took the scale and—Corey: You have OpenTelemetry, I think, that did that once, but that—you see occasional mergers, but it's very far from common.Jeff: But it's very, very infrequent. But what that made the Couchbase people end up doing is make a platform that will scale, make a data design that you can auto partition anywhere, anytime, and then build independently scalable services on top of that, one for SQL++, the query language. Anyone who knows SQL will be able to write something in Couchbase immediately. And I've got this AI Automator, iQ, that makes it even easier; you just say, “Write me a SQL++ query that does this,” and it'll do that. But then we added full-text search, we added eventing so you can stream data, we added the analytics capability originally and now we're enhancing it, and use JSON as our kind of universal data format so that we can trade data with applications really easily.So, it's a cool design to start with, and then in the cloud, we're steering towards things like making your entry point and using our database as a service—Capella—really, really, really inexpensive so that you get that same robustness of functionality, as well as the easy cost of entry that today's developers want. And it's my analyst friends that keep telling me the cloud is where the markets going to go, so we're steering ourselves towards that hockey puck location.Corey: I frequently remark that the role of the DBA might not be vanishing, but it's definitely changing, especially since the last time I counted, if you hold them and use as directed, AWS has something on the order of 14 distinct managed database offerings. Some are general purpose, some are purpose-built, and if this trend keeps up, in a decade, the DBA role is going to be determining which of its 40 databases is going to be the right fit for a given workload. That seems to be the counter-approach to a general-purpose database that works across the board. Clearly you folks have opinions on this. Where do you land?Jeff: Oh, so absolutely. There's the product that is a suite of capabilities—or that are individual capabilities—and then there's ones that are, in my case, kind of multi-model and do lots of things at once. I think historically, you'll recognize—because this is—let's pick on your phone—the same holds true for, you know, your phone used to be a watch, used to be a Palm Pilot, used to be a StarTAC telephone, and your calendar application, your day planner all at the same time. Well, it's not anymore. Technology converges upon itself; it's kind of a historical truism.And the database technologies are going to end up doing that—or continue to do that, even right now. So, that notion that—it's a ten-year-old notion of use a purpose-built database for that particular workload. Maybe sometimes in extreme cases that is the appropriate thing, but in more cases than not right now, if you need transactions when you need them, that's fine, I can do that. You don't necessarily need Aurora or RDS or Postgres to do that. But when you need search and geolocation, I support that too, so you don't need Elastic. And then when you need caching and everything, you don't need ElastiCache; it's all built-in.So, that multi-model notion of operate on the same pool of data, it's a lot less complex for your developers, they can code faster and better and more cleanly, debugging is significantly easier. As I mentioned, SQL++ is our language. It's basically SQL syntax for JSON. We're a reference implementation of this language, along with—[AsteriskDB 00:23:42] is one of them, and actually, the original author of that language also wrote DynamoDB's PartiQL.So, it's a common language that you wouldn't necessarily imagine, but the ease of entry in all of this, I think, is still going to be a driving goal for people. The old people like me and you are running around worrying about, am I going to get a particular, really specific feature out of the full-text search environment, or the other one that I pick on now is, “Am I going to need a vector database, too?” And the answer to me is no, right? There's going—you know, the database vendors like ourselves—and like Mongo has announced and a whole bunch of other NoSQL vendors—we're going to support that. It's going to be just another mode, and you get better bang for your buck when you've got more modes than a single one at a time.Corey: The consensus opinion that's emerging is very much across the board that vector is a feature, not a database type.Jeff: Not a category, yeah. Me too. And yeah, we're well on board with that notion, as well. And then like I said earlier, the JSON as a vehicle to give you all of that versatility is great, right? You can have vector information inside a JSON document, you can have time series information in the document, you could have graph node locations and ID numbers in a JSON array, so you don't need index-free adjacency or some of the other cleverness that some of my former employers have done. It really is all converging upon itself and hopefully everybody starts to realize that you can clean up and simplify your architectures as you look ahead, so that you do—if you're going to build AI-powered applications—feed it clean data, right? You're going to be better off.Corey: So, this episode is being recorded in advance, thankfully, but it's going to release the first day of re:Invent. What are you folks doing at the show, for those who are either there and for some reason, listening to a podcast rather than going to getting marketed to by a variety of different pitches that all mention AI or might even be watching from home and trying to figure out what to make of it?Jeff: Right. So, of course we have a booth, and my notes don't have in front of me what our booth number is, but you'll see it on the signs in the airport. So, we'll have a presence there, we'll have an executive briefing room available, so we can schedule time with anyone who wants to come talk to us. We'll be showing not only the capabilities that we're offering here, we'll show off Capella iQ, our coding assistant, okay—so yeah, we're on the AI hype band—but we'll also be showing things like our mobile sync capability where my phone and your phone can synchronize data amongst themselves without having to actually have a live connection to the internet. So, long as we're on the same network locally within the Venetian's network, we have an app that we have people download from the Apple Store and then it's a color synchronization app or picture synchronization app.So, you tap it, and it changes on my screen and I tap it and it changes on your screen, and we'll have, I don't know, as many people who are around standing there, synchronizing, what, maybe 50 phones at a time. It's actually a pretty slick demonstration of why you might want a database that's not only in the cloud but operates around the cloud, operates mobile-ly, operates—you know, can connect and disconnect to your networks. It's a pretty neat scenario. So, we'll be showing a bunch of cool technical stuff as well as talking about the things that we're discussing right now.Corey: I will say you're putting an awful lot of faith in conductivity working at re:Invent, be it WiFi or the cellular network. I know that both of those have bitten me in various ways over the years. But I wish you the best on it. I think it's going to be an interesting show based upon everything I've heard in the run-up to it. I'm just glad it's here.Jeff: Now, this is the cool part about what I'm talking about, though. The cool part about what I'm talking about is we can set up our own wireless network in our booth, and we still—you'd have to go to the app store to get this application, but once there, I can have you switch over to my local network and play around on it and I can sync the stuff right there and have confidence that in my local network that's in my booth, the system's working. I think that's going to be ultimately our design there because oh my gosh, yes, I have a hundred stories about connectivity and someone blowing a demo because they're yanking on a cable behind the pulpit, right?Corey: I always build in a—and assuming there's no connectivity, how can I fake my demos, just because it's—I've only had to do it once, but you wind up planning in advance when you start doing a talk to a large enough or influential enough audience where you want things to go right.Jeff: There's a delightful acceptance right now of recorded videos and demonstrations that people sort of accept that way because of exactly all this. And I'm sure we'll be showing that in our booth there too.Corey: Given the non-deterministic nature of generative AI, I'm sort of surprised whenever someone hasn't mocked the demo in advance, just because yeah, gives the right answer in the rehearsal, but every once in a while, it gets completely unglued.Jeff: Yes, and we see it pretty regularly. So, the emergence of clever and good prompt engineering is going to be a big skill for people. And hopefully, you know, everybody's going to figure out how to pass it along to their peers.Corey: Excellent. We'll put links to all this in the show notes, and I look forward to seeing how well this works out for you. Best of luck at the show and thanks for speaking with me. I appreciate it.Jeff: Yeah, Corey. We appreciate the support, and I think the show is going to be very strong for us as well. And thanks for having me here.Corey: Always a pleasure. Jeff Morris, VP of Product and Solutions Marketing at Couchbase. This episode has been brought to us by our friends at Couchbase. And I'm Cloud Economist Corey Quinn. If you've enjoyed this podcast, please leave a five-star review on your podcast platform of choice, whereas if you've hated this podcast, please leave a five-star review on your podcast platform of choice along with an angry comment, but if you want to remain happy, I wouldn't ask that podcast platform what database they're using. No one likes the answer to those things.Corey: If your AWS bill keeps rising and your blood pressure is doing the same, then you need The Duckbill Group. We help companies fix their AWS bill by making it smaller and less horrifying. The Duckbill Group works for you, not AWS. We tailor recommendations to your business and we get to the point. Visit duckbillgroup.com to get started.

How to Scale Commercial Real Estate
Protecting Your Interests in Real Estate: Legal Blunders to Avoid

How to Scale Commercial Real Estate

Play Episode Listen Later Aug 2, 2023 21:54


Today's guest is Jeff Love.   Jeff is a Partner at Gibbs Giden Locher Turner Senet & Wittbrodt, which has been named one of the Best Law Firms in the U.S. for construction law, construction litigation, and real estate law by U.S. News. Join Sam and Jeff in today's episode.  -------------------------------------------------------------- Intro [00:00:00] Tenant Estoppel Certificates in Commercial Real Estate [00:05:14] Reviewing Leases and Ensuring Accuracy [00:06:53] Challenges with Obtaining Tenant Signatures [00:08:24] Tenant Estoppel Certificates [00:09:04] Common Pitfalls in Construction Contracts [00:11:45] Importance of Communication and Documentation in Construction [00:17:22] The importance of timing in real estate transactions [00:19:12] Adjusting timelines in real estate agreements [00:20:04] Closing [00:21:26] -------------------------------------------------------------- Connect with Jeff:  LinkedIn (personal) - https://www.linkedin.com/in/jeff-love-65a5951a/  LinkedIn (company) - https://www.linkedin.com/company/gibbs-giden-locher-turner-&-senet-llp/ Twitter - https://twitter.com/gibbsgiden Web: https://www.gibbsgiden.com/attorneys/jeffrey-b-love/   Connect with Sam: I love helping others place money outside of traditional investments that both diversify a strategy and provide solid predictable returns.     Facebook: https://www.facebook.com/HowtoscaleCRE/ LinkedIn: https://www.linkedin.com/in/samwilsonhowtoscalecre/ Email me → sam@brickeninvestmentgroup.com   SUBSCRIBE and LEAVE A RATING. Listen to How To Scale Commercial Real Estate Investing with Sam Wilson Apple Podcasts: https://podcasts.apple.com/us/podcast/how-to-scale-commercial-real-estate/id1539979234 Spotify: https://open.spotify.com/show/4m0NWYzSvznEIjRBFtCgEL?si=e10d8e039b99475f -------------------------------------------------------------- Want to read the full show notes of the episode? Check it out below: Jeff Love (00:00:00) - And really understanding what you're getting from your contractor because and there's pros and cons to all of them. You know, the cost plus contract, you know, typically tell investors and clients, look, basically the contractor is passing on the cost to you, plus their premium, which is their profit and which is nothing wrong with it at all. But you got to understand that there is no maximum price if prices increase, their costs increase. So to yours. So you need to make sure you understand that and work that into your budget and your business plan. Welcome to the How to Scale Commercial Real Estate Show. Whether you are an active or passive investor, we'll teach you how to scale your real estate investing business into something big. Jeff Love is a partner at Gibbs Garden, which has been named one of the best law firms in the US for construction law, construction litigation and real estate law by US News. Jeff, welcome to the show. Thanks for having me. Absolutely. The pleasure is mine.   Jeff Love (00:00:56) - Jeff There are three questions I ask every guest who comes on the show in 90s or less. Can you tell me where did you start? Where are you now and how did you get there? I started with building blocks when I was when I was a little dude, apparently. I've always liked real estate, wanted to get into real estate. Once college, UCLA thought, Hey, why not go to law school to learn about contracts? I could, you know, help me be a real estate developer. I went to law school, realized I actually like helping investors more than doing it myself, kind of like being behind the scenes, different clients, different stages. So instead of pivoting to be the real estate developer after a couple of years, which was my plan ten years later, I am a real estate transactional attorney dealing with corporate issues, securities issues and everything real estate from your mom and pop investor to your large national syndicator. Wow, That's a that's a lot to deal with. What's your favorite part about what you do? I like to think really helping investors.   Jeff Love (00:01:53) - You know, a lot of times they come to me. It's their first project. You know, they've listened to a podcast. They say, you know, I'm a successful doctor, but I want to invest in this ten unit multifamily building and helping them do it, avoiding the pitfalls and really seeing them grow, not just real estate, but, you know, other clients companies we have seeing them start, you know, ten years later what they've been able to achieve. That's really the cool thing for me. That's awesome. What are some of the what are some of the common things that people come to you with? And you say, all right, here's how to go back and get your ducks in a row before you come back to me. Are there are there some things that you see repeated over and over that you're helping these first time people kind of that are venturing into larger scale commercial projects that you can help us kind of short circuit some of that. Yeah, and it's common sense, but it's it's hard to know what you don't know.   Jeff Love (00:02:42) - Right? So the first thing I tell people is, you know, having your team in place, you've watched podcasts, you've you've read about it, you may be owning your home, but it's different when you get into kind of commercial real estate or investment real estate. And you really need to have a good insurance broker. You need to have an accountant that understands what you're doing, especially if you have investors and you're offering some type of preferred return. You need to have good real estate broker helping you find those deals. Oftentimes a good attorney that can help you make sure that you're protecting your other assets. So what I tell a lot of first time investors is make sure you have a good team around you so they can help you with the things that you don't know and you rely on your strengths. You rely on your advisors to help you, just like you would in any other facet of life. Yeah, absolutely. Absolutely. So you work on everything from, like you said, mom and pop large scale syndications.   Jeff Love (00:03:35) - You really love the kind of first timer and watching them, watching them grow through that process. What does it look like for you? You invest as well in real estate. So what's it like on the legal side? You know, as you look at investments that you're getting into reverse, to say a lot of the times when it's me personally, I don't read half the agreements. I'm like, Oh, it's just me. No one's really relying on me. So I'm like, just sign on the dotted line. But, you know, we invest in multifamily. It's something that, you know, I like that. I like a lot of different asset classes. But for me, that's one that my wife and I, you know, kind of we understand, you know, we're not having to do allowances or brokers and manage kind of commercial. Everyone needs somewhere to live and we invest locally. So I'm in Redondo Beach City, right. You know, about 30 minutes south of LAX in Los Angeles.   Jeff Love (00:04:24) - And we're reinvest in the city where we lived. We were renters. So we kind of know what things rent for, what we looked for. We can kind of manage it ourselves. I can lease, you know, show it, I can lease it. And what we did is really thought, you know, the buildings that we have are not as much for cash flow, which is really hard in Los Angeles, if not most of California, but appreciation. And we we've done it structured it in a way where we've kind of gifted our kids, you know, small interests every year. So eventually, you know, it gets it out of our estate for estate planning purposes. But it also helps them, you know, kind of get their feet wet. They're really little now, but as they grow, they'll they'll have little portions of these buildings, hopefully spur the bug with them and kind of save that for them or their retirement one day. Right? Oh, that's.   Sam Wilson(00:05:13) - Really, really cool.   Sam Wilson(00:05:14) - So I guess you probably never want to hear your attorney say you don't read all of it, but I bet you read. I bet you read the important parts. Are there things that you really focus in on when you do dig into the documents?   Jeff Love (00:05:26) - I do. So a lot of times there's certain things that I've seen a thousand times, you know? So those are the ones that I probably don't read. It probably should. But reading for clients, but myself, you know, I've seen them over and over again, but with multifamily in particular, you know, also retail. You could make the case for any tenant is really looking at a tenant estoppel certificate in the leases because a lot of times, especially with smaller buildings, you may have ideals. A landlord may have promised a tenant certain things, you know, they could stay there for another year, but it's not in the lease. And myself or client as an investor, I want to know exactly what I'm buying. So what a tenant estoppel certificate does is it makes the tenant basically confirm certain statements in the lease.   Jeff Love (00:06:12) - This is the rent, this is the term. There's no defaults. So that once I close, I buy the building. I know what I'm getting. The tenant can't come to me later and say, you know, sorry, you know, the old landlord said, I have a five year lease at a thousand bucks a month when it was supposed to be a one year lease for $10,000 a month. That's a big difference. The problem is I can always go after the seller, but then I'm stuck with that tenant and depending on what my investment plan is, I may have wanted to try to get the building vacant because it was a one year lease. That really protects me and just make sure I know exactly what I'm buying and I know that what is in the lease is actually the terms.   Sam Wilson(00:06:53) - Now, that that would, I would think, help me clarify this, but that would work on a maybe single tenant situation. Or is this something where you ask for a review of these leases before you ever close and actually look for those things and then put that tenant estoppel in place? Is that is that even word that correctly or am I missing something?   Jeff Love (00:07:13) - No, you did.   Jeff Love (00:07:14) - And it's it's it's more practical and, you know, kind of the more tenants you get because then you have all these different leases to review Terms may have changed. I could get it for a multifamily building, for a retail shopping center, industrial building. I really want I just want to know if the lease that I'm getting, which is a very important part of commercial real estate, you know, is accurate and there's no side deals.   Sam Wilson(00:07:38) - Right? And so you sign that estoppel certificate or the seller signs that estoppel certificate, is that right? Saying, hey, look, these are the terms and then you can come after me If we find out post closed that there are terms with other tenants that vary from what I've defined here.   Jeff Love (00:07:56) - Sometimes it's a seller. Even better is having the actual tenant sign it because if the tenant doesn't sign it, I have a claim against the seller because it's not accurate. But the tenant, if this was the deal, the tenants, you know their in their right to stay.   Jeff Love (00:08:12) - So I typically want the tenant to tell me that everything and this is accurate. If can't get that for whatever reason, then I'll have the seller sign it. But one of the two parties and that protects me as the buyer.   Sam Wilson(00:08:24) - So let's assume it's a 200 unit multifamily complex. How do you practically get the tenants to sign all of this if it's not? How do you how does that work? Like, how do you get that in writing from the tenants before you close?   Jeff Love (00:08:39) - Usually it's a requirement of the lease, but when you get to that scale, there are going to be some tenants you just can't track down. So when you get to 50, 100, 200 units, it may be a certain threshold seller is going to be required to get 75%, 80% of the tenants to sign the estoppel certificate for those that they can't get, the seller is going to sign the remaining, say, 20% because it's just not going to happen. If I have a 200 unit building, I'm just some tenants going to be gone.   Jeff Love (00:09:04) - I'm not going to track them down. I'm not going to blow the deal over that. But I want the majority of them to sign it. That's something that's usually negotiated as part of a purchase agreement when you get to that type of large, large scale. But most multifamily leases, most leases in general, I should say, have a requirement that a tenant is going to sign an estoppel certificate. Because a lot of times if you're getting commercial debt, the lender is going to want to see it as well. Got it.   Sam Wilson(00:09:30) - Got it. Okay. That's that's really, really interesting. So there should be already an agreement in place in the lease that the tenant says, hey, look, if I need to sign this certificate, I will when that time comes. Or is it signed? Typically when they sign the lease.   Jeff Love (00:09:46) - It is signed. When that time comes, usually they have ten days to do it and you'll be doing that. Seller will usually do that during the process and that'll be one of the last items of due diligence.   Sam Wilson(00:09:56) - How often do you feel like this important step is skipped?   Jeff Love (00:10:01) - A lot, especially with smaller buildings and, you know, smaller, you know, maybe you talk to the tenant, you know, but you just, you know, you never know. And that's the problem, especially depending on what you're doing with the property. You know, if you're buying it for, you know, long term investment, maybe it's not as big of a deal. But if your strategy is, you know, I'm going to buy it, I'm going to, you know, rehab it tenant might leave, you know, rent it for a higher amount, then it's a big problem. If that one tenant's, you know, in there for five years and you didn't know about that. So I think it is overlooked but it is an important aspect of do your due diligence process for any real estate acquisition, along with, you know, environmental and tidal issues that we should be looking at as well.   Sam Wilson(00:10:44) - Yeah, absolutely.   Sam Wilson(00:10:45) - No, that's a great that's a great nugget. And these are things that when you look at a deal as a passive investor, you say, hey, I want to I want to find out, you know, do we have these estoppel certificates? I think if I'm using the right terminology here, do we have those signed?   Jeff Love (00:11:01) - You are. And yes, yes, you should.   Sam Wilson(00:11:03) - Okay, That's cool. Wow. I have I learned something new here today as a passive investor myself in multiple multifamily deals. I can't say I've ever asked that question. So there we go. Tip pro tip from Jeff Love here today. For those of you who are listening, that's that's awesome. Thank you for sharing really the inside scoop on that and what some of the things are that you look for. Let's talk a little bit about construction. I know there in your bio we mentioned the word construction. You guys handle a lot of things on the construction side of it. When I say that and you talk about commercial real estate construction, give us kind of some inside scoops on what it is you're looking for there, how you help clients out, common pitfalls, all of those things.   Jeff Love (00:11:45) - Starting from the beginning. I think it's, you know, a lot of times, you know, maybe we do residential construction on our own home. But when you start investing and you have larger deals, the construction becomes kind of a different animal, so to speak. The first thing, you know, a lot of clients come to me and they don't understand is the different types of construction contracts that are just out there and what's the difference between a cost plus versus a guaranteed maximum price called sometimes you hear it called a gap and really understanding what you're getting from your contractor because and there's pros and cons to all of them. You know, the cost plus contract, you know, typically tell investors and clients, look, basically the contractor is passing on the cost to you, plus their premium, which is their profit and which is nothing wrong with it at all. But you got to understand that there is no maximum price if prices increase, their costs increase. So to yours. So you need to make sure you understand that and work that into your budget and your business plan, especially lately with inflation and rising costs.   Jeff Love (00:12:46) - Really something to think about. And on the other side, I'll tell clients, well, yes, you could have a gap, which is it's my fixed price, but if the contractor has a fixed price, are they going to be cutting corners because they can get things cheaper? Is it the quality that you want and you expect or is it a different type of materials that they're using that you weren't expecting? So the first most important and probably most important thing is just to understand the relationship with the contractor, what you're getting from them, how they're billing it and how that's documented in a contract so that there are no surprises later on.   Sam Wilson(00:13:23) - Yeah, I would imagine. I would imagine so. Yeah, there are. I mean, I've been a been a contractor and have contracted a lot in my life. And you're right, there's there's costs or there's benefits to both. I think the cost plus one, like you said, there's no maximum price. And it's and it's in its own right. I like it.   Sam Wilson(00:13:41) - But it's also. You're basically giving your contractor a blank check. All right. Right. Hey, man, you know what and where? Ordinarily, if there's a maxed or a max price in the deal where they say, okay, you know what, maybe we don't have to order an extra, you know, truckload of whatever it is, OSB or whatever the project is. I'm just dreaming out loud here. But whereas if it's like, hey, it's cost plus it's like, yeah, sure, we'll take an extra semi load of OSB because maybe we'll need it when we're doing roofing repairs or whatever it is we're up against and oh well, just tack it on and there goes an extra 20 grand. No big deal. Right. So it's it's, it's a, it's a catch, a catch 22 there. On which way is the absolute right way to do it. What are some common not maybe the disputes isn't the wrong word but common uh things you see people getting wrong in that contract side of things that could have been worked out ahead of time.   Jeff Love (00:14:35) - I don't know that would say getting wrong. A lot of times we'll use, you know, form as American Institute of Architects that are kind of common forms out in California and are pre-printed, but just not understanding the contract. You know, one of the big ones that we get, you know, defaults and kind of disputes over are termination clauses because timing is a huge issue. You know, I've got investors or even for myself, you know, I'm losing rent because I'm waiting for this to be done. And the contractor, for whatever reason, not not putting on the contractor, but they're delays. That could be the you know, the contractor is understaffed or can't get the subs out there. It could be materials. They're not coming in. But as the owner, you know, I may not be fully informed and just. I don't understand what's taking so long. So making sure you understand that. And if it doesn't work out, what does the termination section look like? I had a client, you know, a couple of weeks ago that was entering into, you know, rather small contract.   Jeff Love (00:15:35) - But, you know, for what it was, it was, you know, maybe, you know, a couple million dollars, but it was for a single family residence. And what this contract had is it had a fixed fee. It was cost plus. But the contractor basically had a fixed fee in there of $200,000 that no matter when I terminated the deal, if for any reason, no reason, he got that $200,000. So to me and to the client, he had no idea that was in there and said, Well, you know what? If I just want to, you know, stop and flip the property, I've got a lot of interest. I said, If you sign this tomorrow, you owe your contractor $200,000, right? So making sure, you know, is there something like that in there or is it more common where if I terminate, I'll pay my contractor everything I owe him to date? You know, maybe there's some lost profit, but I'm not on the hook for the whole thing and that I understand that because those delays do lead a lot of times to default and desires to terminate.   Jeff Love (00:16:33) - And that's where we see a lot of disputes between both sides.   Sam Wilson(00:16:37) - Yeah, I can only imagine. And again, coming at it from I mean, I've been on both sides of the equation, both the the contractor doing the work in a previous life and then also the one now as the as the contractor or the general contractor, if you will, or the property owner, rather, that is, you know, contracting this this work out. And you do run into delays, be it. My problem, be it their problem, be it other subs, be it weather, be it all these things. And I think I think what I'm hearing you say and tell me if I'm wrong, but is that it's just imperative to have a clear line of communication where you guys are talking back and forth saying, hey, this is why we're slowing down. This is why it's taking more time. There is. And do you recommend if that conversation does happen, is it important to get those things in writing?   Jeff Love (00:17:22) - Absolutely.   Jeff Love (00:17:23) - And that's probably, if not the most biggest takeaway. You know, those listeners can communicate in every single deal because most of the problems that we have, you know, when it gets to litigation and I'll bring one of my partners say, hey, this dispute, I can't handle it now. It's not transactional. It's litigation because you can communicate whether you're contractor, you're investors, you know, whatever party it is, they didn't know what was going on, so you left them with no choice. So to your construction contract is communicate. And if there is something that changes or documenting it, you know, put it in an email, have the conversation, you know, a phone call and then follow up with an email, just, you know, confirming what we talked about. So you have that paper trail if it ever becomes an issue. And hopefully it wasn't, because now you guys you talked through it. You everyone is aware of what's going on and no one's left in the dark.   Sam Wilson(00:18:14) - Yeah, absolutely.   Sam Wilson(00:18:16) - Absolutely. Cool. We've talked about a lot of really great stuff here so far. We've talked about the Estoppel certificates and what you look for in opportunities. We've talked about construction and just kind of some things we should be looking for and how to how to avoid the common problems that happen on large scale commercial projects. Is there anything else that comes to mind, I guess, from the legal side of things that you think about that you say, man, here's here's the way the world is changing or stuff that you are making sure are now in deal decks or or pens maybe that weren't there a year ago. Anything any new updates on that front?   Jeff Love (00:18:50) - It's a timing is a big one. I think the last couple of years when things really slowed down have showed us, you know, things take longer. A lot of times now with clients, purchase agreements, leases, we're kind of building in extra kind of contingency periods, so to speak, because I can't get someone I can't get my inspector out there.   Jeff Love (00:19:12) - He's taking longer. I've had a number of clients kind of run up against hard deadlines where they're, you know, in a purchase agreement, they're forced to waive contingencies and risk their money being non-refundable, but they haven't been able to get everything done. And seller or buyer aren't cooperative. So we're really just kind of thinking that things from a 10,000 foot level and saying, can I get this done in this time period? Can I raise money from investors? Can I get my lender to respond? Can I get my property inspector out there? And if not, you know, working in can have a 30 day extension, even if I have to pay for it to make sure that that doesn't affect my deal. And that really goes across the real estate spectrum is making sure that you have adequate timing for what you need. Things are moving slower. Make sure that you're going to be prepared for that.   Sam Wilson(00:19:58) - I think that's a great word. It's funny you say that because even yesterday we're sending out some LOI.   Sam Wilson(00:20:04) - We kind of had a verbal agreements on things and we were changing the timelines. It was just like before it was, you know, 30 days and maybe it was 15 days, 30 days to close. And now it's, you know what we're doing 30 and 30 with a 15 day extension on the due diligence period, due diligence period, because all of the above things you just mentioned. And so it was funny just having that conversation yesterday afternoon, just slowing things down, saying, you know what, we're going to we're going to need more time for all of the aforementioned reasons. So thanks. Thanks for pointing that out because that is something that probably even six months ago I wouldn't have thought was really going to be an issue. But now it is. It's just it's just taking everybody surveyors, you name it. I mean, oh, sorry. We're four weeks out. We'll shoot. We're under. I mean, what do you do? You just you got to just, you know, get in line and wait.   Sam Wilson(00:20:51) - So. That's right. That's the way it goes. Well, Jeff, thank you for taking the time to come on the show here today. Certainly learned a lot from you. A lot of great homes here for us to practically employ. So I appreciate that. If our listeners want to get in touch with you or learn more about you, what is the best way to do that?   Jeff Love (00:21:06) - Check out our website. It's Gibbs Gedcom or feel free to email me J. Love at Gibbs Gate and always happy to answer real estate questions.   Sam Wilson(00:21:15) - Fantastic. And for those of you who are listening, Gibbs is Gibbs getting giddy in? So Gibbs giving Jeff, thank you again for coming on today. I do appreciate it.   Jeff Love (00:21:26) - Thank you.   Sam Wilson(00:21:26) - Hey, thanks for listening to the How to Scale Commercial Real Estate podcast. If you can do me a favor and subscribe and leave us a review on Apple Podcasts, Spotify, Google Podcasts, whatever platform it is you use to listen. If you can do that for us, that would be a fantastic help to the show.   Sam Wilson(00:21:43) - It helps us both attract new listeners as well as rank higher on those directories. So appreciate you listening. Thanks so much and hope to catch you on the next episode.  

Financial Planning For Canadian Business Owners
Successfully Exiting | E092

Financial Planning For Canadian Business Owners

Play Episode Listen Later Sep 15, 2022 30:21


Jason Pereira talks to Jeff Cullen, Owner & Lead Consultant at Basecamp4; a company that specializes in exit planning. Episode Highlights:1.05: Exit planning is an emergent specialization in management consulting. It is particularly being driven by the saying that time is running short for a lot of business owners.1.54: The whole idea behind exit planning is to maximize value and basically get the most successful exit plan or exit from your business as possible, says Jeff. 3.42: Exit planning institutes have done tons of research on the numbers of companies that don't successfully exit, and it's a pretty shockingly high number.6.11: You can't manage a 25-to-35-person company the same way that you can manage an 8-person company, and that is one of the first steps where owners may run into problems, says Jeff. 6.57: Jeff shares how he starts assessing business to understand where the holes are. What does his process look like to understand what's going on with that business?7.11: The business assessment method that Jeff uses is a lot more holistic. They have three-legged tools which are basically the business, the financial plan for the individual and their family and then there is also the personal side.10.04: The assessment is done in a way that everything is kind of transparent and there is a logical progression where most owners know how they are performing, says Jeff. 12.33: When you do exit, it's not a disaster. If any exit happens unexpectedly, the company can survive, says Jeff. 13.42: Jeff shares in terms of fixing gaps, how much resistance does he sees on an average to acceptance by business owners?15.29: As the biggest business starts to run better, become more systematized and the owner moves into a more of a strategic leadership position frustration gets reduced, says Jeff.19.32: If an owner doesn't have a financial planner or if the financial planner, they have is someone they have been using from their 20s and not working as desired Jeff would probably raise the idea of, we want to connect you with somebody who is a bit more sophisticated.20.50: Jeff is making sure that he is helping business owner set up themselves for successful exit when the windfall comes and it makes perfect sense, says Jason.26.06: Jason advises everyone that do not deal with generous lawyers. Deal with specialist lawyers who do or handle the expert cases all the time. 3 Key Points:Jeff explains how exit planning is for the most cases is no different than business planning.Jeff talks about the gap analysis that he conducts and how he explains to business owners what it takes to go from the two to the 4X multiple and how they assess those gaps.Jeff answers how many people in Canada take well to the fact they are telling their baby is not pretty if baby is business?Tweetable Quotes:"Everybody exits at some point. You can either do it vertically or horizontally, it's your call." – Jason"Being in control, getting the outcome you want and not having to compromise significantly can be defined as a success." – Jeff"There are any number of times where professionals will outgrow the advisors that they are dealing with, whether it be financial advisor or account boy." – JasonResources Mentioned:Facebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedInJeff Cullen – WebsiteTranscript Hosted on Acast. See acast.com/privacy for more information.

Portals of Perception
029 - Searing Moments and Their Transformational Power

Portals of Perception

Play Episode Listen Later Aug 12, 2022 73:41


In this conversation, we take a deeper look at the experience of ‘Searing Moments,' the profoundly meaningful moments, positive or perhaps traumatic and painful, that may be influencing our behaviors and attitudes, and how we engage with life. Even with Searing Moments from early in life, we can decide and choose how we think about and write the experience into ourselves. We call it ‘the Practice of Searing Moments,' continually unfolding their meaning to a point where we rewrite and update their significance. Join Aviv Shahar as he and Jeff Vander Clute explore today's topic, Searing Moments and Their Transformational Power. KEY TAKEAWAYS 02:08 – Aviv Shahar welcomes Jeff Vander Clute, who joins the show to provide his insights and experience with Searing Moments and Their Transformational Power07:38 – Defining the term, ‘Searing Moments'16:12 – Aviv provides specific examples of Searing Moments from his life33:06 – Jeff speaks to the re-authoring process that is alive in his own life38:10 – The transformational power of Searing Moments45:00 – Emergent practices that are vital to Jeff's evolution, including: Awareness, Making Space, Embracing and Re-authoring52:59 – A stream of potential and two realization points of human history1:05:01 – Closing thoughts and insights from Aviv and Jeff, including Jeff's thoughts on the ‘healed and transformed world' TWEETABLE QUOTES “I'm seeing that the people I work with and know and relate with are seemingly slipping across this threshold into Heaven on Earth. Many people are experiencing this profound peace and  settling into true nature and the present moment without worry for the future or carrying the past into the present moment.” (03:48) (Jeff)“I can think of a few [Searing Moments] in my life. I imagine those who are listening may be reflecting on key instances of a transformative nature, be they painful or inspirational. I think what I'm drawn to is the updating or rewriting. It's the reinterpretation that becomes available with perspective, and hindsight, and additional life experience in service to unfolding the universal potential of human life. That's a major theme for me right now and for many others as well.” (15:22) (Jeff)“I now know there is a capacity in me to transfer to others the courage and the bravery to overcome frightening messages and scary moments; to melt, to thaw these experiences because what happens is scary moments tend to freeze us in time. The idea of a Searing Moment is to release that potential. And, once you release the potential, you actually unpack and unlock a tremendous healing permission in your own process, in your own experience.” (20:37) (Aviv)“The human has a capacity to bring to life any feeling, any sentiment, any energy, any presence you can imagine in the entire universe inside your space - inside your energy field. You have that complete freedom.” (26:52) (Aviv)“I was thinking back to the passing of my father and mother. I realized this morning that, yes, liberation was involved in both cases. It cleared the way for me to be me. It abruptly encouraged me to let go of the stories and the baggage that I had been carrying. I feel a great truth in the generosity of my parents in leaving the world so that I could flower. I am fairly certain it would not be possible for me to be now if the family energies had stayed in place the way they were.” (34:40) (Jeff)“There's one quality that I can share from my own experience of Heaven on Earth, which is that there's no emotional charge around anything. And I include the happy and the sad. There's joy. There's lots of joy. In fact, yesterday I got really clear that the infinite energy supply that I am connected to is this ocean of bliss rising. It's a bliss, but it's not a fleeting happiness.” (43:36)(Jeff)“A huge amount of energy that has gone into creating defensive structures - psychological ego- defenses, but also collective defenses at the level of nations - that energy doesn't have to be spent that way.” (1:03:34) (Jeff) RESOURCES MENTIONED Portals of Perception WebsiteAviv's LinkedIn Aviv's TwitterAviv's WebsiteJeff's LinkedIn

Portals of Perception
025 - Leading from the Unconscious

Portals of Perception

Play Episode Listen Later Jun 17, 2022 62:44


In this episode, we look at the changes that are underway all around the world and examine the idea that these problems require our higher capabilities and talents. If we are to solve very complex problems, we will need to make nonlinear exponential leaps. And to make nonlinear exponential leaps, we will need to individually and collectively engage the unconscious. It is there where the answers, and the solutions, and the innovations for individual, collective, and global problems are latent. Join Aviv Shahar and Jeff Vander Clute for Leading from the Unconscious. KEY TAKEAWAYS 02:36 – Aviv Shahar welcomes Jeff Vander Clute to explore the core inquiry of Leading from the Unconscious04:51 – Perception Shutdown Syndrome explained10:23 – The importance of going deep to appreciate the anatomy of an inquiry14:06 – The Five Natures32:47 – Differentiating between an absent unconscious and a presence-full unconscious42:34 – Jeff provides his thoughts on using your conscious awareness to facilitate your unconscious46:03 – The concepts of the superconscious and the mental bungee jump56:37 – Aviv provides final reflections on a deeper inquiry and thanks Jeff for joining him on today's exploration TWEETABLE QUOTES “You bring us into a deep, specific, and I want to say rigorous inquiry. So there is great clarity as well. When we have one specific example where we've gone deep and then we look at the parallel developments that are co-arising, we can appreciate the commonality and the distinctions much more vividly than if we stayed at the surface level.” (12:21) (Jeff)“There is always the prospect of becoming a collective agency, where the inquiry, and the wisdom and intelligence we're seeking will reveal its multifaceted nature through different voices. One person will offer the theological insight, and another will offer the phenomenology of their experience, and a third person will offer the melodic, and a fourth person will offer the poetry, and a fifth person will draw this into a picture.” (19:42) (Aviv)“So, these were the five natures that I observed. We are in a rolling event where we come together with profound shared sentiments to discover that we can become a collective agency where we're being activated at this time. And as part of the activation, we are allowed to recognize and appreciate a sense of different levels and gradients of capacity and capability.” (29:15) (Aviv)“Having a visual such as this makes the decision clear. It illuminates that there's a choice. Now, granted we're talking about unconscious dynamics. But we can consciously choose to work with our being in ways that transform and transmute that which is below the line.” (43:03) (Jeff)“The deeper inquiry about leading from the unconscious is the recognition that the change that we described - the rolling event that is underway, the kind of crises we are now seeing on the world stage - they require our higher capabilities and talents. If we are to solve very complex problems, we will need to make nonlinear exponential leaps.” (57:38) (Aviv) RESOURCES MENTIONED Portals of Perception WebsiteAviv's LinkedIn Aviv's TwitterAviv's WebsiteJeff's LinkedIn 

Middle Market Mergers and Acquisitions by Colonnade Advisors
MM M&A 026: Industry spotlight – F&I Agencies & Payment Plans

Middle Market Mergers and Acquisitions by Colonnade Advisors

Play Episode Listen Later May 2, 2022 34:54


This episode continues with our “industry spotlight series” where we focus on specific trends and opportunities in middle-market M&A transactions. Our previous episodes have covered four industries in which Colonnade has played a significant role as an M&A advisor to both buy-side and sell-side clients. We add F&I Agencies & Payment Plan Providers as industries where we deeply know the dynamics and players so as to provide exceptional service to clients who hire us to assist them in a transaction. Colonnade has studied the F&I Agencies and Payment Plan Provider markets for the last 20+ years. We have worked on nearly 30 M&A transactions on the buy-side and the sell-side. We have gotten to know the industry players and the buyers. We've identified some high-opportunity M&A plays that could help to drive even more value, scale, and customer satisfaction in the industry. Spotlight on F&I Agencies (1:00) In this first part of our episode, we answer the following questions: Where do F&I agencies sit in the F&I ecosystem? (1:00) What does a typical F&I agency look like? (7:00) What is going on in terms of M&A and what are the value drivers in the industry? (9:00) What is driving M&A transactions right now and what are some potential M&A plays? (12:00) Where do F&I agencies sit in the F&I ecosystem and what value do they provide? (1:00) Gina: Between the F&I administrators and the F&I office and the dealership, there are F&I agencies. They are independent agencies with independent agents. They are like insurance agents. They bring together the product administrators and the dealers.  Gina:  The agents have deep knowledge about the products they represent. They can train the F&I office on those products and how to sell the products. They also act as the middle man or the interface with the administrator. They are one distribution arm for the administrators, which makes them critical in the ecosystem. They are a valuable component of the overall F&I ecosystem. Jeff: The F&I agency is a particular point in the value chain. It's a differentiator. Some administrators sell to dealers through a direct sales force, others use F&I agents.  Gina: There are administrators who go direct to dealers, but most administrators also use independent agents. They may have a direct sales force, but they have independent agents also. The only sector where that seems to not always be the case is selling into independent dealerships. You tend to see more direct agents that are employed by the administrators selling into the independent dealerships. Gina: An important component of what the agents do is help the dealership with reinsurance. Reinsurance is an important component of a dealership owner's profits. For every contract, every F&I product that is sold, there is a reserve set aside for future claims. F&I agents are usually very fluid and educated in talking about reinsurance and making sure that the dealership has the right reinsurance programs. So they deal with reinsurance, they do training on products, they do training on how to sell products. They sometimes help with staffing in the F&I office, and they'll help with some of the technology that is between the F&I office and the administrator. Gina: F&I represents a third of a dealership's profits. Everybody within the organization and affiliated with the organization is going to make sure that F&I runs smoothly. What does a typical F&I agency look like? (7:00) Gina: There are well over 100 independent agencies, and approximately 75%-80% of F&I agencies are less than 10 employees. There are very few large agencies. There are a few that are scaling, but there really aren't many. There is only one national agency that comes to mind and that's Vanguard (owned by Spectrum Automotive). Vanguard has been very acquisitive in building out its agent network. We also see Brown & Brown, which is a P&C insurance brokerage. They've been acquiring F&I agencies over the last few years. I don't know if they have a national footprint yet, but they're probably getting pretty close. And then you have acquired a lot of small agencies. ​​Jeff: The Brown & Brown example is an interesting one that we've watched over the last five to six years as they've entered the industry. We've always thought their participation in the F&I agency world makes a lot of sense, given the parallels to the P&C distribution market. What is going on in terms of M&A and what are the value drivers in the industry? (9:00) Gina: We think that the M&A market for F&I agencies will continue to be hot in 2022. (See Gina's cover article in Agent Entrepreneur, 2022 M&A Predictions for F&I Agents) Agent value is driven by a couple of different factors. One is diversification. One of the challenges for these small agencies, just like any small company, is having all of their eggs in one basket. An F&I agency may have one dealership group that represents 40% of sales. That is a gating factor to trading and getting the highest possible value. Agencies that have significant concentration, which I call greater than 15%, trade at a lower multiple than agencies that have little concentration. Another value driver is size. We look at the number of W-2 employees (as well as financials). Jeff:  Important when you go to sell these companies: Who owns the dealer relationships? And what's the risk of attrition in a transaction? Gina: A lot of diligence needs to be done in these transactions to really understand the nitty-gritty of who, not just on paper but in practice, owns the relationships. What is driving the M&A transactions right now and what are some potential M&A plays? (12:00) Jeff: It sounds like an industry that could be rolled up further. Following the playbook of the P&C insurance distribution market, you got a lot of mom and pops out there and a few large players.  Gina: Both Brown & Brown and Vanguard Dealer Services (Spectrum Automotive) are rolling up agencies. The rest of M&A activity we see is not a roll up, but administrators buying agencies. National Autocare and Portfolio Group have been very inquisitive. There are many other administrators who bought one, two, three agencies, as they attempt to lock in their distribution channels.  Gina:  There should be another roll up of F&I agencies. There should be a private equity firm that's coming in here saying, “I'm going to put a hundred, $150 million to work and we're going to leverage it. And we're going to buy up 20 F&I agencies. We're going to make a super-agency with national coverage.” That could be uber-successful for everybody involved. It just hasn't happened yet. Jeff: The folks that are acquiring are paying pretty high multiples, and that's a challenge. Any new entrant would have to go in and go big pretty quickly. They'd have to find a platform that they can scale and put a lot of capital to work while holding their nose as they pay big prices upfront. Gina: A lot of the M&A activity we have seen is with an older generation that is retiring. There's also some leakage happening where the younger, talented, hungrier F&I agents are like, “I get it, I can do this.” They leave and go start their own agency. I think we'll see that next-generation starting to trade in about a year or two. Gina: I have one last point I want to cover about F&I agency M&A: what's driving the activity. First of all, there's a lot of money looking for deals. There are private equity firms backing administrators that need to grow inorganically. But we also see a lot of M&A activity at the dealership level. They're getting bigger. Big dealership groups are buying up other dealers, independent shops, and dealership groups.  Every time one of those transactions happens, the agent that represents the target dealership is at risk of losing that client. Dealership M&A is driving F&I agency M&A. I think that this is the question that keeps a lot of agents up at night: Are they one or several M&A transactions away from losing a significant portion of their relationships and their livelihood? Spotlight on Payment Plan Providers (18:00) In this second part of our episode, we answer the following questions: How do payment plan providers add value to the auto F&I sector? (18:00) How big is the industry and who are the biggest players? (23:00) Why are payment plan providers a favorite industry of Colonnade? (25:00) What is going on in terms of M&A and what are the value drivers in the industry? (29:00) How do payment plan providers add value to the auto F&I sector? (18:00) Jeff: Payment plan companies came out of the ground around 20 years ago. They started as an offshoot of the insurance premium finance market, which we've talked about in a previous podcast. Fundamentally, this market is designed to help consumers purchase F&I products cost-effectively. Whether you're in a dealership (point of sale) and the F&I person says, “This VSC is going to cost you $3,000” or whether you get a piece of mail about an extended auto warranty (aftermarket), once you get sold on buying the coverage, the questions is always: Do you want to write a check for three grand or do you want to finance it over two or three years?  In most cases, the VSC/extended auto warranty gets financed. That's where these payment plan companies come in. Jeff: At the dealership (point of sale), the payment for an F&I product typically gets rolled into the auto loan. It's just one of the line items in the auto loan, and you (as the consumer) pay it off as you go. There are some payment plan providers that focus on point of sale at the dealership, allowing a consumer to finance the product outside the auto loan. In the aftermarket, which is really where we see these payment plans flourish, it's a different dynamic. If you're on the phone with a direct marketer and you agree to buy the coverage, you can put 10% down and pay over 18 or 36 months, depending on the payment plan. Interestingly, they're interest-free and cancelable at any time. And as you continue to drive your car and assess the usefulness of the product, you can cancel it at any time. If you cancel it, all you do is call up the seller or the administrator and say, “I want to cancel my payment plan.”  In that case, you get a portion of your money back (the unearned premium). It works in a similar way to the insurance premium finance market. The contract is earned over the life of the product. If it's a five-year product and you're one year into it, you might get 80% of the money back. The payment plan company is indifferent because it will just get their pro rata share back from the administrator and seller. The seller will sell the product to the consumer, and if they attach financing to it, the seller will collect the 10 or 15% down payment. The payment plan company will insert themselves and front the rest of the money to the administrator and to the seller. The administrator has to front some money to the CLIP (1) provider, but the revenue to the seller and the admin fee gets fronted by the payment plan company. Jeff: Our Industry Report on this sector goes into much more detail about the industry. How big is the industry and who are the biggest players (23:00) Jeff: We estimate this is about a $5 billion a year originations market. There's not good data. We've done a number of studies over the years and think that's the size of the market. It grows with auto sales and the adoption of products. It's grown considerably over the last several years. There are probably 10 independent players in the market. There are just a small handful of large players. The biggest players are PayLink, which is owned by Fortress and Milestone. Walco is the next biggest, and they're growing nicely. This is the Walder team that previously ran Mepco and Omnisure, and they've started up a new finance company that's growing quite rapidly. Mepco is a large player, they're top three, that's owned by Seabury. There are other smaller players like Budco, Line 5. Service Payment Plan is a big company in the dealer space, again different dynamics but similar product offering. PayLink, Omnisure, and Mepco really dominate the aftermarket space. Folks like Service Payment Plan dominate the dealer (point of sale) channel. Why are payment plan providers a favorite industry of Colonnade? (25:00) Gina: I love the payment plan business because it is so low-risk. What the payment plan companies do is hold a cash reserve on each funding in case the underlying consumer cancels. And that happens. There are a lot of cancellations in the direct consumer marketing of vehicle service contracts. As we've discussed before, it's not because the contracts are bad contracts, but it's because consumers actually have transparency. In the case of vehicle service contracts rolled into an auto loan, consumers don't get a breakout every month of the components of their auto loan that they're paying. They don't see that 80% of your auto loan payment is for the car, 10% is for the vehicle service contract, et cetera, cetera. But when a consumer is financing or using a payment plan for a vehicle service contract in the aftermarket, they have complete transparency as to what that cost is for. And if they decide as a household, they no longer need that product (they need to redeploy that payment to something else like their mortgage), they can cancel. The payment plan businesses have a cash reserve for this. So it is a very low risk business and has great returns. Jeff: Some of these companies have several hundred million dollars of portfolio and each contract starts out at $3,000 and burns down. These are very granular portfolios. You're not going to take a big loss on any particular contract. Unlike the insurance premium finance industry, the incidence or likelihood of fraud is negligible, and the risk here is quite low given the granularity. We like the short duration of these assets. We like the low loss rates. Generally, these transactions are priced at a 15% to 20% unlevered return. They're very high-yield. There's no credit risk. We're not doing anything with consumer credit risk.  We really don't care. We're just managing relationships with sellers and administrators. All those dynamics are favorable to this lending universe. I love this business. It's a niche industry, $5 billion is not the $50 billion commercial P&C market, but it's meaningful and growing. What is going on in terms of M&A and what are the value drivers in the industry? (29:00) Jeff: There really hasn't been much activity as there's a limited universe of players. Some of the administrators are vertically integrating and getting into the payment plan industry. We worked on the initial sale of Mepco to Independent Bank almost 20 years ago. We sold PayLink (which used to be called Warranty Finance Company) to Oxford Financial. It's now owned by Milestone and Fortress. Omnisure: Ed and Paul Walder started up that business from scratch and grew it to a couple hundred million dollars of receivables. We advised on the sale to Fortress.  PayLink and Omnisure merged in 2017 and put together two leading players in the industry. The other important transaction to mention is Seabury's acquisition of Mepco out of Independent Bank in 2017.  Most recently Walco has come out of the ground. Walco was started in early 2020 by Ed and Paul Walder again, starting up another competitor in the sector. They've grown considerably in recent years and are doing a great job building out that business. We don't see a ton of M&A activity per se, but it's a really interesting market. Part of the challenge from an M&A perspective is that there has not traditionally been a deep bank buyer universe of this product and that confounds me a bit. For all the reasons we mentioned, this is a really interesting, dynamic asset class. It's very similar to insurance premium finance, which has a number of large banks in the sector and a number that want to get into it.  The collateral structure looks very similar, except that payment plan providers have higher yields, higher return on assets, and even lower losses. And there's no fraud. I think there's a real opportunity for forward-thinking banks to embrace this asset class and do quite well with very little risk. (1) A CLIP is a commercial liability insurance product that covers the contractual obligations of the insured. A full reimbursement CLIP would indemnify the insured commercial entity for all monies it expends to fulfill a contractual commitment.   About the hosts Gina Cocking serves as the Chief Executive Officer of Colonnade Advisors. Gina began her career in investment banking at Kidder Peabody, was an analyst at Madison Dearborn Partners and an associate at J.P. Morgan & Co. She was the Chief Financial Officer of Cobalt Finance, a specialty finance company. She went on to become the Chief Financial Officer of Healthcare Laundry Systems, a private equity-backed company for which she oversaw the successful sale to a strategic acquirer. Gina served as the Line of Business CFO – Consumer Banking and Lending at Discover Financial Services. Gina serves on the Board of Directors of CIB Marine Bancshares, Inc. Gina received her BA in Economics and an MBA from the University of Chicago. Jeff Guylay is a Managing Director of Colonnade Advisors. Prior to joining Colonnade in 2000, Jeff was an investment banker at J.P. Morgan in the firm's Mergers & Acquisitions and Fixed Income Capital Markets groups in New York. He also spent several years in J.P. Morgan's Chicago office. Jeff has over 20 years of M&A and investment banking experience and has served as lead execution partner on over 25 M&A and financing transactions at Colonnade. Jeff received an MBA from Northwestern University's Kellogg Graduate School of Management and a Master of Engineering Management from the University's McCormick School of Engineering. Jeff received a BA from Dartmouth College and a BE from Dartmouth's Thayer School of Engineering.

Hilary Topper On Air
Catch Up With Pop International Galleries

Hilary Topper On Air

Play Episode Listen Later Jun 18, 2021 24:23


Now that the country is opening back up again, many people are excited to see their loved ones, eat at restaurants, go to shows, and live their lives in a more pre-pandemic way. But as excited as we all are, sadly, many of our favorite places to visit no longer exist. They shut down during the COVID-19 recession and couldn't survive. So today I am absolutely thrilled to welcome back my guest to the show. While others weren't so lucky, today's guest is excited to give us an update. I'm Hilary Topper and you are listening to Hilary Topper on Air. Joining me today on this episode is Jeff Jaffe. He's the founder and owner of Pop International Galleries. They are an art gallery on the Bowery at the junction of Spring Street in New York City. Welcome to the show, Jeff. Jeff - Thanks for having me. It's a pleasure to be here, given what we've all gone through this last year and a half or so. Hilary - Gosh, it's been, it's been crazy. Um, well, I'm very happy to have you back on the show and I'm so glad that Pop International Galleries, which is one of my favorite in New York City, is still open and doing well. Can you remind our listeners about who you are and what Pop International Galleries is all about? Jeff - Sure, The Pop Gallery started back, believe it or not, it's hard to even comprehend back in 1997 when I sort of came to realize that there was a need for an art gallery to focus on specific things. And in those days it happened to be pop art, which was Andy Warhol and Keith Haring and big names, John Michel, Basquiat, and Roy Lichtenstein and so on and so forth. And we did really well with that. But as things began to progress, it dawned on me that Pop International really meant focusing on pop culture more than pop art per se, that pop art fits into the realm and genre of, uh, what we're sort of interested in, but there were more things too, we were missing out on. And so we began to focus on sports, photography and rock and roll photography, and, more recently, street art and graffiti, and, as a consequence of which, Pop International Galleries has become this sort of iconic little center for focusing on anything that has to do with pop art and popular culture. Hilary - So, as we were talking at the beginning of the show, I said that this year had been like no other, how was the gallery doing? And how did you fare during all of this? And how did you survive? Jeff - It's funny. I was just going to say before you said the word survive that we dived into survival mode. There were choices that had to be made. And then there were decisions that were made for us that we had no power to overcome or resist or embrace. We just had to sort of take them on. And as a consequence of which, we sort of began to look at what the virtual world was going to offer us. What technology was going to offer us and help us with, that goes past the questions of having conversations with landlords and dealing with those kinds of things. And we were fortunate enough to have a lovely landlord who was willing to help work things out and help us through so that we could really remain in business. And then the other thing is I made a very, very strong decision. Some people questioned me why, but I decided not to let a single staff person go. I was just sort of, of that mind where I felt a certain amount of responsibility. And so I took steps to enable remote working and remote selling, which was very difficult because selling art remotely is not something that we would ever have thought we would ever encounter. People like to come to an art gallery, they like to look at the art and smell it and touch it and look at the frame and we really had to come up with different sort of means and strategies to get people comfortable with the notion that they could buy a lot this way. Hilary - So during this pandemic, you told me that you developed even stronger client relationships. Can you talk about that a little bit? Jeff - Absolutely we, well, again, it sort of goes back to this notion of virtual business and sort of doing things with Zoom and Skype and all kinds of things. And what we discovered was that by actually picking up the telephone as opposed to sending emails, reaching out to people individually and touching base with people, especially regular collectors about us. And we have, we have a huge collectors base and I mean, people have been buying from us for 25 years. We have thousands of people that we've sold out to and we decided that one of the things that we would do is reach out to people individually. And so it began. And emails became phone calls, emails became texts, messages, and text messages, became phone calls. And then it sort of blossomed into this ongoing dialogue between our consultants and our collective base and which led into larger events using a Zoom to have virtual openings and that kind of thing, which had been very successful. Hilary - So, can you tell us, or, share with us some of the interesting artists that you represent in your gallery today and why you represent them? Jeff - Well, we represent roughly about 25 artists or so from around the world. And again, it goes back to what I said a little bit earlier in terms of representing art is certainly pop related, but it has much more to do with the notion of what popular culture is. And subsequently, we still do represent Andy Warhol and Keith Haring and John Michelle Buskey out and so on. But we've edged out into other realms, which focus on things. Like, for example, we did a very, very special event with the godfather of street art, Ron English. And Ron was thrilled at the concept of making a type of work that he had never made before, which is paintings on paper in the manner he had never made them before. And so running this book has become a very important aspect of the pop gallery. We represent a Danish artist whose name is Ola Olberg and Ola has taken the cartoon character Tintin, who many people know lots of American people don't know about Tintin, but put Tintin into different scenarios, sort of naughty sort of sexual scenarios, which is something that most people don't associate Tintin with. But the idea of Tintin and popular culture and cartoons and things, that many people and I grew up with Tintin comics. So, that's been truly successful. We represent an artist by the name of Tony Ray Negro, who did all the backstage passes for the grateful dead. When, you know, from the age of 20 back in the eighties and nineties and so on. So the whole concept of rock and roll and music fits perfectly into this notion of pop culture. And then of course we represent two other artists that really fit into this concept so beautifully that I couldn't have even imagined it. It was just a natural thing. We represent the art of Dr.Seuss, which besides all this sort of nonsense and drama that occurred with the audit Dr. Seuss recently, we represent the estate of. Dr. Seuss, which means all the illustration drawings and things that he made limited additions of and the estate represents and a very special what we call the secret audit Dr. Seuss, which has stuff that he made in his spare time or the midnight audit Dr. Seuss, along with what he called the unorthodox taxidermy, which are these really beautiful, funny sort of taxidermy heads, which are just hilarious. And then we represent Tom Everhart, who was the protégé, if you will, of Charles Schultz of Peanuts and Snoopy fame. Tom was a young guy who saw Schultz Sparky as a mentor. And they had a really wonderful father, son type relationship. They and Tom started to interpret all the Snoopy characters and Schulz gave him permission before he died to be the only artist in the world to be able to make art using Snoopy and peanuts characters without a license. He has a lifetime license. They had a show together in the loop a number of years ago. So again, this whole notion of popular culture and pop, all these, The Seuss, the Tintin, the Snoopy Eberhardt pieces that all fit in really, really well. And then of course we move into street art and graffiti. And I have some lovely stories to tell you about that when you're ready. Hilary - Tell us we'd love to hear. So the very first sort of graffiti street art experience happened with pop and about 12 years ago, actually I got a phone call from a collector, a good friend collector. They said Jeff, these two boys who live in Bushwick in Brooklyn, I've started to collect their art quite, quite seriously. And I think you should go and visit them in their studio. And I said, Mike, if you are sure that's what you suggest, I trust you and happy to do it. So Mike set up this little meeting and I drove out to Bushwick 12 years ago. Bushwick wasn't what it is today, 12 years ago or so. And I arrived in this sort of funny little loft odd building where these two guys lived and worked. They had a studio together. Their names were, Mike Buck, Michael Bucca and, Fernando Romero, their street names, graffiti names were 2ESAE and Ski. So Fernando is Ski and Mike is a 2esae and I arrived at this place sort of not expecting a whole lot, but it was kind of exciting. And the first thing of course was they had a big pile of donuts and coffee for me on the table. And on the other side, they had a big bottle of Hennessy. They had no clue who I was going to be, and they were wondering what I was going to choose. It was really hilarious. And I meant, I went for the coffee and donuts just for the record, but, I'd forgotten to mention that they went by the name of a group that painted and work together. They went by the name of UR New York. And I saw their work around, you know, they used to sell this stuff on the street for a hundred bucks. And here I had this opportunity and as I went through the space studio, whatever you'd like to call it, I knew instantly that they belonged in the gallery. So I pulled him aside and I said, Fernando, Mike, we're definitely going to do something, but there are a few things that we have to deal with first. And they said, yeah, sure. I mean, they were really, really excited. And I looked at them and I said, you know, the 37 indictments that you have against you and the five years probation that you're on. I mean, these guys were like, looking, how do you know? How do you know all this? I said, how do I know it? Mike told me, you know, Mike referred me to you. He told me all of this stuff, they said. Yeah, yeah, yeah. But how does Mike know? And I had to sort of at that moment in time, decide, should I say how Mike and I figured out what the heck? I said, well, I hate to break it to you but Mike is the undercover cop who arrested you guys. It was always the uniform guys who took you in, but Mike was undercover. So you never knew who he was. And he developed a relationship with your love, of art and started collecting your art. Hilary - That's so funny. That's a great story. Jeff - There's a documentary in there somewhere. I'm sure. Mike, I'm telling you, they went bananas. These two guys jumping up and down hooting and hollering. It was just hilarious. And I said, and based on what. In order for me to put you in the gallery, we have to get rid of those issues that we just discussed and the way we're going to do it is by doing community work and getting involved with children in need and homelessness and whatnot. My attorney is a former judge. Mike, the undercover cop eventually became a DA. We're going to write letters. We're going to do all kinds of things that are going to sort of help mitigate this. And so the first thing we did was a big project in Chelsea in that there's a public housing center in Chelsea, on the west side of New York City. And we arranged for the boys to do a big mural and to work with all the children, helping them draw and paint and do all that kind of stuff. Got a fair amount of press and coverage. And one thing led to another. And the boys started working with children everywhere working with charities and organizations that we were able to connect them with. They went overseas, they went to Australia to work with Aboriginal children. When they went to South Africa to work with children in need, they went to Israel to work with Palestinian and Israeli children to show them how we're all the same. They really did some beautiful things and, as a consequence of all of this, all of those charges and probations were dropped and they have gone on to become two of the most important artists that we represent here. And my relationship with them is incredible. I mean, we are talking about a father-son relationship, and we've sold hundreds and hundreds of thousands of dollars worth of their art since then. Hilary - Two boys selling their art for 50 bucks on the street, wonderful story. That's awesome, that's awesome. Thank you for sharing those stories with me. So let's take this a step back. Someone walks into your gallery and they're looking to start a collection. How does that process work? Jeff - So the one thing about Pop International Galleries, which I believe was a game-changer and for many reasons, was that we decided to break down that whole barrier. You often walk into these galleries where someone's sitting behind a desk and you can barely see them. It's a high sort of desk and it's just white walls and maybe three pieces of art on the wall and nobody even talks to you. And then they look at you and they want to know what shoes you're wearing or what handbag you're carrying or how big the diamond is, or the watch on your hand. You know, that kind of stuff. We broke that completely. We have a much more open, friendly, inviting, environment. And as a consequence of which people absolutely love coming into the gallery. And so we focus on people who have never bought a piece of art before and on people who have big collections. And so we don't differentiate. We just help people find all that they love. We've always had a policy not to sell art on the basis of investment, when people say to me, well, if I buy this print, you know, it's 3,000 bucks, what's it going to be worth in 10 years? And I say, well, I have a really good stockbroker who has an office down the road. If you'd like, I could send you there, but we try not to. If you came to me with 5 million bucks and said, hey, could you help me invest in art? That might be a different story, but we break down all those barriers. Hilary - That's awesome. Let me ask you something. Do you have any exciting exhibits coming up that you want to share with us? Jeff - I do. Actually. There are a few things that we're working on. I'll just tell you about two that we had that sort of part of what this conversation was about. Where these virtual exhibitions, the first one we did was with Ron English and it was a big test for us to see if we could sell art while the gallery was shut down, or while we have contracted hours or while there were rules and regulations about social distancing and so on and so forth. So we did a test actually with two artists, Ron English, and McKenzie Papa, British artists who I'd been working with for many, many years. And they were amazing, absolutely amazing. They were RSVP events only. So you couldn't come to the Zoom call if you didn't get, if you didn't RSVP, couldn't join the thing. The idea was to show some videos, moderate with questions. My team here had questions for Oscar, the artists, and then, we opened up some of the questions to collectors and again, moderated things well enough so that it didn't get drawn out in long, sort of like into a sort of drawn out thing. And we sold a whole bunch of art. And so it opened up this idea for us. To do some more of them. And, we're now going to be working on a curated show of street art, that Ski from that team that I was just telling you about Fernando Romero is going to curate, that's going to be absolutely amazing, it's going to be a smash hit, no questions about it because he's going to, he has a lot of connections, obviously in the street art world and graffiti world. And he's going to bring in people who we've never represented, um, and curated in a way that will sort of open up art that had never been shown before in this manner. So we're very, very excited about that one. The other one that I'm working on is an Australian couple, the names are Gillie and Mark a husband and wife team who make art together. And, they're actually very well known in New York City for their outdoor monumental bronze works. And, before the pandemic, they did this beautiful, beautiful exhibition of women of valor. They had come to realize that women bronze, sculptures and statues of women, we're sadly lacking female sculptures, and monumental sculptures of women. There were less of them than there were men and they were going to change that. So they did this really beautiful collection of sculptures of some fantastic women, from Ruth Bader Ginsburg and so on and so forth, it was just really beautiful. And then they've done these large outdoor installations. People may have seen it up at Astor Place in Brooklyn, the big rhinos stacked on top of one another. Monumental pieces and part of what they do besides them tease and make fun of themselves. Gillie and Mark, Gillie is a bunny rabbit and Mark as a dog in their paintings and they sit on Vespas and bicycles and do all kinds of sweet, lovely things. We're going to do an event with them online and sort of tied in with the time zone with Australia. Those are two really great things that are coming up. Hilary- So cool. How could our listeners get in touch and actually sign up for any of these events? Jeff - Really easy. All you need to do is shoot us either an email, to, you could send it to me, jeff@popinternational.com or just art@popinternational.com. And just say, Hey, I heard the podcast, or you could, um, just call the gallery. And the number is (212) 533-4262. And we'll put you on the list and, and sort of begin to develop a relationship with you the way we have with our many, many thousands of collectors that we have over the years, we look so forward to it. Hilary - This was really informative and congratulations on your successes. I really appreciate you being on the show. I want to also thank our sponsors, the Russo law group, The Profit Express with Tim Healey, Pop international galleries. Thank you. Gold Benes LLP, and the Pegalis Law Group. And last but not least, I want to thank you our listeners for tuning in. If you want more information on this show or any other show you could visit our website at hillarytopperonair.com or you can find us on Spotify, iTunes, Google Play, apple podcasts, even Amazon Alexa, where out there you'll find you can find us have a great week and we'll see you next time.

Middle Market Mergers and Acquisitions by Colonnade Advisors
MM M&A 017 - Pick Your Partner - The Exclusivity Phase

Middle Market Mergers and Acquisitions by Colonnade Advisors

Play Episode Listen Later May 25, 2021 39:50


We are excited to focus today’s episode on the final phase of our unique 16-week sales process. Today we are focused on phase four: exclusivity/documentation. We invite you to listen to episode 001 for more information about phase one (pre-marketing), episode 002 for more information about phase two (go to market), and episode 0016 for more information about management meetings: https://www.coladv.com/podcasts/002/ Other episodes dive deep into technical aspects and tactics used in middle market and mergers and acquisitions. We also invite you to download our 16-week sales process timeline for more information on how Colonnade Advisors typically approaches the process of selling a company: https://coladv.com/wp-content/uploads/Four-Phases-with-graphic.pdf In our deep-dive discussion on exclusivity/documentation, the word “scary” comes up quite a few times. Rather than being scary from a horror film or haunted house, this scary is more like cold feet before a wedding. That’s because exclusivity/documentation is when you pick your partner and take a leap of faith with a single buyer. You’ll learn that in this phase of the sales process, we are not yet on the homestretch. In fact, our discussion unveils the many challenges of this phase of the sales process that must be simultaneously and actively managed. You’ll hear that this phase of the sales process almost feels like a crescendo. Our job at Colonnade is to manage this increasing set of workstreams and pull off a successfully closed deal. Then, as you’ll hear in the podcast episode, it’s time to celebrate. Key topics covered in this episode: • Preparing for the shift of power from seller to buyer • The importance of the letter of intent ("LOI") negotiations • How to select the winner (while keeping others warm in the background) • Who’s involved during the exclusivity/documentation phase • How long the process takes, and how much it costs • Pitfalls that we have encountered during this phase and how Colonnade mitigates these risks with our clients What is the exclusivity and documentation phase, and how do you get up to this point? (01:07) Gina: "This phase occurs when a seller is exclusive with a single buyer—we have received several bids and determined the winner. Both parties sign an LOI at this phase, and the seller agrees not to provide information or engage with any other potential buyers. The seller is essentially going off the market, which can be a bit scary because if the deal does not move forward with the exclusive buyer for some reason, then we will have to go back to the other bidders." What tasks need to be completed during the exclusivity and documentation phase? (02:11) Gina: "During exclusivity and documentation phase, we work through the confirmatory due diligence, which often involves a buy-side quality of earnings report. Also, during this period, we negotiate, finalize and execute the definitive purchase agreements and work through any related regulatory tasks to close." Is it possible for sellers to go through the exclusivity and documentation phase with multiple potential buyers? (03:18) Jeff: "In large transactions, it is possible to run multiple parties through this phase, but it typically does not happen in middle market deals.” What is the importance of the letter of intent (LOI) negotiations? (04:13) Jeff: "LOI negotiation is critical because we want to nail down all the topics that we think are going to be critical in negotiation and final documentation before we commit to one party. Hammering out these key topics ahead of time also expedites the process." Is the highest price generally selected as the winner? (05:05) Jeff: "Business owners do not always pick the highest price. It is also about picking the best terms." Listen to Colonnade’s podcast episode 007: Striking a Deal: Price & Terms: https://www.coladv.com/podcasts/007/ Once a seller is exclusive with a buyer, is there a backup plan if the deal falls apart? (05:15) Jeff: "We keep the non-winning bidders warm and engaged in a limited fashion to make sure that we have backups if the deal falls apart.” How do you assess the certainty to close a deal? (06:30) Jeff: "Assessing the certainty to close comes from years of experience working with buyers and thinking through key items such as where is the capital coming from, what their acquisition history is and how likely they are to close on the terms that we have outlined." Are there particular buyer types that are more problematic in terms of the certainty to close? (06:35) Gina: "One group that has caused us problems with the certainty of close in the past is search funds or unfunded sponsors, which are private equity investors that do not have a dedicated fund. These funds tend to bid the highest prices, which is appealing, but they will still need to raise the capital once in exclusivity from institutional investors. Those institutional investors will want to do their diligence, almost restarting the deal process, which creates more risk of the deal not getting done." Jeff: "About ten years ago, family offices were also in this category to some degree. Family offices had smaller dedicated investment teams, so the certainty of closing was considerably lower than traditional private equity firms or a strategic buyer. But that has changed over the last decade where family offices have shifted to become credible buyers." How long does it take to get from signing the LOI to closing? (08:45) Gina: "We generally put 30 to 45 days in the LOI with a provision that both parties can extend the period of exclusivity by mutual written consent based on putting forth best efforts. The time to close depends on the industry. For example, some industries may need regulatory approval or use complex accounting methodologies, which would require more time." What are the components of confirmatory diligence, and how are these workstreams sequenced? (10:06) Jeff: "There is HR, accounting tax compliance, regulatory, legal, IT, and others. Running these workstreams in parallel is key because it is the easiest way to minimize time to close, but you cannot get to the legal documentation until all these other workstreams are completed." At what point do you expect the first turn of the purchase agreement from the buyer? (12:30) Gina: "Pushing to get that first turn of the purchase agreement is very important. We frequently put the purchase agreement in the data room before the LOI, and we expect a markup of it along with the LOI or an issues list, which will help expedite the process.” Who pays for the costs associated with confirmatory diligence and documentation? (13:38) Gina: "The seller pays for the seller's costs, and the buyers pay for the buyer's cost." Jeff: "In the context of a rollover deal, where the company is getting bought by a sponsor, the surviving entity ends up absorbing costs from both sides." What are the typical costs incurred during this phase for sellers and buyers? (14:31) Gina: "The seller can expect to pay for tax counsel or tax accountants if there is tax work to be done, an attorney to assist with negotiating terms, a tax lawyer, and other types of counsels. Buyers can expect to encounter legal fees, accounting fees, consulting fees, IT, technology consulting, and HR consulting." How much does this phase cost for both the sellers and buyers? (14:31) Gina: "Ballpark is anywhere from $75,000 to a couple hundred thousand for a seller. On the buyer's side, a couple hundred thousand easily on diligence for a middle market transaction that's valued $75 to $125 million.” From the seller's side, who is typically involved during the confirmatory diligence phase? (15:55) Gina: "Confirmatory diligence is a big undertaking, and sometimes the knowledge level about the company needs to go beyond the deal team that has been involved to date. At this stage, other people in the company may need to be made aware of the transaction (e.g. sales management, IT, HR, etc.), which can be tricky." What types of issues generally come up in employment contract discussions? (18:57) Gina: "One issue that comes up is pay, which we manage by building out expected compensation levels in the financial model. The second issue is the bonus structure, and the third is vacation. The most important issue that comes up is non-compete, who gets one and what the terms are." Which employees will generally be subject to non-competes? (19:25) Jeff: "There is usually a non-compete for selling shareholders that will be getting proceeds from the deal and non-equity participants that are key to the ongoing entity.” What are the risks associated with employment agreements and non-competes, and how do you mitigate these risks? (20:52) Jeff: "The risk with non-equity participants that are key to the business is that they could choose not to go with the new buyer for whatever reason. This can result in a domino effect from a price change to the deal not happening at all. One tactic that we use is to encourage our seller clients to put in place some type of transaction and retention bonus." Gina: "When Colonnade is working on a transaction, we ask a lot of questions upfront. We will often ask who has employment agreements and what are the terms of those agreements. For business owners that are thinking about selling in a few years, they should be thinking about who their key employees are and how to get them under employment agreements now." What are the different types of employee bonus plans associated with a sale? (23:17) Jeff: "One is transaction bonuses which are for employees who are essentially doing two jobs during the deal process. The second is the retention bonuses that ensure employees are not going to leave when the deal closes." What is Hart Scott Rodino ("HSR"), and how does it impact the transaction? (23:59) Gina: "HSR is one type of regulatory approval that might be needed to close a deal. HSR applies to companies of a certain size, which will need to be approved by the government for anti-trust reasons.” Jeff: "The amount increases every year, but HSR impacts transactions roughly around $80 million in transaction value. There is a filing fee, and it is about a 30-day process.” How long does it typically take from signing the legal documents to closing? Who owns the company during this period? (26:13) Jeff: "It can be 30 days or longer, depending on the different types of approvals. For financial services deals where there is generally regulatory approval, it is often 30 or 60 days. During this period, the seller and buyer essentially both own the company." Can sellers request a break fee if the deal does not close? (27:00) Gina: "In highly competitive, larger transactions, there will be break fees, but in middle market M&A, it's highly unusual to have a break fee. That is because there is not enough diligence that has been done before the signing of the LOI. Without all the information, it is unlikely that buyers will agree to a break fee because they may find out many things during confirmatory diligence." What are typical pitfalls encountered during the exclusivity/documentation phase? How does Colonnade mitigate these risks with seller clients? (28:58) Gina: "One is indemnification, which reps and warranties insurance can mitigate.” Listen to Colonnade’s podcast episode 010: Escaping escrow: Reps & Warranty Insurance: https://www.coladv.com/podcasts/010/ Jeff: "Another pitfall that we have seen involves who owns the intellectual property. To mitigate this risk, we address this issue early in diligence.” Gina: “Another is when the buyers want to speak with the seller company’s top clients. We try to delay that conversation until as late as possible in the process. We want to get to the point where we feel comfortable that we have covered all the major issues, and we're likely to close." Jeff: “The last pitfall that comes to mind is tax, where two parties can have a different view on tax regulations in a given jurisdiction. Our job is to push things forward and cut through all the issues as quickly and efficiently as we can.” What dynamics are typically in play right before a deal closes? (39:02) Jeff: “What I find is when people are the angriest and they're about to throw up their hands, that's when we know we've got a deal, it's sort of where everyone's been pushed to their limits. Everyone's had to give and take, and they're just about ready to walk away, and then the deal signs.” Gina: “And then we celebrate.” Host Information Gina Cocking Gina Cocking serves as the Chief Executive Officer of Colonnade Advisors. She returned to Colonnade as a Managing Director in 2014. Gina began her career in investment banking at Kidder Peabody, was an analyst at Madison Dearborn Partners, and an associate at J.P. Morgan & Co. She was a Vice President at Colonnade Advisors from 1999 to 2003. She left Colonnade to gain operating experience as the Chief Financial Officer of Cobalt Finance, a specialty finance company. She went on to become the Chief Financial Officer of Healthcare Laundry Systems, a private equity-backed company for which she oversaw the successful sale to a strategic acquirer. Gina served as the Line of Business CFO – Consumer Banking and Lending at Discover Financial Services. Gina serves on the Board of Directors of CIB Marine Bancshares, Inc., a bank holding company based in Brookfield, Wisconsin, that operates banking offices in Illinois, Indiana, and Wisconsin. Gina received her BA in Economics and an MBA from the University of Chicago. Additionally, Gina holds the Series 24, 28, 79, and 99 securities licenses. Jeff Guylay Jeff Guylay is a Managing Director of Colonnade Advisors. Prior to joining Colonnade in 2000, Jeff was an investment banker at J.P. Morgan in the firm's Mergers & Acquisitions and Fixed Income Capital Markets groups in New York. He also spent several years in J.P. Morgan's Chicago office. Jeff has over 20 years of M&A and investment banking experience and has served as lead execution partner on over 25 M&A and financing transactions at Colonnade. Jeff received an MBA from Northwestern University's Kellogg Graduate School of Management and a Master of Engineering Management from the University's McCormick School of Engineering. Jeff received a BA from Dartmouth College and a BE from Dartmouth's Thayer School of Engineering. Jeff holds the Series 7, 24, 63, and 79 securities licenses. Jeff serves as a director of the non-profit Nurture, an organization dedicated to enhancing the nutrition and wellness of children and families. About the Middle Market Mergers & Acquisitions Podcast Get the insiders' take on mergers and acquisitions. M&A investment bankers Gina Cocking and Jeff Guylay of Colonnade Advisors discuss the technical aspects of and tactics used in middle market deals. This podcast offers actionable advice and strategies for selling your company and is aimed at owners of middle market companies in the financial services and business services sectors. Middle market companies are generally valued between $20 million and $500 million.

The Recruitment Hackers Podcast
The Real Future of Work: the End of Jobs - Author Jeff Wald

The Recruitment Hackers Podcast

Play Episode Listen Later Feb 9, 2021 27:39


Max: Hello and welcome back to The Recruitment Hackers Podcast, I am your host Max and today I am delighted to welcome Jeff Wald. Jeff Wald is the author of two books including The end of jobs, The rise of on demand workers and agile corporations hot topics, kicking off into 2021, Jeff, welcome to the show.Jeff: Max, thank you so much for having me.Max: It's a pleasure. And we're at opposite sides of the planet Jeff is logging in from Florida, I'm in Hong Kong. But I think the world is smaller than it has ever been. With so many of the so many of those jobs being kind of remote, being advertised as it doesn't matter where you're, where you're hiring you know it's anywhere in the world as long as you've got the skills. So, it must have been a busy year for you, promoting the cause of the remote worker and the on demand worker.  I'm even more excited about the international dimension of that, as opposed to, let's say, the creation of a new job category. I just like the fact that now the talent pool is universal and global.Jeff: I agree, I will say this man. Let's not gloss over this small little fact that you're sitting in Hong Kong, I'm sitting in Florida. This is mind blowing to me if your mind's not freakin blown by this anyone that's listening to the fact that the two of us are sitting on literally opposite sides of the planet. That is amazing. You know pre pandemic I'd said a bunch of times in the book down the hall, on another floor, down the block, or halfway around the world. You don't need to be in the same place to be on the same team. And that has become all the more true during the pandemic or I should say all the more true, it's always been true. Over the last few years it has been all the more aware than people become of that. And this is exemplified here I mean we had a wonderful conversation, prior to you know hitting record here, as if we were colleagues on a project, just working and it to me there was no difference the conversation we had then are having now than you, me sitting in your office.Max: Yes, yes, Well all the mess in my office is outside of camera view. It looks a lot better. Actually, I  control this environment better. Jeff: I'd probably be wearing pants. Those are all things that are slightly different than if I were in your office. But still, it's all amazing to me.Max: That's great. So far listeners out there. Jeff is pantless.Jeff: Allegedly, allegedly!Max: Well. So Jeff, maybe you start by telling us a little bit about yourself, before you became an author on the topic of employment. It's probably not what you grew up, dreaming to become a kind of happened with life. Can you walk us through the main steps in your career. Jeff: Sure, I started my career in finance with JP Morgan,moved to venture capital, which was just an amazing, amazing experience working with entrepreneurs, and getting to see men and women that were just trying to change the world. So exhilarating that I left and started my first company, that failed miserably and basically bankrupted me. But that's the thing with entrepreneurship, pick yourself up dust yourself off and keep going. Second company we built up, and eventually got sold to Salesforce and that was a good outcome not a great outcome. And then this last company Work Market, founded 10 years ago. Work Market is enterprise software that enables companies to organize manage and pay their freelance population, raised about 70 million from Union Square ventures SoftBank and a few others sold the company to ADP almost three years ago. So it's been a great, great journey and the sale to ADP specifically gave me the space, Max to finally sit down and finish this book because I've been working on it for like four years prior to the purchase of ADP. Max: Okay. Well, congrats on that entrepreneurial journey. I haven't read that. After you sell your business, there was a moment. It's a moment where most entrepreneurs kind of struggle with depression. Suddenly a drop, drop in activity and energy. But apparently, you made the most of that sort of drop.Jeff: That's super super interesting. I guess I understand it conceptually. It's one of the silliest reasons to be depressed, not that I wish to ever make fun of depression. I will tell you having your business fail and going bankrupt. I'd say bankrupt as bankruptcy is a technical term. Have your business fail and virtually going bankrupt. That is something that did in general did a lot of depression in me. And, you know, having not leaving my apartment for some time. As I was super bummed out by that, but I had no experience like that with the sale of joy upon  joy and gratitude and fortune. Max: Yeah. Good, I am really happy to hear that because you know who knows maybe one day I'll have to sell some of my shares. And I'd like it to be a happy moments as well. Jeff: God will. God will.Max: So, your new book, The end of jobs, The rise of on demand workers, I'm excited about this topic, because it is all of our, our mission in the corporate world and the enterprise world, to, to create a performance driven culture, and an output driven culture where people are measured on, you know what they produce, as opposed to you know how why they smile. And I think that the transition towards task base job assignment, as opposed to job descriptions, is one for the best because it actually gives more freedom to be able to just get the job done in as much in as little time as possible, which is giving people more freedom to run their lives the way they want. I mean it could be looked at. It could be looked in that way it could be looked at on the opposite side of the spectrum as like a cold market driven approach to employment. Instead of where many employers to position themselves as we are family. But I think the 'we our family' message is a bit outdated personally. How do you feel about that transition? Do you think that we're moving towards a world which is, is that what's covered in your book?Jeff: So there are a number of things that are ever covered in the book about the future of work. The first and the most important is to look at the history of work. I wrote the book because I get very frustrated with people that make predictions about the future of really anything quite frankly without evidence, specifically in the world of work. We have the history of work and how companies workers have come together to produce goods and services throughout different societal changes different technological changes. So let's study those. And the second body of evidence is data. What does the data, tell us how to data trends and patterns, play out. Currently, and obviously through history as well. The third is how companies actually engage workers. You know a lot of people think the labor resource planning meeting goes like this, CEO walks in and says, 'All right, what are we gonna do ot her workers. Let's hire the cheapest ones, meeting adjourned'. That is actually not how those meetings go, there's a lot of variables that go into that equation. And so understanding how companies actually engage workers, understanding the data and the data trends and understanding history, and how society has coped with some of these struggles before. That to me is a very thoughtful way to think about, or start to make predictions about the future of work and that's what we endeavour to do with the book.Max: So the book has a historical component that goes back to the the history of work. I was excited when I read about the time of Abraham Lincoln when they were talking about what's it called wage slaves, or where it was considered that every man should be his own employee, there was a vision that was articulated at the time that you know you were to be on a regular wage is somehow less envious, that everybody should be self employed as kind of coming back a little bit right from one or two years ago.Jeff: It certainly is coming back to the whole idea behind freelancing is the idea that you get to have flexibility and choose your own path that is a very very powerful thing it's something very encoded in our DNA to want to have control of our own destiny, of course, and all the things that the freelancer faces are starting to permeate the full time workforce. So, like called the book The end of jobs the rise of on demand workers. That is not to say I think everyone's going to be a freelancer, that is to say that all the things that the freelancer deals with task based labor, personal responsibility, algorithms, allocating work data driven HR all of those things Max are permeating the full time workforce and all workers are dealing with kind of things.Max: Okay, so, everybody who's looking at Uber drivers thinking, I'm glad I don't have an algorithm, looking over me. Time is coming up. Yeah,Jeff: it is coming. No question. It is coming.Max: Okay. From a talent acquisition perspective which is really my focus. How does this affect recruitment How does the rise of the on demand worker affect recruitment? Do you think that. Are you noticing that they're, they're being hired in a different manner than the permanent staff?Jeff: Well I think there are a few ways that all of these changes impact recruiting. The first is the recruiting is that tip of the spear right your listeners are the first people out there that are dealing with the changes and how companies are structuring their workforces. We need more of X we need less of Y. We need more people in this geography, fewer in that geography. And so recruiting is seeing in real time, the shifts in labor resource management, and that is super super interesting in and of itself. And we can spend some time talking about the types of recruiting they're gonna be more important as we get into skills based labor, and more remote work, and more on demand work and how robots and AI are going to impact the workforce with large. That's one conversation set that is a very interesting conversation to be had. The other part is how does that specific function change, given all of these things is more recruiting going to be done in an on demand capacity? is more recruiting going to be done via robots or AI systems going to be doing more recruiting? And that's another very big impact that quite frankly we don't know how that's going to play out yet. You know there are just way too many variables and it's way too early in the game, but we certainly have seen some trends around on demand recruiting. And we've certainly seen some trends around some of the tasks inherent recruiting starting to be done by machines.Max: With the start of the new year. Are you talking to companies who are setting targets around. I'd like to move, you know, 10, or 20% of my workforce to on demand, does that come down from the board to the operational level?Jeff: Short answer is, look from the board down the answer to that is usually No, that is. You'd hope, but boards, I don't think, sitting on a few public boards myself boards don't get involved that tactically even though I would argue it is strategic and they should be having that type of conversation. Those conversations are very nuanced very complex, and so I've never seen somebody come down and see any point out. When I was running Work Market because if you wanted to increase your usage of freelancers there weren't any really other places to go, if you wanted to manage a large freelance workforce and Work Market. So, I would usually get that call. And I will tell you we very very very rarely got the labor force transformation call. The call of a we're getting into the change how we're doing things we need to bring in, and we're frankly, what I would get those calls, I kind of was like this is going to be a two year conversation, this sucks, but it usually, the call will come from real big companies so you take it and start having obviously if we could work with fortune 50 company we're going to do it. What the call, we would get Max, the calls that we would get all the time is we currently manage a freelance workforce. It is a very large part of our labor force strategy and it has been for years or decades, in some cases, but it's a mess. We don't know who's where who sent what legal Raymond who is working on what is good and what we need a piece of software to help us efficiently and compliantly manage this workforce, that call, I would get all the time. But the idea that, whether it's on demand work or robots and AI, that there's going to be some huge shifts that data doesn't support it. History doesn't support it, and how companies actually engage workers does not support an argument that oh my gosh all those jobs are gonna go next year, 10% of those jobs are gonna go. Labor force statistics and labor resource planning happens very slowly and very methodically and that's that's just the reality. So it's that reality that people should be mindful of when thinking about the future of work.Max: And there's a huge regulatory component where a change in the law, and how easy it is to hire and fire will immediately impact the percentage of the staff, which is on demand right because it drives a lot of the demand.Jeff: It is a incredibly powerful maybe the most powerful, powerful variable and what I call the labor equation, very complex equations series have a system of equations, I should say that guide how companies actually engage workers, and the regulatory environment, especially when it comes to freelance workers, I would argue is the biggest variable in that equation. And the problem with that variable is that that variable itself is all over the map. It's very different how you engage worker in California than what you do in Louisiana. Workers comp board in Wisconsin has an entirely different point of view than the Labor Department in Portugal. So you got to be super super mindful of how complex it is and that's why most companies go, oh my god it's too complicated just keep everybody employed. Obviously that's a bit glib of an interpretation, but it's not that far from accuracy.Max: Yeah. Yeah, I believe it for sure. For me, I experienced it the other way I was like oh my god it's so complicated I have all these full time employees and be better I'd just have contractors, but either way. Either way, the decision towards a simpler way of doing things. I mean, I imagined that it's a little bit easier to decentralize, the compliancy, meaning. Instead of putting the onus on the employer to be in charge of everybody's, you know, being compliance is to say to the on demand worker, it's your responsibility. And by the way, here's a little bit of money to help you file your taxes or, you know, manager, your stuff.Jeff: That is a really good point there. A increasing number of companies out there that are helping the freelancer set up a corporate structure, which really makes it a vendor relationship, and that stuff certainly helps shield the company, but in no way can the company. And I would not pretend to understand laws in China, or anywhere else. But in the United States, you can't pass that liability down to the worker. So when the State Department of Labor comes, you can't say well I, you know, they all signed these legal agreements indemnify me the department labor's we go okay I don't care. There, we view them as your employees, where is our back payroll tax? Where's Social Security payments? Where's unemployment insurance? let's go gimmy gimmy gimmy. They couldn't care less. But there are ways to your point, that companies can certainly mitigate their risk.Max: Great. Well, what else can corporations think about your talking to you know it was in your title the Agile Corporation. What are some of the trends Do you foresee in 2021 for companies who want to become more agile, Besides that, besides work market. What other what other tools or methodologies do you recommend?Jeff: Well I don't anticipate a huge increase in the size of the on demand workforce. But the on demand workforce as a number shrank. So there were over 240 million workers in the on demand workforce now there are high 30 million workers in the workforce, but the labor force as a whole film. And so we're still trying to parse together, did the percent of the on demand workforce shrink grow or stay the same? My guess is that it probably that stayed about the same. So I don't anticipate in 21, a huge movement back. I think it will stay about the same. percent of the labor force, because companies are just focused elsewhere, right now, right they're trying to make sure their teams are safe they're trying to make sure that their supply chains are safe and trying to make sure that their employees are being productive and they're not thinking about labor force transformation and 21. 22 might be a very different scenario. And as we discussed earlier regulation I think it's going to be the biggest variable in that equation. But when we talk about agile Max there there are a host of different ways in which a company can be agile. The best way is managing an army of freelancers. They are completely agile. The next you know you can move into temps and the vendors to other types of relationships. The biggest change that we saw in the labor market unquestionably in terms of how work gets done, I think the biggest change was unemployment and obviously horrific impacts on labor because of the pandemic. But the biggest change in how work actually gets done was clearly remote. It was moving to remote work and does that make a company more agile? of course it does. Allow your workers to be able to work where they want how they want is a very important step in kind of breaking that bone of the one office one manager 9-5 job. And that's the job by the way that is referenced in the title the end of jobs. Robots are taking all of our jobs, far from it, they are not, that is a very clear conclusion from the book. But this idea that you have one office, one manager, you work 9-5 that job is dying and it gets replaced by people being nomadic people having flexible work arrangements, people working in different contexts so that certainly on demand. Temps of freelancers and all that jazz. Those are the kinds of changes that were sped up by the pandemic as companies had to become more agile, there was no everyone's got to come to the office from 9-5, that wouldn't happen in almost anywhere in the world, in  April of 2020. So, that is a huge step forward in the Agile corporations.Max: Actually, to your last points on, I've noticed the same trends and of course but the 9-5 aspects, there are still a bunch of companies that still look at the nine to five hour. And, and there's a strong case to be made for for the work life balance to say, yeah, starts at nine five so you don't invade people's lives, but on the other hand, it does remove you know to do so because you, you say we want to create boundaries and we want to create overlap or people working at the same time. It does also mean you're removing a little bit of freedom from your employees, from your staff, let's say, to decide when they work. Jeff: Of course.Max: It's not that great right, like. I would argue like work whenever, and we try to minimize the number of conference calls if we can.Jeff: That is a fine way to think about it, but when we're thinking about 164 million people in the US labor force actually 154 million now, 164 at the beginning of the pandemic. That is not the way all of them are gonna work. If you have a shift at H&M. That's when your shift is, there's no hey I want to work from Barcelona this weekend no no your shift is here in the store and that's when your shift is, if you're working on the line at Volkswagen your shift is nine to five, or maybe, whatever it is, there is no a I'm going to you know come in late. And I'll stay later, I don't know, that's when the shift starts like you have to be there. So it's important to think about the full context of the labor force. When we have conversations about the future of work it's easy to slip into this idea that everybody works in these remote first type jobs that are very enabled by remote work and digital work and all these other things. The reality is most people don't, that's just not the reality for most workers in any labor force.Max: Agreed. Agreed. And I work in these industries where people do have to physically come a lot of the time, so I know that's the case, but I guess, for the knowledge worker. I still see, I still see people trying to cling on to this office. You know way of work, sure where, whereas all communication, eventually, as much communication as possible should be moved to the asynchronous. So because we can read faster than we can sit through a meeting.Jeff: I completely agree. But to your point, some people do enjoy it. And there are tremendous benefits to it. I saw a study that 93% of remote workers still live within a commutable distance of the office. Because going remote doesn't mean you never go to the office, there are benefits to having everybody come together and have brainstorming sessions and do small talk. Those serendipitous encounters at the watercooler, they're actually incredibly good for productivity, do they need to be every day? Of course not. Can we allow people to flexible work arrangements, those that want it and those that can do it. Sure. But here's another important thing 42% of the US workforce can work remotely. That's it. Max: yeah.Jeff: And the US by the way is the highest percentage of any workforce on the planet that can work remotely. But another way to say that is 58% of workers, cannot do this digital lifestyle, cannot work remotely their jobs won't allow it. So we need to be mindful of that when having these types of conversations.Max: Alright, so it was a bubble 2020 bubble and the narrative, to a certain degree that was not really supported by hard data. In fact, most people will still be coming into the office and, and the on demand worker or while it's an ongoing transition. We haven't seen a huge rise in the percentage of the workforce that goes on demand. And the robots will now take our jobs. I'm sure that there's a lot more depth to this book, than my cliff notes here. How do people find your book, I'm gonna put a link to where do you want to sell, are we selling through Amazon or is there another place?Jeff: There are tons of other places but 98% of the books that have been sold have been bought on Amazon and, you know, certainly when the book came out in June, there was almost no other place to buy the book. That's not true actually was on barnesandnoble.com, a few other web sellers but it's funny I'm down here in Florida now and Florida's COVID restrictions are much looser than my normal home in New York, and I passed the Barnes and Noble today. As I was going school, get my office set up down here. Home Office, and I'm super excited to go tomorrow and see if my book is there, so hopefully it is in bookstores where it's supposed to be but it'd be the first time I get a chance to go into an old school Barnes noble I'm super excited. Max: All right. Don't forget to put on your protective gear for that Barnes and Noble experience.Jeff: No question. No question.Max: And, well, how do people get a hold of you? What's the best way to reach you?Jeff: Well, you can certainly follow me on twitter at @Jeffreywald, that's the only place that I go by Jeffrey for wells I go by Jeff, but I couldn't couldn't get Jeff Wald, and LinkedIn, I'm always I will always accept connections on LinkedIn and Amazon is certainly the best place to find the book.Max: Wonderful. Well thanks Jeff for sharing your insights and coming on the show and. Well, I look forward to my FREE copy in the mail. No, I'll go and get myself a copy I've got a bunch of books,I am a little bit behind on my reading, and I'll go get myself a copy right now.Jeff: I appreciate it thank you so much. It was so great to chat and I look forward to listening to many more episodes of this podcast.Max: Thanks, Jeff. Jeff: Thank you.

Middle Market Mergers and Acquisitions by Colonnade Advisors
MM M&A 012: What is my company worth?

Middle Market Mergers and Acquisitions by Colonnade Advisors

Play Episode Listen Later Dec 2, 2020 24:14


In this episode, Gina Cocking and Jeff Guylay focus on valuation - determining what your company is worth. Key takeaways from this episode are: The right valuation methodology depends on the industry and the company Valuation should not be overly focused on the multiple. It also depends on what you to apply the multiple to Market price discovery through a competitive process will drive the highest valuation In this episode, Colonnade Advisors addresses the following questions as related to valuation: What are the different valuation methodologies used? (00:48) Gina: "There are comparable company trading, comparable transaction, and the more complex discounted cash flow valuations. There are also other types of valuation methods that are not relevant to what we do on a day-to-day, so we will focus on the three main ones." At what point in the process is valuation analysis generally performed? (01:12) Jeff: "It is often performed ahead of going to market. Many times, it is ahead of us doing due diligence. We might update these valuation analyses for our clients at various points throughout the process, and we do a gut check on whether we are ready to go to market." What is the value of hiring a sell-side financial advisor in determining the transaction price? (01:12) Jeff: "Ultimately, it is the market that sets the transaction price. The real value of hiring a financial advisor to help sell a business is to get the best price and terms, which is generally achieved through an auction process." What is a comparable transaction valuation? (02:43) Jeff: "It is what the market has offered up to companies that are comparable to the company being evaluated. For example, if a company sold at eight times EBITDA, it's logical to assume that another company that is very similar, or comparable, would trade at eight times EBITDA." What attributes of a target company will impact the comparable transaction multiple? (03:37) Jeff: "The multiple will depend on all sorts of attributes of the specific target company, whether it is growing faster or slower, whether the management team is better or worse, client concentration, or geographic concentration. All sorts of things influence the multiple that a buyer is willing to pay." What is comparable trading valuation, and how does it apply to middle market transactions? (04:17) Jeff: "This involves looking at where the comparable public companies are trading in the public markets. The comparable trading valuation metrics are a little more theoretical for the middle market transactions. It is a helpful metric and something used in negotiations with buyers, but there are all sorts of factors that drive the multiple relative to what you might expect to achieve in the private market." Gina: "Volatility in the public market will impact the valuation of public companies.  You do not see the same day to day volatility in a private transaction. For a middle market company, comparable trading valuation is less relevant because of the size differential." What is discounted cash flow valuation? (06:35) Jeff: "The discounted cash flow valuation is an analysis of the businesses' free cash flows. Then discount the cash flows at a certain discount rate to arrive at the net present value of all those cash flows. The biggest drivers of this analysis include the discount rate, which could be derived using the CAPM model, and a variety of other factors." What industries use revenue multiples? (09:37) Gina: "Pre-profitability companies use revenue multiples. It is often used in high growth type businesses such as software and biotech companies and recurring revenue companies. The revenue multiples can range depending on the industry." What is the rationale for using EBITDA multiples? (10:29) Gina: "EBITDA is a proxy for cash flow and normalizes income between various companies." How do you determine which multiple metrics to use? (11:58) Jeff: "There are many different metrics that buyers and sellers can focus on, and it is generally industry-specific. It is important for the seller and their advisor to focus on what are the right metrics for the seller's business." What are the multiple metrics applied to? (12:34) Gina: "There are a lot of different ways to look at what the metric is. Different methods are used in different industries. Some industries use GAAP accounting, and some industries use some special purpose accounting. There are also add-backs to EBITDA so that anything unusual and extraordinary can be added back to increase EBITDA and valuation." What is the significance of add-backs? (14:18) Jeff: "Add-backs help demonstrate what the company's earnings stream looks like going forward. It gives a sense of the pure earnings of the business." What are pro forma adjustments to EBITDA? (14:58) Gina: "It involves adjusting historical EBITDA for known future or recent arrangements, such as a decrease in expense or increase in operating efficiency. The adjusted EBITDA demonstrates how the business is going to operate going forward." What is synergy in an M&A transaction, and can the seller benefit? (17:13) Gina: "Synergy is when two companies combine, and instead of being one plus one equals two, one plus one equals three. That could be because of expense reductions or revenue enhancements. Buyers will benefit from synergies in the future. A competitive process will increase the likelihood that a seller will get paid for at least a portion of the synergies a buyer may achieve." How does customer concentration impact valuation? (19:26) Gina: "Customer concentration or any distribution channel concentration will typically reduce valuation. Customer concentration involves anything greater than 15%." How does the transaction process impact the price and term? (20:49) Jeff: "There are various factors that could lead to a potential buyer dropping out. Therefore, finding the greatest number of highly qualified buyers and working diligently through the process delivers the best price and term for sellers." What is the difference between enterprise value versus equity value? (21:47) Gina: "If a company has debt on the books, then the debt is subtracted from the enterprise value to get to the equity value." What is the ultimate answer to "What is my company worth?" (23:30) Gina: "Your company is worth whatever someone is willing to pay for it. Our job is to create a competitive environment to yield the highest price and the best terms." Host Information Gina Cocking Gina Cocking serves as the Chief Executive Officer of Colonnade Advisors. She returned to Colonnade as a Managing Director in 2014. Gina began her career in investment banking at Kidder Peabody, was an analyst at Madison Dearborn Partners, and an associate at J.P. Morgan & Co. She was a Vice President at Colonnade Advisors from 1999 to 2003. She left Colonnade to gain operating experience as the Chief Financial Officer of Cobalt Finance, a specialty finance company. She went on to become the Chief Financial Officer of Healthcare Laundry Systems, a private equity-backed company for which she oversaw the successful sale to a strategic acquirer. Gina served as the Line of Business CFO – Consumer Banking and Lending at Discover Financial Services. Gina serves on the Board of Directors of CIB Marine Bancshares, Inc., a bank holding company based in Brookfield, Wisconsin, that operates banking offices in Illinois, Indiana, and Wisconsin. Gina received her BA in Economics and an MBA from the University of Chicago. Additionally, Gina holds the Series 24, 28, 79, and 99 securities licenses. Jeff Guylay Jeff Guylay is a Managing Director of Colonnade Advisors. Prior to joining Colonnade in 2000, Jeff was an investment banker at J.P. Morgan in the firm's Mergers & Acquisitions and Fixed Income Capital Markets groups in New York. He also spent several years in J.P. Morgan's Chicago office. Jeff has over 20 years of M&A and investment banking experience and has served as lead execution partner on over 25 M&A and financing transactions at Colonnade. Jeff received an MBA from Northwestern University's Kellogg Graduate School of Management and a Master of Engineering Management from the University's McCormick School of Engineering. Jeff received a BA from Dartmouth College and a BE from Dartmouth's Thayer School of Engineering. Jeff holds the Series 7, 24, 63, and 79 securities licenses. Jeff serves as a director of the non-profit Nurture, an organization dedicated to enhancing the nutrition and wellness of children and families. About the Middle Market Mergers & Acquisitions Podcast Get the insiders' take on mergers and acquisitions. M&A investment bankers Gina Cocking and Jeff Guylay of Colonnade Advisors discuss the technical aspects of and tactics used in middle market deals. This podcast offers actionable advice and strategies for selling your company and is aimed at owners of middle market companies in the financial services and business services sectors. Middle market companies are generally valued between $20 million and $500 million.

Middle Market Mergers and Acquisitions by Colonnade Advisors
MM M&A 011: Empire Building Through a Roll-Up Strategy

Middle Market Mergers and Acquisitions by Colonnade Advisors

Play Episode Listen Later Nov 16, 2020 26:02


In this episode, Gina Cocking and Jeff Guylay continue their discussion on deal structuring. Today, the focus is on roll-ups. Key takeaways from this episode are: • Highly fragmented industries are ripe for roll-ups • A roll-up is an attractive exit alternative for companies that are subscale or have an incomplete management organization • Transparency from both the buyer and the seller leads to the most successful outcomes Other episodes in our series about deal structuring include price and terms, earn outs, rollover equity, and reps and warranty insurance.  Later in this episode, Gina is joined by our guest Rob Humble, Chief Revenue Officer at Innovative Aftermarket Systems ("IAS"), to share his insights from executing a roll-up strategy for IAS as the Senior Vice President of Strategy and Corporate Development. In this episode, Colonnade Advisors addresses the following questions as related to roll-ups: What is a roll-up? (01:02) Gina: "A roll-up is when an owner, which could be a private equity owner or a strategic, starts with a platform company. The roll-up adds other companies in the same industry, and they're typically smaller companies than the platform. The add-on companies are rolled into the platform." What is the purpose of implementing a roll-up strategy? (01:34) Gina: "It's a way for a company to increase in size inorganically, quickly, and while doing so, they are recognizing both expense synergies and perhaps revenue synergies." Jeff: "It plays on the themes that we've talked about in other episodes, which is bigger is better, in many respects. Generally, bigger companies are more attractive to a wider audience of investors or buyers." What industries typically do roll-ups? (02:42) Gina: "One industry that comes to mind is the insurance agency industry. We have seen this time and time again, where a private equity firm buys an insurance agency, a large insurance agency, and then they start making smaller acquisitions." Jeff: "The insurance distribution sector is perfect for the roll-up strategy. It's low capital intensity, recurring revenue, and highly fragmented market." What type of companies implement roll-up strategies? (04:29) Jeff: "This strategy works for large public companies, private equity firms, and independent companies." What is the rationale for roll-ups? (05:34) Gina: "One is geographic. Number two, it might be because of specific product knowledge. Number three, it can be to get a specific customer. What is the financial benefit of roll-ups? (06:49) Jeff: "A large platform company is going to trade at a higher multiple than a smaller company. There's arbitrage if a large platform company acquires smaller add-on acquisitions and integrates successfully." Why is integration important? (07:56) Gina: "Sometimes, acquisitions fail because they fail to integrate properly. That is not just making sure everybody is on the same technology system, but integrating cultures, integrating client relationships, and integrating product sets. That is the real challenge in an acquisition." Jeff: "The integration is key to a lot of things, certainly to value maximization over time." How do add-on companies benefit from roll-ups? (10:23) Jeff: "The add-on companies benefit from the resources of the parent company, the larger enterprise. Add-on companies can grow their business, which probably will have some contingent consideration involved in the transaction, and be a part of the success." Gina: "The smaller company, ideally, will have some rollover equity or earn outs that are structured on growth in the company, so you get to participate in the upside." When Colonnade represents a seller into a roll-up, what diligence is done on the buyer? (12:10) Jeff: "We do diligence on the parent company and the financial sponsor. We talk about their track record and history in doing roll-ups. We do diligence on the acquisitions they have done already and the outlook of the combined entity. Part of the consideration to our client is likely going to be equity in this new entity, so we will think about how much to rollover, what's it worth, what are all the conditions around it, and who is in control." What is one of the challenges for sellers in a roll-up? And what are the trade-offs? (13:23) Gina: "One of the challenges for entrepreneurs when they go through a sale process is the sudden realization that they're going to have a boss. Entrepreneurs are entrepreneurs for a reason. They like running the show. It can be a challenge to be part of a larger organization and not be in charge." Jeff: "There are the trade outs with control. Being part of a larger organization, the add-on company benefits from the growth of the larger organization, increased size, and resources for future acquisitions." What is the potential upside for sellers that rolled over equity into the new entity from a financial perspective? (15:63) Gina: "The upside can be enormous. The next exit with the platform could be worth just as much if not more than when the seller went in and did the first transaction." What is your outlook on roll-ups used in transactions? (17:45) Gina: "Roll-ups are used all the time. Going into the next decade, I do not see a slow down in roll-ups as a strategy being deployed by private equity firms." Gina invites Rob Humble, Chief Revenue Officer at IAS, to share his insights from executing a roll-up strategy for IAS as the Senior Vice President of Strategy and Corporate Development. What is the most effective structure for proceeds to the seller for a roll-up? (18:40) • An acquisition under private equity ownership generally comes with an equity component • For sellers that are not looking to be a long-term part of a bigger organization, they are likely maximizing value at closing, which means they are going to value cash and as little earn out as possible • IAS was private equity-owned and was buying companies that bought into the private equity model, which is to invest the executive’s energy, and together produce greater value and then share in that value How do you guide sellers that shy away from roll-ups because they want to protect their employees? (21:13) • As the buyer, be honest and transparent as much as possible throughout the process • Sellers can build a deep trust with the buyer and can trust that the deal that they entered into together is going to work out for not only what the buyers’ strategic intent is, but sellers’ as well • It is best if the buyer can collaborate with the sellers on what are the ways that they can be more efficient together How do you get business owners comfortable with working for someone post the transaction? (23:33) • It comes back to honesty, transparency, and as much diligence both ways as possible. What would you tell a business owner that is getting ready to sell into a roll-up strategy? (23:51) • Get prepared and get organized. Perform diligence on your own company before you let somebody else look at your company • Sellers should understand why they want to sell then find a buyer that they believe meets that criteria Featured guest bio and contact information: Rob Humble Email: rhumble@iasdirect.com Rob Humble is the Chief Revenue Officer at Innovative Aftermarket Systems. Before coming to IAS Rob held strategy and corporate development leadership roles with financial services firms NetSpend and Rent-A-Center. Prior to his time in financial services, Rob held strategy, finance, and operations roles at Fortune 500 companies spanning the automotive, defense & aerospace, and chemical industries. Rob earned his bachelor's degree in mechanical engineering from Washington University in St. Louis, graduating magna cum laude. He also holds an MBA from Harvard Business School. Rob lives in Austin, TX with his wife and two young kids. He enjoys hanging out with his family, distance running, binge-watching the hottest TV shows, watching Oklahoma Sooners football and indulging in random interests including knitting, furniture building, and home improvement. Host Information: Gina Cocking Gina Cocking serves as the Chief Executive Officer of Colonnade Advisors. She returned to Colonnade as a Managing Director in 2014. Gina began her career in investment banking at Kidder Peabody, was an analyst at Madison Dearborn Partners, and an associate at J.P. Morgan & Co. She was a Vice President at Colonnade Advisors from 1999 to 2003. She left Colonnade to gain operating experience as the Chief Financial Officer of Cobalt Finance, a specialty finance company. She went on to become the Chief Financial Officer of Healthcare Laundry Systems, a privateequity-backed company for which she oversaw the successful sale to a strategic acquirer. Gina served as the Line of Business CFO – Consumer Banking and Lending at Discover Financial Services. Gina serves on the Board of Directors of CIB Marine Bancshares, Inc., a bank holding company based in Brookfield, Wisconsin, that operates banking offices in Illinois, Indiana, and Wisconsin. Gina received her BA in Economics and an MBA from the University of Chicago. Additionally, Gina holds the Series 24, 28, 79, and 99 securities licenses. Jeff Guylay Jeff Guylay is a Managing Director of Colonnade Advisors. Prior to joining Colonnade in 2000, Jeff was an investment banker at J.P. Morgan in the firm's Mergers & Acquisitions and Fixed Income Capital Markets groups in New York. He also spent several years in J.P. Morgan's Chicago office. Jeff has over 20 years of M&A and investment banking experience and has served as lead execution partner on over 25 M&A and financing transactions at Colonnade. Jeff received an MBA from Northwestern University's Kellogg Graduate School of Management and a Master of Engineering Management from the University's McCormick School of Engineering. Jeff received a BA from Dartmouth College and a BE from Dartmouth's Thayer School of Engineering. Jeff holds the Series 7, 24, 63, and 79 securities licenses. Jeff serves as a director of the non-profit Nurture, an organization dedicated to enhancing the nutrition and wellness of children and families. About the Middle Market Mergers & Acquisitions Podcast Get the insiders' take on mergers and acquisitions. M&A investment bankers Gina Cocking and Jeff Guylay of Colonnade Advisors discuss the technical aspects of and tactics used in middle market deals. This podcast offers actionable advice and strategies for selling your company and is aimed at owners of middle market companies in the financial services and business services sectors. Middle market companies are generally valued between $20 million and $500 million.

Middle Market Mergers and Acquisitions by Colonnade Advisors
MM M&A 009: Second Bite at the Apple - Aligning Interests through Rollover Equity

Middle Market Mergers and Acquisitions by Colonnade Advisors

Play Episode Listen Later Oct 15, 2020 37:49


In this episode, Gina Cocking and Jeff Guylay continue their discussion on deal structuring. Today, we explore rollover equity, a form of contingent consideration in which the seller takes a portion of its proceeds as equity ownership of the new or acquiring company. In this episode, we cover: Why is rollover equity important? How often is it used? How is it structured? What happens in platform investments vs smaller add ons? How does it differ from management incentive pools and from taking stock as consideration in a publicly traded company? We talked about how the math works related to rollover equity in leveraged transactions and how we help manage these critical negotiations with buyers. Importantly, we talked about how rollover equity can set up all parties in the transaction for success through the alignment of interests. Other episodes in our series about deal structuring include price and terms, earn outs, R&W insurance, and roll ups.  More than two-thirds of M&A transactions in recent times utilize rollover equity. The primary purpose of rollover equity is to align interests through shared economic ownership. Rollover equity gives the owner a second bite at the apple, as you’ll hear in the episode and read in the show notes. Rollover equity is also tax-deferred. Later in the episode, Jeff is joined by our guest Vernon Rew, a partner at Whitaker, Chalk, Swindle & Schwartz, who shares his perspective on closing conditions and the importance of staying on task and getting deals to the finish line. In this episode, Colonnade Advisors addresses the following questions as related to rollover equity: What is rollover equity? (00:55) Gina: "The sellers of the company, the founders, the owners are going to take some of their proceeds and roll it over into equity and ownership of what we call Newco. Newco is the new or acquiring entity." Why is rollover an important equity component of a transaction? (01:52) Jeff: "Probably the most important answer or topic here is that it aligns interests, particularly when you're talking to private equity-backed buyers." How often is rollover equity used in transactions? (02:56) Gina: "67% of the transactions in recent times have utilized rollover equity." What are the tax implications of rollover equity? (05:10) Gina: "Taking equity as consideration in a deal is tax-deferred. With equity that you are rolling over, no taxes are paid at the closing. You're not going to pay taxes until you sell that equity and convert it into cash." What are the other advantages of rollover equity? (05:55) Gina: "Another advantage of rollover equity is that it gives the owner a second bite at the apple. Rollover equity can be valuable. With that second bite at the apple, we have seen many cases of people that have gotten very wealthy with the second turn of the sale of the business, and even third turn." What is the seller demonstrating to the buyer when rolling over equity? (08:40) Jeff: "Showing commitment and confidence in the forecast and the business, and just setting up the business for success through mutual understanding." What is the role of a financial advisor, such as Colonnade, in rollover equity discussions? (09:30) Gina: "Rollover equity introduces a whole other component to diligence where it's the diligence of the other side. That is where a trusted advisor's perspective is helpful. In our case, with many of our clients on the deals we work on, we know the universe of potential buyers pretty well, so we can give our perspective." If selling the business to a private equity firm as a platform company, what type of diligence should be performed? (10:15) Jeff: "There is due diligence around the private equity firm and their experience and track record. The dating dynamics of some of these management meetings are fundamental because these are going to be your partners." If selling the business to a private equity-backed strategic company, what type of diligence should be performed? (10:47) Jeff: "You have to conduct due diligence and relative valuation on this private equity-backed firm that already exists and has operations and that already has a set private market valuation." How is rollover equity different from stock options and incentive pools? (12:05) Gina: "Stock options and incentive pools are subjective decisions by the board as to what you get for hitting certain performance goals. It is very different. Rollover equity is your property, and you have property rights to it. They cannot take that away." Are there restrictions on what the seller can do with the rollover equity? (13:01) Jeff: "There are almost certainly going to be restrictions around what you can do with the stock. The operating agreement that your attorneys will help you review, and you'll sign onto, will typically have pretty strict covenants related to how you can dispose of the stock." What type of securities are used with rollover equity? (15:45) Gina: "Our goal is to get pari passu, meaning the same type. We make sure in deals today that the sellers get the same type of equity as the buyers. If the buyers are getting preferred, we want the sellers to get preferred." Typically, what percentage of the total transaction consideration is rolled over? (18:12) Gina: "It's a complicated question. Buyers typically look for 10%-40% equity rollover. It depends on who the buyer is. Private equity buyers will probably want to see a lot of rollover equity. Buyers look at it as a core part of their strategy to incentivize everyone." How do rollover equity considerations differ if the buyer is a public company? (19:40) Jeff: "With public companies, the discussion is usually different. It can be a tax discussion. It is a separate analysis. The thesis is the same, but it is used really for other purposes. When do rollover equity discussions typically take place in a transaction? (20:45) Jeff: "We usually have it as one of the near-final conversations with the buyer that we select in exclusivity." How is the seller's rollover equity percentage ownership of the new company determined? (22:47) Gina: "It is based on the equity value of the new or acquiring company and depends on the leverage in the transaction. The percentage of your rollover proceeds does not necessarily equate to the percentage of the new company ownership." What are the benefits of using a financial advisor in rollover equity discussions between the seller and buyer? (25:50) Jeff: "Our experience in working with these types of transactions is powerful in terms of making sure that they get done well for the seller. Otherwise, these things can blow up pretty quickly if you just put people in a room and start talking about rollover equity." What effect does any additional equity grants or incentives for employees have on the seller's equity rollover percentage ownership of the company? (26:48) Jeff Guylay: "There'll be diluted pro-rata just like everyone else. The sellers and buyers have locked arms, and they are in the same security and position. Any additional equity grants or incentives will dilute everyone on a pro-rata or equal basis." Will current sellers of the company be asked to rollover equity at the next transaction? If so, why? (27:06) Gina: "Current sellers of the company - who are important to the ongoing operations of the business - may have to rollover equity again in the future at the next transaction. For example, a private equity firm has bought your company, and you rolled over equity. The private equity firm then sells the company to another private equity firm in the future. The new owner would like to see you be equally incentivized or have skin in the game and would like to have some equity rollover." Can the owner completely exit the business after a few years post-transaction? (28:52) Jeff: "That is usually a good conversation to have with buyers as long as we're clear and upfront about it. We want to make sure that everyone knows that the management transition plan has to start immediately. You have to be in a position where you've got the next set of leaders up and ready for the next transaction, whether it's one, three, or five years." Jeff invites Vernon Rew, a partner at Whitaker, Chalk, Swindle & Schwartz, to share his perspective on closing conditions in a transaction. What closing conditions do you see in M&A transactions, and why are these conditions so important? Closing conditions are critical because if a single closing condition is not met, you're likely not closing It is important to obtain all necessary third-party consents and all required regulatory approvals The material adverse effect and the material adverse change provisions are essential and often highly negotiated Focusing on the process and keeping all members of the seller team on task and focused on getting to the close are critical Time is critical. A delay in completing a closing consideration could kill a deal Featured guest bio and contact information: Vernon Rew Email: vrew@whitakerchalk.com Vernon Rew has over 35 years of legal experience representing business clients in corporate matters, contract negotiations, mergers and acquisitions transactions, and securities law compliance matters. Vernon has represented both public companies and privately held entities in a wide variety of industries. Vernon's mergers and acquisitions practice has included representation of both sellers and buyers in a large number of transactions throughout his career. He has worked in a wide range of manufacturing and service industries in his corporate and contracts negotiating practice. In his securities law compliance practice, he has counseled clients with SEC filings, tender offers, public offerings, and going private transactions. Vernon considers himself a relationship lawyer and is an experienced counselor and negotiator on behalf of his clients.

Up Next In Commerce
Ecommerce Ties That Bind: How Spiral is Building a Full-Service Ecommerce Experience

Up Next In Commerce

Play Episode Listen Later Sep 29, 2020 50:29


Without question, the last several months have accelerated ecommerce adoption and drastically changed consumer behavior. The entire sales lifecycle from finding a prospect to closing the deal has been turned upside down. Now two key obstacles lie in the path of ecommerce leaders… The first is the more obvious, more discussed problem: How do you operationally and technically need to change to meet your customers' evolving needs?  The second key obstacle is not as often addressed, but is equally as important: How do you then communicate to your customers that even in these changing times, you are equipped and ready to meet their new needs?  The binding and laminating business doesn’t sound like it would be ripe with insights into answers to both of these questions, but Jeff McRitchie, the VP of eCommerce at Spiral, is here to prove that assumption wrong.  Jeff has nearly two decades of experience in the ecommerce and digital space. Just last year, his own company, MyBinding.com, was acquired by Spiral, where he now helps lead ecommerce operations. On this episode of Up Next in Commerce, Jeff explains what it has been like merging his ecommerce business with a more traditional binding company. He shares some of the challenges he faced along the way, and what methods and strategies he’s leaned into to find success. Jeff also discusses tips for building out a winning SEO and content strategy, and how ecommerce is playing a larger role across the entire business, including in customer acquisition and content marketing.  Main Takeaways:   The Merge: When a primarily ecommerce company merges with a larger more traditional business, there are a lot of balls in the air to create a cohesive and efficient system. Most of the adjustments have to be made on the side of the acquiring company, which needs to learn how to compete in a digital marketplace. That means that education has to be a priority both internally and externally.    Use Their Words: Every industry has jargon and industry-speak. It’s easy to fall into the trap of using that language throughout your platforms and channels. Instead, you have to meet customers where they are with their own language, and use the words and phrases they use. This will ensure that your customers feel like you are speaking directly to them and it also helps create more longtail SEO opportunities. Content For Now that Pays Off Later: Some of the most-viewed content you create might be consumed after a customer makes a purchase. On the surface, that might make it seem like content-creation is not a good customer acquisition strategy. On the contrary, it’s actually a critical long-term strategy in the sense that good, useful content is critical for brand awareness and building trust, which customers will remember when they need to buy in the future. For an in-depth look at this episode, check out the full transcript below. Quotes have been edited for clarity and length. --- Up Next in Commerce is brought to you by Salesforce Commerce Cloud. Respond quickly to changing customer needs with flexible Ecommerce connected to marketing, sales, and service. Deliver intelligent commerce experiences your customers can trust, across every channel. Together, we’re ready for what’s next in commerce. Learn more at salesforce.com/commerce --- Transcript: Stephanie: Welcome to another episode of Up Next In Commerce. This is your host, Stephanie Postles. Today on the show, we have Jeff McRitchie, the VP of Ecommerce at Spiral Binding, My Binding and Binding 101. Jeff welcome. Jeff: Thank you. Stephanie: Thanks for coming on the show. I was excited when I was looking through Spiral's background. It looked like you guys started in 1932. Is that right? Jeff: Yeah. I mean, we've been around for a long time. Stephanie: Yeah. I think that'll make for a really fun conversation because I'm sure that the company and you have seen a lot of transformation over the years, so that'll be fun to dive into later. Jeff: For sure. Stephanie: Tell me a bit about Spiral. What is it? How do I think about what you guys do? Jeff: So Spiral is really a company and we've built ourselves around helping people to bind presentations and proposals. We do a little bit of laminating. We do a little bit of other things, but really we focus a lot on binding. We sell the equipment and the supplies for people to be able to bind presentations, proposals, books and training materials. Those are probably the primary things that come out of it. Jeff: We're a niche player in the office products market is one way to think about it. We're an interesting a hybrid of a company because we sell a little bit in B2B, a lot in B2B, a lot in B2C or B2B to C sort of space. Then we also have some really interesting national account sort of business as well. Kind of a little bit of an evolving company, we're a manufacturer and a distributor at the same time. We have lots of different faces which presents some really cool challenges from the standpoint of being in a digital transformation or Ecommerce role. Stephanie: Okay cool. So how long have you been at the company for? Jeff: My story is interesting, actually I'm co founder of a company called My Binding about 17 years ago. Last year we sold to Spiral. I've been with Spiral for just over a year now in this sort of digital transformation role but with My Binding, which was more of a pure play Ecommerce space. We grew and we were the largest sort of binding Ecommerce player in the market. Then all of a sudden we joined forces essentially with Spiral, which was the largest sort of B2B player in the market. Now we're one force together going after the binding and laminating market. Stephanie: Oh, interesting. What was that process like where you had your own company, you guys were selling online and then joining a company that maybe wasn't doing as much of that. What was that process like when it came to incorporating your company into an existing older company? Jeff: There's definitely some upsides. Suddenly you have increased purchasing power, you have more access to talent and capital. Those were amazing things, but the integration side of things is tough. Jeff: I mean, you're trying to merge systems and figure out how everything works together and learn the language of a new company. Some of that stuff is not as easy as it should be, as well as trying to figure out where exactly are they on the landscape of digital transformation and how do you navigate that when... We were pretty much an Ecommerce or digital first organization. That wasn't really their background. Now we're figuring out how do we be both? That's a pretty big challenge actually. Stephanie: Yeah. That sounds really difficult. What does the customer journey look like for Spiral or what did it look like compared to My Binding? Jeff: I guess the best way to think about it would be that in a B2B, B2C sort of Ecommerce experience, we were really building our business around a large number of transactions with a large number of customers, essentially small transactions to a large number of customers. On the more traditional B2B model, the traditional side of the Spiral business would have been around a small number of transactions to really big customers. Which is pretty typical when you look at this idea of traditional B2B and more like an Ecommerce B2B sort of experience. At least a B2B, to C sort of experience. Jeff: That was the really interesting thing is that we were dealing with customers from all over the country that in almost every industry that you can imagine, but most of them were rather small and we are filling specific needs for those customers. That was fine. On the spiral side you were looking and saying, hey, they had deep relationships. Relationships that went back decades, in many cases, with organizations where they were the supplier of choice. They had complex contracts and all those kinds of things. That was never really part of the Ecommerce world. Trying to figure out how do you merge those two together to get the best of both. It's not easy, but it's really fun actually. Stephanie: Yeah. I can imagine it takes a lot of training for their existing customers who are used to those contracts and used to things being done a certain way. How are you maybe going about training the customers who are used to doing things the old way to be like, Hey, we actually can do this online usually. Jeff: Slowly. Stephanie: Any lessons there that someone can take away if they're going through the same thing right now within their org? Jeff: You don't have to do it all at once. Our approach is really to allow customers to interact with us the way they want to interact with us by giving them better options. Really the priorities for this past year have been to try to integrate systems and then upgrade our footprint so that we can allow the company to put its best foot forward. Really starting with the E-comm side and getting everybody on the same platform and then tied into the same systems. Jeff: Now we're actually probably just a couple of months away from launching our brand new B2B E-com experience for the traditional spiral customers. Essentially we have been allowing them to continue to exist and deal with the company in the way that they used to while improving the experience and then bringing the platform up for the entire organization. One of the things about especially B2B commerce is that it gets really complicated as you tie in lots and lots of systems and a lot of interesting rules. Jeff: Customers want to deal with you in the way that they want to deal with you. What we've found is that we have to build specific experiences for our different customer types. That's the approach that we've been taking. I think that's a good approach from the standpoint of, you're not trying to force everybody into the same sort of experience because not everybody wants to deal with it in the same way. As a large organization that sort of deals with these sort of different challenges, we have to answer questions, like, do you display pricing on the front end of your website or is it a login only experience? Jeff: What pricing do you show people or what price pricing do people get and how do you control that and how do you manage that and how do you make sure that that experience is personalized for individuals? Then there's the age old question, which is really challenging in an organization that has multi channels and that is, how do you deal with the channel conflict? Whose customer is that? I guess it depends on who you would ask because everybody thinks that the customer is theirs. Yet ultimately the customer needs to deal with the organization in a way that the customer feels the most comfortable, not in the way that the organization feels most comfortable. Stephanie: Yeah. That makes sense. What kind of legacy or what things did the legacy customers get hung up on the most when you guys are making this transition and trying to show them that a new platform's coming? Is there similar themes of things that they're like, oh, I don't feel comfortable with that, or, I don't want to move because of this? Jeff: I think when it comes to customers, most customers want technology. I mean, they become comfortable. I think that they don't want to lose functionality. That's been probably one of the hardest things is that even if that functionality wasn't the best, they become comfortable with it and they don't really want to lose that. Yes they do want a best in class experience. One of the hard things that we all have to deal with in Ecommerce right now is that the bar has been raised. Jeff: There are people who want more and more features in terms of their online shopping experience. What you find is that you need to be able to roll these things out, but you need to make sure that it doesn't make things harder on those customers, especially long time corporate customers. They are really dependent on these things working smoothly and easily. That's actually one of the hardest challenges in this process has been, okay, well, we've done a lot of cool things for customers over the years. One off, you build a feature on the website just for that one customer. Jeff: Well, trying to then redo that and not lose a substantial amount of functionality for specific customers, especially large customers that you have these really deep relationships with, that's pretty tough. Stephanie: I was actually going to ask that next, when you mentioned that you were personalizing the experience for certain customers to make them feel more comfortable or hearing what they want and trying to incorporate that into the platform, how do you go about picking out what things you should maybe personalize or give to the customer without going down a worm hole of having a personal experience for every customer? Jeff: Ultimately, we're taking an approach of first saying, what's the best in class experience that we could build. What are the things that are going to be the best for all of the customers and then looking and saying, "Hey, can we in our roadmap put in the flexibility to accommodate for these many things that customers have asked for?" Jeff: How could we build this in such a way that we can add that on or this on? I'm not sure that we always nail it just from the standpoint of... It's pretty tough to keep everybody happy. But we're taking the approach of, hey, we can make it substantially better for everybody. It may not be perfect, but it should be a dramatic enough improvement that they'll recognize that we have their best interest in mind. Stephanie: It seems like some of those requests might also fit other customers as well or it might be something where they're like, oh, I actually wanted that and never thought to ask. It could be helpful when it comes to product development on your side, like technology development. Jeff: Yeah, totally. We had a really good team that we used to build out stuff and we're able to iterate fairly quickly. That's the good news because sometimes we miss something and so... But as long as you can respond fairly quickly to a customer's need, it gives you an opportunity to serve them better and to communicate. But the other really important part of this is really getting the account managers and your sales people involved in this process so you get some really good feedback because one of the challenges that we face at least is that sometimes as the E-com department and on the technology side, you don't always get raw feedback. Jeff: Maybe the stuff you're hearing is from the people who are yelling the loudest, not necessarily from the people who are trying to help you. You're not necessarily hearing about the features that are going to make the biggest difference for most number of users. Stephanie: That makes sense. With this whole re-platforming and new tech stack that you're going to be launching what pieces of tech are you most excited about showing to the customer or bringing online that maybe wasn't there before? Jeff: For us it's really about an enhanced user experience. We kind of been a little bit on the old school side on the traditional B2B piece of it. This gives us the ability to provide a really much better experience end to end in terms of transacting with us. Some of the things that we're aiming for, that are harder than I was thinking they would be, would be real time freight quoting. When you're a B2B company and you've got a distribution network across the country, and you're trying to figure out how much that pallet is going to cost to go to this customer. You think, hey that should be super easy. That's like in the Ecommerce world, until you start to realize, well, it's really important that you get that right. You have to first know where all that's going to ship from. Jeff: One of the biggest things is a really deep integration with our ERP so we can understand where the inventory resides and then how much it weighs and the sizes and all those kinds of things so that we can do that on the fly. Because right now we do an add back type thing. We'll tell you what the freight is later. Customers don't like that. Especially not in the Ecommerce world. Getting that upfront, same with sales tax calculation. Right now, a lot of that's done on the backend and people want to know upfront. That means building a system that has management for resale certificates and all of those pieces. Jeff: I need to understand where are you exempted, where you not exempted and what are you exempt from and all of those kinds of things so that I can quote you and tell you what the sales tax is going to be upfront before you place your order. That's another piece of it that we're excited about. Requisition list is another one where people will have their own custom price list in the system where they can quickly order. We're building a system where they can upload an Excel file with all of their items that they want so they can do quick ordering and quick reordering. Jeff: I guess those would be a few of the systems. Like a quote management system to allow people to request pricing on items and then for us to respond to them live and track that inside of our system is another one that we're building. Those are all areas where we're saying, hey, this could really enhance the user's journey and make it a lot easier for them to do business with us. Stephanie: That's great. Yeah that sounds like some great changes. Have you had any customers trying out the platform as beta testers and have you seen any difference when it comes to average order value or anything? Jeff: We're not quite there yet. We finished design and we're in the midst of development at the moment. I would say that that's going to be one of those steps prior to launch. Will be first to have sort of sales associates and account managers jump into the platform and test it for themselves and then to really get especially key customers in the system testing, and then also giving us feedback. What do they love? What did they not like and how can we make it better for them? That's on the roadmap before launch to be able to say, "Hey is this better for you?" It's funny because on a traditional B2C Ecommerce launch, you'd be focusing so much on the front end. Jeff: Like, the My Account pages are taking just as much time for this site because that's where our customers are living. They want to use the search, but they really want to use the my account pages. They know what they want, and they need to be able to quickly reorder it. They need to be able to see their orders. They need to be able to have the ability to upload those requisition lists. It's a little bit of a twist but getting them, especially into those my account pages so that they can spend some serious time understanding their accounts and telling us what they like or what they don't like is going to be really important for the launch process. Stephanie: Yeah. That's really interesting about focusing on my account page and how much time they're spending there. I'm sure that things like product suggestions or also bots might be very important on that page to help showcase items that maybe they wouldn't otherwise buy when they're just quickly uploading something or just reordering. Are you guys experimenting with some of the suggestion features? Jeff: Most definitely. Yeah. That's part of the vision is to try to figure out and say, okay, we have these deep relationships with customers and they buy specific sets of products. How can we expand to purchasing a product set? How do we get them and introduce them to complimentary products and show them the right pricing and the right place so that they can say, "Hey, I should totally add that on." That's something that I should consider. It's an interesting challenge for us because we have different personas or groups of people that we're dealing with. Jeff: On one hand we're dealing with dealers and they're really reselling product. You're trying to show them maybe categories of product, where do they need to expand because they're buying for specific purposes. Then you have end users and those end users you might want to show them a different size or a different color. We're experimenting with what the best algorithm is that we can use to show them the right products and then also in the right places too. Stephanie: That's great. What tests are you most excited about that you're pitching to everyone right now and some people maybe aren't sure about? Jeff: I'm actually most excited right now about the lead gen side of our business. Stephanie: Tell me more about that. Jeff: When you start to think about what the power of Ecommerce is for a B2B organization. Ecommerce can really become the engine that powers the acquisition efforts of a company. Especially because we can get in front of hundreds of thousands of customers a month, whereas the traditional B2B sales force might only touch hundreds of customers per month. Maybe thousands, but definitely not hundreds of thousands. Jeff: The idea of... What does it take for us to build a really cool robust system to not only bring these leads in but then to try to figure out how do I score these leads and then not only take them and turn them into an immediate sale, but to determine which ones of these really can be turned into those more traditional B2B accounts that we have these deep relationships with that are going to buy from us for years to come, many tens of thousands of dollars, right? Jeff: The really exciting part to me is looking at it and saying, okay we are on the Ecommerce side, on the B2B2C Ecommerce piece of it. We almost have too many leads. We get so much traffic that comes in. So then how do you figure out, take all those leads and build a really robust system where you can make sure that they're getting exactly what they need, and you're closing as many sales as you can, but then how do you figure out a way to pass those accounts up, the right accounts to the right people so that you can build them into a much larger long term sustainable program. Jeff: For us, that means building a really cool inbound sales team that makes sure that we take care of those leads and that we foster them and do all the things that we need to do, but then building an outbound sales team as well that's going to go in and then say, "Hey, let's take these leads and take them to the next level." Then also figuring out a system for passing accounts up and down inside of the organization. You really want to be able to pass a lead up or a customer up that has substantial potential to be either a national account or what we'll call an enterprise level account. Jeff: But you also want the reciprocity of getting those accounts back or the smaller accounts back from the team. I will say that no one wants to give up that account. That's a big challenge inside of an organization when you're trying to say, "Hey, I'll give you some, you give me some." The way usually ends up being is someone... Everyone wants to receive, no one wants to give. But the system only really works if you can give the best to the... But then also that you can receive quality back. For instance, handing back to the E-com team, only the accounts that don't do any business, isn't really a win. Jeff: You really want your enterprise salespeople focused on enterprise level accounts. We're having to sort of wrestle through what does that look like in terms of structure. I don't know that we really have it all figured out yet, but it's a cool idea. Stephanie: I'm guessing there's a way to automate that and create rules. So it, like you said, can go up or down depending on certain criteria from when they're coming in. How are you all thinking about automating that process? So it's maybe less of a salespeople having to give and take and whatnot, and more like, Oh, this is automatically routed to you based on these metrics. Jeff: That's exactly what we're doing. We're exploring machine learning and big data to try to figure out a really good way of scoring customers because using that scoring, you can figure out how to pass customers up. Then a set of rules as well that says if these customers aren't of a certain size or if they have this kind of profile, they really belong in this group. But it's an interesting challenge from trying to figure out where do you get all this data from, and then how do you process it? We're exploring different options right now in terms of what that might look like and how we can best approach that without spending a ton of money before we bet that it actually works. Stephanie: Yeah. That's really cool. So outside of the prospect giving that information, what kind of things are you looking into right now to find the information to help with that scoring process? Jeff: It's actually challenging. You have certain pieces of information that are given to you which you have usually a name and an address. Their email address usually has a domain associated with it, especially in B2B. So you can pull a lot of information from that and you can start to sort your domain, your customers by domain. But really we're looking and saying, okay, well we do know the purchase history. The idea then is, okay, if you were to sort all your customers out, you can sort them on a scale of, let's say a one, two, three. You can say my best customers spend the most money with me. My worst customers spend the least amount of money with me, but that really misses part of the point. Jeff: You almost need to add a second access to this, which is really about customer potential. When it comes to customer potential, we're looking at the idea of what would it take for us to add some big data to this? To understand the size of their company and the profile of the company that they come from, or the industry that they come from as well, because the industry can be really important to us. But then the other side of it is also looking at what they purchased. Like for instance, people who purchase specific equipment or supplies, they're going to have a much higher lifetime value with us because those are proprietary or have maybe a really good pull through rate. Jeff: For instance, it may not be that it's a proprietary supply, but when you buy that machine, you have to go through a lot of supplies to make it worthwhile. You look at the data and you say, okay, that customer has a huge amount of potential. Not because of the amount that they bought from us, but because of what they bought or who they are, the company that they work for or their position. We're looking at the possibility of maybe even extending that into some of the databases out there that help you understand whether people are in market and what their roles are as well. Jeff: Because when you're dealing with B2B, you're not really selling all the time to the company, you're selling to a person inside of the company and that person has a role. You have to figure out, okay, well what role do they play in this picture? That helps us to sort them into personas. If you're dealing with a really small number of accounts, you can figure this out, but we have to automate it because it's not really feasible to do that in a one off basis. Stephanie: Yeah, definitely seems like you're going to need a whole entire data or business operations team who can build those rules out for you and have dashboards. That seems like a big project, but well worth it. Earlier, you mentioned that you guys have more traffic than you know what to do with and lots of leads coming in. Of course my first question is how are you getting this traffic? How are you acquiring potential customers? Jeff: Sure. I mean... We're in a niche industry, right? So that's part of it. We've been around for a really long time. Because of that, at least... Spiral has been around 80 years, My Binding for almost 20 on the web. As you start to look at that, we created a massive amount of content. Thousands of videos and pages. We really have in a lot of ways, the best websites in our sort of space and industry. Because of that, people are finding us to solve problems. What you find is that we built out these websites and either through SEO or through paid search we're driving a ton of traffic to the websites because they convert and that makes a ton of sense. Jeff: We're essentially... We have all of this content and it's really designed around this idea of how do we solve these problems for customers? We can drive more and more of that content. The website deals with a certain number of those sort of leads and converts on its own. The challenge for us tends to be, what do you do with the people that are maybe a little higher in the funnel? You're now talking about making sure they have a really awesome call center that is going to be able to answer those questions. Live chat is really big. We've extended our live chat hours all the way to midnight which is unheard of in the B2B space. Jeff: I want somebody there to talk to somebody if they have questions about products. Especially really big products. We're experimenting with the idea of doing triggers for live chat. We did that and that was really successful for us. We turned on the trigger and said, with the idea of if I walk into a store, somebody says, "Hey, how can I help you?" We did that on the Ecommerce site and we had massive numbers of people that were engaging with us. But the surprise to us was that many of those people were actually much higher in the funnel than we were used to dealing with. Jeff: In other words, they were now engaging with us and they weren't ready to buy. They were in the research space and they had lots of questions. Which is really cool but it just changes the model a little bit and you all of a sudden have to figure out how do I step up for that? How do I make sure that I have the right person to answer those questions? That's part of it. Driving the leads really comes to how do you acquire traffic on scale? Really good high quality traffic for the site. Then the question is, well, what can you do with it? Driving the traffic is really exciting from a standpoint of it doesn't have to be done in one way but you have to be maybe a little bit creative to do it because you really are trying to get in front of people that have problems rather than... Jeff: At least in our space, you don't come to a binding website unless you have a problem that the binding website can solve. It's not exactly an impulse purchase. You're going to show up and you're not going to just browse around. I wonder what kind of binding machines they carry. You probably are on a mission to solve some sort of problem. Right. Whether that's like your bosses told you that you need to buy a binding machine or you need to upgrade the way that your reports or presentations are going to look, or you have a deadline of Friday and you need to get these reports out for the annual meeting. Jeff: These are all sort of really common sort of scenarios and so then the question is, will this product work for my specific needs? That's a question that our customers are constantly asking. Building to that has been a really great sort of acquisition model for us to build around the idea that every customer that comes to us comes to us with a problem that we can solve for them, and then figuring out how do you work backwards to that? What problems could we solve? Then as you start to get creative with that and build massive amounts of content, that content lives out there forever. That's been really a big part of our success, is really the longevity but also the content generation sort of machine that we've built over the years. Stephanie: How has your content... What is the style now today? Is it only educational? Is it humorous and how has it evolved over time? Jeff: We've tried a lot of things over the years. We've tried to be funny. I think we think we're funny sometimes. We've tried a bunch of different things. We've tried to be really educational. It was really hard to figure out the ROI of that. What we've really... If you were to look at our content, we do a lot of content that is really close to the bottom of the funnel, but that would be really helpful. We go with that sort of helpful thing as well as deep. So the idea of building out a really robust and large set of content over the years about products. Jeff: We spend a lot of time making sure that we have all of the details about the product, even to the point where our competitors come to our sites to look up products because they don't have as good of information as we do. That's one piece of the content side of things for us. We have a lot of how to videos. We did a bunch of experimenting around the videos. We found that the videos that people really cared about would basically answer a couple of quick questions. But mostly it was, will this product work for me? How does this thing work? Jeff: We made a whole series of those videos, almost five thousand of them that are really around the idea of how does this product work and a quick demonstration essentially. Usually around a minute long that takes the product out of the box, show someone how to use it. Those really work well for us because they show a customer generally what are they looking for. A lot of customers they want to see what it looks like or they have a machine already and they want to say, "Is that's the thing that works with my machine.? They don't understand our language. Those videos have worked really well for us as well. Stephanie: That's great. Are there any surprising pieces of content that you didn't think would work that did, or surprising sources of customer acquisition that you wouldn't have looked into before? Jeff: We've had a few blog articles that have found traction in the world and the web that I wasn't really anticipating. We've written a lot of content over the years. Most of the blog articles get a little bit of traffic. They're like evergreen content, little bit of traffic over a long period of time. But occasionally we'll end up with one like... Something about how to laminate without a laminator. Stephanie: That's a good one. Jeff: Amazingly, there's a lot of people that look up that and I was shocked. It consistently drives more traffic than almost any other blog article for us. Which is odd. I'm not sure it drives a ton of business because they don't want to buy a laminator, but if you think about it, there's a whole segment of people that have maybe problems that we don't traditionally associate with our business. That would be one thing and then the other piece would be the language piece. Jeff: It's always surprising when I discover that the language that we use internally for our business doesn't match the language of the customer. An example would be we talk about binding covers all the time because we're in the world of binding. A lot of people they just talk about card stock. In the paper world, the card stock doesn't even exist. It's not a thing. People will talk about it. It's cover weight paper. Index weight paper. Card stock is like this sort of crafting term. Yet it's sort of taken on a vocabulary of its own in the world. Jeff: When people search for binding covers, often they'll use that word. That's always surprising to me as well. There's a whole list of those things where people basically they choose to use their own words to describe things. Now you're trying to figure out how do I technically be accurate about this product but really use their language? Because if you don't use their language, then you're not going to show up in search for this stuff and they're not going to feel comfortable with it. Stephanie: That's a really good reminder, especially with generational shifts that the new consumer might be using completely different language than what you're used to. How are you exploring what that language might be? I mean, especially a company that has been around since the thirties, how are they figuring out, oh, this is what they call it now, this is what the kids are saying these days? Jeff: Probably the easiest thing for us is to look through our search results and especially the no results found once because often it's those things. When people are typing in stuff in the search bar and nothing's popping up. You look at that and you're like oh... A smart merchandiser, someone who understands your products really well, they start to make those connections and they're like, oh, wait a second. That's what they mean. Obviously a lot of that like spelling mistakes and things like that. You can fix those in your search engine but when you start to look at it, you start to see sometimes patterns. That's one of the easiest ones. Jeff: The other two that are really helpful for us would be Google autosuggest. Just start typing things in Google and then figure out what Google thinks that you should add to the end of it. All of a sudden you realize, okay, maybe people are searching for maybe a slightly different side of things than we thought they were. Then the other one would be Amazon. Amazon, their product terms are awful. Yet they sell so much. Why? Because they tie into language. They have usually products that have all these different words in the titles that you would never imagine. Jeff: As you start to look at products that are really successful on the marketplaces, you can start to realize, okay, well maybe they're onto something there. They've managed to call out even the most important attributes of that product in a very search centric sort of model or they have really been able to hone in on maybe key words that we weren't thinking of when we've been building this out. Especially because often you start with whatever... A point of reference would be the manufacturer's title. It becomes quite difficult sometimes to sort of detach from that, but Amazon detaches automatically because they let people come up with their own titles for stuff. Jeff: Usually it's the sort of ecosystem that will change the title to try to optimize. Sometimes when you find really successful products that you're realizing, Oh, maybe people do care about that. Stephanie: I love that. That's really good tips to remember about, finding those keywords and how to discover them because yeah, I think even longterm key words would probably be really good for your industry. I'm thinking, how would I Google something like that? I would probably be like how to create a hard cover book for my presentation or something really long winded like that. It's a really good reminder about the keywords importance. Jeff: Then obviously you have your paid search stuff too. You can look and see in your paid search accounts, you can say, okay, what keywords are actually driving? If it was a broad or a modified broad match keyword, you're going to start to dig in and you can say, oh, it actually matched on this keyword and it drove a sale. Again, driving back and saying, okay, what am I driving sales on? It tends to be a really good place to start discovery as well. The only thing, the problem with that is that you might be so far off that you're missing the boat completely. That's where it takes a really good merchandisers to sort of nail that stuff down. Stephanie: I also think it was interesting earlier when you were talking about how to laminate without a laminator and thinking about selling something through saying, oh yeah, you don't need to buy through us. Here's how you do it because I'm sure a lot of people, like you said, are searching for stuff like that or how to fax without a fax machine. I know I've searched that quite a bit, but making fun of it and you might actually be able to convert someone who's like, Oh, I actually just do need a laminator to do this, but having a humorous video around that. Jeff: Yeah. As well as maybe they decide that they want to buy some cold laminating pouches. The idea is, if you can be really helpful in the long term, going back to that idea of video. We've done a lot of videos over the years. We understand that many, many, many times people use our videos post-purchase not pre-purchase. People are going to the video to figure out how does this thing that I already bought work. Well, that doesn't really help us but it does help us in the long term. Jeff: As you look at it and say, it's not going to win us the sale today, but it will win us brand awareness. It does potentially when you do supply sales. Because we're a very supply driven sort of space. If you think about it, if you buy a binding machine, you got to buy some supplies for it. Longterm, we want to have an awareness and be in front of customers so they understand who we are when it comes time to buy the supplies that they need. Stephanie: Just like you said, it's really important to continue to stay in front of that customer so they come to you to buy supplies and remember you guys. How do you go about doing that and keeping a customer retained? Because it seems like it would be easier with these legacy customers who are maybe in these year or three year long contracts. Now when you're moving towards Ecommerce and they can hop around really quickly, it seems like you wouldn't be able to retain customers as easily. So how do you go about staying in front of them? Jeff: I mean, there's a lot to that, the question. To give you maybe a general overview of our thoughts is a big part of our business and something that's really important to us. Especially on the E-com side of things, it really starts with delivering a really awesome experience upfront. So you need to be able to help them find what they need and then deliver it to them in a really reasonable timeframe or meet their deadline. All that kind of stuff. To have the product in stock and all of those kinds of pieces. That's actually harder said than done when you deal with a really large niche category. Jeff: That's the beginning piece of it. Once you've given them that positive experience, or if they've had a negative experience, you use your customer service to basically earn a customer for life. That's actually the motto of our customer service group. Earn a customer for life. As you look at this idea, you say, okay, well, we now have a shot at their business longterm. Now the challenge for us is, okay, what's the best way to reach them? The easiest way is email. We have a ton of automation in our emails. We send emails based upon what you've purchased with replenishment. We send life cycle campaigns based upon... Welcome to the store anniversaries campaigns, and then also best customer campaigns, win back campaigns and reactivation campaigns. Jeff: We have all these automations that go out. They're really helpful. We also have sales that go out on a weekly basis that keep people engaged and keep things front of mind for them. You combine all of that on the email side, but then you recognize that that maybe only gets you half the customers. The question becomes... Because there's a bunch that are opted out in the B2B space, it's really hard on deliverability to get into the inbox. More and more people are using advanced filtering programs to prevent spam from getting through to their employees. Jeff: As you look at that, you say, okay, well, email only takes you so far. So then what do you do? The real question is, back to that conversation we had earlier about lead scoring, how do you determine your best customers or your best potential customers and make sure that you get somebody to call them? To send them a personal email which are easier to get into their inbox or to find another way of touching them. For us right now, the two other ways of touching them that we're sort of exploring, one would be SMS and then another would be direct mail. We're kind of in the process of exploring a test on SMS. Jeff: I'm not too sure how we feel about it, honestly. We have to figure out how our customers feel about it, just from the standpoint of as you look at customers giving their personal cell phones for business purchases and getting text messages. But you think about it, that's a great way to get in front of people and stay in front of them as long as you're going to be super, highly relevant. Then the other piece of it that we do a little bit of would be on that retargeting side of things. If you don't know who that customer is exactly, or don't have their ability to email them, you can at least sort of [inaudible] do it, make sure you're sending or placing ads more frequently into their feeds on different platforms through retargeting. Stephanie: That makes sense. It seems from, especially in SMS perspective, it seems like the only angle you can go about is being helpful. Like oh, you probably are running out of supplies, order now. I don't know, you can get a discount or something. It seems like there's not too many ways for B2B companies to use texting without the customer being like, "Oh, I don't want to be thinking about work right now." Unless it's a trigger for them to be like, "Oh, I need to reorder this or else we're not going to have it on the day." Is that true or are you seeing other avenues? Jeff: Well, the first step would be to be helpful with order cycle. For instance, think about what Amazon has done with allowing you to get a text when the item is delivered. Which is a big problem for a bunch of our customers, especially in pandemic, but even outside of that. It might be delivered to a central desk or to the shipping and receiving area of their company like an alert. Alerts are a pretty good option for us to sort of get our toe in the water a little bit and to stay active. Then yes, something that's personalized. Jeff: Then also, what we're struggling with is what is the best time of day to do this? Probably don't want to send it to them in the middle of their evening. They're disconnected from work, but you also need to make sure that... It's got to be time adjusted for the time that they're in and they also really needs to be followed in their workday probably. Those are some of the things that we're sort of figuring out and testing right now and saying how is this going? Then what's also the most appropriate way to collect where people don't sort of get freaked out. Because it's one of those things, do you want to get text messages from your binding company? I don't know. You got to ask it in an appropriate way. Stephanie: Yeah. That's a really good reminder. All right. We have a couple minutes left and I want to jump into a quick lightning round brought to you by Salesforce Commerce Cloud. This is where I'm going to ask you a question and you have a minute or less to answer. Jeff, are you ready? Jeff: Okay. I'm ready. Stephanie: I'm going to start with the hard one first for you because I feel like you're in a game right now. I got to keep it going. What one thing will have the biggest impact on Ecommerce in the next year? Jeff: Well, I think obviously it's COVID. It's pushing people online in completely new ways. It's shifting customer expectations around a whole bunch of different things. It's ruined the Amazon two day expectation, which I don't mind, but it's also shifted the way that people shop, where they're shopping, how they're shopping, and even their mentality. I don't know that we even really totally understand how it's affected everybody yet because everybody's still sort of in this scrambling mode. But ultimately I think as this shakes out, it's going to change the landscape of how we market, but it's also going to change the landscape of how our customers interact with us. Stephanie: I like that. What one piece of advice would you give a new Ecommerce entrepreneur? Jeff: I would probably say stick with solving the customer's problems. I know that tends to be a B2B thing, but it's not really a B2B thing. If you think about it, I need the right sweater for me. Really be customer centric. That becomes really cliche and that's why I go to the idea of solving a problem. You got to think about what sort of value proposition are you offering to this customer that's unique, that is going to allow them to accomplish something that they wanted to accomplish when they came to your site. Jeff: I think by focusing and being really focused on the customer problem, I think you can build out really awesome experiences, and then that deep understanding of your customer will take you really far. Stephanie: That's a good one. What is your favorite day in the office? I'm trying to imagine what a binding company feels like. What's your favorite day in the office feel like? Jeff: I mean, most of my days are pretty full of meetings. A day without meetings would be an awesome day in the office. Stephanie: That's a lot of people. Jeff: I think so. In the world of the binding company, a day in the office doesn't look all that much different than a day in a normal office. It might be a little bit like an episode of the office. Stephanie: That's what I had in my mind honestly. Jeff: Yeah. It's like paper company. There is a little bit of aspects of that, but I mean, we're just like any other company. We're a retailer, we're a distributor. We deal with customers all day long. I would say the other thing, the best day in the office is the day that you have customers that love you and that are just heaping praises, especially on the customer service people and your salespeople. When you have customers who are just singing your praises, those are great days. Stephanie: Yep. That's awesome. I'm glad you mentioned the office and I didn't have to. If you were to have a podcast, what would it be about and who would your first guest be? Jeff: That's a tough one. If I were to have a podcast. I am super passionate about entrepreneurship. I'd probably do an entrepreneurship sort of a podcast about starting a business, growing a business, and the creativity that goes around that. If I could get anybody on the show, I would probably pick an entrepreneur. Maybe I pick the person from lemonade stand or one of those organizations that's really making a big impact on starting up entrepreneurs with kids. That's something that I really love. Stephanie: Yep. I like that. Brings back the memories of my parents make me [inaudible] my neighbor's yard for 25 cents which is well below market. Jeff: I think you could make at least 50 cents for that now. Stephanie: I think so too. All right Jeff, this was very interesting, such a good conversation. So many good tid bits that people can actually use from this interview. Where can people find out more about you and Spiral? Jeff: Sure. You can definitely visit one of our websites. We've got SpiralBinding.com. We have MyBinding.com and Binding101.com. You can find me on LinkedIn as well. Shoot me a message and ask me to connect and I'd love to meet you. Stephanie: Awesome. Thanks so much for joining Jeff. Jeff: You're welcome. Thank you.

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The Marketing Agency Leadership Podcast
Changing Behaviors to Improve Public Health

The Marketing Agency Leadership Podcast

Play Episode Listen Later May 28, 2020 29:46


Jeff Jordan is President and Executive Creative Director of Rescue: The Behavior Change Agency. Rescue offers a broad range of marketing services for government agencies (public health departments, state and federal agencies) and non-profits seeking to promote positive changes in public health related behaviors.  Jeff started his agency when, as a high school student, he volunteered for his local health department's youth-targeted anti-tobacco program. He transitioned from volunteer to contractor, tweaked the anti-tobacco program to approach teens in an innovative way, and grew the agency through “a lot of referrals.” He opened his first office while he was in college and continued his focus on behavioral change for social good.  In this interview, Jeff tells us that marketing tactics that are used to sell products don't necessarily work in changing “fundamental behavior.” His team has to be expert, not just in marketing, but also in behavior change theory, psychology, and sociology . . . and know how to appeal to different subsets within targeted cohort groups. Jeff says that it can take years for a consistent message to bring measurable change, and although there is nothing equivalent to “sales data” to gauge message impact in “real time,” he has found there are some measurable interim “markers” on the path to behavior change. Tracking and measuring specific behavior-related attitudes or beliefs or pieces of knowledge over time can predict subsequent behavior changes. About 7 years ago, Rescue won a $150 million FDA youth tobacco prevention contract. These funds allowed the agency to increase in size from 50 to 150 employees in 3 years. Today, Rescue's 175 employees work out of 6 offices around the country. They serve government agencies and nonprofits in 30 states. Rescue creates programs for these organizations, but also has a library of campaigns that can be licensed. Over the years, Jeff has learned to say “no” to opportunities that are not right for his agency. Budgets that are too small can limit a campaign's success . . . . and blame for poor results will invariably fall on the agency . . . not on the tight budget. The smaller a client is, the more they tend to demand. Jeff has observed that agencies end up over-servicing smaller accounts to keep them, tie up senior personnel in servicing these smaller clients, and underservice their larger accounts. Jeff warns that really small accounts can hold an agency down. Jeff applauds the move away from condemning people who choose unhealthy behaviors and the increasingly broad awareness of underlying lifestyle situations that contribute to these behaviors. Jeff's agency attracts employees who want to do something good in their careers. He describes the agency as “responsibly rebellious,” and explains that is manifested in the way the agency encourages clients to take risks in a responsible way. Jeff can be reached on his company's website at: Rescueagency.com. The agency runs what Jeff describes as a “pretty robust YouTube Channel” at: youtube.com/rescueagency. Transcript Follows: ROB: Welcome to the Marketing Agency Leadership Podcast. I'm your host, Rob Kischuk, and I'm joined today by Jeff Jordan. He's the President and Executive Creative Director at Rescue: The Behavior Change Agency. Welcome to the podcast, Jeff. JEFF: Thanks so much, Rob. ROB: It's excellent to have you here. Why don't you kick us off by telling us – it's right there in the title, a little bit – Rescue: The Behavior Change Agency. But tell us a little bit about Rescue and where you excel. JEFF: We are a public health behavior change-focused agency. What that means is that we exclusively work for campaigns that strive to change health behaviors for social good. Almost all of our clients are public health departments, state and federal agencies. When we say behavior change, we refer to actually changing a fundamental behavior that a person is performing. So rather than changing what we would describe as a brand preference of someone who drives one car, changing them to drive a different brand of car, we're looking to change that fundamental behavior of actually driving the car and converting them to ride a bicycle instead. Or in other health arenas, things like quitting smoking or eating healthier, etc. ROB: Perfect. Is that something you've actually engaged in? Encouraging people to ride a bike instead of driving a car? JEFF: Not that one. [laughs] But it's an example people tend to understand. ROB: What are some examples, digging a little deeper, of campaigns? You mentioned smoking cessation. There's probably some other interesting things you've worked on. What are some examples? JEFF: We work from simple behaviors like quitting smoking or not using drugs or not vaping and things like that to more complex behaviors like healthy eating, where we're actually promoting specific types of foods, specific changes to what they eat, as well as mental health behaviors that are even more complicated – trying to get people to reduce stigma and recognize when to seek help, when to do something about the feelings they're having, and whatnot. ROB: Very interesting. You mentioned brand preference; in some cases, I think people think of brand preference as being kind of pliable. Maybe it is just as difficult to change as some health behaviors. How do you think about, or how do your clients even think about, measuring these behaviors over the long term? I imagine the feedback loop on one of your campaigns might be rather long in some cases, given the research required to gather those results. Or maybe there's something unexpected I'm not thinking of. JEFF: You're absolutely right. Behavior change, we usually say you need a couple years at least of consistent campaigning to really see a measurable change. Unfortunately, we don't have sales data to look at to see what's happening in real time, so we rely on self-reported surveys and things like that that either our clients perform or that we help them perform to see what people are saying about the behavior. You do have some interim steps that you can measure on the path to behavior change. Whatever your underlying theory is of what you think is changing in order to change the behavior, such as specific attitudes or beliefs or pieces of knowledge about a behavior, you can measure those, and then those can be pretty predictive of a behavior change later down the line. ROB: One benefit it seems like you might have in your industry – is the behavior change industry perhaps a little bit more open about what works and what doesn't than maybe some particular vertical market, like marketing soda or something? JEFF: I think it's a double-edged sword there. It's more open in the sense that you can survive on theory for a longer period of time. In the commercial world, you can have a great theory, but if it doesn't turn around sales in a quarter, you're kind of out of luck there. In public health, you can survive on theory for a few years. So that does allow you to explore more options. But that also allows bad work to remain for a long time. We see that there's a lot of mistakes and common pitfalls that clients fall into, usually when they work with traditional agencies, that just happen over and over again because it works to sell a product, but it doesn't work to change a fundamental behavior. ROB: What about openness in terms of tactics? In some cases you have organizations like the UK's famous – I may be misattributing it, but their Nudge Unit there. You have probably published research in some cases around behavioral change. How much of your work is synthesizing and adapting those things to a community and to availability of resources versus cooking up something completely out-of-the-box and new? JEFF: There's a lot of theory and approaches already within public health behavior change. I think the UK is interesting in that they tend to have movements that occur there within behavior change. 10-15 years ago, they were really social marketing, and then it switched to Nudge, and they seem to all move a little bit more cohesively, maybe because it's a smaller country. Here in the U.S., we don't see as much cohesiveness in the approaches. The latest and greatest CDC strategy or FDA strategy, those do have a big influence on the work, but a lot of states are making decisions for themselves and applying the theories and approaches that they're comfortable with – everything from states that might still be using hardcore scare tactics like the '90s in their drug prevention work, all the way to other states that are more open-minded in realizing things like adverse childhood experiences influence how people make decisions about risk behaviors later in life. That's something that the state of California is really looking at. You have a really wide range of approaches and comfort level with those approaches. One of the things that we have to do that is kind of unique to our industry is we often have to share some of that education and some of those case studies from other states with potential clients so that they can understand, these are your options. You don't have to just do the scare tactics. That's not the only thing out there, and actually it often doesn't really work. So, we have to be the experts not just in marketing itself, but in behavior change theory, psychology, sociology, all these things that go into it. ROB: It sounds like there's a difference of tactics, a difference of outcomes. Are you seeking cessation? Are you seeking some sort of treatment? Are you just seeking a reduction of use in something that is now legal in certain places? It sounds like you are able to pool that expertise and help – in the ways that many agencies are, but you don't think about it so much in public health – bring those best practices and learnings from other clients. That makes me want to pull back and dig in. You're in a very unique area of focus. I think we've done probably 120 or so episodes right now, and we have not been in a conversation with an agency owner who is in public health and behavioral change. You mentioned you've been in the agency, at least, for 20 years. Did you start off with that area of focus? How did Rescue come to be? JEFF: We are definitely a unique agency. I actually started the agency when I was in high school. I was a volunteer for my local health department's anti-tobacco program. That was a youth program. They worked with a local agency, and after volunteering for about a year, I noticed that the kids we were reaching, the teenagers we were appealing to, were not current smokers, and they were never going to be smokers, whether we existed or not. These were good kids. They were leaders. They wanted to put this on their college application. There was really no change I could see that we were causing, even though we were successful from the sense that there was a lot of youth involvement and we were doing a lot of things. Fortunately, we had an advisor at the health department that was also pretty savvy in terms of youth culture. I like to joke that she was a break dancer when she was in high school, and she was maybe 7 years older than me. So, she was still pretty connected with what high risk youth culture might look like versus low risk youth culture. I said, “Why are we spending all our money on these youth?” She was open to allowing me to move from being a volunteer to being a contractor to start to provide some of these services that would change who the program appealed to. That continued for the next year or so in high school, and very quickly we started to innovate in a way that just wasn't happening in public health, particularly with teens. That turned into a lot of referrals. While I was in college, we grew a lot through referrals and got our first office when I was in college and things like that. So, we really grew organically, and from Day 1 have been exclusively focused on public health. ROB: What does the team look like today? What are some of the scale points and key hires to where the team of the agency is now? JEFF: Today we have about 175 employees, six offices around the country. We are the largest marketing agency in San Diego, but most San Diego businesses can't hire us. [laughs] Our work, though, is spread around the country. We don't have a specific geographic footprint. There's not one place where our clients are clustered. We work with about 30 different states and with the federal government, with the FDA, as well as Veterans Affairs and others. Some of the big scale points that have occurred – there's been a few. The biggest one was about 7 years ago, when we were about 40 or 50 people at the time and we won a contract with the FDA to do youth tobacco prevention. That contract was a $150 million contract for an agency of 50 people. We very quickly grew thanks to that contract. We brought on our CEO, Kristin Carroll (who's still with us today), at that time, who helped us grow quickly. Within a matter of 3 years, we went from about 50 people to 150 people. But in that time, we've continued to grow with other clients as well. Some other notable wins are the California Department of Health's nutrition campaign as well as some other states that have brought on larger contracts. ROB: You mentioned that many San Diego businesses probably can't work with you. Does that reflect a change in the overall deal size that you've pursued? JEFF: No, no, that's just mainly because we don't do commercial marketing. You have to be a public health oriented campaign. We work with the local county health department, we work with the local school district, and we also work with the district attorney's office. So, we work with a lot of local government agencies, but we don't have any commercial customers here or anywhere else. ROB: I see. Once many agencies scale, and especially north of 100 people, I think a lot of times they become very focused on just the FDA size deals. How do you manage that different granularity of client size within one organization and not become really fixated on hitting those homeruns? JEFF: That has definitely been a problem of scaling up. There aren't that many FDA size deals in our space, so we're forced to continue our more modest deal size – which we're very happy with. But I think the biggest challenge that has occurred is being careful not to try and apply universal lessons to the entire agency. Some things that we do for our largest client don't necessarily apply to our smallest clients. We've gotten in trouble sometimes in starting to do things for our smaller clients the way we do it for our larger clients and then going over budget and overcomplicating things when they don't need to be. And vice versa, also making sure we don't get too simple with our biggest accounts. We have to operate in this limited budget standpoint for some of our accounts and then a more open budget to explore different things with our largest accounts. That's probably the biggest thing we have to remind ourselves of and be cautious with. Really, we're operating like two different agencies within one. ROB: We are chatting here right in the middle of the spring 2020 COVID-19 epidemic. How has that changed your mix of business? Do you have clients that are working within – do you have some stay home campaigns running and that sort of thing as well? I imagine any work you've done, you've had to learn very quickly. JEFF: Surprisingly, we haven't gotten into any stay at home work, mainly because we tend to focus on long-term campaigns so that we can measure these long-term changes. It does affect COVID because a lot of the reasons that people are passing away because of COVID is because of preexisting conditions that we're trying to prevent with some of our other behaviors. So in a way, they're all connected. But when there's an emergency like this, communications get out pretty quickly and go viral pretty quickly. You don't really need the traditional long-term campaign to figure it out. The one thing that has changed the most for us is the production of new creative and new messages. Right now we're focused almost exclusively on creating animated work and infographics and things like that. Our clients still want to produce the work, still want to put new messages out there. Right now, people are consuming media more than ever before, so we're still cranking away new stuff. ROB: That's excellent. Jeff, you've been at this for a little bit; you've built the largest agency in San Diego, which is quite a thing. What are some things that you've learned along this journey that you might do a little bit differently if you were starting Rescue all over again? JEFF: There's so many lessons you learn, but you almost need to learn them in order to grow from them. I think that one of the things that we learned was not to be afraid to say no to an opportunity if that's not the right opportunity. I have to teach this lesson to every new business development person we bring on or client service person we bring on. It might feel weird to say no to a small client, but keep in mind that if they don't have enough funds for us to do a good job, they won't blame the budget; they will blame us for not doing a good job. And without fail, the smaller the client, the more they ask for. Oftentimes I've seen a lot of agencies get stuck in this world where they are over-servicing smaller accounts to keep them and underservicing their larger accounts, and it's usually top-heavy. It's usually more senior people that are servicing these smaller accounts, who are now not able to go out there and pursue bigger work. So, you really have to be careful of the really small accounts holding you down. ROB: How do you think about positioning and communicating the scope with the small accounts so that their expectations are aligned? Or have you found it's hard to manage them and you just have to pick the right ones and let someone else have the ones that are going to ask for the full buffet for 5 bucks? JEFF: We definitely let someone else have those. [laughs] It's about being transparent upfront and saying, “Look, this is what it takes to do good work, and this is why. These are all the components that need to go into something.” We have found ways of being able to accept smaller accounts with different strategies. For example, something that's completely unique to our space is we actually license campaigns. We have about four different preexisting campaigns that governments can license from us and that are reused over and over again across the country. That has allowed us to open the door to some smaller – not the smallest, but some of the smaller accounts that don't have the funds to create new campaigns, but do have enough funds to implement a licensed campaigns. That's something that could never happen in the commercial world; no one would ever want to share anything. But in our space, the government loves to share, and they actually love the reduced risk that comes with knowing this has already run somewhere else. ROB: Right. I can see you coming with some results, and they can see what the campaign looks like out in the world. They can probably even go and visit and see in some other place how this campaign looks in the wild, which you can't do, to your point, for most businesses. Maybe you could get away with it in – I don't know, if you were just serving one lawyer per market, or one plumber, or something crazy like that. But even then, they probably wouldn't want to share. JEFF: Right, exactly. There's so many things that we do here because we are focused on this space that would just not be possible if we were a generalist agency. And that's part of our argument for potential new clients: look, you can hire your local ad agency that everyone has heard of that has done all the car dealerships and local banks and things like that, or you can hire a specialist in public health. What's going to happen if you hire a specialist in public health is you're going to get all this institutional knowledge about how public health marketing is different from commercial marketing and be able to be more effective, more efficient, and have all this research and tools at your disposal. ROB: Jeff, at 175 people, you're up above that 150-person Dunbar number that many people talk about as that maximum number of people you can be in relationship with, or people might phrase it differently. How have you thought about structuring, organizing, and persisting culture as you break through dozens and then triple digits and then over 150? JEFF: We had a pretty strong culture before I knew that company culture was a thing. It comes from the culture being embedded in the work. A lot of times, folks try to put this layer of culture on their organization that doesn't really have anything to do with anything. That's where culture tends to fail or feel shallow. Where culture is really strong and real is where it manifests through the work. For example, one piece of our culture is that we describe ourselves as “responsibly rebellious.” What that means is that we want to push our clients to take risks within a responsible way. That is manifest through a lot of decisions that we make for our clients, things that we present to our clients, ways that we approach how we work with our clients. Then, when we say that's a part of our culture, it's true. It is a part of our work. It's part of what we do. When we talk about being science-based, we have a giant in-house research team that does presentations for us that is then infused in the creative and in the strategy. So, I think the best way to maintain culture is to just have an identity that is real and that you truly apply every single time you do the work. ROB: It almost seems like some of the culture would be self-selecting. Not to say that people might not view Rescue as a very attractive place to work, but it seems like an odd company to sign up for unless you have a real interest in messages of public health and in helping people and helping communities. Do you find that in the interview process? JEFF: Yeah. This millennial generation that's now dominating our workforce, we are the ideal kind of company to work for. They want to cause social change. They want to have an impact, and we can allow them to have that impact. So, definitely the people that come in are people who have an interest in doing something good with their career. And that helps. Everybody in the agency wants to have a good outcome from that campaign on a deeper level than just simply delivering for a client. ROB: That makes sense. Jeff, what's coming up for Rescue that you are excited about? Or maybe it's even something in terms of either broad messages that you're seeing trends in, or even tactically? JEFF: One thing that's pretty exciting is that we're seeing a broad awakening of the underlying lifestyle situations that lead people to choose unhealthy behaviors. The best example of this is what's happening in California with the new – California has a Surgeon General for the first time, and she is focused on infusing adverse childhood experience understanding, which is this area of health research that talks about if you had these really, really big things happen to you when you were a kid – things like divorce or a parent dying or domestic violence or mental health in the family, these heavy things – those things set you on a trajectory to take on much higher risks later in life. And if you can embed an understanding of who people are and where they come from in your work, you can be more effective with these populations. So, an understanding of that, an understanding of mental health, an understanding that people don't do risky things in isolation. They do them from a complicated equation of everything that's happened in their life. That was just not existent for the past 20 years, particularly in things like drug and alcohol prevention, where it's like “people who use drugs are just making a bad choice, they're just stupid, they're just bad and they need to be told to stop doing bad things.” [laughs] That's just not how it works. It's really nice that a lot of public health is moving away from that perspective and instead moving towards a deeper understanding of the complexity of human identity. ROB: Absolutely. It brings to mind for me – you have a responsibility; the messages you're putting out there are not messages for any particular – you probably work with governments of every political party possible. JEFF: That's right. ROB: But we live in a world where – what you're saying even hearkens back to partisan politics. How do you think about putting messages out into the world that have to transcend politics and party? JEFF: I think we all suffer, across industries, across topics, from talking to ourselves and not understanding someone who's different. One of the things I like to say that I feel makes this so different is applied empathy. It's not just that we have more empathy than someone else, but that we actually apply that empathy to how we create our messages and can articulate, when we're going to create a campaign for rural men, why that campaign has to be so different from a campaign, for example, for African American women. What is different about their life experience, their attitudes, their worldview, their values that will change the way we communicate to them – but also change what we're saying. A great example of this is that we do a ton of tobacco prevention work, still, with teenagers, and you can talk to an alternative teen in an urban area who listens to rock and things like that – you can talk to them about the evilness of the tobacco industry and all the horrible things they've done, and they will get fired up. They'll say, “I don't want to support an industry that's destroying the world and manipulating people.” So, you can motivate them not to smoke just by talking about the tobacco industry to them. But then you take a rural teen, a country teen who maybe is a younger version of the right side of our political spectrum, and you talk to them about the tobacco industry and it just doesn't even faze them. They're like, “Well, that's their right as a company and you have the right to choose what you're going to do, whether you do that behavior or not. It's all about personal responsibility.” If you don't know that difference and if you don't know that they are processing information differently and caring about different things, then you're just speaking to yourself. You're just speaking about what you care about. And that can apply to so, so many different things. Within politics, its' so interesting to see people just yell within their bubbles about things that they care about and are baffled by why no one else cares about them or why the other side doesn't care. All you have to do is just spend a little bit of time on the other side and you'll understand why they don't care about what you're talking about. ROB: It's a great thought for all of us on meeting people where they are instead of where we think they are. Jeff, when the audience wants to get in touch with you and with Rescue, where should they look for you? Where should they find you? JEFF: Yeah, definitely. Rescueagency.com is our website. There's contact information there for different folks. But also, if you're just interested in what I was talking about and learning more about public health marketing and behavior change and things like that, we have a pretty robust YouTube channel, youtube.com/rescueagency. Lots of actual workshops and videos that we've done explaining our approach and research and some examples of the work. ROB: Perfect. Jeff, thank you for joining us. Thank you for the thoughtful work that you do. We're grateful for it, and look forward to a lot more of it in the future. Congrats on all the success. JEFF: Thank you. Thanks for having me on. ROB: Thank you for listening. The Marketing Agency Leadership Podcast is presented by Converge. Converge helps digital marketing agencies and brands automate their reporting so they can be more profitable, accurate, and responsive. To learn more about how Converge can automate your marketing reporting, email info@convergehq.com, or visit us on the web at convergehq.com.

Echoes of Faith
Ep. 11: The Exchange (with Jeff Musgrave)

Echoes of Faith

Play Episode Listen Later Dec 8, 2019


What is it that motivates us as believers to overcome our discouragement, and actually share the gospel with those we encounter on our way? In a continued discussion from our last episode with Pastor, teacher, and founder of “The Exchange Ministry” Jeff Musgrave says that he believes we should be motivated by heavenly rewards and having an approach that works. [Jeff] “As a pastor, if you wanted to have a great alter call, just preach on family devotions or evangelism, because everyone feels guilty. We try hard never to motivate people out of guilt. … we want to motivate them out of, “I think this is going to work”. [Caleb] “You talked about rewards … it’s almost like we don’t want to be motivated just by rewards, but … who invented the rewards?” [Jeff] “There are two things that we have to believe about Him to please Him. (Hebrews 11:6 ) Constant awareness that He’s with me. He’s a rewarder of those that diligently seek him.” The Exchange tools that Jeff sees as a gift from God, greatly simplify the process of sharing the gospel, giving confidence to us as believers that we can do this! But more than that, God Himself rewards us to do his will. Scripture teaches us that God rewards us for doing good works, denying ourselves, showing compassion to the needy, and treating our enemies kindly. As we’ll learn today these rewards from God include rewards for faithfully sharing the gospel with those we meet. Welcome to Echoes of Faith, a podcast about God working in our lives today and how His Word impacts our future. In this episode our host Caleb Phelps continues his discussion with Jeff Musgrave. He and his wife Anna founded “The Exchange” in 2010 and have presented their training in over 200 churches, to thousands of people. They recently delivered this training at Faith Baptist Palm Bay in September of 2019. Jeff and Caleb sat down to talk about the approach and how you the Podcast listener can be more motivated by God’s Word to put these principles into practice. And now, here’s pastor Caleb. https://exchangemessage.org/

Faith Baptist Messages
Podcast Episode 11: The Exchange (with Jeff Musgrave)

Faith Baptist Messages

Play Episode Listen Later Dec 8, 2019


What is it that motivates us as believers to overcome our discouragement, and actually share the gospel with those we encounter on our way? In a continued discussion from our last episode with Pastor, teacher, and founder of “The Exchange Ministry” Jeff Musgrave says that he believes we should be motivated by heavenly rewards and having an approach that works. [Jeff] “As a pastor, if you wanted to have a great alter call, just preach on family devotions or evangelism, because everyone feels guilty. We try hard never to motivate people out of guilt. … we want to motivate them out of, “I think this is going to work”. [Caleb] “You talked about rewards … it’s almost like we don’t want to be motivated just by rewards, but … who invented the rewards?” [Jeff] “There are two things that we have to believe about Him to please Him. (Hebrews 11:6 ) Constant awareness that He’s with me. He’s a rewarder of those that diligently seek him.” The Exchange tools that Jeff sees as a gift from God, greatly simplify the process of sharing the gospel, giving confidence to us as believers that we can do this! But more than that, God Himself rewards us to do his will. Scripture teaches us that God rewards us for doing good works, denying ourselves, showing compassion to the needy, and treating our enemies kindly. As we’ll learn today these rewards from God include rewards for faithfully sharing the gospel with those we meet. Welcome to Echoes of Faith, a podcast about God working in our lives today and how His Word impacts our future. In this episode our host Caleb Phelps continues his discussion with Jeff Musgrave. He and his wife Anna founded “The Exchange” in 2010 and have presented their training in over 200 churches, to thousands of people. They recently delivered this training at Faith Baptist Palm Bay in September of 2019. Jeff and Caleb sat down to talk about the approach and how you the Podcast listener can be more motivated by God’s Word to put these principles into practice. And now, here’s pastor Caleb. https://exchangemessage.org/

EMplify by EB Medicine
Episode 32 - Assisting With Air Travel Medical Emergencies: Responsibilities and Pitfalls (Ethics CME)

EMplify by EB Medicine

Play Episode Listen Later Dec 4, 2019


Show Notes Jeff: Welcome back to EMplify, the podcast corollary to EB Medicine’s Emergency Medicine Practice. I’m Jeff Nusbaum and I’m back with Nachi Gupta. Nachi: For our regular listeners, you probably noticed a lapse in recent episodes as we pulled away from our usual monthly releases. Jeff: With both of us having increasing demands on our time -- myself with business school and the busiest 21 month old in the world and Nachi with yet another entrepreneurial endeavor on the horizon -- we decided that it would be best to pass the podcast on to another host, so EMplify can continue to create and deliver the high quality materials that you deserve. Nachi: We have obviously really enjoyed creating this podcast and working closely with EB Medicine to produce it. We are deeply appreciative of you, our listeners, and your wonderful feedback and comments over the years. Without you, there would be no point in us working so hard on this. Jeff: And keep the feedback coming as we hand the reins to Dr. Sam Ashoo as the new host of EMplify. Dr. Ashoo is an Emergency Physician based out of Tallahassee Florida with a keen interest in informatics who has been featured on several other podcasts you may have heard. We can’t think of a better person to take over for EMplify. I’m sure you’ll really like him and the content he produces. Well, with that, let’s get started on our final scheduled episode of EMplify! Nachi: As we are just about to see one of the busiest travel days of the year, that would be the Wednesday before Thanksgiving, we thought there would be no better time to discuss the September 2019 issue of EMP: Assisting With Air Travel Medical Emergencies: Responsibilities and Pitfalls. Jeff: This was a fantastic issue, thanks to the hard work by Drs. DeLaney and Greene, both of the University of Alabama Birmingham School of Medicine. Thanks as well to the peer editors, Dr. Knight, and Dr. Hill of the University of Cincinnati. Nachi: And I think you have a bit of a disclosure for this month... Show More v Jeff: Well, this is a first! Finally at the point in my career where I can announce a disclosure, though it’s more of a potential conflict of interest than an actual disclosure, but certainly still worth noting. I currently spend some of my time working for STAT-MD - which is an airline consultation service run by the Center for Emergency Medicine and UPMC. Though I’m certainly a junior member of the team, in some sense, I’ve responded nearly 500 inflight emergencies over the last two years. Nachi: And this definitely places you are in a particularly nice position to share some information with our listeners this month, and I’ll have some questions scattered throughout the episode for you too. Jeff: Sounds great, so let’s dive in, starting with what I think is the most important point - qualified, active, licensed, and sober providers should volunteer to assist in the event of a medical emergency rather than decline out of fear of medicolegal concerns. Nachi: I couldn’t agree more, so let me reiterate, please trust the evidence. And volunteer to help should you hear the call. We’ll get to this in a bit but there is little medicolegal concern and you owe it to the sick passenger to help. Jeff: So what are the chances you are called - well, they are not particularly high, but certainly not negligible either. In 2019, of the 4 billion passengers expected to fly, there will be an estimated 60,000 medical emergencies. That means there will be about 1 emergency per every 604 flights. Nachi: So, I fly about 4 times a month for work. At 4 times per month, over the next 12 years I can expect about one medical emergency. Already excited! Let’s start with some physiology. Cabin pressurization varies, but is typically equivalent to an altitude of 8000 feet. Jeff: And this has a huge effect, in one study of healthy volunteers, this change in pressure resulted in a 4-10 point decrease in oxygen saturation and a 35 point drop in arterial oxygen partial pressure from 95 mm Hg to 60. Nachi: In another study of healthy volunteers on a long haul flight, this change caused 7% of passengers to report symptoms consistent with acute altitude illness. Jeff: Due to the principles of Boyle’s law, decreased cabin pressure also causes expansion of gases within anatomical spaces in the body such as the eye, GI tract, sinuses, middle ear, etc. This expansion can potentially threaten surrounding structures. Nachi: So there must be guidelines for those recent post-op for flying - right? Jeff: There certainly are, but I don’t think we need to get into the weeds on this one since nobody listening will likely be doing pre-flight screenings. I think one thing to remember here, is that though cabins are pressurized to several thousand feet, they CAN be pressurized even further if necessary. The airlines don’t do this because it takes a tremendous quantity of fuel to do so, but if pressurization will defer a diversion, this option may peak their interest. Though an anecdote, the only time I’ve ever suggested it is on a flight from someone recent post-op eye surgery who went blind midflight. We pressurized the cabin from 8000 to 4000 and then finally to sea level and his vision returned. Pretty cool stuff. But getting back to the text, next we have air quality. Only 50% of inflight air is recirculated, all of the flow is compartmentalized between sections of rows, and all the air is run through a HEPA filter. The authors note that the air is actually comparable to that of an operating room. Nachi: Then why are people always getting sick after flying…? Jeff: Well it’s hard to prove, but experts believe that most post flight respiratory illnesses are likely caused by exposure to fomites on high-risk surfaces of airplanes and in airports - like the trays on the seat back. Nachi: Interesting. Jeff: It’s also worth noting that the air is quite dry, though this is unlikely to produce any clinically significant events. Most of the dehydration that occurs is more likely due to inadequate water intake and excess caffeine and alcohol consumption depending on the time of day. Nachi: Don’t judge. Even though it may be 8 am, some of our night shift locums friends may prefer an airport cocktail after a long week away. Jeff: Oh I’m definitely not judging, facts only over here. Anyway, let’s move on to a little epidemiology. Nachi: Syncope and cardiac events account for a large proportion of in-flight emergencies, with cardiac events accounting for the largest percentage of diversions. Jeff: Gi, endocrine and respiratory emergencies follow syncope and cardiac events, with specific percentages varying based on which study you look at. Nachi: Thankfully obstetric emergencies are relatively rare, accounting for less than 0.1% of all emergencies. Jeff: Trauma and substance abuse related complaints have also been reported, but represent only a small percentage of inflight emergencies. Nachi: I think that covers the main pathologies you may encounter. Next we should touch upon the actual responders. Physicians reportedly respond 44% of the time, followed by nurses at 20% and EMS providers at about 4%. Interestingly, despite physicians being there only 44% of the time, they were involved in the care for over 70% of diversions. Jeff: It might seem crazy, but that’s definitely my experience. Many physicians, especially non-ED physicians are not familiar with caring for the acutely ill. Additionally, most physicians are very uncomfortable actually witnessing someone syncopize and then immediately checking vitals and finding the passenger to be bradycardic and hypotensive as is the case with many patients immediately after a vasovagal syncopal episode. I cannot tell you how many times we get called by pilots considering diversion based on a physician’s request only to have the symptoms completely resolve in just 10 minutes. Be patient, this is a common in flight pathology. Nachi: Your experience has not failed you - data from your own group showed that 31% of cases resolved before arrival. Even in cases where EMS was requested, patients were only transported 37% of the time and of those, only 8% were actually admitted for further work up. Death is also a very rare phenomenon, occurring in only 0.3% of cases. Jeff: Alright, so let’s move onto the actual logistics of responding. Each airline has its own protocols and policies with respect to medical responders - some will require credentials, others may not. In some instances, you may be the first responder, in others, the flight crew may have already been in contact with their ground based medical control. Nachi: In terms of supplies, the FAA requires an emergency medical kit and an AED on all commercial flights. These kits cannot be opened without direction from a medical professional on the ground or on board. Jeff: And while airlines may add additional drugs at their discretion, the FAA mandates certain supplies. You can remember these supplies by thinking of the 5 A’s - asthma, allergy, altered mental status, ACS, and ACLS. The 5 As should help you remember the bronchodilators, epinephrine, antihistamine, dextrose, nitroglycerine, aspirin, and lidocaine as the one antiarrhythmic available. Of course, there are also gloves, an IV start kit, and a few other basic supplies. Nachi: AEDs are also required and have been since 2001 and amazingly when a shock was delivered in flight, 40% survived to hospital discharge with a good outcome. Jeff: Just as on the ground, shockable rhythms do well with good BLS care. And lastly, airlines also have a portable oxygen tank in addition to the emergency oxygen that is stored in the event of cabin depressurization. The exact quantity varies, but portable cylinders are certainly available. Nachi: So next we have to talk about a topic that I’m sure many of you have wondered about - what are the medico-legal risks of intervening? Jeff: As with most incidents of concern over medico-legal risk, we really just shouldn’t be too concerned over the potential legal ramifications. Though we’ll get into specifics, the short answer is that you should definitely volunteer your services - there are lots of protections in place with a paucity of case reports of legal actions against medical volunteers who volunteers in flight. Nachi: Perhaps most importantly, remember that ultimately the captain is in charge and you are functioning in a strict advisory capacity. Remember that most airlines can handle most emergencies with their ground based medical control, their typical staff, and predefined protocols - you are an added bonus. Jeff: For many ED providers, functioning as a consultant will be unfamiliar. Nachi: If I’m a consultant, I’m going to demand a WBC before seeing the patient, as I’m fairly certain that’s rule number 1 in consultant school... Jeff: It’s actually rule #12, now get out of your seat and come see the patient…. But back to medicolegal issues. In the US, health care professions are protected by the good Samaritan law and the 1998 federal aviation medical assistance act. Nachi: The Good Samaritan law provides legal protection to medical providers who perform their services in response to medical emergencies outside of the hospital. The exact verbiage of the law differs from state to state, but all 50 states have some version of it in their legislation. Jeff: Similarly the aviation medical assistance act applies to “medically qualified individuals and offers broad medico-legal protection to the airlines in the event that a medical volunteer is accused of malpractice as well as to medical providers who respond to an in-flight emergency.” Nachi: More specifically, the act states that “...an individual shall not be liable for damages arising out of the acts or omissions of the individual in providing or attempting to provide assistance in the case of an in-flight medical emergency unless the individual, while rendering such assistance, is guilty of gross negligence or willful misconduct.” Jeff: That’s a bit of a mouth full to get out. But basically, you need to remember that the AMAA protects you from everything shy of gross negligence. Because of this, there have been no reports to date of a medical professional falling below that standard. Nachi: There is one caveat to all of this though: don’t forget about your own mental status - for example if you have taken any sleeping aids or had any alcoholic drinks. Though this may not preclude you completely from rendering care, do so only with extreme caution. Jeff: And I don’t think we were clear enough about this up front. Up until this point we have mostly talked about US based flights. Flights run by International airlines are a somewhat different ball game for a number of reasons. First, medication kits will vary widely. Many will carry medications similar to those mandated by the FDA, but there certainly is no international standard. Next, the availability of ground based medical consultation is similarly widely variable, with many in the middle east contracting for this service and almost no airlines in Africa offering such services. Nachi: And lastly, with respect to legal risk - the international laws also vary widely. According to French law, for example, a French physician who does not volunteer may be committing willful negligence. Similar laws exist in Germany, Australia, and Canada. However proving you were there and refused to provide care would be quite difficult. And lastly, it’s unclear how to determine which countries’ laws apply when - for example, is it the sending country’s laws, the receiving country’s laws, or the country whose airspace you are currently in? Jeff: All excellent points. Next, we are moving to my favorite topic of the article - diversion. This is a tremendously complicated topic and I think the authors handled it quite well. Remember, the decision to divert is multifactorial and you are only there to communicate your medical opinion about the passenger - leave the decision for diversion up to the flight crew. I cannot stress this enough. Getting on the radio with the pilot and ground based medical control and demanding a diversion is often very unhelpful and simply not the right approach and can really be quite costly. Nachi: All of this is so interesting. I can’t believe you do this and divert planes.... Can you go into a bit more detail about everything the pilot considers when they are deciding to divert? Jeff: So there’s quite a bit, but I can touch on some of the main considerations. First, you have to consider the medical needs of the passenger - can he or she be temporized to get to the destination? Is there a suitable airport for diversion with an accessible local hospital with the required resources? Logistically, you need to find an airport that can not only safely accommodate the plane you are on but also one in which the airline can refuel and guarantee that the passengers and crew are safe. Remember, if you are on an A380, there are only so many airports with runways long enough for a safe landing. Fun fact: planes also take off heavy - with tons of fuel that will be burned prior to landing. Say you were to take off from London, bound for the US. To turn around and land back at London Heathrow, you may have to literally dump thousands of gallons of fuel to get the plane to a safe weight for landing. Alternatively, you may have to fly in circles for some time to burn fuel off in planes that cannot dump. A heavy landing necessitates a thorough maintenance overhaul of the landing gear and can cost the airlines not only money but significant time, which is equally as valuable. Nachi: Speaking of cost - while exact costs are unknown, one airline estimates that the cost can be as high as $600,000 - we are not dealing with small numbers here... Jeff: No definitely not. That’s why it’s so frustrating when medical volunteers demand the plane divert without talking through the medical scenario with the crew and ground based control - often temporizing measures are adequate. Nachi: And we alluded to this earlier - Physicians advise diversion more frequently at 9% of the time followed by EMS providers and nurses. When the airlines are left to their own means, they divert at rates roughly half that - just 5% of the time. At half a million dollars for some diversions, and an overall very low level of morbidity and mortality, a 50% reduction amounts to massive savings for possibly no clinical difference. Jeff: I can’t stress this enough - you are a consultant, helping the captain and the ground based medical control to come to most appropriate plan of action. When your advice causes the airlines to deviate from their standard protocols, that’s where they potentially run into trouble. Nachi: There are just two controversies to discuss this month and I actually think they are extremely pertinent. The first one relates to using personal medication or medications from other passengers. Given the relative paucity of medications in most airline medical kits, it may occur to you that someone else may have a helpful medication on board. While there is no strict rule against this, it could result in an increased level of scrutiny if there is an adverse event. So consider this a last resort. Jeff: The next controversy to discuss is the issue of gifts. There is a widespread belief that accepting gifts from the airlines would void legal protections. To date, there is ample airline-based data to suggest that medical providers’ legal protections are not negated in the event that the airlines wanted to reward a medical volunteer. Additionally, there are no reported cases of providers losing legal protection for receiving compensation for their services in flight. Nachi: Interestingly, some international carriers even offer points or other bonuses for registering as a medical volunteer. While I’m hesitant to call this controversy a myth, it seems like there isn’t much evidence to support it. Jeff: Agreed, don’t expect a gift, but if you do receive one, you can keep it and enjoy it without concern for your legal protections. Nachi: Alright so that wraps up the new material for this special edition of EMplify - let’s close out with some key points and clinical pearls. Jeff: Aircraft cabins are typically pressurized to about 8000 ft, resulting in a 4-10 point drop in oxygen saturation in healthy adults as well myalgias, fatigue, and generalized discomfort on long haul flights. Nachi: Only 50% of the cabin air is recirculated. When recirculated, it is subjected to HEPA filtration, which is adequate to prevent infection by airborne pathogens but not the infectious respiratory viruses, which are spread by droplets. Jeff: Dehydration on long flights is likely due to inadequate water intake and the increased use of diuretics such as caffeine and alcohol. Nachi: There is about 1 in-flight emergency per 11,000 passengers or 1 in 604 flights. Syncope and cardiac events are most common followed by GI, respiratory, and neurologic events. Jeff: Most in-flight emergencies are minor. When EMS is requested upon arrival, roughly 1/3rd are transported and less than 10% are admitted, with mortality estimated at 0.3% of cases. Nachi: AEDs are required on all US-based flights. Jeff: Airlines have a limited supply of supplemental oxygen for use in medical emergencies in addition to that provided to the entire plane in the event the cabin becomes depressurized Nachi: All US airlines have some form of ground-based medical assistance. Ultimately any decisions are the responsibility of the pilot in command – medical volunteers function in a strictly advisory capacity. Jeff: Medical volunteers are protected by both the Good Samaritan law and the 1998 Aviation Medical Assistance Act. Nachi: The Aviation Medical Assistance Act protects medically qualified individuals, unless they are guilty of gross negligence or willful misconduct. Jeff: International laws and protections vary widely. In some European countries, for a physician to not offer their services during an in-flight emergency may constitute willful negligence. Nachi: The decision to divert is multifactorial and can cost as much as $600,000 in some circumstances. Jeff: When physicians and EMS providers respond to in-flight emergencies, diversion rates are nearly double that of when the airlines work solely with their ground based support, increasing diversion events from 5% to 9%. Nachi: It is largely a myth that accepting any gift or payment after responding to an in-flight emergency would void your legal protections; the AMAA has no language regarding compensation and to date there are no such reported cases of lost legal protection. Jeff: And that’s the end of this months episode of EMplify: Assisting With Air Travel Medical Emergencies. This also marks the end of our run as your hosts. Over the past 3 years, we’ve thoroughly enjoyed hosting EMplify and having the unique opportunity to share high quality evidence based medicine with you all. As health care continues to move towards a quality over quantity paradigm, understanding evidence based practice will be increasingly more important. Nachi: We thank you all for giving us your ears and your time to help hone your clinical practice. Naturally, a big thanks also goes out to all of the contrubutors to Emergency Medicine Practice -- authors, peer reviewers, and of course the kind and thoughtful staff at EB Medicine. Jeff: We have no doubt that Dr. Ashoo, who will be taking over, will keep you on the edge of your seat as he brings new material to you. Couldn’t be more excited to have him as our successor. Nachi: As always, additional materials are available on our website for Emergency Medicine Practice subscribers. If you’re not a subscriber, consider joining today. You can find out more at ebmedicine.net/subscribe. Subscribers get in-depth articles on hundreds of emergency medicine topics, concise summaries of the articles, calculators and risk scores, and CME credit. You’ll also get enhanced access to the podcast, including any images and tables mentioned. PA’s and NP’s - make sure to use the code APP4 at checkout to save 50%. Jeff: The [DING SOUND] you heard throughout the episode corresponds to the answers to the CME questions. Lastly, be sure to find us on iTunes and rate us or leave comments there. You can also email us directly at EMplify@ebmedicine.net.

EMplify by EB Medicine
Episode 31 - Emergency Department Management of Patients Taking Direct Oral Anticoagulant Agents (Pharmacology CME)

EMplify by EB Medicine

Play Episode Listen Later Aug 6, 2019


Show Notes Jeff: Welcome back to EMplify the podcast corollary to EB Medicine’s Emergency medicine Practice. I’m Jeff Nusbaum and I’m back with Nachi Gupta. This month, we are tackling a topic for which the literature continues to rapidly change - we’re talking about the ED management of patients taking direct oral anticoagulants or DOACs, previously called novel oral anticoagulants or NOACs. Nachi: Specifically, we’ll be focusing on the use of DOACs for the indications of stroke prevention in atrial fibrillation and the treatment and prevention of recurrent venous thromboembolisms. Jeff: This month’s article was authored by Dr. Patrick Maher and Dr. Emily Taub of the Icahn School of Medicine at Mount Sinai, and it was peer reviewed by Dr. Dowin Boatright from Yale, Dr. Natalie Kreitzer from the University of Cincinnati, and Dr. Isaac Tawil from the University of New Mexico. Nachi: In their quest to update the last Emergency Medicine Practice issue on this topic which was published in 2013, they reviewed over 200 articles from 2000 to present in addition to 5 systematic reviews in the cochrane database, as well as guidelines from the American Heart Association, European society of cardiology, and the american college of cardiology. Jeff: Thanks to a strong literature base, Dr’s Maher and Taub found good quality evidence regarding safety and efficacy of the DOACs in relation to warfarin and the heparin-based anticoagulants. Nachi: But do note that the literature directly comparing the DOACs is far more limited and mostly of poor quality. Show More v Jeff: Fair enough, we’ll take what we can get. Nachi: Well, I’m sure more of those studies are still coming. Jeff: Agree. Let’s get started with some basics. Not surprisingly, DOACs now account for a similar proportion of office visits for anticoagulant use as warfarin. Nachi: With huge benefits including reduced need for monitoring and a potential for reduced bleeding complications, this certainly isn’t surprising. Jeff: Though those benefits are not without challenges - most notably the lack of an effective reversal agent and the risk of unintentional overdose in patients with altered drug metabolism. Nachi: Like all things in medicine, it’s about balancing and finding an acceptable risk/benefit profile. Jeff: True. Let’s talk pathophysiology for a minute - the control of coagulation in the human body is a balance between hemorrhage and thrombosis, mediated by an extensive number of procoagulant and anticoagulant proteins. Nachi: Before the development of the DOACs, vitamin K antagonists controlled the brunt of the market. As their name suggests, they work by inhibiting the action of vitamin K, and thus reducing the production of clotting factors 2, 7, 9, and 10, and the anticoagulant proteins C and S. Jeff: Unfortunately, these agents have a narrow therapeutic window and many drug-drug interactions, and they require frequent monitoring - making them less desirable to many. Nachi: However, in 2010, the FDA approved the first DOAC, a real game-changer. The DOACs currently on the market work by one of two mechanisms - direct thrombin inhibition or factor Xa inhibition. Jeff: DOACs are currently approved for stroke prevention in nonvalvular afib, treatment of VTE, VTE prophylaxis, and reduction of major cardiovascular events in stable cardiovascular disease. Studies are underway to test their safety and efficacy in arterial and venous thromboembolism, prevention of embolic stroke in afib, ACS, cancer-associated thrombosis, upper extremity DVT, and mesenteric thrombosis. Nachi: Direct thrombin inhibitors like Dabigatran, tradename Pradaxa, was the first FDA approved DOAC. It works by directly inhibiting thrombin, or factor IIa, which is a serine protease that converts soluble fibrinogen into fibrin for clot formation. Jeff: Dabigatran comes in doses of 75 and 150 mg. The dose depends on your renal function, and, with a half-life of 12-15 hours, is taken twice daily. Note the drastically reduced half-life as compared to warfarin, which has a half-life of up to 60 hours. Nachi: The RE-LY trial for afib found that taking 150 mg of Dabigatran BID had a lower rate of stroke and systemic embolism than warfarin with a similar rate of major hemorrhage. Dabigatran also had lower rates of fatal and traumatic intracerebral hemorrhage than warfarin. Jeff: A separate RCT found similar efficacy in treating acute VTE and preventing recurrence compared with warfarin, with reduced rates of hemorrhage! Nachi: Less monitoring, less hemorrhage, similar efficacy, I’m sold!!! Jeff: Slow down, there’s lots of other great agents out there, let’s get through them all first... Nachi: Ok, so next up we have the Factor Xa inhibitors, Rivaroxaban, apixaban, edoxaban, and betrixaban.As the name suggests, these medications work by directly inhibiting the clotting of factor Xa, which works in the clotting cascade to convert prothrombin to thrombin. Jeff: Rivaroxaban, trade name Xarelto, the second FDA approved DOAC, is used for stroke prevention in those with nonvalvular afib and VTE treatment. After taking 15 mg BID for the first 21 days, rivaroxaban is typically dosed at 20 mg daily with adjustments for reduced renal function. Nachi: The Rocket AF trial found that rivaroxaban is noninferior to warfarin for stroke and systemic embolism prevention without a significant difference in risk of major bleeding. Interestingly, GI bleeding may be higher in the rivaroxaban group, though the overall incidence was very low in both groups at about 0.4% of patients per year. Jeff: In the Einstein trial, patients with VTE were randomized to rivaroxaban or standard therapy. In the end, they reported similar rates of recurrence and bleeding outcomes for acute treatment. Continuing therapy beyond the acute period resulted in similar rates of VTE recurrence and bleeding episodes to treatment with aspirin alone. Nachi: Next we have apixaban, tradename Eliquis. Apixaban is approved for afib and the treatment of venous thromboembolism. It’s typically dosed as 10 mg BID for 7 days followed by 5 mg BID with dose reductions for the elderly and those with renal failure. Jeff: In the Aristotle trial, when compared to warfarin, apixaban was superior in preventing stroke and systemic embolism with lower mortality and bleeding. Rates of major hemorrhage-related mortality were also nearly cut in half at 30 days when compared to warfarin. Nachi: For the treatment of venous thromboembolism, the literature shows that apixaban has a similar efficacy to warfarin in preventing recurrence with less bleeding complications. Jeff: Unfortunately, with polypharmacy, there is increased risk of thromboembolic and hemorrhage risks, but this risk is similar to what is seen with warfarin. Nachi: And as compared to low molecular weight heparin, apixaban had higher bleeding rates without reducing venous thromboembolism events when used for thromboprophylaxis. It’s also been studied in acute ACS, with increased bleeding and no decrease in ischemic events. Jeff: Edoxaban is up next, approved by the FDA in 2015 for similar indications as the other Factor Xa inhibitors. It’s recommended that edoxaban be given parenterally for 5-10 days prior to starting oral treatment for VTE, which is actually similar to dabigatran. It has similar levels of VTE recurrence with fewer major bleeding episodes compared to warfarin. It has also been used with similar effects and less major bleeding for stroke prevention in afib. In the setting of cancer related DVTs specifically, as compared to low molecular weight heparin, one RCT showed lower rates of VTE but higher rates of major bleeding when compared to dalteparin. Nachi: Next we have Betrixaban, the latest Factor Xa inhibitor to be approved, back in 2017. Because it’s utility is limited to venous thromboembolism prophylaxis in mostly medically ill inpatients, it’s unlikely to be encountered by emergency physicians very frequently. Jeff: As a one sentence FYI though - note that in recent trials, betrixaban reduced the rate of VTE with equivalent rates of bleeding and reduced the rate of stroke with an increased rate of major and clinically relevant non-major bleeding as compared to enoxaparin. Nachi: Well that was a ton of information and background on the DOACs. Let’s move on to your favorite section - prehospital medicine. Jeff: Not a ton to add here this month. Perhaps, most importantly, prehospital providers should specifically ask about DOAC usage, especially in trauma, given increased rates of complications and potential need for surgery. This can help with destination selection when relevant. Interestingly, one retrospective study found limited agreement between EMS records and hospital documentation on current DOAC usage. Nachi: Extremely important to identify DOAC use early. Once the patient arrives in the ED, you can begin your focused history and physical. Make sure to get the name, dose, and time of last administration of any DOAC. Pay particular attention to the med list and the presence of CKD which could point to altered DOAC metabolism. Jeff: In terms of the physical and initial work up - let the sites of bleeding or potential sites of bleeding guide your work up. And don’t forget about the rectal exam, which potentially has some added value here - since DOACs increase the risk of GI bleeding. Nachi: Pretty straight forward history and physical, let’s talk diagnostic studies. Jeff: First up is CT. There are no clear cut guidelines here, so Drs. Maher and Taub had to rely on observational studies and expert opinion. Remember, most standard guidelines and tools, like the canadian and nexus criteria, are less accurate in anticoagulated patients, so they shouldn’t be applied. Instead, most studies recommend a low threshold for head imaging, even with minor trauma, in the setting of DOAC use. Nachi: That is so important that it’s worth repeating. Definitely have a low threshold to CT the head for even minor head trauma patients on DOACs. Basically, if you’re on anticoagulation, and you made it to the ED for anything remotely related to your head, you probably win a spin. Jeff: I suspect you are not alone with that stance... There is, however, much more debate about the utility of follow up imaging and admission after a NEGATIVE scan. Nachi: Wait, is that a thing I should routinely be doing? Jeff: Well there’s not great data here, but in one observational study of 1180 patients on either antiplatelet or anticoagulant therapy, a half a percent of them had positive findings 12 hours later, and importantly none required surgical intervention. Nachi: Certainly reassuring. And for those with positive initial imaging, the authors recommend repeat imaging within 4-6 hours in consultation with neurosurgical services or even earlier in cases of unexpected clinical decline. Jeff: Interestingly, though only a small retrospective study of 156 patients, one study found markedly reduced mortality, 4.9% vs 20.8% in those on DOACs vs warfarin with traumatic intracranial hemorrhage. Nachi: Hmm that actually surprises me a bit with the ease of reversibility of warfarin. Jeff: And we’ll get to that in a few minutes. But next we should talk about ultrasound. As always with trauma, guidelines recommend a FAST exam in the setting of blunt abdominal trauma. The only thing to be aware of here is that you should have an increased index of suspicion for bleeding, especially in hidden sites like the retroperitoneum. Nachi: And just as with traumatic head bleeds, a small observational study of those with blunt abdominal trauma found 8% vs 30% mortality for those on DOACs vs warfarin, respectively. Jeff: That is simply shocking! Let’s also talk lab studies. Hemoglobin and platelet counts should be obtained as part of the standard trauma work up. Assessing renal function via creatinine is also important, especially for those on agents which are renally excreted. Nachi: Though you can, in theory, test for plasma DOAC concentrations, such tests are not routinely indicated as levels don’t correspond to bleeding outcomes. DOAC levels may be indicated in certain specific situations, such as while treating life-threatening bleeding, development of venous thromboembolism despite compliance with DOAC therapy, and treating patients at risk for bleeding because of an overdose. Jeff: In terms of those who require surgery while on a DOAC - if urgent or emergent, the DOAC will need to be empirically reversed. For all others, the recommendation is to wait a half life or even multiple half-lives, if possible, in lieu of level testing. Nachi: Coagulation tests are up next. Routine PT and PTT levels do not help assess DOACs, as abnormalities on either test can suggest the presence of a DOAC, but the values should not be interpreted as reliable measures of either therapeutic or supratherapeutic clinical anticoagulant effect. Jeff: Dabigatran may cause prolongation of both the PT and the PTT, but the overall correlation is poor. In addition, FXa inhibitors may elevate PT in a weakly concentration dependent manner, but this may only be helpful if anti-fXa levels are unavailable. Nachi: Which is a perfect segway into our next test - anti-factor Xa level activity. Direct measurements of the anti-Fxa effect demonstrates a strong linear correlation with plasma concentrations of these agents, but the anticoagulant effect does not necessarily follow the same linear fashion. Jeff: Some labs may even have an anti-FXa effect measurement calibrated specifically to the factor 10a inhibitors. Nachi: While measuring thrombin time is not routinely recommended, the result of thrombin time or dilute thrombin time does correlate well with dabigatran concentrations across normal ranges. Jeff: And lastly, we have the Ecarin clotting time. Ecarin is an enzyme that cleaves prothrombin to an active intermediate that can be inhibited by dabigatran in the same way as thrombin. The ECT is useful for measuring dabigatran concentration - it’s not useful for testing for FXa inhibitors. A normal ECT value could be used to exclude the presence of dabigatran. Nachi: So I think that rounds out testing. Let’s move into the treatment section. Jeff: For all agents, regardless of the DOAC, the initial resuscitation follows the standard principles of hemorrhage control and trauma resuscitation. Tourniquet application, direct pressure, endoscopy for GI bleeds, etc... should all be used as needed. And most importantly, for airway bleeding, pericardial bleeding, CNS bleeding, and those with hemodynamic instability or overt bleeding, those with a 2 point drop in their hemoglobin, and those requiring 2 or more units of pRBC - they all should be considered to have serious, life threatening bleeds. This patient population definitely requires reversal agents, which we’re getting to in a minute. Nachi: A type and screen should also be sent with the plan to follow standard transfusion guidelines, with the goal of a hemoglobin level of 7, understanding that in the setting of an active bleed, the hemoglobin level will not truly be representative. Jeff: Interestingly, in the overdose literature that’s out there, bleeding episodes appear to be rare - occurring in just 5% of DOAC overdose cases. Nachi: Finally, onto the section we’ve all been waiting for. Let’s talk specific reversal agents. Praxbind is up first. Jeff: Idarucizumab or Praxbind, is the reversal agent of choice for dabigatran (which is also called pradaxa). According to data from the RE-LY trial, it reverses dabigatran up to the 99th percentile of levels measured in the trial. Nachi: And praxbind should be given in two 2.5 g IV boluses 15 minutes apart to completely reverse the effects of dabigatran. Jeff: As you would expect given this data, guidelines for DOAC reversal recommend it in major life-threatening bleeding events for patients on dabigatran. Nachi: Next up is recombinant coagulation factor Xa (brand name Andexxa), which was approved in 2018 for the FXa inhibitors. This recombinant factor has a decoy receptor for the FXa agents, thus eliminating their anticoagulant effects. Jeff: Recombinant factor Xa is given in either high or low dose infusions. High dose infusions for those on rivaroxaban doses of >10 mg or apixaban doses >5 mg within the last 8 hours and for unknown doses and unknown time of administration. Low dose infusions should be used for those with smaller doses within the last 8 hours or for last doses taken beyond 8 hours. Nachi: In one trial of 352 patients, recombinant factor Xa given as an IV bolus and 2 hour infusion was highly effective at normalizing anti-FXa levels. 82% of the assessed patients at 12 hours achieved hemostasis, but there were also thrombotic events in 10% of the patients at 30 days. Jeff: And reported thrombotic events aren’t the only downside. Though the literature isn’t clear, there may be limited use of recombinant factor Xa outside of the time of the continuous infusion, and even worse, there may be rebound of anti-Fxa levels and anticoagulant effect. And lastly, the cost is SUBSTANTIAL. Nachi: Is there really a cost threshold for stopping life threatening bleeding…? Jeff: Touche, but that means we need to save it for specific times and consider other options out there. Since this has only been around for a year or so, let’s let the literature play out on this too... Nachi: And that perfectly takes us into our next topic, which is nonspecific reversal agents, starting with prothrombin complex concentrate, also called PCC. Jeff: PCC is FDA approved for rapid reversal of vitamin K antagonist-related hemorrhagic events and is now being used off label for DOAC reversal. Nachi: PCC comes in 3 and 4 factor varieties. 3-factor PCC contains factors 2, 9, 10 and trace amounts of factor 7. 4 factor PCC contains factors 2, 9 10, as well as purified factor 7 and proteins C and S. Jeff: Both also contain trace amounts of heparin so can’t be given to someone with a history of HIT. Nachi: PCC works by overwhelming the inhibitor agent by increasing the concentration of upstream clotting factors. It has been shown, in healthy volunteers, to normalize PT abnormalities and bleeding times, and to achieve effective bleeding control in patients on rivaroxaban, apixaban, and edoxaban with major bleeding events. Jeff: In small studies looking at various end points, 4 factor PCC has been shown to be superior to 3 factor PCC. Nachi: Currently it’s given via weight-based dosing, but there is interest in studying a fixed-dose to decrease both time to medication administration and cost of reversal. Jeff: Guidelines currently recommend 4F PCC over 3F PCC, if available, for the management of factor Xa inhibitor induced bleeding, with studies showing an effectiveness of nearly 70%. As a result, 4F PCC has become an agent of choice for rapid reversal of FXa inhibitors during major bleeding events. Nachi: Next we have activated PCC (trade name FEIBA). This is essentially 4Factor PCC with a modified factor 7. Though traditionally saved for bleeding reversal in hemophiliacs, aPCC is now being studied in DOAC induced bleeding. Though early studies are promising, aPCC should not be used over 4factor PCC routinely as of now but may be used if 4Factor PCC is not available. Jeff: Next we have recombinant factor 7a (trade name novoseven). This works by activating factors 9 and 10 resulting in rapid increase in thrombin. Studies have shown that it may reverse the effect of dabigatran, at the expense of increased risk of thrombosis. As such, it should not be used as long as other agents are available. Nachi: Fresh Frozen Plasma is the last agent to discuss in this section. Not a lot to say here - FFP is not recommended for reversal of any of the DOACs. It may be given as a part of of a balanced massive transfusion resuscitation, but otherwise, at this time, there doesn’t seem to be a clear role. Jeff: Let’s move on to adjunct therapies, of which we have 3 to discuss. Nachi: First is activated charcoal. Only weak evidence exists here - but, according to expert recommendations, there may be a role for DOAC ingestions within 2 hours of presentations. Jeff: Perhaps more useful than charcoal is our next adjunct - tranexamic acid or TXA. TXA is a synthetic lysine analogue with antifibrinolytic activity through reversible binding of plasmin. CRASH-2 is the main trial to know here. CRASH-2 demonstrated reduced mortality if given within 3 hours in trauma patients. There is very limited data with respect to TXA and DOACs specifically, so continue to administer TXA as part of your standard trauma protocol without modification if the patient is on a DOAC, as it’s likely helpful based on what data we have. Nachi: Next is vitamin K - there is no data to support routine use of vitamin K in those taking DOACs - save that for those on vitamin K antagonists. Jeff: Also, worth mentioning here is the importance of hematology input in developing hospital-wide protocols for reversal agents, especially if availability of certain agents is limited. Nachi: Let’s talk about some special circumstances and populations as they relate to DOACs. Patients with mechanical heart valves were excluded from the major DOAC trials. And of note, a trial of dabigatran in mechanical valve patients was stopped early because of bleeding and thromboembolic events. As such, the American College of Cardiology state that DOACs are reasonable for afib with native valve disease. Jeff: DOACs should be used with caution for pregnant, breastfeeding, and pediatric patients. A case series of 233 pregnancies that occurred among patients on a DOAC reported high rates of miscarriage. Nachi: Patients with renal impairment are particularly concerning as all DOACs are dependent to some degree on renal elimination. Current guidelines from the Anticoagulation Forum recommend avoiding dabigatran and rivaroxaban for patients with CrCL < 30 and avoiding edoxaban and betrixaban for patients with CrCl < 15. Jeff: A 2017 Cochrane review noted similar efficacy without increased risk of major bleeding when using DOACs in those with egfr > 30 (that’s ckd3b or better) when compared to patients with normal renal function and limited evidence for safety below this estimated GFR. Nachi: Of course, dosing with renal impairment will be different. We won’t go into the details of that here as you will probably discuss this directly with your pharmacist. Jeff: We should mention, however, that reversal of the anticoagulant in the setting of renal impairment for your major bleeding patient is exactly the same as we already outlined. Nachi: Let’s move on to some controversies and cutting-edge topics. The first one is a pretty big topic and that is treatment for ischemic stroke patients taking DOACs. Jeff: Safety and efficacy of tPA or endovascular therapy for patients on DOACs continues to be debated. Current guidelines do not recommend tPA if the last DOAC dose was within the past 48 hours, unless lab testing specific to these agents shows normal results. Nachi: Specifically, the American Heart Association suggests that INR and PTT be normal in all cases. ECT and TT should be tested for dabigatran. And calibrated anti-FXa level testing be normal for FXa inhibitors. Jeff: The AHA registry actually included 251 patients who received tpa while on DOACs, which along with cohort analysis of 26 ROCKET-AF trial patients, suggest the risk of intracranial hemorrhage is similar to patients on warfarin with INR < 1.7 and to patients not on any anticoagulation who received tpa. However, given the retrospective nature of this data, we cannot exclude the possibility of increased risk of adverse events with tpa given to patients on DOACs. Nachi: Endovascular thrombectomy also has not been studied in large numbers for patients on DOACs. Current recommendations are to discuss with your stroke team. IV lysis or endovascular thrombectomy may be considered for select patients on DOACs. Always include the patient and family in shared decision making here. Jeff: There are also some scoring systems for bleeding risk to discuss briefly. The HAS-BLED has been used to determine bleeding risk in afib patients taking warfarin. The ORBIT score was validated in a cohort that included patients on DOACs and is similarly easy to use, and notably does not require INR values. Nachi: There is also the ABC score which has demonstrated slightly better prediction characteristics for bleeding risk, but it requires high-sensitivity troponin, limiting its practical use. Jeff: We won’t say more about the scoring tools here, but would recommend that you head over to MD Calc, where you can find them and use them in your practice. Nachi: Let’s also comment on the practicality of hemodialysis for removal of the DOACs. Multiple small case series have shown successful removal of dabigatran, given its small size and low protein binding. On the other hand, the FXa inhibitors are less amenable to removal in this way because of their higher protein binding. Jeff: Worth mentioning here also - dialysis catheters if placed should be in compressible areas in case bleeding occurs. The role of hemodialysis for overdose may be limited now that the specific reversal agent, praxbind, exists. Nachi: In terms of cutting-edge tests, we have viscoelastic testing like thromboelastography and rotational thromboelastometry. Several studies have examined the utility of viscoelastic testing to detect presence of DOACs with varying results. Prolongation of clotting times here does appear to correlate with concentration, but these tests haven’t emerged as a gold standard yet. Jeff: Also, for cutting edge, we should mention ciraparantag. And if you’ve been listening patiently and just thinking to yourself why can’t there be one reversal agent to reverse everything, this may be the solution. Ciraparantag (or aripazine) is a universal anticoagulant reversal agent that may have a role in all DOACs and heparins. It binds and inactivates all of these agents and it doesn’t appear to have a procoagulant effect. Nachi: Clinical trials for ciraparantag have shown rapid and durable reversal of edoxaban, but further trials and FDA approval are still needed. Jeff: We’ve covered a ton of material so far. As we near the end of this episode, let’s talk disposition. Nachi: First, we have those already on DOACs - I think it goes without saying that any patient who receives pharmacological reversal of coagulopathy for major bleeding needs to be admitted, likely to the ICU. Jeff: Next we have those that we are considering starting a DOAC, for example in someone with newly diagnosed VTE, or patients with an appropriate CHADS-VASC with newly diagnosed non-valvular afib. Nachi: With respect to venous thromboembolism, both dabigatran and edoxaban require a 5 day bridge with heparin, whereas apixaban and rivaroxaban do not. The latter is not only easier on the patient but also offers potential cost savings with low risk of hemorrhagic complications. Jeff: For patients with newly diagnosed DVT / PE, both the American and British Thoracic Society, as well as ACEP, recommend using either the pulmonary embolism severity index, aka PESI, or the simplified PESI or the Hestia criteria to risk stratify patients with PE. The low risk group is potentially appropriate for discharge home on anticoagulation. This strategy reduces hospital days and costs with otherwise similar outcomes - total win all around. Nachi: Definitely a great opportunity for some shared decision making since data here is fairly sparse. This is also a great place to have institutional policies, which could support this practice and also ensure rapid outpatient follow up. Jeff: If you are going to consider ED discharge after starting a DOAC - there isn’t great data supporting one over another. You’ll have to consider patient insurance, cost, dosing schedules, and patient / caregiver preferences. Vitamin K antagonists should also be discussed as there is lots of data to support their safety outcomes, not to mention that they are often far cheaper…. As an interesting aside - I recently diagnosed a DVT/PE in an Amish gentleman who came to the ED by horse - that was some complicated decision making with respect to balancing the potentially prohibitive cost of DOACs with the massive inconvenience of frequently checking INRs after a 5 mile horseback ride into town... Nachi: Nice opportunity for shared decision making… Jeff: Lastly, we have those patients who are higher risk for bleeding. Though I’d personally be quite uneasy in this population, if you are to start a DOAC, consider apixaban or edoxaban, which likely have lower risk of major bleeding. Nachi: So that’s it for the new material for this month’s issue. Certainly, an important topic as the frequency of DOAC use continues to rise given their clear advantages for both patients and providers. However, despite their outpatient ease of use, it definitely complicates our lives in the ED with no easy way to evaluate their anticoagulant effect and costly reversal options. Hopefully all our hospitals have developed or will soon develop guidelines for both managing ongoing bleeding with reversal agents and for collaborative discharges with appropriate follow up resources for those we send home on a DOAC. Jeff: Absolutely. Let’s wrap up with some the highest yield points and clinical pearls Nachi: Dabigatran works by direct thrombin inhibition, whereas rivaroxaban, apixaban, edoxaban, and betrixaban all work by Factor Xa inhibition. Jeff: The DOACs have a much shorter half-life than warfarin. Nachi: Prehospital care providers should ask all patients about their use of anticoagulants. Jeff: Have a low threshold to order a head CT in patients with mild head trauma if they are on DOACs. Nachi: For positive head CT findings or high suspicion of significant injury, order a repeat head CT in 4 to 6 hours and discuss with neurosurgery. Jeff: Have a lower threshold to conduct a FAST exam for blunt abdominal trauma patients on DOACs. Nachi: Assessment of renal function is important with regards to all DOACs. Jeff: While actual plasma concentrations of DOACs can be measured, these do not correspond to bleeding outcomes and should not be ordered routinely. Nachi: The DOACs may cause mild prolongation of PT and PTT. Jeff: Idarucizumab (Praxbind®) is an antibody to dabigatran. For dabigatran reversal, administer two 2.5g IV boluses 15 minutes apart. Reversal is rapid and does not cause prothrombotic effects. Nachi: Recombinant FXa can be used to reverse the FXa inhibitors. This works as a decoy receptor for the FXa agents. Jeff: Vitamin K and FFP are not recommended for reversal of DOACs. Nachi: Consider activated charcoal to remove DOACs ingested within the last two hours in the setting of life-threatening hemorrhages in patient’s on DOACs. Jeff: Hemodialysis can effectively remove dabigatran, but this is not true for the FXa inhibitors. Nachi: 4F-PCC has been shown to be effective in reversing the effects of the FXa inhibitors. This is thought to be due to overwhelming the inhibitor agent by increased concentrations of upstream clotting factors. Jeff: tPA is contraindicated in acute ischemic stroke if a DOAC dose was administered within the last 48 hours, unless certain laboratory testing criteria are met. Nachi: Emergency clinicians should consider initiating DOACs in the ED for patients with new onset nonvalvular atrial fibrillation, DVT, or PE that is in a low-risk group. Jeff: So that wraps up Episode 31! Nachi: As always, additional materials are available on our website for Emergency Medicine Practice subscribers. If you’re not a subscriber, consider joining today. You can find out more at ebmedicine.net/subscribe. Subscribers get in-depth articles on hundreds of emergency medicine topics, concise summaries of the articles, calculators and risk scores, and CME credit. You’ll also get enhanced access to the podcast, including any images and tables mentioned. PA’s and NP’s - make sure to use the code APP4 at checkout to save 50%. Jeff: And the address for this month’s cme credit is www.ebmedicine.net/E0819, so head over there to get your CME credit. As always, the [DING SOUND] you heard throughout the episode corresponds to the answers to the CME questions. Lastly, be sure to find us on iTunes and rate us or leave comments there. You can also email us directly at EMplify@ebmedicine.net with any comments or suggestions. Talk to you next month!

Big Gay Fiction Podcast
Ep 191: C.B. Lee's "Sidekick Squad" Returns

Big Gay Fiction Podcast

Play Episode Listen Later Jun 3, 2019 56:50


Happy Pride Month! Jeff discusses the awesome Pride Month video from the NHL. He also talks about all the things that happened during release week for Netminder. Members of the Queer Sacramento Authors Collective had a reading this past week at the Lavender Library and will be reading again this coming week at Time Tested Books. The live streams are available on the podcast’s Facebook page. We talk about the Coastal Magic Convention 2020 lineup of m/m romance featured authors. We review the Elton John biopic Rocketman. Jeff reviews Max Walker’s A Lover’s Game. Will recommends books for Pride month: Pride: The Story of Harvey Milk and the Rainbow Flag by Rob Sanders, Stonewall: A Building. An Uprising. A Revolution by Rob Sanders, The Stonewall Riots: Coming Out in the Streets by Gayle E. Pitman, Stonewall: The Definitive Story of the LGBTQ Rights Uprising That Changed America by Martin Duberman and The Stonewall Reader curated by The New York Public Library. Jeff interviews C.B. Lee about the latest book in her Sidekick Squad series, Not Your Backup. We also discuss the origin of the Sidekick Squad, what C.B. hears from readers and what’s coming up next. Complete shownotes for episode 191 along with a transcript of the interview are at BigGayFictionPodcast.com. Interview Transcript – C.B. Lee This transcript was made possible by our community on Patreon. You can get information on how to join them at patreon.com/biggayfictionpodcast. Jeff: Welcome C.B. to the podcast. It’s great to have you here. C.B.: Hello, thanks for having me. I’m so excited to be here. Jeff: Yeah, it’s very exciting. We got to see you last year at the LA Times Festival of Books for a little, teeny, tiny interview. But we’re thrilled to have you back as we start to talk about “Not Your Backup” which will come out on June 4th, just the day after this airs actually. C.B.: Oh my gosh, that will be really exciting. I actually got to touch the advanced copies for the first time last week at YALLWEST, which due to this fun time jumps of podcasting… Jeff: Well, actually a bit about a month ago. C.B.: Right, right. But, yeah, it was really interesting just to, like, hold it for the first time and see it in print. Granted, the advance copies have typos since, you know, I went through and did all the pass through the typos. But it’s fun, it’s fun. It’s great that, you know, it exists, it’s in physical form, hasn’t quite felt real till now, but now it’s a real book or will be very soon, or tomorrow for your listeners and readers. Jeff: There is something about holding that physical copy, even if you see it, you know, even if it’s on your tablet as an ebook. It’s like there’s nothing like that paperback when it gets there. C.B.: Yeah. Jeff: Now, “Not Your Backup” is book 3 in the “Sidekick Squad Series.” And, for those who haven’t experienced this series or heard of it, tell us what this series is all about. C.B.: Sure, it is about a group of queer teens that take on a corrupt government superhero agency. And they live in this sort of post-dystopian world where superheroes are kind of treated like celebrities. And there’s, you know, shadowy government organizations and mysterious heroes, league of heroes, that kind of dictates who gets to be a hero and who gets to be a villain. And our protagonists all kind of uncover this huge conspiracy, and then they work together to build a resistance and take it down. Jeff: It’s quite the world that you’ve built here. I mean, you hit so many things that are dystopian, U.S. future, superheroes, villains. What was your inspiration for all of this? C.B.: So I’ve always been fascinated by kind of the, like, post-apocalyptic or dystopian worlds. But a lot of the media that I’ve read mostly focuses on kind of the…when you’re in the middle of the disaster, when you’re in the middle of the catastrophe, when everything is going wrong, how are people struggling to survive. So I really wanted to see a world that was…you know, so this is more of like a solarpunk take where the world has started to move forward, where it’s 100 years after all of these disasters have happened – kind of the impetus for the superpowers. And my book is a really extremely intense solar flare that catalyzes latent gene in people. And then after the flare, which knocks out a bunch of nuclear power plants, also, it starts kind of a chain reaction of a bunch of environmental disasters. So 100 years later the governments of the world have kind of shifted and changed, there’s been wars, there’s been fights over resources, so the United States is now part of the North American collective, which is the entire continent of North America, which is now the habitable places. There’s, you know, 24 regions, which is, you know, kind of what’s left of the states. So there’s different areas all across North America, which are now the regions in which people live and, you know, continue to move forward with, like, their amazing technology, and hover tech, and all this amazing, clean technology. But, at the same time, you have all of these like high-tech cities, but outside of those regions, everything else is like the unmaintained lands. So, you know, the government is claiming there’s radiation danger and don’t venture out, but, of course, our heroes are like, you know, what the government tells us isn’t necessarily true. So a lot of…actually, the fun of writing “Not Your Backup” is one of my working titles was “Not Your Road Trip,” because there’s a lot of road tripping in this book. Jeff: Yeah, I noticed. There’s a bit of a road trip in the sneak peek that I got to read too, that they’re out on this road trip, essentially on a mission. C.B.: Right, right. Yeah, there’s the heist in the beginning of the very first chapter. But, yeah, there’s a lot of fun. We get to see a little bit more of the country outside of the cities in this book, so that’s exciting. Jeff: Now, each of the books deals with one of the main heroes, if you will, or the sidekicks, if you will, given the titles of the book, but they’re really the heroes. In “Not Your Backup”, we focus on Emma, who is really the only one of them without the powers. What’s happening to our heroes this time out? C.B.: So at the end of “Not Your Villain,” we have destroyed the registry, which…the big name of everyone who’s ever registered with powers that Captain Orion was planning to use to kidnap people and use for experiments. At that point, our heroes have been looking for the resistance the whole time. And they find a mysterious group that’s been leaving messages on encrypted channels. But then, at the end of the book, they realize that this is actually like a group of nerds that have been joining together to watch movies like “Star Wars,” and “Harry Potter,” and stuff. So they realize that they need to start the resistance. So that’s where we are at the beginning of “Not Your Backup,” where Emma and Bells are back in Nevada, and they are kind of in the midst of this fledgling resistance group – meanwhile, Jess and Abby are at the villain’s guild hideout in the Rockies and they’re trying to corral all the other meta-humans into taking action. So, the beginning of the book, you know, where kind of everyone has different goals, but then they all come together. It’s more about like building the resistance and finding… For Emma, it’s her journey in finding who she is. And, really, she’s a very natural leader, she loves coming up with plans, and she’s definitely a Gryffindor. She’s the first to jump in and try to take action. Her default is, like, fight me. But she also is, as you mentioned, she doesn’t have powers, and so when she’s trying to take a more active role in the resistance, she kind of butts heads with a few of the other members as they have different ideas about who is and who isn’t part of the resistance. Jeff: She just needs to remind them that Batman didn’t have powers either. He just had a really good utility belt and brains. So she could definitely fill that role. What’s been the driving force behind deciding the type of character that you have at the forefront of each book? Because the three books have very different, distinct character types and personalities, and just everything about them is just…they’re just very different from each other. C.B.: So, from the beginning, I wanted to tell this story about, you know, this fun adventure story with queer protagonists. So each book would center on another one of them in the main four. So there’s…and then after “Not Your Backup”, there’s one more book which will be Abby’s story, and so she will round out the quartet. But each of their…you know, they have very different personalities, but it’s been interesting writing their stories because each of them are on their own journey in what makes them a hero and finding how do they define success, and how do other people see them, and how do they see themselves. So, for each story, because we’re moving forward in time, as we get to see who is really, you know… It’s been interesting, because all four books will fit together as a series, but in each book, everyone gets to have their own journey. Jeff: Which I really like because we’ve been introduced to all of them all the way back, you know, back in the first book, but then they get to their own story, which could essentially be read as a stand-alone, if you wanted to, I guess, although reading all of them together is much better. What was the bigger challenge to come up with the trajectory of these four diverse characters or to build this alternate universe of the U.S., or were they kind of equal challenges? C.B.: I feel like the challenge for me is I’m not like a great outliner or I haven’t ever really been a planner. So I’ve always been more of the pantser in the writing style. So when writing a series, when I wrote “Not Your Sidekick,” I didn’t know, up until I think I was about 50,000 words in when I realized that I could not basically solve the problem in that one book, you know, because when I pitched it, it was one book. And then I was like, “Well, I really love all of these characters.” There’s a huge…there’s a bigger story here that I’ve introduced, and I will need more than one book to solve it. And so, from the get-go, I knew the next story after Jess would be Bells because you get into, like, the backstory of the meta-human training and the heroes, league of heroes. And so, I think, overall, just planning a series is really challenging. Some people are great at it, where, you know, they have very detailed outlines, they know, from the very beginning to the very end, what the key points are going to be. And so, as I was writing book 1, I kind of had a panic attack and I was like, “Oh, no, I have to figure out what’s going to happen in each of the books.” And then as I restructured things and then writing book 2 and then 3, it’s kind of come to a point where I’m working on book 4 and now, like, everything that I… One of the reasons why it took me a longer time between book… So “Not Your Villain” came in 2017 and “Not Your Backup” is coming out in 2019. So I didn’t have a book come out last year because I was still working on crafting the storyline because whatever I did or didn’t do in book 3 would determine what would happen in book 4. So everything had to fall into place, and I had to like figure out a lot of stuff. So it was challenging, but I think, you know, it’s still challenging, but that’s part of the joy of writing is to figure out how to tell the story you want to tell. Jeff: If you do a series again, do you think you’ll try to do outlines more in the upfront or now that you’ve had this experience, do you kind of know how to do it and keep your pantser ways going on? C.B.: I don’t know if I’ll ever… Like, I feel like with each book, I’m like, “Oh, do I know how to write a novel now?” But like every book is its own challenge. I do have a better sense of like, okay, you know, how do I plot as a pantser? And then plotting for pantsers, and like learning how to like… For me, I just tend to think of an outline like a road map where I have these destinations I wanna hit, but I’m not committed to – I don’t have to see everything and if I go off track or take a different route, that’s okay as well. So as long as I kind of get the same…like, it’s all in the journey of how I get there, and then the destinations that I pick along the way, if I get to them or not, that’s cool. I kind of have these benchmarks that I want to reach. But I really like thinking of the framework in which I think about my books as a roadmap. So I’ll try to plan out, you know, all the cities I want to visit, but I’m open to discovering places along the way and kind of building up on that. Jeff: How does the pantser sort of method work while you’re world building? Or do you try to, at least, before you start writing, “No. This is my world. This is what’s happened. This is what the U.S. looks like now, and how all that works?” Or does that come organically as you go as well? C.B.: I actually thought like, really early on established the world and what it looked like. I drew a map of which countries were left and which, how, who, what alliances were made in probably much more detail than you’ll ever see in the books because basically I plotted out what happened in that World War III, and what areas were no longer habitable, and all of these things, and all the different lines of, like… I probably spent way too much time figuring out the socio-economic holes, ramifications of which country is now aligned with what country and which countries refuse to join a union or…and they’re all new countries. So there is this whole political backstory of, like, which country fought….you know, which alliance was at war, which alliance and what’s still happening overseas. Some of which you’ll see, but it is the world itself. I’ve always enjoyed world building, and I think it’s really fun to come up with the…I think once I wrote book one where I established, like, how do the powers work. Every power level is different. For example, like the A class, B class, or C class, depending on how…basically, I wanted all the meta-humans in my world to…their powers basically are dependent on…like, they have a limited number of time per day that they can use their powers. So once they’ve used it, then they can’t use it for the next 24-hour period. So it’s a different sort of look at superpowers and abilities because you have to be more mindful about how you use your powers. And so that was an element that I established early on, but overall, I think for me, world building, there are some details I discovered along the way, but I pretty much plotted the world building which is a funny like…and it’s interesting to think about, even though I do consider myself a pantser, how much of this series I did very much envision out from an early stage. So like some of the confrontations and the fight scenes, and the stuff that… I’ve been planning one particular scene in book 3 since book 1, and I didn’t get to do it until… And, so that was like a fun way to be like, “Oh, yes, I’m finally going to like write the scene that I’ve been waiting for.” But I’d had a lot of these moments in my head, and just planning it out and getting the opportunity to like, “Okay, yes. Now, I’m getting to that chapter. I’m getting to the point in the whole series where we’re getting…you know, it’s coming full circle.” So that’s very satisfying. Jeff: It sounds like you’d have a lot of bonus material too if you ever wanted to release it, if all the stuff that you’ve got of the world itself, and the disaster, and how it’s split up. C.B.: Yeah, I mean, potentially, I have a whole timeline that I could release. And then I did these fun… For “Not Your Villain,” I did all the deleted scenes, well, deleted as far as they were cut for length. But I still consider it part of the story, the cannon. So those are an extra that are available on my website. I’ll probably do something similar for Backup, but I’m not at that stage yet. Jeff: Right. It’s good to know about the Villain extras. I’ll be going to check those out. C.B.: Yeah, yeah, they’re fun. They’re all in one PDF. And my book designer, C.B. Macera, was amazing. And she formatted them the same way as the book because we have a lot of extra art as well because she does these amazing, like, chapter headers for each chapter. She’s so talented and amazing designing the covers and the interior of the book, really, you know, capture that feel. And so, “Not Your Villain” actually, in the edits, went from…yeah, it was cut a lot. So, you know, it’s really sad as a writer to kind of see these scenes go, but, you know, as far as, yes, and my editors are great about, like, “This scene is great. But, you know, it kind of slows down the pacing,” or like, “This scene takes us in a different tone or direction, and, like, while they’re great, they don’t fit in the story at that moment and kind of take us away from the main action.” So I understand why they had to go. And, yes, the story is stronger overall, but I like them as an extra. Jeff: Yeah, we’ve all gotten used to those on DVDs over time, so there’s really no reason books can’t have them too. C.B.: Yeah, yeah, it’s a fun extra to have the deleted scenes. Jeff: So you mentioned one more book in the series, the fourth one, is that gonna be it for these heroes? C.B.: Yeah, I can’t say for sure that the door is completely closed. But for this arc, this storyline, that will be the series. It will be completed with Abby’s book. Jeff: We could treat it like the Marvel Universe. Now, if phase 1 is over, and there could be a phase 2 eventually, once you figure out what that is. What got you started in writing? C.B.: I love telling stories. And think I was very young when I tried, like, writing a story for myself. I had an old notebook that I would scribble this adventure story in when I was in sixth grade. And then I’d kind of start and then every recess, I’d pick it up or I’d work on it when I was supposed to be doing homework or stuff in class. And so I’ve always wanted to tell stories. I didn’t really think of it seriously as a career. And then, after college, I went to school for science. And so I was going to get a PhD and do all this stuff, and I, you know, ended up going a different route. And really writing has been a journey where it kind of comes…it ties back to, and I guess like the “Sidekick Squad Series” and the titles were all, you know, the titles are all about, like, hey, I’m not who you think I am, I’m not the person that you’re claiming that I should be or expect me to be. It comes back to where, as a queer woman of color, I didn’t really see a lot of myself in books growing up. And so what I really hoped to write was, like especially when I was writing Sidekick for the first time, I wanted to write a book for my 16-year-old self. So this is the book that I wanted to read. And I wanted it to exist. And so writing…and then I also just like telling stories. So I wanted the story to be fun, I wanted them to be happy and have, you know, there’s drama in them. But overall, I wanted to see kids like myself, and kids who looked like me, and other kids, that reflect the world that we live in because trans kids exist, asexual kids exist, mentally ill kids exist. And there aren’t enough stories where they get to be part of something that’s a superhero adventure, or something fun and fantastic like this. And so I wish that I hope…and I think there are definitely now, in the past, you know, 5, 10 years, there’ve been a lot more stories, and I think that’s great. So I’m just really excited that now people are writing more and more and reading more and more, and there’s a lot of great books to come. Jeff: And one of the things to not…I don’t want to knock the coming out story because those are very important and very needed. But in these books, that’s not really part of it. I mean, this is a much bigger adventure these teenagers are on that just doesn’t revolve around their sexuality so much, that just, there’s so much more going on, which I think is awesome and gives everybody something different to read. C.B.: Yeah, I love that…like, I want us to have the breadth of different types of genres and stories that there are for, like, able-bodied heterosexual people. Like, I want there to be so many stories to choose from. And so, you know…and I really love…I think there’s a lot of power in having joyful stories as well and stories where, yes, sexuality is a part of it, but, you know, who I am is not just my sexuality. Like, every person is multitudes where who you are is made up of so many things like your passions, your dreams, your hopes, your hobbies, your friends. Who you are as a person isn’t just one thing, and we’re all…I love being able to explore that and getting to see… I want people to see that people in the LGBTQ community are like fully nuanced people that get to be complicated and have flaws and go on adventures, or fall in love, or discover more about themselves in the way that all straight people can. Jeff: Well said. I like that for sure. Who were some of your author influences as you got started on your writing journey? C.B.: So I really love the “Harry Potter” series growing up. That’s a huge influence for me. That was one of the first ways I started writing was “Harry Potter” fan fiction because I loved that world so much. And just a lot of…I read so much fantasy like Ursula Le Guin, Diane Duane, Eoin Colfer, like tons of fantasy, Jane Yolen. I started to read a lot more widely. I think when I was a kid, there was a point when I would like go to the YA section and just read like everything in the library. So I would pretty much read everything, but I tended to love fantasy and sci-fi the most. Jeff: Nice, and now you get to write your own. C.B.: Yes. I’m really lucky. Jeff: Is there a genre you want to branch into as you close up the “Sidekick Series?” C.B.: I’m excited to write more fantasy. So the “Sidekick Squad” is more sci-fi, speculative. So I’m working on some fantasy stuff. I’m excited to share it. I have some contemporary stuff. I have a short story coming out next year in the next “All Out” anthology. So that’ll be fun. It’s like a very fluffy high school romance that’s just set in like… The only magic is the friendship and the romance so… Jeff: Aww, sometimes that’s all you need though. C.B.: Yeah, yeah, it’s fun because when I was writing it, I hadn’t written just contemporary in a long time. So that was really fun to try and explore that. Plus, I got to put a lot of puns in there, so it’s all good. Jeff: You seem to travel a lot. I feel like every time I see you on social media, it’s like, “I’m going to this event” or, “Here I am at this event, come see me over here.” What drives you to be out on the road so much? C.B.: So I like the opportunity to see, meet readers. I live in Los Angeles, and I’m really lucky to have the opportunity to go to a lot of events that are fairly local. I also think it’s really important to travel when I have the opportunity to, and I’m lucky that I’ve been able to, and sometimes I will just commit to doing it out of my own pocket because I want to meet readers in those areas. So I love…yeah, I already said it, I love meeting readers. But, especially in places where you don’t get a lot of, you know, LGBTQ resources, or teens don’t necessarily get to see a lot of authors or books with this content come their way and getting to meet teens in, you know, small towns or getting to meet people even though I do a lot of web chats. And so that’s fun chatting with libraries or classrooms through the power of the internet, which is amazing. But, part of being on panels and having these conversations is important to me just because, you know, I get to share with people that might not have heard of my books before or are just learning about it for the first time. And so that’s always a very special moment to me when someone’s like, “Oh my gosh,” like, “This is exactly what I’ve been looking for. I didn’t know it exists, but now I do.” And so that’s very meaningful. And sometimes I get to meet people who have already read the books, and that’s very important to me. And that’s a part of the most rewarding things to me as a writer is knowing that your work has made an impact on someone, whether it’s just making them smile, or, you know, to the depth of having someone like… I’ve cried over several really long emails just because sometimes people are really sweet and talk about like, “Oh, this is my coming out experience”. I want people to see that they’re valid. And so knowing that someone else has read my work and recognize themselves, that’s one of the most rewarding things I’ve ever done. I was in Seattle recently, earlier this year, and one of the events I did was with the Seattle Public Library where we went to the LGBTQ Youth Center. And that was really powerful just to, like, hang out with kids and chat with them and what are they looking forward to as far as like, “Hey, what’s powerful to me, what’s fun to me?” A lot of this is stuff that I totally resonate with when they connect with a character on TV or are upset that, you know, that character got killed off in one season or whatever, because of TV. But, you know, it’s always great to chat with people. Everyone’s always going through something. Jeff: Yeah, for sure. So we’ve hinted a little bit about some stuff that’s coming up for you. You’re working on Sidekick 4, you’ve got a short story coming out next year, anything else we should know about? C.B.: I’m also writing the new “BEN 10” original graphic novels with BOOM! Studios and Cartoon Network. So one is already out. It’s called “The Truth Is Out There.” It’s where “Ben 10” is part of the Cartoon Network show where Ben can turn into 10 different aliens. So it’s fun. It’s a fun, middle-grade romp. So I’m doing a number of those graphic novels with BOOM! So those will be available throughout…I can’t recall the dates off the top of my head, but another one is coming out in July, and then one more in October of this year and then the next year, there will be some more coming as well. Jeff: What’s it like writing for graphic novel because, I mean, that’s a different sort of animal, a novel that, you know, is 60,000 or 70,000 words long? C.B.: It was definitely a new experience. It was a lot of fun trying a different medium. Like, definitely writing a script goes differently as far as…and I catch myself like “Oh, I’m being too descriptive. This is literally…the only person who will see this is the artist.” And it’s also a great collaborative process. So it’s really fun to work with the artists and editors and bring together this story that exists in its own medium. It’s not just me, the writer, but what the artist is bringing, and collaborating with them, and getting to like…you know, I’ll write the dialogue and the action. And then they’ll imagine it in a certain way of like, “Oh, I didn’t think of that,” and that’s really fun. I really like the graphic novel format. I’m hoping to do more. I’m really excited to be working on these projects. And, yeah, hopefully, I’ll be able to share more upcoming projects. Jeff: Pretty cool. And speaking of, what is the best way for people to keep up with you online? C.B.: You can always find me on Twitter and Instagram at, C-B-L-E-E_C-B-L-E-E, because it’s double the trouble. My website is cb-lee.com, and then you can find more links to other ways you can connect with me. Usually Twitter and Instagram, where you can find me the most – that’s where you can connect with me. So in my website, it has like fun stuff. I try to update it with writing resources and my upcoming events. And I also have a newsletter, which will have some special tidbits probably like the deleted scenes, which is the very first place I offered the “Not Your Villain” extra scenes. Jeff: Pretty cool. Well, C.B., thank you so much for hanging out with us. We wish you all the success with “Not Your Backup” when it comes out on June 4th. C.B.: Thank you so much for having me. And I really appreciate it. I’m so excited. And I hope everyone enjoys the book. Book Reviews Here’s the text of this week’s book reviews: A Lover’s Game by Max Walker, narrated by Greg Boudreaux. Reviewed by Jeff I was so happy that this fourth book in Max’s Stonewall Investigations series released in audio just a couple of weeks ago. I’ve been eagerly awaiting the final installment of the series and I was not disappointed. The series has been working up to the final showdown between private investigator Zane Holden and the Unicorn Killer. The Unicorn has loomed large over the series–a serial killer that terrorizes the gay community in NYC. The killer’s gone after partnered gay men and Zane’s husband was aomng the victims. In the first book we find out the Unicorn’s returned and now in the fourth one Zane’s obsessed with bringing the reign of terror to an end. At the same time, Zane is preparing for his wedding to Enzo, the defense attorney who captured his heart in that first book. Unfortunately, Zane is so occupied with the case, he’s missing things, like cake testing and venue selection, and he hasn’t told Enzo that he’s even back on it. Zane thinks he’s protecting Enzo by keeping his activities a secret, but Enzo feels it puts him more in danger not knowing. And boy does everything hurtle towards a massive, satisfying conclusion. Max had me super stressed in this installment. He always does a great job of creating suspense. Here though I suspected everything. Is the Uber driver a killer? Is that bottle of wine spiked with something? What does it mean that someone looked at them on the street? Is the person providing information or misinformation? I suspected everything and also never figured out who the Unicorn was ahead of the reveal. I love that! While Zane and Enzo have been featured in the middle two books of the series, it was great to see them returning to the spotlight. Their dynamic as the move towards their wedding date was wonderful to watch. The quiet, sexy moments they share along with their wedding planning and time they spend with Enzo’s family shows their strong relationship and amazing friends. And, man, are there some super sexy times in this book. There’s always steamy scenes in this series, but these were the best yet. Max contrasts these happy times with how they handle the increasing threats–they want to be strong for each other and also do what’s necessary to keep the other safe. They find it’s hard to maintain the balance and that only increases the tension. I both hated and loved what Max put them through because it was so realistic. Is it weird to say that I liked the terrible choices were made? Despite being great at their jobs, Zane and Enzo sometimes do things that are terrible choices and what makes those so good in the story is that I could see myself doing the same thing. These two are flawed and make bad decisions like anyone can. It makes them human. It makes you scream at them to not do something. It makes you cheer when it all works out too. Kudos to Greg Boudreaux. He’s done a great job with this series overall but I have to shoutout his work voicing the Unicorn. It’s a creep, calm yet evil voice that made me shudder. The spin off for Stonewall Investigations Miami is set up here too. That first book, Bad Idea, just released last week and I can’t wait to pick it up as soon as there’s an audio version.

Married People Podcast
MP 071: What can the Enneagram tell me about my marriage? (with Beth & Jeff McCord)

Married People Podcast

Play Episode Listen Later May 15, 2019 46:26


  This week, we’re excited to be focusing on a subject that we’ve mentioned quite a few times already on this podcast—the Enneagram. For those of you who haven’t been swept up in the Enneagram mania yet, it’s sort of like a personality test. But it actually goes deeper than that to show the motivations behind our actions and thoughts. To help us with this complex topic, we brought in a couple who knows the Enneagram well—Beth and Jeff McCord. Beth is the creator of Your Enneagram Coach, which helps introduce people to the Enneagram and connect them with a personal Enneagram coach. Her husband, Jeff, is the executive pastor at Southpointe Community Church in Nashville, Tennessee. Beth and Jeff have been married for over 20 years have two adult children. Interview Can you tell us about yourselves and how you got into the Enneagram? We’ve been married almost 24 years and have two kids in college. We started learning about the Enneagram in the early 2000’s. We were in the stage of life with little kids when you’re trying to live like Christ, but find your internal world derailing all the time. I wanted to be at my healthiest but was struggling. That’s when someone showed us the Enneagram and it helped me understand why I veer off course and what my healthiest was. We felt whatever tool we found had to be paired with the gospel. The Enneagram will tell you why you think, feel and behave in particular ways. Can you explain what the Enneagram is? The Enneagram has been around for thousands of years and used in lots of different sectors. It’s become more modernized with psychology since the 70’s and we’ve looked at how the tool can help illuminate our heart condition. I want people to realize that the Enneagram is a great tool, but the gospel is what transforms us. We’re always safe and secure in our identity in Christ, but sometimes we have times we’re not doing well. We want it to be a wakeup call to the patterns that aren’t best for or your relationships. Jeff, can you tell us about your role? I’m an executive pastor. I’ve been pastoring in the local church since 2002. When we started using the Enneagram as a couple, we started in the local church at our dining room table. Even back then, we would bring the insight of the Enneagram and apply the gospel to see hearts change. My beautiful bride is a type 9, who had a tendency to hide her talents, but she brought the depth to that conversation. How do your two Enneagram types interact? Jeff: Let’s start by talking about my love for ice—I love ice and cold drinks. Beth: We have a great ice story. I’m a 9 and our thought process is that we don’t matter—our voice doesn’t matter, our presence doesn’t matter. It’s a common theme for 9s. Jeff: I’m a type 6 and there’s a roaring committee of thoughts in my head all the time. Beth: For the 9, who feels like their presence doesn’t matter, when I do talk I want his full attention. When he looks at his phone what happens instantly in my mind is, “see, my voice doesn’t matter”. If I’m healthy I can navigate around that. Jeff: I often get a little impatient with her pace—9s meander in storytelling. So as she was telling a story one day, I decided to take a little break while listening. Beth: Jeff got up to get some water behind me and has a 32oz glass. The fridge is crushing ice into his Yeti and I’m still talking. He is getting his ice and I’m thinking: “see, he doesn’t want to listen to me”. Ordinarily I would shut down and stop talking and we start this dance and start to spiral. But that’s when the Holy Spirit came in and he’s told me time and time again that he is listening. So while he was still crushing ice, I’m thinking” “He loves me, we’re best friends, he’s just getting ice and it doesn’t have to spiral out of control”. And we’re able to move forward. Jeff: There are four things we hear from people as we talk to them about their dances: I didn’t understand my spouse and now I have clarity It’s compassion – I’m so sorry that’s what you’re feeling I understand our dance and our dynamics The Enneagram gives us great language to able to talk about it How does the Enneagram reveal both people’s strengths and weaknesses? The Enneagram is going to tell you like it is—blunt and straightforward. You’re going to see some things that are really hard to swallow. But if you’re able to recognize that Christ has already taken care of things, you can see these trouble spots and not be overcome with self-condemnation, fear and shame. You have to own it and ask for forgiveness but you’re able to do that because you’re already free. What are the benefits and challenges of each of your types? Jeff: There’s a book out there that talks about how we marry people who bring out a good we desire for ourselves. There’s something about Beth’s peacefulness, steadiness and sincerity that is very safe to me. Beth attunes to me in a way that brings peace and rest to my heart. I appreciate her strength, resolve, quiet perseveres and the attention she gives to me and our home. I want to be better at that because I’m not naturally at rest. Beth: The strengths that Jeff brings is absolute commitment and loyalty, hard work and being able to see what I miss. When you use this in marriage, your spouse cannot come through for you in the way you long for but Christ did. Everything has to hinge on Christ or you’ll be back in the ditch again. What have you learned about Jeff being a 6? Beth: 6s really need safety and security. They’re not all the same—my mom is a 6 and wants physical security (food, money, health). Jeff is more relational security. When we are in an argument and I withdraw, that is only saying to him “abandonment”. I’m not intending to do that to him. When I feel myself starting to check out I can say to him, “I know this is important, but I need some time to settle down and process”. That’s so much more helpful to me and communicates to him that I know safety and security are important to him. Jeff: The work for me is to believe it—that after 15 or 30 minutes she’s going to re-engage. And even if she doesn’t, I’m still secure in my relationship with Christ. It ends up creating a very hospitable dance between us. What resources do you have available for people who want to learn more? Jeff: This is going to be a big year for us. We’ve written a book called, Becoming Us: Using the Enneagram to Create a Thriving Gospel-Centered Marriage. It’s really the foundation to a number of other resources. We’re going to be releasing a new marriage assessment in June to help couples get an introduction to their dance and what they think about their dance and that’s going to be free. We’re also going to be doing date night events throughout the United States beginning in June. Those are going to be fantastic opportunities where we’re going to introduce the idea of the dance. Beth: We are developing 45 marriage courses. The reason there’s 45 is because there are 45 couple types. So there’s a course for you and your spouse and we’re going to specifically talk about your dance and get into your kitchen. Not only will we show you the negative parts of your dance but also the redeeming factors of Christ and what He brings. That will be coming out in June. We also have a free assessment if you don’t know your type. And then we also have Discovering You which is a cliff notes version of the Enneagram if you’re new to the Enneagram. If you know your type you can do Exploring You where I do pre-recorded coaching sessions where I break down your personality type into bite sized lessons. We’ll have 9 more books coming out in December—one on each of the types. Your One Simple Thing this week Get your Becoming Us marriage course and get insight into yourself and your spouse. Show Closing Thanks for joining us for the Married People Podcast. We hope you’ll subscribe to the podcast on iTunes and leave a review—they help us make the podcast better. We want to hear from you! Share with us on Facebook, Instagram or our site.  If you want more resources, check out the MarriedPeople membership or Ted’s book Your Best Us.  You can find more from Beth and Jeff at Your Enneagram Coach.

Big Gay Fiction Podcast
Ep 187: "Red, White & Royal Blue" with Casey McQuiston

Big Gay Fiction Podcast

Play Episode Listen Later May 6, 2019 57:38


April was our most downloaded month ever. Thank you to our listeners! Jeff and Will discuss their upcoming travel schedule. They will be at the Romance Writers of America national conference, Podcast Movement, Dreamspinner’s Author Conference and GayRomLit. Jeff reviews Top Secret by Sarina Bowen & Elle Kennedy and Red, White & Royal Blue by Casey McQuiston. Jeff interviews Casey about her debut novel. They talk about the inspiration for Red, White & Royal Blue and the impact the 2016 election had on the story.  In addition, they discuss the recently announced movie adaptation, what got Casey into writing romance and what she’s working on next. Complete shownotes for episode 187 along with a transcript of the interview are at BigGayFictionPodcast.com. Here’s the text of this week’s book reviews: Top Secret by Sarina Bowen and Elle Kennedy. Reviewed by Jeff. I’ve been a huge fan of Sarina Bowen’s for some years now. Her Understatement of the Year is among my favorite books of all time and I also love Him and Us which were co-written with Elle Kennedy. Sarina and Elle are back with their first m/m romance in three years with Top Secret. They’ve written an extremely satisfying enemies to lovers romance that sizzles but also has some extremely sweet parts as well. Keaton’s a college junior from a privileged family whose been with his girlfriend since high school. For her birthday, she announces that she wants a threesome. After brief thought Keaton agrees. He lives in a frat house where one of his frat brothers is Luke. Luke basically keeps to himself barely gets along with anyone in the house. Luke’s a townie, going to school on an academic scholarship and as a despicable mom and older brother who only want to take advantage of him. He lives in the frat because it’s cheaper than a dorm and he’s running for president because that means free room. Keaton looks to an app to help find the right guy for this birthday present. He signs in as LobsterShorts and soon ends up talking to SinnerThree. Once SinnerThree finds out it’s Keaton’s first three way, he wants to make sure Keaton would be cool with him in the mix and to start considering what the rules would be. SinnerThree even gives sexy homework. This gets Keaton thinking because he’s buried his feelings about guys for a long time. Of course, SinnerThree is Luke, who lives right across the hall. What makes this book work so extraordinarily well is the two sides of Luke and Keaton we see between their public personas and their chats on the app. Luke wants to escape the town and the life he’s known growing up. He strives to excel in school so he can get the high-paying job and never be reliant on anybody again. Meanwhile, Keaton knows he’s got all the privilege but he also chafes at the expectations that his family and friends put on him and he keeps all that to himself because it’s what he’s supposed to do. When they’re chatting as SinnerThree and LobsterShorts the conversation occasionally drifts from figuring out what Keaton’s boundaries actually are to discussing their realities and what they want out of life. Their emotional shields fall away. The way Sarina and Elle transition from sexy to sweet and back again is perfect. Of course, the night finally comes and Keaton and Luke find out they’ve been talking for weeks. The night doesn’t go as planned, but they don’t stop exploring their sexual feelings or sharing closely guarded secrets. Both guys have great growth as Keaton comes into his own, embracing his true sexuality and the career he wants after college. I’m particularly happy this wasn’t a gay-for-you story but rather about a young man figuring out who he is. The battle for Luke is about his sexuality at all–he’s proudly bisexual. He can’t fathom that anyone could love him because of his terrible family. He’s been so battered by them, that he’s hesitant to accept help from anyone because it would surely come with strings. Thankfully, even though Keaton bungles quite a few things with Luke, he also works to make it right. It’s a credit to Sarina and Elle that they have created such fully fleshed out characters who evolve so much through the story. I was invested in so much more than the romance because I wanted these guys to find their way too. The motley crew of frat brothers also brought some great depth to the story as they were a mix of those who were genuinely kind and others were douchey. The parents were also an interesting contrast between Luke’s trailer trash and Keaton’s very well-to-do. Keaton’s father and mother are far more than meets the eye too. I don’t want to get into spoiler territory, but I have to call out them out too. It’s an example of Sarina and Elle creating multi-dimensional characters. Another extraordinary part of the story for me was how the black moment played out. A lot of stuff goes down and there were plenty of opportunities to cheapen the story. The way the last twenty percent of the book played was perfect even while it provided me with quite a few moments of stress. We’re headed into summer and this book is perfect for vacation reading. I highly recommend Top Secret by Sarina Bowen and Elle Kennedy. Red, White & Royal Blue by Casey McQuiston. Reviewed by Jeff I knew this book would be exactly right for me. I have a thing for the royal trope and the idea of an American first son and a British prince getting together made this a must read. What I didn’t expect was how Casey McQuiston elevated the material putting this enemies to lovers romance on the list of my all time favorites. Alex Claremont-Diaz is the first son. Henry is the prince. They have secretly crushed on each other for years. They developed an enemies vibe at the Rio Olympics when they had a less than good encounter, especially from Alex’s point of view. Move forward to today and a near international incident set off by the two at a royal wedding. As part of PR disaster control, a story is created that Henry and Alex are actually the best of friends. After some forced outings to appease the press they start talking to each other more and get past their public personas. One of the things that makes this story works so well is Casey has created an alternate history that many of us would like to see. Claremont took office from Obama so the Trump nightmare never happened. And it’s wonderful that her son is Mexican-American given the current hate filled climate around immigrants. There’s even a couple of lines in the book about how it’s not lost on Alex that there are some people who hate that a Mexican-American took the job of first son. Alex and Henry talk a lot about the lives they want. They’re both expected to meet family obligations and be leaders for their countries–it’s not really what they want though. The texts, emails and phone calls as Alex and Henry reveal more and more of themselves are absolutely priceless. At times funny and others heartbreakingly honest, they talk about how they feel trapped. As the first sparks of romance blossom between them their enemy side is quite fiery as they have rage filled kisses before succumbing to the fact that this is something that they both desperately want. The back-and-forth between sweet romance and the slightly angry romance enhanced the story as they fight against their feelings. The reality stays firmly rooted throughout the story and I loved that. Sometimes the royal trope, as much as I enjoy it, is far more fantasy than reality. It’s part of what makes the trope so good–that chancea prince might be your neighbor. This world could exist–a prince and a member of the first family. Casey gives them all the trappings, including secret rendezvous’s that are partially orchestrated by their security teams. Of course, as must happen the romance is horribly revealed and damages them both. The guys had to really work for the happy in this book, which makes the ending so sweetly satisfying. There were a lot of ways the end could’ve played out, but I can’t imagine one that would’ve been more perfect than what Casey gives us. I haven’t felt as overall thrilled by a book as I have by Red White & Royal Blue in quite some time. It reminded me of reading Becky Albertalli’s Simon vs. the Homo Sapiens Agenda and the wonder of such rich, vivid characters in a charming story that deserves to be real. Casey captured not only an America that I desperately want to live in but a romance that was everything that I ever wanted. I could gush on and on about this book, and will more in the upcoming interview. For now I’ll leave this by saying that I beyond highly recommend Casey McQuiston’s Red White & Royal Blue. This interview transcript is sponsored by Dreamspinner PressDreamspinner Press is proud to publish Hank Edwards and Deanna Wadsworth’s new book Murder Most Lovely. Check it out, and all the new mystery and suspense titles from your favorite authors like Amy Lane, KC Wells, Tara Lain, and Rhys Ford, just to name a few, and find a new favorite author while you’re at it. Go to dreamspinnerpress.com for everything you want in gay romance. Jeff: Casey, welcome to the podcast. Thanks so much for joining us. Casey: Thank you so much for having me. I’m very excited. Jeff: So, before we got to this segment, I spent a ton of time just going over “Red, White & Royal Blue” as being one of the best things I’ve read this year and one of my top books maybe in the “ever” category because it’s everything I needed in a romance with the prince trope and essentially royalty in the U.S. with the first son. And, I mean, Alex and Henry are so awesome. Tell us what your inspiration was behind this book? Casey: Yeah. So I first started…actually, it’s weird. A couple of days ago, I was going through my Timehop which shows you, you know, what you tweeted two, three, four years ago, and I realized that, a few days ago, which is April 13th, was the day that I tweeted, “Hey, I just had this idea for a book.” And it took me back to that moment of the exact lightning strike moment when I knew what I wanted to write. And this is a question we’ll get into later, but it was one of many attempts at a book I had started and none of them had really taken hold of me like this one did. So it was early 2016, I was obsessively following the presidential election, which, you know, we all were at the time with a lot of optimism. And, at the same time, I was reading two books. I was reading “The Royal We,” which is by Heather Morgan and Jessica Cocks, and it’s basically almost a novelization of Will and Kate with a bunch of different things changed about it. So I was reading that. And I was also reading a super dry Carl Bernstein Hillary Clinton biography, which was a fun little juxtaposition. And I had this idea in my head of I want to do… I’ve seen so many sub-versions of prince charming trope, but I feel, as a queer person, I’ve never seen one that seems the most obvious to me, which is, you know, what if, he wasn’t the perfect, going to produce a million heirs, prince, you know. And then on the other side, I was I loved “Chasing Liberty” when I was growing up and “My Date with the President’s Daughter” and I was really into the idea of a rom-com starring this rebellious first kid, and I couldn’t decide which one I wanted to do first, and I was like, “Wait a minute. If I put them both in the same story, I don’t have to pick.” So, honestly, it was me being indecisive that led to that decision. And on a wider scale, a bigger scope, I just really was looking for the perfect, fun escapist tropey rom-com that was so undeniably fun that the fact that it was also queer wouldn’t keep it out of the mainstream, you know, because a big thing that I want to do as an author and as a queer person is push those stories into the mainstream and be like, hey, you know, it’s kind of what they say in “Love, Simon,” everybody deserves to have a great love story, you know. And so everybody deserves to have a big shiny tropey, fun rom-com, you know. So, yeah, that was kind of where it came from for me. Jeff: And there is so much rom-com-y goodness floating in this book. I think you pulled a little bit from everything. Without giving spoilers, because there could be some depending on what you pick for this, what are the rom-com moments that just sticks out for you as one of your favorites among all of them? Casey: Wow, that’s a good question. I have pulled so many tropes from so many of my different favorite rom-coms. But there is this one thing that I love in every rom-com which is the gratuitous karaoke moment, which is actually if you ever watch “Crazy Ex-Girlfriend,” it’s a song on “Crazy Ex-Girlfriend” like “Shake Me Up.” Okay, yeah, that. So it’s like “27 Dresses” does it, and “10 Things I Hate About You” does it where it’s like somebody gets up and sings a song in front of a bunch people for no reason. And it’s like, “No, this doesn’t happen in real life, but it’s super fun.” And so writing the whole karaoke scene, which I don’t think is a spoiler, that was so much fun for me because I was, you know, as musical theater kid in high school, we all were, and so I got to be so indulgent with that, and it was such a blast. I loved it. Jeff: I think you picked a great one right there because you’re right, there is that moment. There’s even that movie, which of course I’m blanking out on right now, that was like…it was a Rebel Wilson movie earlier, I think this year, that she’s, like, there’s always the karaoke moment that she ends up trapped in the karaoke moment in her own little thing. Casey: I love the karaoke moment. Jeff: That says a lot about people, the songs they pick. Casey: It does. It’s character shorthand for sure. Yeah. Like when Bea gets up and sings “Call Me” by Blondie in the book I’m like, “This is what she’s about, you know.” Jeff: Yeah. There have been so many accolades on this book before it even got published. I mean, we were reading about it, I think in “Blush” almost two months ago now. What’s resonating so much with all these pre-readers? Casey: God, you know, I mean, just to start off, I’ve been, completely blown away by the response to it. When I wrote this book I was like, “This is so niche.” It’s a queer political rom-com with royal elements. And also we talk about gerrymandering in it, and I was like, “This is so niche,” no one’s gonna care, no one’s going to publish it. I was like, “I’m going to try and query this for a month, and then I’m just going to self-pub,” you know. And the fact that people have engaged with it so much and that it has gotten, I think three-star reviews now which is just blowing my mind completely, so beyond grateful for those. It’s just been so staggering and incredible. But, I don’t know, I think that right now the world is really depressing. We live in a world right now that is at times literally on fire, you know. And it is so important to have these little oases or moments of respite and little escapist things because when I first started writing this book, I’m so neck deep in the news cycle and I really couldn’t finish it until I pulled out of it because I realized that wasn’t what it needed to be. It didn’t need to be mired in all of the negativity and all of the darkness that was going on in the world. It needed to be this spark of hope, you know, that would kind of feel… I think about when Obama won re-election in 2012, and I was with my friends. I was in college at the time and we went out on the balcony, and popped a bottle of $60 French champagne, and I think about how I felt in that moment and I was like, “I want this book to feel like that moment,” you know. And I think that a lot of people have been missing that feeling. I think that we have so few things, especially when we look at the political sphere right now, to be excited about and to be hopeful about. And I think that we’re all just nostalgic almost for when we had hope. And I think that what this book does is it lives in the space of being here and now and still having hope, you know, and I think that’s really resonating with people. And then I also think that people are just excited to see…we’re seeing it with Helen Hoang and Jasmine Guillory who are writing romances that are integrating, you know, neurodiverse characters and just racially diverse characters. I think a lot of people are tired of seeing, you know, the same two straight white cisgender, neurotypical people falling in love, you know. And so I think that people are hungry for something that’s different in rom-com that can show that different types of people can have that same big, huge, escapist magical love story. So that’s kind of where I think it comes from. Jeff: You noted that you started writing this in 2016, essentially before the election happened. Do you think you would have written the same book had Hillary won? Casey: That’s a great question. And the book I had planned to write before the election went the way that it did was a different book. There were so many threads that I ended up dropping. I, at one point, had…and this was before anything about Russia had come up. I, at one, point had… a Russian double agent involved in the campaign and I was like, “This is too unrealistic. No one’s going to buy this. I’m cutting this,” you know. And now I’m like, “God…” But, yeah. I mean, it definitely…I think it would have been more lampooning the Democratic Party…not that I have anything against the Democratic Party as someone who is registered as Democrat, but it would have been more of “Veep” style, you know, that we’re all on the same side here, so we’re going to send each other up kind of thing. And instead it’s still very tongue in cheek, and it still has that “Veep” side to it, but it needed to have more of…. it needed to be less cynical, basically, you know, because I don’t think that we can really afford a lot of cynicism right now beyond what, you know, roasting the President on Twitter is cynical, I guess. But, yeah, I think that there are certain things that happen in the plot that never probably would have been explored if the results of the election had gone differently because I don’t think I would have felt as much of an urgency to put those into the story. So, yeah, it definitely would have been different. It definitely would have been a lot different. But the President was always the same. President Claremont was the same character from the moment I came up with the idea for the book. She’s like Tami Taylor, from “Friday Night Lights” meets Wendy Davis, the politician from Texas, meets a tiny bit of Selina Meyer from “Veep” and probably every strong female in my life, you know. So, yeah, long story short, yes, it would have been different.  Jeff: One of the things I like about it so much, and you touched on this a little bit, is that it’s not two white guys getting together because Alex is Mexican-American. And certainly given how things have played out under the current administration, having that element in the White House as first son, it says a lot. And Alex comments on this, you know, periodically as he’s kind of going through things and how that aspect of his heritage plays into things. Did you have that set early on or did that kind of manifest as we saw how immigrants were being treated post-election and even during the election cycle for that matter? Casey: Sure. Well, the minute…it kind of was, like, the plot itself that informed what Alex would be because, like I said, the first character I came up with was the president and everything kind of formed around her. And I’m from Louisiana, and I have this huge chip on my shoulder about democrats, and liberal people, and progressive people in red states because I was one for so long. I live in a purple-y state now. But, you know, I feel they’re so often written off and discredited, and I can probably count on one hand the number of actual presidential candidates who came and campaigned in my hometown, which is the capital of Louisiana. And people just don’t see anything worth investing in. So I wanted to do a southern Democrat. I didn’t think that a Louisiana Democrat was that realistic, so I did a Texas Democrat. And from the minute I knew she was from Texas, I was like, “Well, it would make sense for her to have married a Mexican man, or a, you know, a first or second generation Mexican man.” And it just kind of went from there where I was, like, “You know, I really do like that idea of that.” I spent so much time in Texas, I know so many people from Texas, I know so many Tejanos and people… it just made sense to me. And then, you know, the more that the rhetoric kind of got really vitriolic about Mexican immigrants around the election, I was like, “Yeah, fuck you. Actually, I am gonna put some Mexican people in the White House.” Yeah, that’s what’s gonna happen. I did as much as I could with it. Obviously, I’m white, and I did a ton of research, I talked to a ton of Mexican friends of mine, and especially Tejano first or second generation people. And then what I’m really excited about with the movie is that we have the opportunity to bring in more people on the creative side who are Latino who can offer more of that voice, that can go farther than I could go with it and that can explore more things with it. So, yeah. It just felt really natural to me, he’s from Texas, of course, he could be half Mexican. That’s just so typical there. So, yeah, it was a very natural progression of the character for me. Jeff: And in a weird twist, I’m actually interviewing you from Dallas. Casey: Yes, I know. I was just thinking about it. That’s so funny. Yeah. I feel like that’s appropriate. I feel the stars aligned to have you interview me from Texas. Jeff: And finish the book while I’m in Texas. It was kind of crazy. Casey: Yeah. That’d be so appropriate. I’m really excited because my second tour stop is in Austin, and I’m so excited. I haven’t been to Austin, like, a year or two, and it’s just feels so right to go back with this book. So I’m so excited. Jeff: There is a ton of history in this book. Henry goes into a lot of history of the monarchy. And one of the things I loved is in the emails that Alex and Henry are trading, they end up and quote a lot of literature or other letters of historical people. How much of that was in your head, and how much was “I need to go off and do a ton of research?” Casey: So, for me, a lot of…when I was talking about… there’s parts where after Alex starts figuring stuff out, he starts, like, develops independent research of, like, let me remediate myself on queer American history, and reconnect with it, which I think is something that a lot of queer people in their 20s do. Especially for me when I was 20, 25, and then I started to figure myself out, I was like, “Wow, I need to know the first thing about my own community.” And so I went back and really read a lot and educated myself. And so a lot of the American history, American queer history was stuff I was already familiar with because that’s something that I felt was my responsibility to learn in the past. But, yeah, I definitely didn’t know a lot about queer British history at all. And so that was a lot of reading for me, a lot of, you know, finding history threads on Twitter, and then okay, I’m gonna go look up all these stories individually, and find out what’s the real truth, because things get twisted online. But, yeah. The letters kind of started with…and this is gonna date when I started writing this, but I was really coming off the “Hamilton” high, you know, which I think we all were in early 2016. It was like, “Oh, man, I’ve been mainlining Alexander Hamilton history for six months, you know.” And, you know, I was really interested… I love all of Hamilton’s love letters with Eliza, but there was also his letters with Florence that were really fascinating to me, and I had started looking into that and that was how I found this book called “My Dear Boy” by Rictor Norton. And I found that because I was researching the Hamilton Lawrence letters, and that was where I found a lot of the letters that are featured in the emails. And then I also was looking into Virginia Woolf, and Eleanor Roosevelt, and all those figures from history who also have a lot of archive letters that are very interesting. And, yeah, honestly, it was almost…I had a blast with it because it was just a queer history, like Easter egg hunt. And, you know, I intentionally did that in the book because I pictured this book…I pictured it being something that a lot of people at different points in their journey with queerness would read, and I would want…let’s say some 19-year old who’s just figuring things out, and they don’t really know anything about queer history, I’m like, “Well, here’s the name of something that you should go look up.” “Here is ‘Paris Is Burning,’ go watch it,” you know, kind of thing. And so it was, it’s really, a bunch of sneaky history lessons. I’m a nerd, and I was like, “You should know this, too.” But, yeah, I had a blast doing that. And then just research, in general, was just so much fun. I spent so much time poring through the royal collection archives online, just for throwaway jokes and stuff. I was a journalist for six years before I quit to do this full time. And so, yeah, I’m a huge nerd and I love historical context for everything because that’s just what I’ve been wired to do for so long. So, yeah, that’s kind of where it all comes from for me. Jeff: And my musical theater geek self loves that “Hamilton” had a play in that because I kind of felt that I was reading some of it’s like, “This seems very ‘Hamilton’ in some ways that they’re using this.” Casey: I battled with myself over whether “Hamilton” was a thing that existed in this universe, and if I should mention it in the book, and I was like, “I’m not gonna,” because it’s still so fresh and I feel it’s gonna date the book a lot. But it’s definitely, like, there’s this undercurrent of we’re doing colonial rap battles under the text, you know. Jeff: That’s one of the things I like about this so much is that it is current revisionist history, you know, because, I mean, most of it, and this doesn’t get to a spoiler, most of it is leading into the 2020 election, with Claremont being President in the here and now and having succeeded from Obama. Yeah, its current revisionist history. It’s very interesting how that plays itself out. Now, I think we mentioned that this is your first book that’s out there in the world. What got you into writing romance and specifically m/m romance? Casey: I mean, I have always consumed all types of media and this is my one sacrilegious answer that I give in interviews which is I’m really more into movies and TV than I am into books, and that is the most media that I consume. It’s not what I write, I’m not a screenwriter, I’m not good at that type of writing, but it is where I pull most of my influences from, and what I consumed the most as a kid, I mean, unless you count “Harry Potter,” which everybody read… Jeff: Which does very much exist in the “Red, White & Royal Blue” universe, which I also love. Casey: Oh, yeah, very much so. But what I engaged with about all of those things was the relationships in them. I’ve watched “Lost” and I was like, “I don’t care about Dharma, or the clues or what this island actually means to the polar bear,” I was like, “I care about that everybody’s gonna end up together that I want to end up together in the end, you know,” and it was always like that with everything I watched. I’ve watched “Buffy,” and it was always about that for me. It was like, “This is cool, mythology is cool, whatever, but, like, Spike,” you know. And it really that was just what grabbed me, and so I knew that was what I was always gonna wanna write. And I tried to write other genres. Every other book I tried to start writing was young adult, magical realism, or young adult fantasy, which is clearly not my genre. And I tried a bunch of different false starts in those genres, and it didn’t pan out for me. And this was, like I said, the first time, I had an idea that completely grabbed me. And I think, like I said earlier, I gravitate to writing queer fiction for the same reason that straight people gravitate to writing straight fiction which is that I’m a queer person, and it’s my experience, it’s what I know. I didn’t really come into this book with an idea of what the gender should be more than what the story would be and it formed around that because I didn’t think that the story would take on all of the same qualities. If it was two women, you know, I thought that it would be a little different tone. I felt if it was two women there’d be a porn parody within 15 minutes of it coming out, you know. And so it’s just, there’s just different ways that lesbian couples and gay men couples are perceived by the world I felt, and for this story it made more sense with two men, and I also wanted to do that prince charming trope sub-version. And so it just kind of told me what it wanted to be. But my next book is…it’s about two women, and it’s a completely different story. And so, yeah, I really…honestly, it’s just me trying to make queer rom-coms a mainstream thing more than anything else. Jeff: More power to you. And, so far, it looks like you’re doing a great job with that. Casey: Thank you. Thank you so much. Jeff: This question may not have a good answer based on what you just told us about your kind of TV and movie thing, but are there authors who influence you? Casey: Well, yeah, I mean there are definitely authors that influence me. I loved Oscar Wilde growing up which is, you know, I was 15, my sisters, I remember being at my sister’s college graduation with highlighter and sticky tabs going through “The Importance of Being Earnest.” So, yeah, I did my term paper in high school on “The Picture of Dorian Gray,” and I was like, “This is straight behavior.” But, yeah, Oscar Wilde was a huge influence on me. The “Harry Potter” books, yes, of course, they influenced me. I read a lot of non-fiction and a lot of memoirs actually because I love the voice of them, and I think that’s what helps me to have a good narrative voice. So I love Carrie Fisher’s writings, I love…Nora Ephron’s memoirs are all incredible, Mary Karr. Let’s see, what else. I’m looking at my bookshelf right now. What else do I read? Jane Austen, obviously, the classics of romance, you know. And then more recently, my favorite author right now is Taylor Jenkins Reid. “The Seven Husbands of Evelyn Hugo” is my favorite book I’ve read in the past couple years and definitely has earned a spot on my all-time faves shelf. And so that’s definitely… And I loved how she does a lot of…she does a lot of what we call in journalism alternate story formats, so epistolary style things that are threaded into the book, which is something that obviously I really love too. And then yeah, that’s…I mean, I read a lot…at least I read a lot of non-fictions like Rebecca Traister and Roxane Gay, those are those are all my faves. But then I pull from a lot of a lot of TV and movies. The biggest influences on this were “Veep,” “Parks and Rec.” There is this web series called “The Gay and Wondrous Life of Caleb Gallo” that I love, and it’s so millennial absurdity that it really kind of like… there’s a shout out to it in the book because they play the song, “Loco In Acapulco” by The Four Tops in that show, and I put that in the book. Yeah. So I’m kind of all over the place. I have a lot of influences and a lot of things that kind of all feed into what comes out of my brain. Jeff: So let’s talk movie. You hinted that a little bit ago. Amazon and Greg Berlanti picked this up before, you know, again before it’s even published out to the world. What was your reaction when you first heard that that was a done deal? Casey: Well, I mean, it was so many stages of reaction because what people don’t see behind the scenes is that the process is crazy. It starts with I have a Hollywood agent, and she sends it out to people and then one producer expresses interest and then more producers can if they want to, and then it turns into you’re on the phone with, you know, such and such from whatever huge production company, and it’s like, “I’m not qualified to do this.” And you talk to those and you pick your producer, and that’s how I picked Berlanti. And I was just really excited to even have a chance to work with them because I’ve loved so much of their work, not even just looking at “Love, Simon,” and going back to “Political Animals” which was a six episode series that’s on Netflix. It’s got…honestly, I have to say one of my touchstones too because it’s got Sigourney Weaver is the president in that which is just amazing, and they’ve got Sebastian Stan as one of the president’s kids, and he’s very tortured, and recovering from addiction, and he’s gay, and he’s Sebastian Stan so he’s crying, you know, and very beautiful. But, yeah. So I just knew that he had the range for it and I also knew that based on “Love, Simon” that production company had the chops to get an unapologetically queer rom-com into the mainstream. But also it was on a personal level, I just remember going to see “Love, Simon” in the theater and that was probably a week after I signed my book deal. And I showed up with an entire eight-inch Jimmy John’s sub in my purse because I knew I was going to cry and I like to eat my feelings. So it was literally me alone. I had to drive 15 minutes out of my city because I was living in Louisiana at the time to find a theater that was playing it, and it just me alone in the theater with my sandwich and was just weeping to Jennifer Garner, you know. And I just remember getting in my car and thinking if my book could make people feel half as seen as I just felt by watching that movie, then I will be so, so happy. And so I’d have the chance to do, to kind of pay forward what that feeling was for me to the next round of people, especially queer people, meant so much to me. And then yeah, Amazon, they just care so much about the project. They’re so passionate about it. They want it to, you know, really…they’re actually really invested in diversifying what is in the market, and taking some risks, and doing projects like this. And it’s just so incredibly mind-blowing, and it really doesn’t feel real yet to have people want to invest those kinds of resources in a story that I wrote. More than anything, I’m just so excited about what it could represent and what it could mean to people. I think about like…and not to at all compare the histories of these communities, but I think about “Black Panther” and “Crazy Rich Asians” and what those movies meant to have as big cinematic events geared around a demographic that wasn’t usually catered to by the mainstream, you know, and what it meant for those people and what it represented for the future of storytelling for different groups. And I like the idea of being able to make any kind of similar impact with movie is incredible. And I really hope that we can do that, and I really hope that it can be the beginning of a lot more queer rom-coms, you know. So, yeah, it’s amazing. I’m so, so humbled, and amazed, and really excited to see what comes next with it. Jeff: As you were writing, I think all authors tend to cast their books to some degree. Do you have in mind, and knowing this is totally separate from anything that Amazon and Berlanti might do… Casey: Sure. Sure. Jeff: …do you have in mind who Alex and Henry are, at least in your head, as you were writing if you had to assign them an actor? Casey: Well, it’s so hard because…and this is kind of an indictment of the state of Hollywood and that is slowly beginning to change, but there really aren’t a lot of young Latino actors out there choose from, you know. And so it was… there really wasn’t a definitive Alex in my head because I have looked and looked and it was so hard to find someone that fit. And that’s what’s exciting to me about the movie is I think that we will get a chance to kind of give a star making role to some young unknown Latino actor, which would be amazing, and I would love to do that. And Henry is just very elusive. There’s five million charming white British men, but in my head, he’s just so specific-looking, and I have not yet found anyone that matched him. But the parts that were, I think, easiest for me to assign an actor to were like… I always pictured Daniel Day-Lewis as Richards with like the silver foxy and then, Ellen Claremont in my head from day one has been Connie Briton. And then, I mean, Rafael Luna in my head is Oscar Isaac for sure, you know. Jeff: Oh, yeah. I like that. Casey: There’s some characters that I came up with the character first and then tried to figure out what they looked like, and there are other characters where… with Rafael Luna I was like, “I want a character who looks like Oscar Isaac. What’s he going to be?” you know, and that was kind of how that came to be. But, yeah, I’m really excited casting is going to be so much fun, and I’m very excited about it. And I’m really, really excited about just getting to see, you know, what we can do for some…I think there’s gonna be a lot of unknowns in the lead roles, and that’s going to be amazing because they’re going to be able to really step into and embody those characters without it being distracting, like, “Oh, that’s like so and so. I look at them and all I see is the character they played in ‘Game of Thrones’ or whatever.” Yeah. so I think that’ll be, you know, a fun thing. But, yeah, that’s kind of it for that. Jeff: Do we get to see more of Alex and Henry in the future do you think? Casey: I think that I would not rule that out, and that’s all I can really say about that. Jeff: Sure. Casey: Yeah. I think that that would be amazing. I would love to do that. Jeff: And you mentioned your next book is going to be a female pairing. Casey: Yeah. Yeah. So it’s completely different from this. It’s a much smaller scope of a world. It’s just a girl who moves to New York, and she’s from the south. I don’t think I will…I don’t know if I will ever write a protagonist that’s not from the south because that’s just so deeply ingrained in me and in my voice. But she’s from south, she moves to New York, and she kind of stumbles into this roommate situation where it’s just sort of ragtag band of misfits kind of thing. And she develops this huge crush on this hot chick who’s on her subway commute every day. And it’s kind of based on the idea of that way that you fall in love with something on public transit for like 20 minutes, and then you step off, and it’s like they never existed anywhere other than the train. They’re just there for 20 minutes, and you never see them again. But the thing is that she sees this girl every single time she’s on the train. And there’s kind of a twist as to… I will say there’s some light rom-com-y style time travel shenanigans that happened, and the girl on the train is not exactly everything that she seems. And so the whole book is about their relationship and at the same time trying to figure out what’s going on with this girl. But it is rom-com, and it’s super fun, and, of course, it has a gratuitous karaoke moment. Jeff: Excellent. Casey: Well, it’s more of like there’s a gratuitous karaoke moment, and there’s a gratuitous drag show moment. Yeah, so, range. But I’m really excited it. I’m hoping…I mean, obviously, we haven’t set a date for it yet, but it is super, super personal, book of my heart for me, and I’m really excited for people to read it. Jeff: Fantastic, definitely looking forward to that. Casey: Yeah. Yeah. It’ll be awesome. I’m excited. Jeff: What’s the best way for folks to keep up with you online so they could track your progress with what’s up with Alex and Henry and also the new book and everything else? Casey: Yeah, Twitter for sure. I’m kind of been taking a step back lately because since we announced the movie my notifications have been busted, you know. But, yeah, I’ll definitely be back on more especially during tour. I tweet out playlists and a lot of little trivial information like their birth charts and things like that on there, and then also Instagram. That one is more for like I’m here for this tour date kind of thing. So yeah, those are my big two ones. It’s casey_mcquiston on Twitter, and then casey.mcquiston on Instagram. Jeff: Very cool. Well, we will put the links to all of that in the show notes. Casey: Thank you so much. I appreciate it. Jeff: “Red, White & Royal Blue” comes out on May 14th, and we wish you just continued success because it’s been so much already and look forward to seeing the movie and everything else that comes from it. Casey: Yeah, thank you so much. I’m so, so grateful, and it’s been so much fun. So thank you so much for having me on.

Respect The Grind with Stefan Aarnio
How to FREE yourself with the Dollar Vigilante, Jeff Berwick

Respect The Grind with Stefan Aarnio

Play Episode Listen Later Feb 11, 2019 64:00


He's a libertarian, anarcho-capitalist. He hosts the biggest conference, Anarchapulco, for anarcho-capitalism. He's The Dollar Vigilante. Originally from Canada, hailing from Mexico. Jeff Berwick   Stefan: Ladies and gentlemen, welcome to the show, Respect The Grind, with Stefan Aarnio. This is the show where we interview people who achieve mastery and freedom through discipline. We interview entrepreneurs, athletes, authors, artists, real estate investors, anyone who has achieved mastery and examined what it took to get there. Today on the show, I have a very special guest out of the norm, Jeff Berwick. He's a libertarian, anarcho-capitalist. He hosts the biggest conference, Anarchapulco, for anarcho-capitalism. He's The Dollar Vigilante. Originally from Canada, hailing from Mexico. Jeff, good to have you on the show today. Respect The Grind, my friend. Jeff: It's a pleasure. Thank you. Stefan: Yeah. I really appreciate having a guest like you on the show, because we normally talk about like business and making money, and real estate. A lot of people listening to this show, they want financial freedom for themselves, and they're trying to make money. They're trying to invest, whatever that means. It's cool to have a guy like you on the show. We had a mutual friend of ours, John Sneisen, on the show a little while ago, and I love talking to guys like you, because we end up talking about the money system. We talk about freedom in the free world, free speech, all this kind of stuff. For the people at home who don't know you, Jeff, can you introduce yourself in your own words? Who are you, and why is this a relevant conversation for us to be speaking? Jeff: Sure. Yeah. Actually, it's a totally relevant conversation that's everything that I talk about. I've been doing that for about nine years now, since 2010, with The Dollar Vigilante, which is a anarcho-capitalist financial newsletter talking about how to free yourself. Not just financially, but in every way possible. Of course, for people that don't understand the word, "anarcho" means anarchy, of course, and that's a Greek word which means "an," without, "archy," ruler. I just believe that no one should have a ruler and no one should be a slave. I don't know why that's controversial at all, but that's the government indoctrination camps that people have had for about 12 years that most people have been forced into. Jeff: Then the capitalist part, a lot of people actually misunderstand that word, too. They think that what you have in the U.S. today is capitalism. There is a small part of capitalism still remaining, and that's why the U.S. is still standing, but it's mostly fascism, and crony capitalism, and what I call crapitalism. Really, when I say "capitalism," I just mean free market. I've been, and completely free market, so no government involvement whatsoever, no taxation, no regulation, no central banks, and no fiat currencies and things like that. I've been doing that for about nine years. Jeff: I also do a podcast called Anarchast. I've been doing that for about seven years, and it's grown quite a bit. It's nothing too huge, but it's actually spawned an entire conference now called Anarchapulco, as you mentioned. It's now the world's premier liberty and freedom event held in Acapulco, Mexico, every year. It's coming up in February 14th to 17th. We're expecting about 3,000 people, because the freedom, the idea of it is actually growing, believe it or not. I've been doing all that stuff for about, as I said, about eight or nine years now. Stefan: That's tremendous, Jeff. People like you, I really got to salute a guy like you, because it's not easy. It's not easy going against the grain. It's not easy speaking out about this stuff. It's not a popular table topic at the Thanksgiving table or the Christmas table. I remember when I was telling my family years ago about the money system at like at Christmas dinner or Thanksgiving dinner. Everybody got up and left. The average person doesn't want to hear about how they are enslaved. They don't want to hear about the money system. I remember years ago when I was 21, 22, I read a book called Atlas Shrugged by Ayn Rand, and that's the capitalist bible. The communists have Karl Marx, Das Kapital, and then the capitalists have Ayn Rand's Atlas Shrugged. It's number two most influential book in the United States. Stefan: Can you explain to the people at home, that's where I've first heard the word "libertarian." What's a libertarian? Because people, we're from Canada, or I'm from Canada, in Winnipeg, today, and people hear "libertarian," and they think libertarian is liberal, because it's L-I-B. They don't know the difference between the two words. What's a libertarian? Jeff: That's interesting you're up there in Winterpeg. I'm originally from what I call Deadmonton, so up in Canada. Stefan: Dude, that's the other Winnipeg. I'm giving that a gong. Bang. Just gonged it up. Deadmonton and Winterpeg. Jeff: Yeah, so the word "libertarian," I actually didn't even really know the word until about 15 years ago. It's become quite popular. It's become fairly popular since Ron Paul ran for president in 2008. Really, what the word means is, well, it's pretty simple word, "libertarianism." What it means is that if you're a libertarian, then you hold as one of your highest principles liberty or freedom. If you truly hold that as one of your highest principles, then you should actually be a anarchist, because an anarchist believes in complete freedom. It believes in the freedom of the individual that no one has the right to enslave and say they own another person. Of course, whenever you have a government, you're just born somewhere, and they go, "Well, you're ours now," especially in the U.S., where every baby born today in the U.S. has a quarter of a million U.S. dollars worth of debt and liabilities overhanging it from the government that it's supposed to pay off. Stefan: My God. Jeff: That's absolutely criminal and absolute tyranny and slavery. That's what we have in every country today, as well as Canada and every other country. A true libertarian truly believes that no one should be ruled or owned by anyone without their permission. Of course, there's a lot of people who don't mind being owned or being slaves. They're called statists, and if they want to do that, that's fine. I have no problem. As a libertarian or as an anarchist, do whatever you want. Just don't aggress against me. The only problem is, when they get these governments going, they always seem to include us and seem to think that, "Well, you are now owned by whichever government in whatever area you're in." I just completely disagree with that. Stefan: Yeah. I saw Jordan Peterson. You're probably familiar with Jordan Peterson, right? Jeff: Yeah. Stefan: I saw Jordan Peterson speak in the summer. He was speaking here in Winnipeg, Winterpeg, at the Burton Cummings Theatre, and he said something interesting that I thought something that I think people need to hear more often. He said, "The human race for most of history has lived under tyranny. We used to have monarchies. We used to have feudalism. For most, most of the human race, we've had tyranny, and for very brief times, we've had democracies or republics, but democracy lasts for about 250 years. Then it turns into a tyranny, usually, and then after that, turns back into a monarchy." Why do you think monarchies and tyrannies have existed throughout history, and why does it always seem to consolidate power like that? Why can't we just stay as a democracy or republic all the time? Jeff: Well, first of all, I'm not so sure about human history. I think most things we're told about history are lies, and so really, anything beyond a couple of hundred years ago, I really have doubts about what really happened. I really don't know what happened, but I don't trust anything that we're told by the media, or the governments, or the schools, which are all sort of the same sort of people running those sort of things, but what I understand happened is, a few hundred years ago, there was things like kings and queens, and they were doing that quite a bit. They were going around doing similar things that governments do today and say, "Hey, you were born here, so now you have to pay us a certain percentage of whatever you make," and that sort of a thing. Jeff: Really, a few hundred years ago, and it sort of seems to have happened in France, which is kind of interesting, because there's a bit of an uprising happening there again right now, is a lot of people said, "This is crazy. Just because you're born, this whole idea of kings and queens is so insane." I love the Monty Python, I think it was in the Holy Grail one, where the king's walking around, and he's like, "I'm your king." They're like, "You're who?" He's like, "I was born of this mother," and everyone's like, "What?" He's like, "I found a sword in the lake, and therefore I'm your king." They're like, "You're crazy," but for whatever reason, people kind of fell in line with that. Jeff: Of course, a lot of these monarchies were really tyrannical, and they would really, if you didn't pay them, they would kill you, that sort of a thing. That's very similar to governments. A few hundred years ago, people kind of woke up from it, and they said, "Well, this is stupid." The people who were in control at the time really realized they're going to lose a lot of power, and so they came up with an absolutely ingenious idea. That ingenious idea was democracy, which is a totally heinous, evil system of mob rule. If you have 51% of people decide that legally they can kill the other 49%, then everything's fine. Jeff: It's absolutely insane and just keeps people battling each other, but it's absolutely ingenious, because they've managed, through the government indoctrination camps, and through the media, the mainstream media, television, propaganda programming, to tell people that, "Oh, when you have a democracy, then you are the one who rules yourself, and you get to rule yourself by voting once every four or five years. You get to tick a box," and then some guy goes somewhere, and he makes decisions about what you're going to have to give up and how much they're going to extort you and things like that, but it's absolutely an ingenious idea. It's worked now for a few hundred years, and people have really fallen for it, but they're starting to wake up to it. That's what we're starting to see across the world, really. Jeff: We're starting to see that in France right now. Again, they're starting to realize, "This is absolutely insane that we have people ruling us without our permission, and taking our money, and things like that." Even Donald Trump, in the U.S., was to an extent an awakening of people going, "This system is horrible. We've got this total political class that is totally ruling us and just totally enslaving us." Jeff: What they thought was, "Well, we have democracy, thank God. We have democracy, so we can elect someone else," so they elected a kind of a bit of an outsider, Donald Trump, who's best friends with the Clintons and has been involved with central banks and with the Bush family for decades. His family's been very involved with the Bush family, so he's been very involved in the political class, but he came in as sort of an outsider, and you kind of see a lot of people saying, "Oh, he's an outsider, so he can fix things." He's not an outsider whatsoever. It's another sort of ruse in the whole democracy game, but really, that's what we've got today. Jeff: Now, what we've got at The Dollar Vigilante, I cover how bankrupt all these nation states are, how the central banks are printing money until we're going to be, hit hyperinflation very soon, so we're very near the end of this sort of system of these big nation states, of these big welfare states, warfare states, Big Brother nanny states, where everything is controlled, and regulated, and extorted, and taxed, and that sort of a thing. It's all going bankrupt right now, so even if people didn't wake up to what I'm talking about, we're still going to go through a massive amount of change in the next few years as all these systems all go down because they're all bankrupt. Stefan: Yeah. Well, there's a ... Man, Jeff, you said a mouthful there, man. I don't even know where to start, but I'm going to try to weigh in on what you said there at the end. Now, I wrote a book here called Hard Times Create Strong Men. I'm holding it up here for the camera for the people at home, and the cycles of history, as I understand it, goes like this. Hard times create strong men. Strong men create good times. Good times create weak men. Weak men create hard times. That whole cycle takes about 80 years, and every 80 years, there's a major war, a major crisis, a major reset. 80 years ago was World War II. 80 years before that was American Civil War, and you can trace this back in history. 80 to 100 years, every 80 to 100 years, is a major reset. Now, if you trace that out to the future right now from World War II to now, 2020 is the next "hard times create strong men." Stefan: That's what the book's about is, the men are becoming weak. When men become weak, the backbone of society falls apart. The family falls apart. The churches and the freedom of that falls apart, and what we end up with is some sort of major crisis. Would you say something like that's coming up? Jeff: Oh, absolutely, and I think those cycles are very true. If you just look at anyone who's like a rich kid, so his father most likely worked really hard his entire life and amassed a fairly large fortune, and then the kid comes along, and he's just pampered, and he never does anything. He never learns how to do anything. He never has to learn anything about life, and they usually become idiots, and they actually end up usually wasting or losing most of their money. This is a very natural sort of a cycle that can happen if you're not smart, if, as a father, if you make a lot of money, you don't just give it to your kids. That's absolutely ridiculous. Talk about a really great way to destroy your children, but the big problem with that cycle that you just mentioned that's been going on now for centuries is the government. Jeff: When you get the government involved, it's not just people who are destroying themselves through the cycle of people having to have hard times to get better and actually learn skills and work hard, and then they get soft afterwards, and then their kids get really soft and that sort of thing. That happens all normally, but when you add the government into it, it gets way worse, because then what, that's exactly what we're seeing today in a place like the U.S., which used to be quite capitalist. It has been fully capitalist, really, since its inception. It hasn't been, definitely has not been capitalist since 1913 when they first put in the Federal Reserve and the income tax acts in the same year, which is no coincidence whatsoever. It's been kind of a mix of the socialism, and communism, and fascism since then. Jeff: About what you've seen because of the capitalism, because of the free markets, there was quite a bit of free markets in the U.S. There isn't any more, but there used to be quite a bit. You build up all this wealth, and when you have a government, it always seems to skew to these people going, "Well, now that we have quite a wealthy place, we should be quite giving." Yeah, that's great. Give, but what they're talking about is, the government should steal money from everyone, extort everybody, and then give some of it to some people, which is absolutely heinous, and evil, and destroys everything. Jeff: Even the welfare system destroys the people on welfare, but as I was mentioning, like that whole cycle would happen probably quite normally unless people start to wake up and realize what they're doing, but the fact that we have governments today makes it so much worse, because that's what we're seeing in the U.S. You even see communism is really catching on in the U.S., because you've got all these pampered little kids. They sit there on their MacBook Pro at Starbucks ranting about how evil capitalism is and saying they want communism, and they don't even look up the last 100 years of what communism has brought a lot of places, like the Soviet Union, or Cuba, or Venezuela, and places like that. Jeff: They just, because they're so soft, and they've never really done anything, that's why they call them little snowflakes and things like that, and they become social justice warriors. Really, they're just non-player characters, NPCs, but yeah, the big problem with that whole cycle is government. If we can get government out of the way, then you'd have families destroying themselves over time over and over and not realizing the problems that they keep creating for themselves, but they wouldn't force it all on the rest of us through government. Stefan: Yeah. Wow. I mean, this is some really good stuff, and the snowflake thing, the snowflakism's a reason why I wrote Hard Times, because I had some of these snowflakes in my company. I have a company. I got 13 employees, and these little snowflakes were crying, "Oh, you're mean, and I don't love this. This isn't my dream job, and you make me feel like a piece of shit," and I had people showing up late. Just snowflakism all day, and I said, "Where does this come from? Where does the snowflakism come from?" I started writing this book Hard Times, and it's interesting, because what you said is absolutely true. Stefan: We've had some communist subversion come in from the Cold War into our schools, into our churches, into our militaries, everything, and we got this virus in our brain that thinks that communism is going to save inequality, but in history, communism has never worked. It has never worked once. It ends in massive, massive killing and massive death. There's something like 100 million people slaughtered in the last 100 years with communism. It's something brutal. It's the biggest cause of unnatural death, and every 80 years, we think it's going to work somehow. Somebody somewhere's trying communism. Stefan: As an extension, I've been studying communism, I was watching a show with Stefan Molyneux on Freedomain Radio, and he was talking about how feminism actually spawned out of communism when they started talking about equality, and men and women are equal, and next thing you know, in communist Russia, in 1917, when they switched over to communism, you had all sorts of major problems, where there was one crazy stat was, more babies were aborted than were born. You think about that, it's just a big, crazy, evil system. Why do we get this idea that we think that communism's going to save us from our own poverty? Like why does that idea keep coming in every 80 years into different societies around the world? Jeff: Yeah. That's a good question. I wish I knew the real answer, because it makes no sense. Obviously, these people don't look at actual history. As you pointed out, there's never been one ... It's not like there's been one that really worked out well, and they're like, "Oh, we screwed it up a few times." It's like every single one turns into disaster. It actually makes total sense why, because of human nature. For someone like yourself who's read books by Ayn Rand, you kind of understand the individualist sort of a thing, and that people will always do what's in their best interest. That just makes total and normal sense as human being. When you have this system that comes in and you say, "Okay, the guy at the top decides everything that we're all going to do," you don't keep anything from your work, so that makes it so a lot of people don't really want to work anymore, because why would you work if all the incentives go away to ... Jeff: I don't know about you, but when I do work, it's because I know I'm going to get something from it. I'm not just doing it because for no reason whatsoever. A lot of these people, especially ... Well, what's really happened in the West is that they've really pumped it up in the government indoctrination camps. That's why I say to people, "Get your kids out of the government schools. There's nothing that can be worse than that than having government actually teaching you ... " Not teaching, actually indoctrinating your child for like 12 of its most important years of its building of its sense of self, of its intelligence, of everything. Even Vladimir Lenin, of all people, said, "Give me your child for four years and the seed I plant will never be uprooted." Jeff: It starts a lot there, and then you go home in places like the U.S., or Canada, or a lot of places, and you turn on the television programming, and it's called programming for a reason. You get pro-cops, and pro-presidents, and, "The government saved us today," and turn on the news, which is total fake news. It's just government propaganda, and they're like, "Well, we saved this today," and all that sort of stuff. With the cycles that you're talking about, and we're in the snowflake cycle now of sort of this millennials that have never seen anything hard their whole life. To them, the hard thing they've seen is like when there's a long line at Starbucks or something like that. Stefan: No Wi-Fi on the plane. There's no Wi-Fi on the plane today. Darn. Jeff: Yeah, like that's the hardest times they've seen. Because they've gone through this indoctrination and that they're really, I actually stay away from colleges and universities, because it freaks me out to hang around, like they're all zombies, and they're the stupidest people I've ever met in my life. They're all indoctrinated and programmed. You go there, and half the classes are talking about communism and socialism, so they've got them in this sort of thing, and they're all going out there now. We've seen that ... What's that, there's that U.S. politician, some young girl, is just complete and total moron who's just got selected or elected into Congress. It's called Congress because it's a con game, and it's called the Constitution because that's also a con, and all that sort of stuff. Jeff: You've got those people out there pushing this stuff, and these kids just go out, and they think, they don't know anything better. It's very unfortunate, but that's why it's really important that we continue to push out what we push out, which is more free market stuff. A lot of people do catch on to it. It's not as bad as it seems. The worst place that it really is in the world today is the U.S. They've got everyone ... Not everyone, but most people, they're so indoctrinated, and so brainwashed, and so propagandized, but you go to a lot of other places like Mexico here, and a lot of people are pretty free market. They don't like government and things like that. That's why they make Mexico look so bad on the news. That's on purpose, because it's a lot more free market down here. Stefan: It's amazing. I mean, you moved to Mexico. I have this prediction that Russia right now is a freedom-growing country. They're getting more freedom over there. It's like the 1950s U.S. over there, and then over here, it's like we're a freedom-losing country in Canada and the U.S. It's interesting with, you're talking about the universities being scary. When I get a stack of résumés, and I'm hiring, I throw the ones with degrees in the trash. Yeah, they don't- Jeff: Yeah, me too. Stefan: The people can't think for themselves. I remember I went out with this 18-year-old girl, and she wanted a job, so we went out for lunch, and I said, "Okay, look. What do you want to do?" She goes, "I want to start a social media company." I'm like, "Great. Start it." We're eating lunch. I said, "Great. Start it." She says, "Well, I'm in the business school, and I'm going to get my MBA, and I don't think I can start, because I don't know how," and I said, "Well, go google that. Just start." "Oh, I don't think I know how. I'm not qualified." The school system literally disabled her mind from figuring out how she could just start a social media company. Stefan: I mean, I got some guys running my social media. They're 18, 19 years old, and I just met them at a restaurant. Boom, they're banging out my social media like crazy, doing a great job, but this same girl in the government indoctrination camp, as you say, the universities and the schools, can't think for herself. I also think it's interesting in the colleges and universities right now, the number one read book on economics is Karl Marx. That's just like, that just doesn't make sense. Why don't you tell me a bit, Jeff, why does Karl Marx as the number one economics book not make sense? Jeff: Oh, my God. First of all, he knows nothing about economics. He was a homeless guy who had no money, and he wrote a ... If I was around when he wrote the book, I would have given it a few minutes, or even maybe a few days, maybe even a month or two, of thought, because it sounds really good. Right? Like what is the communist sort of slogan? It is, "Give to-" Stefan: Seize the means of production? Jeff: No, but they have this slogan like, "Someone's needs ... " Stefan: Oh, "To every man's need," or, "To the best of his ability and every man's need," or something like that. Jeff: Something, but basically what it's saying is ... See, that's how stupid it is. I don't even memorize the stupid quote, but basically, it sounds nice. It sounds like, "Yeah, if people can't do things, then you help them." It's like, "Yeah, sounds great," but the way they're talking about is, you have this giant government. They come around. They steal things from people, and they decide who gets your money, essentially, and things like that. Yeah, and it's shocking that ... It's really mostly caught on in the U.S. Like obviously, if you go to the ... You brought up Russia. If you go to Russia, no one wants to read Karl Marx. They'd probably burn that book if they saw it, just because they'd be so angry at it. Jeff: Anyone who's actually lived through communism, a lot of the old Soviet Union, the Eastern Bloc, Poland, and a lot of those places, even Germany to an extent, they still remember a lot of that. That's all you need to know about communism is live through it, and you realize it. That's one thing that I always thought that's funny is, you have all these people like Bernie Sanders and all these people, and they're so pro-communism and socialism and all these sort of things. It's like, have you ever even just gone to Venezuela even for a weekend? Because I was there like a year and a half ago, and it was pretty bad. Jeff: I remember being there about 15 years ago, and it was really nice. In fact, you can look up Venezuela back in the '60s and '70s. It looked just as nice as what you see in the videos of the U.S. People got around in nice cars, looking all nice. Everyone's looking good and happy, and they have lots of food and all that sort of stuff, and now it's just a complete and total disaster, so ... Yeah, you have some people still ... It's mostly in the U.S., though, I have to say [inaudible 00:23:04]. Jeff: I meet a lot of people from the U.S., and they say, "Man, this whole world's going to hell." It's like, actually, it's not too bad. Most of the world is pretty good. It's really the U.S. is like, and Canada is almost just as bad now, and when you go to the universities, as you pointed out, and I do the same thing, I have only hired one university graduate ever, and it turned into the biggest disaster I've ever had. He was actually a producer at CNBC, I hired him in 1999 to head up a video department of a internet company I had, and he was a total disaster. He was an MBA, and I had all the, all that stuff, and I ended up having to pay him out like two years' salary to get him to leave, that sort of- Stefan: Oh, my God. Jeff: But yeah, so I just stay away from the universities. As you pointed out, if I ... I've got a number of businesses myself, so if someone's interested in working with us, I'll ask them what they do, and if they go, "Well, I just spent the last eight years in university," I'm like, "Well, you don't make very good decisions, do you? You [inaudible 00:24:00]-" Stefan: Bro, I'm going to give you a gong for that. Boom. I want you to instant replay that for the kids at home. "If you're hanging out in university the last eight years, you don't make very good decisions, do you?" Tell me why that's a bad decision in 2019. Jeff: Well, I'm sure there's probably a couple courses you could take in college that make some sense somehow. I've never seen them, though, but I ... There must be a couple, but the reason that it makes no sense in 2018, 2019, is because we have the internet now, and all information is on the internet. You don't have to pay $100,000 a year to go sit in a room with probably a unionized teacher who's never done anything his whole life, that's why he's a teacher, he doesn't know anything, and sit there with a bunch of other idiots like you, because you don't know anything, they don't know anything, and learn about socialism-type stuff pumped into you. It's a complete and total waste of time. Really, the best- Stefan: You mean it's a virgin sex therapy class, so the guy teaching, it's a virgin, but he's teaching sex therapy to everybody? Jeff: Yeah, that's one good way to put it, but yeah. It's just a waste of time. I think trade schools or something, where if you're going to become a mechanic, so you have to work on cars, so you can't really do that over the internet, I think that makes some sense, but 90-percent-plus of what you go to college for is just a complete and total waste of time that you could just totally learn much better stuff on the internet. It actually just came out, I don't know if you heard this, but Google and Facebook just said that they've removed university education as one of the requirements to work there. I think they're really slow and late to do that, but I think they're starting to realize, it's like, "Man, the people we're getting from the schools are just brainwashed idiots, whereas the young guy who's sitting at home just hacking away, and going on the internet all day, and figuring everything out, those are the kind of guys you want." Stefan: Yeah. I got a policy in my office, and when people come to me and ask for stuff, I say, "Google it, or handle it." Those are the two things, handle it, google it. Google and ... I think it was Google, Apple, Facebook, they don't need degrees anymore. I think that's been going on for some time, but it's an official statement now. Right? That's like super, super official. Jeff, let's go back to collapse of society and things like that. One thing that's common in history, and I've studied it over and over again when these collapses happen, it's usually, the people can't buy bread. The nonsense can keep going on. The ... Stefan: I've got the numbers in my book here, Hard Times, about minimum wage, and minimum wage in 1968, indexed to gold, is 103,000 dollars U.S., so you work at McDonald's, you made one cheeseburger, one hamburger, French fries, Coke, and a milkshake, you made 103 grand in purchasing power back then, indexed to gold. Same guy today making a cheeseburger, hamburger, French fries, well, he has to make 150 items down at McDonald's. They got a crazy menu. Stefan: Same guy at McDonald's makes 13,000 a year, so he's lost 90% of his purchasing power indexed to gold, and this shenanigan with the money system where the banks and the government rob people through inflation every year, and then suddenly, at some point, it keeps going, going, going, going until the average man can't buy bread. That's when the Russian Revolution happens. That's when the French Revolution happens. Why does that pattern keep happening over and over again? Jeff: Well, first, let me just mention that the reason that these jobs have gone so far down in value is because of the central bank. It's because of money printing and inflation, and that's why you pointed out those numbers in inflation terms. You have a lot of people out there today who are like, "We need to raise the minimum wage," which is, what you're saying is, "We need these people who extort us, called the government, to go out with guns and force businesses to pay us more because we can't afford to live." Well, the reason you can't afford to live is because you've had most of your stuff stolen from you by the central bank, and the central bank, by the way, is a tenet of communism, and that's why I say the U.S. is nothing even close to capitalism today. Jeff: Actual communism has already destroyed most of these people. You ask about revolutions, and yeah, it seems that people, this is one thing you can say about anarchy, a lot of people think about anarchy, "Well, if there was not government, it'd just be chaos, and horrible, and everyone would just kill each other." It's actually not true. Your average person, and this relates to your question, your average person just really doesn't want to do too much. They want to have a nice little life. They want to have a family or whatever, or they don't, but they want something nice, and that's about it. They don't want to go out and rock the boat too much. Your average person just does not want to rock the boat, and that's what ... Jeff: That's one of the problems we have today is, we have the statist system, and most people are just too scared to change it, but it appears, at some point, when you finally run out of even just food, and you can't even eat anymore, that's when finally people start to wake up, and stand up, and demand some sort of change. When I say demand, the problem is, they're demanding from the government change. What they should really realize is, the government caused it, the central bank caused it, and just break away from this system and stand up and become their own person and not be a slave to the systems, but yeah, it's unfortunate that your average person, for whatever reason, will wait until they're basically starving before they actually face the real problems in the world. Stefan: It's interesting in history, I think Putin kicked out the central banks. Is that right? Jeff: I'm not sure if Putin did, but the ruble basically collapsed. I don't think they had a central bank, definitely, at the start there. Stefan: Well, I've heard Putin's kicked out the central banks. I think it's interesting is, Hitler did that back in the day. I guess Germany was so poor, and they were so messed up, and they couldn't make their war reparation payments. They just couldn't pay, and that's how World War II started is, a bunch of people, super poor, couldn't pay their payments, boom, world war starts. It's interesting, because somehow, in the system, the political system, they go right versus left, and the right versus the left, and the left versus the right. Really, it's the same kind of thing. Nobody points the finger at the central banks. Stefan: One thing I love about America that still stands is, there's 300 million guns in the States and 300 million people, and they keep that gun amendment in there because they know that tyranny's going to come at some point. They left that in there, and if people can't buy bread, or they're really hungry, that's where those 300 million people with guns are going to rise up. Do you think we're going to see something like that in our lifetimes? Jeff: Yeah, definitely, because the U.S. is going to collapse in the next few years. It's not going to be decades, because it's so bankrupt. We have 22 trillion dollars' worth of debt now, so we're basically ... I said when I started The Dollar Vigilante that the U.S. dollar will collapse by the end of this decade, so we've got about a year left. I think we're pretty close to on track. That's how close we are to the end of this system. Yeah, we're definitely going to see collapses anyway. As far as people in the U.S. having guns, I think all people should have the right to defend themselves, obviously. I don't think anyone should be able to say, "You can't have this," if you're not hurting anyone else, and that's what government does, of course. It's very good. That's the only thing left in the U.S. that is keeping it from being complete and total carnage is that the people still can protect themselves, so the government has to be very careful about how they enslave everyone, but they've done an incredibly good job of enslaving people. Jeff: When you think about how the U.S. started, it started over the Tea Party, where it was a tax from England on tea, and that was it. It wasn't a tax on everything else, income tax, and capital gains tax, and smoking tax, and hotel tax, and food tax, and all this sort of stuff. It was just a little tax on tea, and that started the so-called American Revolution. Now you have people in the U.S. today where you have taxes that are over 50%. It's probably closer to 60 or 70% when you add up all the taxes, because literally every single thing in the U.S. is taxed today, including death. Death has a tax, and so when you die you get taxed. You still don't have people wanting to revolt. It's because, again, people are fairly, if they have a decent life, they don't tend to want to change things too much. You look at the U.S. and your average person, even poor people have a television. They probably even have a car. Even poor people have cars in the U.S. Jeff: That's how much free markets, even the poorest people are still ahead of a lot of other people in the world, and so because of that, they don't really want to have a revolt or anything like that. Plus, they don't even ... Because of all the years of government indoctrination and all the war propaganda about how they're trying to save the world by spreading freedom by bombing the entire world in the War on Terror, war of terror. It's absolutely insane, but your average person just doesn't seem to want to even break out of this system. Jeff: What's going to probably happen is, that system's going to collapse on its own because of all the debt and go into hyperinflation. Then hopefully, and you brought up about how Russia's become much more free market now. That's what happens. The same cycles that you mentioned before when you have countries, they usually start off quite small and poor. Even the U.S. was like that when it first started. Because it had a lot of freedom, it becomes quite rich. Then they get soft because of that and because of government and statism, they start doing socialism and all these sort of things which start to destroy everything. They start putting kids into the government schools and all that, and they get worse and worse until they eventually totally collapse, like the Soviet Union. Once it has a total collapse, then you can actually have free markets again. The U.S. actually, once this collapse happens, and after a few weeks or months, and that's sort of what happened in the Soviet Union as well, it takes a little bit of time, like weeks or months, definitely not years, then you can start to rebuild immediately again with free markets. Jeff: We've seen how the free markets, if you just allow people to be free, you just have to look at places like Hong Kong. That was a fishing village like 200 years ago. Look at it now. I don't know if you've ever been there. It's amazing to even go there. Singapore, even 100 years ago, was a fishing village. It's now one of the most luxurious, wealthy places in the world. Dubai was just desert. They just started doing like low-tax, no-tax sort of stuff, and all of a sudden, there you got like indoor ski parks in the hot, 150-degree desert. Once you have like all this tyranny, it will eventually collapse. Then once it collapses, you have freedom again, and then things take off again. Jeff: Really, that's the whole point of what I do at The Dollar Vigilante is, that's our actual tagline, which is, "Helping you to survive and prosper during and after the dollar collapse," because if you can hold on to some of your assets, and if you can get through this collapse that's coming, we're going to go on to amazing, prosperous times again, but if you have no assets, you'll have to work a lot harder to get back up, but if you have kept some of your assets and things like precious metals or cryptocurrencies, once everyone else gets wiped out, and all the banks close, and the currency becomes worthless, you'll be one of the richest guys around, and then you can start rebuilding the new free market. Stefan: Yeah. There's two cycles that are coming to an end. I wrote about this in my book, Hard Times. One is the 2020, which is that 80-year cycle of war. That's an important one to watch. Hard Times Create Strong Men. Then the other one is the 250-year cycle of democracy. Democracies only last about 250 years, so if the U.S. was born in 1776, it's going to be dead by 2026, so somewhere between 2020 and 2026, we know there's probably going to be an end of democracy, probably usually goes democracy into tyranny, and then tyranny back into monarchy usually is what happens. We'll see something happen. Do you think it's going to go back to tyranny and monarchy, or do you think it's going to go just to open freedom? Jeff: Yeah. A really good question. I don't know how it's going to play out. I could definitely see the tyranny part coming after this. What will likely happen, and probably be Trump will be in, his regime will be in as this collapse happens. As everyone's gets wiped out, as the banks close, as it's complete, way worse than 1929, Great Depression, someone like Trump will become sort of like Hitler-like in that sense, in that he will be the strongman who will lead the country out of this. Because of that, we're going to need more laws, and of course, Trump has been pro-asset, civil forfeitures, having the police just take whatever they want. He even came out recently and said that he's okay if the cops go and just take everyone's guns and then figure out if they did the right thing afterwards and go to court in that afterwards, so no due process and things like that. Yeah, I could totally see that we have this collapse in the next couple years. Jeff: It leads into a very sort of like Nazi Germany like sort of like tyranny type thing, and perhaps war, because the U.S. does have a massive amount of military just sitting there, and of course, if you're desperate, and if you're broke, and if your people are all crying out for something to be done, and of course, what do they always say on the news, the television programming? "Well, it's always Russia. Russia's always messing with us." Russia's not doing anything to the U.S. whatsoever, but they've been putting this into place, and they also mention China a lot. Yeah, they'll probably go into some sort of major war at some point. The key for people like us will be to stay outside of it and let them all go through this, again, if they want to go through this again, which is unbelievable. Jeff: There's lots of stories of people surviving through all of these, World War II, World War I, the Great Depression, and coming out way ahead afterwards, and even surviving quite well through it. A lot of them would go to places like Argentina or whatever for a few years, wait till all the craziness dies down with their assets and things like that. That's really the key, and to me, it's, we can't change everyone else. I wish we could, but we can't. Jeff: Actually, I don't wish I could. That'd be a huge responsibility, to change everyone else, but I wish that they would be a bit more able to see what's going on, but if they can't, really all that's left for us to do is to take care of ourselves and to keep spreading this information the ways that we can do it, but if they're going to go ahead and destroy the whole world with their statism, and their craziness, and their communism, and socialism, and fascism again, then it's really just up to us to survive and prosper through it and then try to be there to help rebuild once they get through doing it all again. Stefan: There's two interesting things that come to mind when you say that. There's the Hitler-Trump connection, which I think is super interesting. There's two things I want to allude to. There's the Hitler-Trump connection, and then there's another one, an Abraham Lincoln and Trump connection. When you look back in history, so if we go back 80 years to World War II, Germany was one of the most advanced civilizations on the planet, probably actually was the most advanced in science and medicine. They were so broke, they were so poor, they were so hungry, they were so messed up that the Nazis became popular, because Hitler was offering them a better life. He said, "Look, here's a better life. We can have a better way." People got behind that, the most sophisticated, probably, society on the planet went into absolute terror at that time. Stefan: I think there's a similar thing going on in the U.S. You've got a huge amount of people on food stamps. People are poor. People are pissed off, so they elect a strong leader. It's not ... It's interesting, like if it wasn't Hitler back in World War II, it probably would have been somebody else leading them, because the people were so poor and so messed up ... I like what Jordan Peterson said in the summary. He said, "You don't have an idea. An idea has you." That idea had Nazi Germany. I think there's a similar idea in the Brexit right now. There's a similar idea in the United States, and then that's the 80-year cycle. Stefan: If you go back 80 years before, you got the Civil War, the American Civil War, and Abraham Lincoln got shot. It's interesting, because Lincoln was a guy that wasn't totally popular with half the country. He got assassinated, and those things are all kind of floating around. You got a Trump, Trump-Hitler-like ruler there. I mean, I actually like Trump, personally, but at the end of the day, there's a sentiment in the country and a feeling around that that's Hitler-like, and then there's also an Abraham Lincoln kind of feeling where do you think he could get assassinated? Jeff: Look, I think it's possible. I think most of those sort of things, they're all actually orchestrated. JFK, for example, I believe that was Lyndon B. Johnson and the CIA who took him out. Ronald Reagan, that was the first Bush, the one who just died, George W. Bush, or sorry, George Bush, who was behind the assassination attempt, so-called assassination attempt, on Ronald Reagan. It's usually like an inside sort of a thing. It's really controlled. It's really theater. They actually keep all these things, including Putin, including little Kim in North Korea. They're all controlled by the same people, and it's just this big theater to keep people just mesmerized and watching their CNN and, "Oh, what did Trump say today," and all that. It's just no different than people in North Korea like, "What did little Kim say today? What are we supposed to do today?" Jeff: That sort of a thing, but anything is possible, but it is pretty tough to assassinate the president, as an outsider, but as an insider, it's not that hard, but they also seem to have some sort of weird like almost like protection around them. Like even George W. Bush, when he was in Iraq and the guy stood up at the media thing, and he was very mad, because Bush had been destroying his country and killing his family and all that sort of stuff, and he threw one shoe, and Bush just did the little dodge and just missed him, and then threw another shoe, and he just ... It's like, I don't know what it is with these people. They're kind of like, I don't know what it is, but it seems like he can't really get to them that way, not physically violent sort of thing. I think the only way we get rid of all of this is for people to wake up and realize that these people don't own you, and start to move away from these systems, and these people just go away and have to get real jobs. Stefan: I think one of the problems with human nature and people, I mean, you were talking about human nature and communism, where human nature doesn't work inside of communism, and then there's also another side of human nature, which is, I think humans have a hero worship, innate hero worship ability where we see someone, we see a leader, and we just want to worship them, and we want them to handle our problems. We want to have a personal Jesus. We want to have somebody we can just give it all to. Somehow, that's going to be the easy button. It'll all be solved, and then we don't have to think or deal with anything. Would you say that's true? Jeff: Oh, absolutely. That's exactly what government, it really is. That's what government always does. You look at every election. They come up there, and they give all these promises. "I'm going to solve this for you. I'm going to solve that." They never solve anything. They're just extorting you and destroying everything in the process, and making everything worse in the process, but yeah. That's absolutely the case is, your average person just won't take responsibility for themselves and just say, "I don't need this person to run this entire country for me. I can run myself," and that sort of a thing. Of course, it gets a little interesting how that would all, we've been in statism now for hundreds of years, so to actually break away from it's going to be difficult. Jeff: That's actually why we're starting up numerous sort of countries across the world now, so we've started Liberland in Europe, which is near Croatia and Serbia, which is a new sort of anarcho-capitalist country that's just being started, and there's some few others working on buying some islands, and we're going to start some totally anarcho-capitalist free sort of places there. We're also seasteading, so we're trying to start up in the ocean, start up our own little, what you call countries. None of them are really like countries, because there's no real government, but it's a place that we're going to start up that it's going to be completely free. Then through that, hopefully we could show the world, because they've never really seen it, what life would be like in a true free market. Jeff: If, all evidence seems to point to when you have a totally free market that it's incredibly good for most people. It just increases the wealth dramatically, as we've seen, as I pointed out, in places like Hong Kong, Singapore, Dubai. Whenever you have a lot of freedom, everything gets a lot more prosperous. The only sort of question a lot of people have is, "What if you have total freedom? What would happen?" We don't really have any good examples for that yet, so we're hoping to start do that in the next couple of years and try to show the world the light that, really, this governmental sort of statism system with central banks, and all these sort of things, are just absolutely terrible. The best thing for all humanity is to get rid of those sort of things and not have a belief in their authority. Stefan: Sounds like a page out of Atlas Shrugged right now. You got all the productive smart people wanting to go start their own country or start their own island. This is, it's just human nature. It's all written down in the book. It's all happened before, and here's a thought, Jeff. I don't know if you thought about this. At some point, there probably was some nice, true freedom in the Wild West, maybe, Wild West America or some place, and then at some point, the people organized themselves. At some point, there's a government. At some point, there's a king. At some point, there's a good king. He dies, and then you got his son, the bad king. Stefan: Do you think we've had freedom in history at some point, like true freedom, and then it just got consolidated into power? Because it seems to me that whether you look at a market like a real estate market, or you look at a Monopoly board, or you look at anything in life with humans, it seems that there's like always a consolidation going on. There's a consolidation at some point where somebody just ends up taking over, and we just end up in that over and over again, and the dominoes fall down at some point. We reset. Do you think we can actually exist as free people, like truly, or do you think someone's going to seize power at some point? Jeff: Well, the thing is, if you have enough people who actually believe that freedom is the way to go, and they want to do that, then no one can seize power, because there's nothing there to seize. You pointed out rightly that over history, it appears that people have always been okay with giving away their power to someone else and hoping this guy takes care of them all, and that never works out for the best, just like communism, it just never works out well. Jeff: Yeah, that's actually been the case over time is that people seem to have always sort of gravitated into these sort of things, but at the same time, when you think about life even today, we actually live in a state of complete anarchy right now. It just so happens that there's a lot of governments on earth which you can just consider to be criminal organizations who are stealing and extorting people, and kidnapping people, and forcing them to do things they don't want to do, but we actually live in a state of anarchy. Jeff: Your average person, actually, every single day of their life, pretty much lives in anarchy. When you're in your home, or you're talking to your friends, or you go to work, that's just anarchy. That's just day-to-day life, and there's no one there telling you what to do, except for a street cop or whatever, a road pirate who might try to extort you if he thinks you're going a little too fast over a arbitrary speed limit or things like that, but generally kind of already live in anarchy. Really, the important thing to understand is that the word "government," what it really means, "govern" is, the word "govern" comes from the Latin [Latin 00:46:24] which means to control, which makes a lot of sense, and the word "ment." Jeff: There's a lot of different sort of where that came from, but I lived here in Mexico, Spanish, [Spanish 00:46:34] is mind, so really, government is mind control. It's controlling people's minds to make them believe that this thing has authority over them and that it's sort of taking care of them as well. This is where we get into Stockholm syndrome and things like that, where people actually begin to really adore their kidnapper, the person who has basically kept them enslaved. I see [inaudible 00:46:56]- Stefan: I wanted to give a gong. At some point, you got to stop for me to give you a gong. I didn't know that "government" meant mind control. It's really interesting, because if you control the information, you control the thoughts, and if you control the thoughts, you control the stories. You control the stories, you control the beliefs. If you control the beliefs, you control reality. It's almost like ... In Hard Times, I talk about we almost live in a 1984 future from George Orwell, and some of it's like Brave New World, Aldous Huxley, which was Orwell's mentor. We got half of our stuff is the American Aldous Huxley Brave New World future with orgies, and synthetic music, and all these women with narrow hips that don't bear children anymore, and we have alphas, and betas, and gammas, and deltas and all that stuff, and epsilons. Stefan: Then the other part of our world is like the 1984 future where there's three gigantic powers that are always at war with each other, and it's like a Stalinist future. What do you think about those two books right now, Jeff, like 1984, Brave New World, and what we got going on right now? Jeff: Yeah. Both those guys, both, I think they went, both went to Oxford or one of those major schools. They hung out with the same people like the Bush crime family and all those, so they hung out with what you could call the elites, or some people call them the Illuminati or whatever words you want to put to these sort of secret societies that mostly sort of are in these schools like Oxford and stuff like that. They were actually good friends, as you pointed out, and it's really amazing that that long ago, what is it, like 60, 70, 80 years ago, they wrote- Stefan: It was 1945- Jeff: ... these books. Stefan: ... I think. It was like right after World War II the books came out. Jeff: Yeah, so I can't do the math. I went to government schools, but 70 years ago, whatever it was, and they've really just roadmapped the exact both ways that we're going. Actually, they're both happening at the same time. The Aldous Huxley, Brave New World, that was a lot of bread and circuses. The people would be too dumbed down, which we're seeing, through fluoridization in the water, through all the government indoctrination camps, through the television programming, all that sort of stuff. People are just watching the Kardashians and all that. Jeff: The sports, so the sports ball games, and that sort of thing, so people, that's what Aldous Huxley was saying is, people would be too dumbed down and too into these things like sports and entertainment to even notice that they're enslaved. That's what we have today, especially in the U.S. Then on the other side, there was Orwell went the other way with a bit more it's like a hard, top-down dictatorship. You can't say anything. Everything's the opposite of what it means in political speak, which is what we have today. You brought up about how there's these certain sectors of the world that always at war. East Oceania's always at war with whatever the other one was. That's what we have today. It's like, who's at war with who? This War on Terror, it's a war on a feeling. It's a war on, it's like terror is a feeling. It's like, "I was terrified when I saw that. We need a war against that." It's like- Stefan: Well, we got the- Jeff: ... "Who are you [inaudible 00:49:47]" Stefan: ... War on Drugs which doesn't work. We got the War on Terror that doesn't work. You got the War on Cancer that doesn't work. You got all these wars. They keep just funneling money into a couple dudes' pockets, and the War on Drugs makes drugs worse. The War on Cancer makes cancer worse. The War on Terror makes terrorism worse. It's pretty scary how those things just simply don't work. Jeff: Yeah, and it's all by design, like the people who really do these things know this is what's going to happen. It's just sad that people keep falling for it, but people are slowly waking up thanks to the internet. Yeah, I even saw like, who's that blonde, fairly not attractive, woman on U.S. TV who's like a really mean, nasty sort of ... Anyway. She just came out, and she just said all these wars are just stupid. They're just like, like we shouldn't be doing them. She was like a total war sort of a person. This just came out. Jeff: People are starting to wake up, but the biggest issue is, they don't know what the answer is, and so that's why they keep going back to what you pointed out, which is this false left-right paradigm, which they tell everyone that's all there is. There's left or right or somewhere in the middle and there's nothing else, but that's a very narrow range of political spectrum. That's basically statism right there, and you can have left or right in statism, but there's a whole other spectrum of just not having governments whatsoever that could really free a lot of people. It's really growing, actually, like when we first started Anarchast, Anarchapulco, Anarchapulco started five years ago. It was 150 people. We're now expecting about 3,000 people. It's doubled every year. Stefan: Wow. Jeff: My show, Anarchast, a lot of people said no one had ever watched the show, but anarchy, that's crazy. They think anarchy is throwing bombs and all this sort of stuff, but it's catching on. People are catching on to a lot of this stuff now, so we're going to see what happens. We're at an amazing time in human history, because all these things are coming to a head all at the same time. All these governments are bankrupt. The central banks are about to go into hyperinflation. Then we have people waking up and starting to realize what's going on, and then you still have all these people in the universities who think that communism's the way out, so they'll probably try to push for that. Jeff: It's just amazing, incredible time, and there's going to be so much change in the next 10 years. I don't think anyone will believe what happens over the next 10 years. I couldn't even imagine what will happen, but I know it's going to be mind-blowing what happens. It's going to be that much change. Stefan: Yeah. It's unbelievable. Now, Jeff, I got to wrap up the show, but I want to ask you a couple questions I ask every guest, because I think they're cool. If you can go back in time to, let's say, 15-year-old Jeff and give yourself a piece of advice, what's a piece of advice you'd give yourself? Jeff: Oh, man. That's a good question. I would say work on yourself. I really just started working on myself over the last couple of years. I'm like 48 years old now, and it's changed my life dramatically. I didn't deal with a lot of my past issues, childhood issues, a lot of the programming that we get from our cult, our culture they call it, but our cult, through our younger years. That still stays in your head. I think if I would have, if I could go back, I'd say, "Buy Bitcoin as soon as you hear about it," and I'd- Stefan: [inaudible 00:52:55]. Jeff: ... say, "Work on yourself," like- Stefan: [inaudible 00:52:57] man. Jeff: I'd probably also say, "Don't go to the bars that much. Don't be having a lot of drunken sex. It's a total waste of time. Try to find a good girlfriend. Try to fix yourself and work on yourself more than anything." That's what I'd tell him. Stefan: Wow. Great answer. Top three books that changed your life. Jeff: A good question again. We talked about G. Edward Griffin earlier. The Creature from Jekyll Island was one of the first books that got me looking into all this stuff that I talk about today. That was a really important to my life. I'd say The Lord of the Rings is, I read it when I was very young. I used to love to read. I was probably like 12 or something. This giant book, it's even bigger than your book there. What I didn't realize about The Lord of the Rings that is interesting, I love the book, and I loved everything about it, and it wasn't until a couple years ago I realized that that ring of power was actually a metaphor for government power. I actually looked- Stefan: Wow. Jeff: ... into it a couple years ago, and J. R. R. Tolkien, who wrote the book, called himself an anarchist, so that entire book was an allegory about the problems caused by government. Those two books are pretty good. I guess the third book that I thought was really interesting, and it's like a pamphlet. You can read it in about two hours. It's called The Market for Liberty. You can actually find it online for free in PDF format, and it shows what the world could be like without government. When I read that book, it just blew my mind, because I'm sure if you even read it, you'd go, you'd be like me, you'd be like, "Wow, I never thought things could work that way or that ... " Jeff: They actually thought about how things would work without government, so there'd be like private security companies. Well, how would that work? Well, there'd be insurance as well, so the insurance companies ... For example, like people go, "Well, how would you put out fires without the government?" Which is kind of funny, because the government rarely puts out fires [inaudible 00:54:34]. Stefan: Fire insurance. Jeff: Yeah. Fire insurance, and then the insurance companies have all this insurance money, and they'll have to pay out a ton if there's a giant fire, so they actually put out fire stuff, and fire stations, and all that kind of stuff so it can all work in the free market. I think that book really, in just such a small amount of time, can really just show how the free market can handle everything. Stefan: Yeah. Well, that's great. I always, people say, "Well, who's going to pay for the roads?" Well, you just tax cars and gasoline. If you got a car and gas- Jeff: Not even tax, right, but like the businesses would own the roads. You would never put up ... Let's say you're Walmart, and you want to put up a Walmart somewhere and there's no road there. You're going to build the road, because you want people to get to your thing. Plus, not to mention there's already all roads. All roads that already exist. I don't know why people think they'll just disappear, but obviously like gas stations would have a giant interest to making sure there was roads, so they would probably do something. The gas stations would all work together and say, "Okay, let's take 10% of all of our money that we make every month and put it into maintaining the roads." Right? It's fairly basic sort of stuff. Stefan: Right. All right. Second last question today, Jeff. What's the one thing that young people need to succeed these days? Let's talk to the snowflakes. Let's talk to the millennials, the guy with the MacBook Pro at Starbucks. What's something you want to say to h

Gruesome Magazine - Horror Movie Reviews and Interviews
Reviews of Bird Box and Cold Skin

Gruesome Magazine - Horror Movie Reviews and Interviews

Play Episode Listen Later Jan 15, 2019 62:32


This week, the Grue-Crew take a look at films streaming on NETFLIX and SHUDDER. The first film this week is COLD SKIN from director Xavier Gens, featuring a scientist heading to a remote island to study weather but instead discovers an inhuman race of creatures. The second film is BIRD BOX from director Susanne Bier, featuring a woman struggling with becoming a mother when the apocalypse strikes.  Doc Rotten and Vanessa Thompson from Horror News Radio along with Jeff Mohr from Decades of Horror: The Classic Era share their thoughts about this week's awesome collection of streaming horror films. Gruesome Magazine Podcast - Episode 050 BIRD BOX - COLD SKIN COLD SKIN In 1914, a young man arrives at a remote island near the Antarctic Circle to take the post of weather observer only to find himself trapped in a watchtower besieged by deadly creatures which live in hiding on the island. "[Cold Skin] felt so much like a good turn of the century novel. You have the protagonist as the narrator of his own sort of memoir and it has that kind of Lovecraft, Edgar Allan Poe feel." - Vanessa "[Cold Skin] raises a lot of issues about how we treat others who are different from us.." - Jeff "There were moments in [Cold Skin] I thought were really strong. Most of them involve 'Friend' and the creatures when he is learning about them or becoming close to them." - Doc Director: Xavier Gens Cast: Ray Stevenson, David Oakes, Aura Garrido Release: Currently Available on Shudder. BIRD BOX Five years after an ominous unseen presence drives most of society to suicide, a mother and her two children make a desperate bid to reach safety. "I really enjoyed the story. I enjoyed the way the different characters play against each other. There are a couple of things that I was, ‘Eh,’ but overall, I have to say I’m on the side of the people that really enjoyed the movie." - Vanessa "[Bird Box] has a substantial amount of depth to it … I really enjoy her (Sandra Bullock's character) story arc. I really dig this movie." - Rafe "I thought it was the story of Mallory’s evolution (Sandra Bullock’s character) . I’ll admit it. I cried at the end." - Jeff "The cast is phenomenal!" - Doc Director: Susanne Bier Cast: Sandra Bullock, Trevatne Rhodes, John Malkovich, Sarah Paulson, Jacki Weaver Release: Currently Available on NETFLIX

netflix decades lovecraft edgar allan poe sandra bullock bird box shudder john malkovich sarah paulson cold skin xavier gens vanessa thompson jeff there david oakes jeff mohr grue crew horror news radio
Running with Unicorns
Top Tax Tips for Managing Your Crypto Taxes — Jeff Neumeister - Running with Unicorns Ep. 5

Running with Unicorns

Play Episode Listen Later Jan 10, 2019 28:22


Jeff Neumeister, Founder and CEO of Neumeister & Associates, joins us today to talk about cryptocurrency taxes, a confounding area of tax law (what isn’t?) and one that you should master if you are an investor in digital currency. Because what you don’t know could have an adverse impact on your pocketbook. That’s what happened to one U.S. college student in 2017 who invested $5,000 in Ethereum and somehow would up owing the IRS $400,000 in taxes. Yes, you stand to benefit greatly from understanding how the IRS views crypto (Hint: It’s in the same category as your house). And you’ll learn the cardinal rule of crypto taxation: The buck stops with you.   This is specially important this year after the 2018 market crash since many investors are selling their cryptocurrency and fleeing the market, without full knowledge of the tsunami of capital gains liabilities that these transactions may be triggering.   A forensic accountant by trade, Jeff brings great credibility to the task of walking us through the minefields of crypto taxes. He offers practical tips on everything from what constitutes a taxable event to what makes crypto taxes so challenging and how mined coins are taxed. That’s just a few of the questions Jeff answers in this episode. You’ll come away feeling a lot more confident about understanding your tax burden as you stagger into your tax prep marathon.     Topics Covered in this Conversation with Jeff Neumeister   What makes crypto taxes so challenging. What constitutes a taxable event? What is the difference between short-term and long-term gains? How are mined coins taxed? What happens if I give some coins as a gift, or someone gives me crypto? Do I have to pay tax on coins that were hacked? What happens if I lose some coins? What are the acceptable ways to report coin gains? What are the biggest obstacles to easily filing crypto taxes? Increasingly, there are charities that accept crypto. Is that something that would be helpful at tax time?  How are exchanges doing in terms of making it easy for investors to file taxes? Can crypto losses be balanced against traditional fiat capital losses. What’s the craziest thing you’ve ever seen or heard with it comes to filing or not filing crypto taxes. Let’s step back a bit and look at the process involved - let’s look at two scenarios: Scenario A: Let’s say you are Sally Fey, a beginner investor in 2017 and you got all caught up in the buying and selling during the Bull Market and you didn’t track all the coins you traded across multiple exchanges nor did you jot down the buy/sell price  for each transaction. Now your taxes are looming and you have your head in your hands. How do you regroup? Scenario B: Unlike Sally Fey, you are Matt Jones -- a beginner investor in 2019 and it’s a Bear Market and you’ve been told now is the time to buy. You’re starting with a clean slate. You’ve set up your exchange accounts, you are ready to trade. What’s good tax hygiene you should follow from Day One and on to Day 365 to simplify your tax headache for the year? Can you get away with NOT paying crypto taxes? What are the penalties for non-compliance? Any closing thoughts on how to make our crypto tax lives easier?   Questions and Comments? chasingunicorns@gem.co   Guest Contact Information Jeff Neumeister Website | LinkedIn | Twitter Resource Links: 3 Ways the IRS Is Taxing Cryptocurrencies Taxes and crypto Turning your 2018 Bitcoin and Crypto Losses into Tax Savings What You Don’t Know About Crypto Taxes Can Hurt You Tax Nightmare: Student Invested $5k in Ethereum & Now Owes $400k in Taxes 4 things to know about your cryptocurrency at tax time Year-End Tax Tips And Strategies For Cryptocurrency Investors IRS Guidelines Transcript: Interview with Jeff Neumeister Interview Recorded On: November 12 Topic: Crypto Taxes Chitra: Hello, and welcome to Running with Unicorns, your portal to the world of cryptocurrency. I'm Chitra Ragavan, Chief Strategy Officer at Gem. It's that time of year again, and your crypto taxes are looming. Here's what you can do about it. Our guest today is going to walk us through the ins and outs of crypto tax filing. Jeff Neumeister is CEO and Founder of Neumeister & Associates, an LA-based tax advisory firm with a growing practice in crypto taxes.   Jeff, welcome to the program.   Jeff: Thank you.   Chitra: What makes filing crypto taxes so challenging?   Jeff: It'd be probably because there are so many different things that are happening in the crypto world. It's not just mining coins or just trading coins, but there are forks, airdrops. There's just a lot happening. Because it's a new space, it's a lot that the taxing authorities are still trying to wrap their heads around.   Chitra: Let's start with the basics. What constitutes a taxable event in cryptocurrency?   Jeff: A taxable event is anything that results in a tax obligation or a potential tax obligation. That could be selling something, it could be generating income, it could be incurring a expense.   Chitra: Is it different than in regular taxes? What are the differences and similarities?   Jeff: It's similar in concept, except with cryptos there's just, again, so much more going on. Normally, if someone is just, say, a W2 earner, they have a paycheck, and that's the sole source of income that is subject to tax. With cryptos, however, if you're mining and trading in the ICO world, there's so many things that are happening that you're constantly subjected to different types of taxes.   Chitra: One of the basic things one needs to know is short-term and long-term gains. How does that work?   Jeff: Short-term gains just refer to anything, anytime you hold an asset or a piece of property for less than 12 months. Long-term is anything above that. Now, they also come along with different taxable rates. With long-term capital gains, it could be anywhere from 0 to 20%, so much better than what most of us pay with taxes for our income earnings. For short-term gains, it's anywhere from 10 to 37%. Short-term capital gains are essentially the same as ordinary income tax rates.   Chitra: Let's look at different types of crypto and how they will be impacted by taxes. Let's start with if you're mining cryptocurrency. How do you account for those?   Jeff: Mining's interesting, because it's kind of two things at once. When you mine a coin, or a fraction of a fraction of a coin, you're generating ordinary income, so whatever the value of the mined coin was, or fraction of a coin was, you have to pay ordinary income taxes on that. Then, that also establishes your cost basis in the coin that you now hold. If you do something else with it later on, trade it or sell it, you'll have capital gains on top of that.   Chitra: Then, let's look at crypto gifts. If you get a gift of Bitcoin, or Ether, or EOS, how do you handle that when it comes to tax time?   Jeff: If you're the receiver of a gift, then you just need to be aware of what the holder's or the donor's cost basis was. If they acquired something for, say, $100 and gave it to you, you need to make sure that you have that down in your records that your cost basis is $100.   There's no tax owed on a gift received. However, if you're the gift giver, you might have to do a informational filing, a form 709. What that is is anytime you gift more, at least in 2018, more than $15,000, you have to file a form 709. You don't have to pay gift tax on that, but if you exceed your gift-giving of $5.6 million during the course of your lifetime, then you have to start paying gift taxes.   Chitra: If only we could all be so lucky.   Jeff: Right. Most of us will never have to worry about that, but make sure that you file a form 709, because there are penalties with not filing.   Chitra: Then, can you give crypto to charity? I see that increasingly, there are a lot of, even the Red Cross and other organizations accepting crypto. When that happens, is that a good thing to do, when it comes to tax time? Obviously, it's a good thing to do in any case, but it probably helps with taxes, doesn't it?   Jeff: Absolutely. It's just like any charitable contribution, except instead of giving clothes, or fiat, or artwork, or jewelry, you're giving cryptos, yeah.   Chitra: It's taxed similarly?   Jeff: Yes, mm-hmm (affirmative).   Chitra: Then, if you're hacked, what happens? You're losing a bunch of coins because you got hacked. Do you have to pay taxes on that?   Jeff: No, but you have to make sure that it's documented. It's the same thing as if someone came into your house and burglarized it, right? It's a casualty loss. That would be an itemized deduction. You have to make sure that you record those things. Chitra: What if you just lose your crypto? Like, they're on some exchange, you don't know where it is, or you've lost the password. Can they figure it out that you have this crypto? How do you account for the missing crypto?   Jeff: That's a little bit more challenging. If you no longer have access, say, to your key, and you'll never obtain access, then that could be construed as a casualty loss, as well. If you just say, "I don't know which exchange it's on," hopefully that won't come up if you're audited, yeah.   Chitra: And if you are?   Jeff: Then, as long as you show a good faith effort in being consistent and transparent with taxing authorities, and they could see that you're not trying to hide anything, then you should be okay.   Chitra: Do you hear of people that are trying to hide crypto by claiming losses, that they've lost it?   Jeff: Some folks, yeah, yeah. More egregious than that, though, we've had, there was one gentleman that was seeking out a CPA, who made a little over 2.5 million in cryptos, and said, "No, I'm just not going to file. If they want the money, they have to come after me."   Chitra: Did they?   Jeff: Well, that's what's going to happen over the next couple years, yeah. The IRS has started mounting a task force specialist specifically to investigate cryptocurrency filings.   Chitra: Is that going to be an easy task? Will they find people that are scofflaws?   Jeff: They will absolutely find people, right? It's going to be interesting in the tax world for the next couple of years, and tax courts, people fighting them.   Chitra: You're seeing a lot of new developments in tax filings, in tax law as a result of this?   Jeff: Not yet. Really, they're just kind of testing the waters, now. The last, about a year ago, they started issuing subpoenas to exchanges, and they were winning, to get transaction records from them, so they could see what people are trading and how much people are earning, so they could compare that with individual tax returns, to find evidence of those that are evading their taxes. They're just starting to institute those audits now and will be taking these folks to tax court as needed. There's a lot of things that will come out of it, but it hasn't happened yet.   Chitra: Because I think, particularly in the early days, there were probably a lot of people who weren't filing taxes. Is there like a statute of limitations, or does it matter if like 10 years ago you weren't filing taxes, and now the IRS is starting to think about this and starting to do these audits?   Jeff: There is a statute. It's, generally speaking, three years from the date of which a filing was due, but that's only if it was an innocent mistake. If you're intentionally evading, there's no statute on that.   Chitra: How do you report, typically, gains and losses? What's the process?   Jeff: The process is usually, you want to have everything calculated, all the transactions. Coin for coin, coin for fiat, and those will be itemized on a form 8949, and summarized on a schedule D, which are attached to the tax returns.   Chitra: Having done my crypto taxes this year, it's fairly complicated. It's just, you have to look at every single transaction. Talk a little bit about what that process is like. It's fascinating for me to see the level of detail and how you actually go about finding those records, if somebody hasn't kept those records, and being able to trace the flow of that currency from the exchange to your wallet, or if you're trading, you've got all of these multiple transactions that have taken place, hundreds, maybe thousands of them.   Jeff: Yeah, it could get very complicated. That's why a lot of our clients have come to us, to help them untangle these complex array of transactions, ranging from, if they have a few hundred coins that they're trading across multiple years, you can end up having thousands and thousands of cost pulls, because you have to trace every single transaction to its cost basis. Its cost basis depend on whether you used FIFO, LIFO, or HIFO.   Chitra: Explain that a little bit.   Jeff: Sure, yeah. Those are the manners in which you inventory the cells of different coins. LIFO, last in, first out, that's saying, when you sell a coin, you go to the last time that you had acquired that coin, and you sell it out of that pool. If you're buying and selling coins all day long, go across multiple months, you have many cost pulls, even thousands or tens of thousands of cost pulls.   FIFO, first in, first out, is where you sell your oldest coin. What that does is it will result in fewer long-term capital gains, but you're kind of eating up your tax obligation now, versus deferring it to later on.   Chitra: Let's say I'm trading, okay? I'm on exchanges, and I'm trading. I'm not really thinking about ... It's not something you think during your trading process, right? It's something you do after the fact. I'm not thinking LIFO and FIFO when I'm like, "Let me find what's my oldest Bitcoin, and let me trade that for Ether." I'm just like, trading. Am I doing the right thing? Is this something you go after the fact, and start to look through it and make those calculations?   Jeff: The easiest thing is to maintain good records, so that whoever, whether you're doing it yourself or outsourcing it to a professional like us, then they could go through those records a lot easier, because it does get complicated. As long as you have the information, it could be all untangled.   Chitra: What's the largest number of transactions you've done, filing taxes, that you've seen? Thousands, hundreds of thousands?   Jeff: Probably in the hundreds of thousands. I think our largest client had a little shy of 200,000 transactions across about 2.5 years. It was a lot. It took a massive amount of manpower, because there isn't a way to fully automate it, yet. We've established a proprietary method to semi-automate portions of it, but not the whole thing. There's still a lot of manual touches that have to be done to it.   Chitra: Were you able to do it?   Jeff: Yeah, yeah. We were able to untangle all of it. He had a massive tax obligation, but most importantly, it'll keep him compliant with the IRS. He had the cash, right? If you make a million dollars in cryptos, and if you have to pay a few hundred thousand in tax, you know, you're still coming out ahead.   Chitra: This is true. What are some of the biggest obstacles today for average investors, when it comes to filing taxes?   Jeff: I think having an understanding about how complex the tax aspect is with cryptos, if you're trading, mining, doing anything else. I think just being aware and mindful of that.   Chitra: There's also the issue of documentation, right? For example, different exchanges can give you different levels of information about your trades, so at the end of the year, some exchanges will give you a lot of information. Other exchanges give you virtually no information. How do you start to do the detective work to find all of your records?   Jeff: That's one of the tricky parts, yeah, because there isn't really any sort of regulation about what all the exchanges have to provide users. There's going to be, and it's moving that direction. For now, it's kind of up to the individual to maintain their own records. If the exchange only provides piecemeal stuff, or in the case of Bittrex that just up and deleted people's information, it's still your obligation to make sure that you're tracking things.   Chitra: What happened in that instance where the information was deleted?   Jeff: Well, they up and decided just to remove information.   Chitra: This was an exchange?   Jeff: Yeah, yeah, Bittrex. It's still the user's responsibility to maintain the records. The individuals that were subjected to that, had they downloaded their transactional information, let's say, every week or every month, they would have been okay, right, just in case something does happen to an exchange. That's something we advise our clients to do is don't wait till the end of the year to start pulling your information, even if you're using a CPA like us, right? Pull the information maybe once a month, just in case something happens.   Chitra: That's interesting. That's something I've never thought to do. It's kind of surprising that they're allowed to even delete information. Is that going to change, in the future?   Jeff: Yeah, there's definitely more pressure in regulation around what the exchanges are doing. Also, keep in mind that a lot of these are foreign exchanges, too, right? The IRS and the federal government only has so much control over what they do.   Chitra: Because this is such a global flow of money.   Jeff: Exactly. It's a global thing. Right.   Chitra: How does the US government, or how is the US government attempting to get a handle on this? Do you feel like the government is kind of playing catch up, now?   Jeff: A bit, yeah. I think there was too much downtime from 2014 to now. You know, the last time the IRS issued any formal guidance was in 2014.   Chitra: What was that initial guidance?   Jeff: It was maybe like a five-page notice, 2014-21, which pretty much just said that it's not legal tender, and to pay your tax on it. There really wasn't much guidance beyond that.   Chitra: What happened before then, like 2009 through '14? Was there any guidance?   Jeff: Nothing formal.   Chitra: What were people doing then?   Jeff: I think, at the time, IRS and other government agencies probably just assumed that this is just a fringe thing, it's a temporary thing, it's not going to last, but look at us now. There are industries being built around blockchain and crypto, and they realize that, now, and the amount of money that people have earned in the sector. They see it as, like, it's a huge nest egg waiting to be tapped.   Chitra: Build your highways and all of that stuff.   Jeff: Right, yeah.   Chitra: Now, when you're filing taxes, can your crypto losses or gains, be balanced against your traditional portfolio?   Jeff: Yes, yeah. The way it works is short-term gains and losses get netted against other short-term gains and losses, regardless of if they're crypto or not. Then, the same thing with long-term.   Chitra: Great. Now, what are the penalties for noncompliance?   Jeff: For failing to file a return, it's a flat 5% of whatever your tax obligation is. For not paying the total amount of taxes owed, it's one half of 1% per month. If it's just one month late, half of 1%, it's not a lot, but if a couple of years go by, a few years go by, it can add up really quick, plus interest.   Chitra: Can you go to jail?   Jeff: Absolutely, unfortunately. If it's deemed that it was tax evasion, like in the example that I gave you of the gentleman that was looking into using our service and decided, no, they can just come after me, a couple million dollars, if they find evidence of tax evasion, then it could be subjected to a felony, which leads up to up to five years in prison and up to a quarter million dollars in penalties.   Chitra: Now, there's a lot of money laundering also going on, right? Does that play a role at all in this?   Jeff: Not so much with the taxes, but it is something that they're mindful about, out there. I see that more in the banking sector, that being an issue. In fact, one of our clients in the crypto space, their bank account was just abruptly closed with no notice. They said, "You can't bank with us," because they are concerned about potential money laundering.   Chitra: What is their fear?   Jeff: I think because they don't know where the money is coming from, right? If you have crypto-related money, it's so easy for it to be maneuvered from overseas. I think that's the concern, because there isn't enough regulation out there yet, right? Some people are just distancing themselves.   Chitra: It seems like there's a whole bunch of areas in which the federal government and governments around the world are now grappling with, how do you make people accountable for all of this wealth that they're generating, and how do we get a piece of that action?   Jeff: Right, that's what it is. They want their cut. As long as you give them their cut, they're not going to bother you.   Chitra: Now, let's look at two scenarios. Let's say you're a Sally Fay, you're a woman investor. You're just starting out. You're super excited. It's 2017. The bull market is in full swing, and you've learned how to trade, and you're just buying and selling without any regard for keeping tabs on your cost basis or the proceeds that you're making. Then, come December, you're stuck with having done thousands of transactions, and you have no idea how to go about finding those records, because every trade that you've done is potentially taxable, correct?   Jeff: Correct.   Chitra: What do you do?   Jeff: In those kinds of situations, because it's a lot of cleanup, the best thing to do is consult with an expert like us, so we can get you cleaned up and caught up. Then, going forward, you're on the right path, right? And to be mindful just about all the tax consequences of all that trading activity.   Chitra: Do you just sort of systematically start to go back and look at every trade you've made?   Jeff: In order to calculate all the gains and losses, historically, yeah. We have to kind of start from inception. If someone started trading in 2014, right, we have to go back to square one.   Chitra: That's pretty daunting.   Jeff: It is, yeah, yeah. At least once we get you caught up, then you should be okay, right?   Chitra: Let's look at scenario B. Let's say that I am a young man, Matt Jones. I'm not in the crypto market yet. It's the bear market, and people are telling me, "Hey, now's the time to come in. Buy low, and you can sell high." I have a clean slate. I've set up my exchanges, but I haven't done any transactions. What are the kinds of things I need to put in place to have tax hygiene, so to speak?   Jeff: Some best practices.   Chitra: Yes.   Jeff: I'd say, first, be mindful that you do any sort of trade coin for coin, that's all going to be a taxable event. Have at it, but just be mindful that there could be a lot of tax compliance to deal with at the end of the year. That affects some people's volume activity.   Another thing, to make sure to pull their records on a consistent basis. We usually, we're advising our clients now to download their transactional history from each exchange they use about once a month. Just make it a month-end practice, just in case either they got locked out, the data is deleted, or something is hacked, just in case anything happens, at least you have the records.   Then, outside of transactions like that, if you're trading on an exchange, if you're gifting coins, jot down somewhere on a Excel sheet or a Word document who you gave it to, when you gave it to them, and how much you gave, right? Just in case if there's any gift tax compliance to do, we could do that as well.   Chitra: Is it advisable to have a notebook and a pen, and when you're making these trades, to actually just jot it down, or put it on an Excel sheet that on this date, I bought X amount of Bitcoin, or I sold X amount of Ether for X amount, and to have that? Is that going to be helpful at the end of the year?   Jeff: It could, but like all the transactional data within the exchanges usually is going to have all that information. If someone wants to just separately track it, and if they're not doing a lot of trades during the year, that could be just as efficient and make their process easier at the end.   Chitra: Now, tell us some war stories. What are some of the anecdotes that you tell people about folks having challenges in filing taxes, or cases that you've seen, or what the government is doing to come to terms with this new source of income?   Jeff: Sure. Probably a couple examples. We have clients that were trading back from, the oldest one is 2013, maybe about a little over $4 million, and of course, they never reported any of it. Thankfully, in contrast to the other individual I was referencing, he said, "You know what, I just want to be compliant, right?" He came to the table. We went through everything, all the records, and got him up to speed.   Going forward, if he's audited, or maybe I should say when, because it's a lot, a big amount, we have work papers in place that we could provide in response to an audit. 90% of the time, that'll just make it go away, almost immediately. As long as the IRS can see that you've made a good faith effort, that there's been due diligence in being compliant, and you have work papers and a CPA to back it up, the audit will go away, right?   Another example, well, with the IRS, it's not so much a war story, but it's come to my attention that they've selected around 1200 to 1300 cases already from the 2017 filings that they're going to move forward with audits. Now, I don't know which ones those are. That comes from a source I have within the audit community, but we suspect that those are probably the larger ones, mostly, people that have generated hundreds of thousands, if not millions.   Chitra: Is the IRS not only trying to get revenue back from these taxable events but also trying to set precedence in some way?   Jeff: Yeah. It serves both purposes, yeah. One, it's a huge amount of revenue just sitting there for the government that hasn't been tapped yet. The second is going through this process, and going through these audits, and taking some people to tax court will set precedence, so that it's clear to everyone else that, one, you need to be compliant. Don't play games with them. I wouldn't be surprised if they send at least a few people to jail over this that have evaded their taxes.   Also, it allows them to kind of establish authoritative guidance, because they're going to take everything they find. They will undoubtedly issue some pronouncements about, "Here's how you calculate this. Here's why you file things this way," which right now, we don't have.   Chitra: What about moving out of the US, like just moving abroad so you don't have to pay your taxes, or even moving to Puerto Rico. You hear a lot about that. Is that going to help you or hurt you, in the long run?   Jeff: I think for taxes, temporarily, it would help, right? But, do you really want to expatriate yourself, denounce the US, in order to just save some money temporarily on taxes? I don't know.   Chitra: Depends, I would say.   Jeff: It depends, yeah, yeah.   Chitra: On what the amount is. Are you hearing about people who are actually doing that?   Jeff: No one I know has actually done it. Some folks that we know have been debating it, and they asked to do some research on expatriation process.   Chitra: It's a fascinating area. When you're doing the forensic work, you've been asked to help, I think, with investigations and things like that. How do you go about collecting the forensic evidence on these cases?   Jeff: Really kind of the same way we do crypto calculations for our clients, right? We pull all the underlying third-party documents. In this case, transactional records. We get their narrative about what happened, hear the story, because any forensic case, anything that we do, it's not just the numbers. It's also the context. It's also what happened, the story, if you will.   With forensic cases, there's usually a lot of other moveable parts, as well, particularly like divorce cases, where people are sometimes hiding funds. Partnership disputes, where one partner is embezzling money. We see that kind of stuff a lot more often than what people realize.   Chitra: What happens in the case of a divorce? Who gets the crypto? How do you actually even split the proceeds, if that's what happens?   Jeff: Same thing with kind of like a house, right? If it was community property, assuming it's a community property state like California, then any assets would be split 50/50, unless it was bought with separate property. If you don't want to cash out the portfolio, then usually one partner would buy out the other half from the other partner, just like a house. If you don't want to literally split the house in half, one person wants to keep it, one partner would buy out the house from the other.   Chitra: Well, that actually raises an interesting question, because let's say one partner is very crypto-savvy and the other partner is not crypto-savvy. It probably is pretty easy to hide your assets in the form of crypto, because the other person has no way of finding out how much you have and where you have this.   Jeff: True. Yeah, there's an opportunity there for someone to try to take advantage. Part of the divorce proceedings process is to come to the table and be transparent with both partners. Usually, like, you're essentially signing off to the court that let the partner know 100% of the assets out there. To try to hide it is essentially perjuring with the court.   Chitra: Where do you see all of this going in the next few years, as more and more people get into the space? There is a prediction that you're going to have a billion new crypto investors, over the next five years, entering the market. Where do you see the field of taxation going?   Jeff: Yeah, definitely, I see a second adoption, as well, coming in the coming years. I think, by the time that happens, there'll be a little bit more infrastructure in place with the taxation piece. One, with the exchanges. They'll start being a little bit better about what they record for their clients and what they issue out at the end of the year. I think we'll get to a point where exchanges are very, very similar to brokerage accounts, where you just get a 1089 of, "Here's your cost basis, here's your proceeds, here's what you report on your tax," and make it much easier for folks.   Chitra: Just as the industry is growing up, the tax piece will grow up, as well.   Jeff: Yup.   Chitra: Yeah. Great. Is there anything I haven't asked or anything really important, closing thoughts?   Jeff: One closing thought, just, I think it's good for everyone to remember that almost everything is a taxable event. If the question is, "Do I have to pay tax on this?" 9 times out 10, it's yes.   Chitra: Sadly.   Jeff: Yes.   Chitra: Thank you so much for joining us. Where can people learn more about you and find out more about the work that you're doing?   Jeff: Sure. Our website is neumeistercpa.com, that's N-E-U-M-E-I-S-T-E-R-C-P-A.com. We're a full-service accounting consulting firm, but we specialize in things like cryptos.   Chitra: Great. Thanks so much for joining us.   Jeff: All right, thank you.   Chitra: That's all for now. Join us again next time for another edition of Running with Unicorns. Until then, enjoy your crypto journey, unicorns.  

Anderson Business Advisors Podcast
Tax Tuesday with Toby Mathis 09-18-18

Anderson Business Advisors Podcast

Play Episode Listen Later Dec 21, 2018 66:13


Toby Mathis and Jeff Webb of Anderson Advisors are here to answer all sorts of tax-related questions that focus on everything from applications to forms and QuickBooks. Do you have a tax question? Submit it to Webinar@andersonadvisors.com. Highlights/Topics: Will income earned by lending money to real estate investors reduce Social Security benefits or increase taxes on them? Income vs. earned income; until full retirement age, benefits are reduced; when full retirement age, it doesn't matter what you make How do I get the 20% deduction from Trump's Tax Plan? The 199A Deduction is a 20% deduction on qualified business income, but you need a pass-through entity; QBI 20% deduction vs. 20% of taxable income are compared, and you get whichever is less When you make a contribution out of your own account to your LLC as a member, are you taxed on contributions? No. It’s a contribution to an entity that becomes your capital and money you can take back out tax-free, if you haven't used it to recognize losses What is the best business structure recommended against asset, structure, and personal protection? With any passive activity, use a passive entity - LLC taxed as a partnership/limited partner; whomever has control of entity decides what's distributed What is the best way to set up QuickBooks when I have a Wyoming Holding LLC and several other LLCs holding real estate in other states? Create one set of books with Wyoming LLC as the primary; do a classified income statement for other states What are the tax forms for 501c3? Use Form 1023 to apply to be an exempt charitable organization; yearly recording forms include 990-N If someone has rentals in their self-directed IRA, how are they impacted as UBIT - does it make a difference on the number/dollar amount? No UBIT, if it's a rental; UBIT is for an active business inside an IRA; passive income is almost always exempt Can I have recourse debt in a 401K or IRA? Can I have non-recourse debt? You can’t have recourse debt, but you can have recourse debt What are my options to re-distribute funds from one LLC in several entities to separate investments? You can always move it from one to another with no tax implication Can I write off costs for rehabbing out of the country? Yes. Worldwide profits; if it's income-producing property, you report it to the United States I lent money to a real estate flipper. She gave me a promissory note, but it wasn’t recorded with the deed of trust. Now, she is in default. Can I foreclose? Document it because you can’t foreclose until you file your secured interest Is there anything I can do to reduce my taxable income? Yes. There are lots of things you can do - make contributions to qualified retirement plans, charities, and C Corp I purchased a new computer that cost less than $2,500. Is that a straight expense in the current tax year or some weird depreciation thing? Section 179 deduction; you can buy up to $1 million and write it all off For all questions/answers discussed, sign up to be a Platinum member to view the replay! Resources U.S. Social Security Administration Trump’s Tax Plan 199A Deduction QuickBooks Tax-Wise Workshop 501c3 Unrelated Business Income Tax (UBIT) 990-T 990-N Section 179 Deduction 1244 Election Kiddie Tax Anderson Advisors Tax and Asset Prevention Event Toby Mathis Anderson Advisors   Full Episode Transcript: Toby: Hey, guys. This is Toby Mathis with Jeff Webb again. Jeff: Good afternoon. Toby: If you don't know, Jeff Webb's a tax manager here, and I am one of the partners. I'm not an accountant but I'm an attorney. Jeff is actually a CPA. This is Tax Tuesdays. If you've never been on Tax Tuesdays before, all we do is answer all sorts of questions. Let me see here whether I've got the right question field up. Look at that. We've got a bunch of people asking questions. Let's see. We'll get to all your questions, making sure you can hear us in the question and answer part. Just say, "Yes, I can hear you loud and clear," to make sure that we're getting through to everybody. If you do that, then we appreciate it. There we go. I'm getting a whole bunch of "loud and clear", "loud and clear", "loud and clear". All right, if you don't know the format if Tax Tuesday, it goes like this. We answer a whole bunch of questions. We answer the questions that people ask via the email that I'll be giving you at the end of the webinar, and we grab a whole bunch of them, and we just start answering them. If we can't answer the question or the question that you ask is too complicated, too specific, too long, then I grab it and kick it off to a staff or we answer it the following week, depending on how cool a question it is. That being kind of the overview, this is where we're at. We're going to go through these and we're going to make sure that we're answering all the questions. Let's see if I can actually make these slides advance. Look at that. That's weird. I didn't even know what that W there is. It's kind of cool. "Will the income I earned by lending my money to my real estate investors reduced my social security benefits or increased my taxes on them?" That's an interesting question. There's, "How do I get a 20% deduction?" I'm picking these literally from people's emails so don't yell at me for the typos. "When you make a contribution funds to your own account to your LLC as a member, are you taxed on contributions that you contribute to an LLC?" "What is the best structure–" and that is the weirdest thing I've ever had. "What is the best structure recommended against asset, structure and personal protection for a Multi-Family Home Investor acquiring and holding rental properties, especially if working–" and I'm going to go through each one of these. "What is the best way to set up QuickBooks when I have a Wyoming Holding LLC and several other LLCs holding real estate in various other states?" Those are our opening questions. We have a few more. We're going to go through a ton of them, and I'm already getting a bunch of questions on the Q&A portion. We will get to those but, first, we're going to knock these ones out. The first question: "Will the income earned by lending money to real estate investors reduce my Social Security benefits or increase my taxes on them?" The first thing is there's the benefit itself. In this particular question, I looked it up and I believe there were 61, so they're receiving Social Security benefits before they reach the full retirement age. Full retirement age varies between 65 and 67. The reason this is important is because, once you reach that age, it doesn't matter what you make. Until you reach that age, you will have your benefits reduced on what you're receiving. When you're pulling out Social Security early, 50 cents on the dollar once you get over $17,080.Of course, it's indexed for inflation, but it's a little bit over $17,000. I think this year it's $17,080 or something like that. What that means is, if you are lending money, then that would be counted as income. However, if you're under the full retirement age, they only count earned income. The question here is, "Until you're at full retirement age, will the income earned by lending money to real estate investors reduce my Social Security benefits or increase my taxes on them?" The answer is a big, resounding, "No." This will not hurt you in any way. Once you hit full retirement age, now we have to be worried about how much of your social security becomes taxable. When they look at your tax ability of the benefit, now we're looking at all sorts of income, everything that you make, and it's going to push it up. That's the one where it's not that you reduce the benefit but it becomes taxable. Jeff: Fairly quickly, additional income starts making your Social Security benefits taxable. They're never going to be more than–85% of your benefits are never going to be taxable. I'm saying this totally backwards. Toby: What it means is that the most they're ever going to tax your benefits is 85% of them. If you're getting $20,000 of benefit, the most you'll ever pay tax on is $17,000. You'll still get $3,000, tax-free. The sad part is you didn't get, really, a deduction when they took it out the first place. That's the old double tax that you hear about with Social Security. Anything else you want jumped into? This is kind of stuff. It makes your brain go numb so you're doing it right. You're actually asking good questions. Jeff: Just the matter of when you should take Social Security is such a huge question. Toby: Because you can start taking it. When is the earliest, is it 64? Jeff: I'm going to say 62, but maybe it's earlier depending on their age. Toby: It does depend on their age. There is a before-a-threshold and after-a-threshold. Now, I forget what the threshold is. What you do is you go to the Social Security Administration and you run your scenarios and they'll give them all to you, or you can contact us. We have folks we could send you out to that have software because it is complicated. Depending on what month you were born in and all that stuff, how many days–all of this gets factored in as to what's the earliest you could start receiving benefits. Once you start receiving the benefit, they let you receive that benefit only so long as your income is low and it's your earned income. If you're trying to get the benefit when you're 62 and you make too much money, you're going to lose a bunch of the benefits. If you start making–if you're 62, start pulling out the benefit and you have passive income, not that big of a deal; it doesn't reduce it so that's really cool. Enough of that. It makes my head hurt, Social Security. Do not rely on Social Security. There, I said it. Yeah, Social Security is one of those things that, when it was set up, the average life expectancy of people on Social Security was two years. It was really there to catch you if you're really old and didn't have any other benefits. Now, we use it almost like it's a retirement plan that's not what it was intended for. That's why it doesn't work to do it. Here's the next one. "How do I get the 20% deduction from Trump's Tax Plan?" First off, it's not Trump's Tax Plan. It's the Tax Cut and Jobs Act and it was passed by our wonderful Congress because, technically–though, they seem to forget this–Presidents don't write laws. Now that we got that out of the way, they did put this thing called a 199A Deduction, which is a 20% deduction on qualified business income from pass-through entities. Follow me here. The first thing we need to have–and I'm going to write these up–is we need to have a pass-through entity, and you can be an LLC taxed as–this is a 1065 that's partnership, a sole proprietor or as an S Corp. Those are your choices. Technically, it could also be a trust. Then, you look at other entities, S Corps and just flat out partnerships, including limited partnerships, all that fun stuff. It's passing through; it doesn't pay its own tax. Then, you need qualified business income. I'm just going to call it QBI, which just means income. Generally speaking, it's active income, but they also include real estate, if you are making money on real estate in which you participate in some fashion. The only type of real estate that's not included as far as we can tell–because they're still giving us regulations on it, but the proposed regulations make clear that real estate, rental real estates included, is if you have a commercial building and triple-net leases that you're giving out where you're not really taking on much of the risk, then they're not going to let you have the qualified business income. Then, they compare that qualified business income 20% deduction versus 20% of your taxable income, whichever is less. Why is this important? Because if I'm a sole proprietor–let's say I have $50,000 that I'm making–that I would get a $10,000-deduction under the QBI. Let's say that I take and contribute into my retirement plan–a husband-and-wife sole proprietor is still the same thing, and they both put in–what's a good number–let's just say $10,000. Then, my taxable income is actually $40,000 because I rode off–I made tax-deductible contributions into my IRA of $10,000 so I would take the lesser of that. Then, they do this wonderful thing, is they then say, "Well, if it's a special service company, we're going to put a cap on how much QBI you can actually make." It's not really QBI; it's actually your taxable income, and they say, "We'll only let you ride off so long as your taxable income is below a threshold." If you're single, that threshold is $157,500, and there's a phase-out for the next $50,000. To make your head spin, it goes from $157,000 to $207,500. That's the easiest way to look at it. If you're married, filing jointly, those numbers are $315,000 to $415,000. Jeff: What's an example of a special service? Toby: Special services are something that it is you and your skill that makes the money, and they use–it's going to be doctors, lawyers, accountants, engineers, real estate agents who are solo, somebody who–it's their skill so like a carpenter who doesn't have a bunch of staff. That's going to be a special service. If you get above those thresholds, you are done. Somebody's asking a question which is pretty interesting. A single-member LLC counts. You have a flow under you so that's when you're sole proprietor or just going under your tax return that's passed through entity so you're fine. The interesting here is that you can control your taxable income. Even on those thresholds–and when we teach this in the class, we actually go through a learning chart where we say, "If this, then this. If this, then this." If you're a special service, we just need to make sure that we can control your income, and the way you control your income is by splitting it with tax-free, tax-exempt or separately-taxable entities. Let me give you an example. If I have a C Corp and it makes a bunch of money, great, that's not income to me. I don't want to pay myself a whole bunch of money and make whatever my other business is that is or where I'm going to meet the threshold taxable because I'm losing that 20% deduction. Let's say I have $200,000 coming in. As an individual, I can get some donations and deductions into a retirement plan and I get myself underneath that $157,000 and I have another $200,000 in C Corp that I pay myself. If I leave the $157,000 as is and I don't take any money out of the C Corp, I'm going to get a 30-something thousand dollar deduction. It's just going to come off the top. It's a 20% deduction so almost like I spent. If I took the money out of the C Corp–and, by the way, that C Corp is a flat 21% tax rate now so it's going to pay 21% so it's not horrific. If I paid myself that money, I push my taxable income over the threshold, now I get 0 deduction on my qualified business income. That's why it's important. If it is not a special service, then those thresholds trigger something else. It takes us to an area where we can write off up to 50% of the W2 income or 25% of the W2 income for the business plus 2.5% of the assets. Jeff: No, you're right. I'm just jumping ahead of you. Toby: Yeah, so what we're looking at, then, is you better have a regular business that actually has salaries. If you, for example, as a sole proprietor, single, are making–what would be a good example–$200,000 and you're over the threshold, you're phasing out, you'd have to go to the second test. You're over the 157 and the second test is now pushing you at 50% of W2 wages, and you have zero so your deduction is going to be zero. You're going to get literally nothing. You might get a few dollars because you're not quite at the 207, which is the top line of the actual phase-out so you'd be phased out about 90% plus of the benefit. Now, let's say you converted that sole proprietorship to an S Corp and, instead, you paid yourself a salary, so same situation, $200,000. Let's say I paid you $75,000 of salary. Then, the QBI or the monies that's flowing through is actually the net income and net profit, so you'd subtract the 75 off. It would be $125,000. You compare 20% of that number, which I should grab the calculator, whatever that number is. Jeff: It'd be 25,000. Toby: Yeah, 25,000, and we would compare it to one-half of the W2 income, which would be 37,500. You'd get the lesser of the two. You'd get a $25,000-deduction just because of the type of entity. That's the one I have to do. Somebody just said, "I have almost 300K in real estate and other income. Is there anything I can do?" A single person? Yeah, there's something you can do because, remember, it depends on whether you're special service and then it depends on the business, and there's one last thing: It always comes down to your taxable income. "What other ways can I use to control my taxable income?" The most obvious is I split it with a C Corp, I give it to charity–and it could be my charity–or I deduct it by putting it into a tax-deferred retirement plan. For example, same situation, I'll use the $200,000 and they do a 401K. They put a husband and wife each–they're under 50. They each contribute 18,500–or, actually, the example I used was a single person so I would have to say I put 18,500 and in, and they get a 25% deduction on the 75,000. They would put in–again, I'm using crazy numbers so what would that be? About $18,750 or whatever that is–around under $19,000. I can put, in essence, about $37,000 right into the 401K, and that reduces my taxable income. The taxable income goes from 200 down to almost the threshold, and now I don't have to worry about it. It makes my life so much easier. I'm just going to get a nice big, fat deduction and I'm happy as a clam. That's how this stuff works, but if you don't do it before the year ends, you're toast. This is going to be my–this is why you need to have some sort of somebody doing tax planning. How do I get the 20% deduction from the new tax act? Very deliberately. You make sure that you have the income flowing under your return and then you make sure that, if there's a disqualifying factor that would cause you to lose it, that you look and say, "What's better? To just walk away from it and not worry about it or would I be better to take a couple of actions to allow myself to take advantage of the deduction?" It's a freebie, guys. If I make $20,000 in real estate, that rental real estate–that's my net after all my depreciation–I get a $4,000-deduction. I'm only recognizing 16,000 under this taxable income so that's a nice little benefit especially if I'm a high-income person so that's what I'd be looking at. Jeff, do you want to do this one because I'm […] barding the answers again? Jeff: No, that's alright. "When you make a contribution out of your own account to your LLC as a member, are you taxed on contributions that you contribute to the LLC?" No, actually, you're not. That is a contribution to an entity that becomes your capital, your owner's equity–we can call it a lot of things–your owner's capital in that company. That's actually money that you can take back out also tax-free assuming that you haven't used it up to recognize losses or maybe other things like that. Toby: We get that a lot. I'll give you a real-life example. Some guys were doing a syndication on apartment buildings and they were telling people, "Hey, we're going to return your capital out of the profits and you're not going to have to pay any tax on the money that you receive up to your investment." I said, "Hey, that's not really the case." Here's how it works: I can always get back my contribution, and it's tax-neutral; it means nothing. If the company makes zero, no profit, it can always give me back my money and I pay no tax, but if the company makes money, I'm taxed on my portion of that gain no matter what even if they're giving me extra. I was like–what they were doing was they were saying, "Here's a little thing. We'll make some profit. We'll just give you your money back. You want to pay tax on it?" I was like, "No, that's not how it works. You actually have to pay tax on the profit in proportion to your ownership, and it's a little bit funky." Jeff: This is a case that, sometimes, we see where a client will tell us, "I had deposits of $100,000 into my business," and what they fail to tell us is that 50,000 of it was their own money. We want to make sure that we're able to differentiate what the owners are putting into the company versus what income they're making in the company. Toby: There's a couple of questions. Somebody says, "My head is spinning." We do record this. If you're platinum, you're going to get a recording of it in your little platinum area. Somebody asks, "Is this pre-recorded?" No, it's not. We're doing it live but I'm answering the questions that people have emailed me first and, yes, we have about 50 questions that are in the queue that we're going to go through here in a second. Jeff: We don't have a three-second delay or anything? Toby: No, I don't think so. I could give you a 10-second delay. All right, "What is the best business structure recommended against asset, structure and personal protection?" I don't know what that means. I'm going to assume they mean to protect the business–for a Multi-Family Home Investor acquiring and holding rental properties, especially if working as a team member with other investors? Here's what I'm going to say: Anytime you have a passive activity–that is, when you buy the property or the cash flow and the appreciation–you're going to want to use a passive entity, meaning an LLC taxed as a partnership or a limited partner. Don't do anything else. That's it. There's maybe some really weird exceptions but I'm going to say, 99% of the time, you're going to end up using an LLC, and it's either going to be disregarded even if you have other people in or it's going to be a partnership. If anybody does anything differently, they're doing some weird stuff. If you have other investors, then it depends on your relationship with those investors. I'm not going to going to get into securities, Reg Ds and all that but, generally speaking, you're going to have it taxed as a partnership, but the most important consideration is always going to be control, who has control of that entity, because that's who decides what's distributed. That partnership agreement or the operating agreement of the LLC is really going to be important. You do not want to do this stuff half-arsed. You want to make sure that you're actually really addressing this stuff. At Anderson, we tend to be very protective of the manager, meaning we want you to have control. If it's your project, we don't want people to force you to do stuff and, on the flip side, if you're investing and you're a client, we're always going to say, "You don't want to be forced to kick in more capital against your will." Those are the things we always look at. Where does that one go? Here we go. "What is the best way to set up QuickBooks when I have a Wyoming–" and this is going to be so you, Jeff, because Jeff loves QuickBooks. "What is the best way to set up QuickBooks when I have a Wyoming Holding LLC with several other LLCs holding real estate in various other states?" I'm going to draw this. There's my Wyoming LLC. It's either going to be a 1065 or disregarded, and it holds all these cute little LLCs in other states. Let's say this is Texas LLC, Washington LLC, Nevada LLC, Georgia LLC, and they're all going to flow up to that Wyoming. I want to keep my books straight because, if you know QuickBooks, they will sell you QuickBooks for this one, this one and this one. You'll end up with four sets of QuickBooks and you'll drive yourself crazy. What do you do, Jeff? Jeff: Here's what we like to do: We like to create one set of books with the Wyoming LLC at the top being the primary set of books. Then, what we do is what we call a classified income statement where each of these four LLCs below the Georgia, Nevada, Washington and Texas where they're all kind of their own set of books within your Wyoming LLC books. All this income is going to flow from those bottom four up to the top one anyway and, while we need to keep the entities separate so we can report them that way, ultimately, what we're reporting is what's coming through the whole kit and caboodle. Toby: Yeah, we only need to worry about setting up QuickBooks for this guy right here, and then we set up these guys as classes. All that means is we have one set of books. Jeff: Yeah. You can still pull an income statement for your Georgia LLC or your Texas LLC to see what's just in that but, all in all, you still have one set of books. It makes it easier and you don't have all these inter-company transfers that you have to track. Toby: Oh my god. I'll tell you, we're horrible on that. He's giving me the look. See, here's the problem, is if you have different companies with different sets of books, you've got to close out the previous sets of books and then open up the new company. It's a process and it takes a few minutes and it's really annoying when you're trying to enter stuff into it. It's going to save you a whole bunch of time to use one set. Jeff: Yeah, then you don't run into things like, "Well, I transferred money from Georgia, the taxes that I did it, I record it in both companies." When you record them on one, you end up re-recording it in both. Toby: Yeah, and there's some fun stuff. Some of them just ask for a basic QuickBooks question, jump in the line. It's hard to set up classes in QuickBooks, not horribly, but if you don’t want to learn–QuickBooks is one of those things where you're going to spend some time with it. You just have a bookkeeper do it. Anderson does that if you want. All right. If you have questions–you guys, I know you do because there's a ton of them already in the little queue here. Here's how it works: If you want to ask a more detailed question, if you have a question that you didn't hear answered on the webinar, you can just email them on in to webinar@andersonadvisors.com, and, that way, we can put it in that queue and we can answer it just like we just did. We're going to break those out. Those will be separate little videos, each one of those, so that you get your answer. Somebody was saying, "My head was spinning about 199A." You can go back and listen to that. Better yet, you can come to some of our other webinars or come, actually, to the Tax-Wise Workshop and we go through this stuff. Spend some time with us. If you invest a little bit of time in taxes, it will pay off in spades. Other questions–some people just answered this stuff. "Can you go over the tax forms for 501c3? Jeff: There's a couple of forms for the 501c3. To apply the BF 5O1c3, there's what's called the Form 1023. It's the application to be an exempt charitable organization. Then, there's several different yearly recording forms. The 990 is the primary one where you report, among other things, what your income was, what your balance sheet looks like, your plan, your purpose, who you've dealt with. What were you going to say? Come on. Toby: Basically, if you're making less than $50,000 in your 501c3, you're doing a 990 post-note card. You're just doing a real basic here. Literally, it looks like a postcard. Jeff: They don't do that anymore. Toby: I thought they're still– Jeff: All these old people still call it postcards, but it's a… Toby: They do that in the 10… Jeff: But it's a 990N and it's filed electronically. Toby: Yeah, I know but it's the same thing. Jeff: It's still close. Okay. Toby: It's a postcard. Oh, my god. Yeah, you do it electronically now but it's really simple. You go above that, then you're going to be filing a little more detail. You get about 250, you're filing very detailed. Never do it yourself. Just hire an accountant to do it, and those guys–we do them. They're not horrifically complicated unless you have a huge void that everybody's taking money. You go American Red Cross, you can go look at the actual tax forms that everybody files because they're all public record. You can go in there and take a look at anybody and see just how complicated it is. What you'll realize is that the more the stuff they're doing, the more complicated it gets, and not doing ton it is pretty simple. We have ones that are $5 million non-profits and it's a few pages. Then, you have ones that are $1 million but they've got everybody and their mother with their hands in the thing, and you're doing a lot of reporting. That one might be more complicated. If you're a church, you don't file anything. If you're religious and you're a religious organization, you don't file anything; you file zero tax forms. Jeff: When you have an accountant do these 990s for you, they're going to ask you a lot of questions because there's a lot of questions on the form that they don't have the answer to, basically about what it is the non-profit does and things like that. Toby: All right. "If someone has rentals in their–" basically, again, if you have those tax forms, this is one other thing, is that's the tax compliance on an annual basis. If you're setting up a 501c3, you are doing–more than likely, 501c3 is an application called a 1023. If you're doing a 501C6 or some of these others, that's a 1024. Jeff: Wow, I'm impressed. Toby: Yeah, sorry. It's stuck in my head. Those are the applications for exempt status. Your business, your non-profit, is in existence and it's considered exempt from Day 1. Even though you haven't gotten your exemption approved, you actually have 28 or 29 months to get approved, and it relates back to the day that you started. You can actually do a 501c3 and be up and running in a matter of weeks if you want to. All right, from Lisa: "If someone has rentals in their self-directed IRA, how is it impacted as far as unrelated business income tax (UBIT) and does it make a difference on the number or dollar amount?" You want to do this one or would you like me to? Jeff: Why don't you do this one? Toby: All right. Self-directed IRA and it has real estate? You have no UBIT if it's just rental. That's not unrelated business income tax. Unrelated business income tax is when you're doing an active business inside an exempt organization, inside an IRA, or church, or something else, and you're running a mini-mart then they tax you on it because it's unrelated business income so not related to your exempt purpose so they tax you on it. Passive income's always going to be–I shouldn't say "always"; it's almost always exempt. I guess there's possible–if you have some royalty stuff, it's possible, if you're advertising, that the exempt organization tax, but for your IRA for rentals, don't worry about it. Here's what you worry about when you're doing an IRA with rentals: It's usually the case–this is what we've seen–is that people will oftentimes want to lever that real estate. In an IRA, you have something called–I'm just going to blank on it–unrelated debt financed income. There we go, UDFI. Unrelated debt financed income means–or just call it debt finance income–the portion of the profits that are coming from the debt. If I have a piece of property, I have a 50% loan on it, then 50% of its income is going to be taxable to the IRA. It's not allowed to have that type of loan and not pay tax on it. A 401K is allowed to have that type of loan, and it doesn't pay tax on it. It's one of those weird things where you're like, "Hey, should I be an IRA or 401K?" More often than not in our world, you're going to want to be the 401K. It has different rules, and one of the big ones is the ability to use debt. Now, here's something for you. I think I had poll questions on this. This is fun. I'm going to send a poll out to see whether you guys are listening. You guys can answer this, and what it is, "Can I have recourse debt in a 401K or IRA?" Let's see about that. Isn't this kind of cool? Jeff: It is cool. Toby: We're going to see whether or not you can have recourse debt in a 401K or IRA. For those of you who don't know what recourse debt, recourse means, "I can go after you. I have recourse, and I can go–" basically, a personal guarantee, personal guarantor. We got a lot of people voting. I will share the results with you once we're there. Jeff: What if Lisa is flipping instead of renting in an IRA? Toby: Then, we don't have any cases on it. Jeff: Great. Toby: What we always say is do five at a max. Here's the thing: If you disqualify an IRA, the whole thing's disqualified. What I want to do is if I'm flipping in a self-directed IRA, I want to make sure only that money is in that IRA so if I have a disqualifying event, it's only for that one little IRA. So, I may have two or three IRAs. Good news: People are listening. That's always good news. We have about–50% of you guys voted. I'm going to go ahead and close this thing in about a few seconds. Let's see. There, I closed it and now I'm going to share it with you. Do you want me to tell you the answer? You cannot have recourse debt. 36% of you guys just disqualified your plans, and you have a 10% penalty plus it's all taxable. Sorry to say that you just destroyed your plan, but you cannot have recourse. This is half the fun. What's the next question I could ask you? I could throw up another poll at you. Let's see. Get out of there. Let me see if I can do this. All right, what's the next one? Here's a better one: Now that you know you can't have recourse debt, I'm going to launch a new poll. "Can I have non-recourse debt in an IRA or 401K?" This is where accountants and tax lawyers have– Jeff: Disagreements? Toby: No, this is where it's so much fun. Are you kidding? Let's see. Somebody's saying, "No." What is non-recourse? Non-recourse means you can't hold the person responsible. There's no personal guarantor. You can only go after the property so the property is truly asset-based lending. There's nobody on the hook for that loan if it goes south. A typical non-recourse loan in a plan–this is kind of cheap because it's going to give you the answer–is they're going to look at the other plan assets and so they're going to secure the other plan assets. They're going to make sure that they're not over-leveraged. In other words, they're not going to give you a 99% loan to value; they're going to give you a 60% loan to value or 50% loan to value. We'll see if you guys still get the answer even though I just basically gave it to you. This is fun. I'm just going to stop this one and I'm going to share it because the numbers are pretty done. It looks like 86% of you said, "Yes." Can I have non-recourse debt? 86% of you are correct. You can have recourse debt. Here's the trick: In an IRA, that non-recourse debt creates debt finance income so you have to pay tax on the portion that you're making but it doesn't disqualify your plan. In a 401K, you do not pay the debt finance income, and some of you guys are not too pleased with me for that, but I'm getting giggles out of it. That's enough with polls. I could have polls all day long and we would have a lot of fun. Last one: "I hold some assets in LLC–"and, by the way, this is the last one from people that have shot it in but it says, "You don't pay tax until withdrawal, correct?" No, if you have debt finance income, you're paying it in the year in which the debt finance income–you actually file a 990 T. You actually have to report it. "I have some assets in an LLC that is a day-trading entity." You're brave. "If this generates sizable profits–" I just love traders. "What options are out there to re-distribute funds from one LLC in several entities to the separate investments?" You can always move–if it's yours, it's like–an LLC is a safe so I can always move it from one safe to another, no tax implication. This is one of the questions we had earlier. I can always put money in, take it out. Somebody was talking about an opportunity zone. The opportunity zone's awesome. It's where you take capital gains and invest them in the opportunity zone. It's actually called the growth opportunity zone, and you defer the tax on that income. The max amount you can defer that tax is until 2025 right now. Then, you get a portion of that as non-taxable. Then, the growth–if you leave it in the opportunity zone for 10 years, all that growth and the gains on the investment itself are tax-free, and that's pretty interesting. Growth opportunities, we'll be talking about that as they give us more information. Somebody says, "Can you take the poll down?" I thought I did. I'll make sure polls, hide. There we go. Sorry about that, guys. Everybody's telling me, "Flip off the poll." I'm flipping it off. I like your opportunity zone discussion, and think about a bank, and loan out funds to other LLCs you use. You could do that. Then, it's interest unless it's all you. In which case, you don't charge yourself interests. "I am told that funds in an LLC are much like funds in a savings account. I pay taxes on the gains my funds make, and funds can be withdrawn at any time." That is true as long as it's disregarded or taxed as a partnership. I want to make sure that we're very clear. LLCs that are partnerships are disregarded. Yes, you can do that. If it's an LLC taxed as a corporation or LLC taxes in S Corp, little bit different. An S Corp probably has a huge difference. Jeff: Yeah. You can even pull securities out–even if it's a partnership–pull securities out and put them somewhere else. Like what Toby's saying, if it's an S Corporation or corporation, if you pull securities out of a corporation, you have to recognize gain immediately. Toby: It sucks. Appreciated assets is considered wages, right? Use an example here. Jeff: We had a client who had a couple of $100,000 of securities in a corporation, wanted to move it somewhere else, and we tried to explain to him that if he pulls securities out that are now worth 250 and he's only got a basis of $100,000, he's going to have capital gains of $125,000 in that corporation. The corporation will pay gains and then, for you to take it out, that's got to come from somewhere else, so either a salary, roan repayments or dividends. It doesn't work out well. Toby: No Bueno. The other one is people that real estate in an S Corp and then they need to take it out to refile it or something. All that appreciation is wages. It's horrific and so we have oftentimes say, "Hey, if you're going to do this S Corp, it's cool." The capital gains still flow down to you; it's just that you can't take it out. You've got to leave it in there. Jeff: Can we  re-running into that more and more where the banks are running to take it out of the LLCs and stuff? Toby: They got horribly hosed during the downturn of people doing weird stuff. What happened is I would do a financing in an entity. Say I'm the owner, and then I would sell Jeff my ownership and the entity and the bank had no idea that I'm no longer the guy that they were dealing with that they gave the loan to in their mind and had sold his interests. They had no idea. One day, Jeff comes back in and says, "By the way, I'm the owner of this LLC, not the guy that you loaned the money to." No Bueno. They don't like that. All right, we got a lot of questions to go through so if you have questions, you can always email them in. I'm going to start going out through these things, and we have questions from almost an hour ago. People were asking questions before we even started. "I did a cash-out refinance from my residence to invest in private lending or to buy rentals. California only allows 150,000 to deduct interest expense for residence." That's actually the new federal rule. "For the portion that is more than 750, can I deduct the interest as investment expense?" All right, so here's the rule–and, Jeff, I'm [...] barding, but I deal with this stuff all the time. Your new limit is–unless you owned your house prior to–during 27 and perhaps during the first quarter of 2018 if your loan was already in process before December 15th of 2017, don't try to remember this stuff; just know that if you're in that weird period, you may qualify, then you're up to a million, but it has to be for acquisition indebtedness. Acquisition indebtedness means, "I bought the house," or, "I improved the house." That's for the mortgage person to be deductible on your Schedule A, which is your itemized deduction. If you're using the money for something else, then it has to be deductible on that something else. For example, if I am buying rental real estate, then the interest–you'd be writing off the interest on your Schedule A, essentially, against the income from that rental real estate. You are no longer writing off your mortgage interest personally as the individual residing in it; you are now writing it off as part of an investment. Anything you wanted to add on that? Jeff: No. If we're talking about buying a piece of investment property like you're just going out and buying more land, hoping that it'll go up in value, then it would be considered investment interests and go back on Schedule A. Typically, we want to keep it–if it's in a business interest or rental property, something like that, we want to keep it there. Toby: Again, the Canadians have been dealing with this for a lot longer than us guys. You cannot write off interest if it's not for your home in Canada unless it was used for an investment. People actually have to go re-file their houses, they get all the cash they could, pay down their house, re-file it so they could show that they used it for an investment so they could actually write off the interest. I think it was called Scotts transactions. It's weird. Hey, I'm not Canadian. This is another question: "Say I deducted a newsletter subscription in 2017 but received a refund for it in 2018. Do I need to add this back as income in 2018 or no?" If you wrote it off and it means your basis is zero, give you the money back, what does that sound like? Jeff: Income. Toby: Income. It is income. At the same time, I see people saying, "Hey, what if I reimburse myself from my cell phone out of two companies?" Now, each reimbursement represents–I said, "Well, you can reimburse yourself up to your expense. Anything above that is income so it becomes taxable." Fun stuff. Yes, you would report it, but only–your cash basis tax first. You report it in the year that you received the money back. "You've saved me so much money. I call y'all my friends." I love that when I get stuff like that. That's not really a question but I'm going to repeat it because it's better than, "Flip off the poll." Not that I had too many of those, but I had a few. "Can I write off costs for rehabbing out of the country?" This sounds like something for Jeff. Can you write off? US taxes. Jeff: Yeah, you do have investment in another country. Toby: Worldwide profits, baby. Yes. Jeff: If it's income-producing property, you're going to be reporting that to the United States. Any expenses you have on that property will go towards that also. Toby: If you're rehabbing a property, it sounds like dealer activity and active business. I may be little interest–I probably want to be looking at structures in the Bahamas if that's where it is. I'd be looking at something that's taxable there so you don't get into treaties and all sorts of fun stuff. "Do I have to pay $800 off the top to the franchise tax board when we start our corporation?" Jeff: No, California has an exemption to corporations that are first year only. Toby: Yeah, and that $800–this is, if you like tax cases, there's Veritas 1, there's Veritas 2, there's Northwest Energetic Services, there's Bakersfield Mall, and they're all versus your friendly–what is it called? Not the franchise tax. No, it's whatever. I forget what they're called. Jeff: We know what it's called. Toby: Yeah. Anyway, I'll remember it as soon as I could. I'm trying to think about it, but they keep suing the Board of Equalization, the BoE. It's $800 and they say that's the minimum tax, but they say, really, it's a fee because if it was a tax, then it'd be an unconstitutional tax because it's not attached to the income. They keep trying to call it a fee. They lose and then they change it a little bit and they lose again. That's just an aside. California is kind of evil. "We live in Washington. We have a Nevada C Corp which fully owns a watch and LLC and employs the kids. What are the recommended strategies to optimize for college tuition?" Wow, so you're doing a great thing. You are going to run them through payroll. When you're applying for things like scholarships, if it's going to be based on income, you're going to show that income. You're going to show those returns, but those kids should–most of that income is going to probably be underneath the standard deduction. Right now, it's $12,000. They're going to pay zero and they're going to pay very little on any amount over that. Plus, if you're smart, you're putting some of that money in a Roth IRA and they're never going to pay tax on that. It's smart to do this with your kids. If I paid tuition out of my tax bracket, it's coming out of my highest tax bracket. If I'm in the highest tax bracket, that's 37%. If my kids pay for their tuition and are working for the company, and they have to do something, then they pay at a third tax bracket, which, quite often, is zero. I do this with my own daughter. Last year, I think we paid $500 in taxes total for the year when it cost me $8,000 if I was doing it, but she has to do something. She has to actually work for the company and do stuff for the company. Other stuff you could do to optimize is dump it into–defer it into a retirement plan. If you want to do a 401K, they can put the first 18,500 of their income and they can defer it. You're still reporting it. I'm not sure it'll have an impact on scholarships or not. I have not seen it have much of an impact, but that's what I'd be doing, is the benefits far outweigh anything with this on the scholarship side. It is huge. Here's one: "I lent money to a real estate flipper. She gave me a promissory note, but it was not recorded with the deed of trust. Now, she is in default. Can I foreclose?" When you loan money to a flipper with no deed of trust, that's called a gift. I'm just kidding. You need to make sure that you're documenting it. You cannot foreclose until you actually file your secured interest. You got to have it filed and then, yes, you can actually start foreclosure proceedings if you want, if they don't pay it. You definitely want to make sure that, when you're giving notes–there's something called "first in time, first in right". You want to make sure you know it's recorded and you have your deed of trust against that house. Otherwise, somebody else could go slap theirs on first. There's also places where they get priority. In Nevada, for example, the HoAs get super liens. They actually step in front of the primary lender. It sounds weird but it's true. You want to make sure that you're documenting your loan and covering yourself as best you can, make sure that you're getting a personal guarantee and, if they have any other assets, you may want to slap a lien on those, too. All right, "With a new company, there's quite a lot of expense reimbursements. Since I don't have a lot of revenue yet, I haven't paid it back. Is it okay to carry it over a year or should I go ahead and pay it back even though I'm still in the red?" Jeff, this sounds like you unless you're zoning out there. She has a new company, she has lots of expenses, she doesn't have any money that she's made yet, so should they pay it back, carry it forward? "Can I pay myself, reimburse myself in the future year?" The answer is yes, you could reimburse yourself whenever. The question really becomes, "Do I want to capture all my startup expenses in the first year?" Jeff: Yeah, I think you do. You want to capture as many expenses as possible even if you're not getting directly reimbursed right away. Toby: Yeah, you have two choices whenever you fund a company. You can fund it with your cash and then it's going to have a loss and it's going to carry that loss forward if it's a C Corp. If it's an S Corp, you can actually take that loss. I've contributed $20,000. That's my basis and it loses 20,000 and, technically, I'd have a $20,000-loss with an S Corp. Usually, we're seeing this in C Corps, and you just carry it is a payable and a receivable. It's payable to you, you would say, "Hey, it owes me some money. It's kind of like this." I always use Krispy Kreme in my examples. I go out for Anderson and I bring in 12 dozen Krispy Kreme for a meeting or something, and the others say, "Hey, I'll pay you back but we don't have the money right now." It doesn't mean that it goes away; it means that I'm sitting there, waiting for them to pay me back. If they pay me back in two years, all it means is they can't write that off as a deduction until they pay me back so they're not going to have a loss if I'm carrying it as an IOU. If I give them the money to buy the doughnuts and they buy the doughnuts, they get the loss right away even though they haven't returned my money to me. They could return that money to me at any time. For me, it's always going to be tax-neutral. "Do I need to be on payroll with my real estate income or can I just take distributions from my LLC?" This is regarding Trump's 20% deduction on the plan. If it's investment real estate, you never have to take a seller as long as it's rental real estate. If it's flipping and it's in an S Corp, then you would have to take some salary if you're taking distributions. I don’t want to twist it. This sounds like it's just an LLC with rental property. You do not have to take it. The 20% is for 2018 onwards. If they think that it has a sunset clause, the end of 2025. Is it the end of 2025 that it ends? Jeff: Yeah. Toby: Yeah, so 2025. Here's a really long one. Boy, this is a really long one. Let me see if I can condense this. "I have a Wyoming LLC that is the sole member of a second LLC that is disregarded entity. I funded the Wyoming with 8,500 and the Wyoming funded the other bookkeeping QuickBooks balance sheet shows an owner equity 100% of 16,500. This is offset a balance sheet with capital contribution. While this does end up with net equity of 85, it gives the impression of the equity, which is incorrect. Is there a different way of handling?" Do you see what they're doing? Jeff: This is what we call–anytime you have combined financials or tax returns, you're going to have a–you may have a payable from one to the other where you've lent money to the other company, but when you do the combined financial or tax return, this is what you call an eliminating entry. If you lent $8,500 to one, those two entries are going to offset each other and it's going to be zero on your tax return. Toby: He's looking at it and saying, "Hey, they took the eight that I put into the second and added it to the 8,500 that I put in the first," and it's only 8,500 and then 8 went to the second LLC. Jeff: Yeah, I think you just need to clarify that it was the same money that– Toby: We're doing it and we'll take a look at it. We'll grab that name and, when we can, I'll print this out. "Can SMLLC, single-member LLC, disregard an entity under an MMLLC, which is a multi-member LLC taxed as a partnership, be converted to a single, multi-member LLC taxed as if–" you guys are killing me, "And would the tax changes be implemented?" What you're really saying, Billy, is, "Can I spin off a single-member LLC, make it into a multi-member LLC and change it to an S Corp?" The answer is yes. We just have to make sure that we follow the S Corp rules, which means there's got to be natural persons owning it, resident aliens–if it's somebody from out of the country, that they reside in the United States in certain trusts and even certain single-member LLCs. All right, to the question about–this refers to qualified business income. Sorry for lack of a better–no, Janet, you've already got it. "Since rental real estate is included for the 20%, are you also required to be a rep for that to be true?" No. You automatically get it. "High-tech network engineer, does it qualify as special services?" If you're not a network engineer and it's just you, then I would say probably yes. If you have a company and it's not so much you but your company has its own–like it's lots of people and it's just known, then the answer is no. Then, you're not. Jeff: Yeah, there were some specific carve-outs. I think the architects got a carve-out of this, but there's a few industries that have been specifically exempted from those specialized industries. Toby: I'm not sure but software engineer–I would say that if it's just you, chances are going to be under the special services. "When I file taxes, the taxes for the rental property show up on my tax showing a schedule form that is Schedule E. I almost $300,000 with my real estate and other income as a single woman." I think we already talked about this one. "Is there anything I can do to reduce my taxable income?" Yes, Janet, you can make contributions to qualified retirement plans. You can make contributions to charities, including your own. You can make contributions to C Corp if it has a business relationship. There are lots of things you can do or, if you have anybody that you need to pay salaries to like kids or somebody that's working with you, that would be something else you could do to lower the taxable income. "If you were writing out another slide, it's not showing up on my computer." Sorry, Sir. I think that's where all they go. "What about an IOL as a tax-deferred compensation for my property management income?" That would not work. An IOL is tax-neutral although you can do tax-deferred compensation where it's taxable to the entity and it's not taxable to you under certain circumstances. If I do tax-deferred income like, "Hey, I'm taking deferred compensation," I need to be at a losing. Usually, non-compete is going to be the thing that makes it work. We use these especially in the non-profit world where somebody says, "I don't want to be paid; I want to work, but I do want to get paid eventually for all the work I'm doing now. Rather than pay me this year, pay me when I'm 65 and maybe I wipe it out or not, but as long as I have a non-compete with that–" it's saying, "Hey, basically, if you go work for somebody else in a competing industry, you lose all that deferred compensation." You should be good. "I purchased a new computer that cost less than $2,500. Is that a straight expense in the current tax year or some weird depreciation thing?" Dean, it's called a Section 179 deduction. You can buy up to $1 million, you're good. You can write it all off. Otherwise, that would be depreciated. They also have 100% bonus depreciation, so we're going to catch it no matter what. Bonus depreciation is, if it's less than a 15-year property, you can write it off this year. You're not required to. Somebody says, "Is 199A or that 20% a 20% tax deduction or a 20% reduction?" No, it's a 20% deduction against your qualified business income. The net effect could be much more than 20% depending on your tax bracket. If you're not in a high tax bracket, then the net effect won't be huge. If I'm in the highest tax bracket in a state that's taxing me where I'm at 50%, that 20% deduction could be worth a ton. It could be worth significant amounts especially if I'm in a company that's not a specialized service and I meet the requirements. I could have hundreds and thousands of dollars of qualified business income being exempted, and that could be worth hundreds and thousands of dollars to me from a tax standpoint. We already did this one. Somebody who had their spinning left. You can go in bite-sized pieces, guys. We're going to break these things down, and I understand that we're going through fast, but that's half the fun. We're not dwindling around here. "My self-directed IRA received a K1 for net rental loss for a passive investment of $50,000. Do I need to file a 990 T to show loss? Does the IRA custodian sign the return or can I sign?" Jeff: Here's what happens: If your IRA is a partner in a partnership, that partnership is required to issue a K1 to all of its partners. That doesn't mean you have to do anything with the K1 in your IRA. You're not going to recognize any taxable income until you actually start taking money out of the IRA, especially since this is a rental property we're talking about. Toby: Cool. Hey, this is a really good one. By the way, if you ever do a 990 T and it says self-directed IRA, your custodian does have to sign, and they like to charge you for that. "401K, 401K." "I have a C Corp with accumulated losses and would rather close it than repurpose it. Is there a way to direct the loss of my personal taxes? Is it possible?" The answer is yes. It's called a 1244 election. It should have been made when you issued your stock. If Anderson did your C Corp, we already did that because I do it with every single corporation. You can then write off as a single person up to $50,000 or up to $100,000 if married, filing jointly, and then it could be used to offset even your W2 income. Jeff: Going back to one of the earlier questions, this is one reason we want to start recognizing reimbursements and stuff as early as possible to establish those debts to you early on. Toby: Yeah, I had this happen and we actually had–the one time this was ever audited was because this accountant refused to give him a $67,000-deduction. It was one of our clients who was a trader who was ready to launch and go into his business and then his employer made him an offer he couldn't refuse and gave him a whole bunch of our money. He took a $67,000-loss. He had never made a dollar in the corporation. We went under audit. We won. Yay. It took two seconds because it was a single letter and we gave him the law, and it's a statute. The IRS is just a policing agency. If there's a statute that's clear, they don't sit there and fight with it. I think it was a $38,000-reimbursement–what do you call it–refund. Awesome first-timer. We love first-timers. Thank you for joining us. "I want to receive an invite, a reminder to a different email." We can give you that. You can always use this when you register for the Tax Tuesday. Just put in your other email. "Interested doing sandwich lease options. What is the best business structure and what document can you provide to protect myself from sellers suing me if a tenant or buyer stops paying rent or if a tenant or buyer trashes the home?" That's a tough one. You're literally leasing it and then re-leasing it with the right to buy. Let me think about this one. How am I going to do this? I'm going to be doing that through an entity. The way you protect yourself is to keep very little amounts of asset in that entity so that if you're sued, it's not you; it's the entity itself, and the entity doesn't have much to lose. That's a tough one. I tend to stay away from stuff like that. I want to buy the property and then you do a lease option in an LLC. Jeff: Make sure you have insurance. Toby: Yup, make sure you have insurance, too. That could happen so the tenant trashes the place and somebody else says, "Hey, wait a second." That's why there's always risk. What you do is you just keep it to a low. "Is it hard to set up classes in QuickBooks? Does Anderson do this?" It's not hard and, yes, we do it. "How long does it take to set up a class in QuickBooks?" Jeff: No, you'd have to ask bookkeepers. Toby: Jeff's such an accountant. Yes, it's actually very easy. Jeff: Actually, the bookkeepers are really good at it. They do it all the time. Toby: It's literally all you're doing, is setting up another class. It's almost like a revenue class so you might have revenue that comes in from plumbing and then selling products in your plumbing business and then, "Hey, I have one that's a consulting," and that might be another class. It literally takes two seconds. "What if the Wyoming LLC owns a C Corp which owns an LLC?" I don't know what that means, but what we mean is–I imagine for the 199A. We're just going to look at it is the C Corp owns an LLC that's not going to be qualified for the 20% deduction. The LLC that owns the C Corp, if it's doing other activities, might qualify for the deduction. Here's the problem: In the qualified business, the part I didn't tell you about is what is qualified business income. Dividends, interest, capital gains are not included in that definition so if you're issuing interest from a C Corp to the LLC that flows under your return, you're not going to be getting the 20%. "If you set up QuickBooks with a single entity and use class as a separate income, can you also print a balance sheet by class?" Jeff: Yes, you can do it if the balance sheet is also classified. Toby: Okay. See, we're good. We're getting there. We only have about 200 more questions to go. I'm just teasing you. We've gone through about three-quarters of them. "What is Jeff's last name?" Webb. "I have a rental company. This will be my first year doing taxes. What can I expect to pay on my capital gains? What are some determining factors?" Isaac, if you're a rental company and you're selling–like if you have capital gains, it's going to be depending on whether you sold it within a year or after a year. If it's less than a year, it's going to be ordinary income to you. If it's over a year, it's going to be taxed with either 0%, 15% or 20%. If you make over 250,000, you're going to get to add no another 3.8% and then whatever your state tax is. What are the determining factors? How much you make. If you're married, filing jointly less than 77,000, your capital gains rate is zero. All those things come into it. You can always write us at webinar@andersonadvisors if you want to ask specific questions. "I'm in the process of setting up QuickBooks account for my C Corp. I have a construction business and a hair salon that are DPA-ed as C Corp. I am flipping single-family residents in Wyoming LLC? I have sub-expense and sub-income accounts for those." This is getting long. This one, we may want to answer next week because this is kind of cool. It's talking about sub-accounts. I'm just going to table that one unless you want to jump on it. Jeff: No, I think there were a couple of issues in there. Toby: Yup, "But you don't pay tax until the withdrawal, correct? That was just with regards to the IRA." Steve, you do need an account and, yes, you don't pay the tax until you withdraw, add up in IRA. If you have unrelated business income tax or debt finance income out of an IRA, you'd pay it in the year that it was generated. "Can I set up an entity to receive W2 income and max out top […]?" Yes, but you can't do it out of a self-directed IRA. The reason being is that you are a disqualified person so you cannot do that unless you do something called a ROBS transaction, and that's going to be a major topic for another day. That's if your IRA invests in a C Corp that you set up and there are ways to do it and then you could actually pay yourself, so there. "I recently rolled over a 401K to equity trust IRA account, lending funds to other investors charging interest. Is interest income taxable to the IRA?" No, you can do that all day long, and equity trust is having to sign all your docs. My recommendation would be to set up your own 401K so you can sign the loan documents. Somebody says, "How many times a year can you roll over from 401K to IRA or reverse rollover?" It depends on whether you're doing a direct rollover. Jeff: You can do a trustee to trustee every day if you want, meaning you're going from TDM trade to Bank of America. You can do those as long as it's directly being transferred. You can pull the money out once to yourself once every 12 months, and it's a rolling 12-month period. If I pulled it out today, then I wouldn't be able to do it again until next October. Toby: Somebody asks, "Can I roll individual stock holding into Roth trading account if the current value is under the 550 limit, and how?" The answer would be, really, no; you're going to have to liquidate the holdings, open up a new account in the Roth IRA and then contribute the 5,500. It's a pain in the butt, I know, but I don't make the rules. It's this whole Bank Secrecy Act and all this stuff since they flew planes into trade centers. "Is the old rule dead on personal residences two out of five years?" No, that's still the rule, and we still use it like crazy. That's exception 121. Jeff: Yeah, they were talking about making it five out of eight years, and that got thrown out so it's still the old two-out-of-five rule. Toby: Yup. "Do my startup costs carry over two years if my net was negative?" It's actually 20-something years. Jeff: 15 years. Toby: 15 years now? Nate, you can carry forward your startup costs. Is it 15? Jeff::Yeah. Toby:  "Hey, wait a second. I have an S Corp. They keep charging me the 800 fee ever

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Episode 22 - Electrical Injuries in the Emergency Department An Evidence-Based Review

EMplify by EB Medicine

Play Episode Listen Later Nov 1, 2018


Jeff: Welcome back to Emplify, the podcast corollary to EB Medicine’s Emergency Medicine Practice. I’m Jeff Nusbaum, and I’m back with my co-host, Nachi Gupta. This month, we’re back with our old routine – no special guests. Nachi: Don’t sound so sad about it! Jeremy was great last month, and he’s definitely paved the way for more special guests in upcoming episodes. Jeff: You’re right. But this month’s episode is special in its own way - we’ll be tackling Electrical Injuries in the emergency department - from low and high voltage injuries to the more extreme and rare lightning related injuries. Nachi: And this is obviously not something we see that often, so listen up for some easy to remember high yield points to help you when you get an electrical injury in the ED. And pay particular attention to the , which, as always, signals the answer to one of our CME questions. Jeff: I hate to digress so early and drop a cliché, “let’s start with a case…” but we, just a month ago, had a lightning strike induced cardiac arrest in Pittsburgh, so this hits really close to home. Thankfully, that gentleman was successfully resuscitated despite no bystander CPR, and if you listen carefully, we hope to arm you with the tools to do so similarly. Nachi: This month’s print issue was authored by Dr. Gentges and Dr. Schieche from the Oklahoma University School of Community Medicine. It was peer reviewed by Dr. O’Keefe and Dr. Silverberg from Florida State University College of Medicine and Kings County Hospital, respectively. Jeff: And unlike past issues covering more common pathologies, like, say, sepsis, this month’s team reviewed much more literature than just the past 10 years. In total, they pulled references from 1966 until 2018. Their search yielded 477 articles, which was narrowed to 88 after initial review. Nachi: Each year, in the US, approximately 10,000 patients present with electrical burns or shocks. Thankfully, fatalities are declining, with just 565 in 2015. On average, between 25 and 50 of the yearly fatalities can be attributed to lightning strikes. Jeff: Interestingly, most of the decrease in fatalities is due to improvements in occupational protections and not due so much to changes in healthcare. Nachi: That is interesting and great to hear for workers. Also, worth noting is the trimodal distribution of patients with electrical injuries: with young children being affected by household currents, adolescent males engaging in high risk behaviors, and adult males with occupational exposures and hazards. Jeff: Electrical injuries and snake bites – leave it to us men to excel at all the wrong things… Anyway, before we get into the medicine, we unfortunately need to cover some basic physics. I know, it might seem painful, but it’s necessary. There are a couple of terms we need to define to help us understand the pathologies we’ll be discussing. Those terms are: current, amperes, voltage, and resistance. Nachi: So, the current is the total amount of electrons moving down a gradient over time, and it’s measured in amperes. Jeff: Voltage, on the other hand, is the potential difference between the top and bottom of a gradient. The current is directly proportional to the voltage. It can be alternating, AC, or direct, DC. Nachi: Resistance is the obstruction of electrical flow and it is inversely proportional to the current. Think of Ohm’s Law here. Voltage = current x resistance. Jeff: Damage to the tissues from electricity is largely due to thermal injury, which depends on the tissue resistance, voltage, amperage, type of circuit, and the duration of contact. Nachi: That brings us to an interesting concept – the let-go threshold. Since electrical injuries are often due to grasping an electric source, this can induce tetanic muscle contractions and therefore the inability to let go, thus increasing the duration of contact and extent of injury. Jeff: Definitely adding insult to injury right there. With respect to the tissue resistance, that amount varies widely depending on the type of tissue. Dry skin has high resistance, far greater than wet or lacerated skin. And the skin’s resistance breaks down as it absorbs more energy. Nerve tissue has the least resistance and can be damaged by even low voltage without cutaneous manifestations. Bone and fat have the highest resistance. In between nerve and bone or fat, we have blood and vascular tissue, which have low resistance, and muscle and the viscera which have a slightly higher resistance. Nachi: Understanding the resistances will help you anticipate the types of injuries you are treating, since current will tend to follow the path of least resistance. In high resistance tissues, most of the energy is lost as heat, causing coagulation necrosis. These concepts also explain why you may have deeper injuries beyond what can be visualized on the surface. Jeff: And not only does the resistance play a role, but so too does the amount and type of current. AC, which is often found in standard home and office settings, but can also be found in high voltage transmission lines, usually affects the electrically sensitive tissues like nerve and muscle. DC has a higher let-go threshold and does not cause as much sensation. It also requires more amperage to cause v-fib. DC is often found in batteries, car and computer electrical systems, some high voltage transmission lines, and capacitors. Nachi: Voltage has a twofold effect on tissues. The first mechanism is through electroporation, which is direct damage to cell membranes by high voltage. The second is by overcoming the resistance of body tissues and intervening objects such as clothes or water. You’re probably familiar with this concept when you see high voltages arcing through the air without direct contact with the actual electrical source, leading to diffuse burns. Jeff: As voltage increases, the resistance of dry skin is -- not surprisingly -- reduced, leading to worse injuries. Nachi: And for this reason, the US Department of Energy has set 600 Volts as the cutoff for low vs high voltage electrical exposure. Jeff: It is absolutely critical that we also mention and then re-mention throughout this episode, that those with electrical injuries often have multisystem injuries due to not only the thermal injury, electrical damage to electrically sensitive tissue, but also mechanical trauma. Injuries are not uncommon both from forceful pulling away from the source or a subsequent fall if one occurs. Nachi: That’s a great point which we’ll return to soon, as it plays an important role in destination selection. But before we get there, let’s review the common clinical manifestations of electrical injuries. Jeff: First up is – the cutaneous injuries. Most electrical injuries present with burns to the skin. Low voltage exposures typically cause superficial burns at the entry and exit sites, whereas high voltage exposures cause larger, deeper burns that may require skin grafting, debridement, and even amputation. Nachi: High voltage injuries can also travel through the sub-q tissue leading to extensive burns to deep structures despite what appears to be relatively uninjured skin. In addition, high voltage injuries can also result in superficial burns to large areas secondary to flash injury. Jeff: Electrical injuries can also lead to musculoskeletal injuries via either thermal or mechanical means. Thermal injury can lead to muscle breakdown, rhabdo, myonecrosis, edema, and in worse cases, compartment syndrome. In the bones, it can lead to osteonecrosis and periosteal burns. Nachi: In terms of mechanical injury – electrical injury often leads to forceful muscular contraction and falls. In 2 retrospective studies, 11% of patients with high voltage exposures also had traumatic injuries. Jeff: While not nearly as common, the rarer cardiovascular injuries are certainly up there as the most feared. Pay attention to the entry and exit sites, as the pathway of the shock is predictive of the potential for myocardial injury and arrhythmia. Common arrhythmias include AV block, bundle branch blocks, a fib, QT prolongation and even ventricular arrhythmias, including both v-fib and v-tach, both of which typically occur immediately after the injury. Nachi: There is a school of thought out there that victims of electrical injury can have delayed onset arrhythmias and require prolonged cardiac monitoring – however several well-designed observational studies, including 1000s of patients, have demonstrated no such evidence. Jeff: It’s also worth noting that ST elevation MIs have also been reported, however this is usually due to coronary artery vasospasm rather than acute arterial occlusion. Nachi: Respiratory injuries are somewhat less common. Acute respiratory failure usually occurs secondary to electrical injury-induced cardiac arrest. Thoracic tetany can cause paralysis of respiratory muscles. Late findings of respiratory injury including pulmonary effusions, pneumonitis, pneumonia, and even PE. The electrical resistance of lung tissue is relatively high, which may account for why pulmonary injury is less common. Jeff: Vascular injuries include coagulation necrosis as well as thrombosis. In addition, those with severe burns are at increased risk of DVT, especially in those who are immobilized. In at least one study, the incidence of DVT in hospitalized burn patients was as high as 23%. That’s -- high. Nachi: Neurologic complaints are far more common as nerve tissue is highly conductive. While the most common injury from an electric shock is loss of consciousness, other common neurologic insults include weakness, paresthesias, and difficulty concentrating. Jeff: And if the entry and exit sites traverse the spinal cord – this also puts the patient at risk for spinal cord lesions. Specifically with respect to high voltage injuries – these victims are at risk for posterior cord syndrome. In addition, depression, pain, anxiety, mood swings, and cognitive difficulties have all been commonly described. Nachi: Rounding out our discussion of electrical injuries, visceral injuries are rather rare, with bowel perforation being the most common. High voltage injuries have also been associated with cataracts, macular injury, retinal detachment, hearing loss, tinnitus, and vertigo. Jeff: Perfect. I think that more or less rounds out an overview of organ specific electrical injuries. Let’s talk about prehospital care for these patients -- a broad topic in this case. As always, the first, and most important step in prehospital care is protecting oneself from the electrical exposure if the electrical source is still live. Nachi: In cases of high voltage injuries from power lines or transformers or whatever oddity the patient has come across, it may even be necessary to wait for word from the local electrical authority prior to initiating care. Remember, the last thing you want to do is become a victim yourself. Jeff: For those whose electrical injury resulted in cardiac arrest, follow your standard ACLS guidelines. These aren’t your standard arrest patients though, they typically have many fewer comorbidities – so CPR tends to be more successful. Nachi: Intubation should also be considered especially early in those with facial or neck burns, as risk of airway loss is high. Jeff: And as we mentioned previously, concurrent trauma and therefore traumatic injuries is very common, especially with high voltage injuries, so patients with electrical injuries require a complete survey and not just a brief examination of their obvious injuries. Nachi: When determining destination, trauma takes priority over burn, so patients with significant trauma or those who are obtunded or unconscious should be transported to an appropriate trauma center rather than a burn center if those sites are different. Jeff: Let’s move on to evaluation in the emergency department. As always, it’s ABC and IV, O2, monitor first with early airway management in those with head and neck burns being a top priority. After that, complete your primary and secondary surveys per ATLS guidelines. Nachi: During your survey, make sure the patient is entirely undressed and all constricting items, like jewelry is removed. Jeff: Next, make sure that all patients with high voltage injuries have an EKG and continuous cardiac monitoring. Those with low voltage injuries and a normal EKG do not require monitoring. Nachi: Additionally, for those with severe electrical injuries, an IV should be placed and fluid resuscitation should begin. Fluid requirements will likely be higher than those predicted by the parkland formula, and you should aim for a goal of maintaining urine output of 1-1.5 ml/kg/h. Jeff: With your initial stabilization underway, you can begin to gather a more thorough history either from bystanders or EMS if they are still present. Try to ascertain whether the current was AC or DC, and whether it was high or low voltage. Don’t forget to ask about the setting of the injury as this may point to other concurrent traumatic injuries, that may in fact take precedence during your work up. Nachi: Moving on to the physical exam. As mentioned previously, disrobe the patient and complete a primary and secondary survey. Jeff: If the patient has clear entry and exit wounds, the path through the body may become apparent and offer clues about what injuries to expect. Nachi: A single exam will not suffice for electrical injury patients. All patients with serious electrical injuries will require serial exams to evaluate for vascular compromise and compartment syndrome. Jeff: So that wraps up the physical, let’s move onto diagnostic studies. Nachi: First off -- I know we’ve said it, but it’s definitely worth reiterating. All patients presenting with a history of an electric shock require an EKG Jeff: In those with a low voltage injury without syncope and a normal EKG, you don’t routinely need cardiac monitoring. However, in the setting of high voltage injuries, the data is less clear. Based on current literature, the authors recommend overnight monitoring for at least 8 hours for all high voltage injuries. Nachi: While no routine labs work is required for minor injuries, those with more serious injuries require a cbc, cmp, CK, CK-MB, and urinalysis. Jeff: The CK is clearly for rhabdo, but interestingly, a CK-MB greater than 80 ng/mL is actually predictive of limb amputation. Oh and don’t forget that urine pregnancy test when appropriate. Nachi: In terms of imaging, you’ll have to let your history guide your diagnostic studies. Perform a FAST exam to screen for intra-abdominal pathology for anyone with concern for concurrent trauma. Keep a low threshold to XR or CT any potentially injured body region. Jeff: Real quick – in case you missed it – ultrasound sneaks in again. Maybe I should reconsider and do an US fellowship – seems like that’s where the money is at - well maybe not money but still. Let’s move on to treatment. Nachi: In those with minor injuries like small burns and a low voltage exposure – if they have a normal EKG and no other symptoms, these patients require analgesia only. Give return precautions and have them follow up with their PCP or a burn center. Jeff: In those with more severe injuries, as we mentioned before, but we’ll stress again, protect the patient’s airway early especially if you are considering transfer and have any concerns. In one study, delays in intubation was associated with a high risk of a difficult airway. Always make sure you have not only your tool of choice but also all of your backup airway devices ready as all deeper airway injuries may not be apparent externally. Nachi: Fluid resuscitation with isotonic fluids is the standard -- again -- with a goal urine output of 1-1.5 ml/kg/h. Jeff: Address pain with analgesia – likely in the form of opiates – and don’t be surprised if large doses are needed. Nachi: Dress burned areas with an antibiotic dressing and update the patient’s tetanus if needed. While there is ongoing debate about the role of prophylactic antibiotics, best evidence at this point recommends against them. We talked about thermal burns in Epsiode 13 also, so go back and listen there for more... Jeff: There is also a range of practice variation with respect to early surgical exploration of the burned limb with severe injuries. At this time, however, the best current evidence supports a conservative approach. Nachi: Serial exams and watch and wait it is. . We have some interesting special populations to discuss this month. First up, as is often the case, the kids. Jeff: Young children are sadly more likely to present with orofacial burns due to, well, everything ending up in their mouth. And since many of our listeners are likely in boards study mode – why don’t you fill us in on the latest evidence with respect to labial artery bleeding. Nachi: Sure – . There is up to a 24% risk of labial artery bleeding and primary tooth damage with oral electrical injuries. Although there isn’t a clear consensus, current evidence supports early ENT consultation and a strong consideration for admission and observation for delayed bleeding. Jeff: Keep in mind though, that labial artery bleeding is often delayed and has been reported as far as 2 weeks out from the initial insult. Nachi: Moral of the story: don’t put electrical cords in or anywhere near your mouth. Next, we have pregnant patients. Case reports of pregnant patients suffering electrical injuries have described fetal arrhythmias, ischemic brain injury, and fetal demise. For this reason, those that are past the age of fetal viability should have fetal monitoring after experiencing an electric shock. Jeff: If not already done, an ultrasound should be obtained as well and a two week follow up ultrasound will be needed. Nachi: We’re switching gears a bit with this next special population – those injured by an electrical control device or taser. Jeff: Tasers typically deliver an initial 50,000 volt shock, with a variable number of additional shocks following that. Nachi: Most taser injuries are thankfully direct traumatic effects of the darts or indirect trauma from subsequent falls. Jeff: While there are case reports of taser induced v fib, the validity of taser induced arrhythmias remains questionable due to confounders such as underlying disease and previously agitated states like excited delirium Nachi: Basically, [DING SOUND} those with taser injuries should be approached as any standard trauma patient would be, with the addition of an EKG for all of these patients. Jeff: The next special population --- the one I’m sure you’ve all been waiting patiently for -- is lightning strike victims. Lightening carries a voltage in the millions with amperage in the thousands, but with an incredibly short exposure time. Because of this, lightening causes injuries in a number of different ways. Nachi: First, because it’s often raining when lightning strikes, wet skin may cause the energy to stay on the skin in what is known as a flashover effect. Jeff: Similarly and not surprisingly, burns are common after a lightning strike. Lichtenberg figures are superficial skin changes that resemble bare tree branches and are pathognomonic for lightning injury. Thankfully, these usually disappear within a few weeks without intervention. Nachi: Next, the rapid expansion of the air around the strike can lead to a concussive blast and a variety of traumatic injuries including ocular and otologic injury like TM rupture which occurs in up to two thirds of cases. Jeff: An ophthalmologic consult should be obtained in most, if not all of these cases. Nachi: Making matters worse, lightning can also travel through electric wiring and plumbing to cause a shock to a person indoors nearby the strike! Jeff: And like we mentioned earlier, just as was the case with my fellow Pittsburgher or ‘Yinzer. Nachi: Yinzer? Jeff: Forget about it, it’s just what Pittsburghers call themselves for some reason or another - but we’re still talking lightning. Cardiac complications including death, contusion and vasospasm have all been reported secondary to lightning injury. But don’t lose hope – in fact – you should gain hope as these patients have a much higher than typical survival rates. Nachi: From the neurologic standpoint – it’s a bit more complicated. CNS dysfunction may be immediate or delayed and can range from strokes to spinal cord injuries. Cerebral salt wasting syndrome, peripheral nerve lesions, spinal cord fracture, and cerebral hemorrhages have all been described. An MRI may be required to elucidate the true diagnosis. Jeff: Clearly victims of lighting strikes are complex and, for that reason, among many others, the American College of Surgeons recommends that victims of lightning strikes be transferred to a burn center for a comprehensive eval. Nachi: Let’s touch upon any other details regarding disposition. Jeff: Those with low voltage exposures, a normal EKG and minimal injury may be discharged home with PCP follow up and strict return precautions. Nachi: High voltage injuries on the other hand require admission to a burn center and the involvement of a burn surgeon, even if it involves transferring the patient. Jeff: And remember, trauma takes precedence over burn and those with traumatic injuries or the possibility of traumatic injuries should be evaluated at a trauma center. Don’t forget to take the airway early if there is any concern, and consider transporting via air as the services of a critical care transport team may be required. Nachi: That wraps up Episode 22, but let’s go over some key points and clinical pearls. During evaluation, consider multisystem injuries due to not only the thermal injury and electrical damage to electrically sensitive tissue, but also mechanical trauma. Thermal injury can lead to muscle breakdown, rhabdomyolysis, myonecrosis, edema, compartment syndrome, osteonecrosis, and even periosteal burns. Mechanical injury can be a result of forceful muscular contractions, and trauma can manifest as fractures, dislocations, and significant muscular injuries. Electrical injuries due to grasping an electric source can induce tetanic muscle contractions and therefore the inability to let go, increasing the duration of contact and extent of injury. Current tends to follow the path of least resistance, which explains why you might have deeper injuries beyond what can be visualized in the surface. Nerve tissue has the least resistance and can be damaged by even low voltage without cutaneous manifestations. Bone and fat, on the other hand, have the highest resistance to electrical injury. High voltage injuries place patients at risk for spinal injuries, most notably posterior cord syndrome. High voltage injuries have also been associated with cataracts, macular injury, retinal detachment, hearing loss, tinnitus, and vertigo. All patients with electrical injury require an EKG. Low voltage injuries with a normal presenting EKG do not always require cardiac monitoring. High voltage injuries require cardiac monitoring for at least 8 hours. Intubation should be considered early in patients with facial or neck burns, as risk of airway loss is high. Make sure to have airway adjuncts and back up equipment at bedside, as deeper airway injuries may not be obvious upon external exam. For severe injuries, target a urine output rate of 1-1.5 mL/kg/hr. All patients with serious electrical injuries require serial exams to evaluate for vascular compromise and compartment syndrome. Address pain with analgesia. Larger than expected doses may be needed. Dress burned areas with an antibiotic dressing and update the patient’s tetanus if required. For pediatric patients with oral electric injuries from biting on a cord, consult ENT early and consider admission for observation of delayed arterial bleeding. Pregnant patients who are past the age of fetal viability should have fetal monitoring and ultrasound after experiencing an electric shock. Tympanic membrane rupture is a commonly noted blast injury after a lightning strike. Cardiac resuscitation should follow ACLS guidelines and is more likely to be successful than your tyipcal cardiac arrest patient as the patient population is typically younger and without significant comorbidities. When determining destination, trauma centers take priority over burn centers if those sites are different. So that wraps up episode 22 - managing electrical injury in the emergency department. Additional materials are available on our website for Emergency Medicine Practice subscribers. If you’re not a subscriber, consider joining today. You can find out more at www.ebmedicine.net/subscribe. Subscribers get in-depth articles on hundreds of emergency medicine topics, concise summaries of the articles, calculators and risk scores, and CME credits. You’ll also get enhanced access to the podcast, including the images and tables mentioned. You can find everything you need to know at ebmedicine.net/subscribe. And the address for this month’s credit is ebmedicine.net/E1118, so head over there to get your CME credit. As always, the you heard throughout the episode corresponds to the answers to the CME questions. Lastly, be sure to find us on iTunes and rate us or leave comments there. You can also email us directly at emplify@ebmedicine.net with any comments or suggestions. Talk to you next month!

No Barriers
The Roots of No Barriers: A Conversation with Co-founder Mark Wellman

No Barriers

Play Episode Listen Later Oct 1, 2018 50:35


Mark Wellman is a nationally acclaimed author, filmmaker and motivational speaker. Despite being paralyzed in a mountain climbing accident, Mark has inspired millions to meet their problems head-on and reach for their full potential. A two-time Paralympian and former Yosemite Park Ranger, Mark's NO LIMITS philosophy encourages individuals to adventure into new horizons; to go beyond the seeming unreachable. Mark is used to being on the road since he travels throughout the year, bringing his adaptive climbing wall to companies, organizations, and schools. We caught him during one of his road trips and he agreed to swing by Golden, Colorado to the No Barriers podcast studio and catch up with his old friends, Jeff, Dave, and Erik. Mark is unbelievably accomplished but also reserved and humble. He talks about his legendary, groundbreaking athletic achievements with the same tone most use to describe what they had for lunch. But there was a time in Mark's life where he was unsure, depressed, and hopeless with no clear path ahead. Mark discusses his near-death injury that he sustained on a climb that left his paralyzed from the waist down. He spent months in the hospital unsure of how to go forward and lost. That was, until he received some wisdom. I had this one physical trainer, she was from Germany, and she said: “You need to train like your training for the Olympics!” And I just really took that to heart.” Mark first was determined to find employment where he could stay connected to the outdoors. So, he went back to school and got his degree in Park Management. He worked as a Park Ranger in various capacities, already shattering people's ideas of what he was capable of, but that was just the beginning. He soon discovered the world of adaptive sports and threw himself into learning more and designing his own adaptive equipment to get back out into the field. It was then he came up with the crazy idea of climbing the sheer granite face of El Capitan. He found a partner, built an ascending rope pulley system, and started to train. Now, folks of many different abilities have climbed El Cap, but until Mark, this was unthinkable. He pulled it off and became the first paraplegic to make the ascent. “Are you crazy to take this paraplegic guy up El Cap? Seems like a really stupid idea. Something could go wrong,’ but fortunately we didn’t really listen to that.” Mark went on to gain tons of media attention, made national and international news, met the President, lit the flaming torch up a 120-foot rope at the Paralympic games in Atlanta; a fun story he shared with us, and continued on to break even more records of athletic achievement, like being the first paraplegic to sit-ski unassisted across the Sierra Nevadas. Listening to Mark describe his epic achievements it's easy to forget he has a disability or about all the struggle that led him to this point in his life. But for Mark, it's about mindset. “I learned my disability wasn’t a death sentence - let’s get on with life, dude!” But Mark wanted to share what he learned with others. He details the spark of an idea he had with a friend that led to the formation of the nonprofit, No Barriers, and the humble beginnings of an organization that is now becoming a movement. He uses his time to speak to groups and offer inspiration, as well as lead hands-on adaptive activities that get people out of their comfort zones. “Let’s get out and enjoy life.” Read Mark's Autobiography Here Visit Mark's website: No Limits Learn more about No Barriers autobiography Climbing Back. The first paraplegic to sit-ski unassisted across the Sierra Nevada Mountain Range, --------------- EPISODE TRANSCRIPT ------------------------- Dave: Well welcome to our No Barriers podcast. We are thrilled today to have Mark Wellman with us, who's one of the founders of No Barriers. Can't wait to hear some of his stories about what this organization was founded upon. He's really the heart and soul behind why many of us are here at the organization. Before we get into that conversation, Erik, you just came back from a really interesting experience, why don't share with our listeners a little bit about it? Erik: [00:00:30] Yeah, I was at a conference with all these authors. There were four of us, and the first was a lady, she was the author of Hidden Figures, this great book that was made into a movie, these African American women who were behind getting us to the moon, didn't get any credit at first, but then their stories were really illuminated by her book. And this guy who is falsely sent to death row for 30 years. He was incarcerated- Dave: Wow. Erik: In a five by [00:01:00] seven room, had to kind of go into his mind and think about how to expand his mind. He said in his mind he married Halle Berry. They were married for 25 happy years. Dave: When was this set? Erik: Recently. Literally just got out of ... he got out of jail, no apology from Alabama. But he wrote this amazing book, so ... And then a lady who wrote a book called Beauty Sick, mostly [00:01:30] about girls who struggle with body image, and how much productivity is lost in the world because girls are having to pay attention to makeup, and weight, and all the things that they worry about. Guys too, but mostly the focus was on girls, and I have a daughter, so I was sitting there just hanging on every word, thinking about my daughter and her struggle, so it was really book because it was four very No Barriers... Dave: That's a lot of No Barriers. Erik: ...authors right there. [00:02:00] Maybe we'll get them on the podcast at some point. Dave: That sounds like perfect fit for the kinds of topics we explore. Erik: Yeah. And I am totally thrilled... this is great. I'm so psyched to have my friend, all our friends, Mark Wellman on the podcast today. Dave: The legend. Erik: The legend, the dirt bag... is that okay to say? Mark: Yeah, yeah. Dave: You embrace it, right? Mark: It's great to be here. I embrace everything. Erik: Mark almost doesn't need an introduction, but Mark is [00:02:30] a world class adventurer, and an innovator, and is the key founder of No Barriers. Has done amazing things that blow your mind as an adventurer. Has skied across the Ruth Gorge. Has traversed the Sierra Nevada mountain range. Has mountain biked the White Rim Trail. Has climbed El Capitan, Half Dome. We were just talking this morning, your Half [00:03:00] Dome ascent was 13 days? Mark: Yeah, it was. Erik: On the wall. Just, Mark, a hero of mine for sure. You're a few years older than me. When I was a teenager and you were just a little bit older climbing El Capitan and doing all these amazing adventures, you were a huge part of my motivation, so I'm psyched right now. Mark: It's great to be here, thanks a lot Erik. Yeah I guess I could [00:03:30] start off with... 35 years ago I was an able bodied climber and we were climbing a peak called Seven Gables, which is pretty close to the Mount Whitney area. We had a 20 mile backpack to get into the base, and this is back in 1982, I was 22 years old. My good friend Peter Enzinger and I were back there to do this climb. [00:04:00] We set up a base camp about 10,000 feet, and the next morning we got up pretty early, grabbed our technical rock climbing equipment and left most of our provisions at the base camp, our sleeping bags. Sure would have been nice to have that sleeping bag with us but didn't have it. And we climbed Seven Gables. It was sort of technical, kind of a mixed route. There was a little bit of ice, a little bit of rock, and made [00:04:30] the ascent. By the time we topped of it was a little bit late in the afternoon, about five o'clock. We just embraced this beautiful view from the summit. American Alpine Club places sometimes these cairns, or climbing registers, at the top of the mountain. It was kind of cool to see this. In this case it was just a pile of rocks with a Folgers coffee can. And I opened up the Folgers coffee can and dumped out the little pieces of paper, and there's my [00:05:00] hero Royal Robbins had climbed it. "Cool man, I'm gonna put my name next to Royal." Did that, and then we decided we're gonna go down a class four descent on the backside, just scrambling, not roped. We were just kind of walking down a tail of slope. I'll be the first to kind of admit my guard was down. My partner said, "Hey, maybe we should put a rope on [00:05:30] this one section here." I go, "No, no. I wanna get down to base camp, I'm really hungry. There's some really good freeze-dried food I wanna eat." You know that wonderful Mountain House stuff. Erik: And 35 years ago. Dave: Delicious. [crosstalk 00:05:44] Mark: So next thing I knew, I slipped on some scree, and I pitched forward and I started rolling. I made a couple of somersaults and I rolled off about a 100 foot cliff. When I landed I broke my lower back at T 11, T 12. Of course at the time I didn't know it. [00:06:00] I was 22, I didn't even know what a wheelchair was. That happened, and my partner thought I possibly could have been killed. But he heard me yell back at him. He got down to where I was... he said he spent a couple hours with me stopping some bleeding on my legs, and some other stuff. Jeff: What's your recollection of that period of time... Mark: He said he was with me for two hours, it felt like ten minutes. Erik: Right. Mark: And then he left. [00:06:30] He left an orange, an extra jacket, and some trail mix and said "Man, I gotta get out and get some help." So after 30 hours, the best sound I've ever heard in my whole life was the sound of this... [helicopter sounds] ...coming up the canyon. Erik: You almost froze to death. Mark: It was cold that night. Yeah it was real cold. I was laying on some ice. That probably helped because it kept the swelling down in my back. So I'm an incomplete [00:07:00] para. I have a little bit of movement in my legs. They said that might have helped me, the swelling. But the helicopter got up there, it was actually a ship from the Forest Service. They were gonna just go up and see if it was more of a body recovery, but fortunately I waved to them and the helicopter disappeared. About an hour later, a second helicopter came up and this time was from Lemoore Navy Base, and they did [00:07:30] a technical rescue. Flew in, brought the rotors within several feet of the cliff surface, lowered a navy medic, got me in a stokes litter, got me back up into the ship. I was down at a trauma center, they were cutting my clothes off, and a nurse said, "Who's your insurance company?" And fortunately I did have insurance, I had Kaiser. I went through stabilization of my back with Harrington rods. I was in the hospital in 1982 for seven months. Dave: [00:08:00] Wow. Erik: Including rehab? Mark: Including rehab and the whole nine yards. And nowadays, a paraplegic if you go to Craig Hospital, it's kind of the factory up here in the west. A paraplegic will be in the hospital for about six weeks. It's pretty dramatic... in those days, it was a much longer hospitalization. Learning how to take care of yourself. And then... Erik: More time is better, right? I mean, [00:08:30] would make sense right? You can develop more time? Mark: Yeah, a little bit. I think seven months was a little excessive. Erik: Right. Mark: But you know, there's a lot to learn. Your life has really changed. Your spinal cord runs your body, and you're paralyzed from your waist down. You have bowel and bladder issues. You have skin issues you have to be careful about. So all those things were really important, and I had this one [00:09:00] physical therapist who was from Germany and she goes, "You need to train like you're training for the Olympics." I just really took that to heart and started lifting weights. Was ambulating with long leg braces. This was sort of the beginning of the wheelchair revolution where wheelchairs weren't a stale piece of medical equipment, they were a lightweight piece of aluminum that was more of an extension of your body. And the wheelchair [00:09:30] could take you from point A to point B. Fortunately, in 1982 was really when these wheelchairs... they started making lightweight chairs. And I was a part of that. Erik: Not the clunky Vietnam-era things, right? Mark: Exactly. The old Everest and Jennings chairs were more obsolete, and they were using... well there was a woman who started Quickie wheelchairs, Marilyn Hamilton, she got hurt in a hang gliding accident. They took hang gliding technology, clevis pins, aluminum, powder coat. [00:10:00] And they kind of messier of manufacturing these wheelchairs sort of like... taking the technology from hang gliders and applying it to wheelchairs. Erik: We're still less than ten podcasts in here, but we've already heard a lot of stories of people... these No Barrier stories of people who go down deep into these dark places. I don't want to bring you down, but you have a lot of experience right now and so you can look back. You went to a dark [00:10:30] place, obviously. Mark: Yeah. It was close to saying goodbye to this Earth. Fortunately I made it through. I remember getting back into rehab, then I met a state rehab counselor who said, "You know Mark, you have this great love, this great passion for the outdoors, why don't you become a park ranger?" And I'm thinking, "How's somebody in a wheelchair gonna be a park ranger?" I'm thinking [00:11:00] law enforcement, search and rescue, and she goes "No, there's many hats in the National Park Service, or many different jobs." She took me down to Fort Funston where I met a ranger who kind of showed me the ropes and said "Hey, you could maybe do a job, this would be an entry level position, but you could help us plant dune grass and work in the nursery, or you could go to the entrance gate and help out there." [00:11:30] So I did that for a summer and then I went back to school and went to West Valley College and studied park management. Erik: Cool. Mark: And became a ranger at Yosemite. I remember my first job wasn't exactly my idea being a ranger. There I was sitting in this little kiosk, this little booth, at Big Oak Flat, the entrance to Yosemite. In those days it was a three dollar entrance fee and I'd collect the money and be breathing in auto fumes all day long. That really wasn't [00:12:00] my idea of being a ranger. But it was entry level. The next summer I went down to Yosemite Valley and started working at the visitor's center doing interpretation. Interpreting the natural processes of the park, the public. Bear management, geology, climbing was a big subject too. I'd give programs on climbing, talk about A climbing versus free climbing. Jeff: Were you transparent with people that would come through the park, with how your injury took place? [00:12:30] When you'd talk about the [crosstalk 00:12:31] Mark: I was, I was. I would start my climbing program off with my accident, actually. And bring that in, because I think that was a big part of it. They might say, "Well who's this guy in a wheelchair, what does he know about climbing?" I'd kind of bring that in. That was before I climbed El Cap, I was doing those things. Jeff: Were you percolating on doing something like that when you were there? Mark: I was. It's kind of an interesting story. There was a magazine called Sports And Spokes, it was a wheelchair [00:13:00] athletic magazine. On the front cover on that magazine was a DSUSA chapter, a woman who was being lowered down a cliff in a wheelchair on a river rafting trip. The river went over a waterfall, and then you did portage all the equipment around the waterfall. They had a swami belt and a climbing rope and they had a helmet, I guess they wanted to put a helmet on her for safety, sounded like a good idea. And they lowered her down this cliff in this wheelchair, [00:13:30] and it was on the front cover of this magazine, Sports And Spokes. I got the magazine at my little cabin in Yosemite and I had it on my lap. I was wheeling over to the visitor center to open it up in the morning, and I bumped into my future climbing partner Mike Corbet. And Mike's nickname was Mr. El Cap back in the 80s, he had climbed El Cap more than anybody else in the world, over 50 times. And Mike had never really talked about climbing to me because he knew that's how I got hurt. But when [00:14:00] I showed him this picture, Mike's eyes got really big, and he got really excited. He goes, "You know what Mark, I wanna start climbing with you, but what I really wanna do is climb El Cap." And we had no idea how we were gonna do it. Dave: That's great. Mark: That evening, we were sitting at the mountain room bar, we might have had a beer or two. Dave: Or three. Jeff: That's where all good decisions are made. Mark: Where all good decisions are made. So we had a little beer napkin and we started writing down notes. We said, "Okay, [00:14:30] we're gonna take a jumar..." A jumar is a rope ascender, this was back in the day, kind of like what Kleenex is to tissue. So we took a jumar, and we mounted a pull up bar and a jumar, and then we had a second ascender on a chest harness. And we put a rope up right by the Ahwahnee Hotel. Church ball tree. It was an oak tree. We had this rope and we started ascending up into the tree and then he'd lower me back down. So we go, "Okay, [00:15:00] so a paraplegic can ascend a rope using their upper body strength. Now to get on El Capitan, we got to actually protect your lower extremities from the granitic rock." We knew we were gonna be up there at least a week. I don't have feeling in my legs, so I really needed to protect my legs from any kind of abrasion or any kind of sore that could have occurred up there. We went down to this hardware store in Fresno, California outside [00:15:30] of the park. We bought some leather, a speedy stitcher, some closed cell insulation foam, and we just started making these rock chaps and they sort of evolved over a course of six months. We were climbing Jam Crack, Warner's... Erik: Weren't they... what was the material of those? I've felt your chaps before. That sound's weird... Dave: The truth comes out. Jeff: Hey, we're all friends here. Mark: The original [00:16:00] rock chaps were made out of leather and canvas. But the pair of rock chaps you felt were actually made out of some kind of silky material. No, no... Dave: Oh that was lingerie? Not chaps. Jeff: This was the first No Barriers improv meeting, what you're talking about, with your buddy Mike. Mark: Absolutely. Jeff: That was it, that was the genesis of what... fast forward to today, that was the beginning. What [00:16:30] year was that? 1980... Mark: That was 1988. Jeff: 88. There you go. Mark: Yeah 88. I was 28 years old. Erik: So if you think about it that way, No Barriers began in the Ahwahnee bar. Jeff: Yeah, on a bar stool. On a bar napkin. Dave: I know you guys are all dirt bag climbers. I'm not a dirt bag climber. For our listeners who are not dirt bag climbers, someone paint a picture, because we're getting to the El Cap story. Which is a phenomenal story. Paint a picture of El Cap for us, because not everyone knows what that is. Jeff: Yeah, well. El Cap [00:17:00] is probably the most revered, iconic, monolith in North America if not the world. Uninterrupted, over 3000 feet of granite. It is... when you're in Yosemite, you look up at it and it's got this perfectly symmetrical flank apron on both sides that comes out into this promontory called the nose. And [00:17:30] you can't take your eyes off it. If you look away for a minute, you have to look back at it just cause it's so magnificent and powerful. And it represents so much too. If you want to call yourself a climber, you kind of have to climb El Cap at some point. Erik: When you stand in the meadows below, which is just clogged with tourists just all driving by gawking. What I've heard, is you have to look up and up and up, way higher than [00:18:00] you think you have to. Dave: And if you see a person climbing, as a person who's not a technical climber speaking, you think "Those people are crazy. They're insane. What are they doing up there?" Jeff: Erik and I climbed El Cap. And his dad, Erik's dad, and future wife were down there in the meadow with telescopes watching us. We had one of those little lighty things, little sticks, and we were shining our headlamps down at everybody. It's [00:18:30] a magnificent thing, but it's also very intimidating. It can be very cool when you stand up and look at it, but then the idea of going and climbing it I think is a whole different story. Erik: And as a quote on quote gimp, and that's a word by the way that Mark taught me. I never even heard that word before. It's one of those words I guess you somehow have the license to use if you are... Mark: If you are. Erik: If you are in a chair or you are blind. So what did, when you talked about this out loud, what did people [00:19:00] think? Are people like, "You're nuts." Mark: Yeah, we had kind of a mixture of both. People that knew us, were "Oh yeah you guys should go do this." Mark's been training, he's always skiing, always riding his bike, hand bike around... well in those days it was more of a row cycle. And then we had people say, mainly not to me so much but more to Mike, "Are you crazy? Take this paraplegic guy up El Cap? Seems like a really stupid [00:19:30] idea. Something could go wrong." But fortunately, we didn't really listen to that. We just started training, we made these rock chaps. Like I said, they kind of just evolved over about a six month period. We kind of have a little circuit in Yosemite Valley that we climbed together. We did Jam Crack, the Prude, Warner's Crack, The Rostrum, we went over there. Erik: Oh, wow. Mark: So we did some stuff in the Valley [00:20:00] just to really warm up. And then I actually went up and spent a night on El Cap. Because we wanted to feel what that was like. Jeff: Up at sickle? Mark: We actually went to Heart Ledge. Erik: Wow. Jeff: Over on the south. Mark: Yeah, over on the south. The route we were gonna climb was a shield. So... Jeff: Cause it's overhanging. Mark: It was overhanging... once you get over the shield roof it's overhanging. The beginning of it's not. It's pretty low angle. Jeff: Were you scared at all before you did this or [00:20:30] were you just super fired up and kind of naïve? Mark: I was scared the night before. Jeff: You were. Mark: Yeah. Jeff: Like really scared? Mark: Yeah I was... couldn't sleep. This kind of what happened was... really Mike, about two weeks before we're gonna blast off, Mike goes, "Man we've trained so hard for this, I'm gonna write a letter to Tom Brokaw..." who is the national NBC News guy, who is a climber too, a little bit. And, I'm going, "Okay... " so basically [00:21:00] Corbet just wrote out a note with a pencil. He was a janitor at the Yosemite Medical Clinic to support his addiction to climbing. He just wrote a little note to Tom Brokaw, and I think three or four days later he's talking to... Tom Brokaw called the medical clinic and talked to Mike, and said "We want to come out and do this story." Erik: Gosh. Mark: And all of a sudden the pressure was on. That's when I really was thinking, "Wow you're telling national news, this is gonna add [00:21:30] a lot more pressure for myself." But as soon as we got to the base of El Cap and I touched that granite, all that training and preparation really got into par, and I got relaxed. I started doing pull up after pull up, dragging myself up the largest unbroken granite cliff in North America, El Capitan, and the first night... we do something called, we fix pitches. So we were fixed [00:22:00] up about 800 feet. So we had... Mike used to say, "It's always nice to kind of have a jumpstart." Erik: Right. Mark: You know, fix those lines, get all your water, we had 250 pounds... Erik: It's like a trail of ropes that go up 800 feet so you can just... Mark: The next morning... Erik: Start on the ground and zip up 800 feet and have like a jumpstart on this gigantic monolith. Mark: Exactly. And have all your water, all your gear up there. So he had to work three or four days to make that happen prior to us [00:22:30] leaving. Once we left Mammoth Terrace, we were on our own. We went through the Gray Ledges, and we went over... the roof was really tremendous. Because Mike is basically climbing upside down, and then gets up onto the pitch above it and fixes a rope. Then I kind of untied myself and I swing underneath that roof, and you can hear the cheers of the people down below. It's like [00:23:00] what Jeff was saying, It's quite a scene at the El Cap meadow. You really have to have binoculars. It's hard to see climbers up there, because they're so tiny, they're like little ants up there. If you don't know what to look for, it's hard to see these people. The crowd was yelling, and the green dragon would come by. It's a tour vehicle that has it's open air shuttle. Erik: "If you look upright you will see a nutcase [00:23:30] climbing El Capitan." Mark: We could actually hear them talking about "Mike Corbet, Mark Wellman, first paraplegic..." So that was kind of interesting. Finally when we topped out, it was seven nights, eight days of climbing. This was before digital technology on El Cap, when national news came out. They had a mule train, they brought out a satellite dish that was like five feet wide, and we were live on top of El [00:24:00] Cap talking to Tom Brokaw. Jeff: Sick. Mark: And we've got... between the Today Show and NBC News, and in a week we were on TV for like several hours if you took all the time that they played this. There wasn't really much going on in the news, so they really kind of played this story up in a big way. As soon as we got off that climb, about a week later, we're sitting in the Oval [00:24:30] Office talking to President Bush. It was myself, Mike Corbet, "Writtenaur" who was Secretary of the Interior, and Jack Morehead, superintendent of Yosemite. The four of us are in the White House, in the Oval Office, talking about bone fishing because President Bush loved to bone fish and we presented him with a flag that we took with us on the climb, and it changed my life. Erik: Mark, so you're not that old, but I see [00:25:00] you sort of as the father of adventur e sports for people with disabilities. I want people to understand that the idea to climb El Cap back in the 80s... nowadays, I think... how many people have climbed El Cap in chairs, paras? Mark: Oh the chairs? Erik: Dozens, right? Mark: Yeah, dozens. Erik: But you sort of unleashed that. You opened up this door. And now, quote on quote gimps are doing everything, right? Mark: Every summer there's [00:25:30] a paraplegic. Erik: But you opened that door for all of us. So, it's sort of a crazy thought to me. Mark: It is. You can't take the first ascent of El Cap, you can't take that away from me. That's something I'll always remember. It was a huge accomplishment for both Mike and I, and there's been different paraplegics who have gone up it. A gentleman with cerebral palsy, Steve Wampler, was probably the most [00:26:00] disabled person that's been up there. Lots of amputees. I call them amputees, hardly disabled. Paraplegics wanna be amputees. Erik: Those will be our first complaint letters. Dave: Exactly. [crosstalk 00:26:15] Mark: Quadriplegics wanna be paraplegics. Everybody has their differences. There's been a quadriplegic, incomplete quadriplegic, climbed El Cap with Tommy Thompson, good climber. [00:26:30] Steve Muse. Erik: There's that kid who climbed The Chief, he was inspired by you. Mark: Yep. Erik: He was a quad, and he climbed The Chief. He invented kind of this, almost like a contraption with wheels if I remember right, that kind of rolled up the face. Mark: Yeah it was... the premise was taking the Dolt cart. A climber by name of Dolt had this cart and he used to use it for a hauling system on El Cap. Brad "Szinski", the Canadian guy you're talking about, he came up with this [00:27:00] cart. His hands didn't really work as well as a paraplegic, he lost some muscle mass in his hands and fingers. So he had a different type of system where he could ascend a rope using a crank, and developed that. So there's been all kinds of different adaptations that allow people that are wheelchair users to go rock climbing. Jeff: This sort of set you [00:27:30] on this course to being an improvisational pioneer, those are my words. Were you like that always or do you feel like your accident cued you up for this opportunity to then over the past thirty years... Mark: Thirty five. Jeff: Yeah thirty five years. Now you've continued this trajectory of being this pioneer when it comes to just making it work. You make it work, right? Mark: I was so young. When I got hurt [00:28:00] I was 22. I wasn't climbing big walls, I hadn't got to that point yet of climbing El Cap. Finally, when I did have my accident it kind of made sense. The steeper the climb for somebody in a chair the better. Mountaineering is gonna be really tough. There are ways of doing mountaineering. We got four paraplegics on top of Mount Shasta. Erik: Yep. Mark: And there was a guy named Pete "Rikee". It's funny... people [00:28:30] come to me if they've got an idea, a lot of times they'll want me to be a part of the project. Least... Erik: That was a pod that they were in, that had almost like tractor wheels, right? Mark: Exactly. What we did is we took a snowmobile and cut the snowmobile track in half and made a tractor stance. So you have two tracks and a seat with a bicycle crank, and we actually crank our way up Mount Shasta. We had to get special permit from the Forest [00:29:00] Service. You can only be on Shasta for three days, and we knew we were gonna be up there for a week. So I had to drive up... I was trying to explain to this district ranger on the telephone, he really wasn't getting it. Erik: Sometimes they don't get it. Mark: And he wasn't getting it at all. He was thinking mechanical device... Jeff: Motorized... Mark: Right. He knew who I was, so he said "Come up and bring the machine with you so I can take a look at it." So I brought one of the snow pods up there and I met with the district ranger [00:29:30] and a couple of his back country rangers, and they got it. They said, "This is cool man, we'd like to let you guys do this." They gave us a special use permit. The big thing about the Forest Service and wilderness, or National Park Service wilderness, you cannot take... supposedly mechanized devices cannot go into the wilderness. But if you have a disability, your bicycle could almost be considered a wheelchair, or your snow pod can be considered [00:30:00] a wheelchair. Long as it doesn't have a Briggs and Stratton engine on it. That was the big thing, it has to be a manual piece of a gear that's human powered. So we got that, and we got four paraplegics on top of Mount Shasta. Erik: And El Cap really launched you into being able to do all these amazing things, right? You pretty much became a professional climber, adventurer, doing these things around the world. I know you lit the torch for the Paralympics, right? Mark: I did, I lit the Paralympic torch in Atlanta in 1996. [00:30:30] Muhammad Ali lit it for the able bodied Olympics. They had this torch, and the night before we're training for it... it's a big surprise, they don't want to see the person light the torch the night before, no media, so we're out there. I was gonna climb an 80 foot rope doing rope ascension, doing pull up after pull up. And North Face made me a little, kind of a... we envisioned this Robin Hood thing with... behind [00:31:00] my shoulders, this arrow quiver where I put the actual torch in. I didn't wanna burn my hair, what's left of it, so... Erik: You had a lot more hair... Mark: So I said, "Let's make this torch holder so it comes off your legs." So they made that for me. That night we're training, I get up the 80 foot rope, and I lit the fuse and the fuse blew out. Erik: Oh no. Mark: And the pyrotechnics guy goes, it was windy, and the [00:31:30] next day it was gonna be windy too. So the pyrotechnics guy guys... "Okay Mark, I'll make sure this fuse doesn't go out the night you do it." And I go, "Great." So I get up there in front of 80,000 people, I'm climbing up this rope. Liza Minnelli is singing this song and she's going "Go Mark, Go Mark." The whole stadium of 80,000 people is going nuts. So I lit this fuse, and literally the thing blew up. There was fire all over me. And I'm leaning back, hoping I'm not gonna catch [00:32:00] on fire. Then the fuse went up and lit the actual cauldron, and that was the start of the 1996 Summer Olympics. Jeff: You did not combust. Mark: I did not combust. I had the best seat in the house. Erik: You'd be like a Motley Crue drummer. Mark: Exactly. So that was fun. Erik: Takes us on a little tour of what you did. All those amazing adventures that you did after that. Takes us on a little tour around the world. Mark: What a lot of people don't realize, which I think is harder than climbing [00:32:30] El Cap, or spending 13 days on Half Dome was another big ascent we did years ago... but was doing the Trans Sierra ski crossing. I've done it twice now. I did it in 1993, it was a big winner, and I did it in 2011. So we took a cross country Nordic sit ski. You sit low to the ground, you have two skis mounted underneath a frame with a seat, and you're sitting maybe a foot off the snow. And you have two [00:33:00] poles, and you actually double pole. So you're double poling to make this device go down the trail. I was on the US Disabled Nordic Ski Team. Competed in two Paralympics, in France and in Norway. Got beat up by the Finns, the Norwegians, they're so passionate about that sport. Jeff: And they're vikings. Mark: And they're vikings, man. They're so tough. My best finish out of 30 guys was of fifth place, that was in France. [00:33:30] In Norway, I got even more beat up. I wanted to actually get into Nordic ski racing because I had other things I wanted to do. I wanted to try to get into the back country in a Nordic ski. Back in 93 a guy named Jeff Pegles and myself was also on the US disabled Nordic team. We took sleds, little polks, behind our rigs. We had our bivy gear. And we skied 55 miles from Snowline [00:34:00] on the east side of the Sierra on Tioga road, we got someone to open up the gate. Guy that worked for the power company opened up the gate. We got up to Snowline and we skied from Snowline to Crane Flat, which is 55 miles. Jeff: Wow. Mark: Following the Tioga road. Jeff: Just the two of you? Mark: Well we also had Pearlman with us too. Erik: Filming. Mark: He was filming, yeah. Erik: And, you gotta tell the story about the White Rim. So you biked the White Rim, I think you were on one off mountain bikes? Mark: [00:34:30] Yep. Erik: Or some kind of devices, hand crank mountain bikes. And it was so sandy, the story I heard, you had to get out and you had to pretty much pull yourself on your arms and pull your chair, did you pull the other guys chairs too? Or were the other guys' bikes... Mark: It was an epic, groveling adventure. Seems like everything I do turns into that. Jeff: Yeah. [crosstalk 00:34:50] Mark: If you're not suffering, you're not having a good time. That's kind of how it is out there. We had these one off mountain bikes and [00:35:00] we actually did a Jeep tour to kind of check it out a couple years prior. We did have it a little easier, we didn't carry all our water and food with us, we had a swag wagon out there. Suburban, follow the four paraplegics. Myself, Bob Vogel, and Steve Ackerman. We rode this, 52 miles is the full circumnav of the White Rim. There was times, [00:35:30] yeah, it was an interesting experience out there because some of these washes were like moon dust. We couldn't get our bikes through it. So I had a pair of rock chaps with me and I threw the rock chaps on and did some crawling. Had an 11 mil static rope and dragged the guys behind me. Did a few epic things like that. Jeff: I mean, If I'm riding my mountain bike and I come up on that scene in the middle of the White Rim, who knows what to make of that? Mark: [00:36:00] You can walk man, so best thing to do is just walk your bike. Jeff: Like, "You guys are good right?" and they'll be like "Yep, we're good man." Erik: Leave us alone. Jeff: Leave us alone. Mark: Don't touch me. Jeff: There's nothing to see here. Yeah. Erik: Yeah. Jeff: Wow, that's rad. Mark: And then recently, just a couple of years ago... in the winter we had a drought in California and Tahoe, so I circumnaved Lake Tahoe in a kayak in winter. And that was a really amazing adventure. It was 72 [00:36:30] miles, two nights of camping. But the cool thing was, and it was cool at night, it was really cold at night. There was no power boats. In the winter you don't have any power boats on Lake Tahoe, it was kind of like being out there in the 1800s. Seeing bald eagles, none of the tourists were on the water, it was really a fantastic trip. Dave: So Mark, you are someone who really embodies the spirit of No Barriers and you helped [00:37:00] start the organization. So tell us, all these adventures, all these things you've done to challenge what's possible, what people think is possible. Why No Barriers? Tell us that story. Mark: You know, No Barriers... I did a movie called No Barriers, and I got a poster out called No Barriers. It was a word that really meant a lot to me. My wife and I, we were down in San Francisco at a fundraiser... in those days it was called Yosemite Fund, now it's called Yosemite [00:37:30] Conservancy. We were at this dinner, and I met this kind of wild old character named Jim Goldsmith. And Jim came up to me, knew who I was... we started talking. He had a cabin in the subdivision I live in called Tahoe Dawner. So Jim and I, and Carol, and his wife Connie would get together, we had a couple of dinners together. And then Jim started talking about the Dolomites, and his [00:38:00] son-in-law and daughter. And he said, "Man, it would be really neat to kind of do something for disabled people and able bodied people if we did something in the Dolomites." And I go, "Man, I know a couple of guys who I've done some stuff with, a guy named Hugh Herr, double amputee who's done some rock climbing with him, and Erik Weihenmayer." This was probably after your Everest... Erik: Yeah, after. Mark: This was after your Everest climb. And I said "Hey, these [00:38:30] guys..." we did a climb out in Moab Utah, the three of us, it was kind of gimp helping gimp, it was this real magical event out there. Which was really cool... Erik: Climbing the Fisher Tower. Mark: Yeah. The Fisher Tower. Ancient Ark. Erik: Mm-hmm (affirmative). Mark: And it was this really fantastic climb. I'd like to get these two guys involved with what we're talking about. SO I called Erik, I called Hugh, and we ended up putting our first [00:39:00] little... in those days, it was more of a festival, we called it, instead of a summit. We did it in the Dolomites. It was a very obscure little place up in the mountains, this real beautiful location, but nothing was really accessible. The hotels weren't that accessible, everything was kind of difficult to put this together. But it was this real magical place in the mountains... Erik: I remember the chair operators didn't even know how to get people with disabilities on the chairs. Mark: They didn't have [00:39:30] an idea. They didn't... yeah. Erik: On the ski lifts. Thank you. Yeah. Mark: They weren't doing adaptive skiing in those days in that little village. It was actually the home of the 1956 Olympics. SO that was kind of my envision was to start this, and who knew it was gonna get into what it is today. It's just amazing what you guys have done, and all the different things No Barriers has to offer people. Erik: What do you think about when you think about the evolution? You had this little germ [00:40:00] of an idea to go to this town and start talking about accessibility and innovation, and some of your lessons about how you've broken through barriers, or how the three of us had broken through barriers. And now, when you look at it today... Mark: [sighs] It's kind of mind boggling how it's grown so big and how many different people it affects, it's not just the disabled community, it's able bodied community bringing everyone together. Trying new experiences. The youth programs [00:40:30] that you guys have been doing is tremendous over the years. Soldiers to the summit. We're having all these guys coming back doing ten tours, they're not adjusting back into society very well, and taking them out into the outdoors with Jeff and different mountain guides, it just changes their lives. Brings them more back into a reality where they can really kind of adjust back into society. And then the summit is just... I love [00:41:00] coming to the summits. I've been to every one now, I haven't missed one since the beginning. It's gonna be fantastic in New York, I'm really looking forward to that. Erik: And you bring your climbing wall, your portable climbing wall. Mark: I'll have... Erik: Almost to every summit. So that's your mission now, right? To go around and use your climbing wall as a No Barriers tool to help people break through barriers. Tell us about that. Mark: Absolutely. Climbing has been such a big part of my life, that I just like to introduce different [00:41:30] people to the sport. A lot of times, somebody that's... we don't say electric chair, electric chair is something you die in. Power chair. A power chair takes you from point A to point B. A power chair user, a lot of times doesn't have all the... there's not as many things out there for a power chair user to participate in. Climbing on my wall, they can. We have these harnessing systems [00:42:00] that support your core. It's almost like a Bosen's chair, pulley system. If you have the desire to get on the climbing wall, we can facilitate that. We don't turn anybody away. We've had people that weigh 500 pounds on my wall before. Very obese wheelchair users... it doesn't matter. I had a gentleman that had spina bifida and he was unfortunately caught up in the American society of drinking a lot of soda, [00:42:30] and became really big. We got him on the wall, it was really difficult for him. We would talk to him and he wouldn't really look at you eye to eye as we were talking. I saw him a year later, he dropped 150 pounds, quit the soda, got into a training, cut his hair in a mohawk, and it just changed his life. Got out of the power chair and was in a manual chair. So climbing was kind of the responsibility of really changing this guys life, and now I see [00:43:00] him down in Los Angeles. I probably take the wall to Southern California maybe seven or eight times a year, San Francisco, Bay Area. I sort of have different groups hire me year after year, once they experience the wall they really want to have it be part of their event. We bring in, mini El Cap I call it, and we get people on it and we have a great time. Erik: And you're traveling around with your wall, full time. People bring you in to create this experience for their [00:43:30] rehab hospital or organization or team, right? Mark: Exactly. All those venues... I do adaptive climbing seminars. So a gym might call me and wanna know, "how do we get an adaptive climbing program going?" So I do that. And a lot of times I'll do not only a seminar on adaptive climbing, but then maybe that evening do a show and tell about adventure sports and where adventure sports have taken the disabled in the last 35 [00:44:00] years. Erik: And you are like Kleenex now, because... you talk about the pulley system, it's not a pulley system, pull up system, a lot of people say, "Oh yeah, Mark Wellman system." Mark: Yeah, it's... yeah it's kind of getting that way. Jeff: You're like Beyonce now. Mark: I'm like Beyonce. It's just kind of neat that my passions over the years... everybody should have a passion. And my passion has always been [00:44:30] to be out camping, doing something in the outdoors, coming up with new ideas, new technologies... and some of these technologies are more like a backyard technology. It's not that fancy. Sometimes some of the most simplest things can change something. Like mountain bike tires on a wheelchair can change a chairs getting into the back country tremendously. Mounting a pull up bar in a sender can allow a paraplegic [00:45:00] to do 7000 pull ups in eight days to go up El Cap. Just simple little technologies can really change peoples' lives, and you can take that backyard technology, garage technology, put something together that works for you that can help a whole bunch of people. Dave: I'd like to go back to that... You've told us a story, sort of the arc of your life, and when I look at you Mark and think about what you've accomplished I think "God, this is incredible. [00:45:30] This is an incredible human being that very few people who had what happened to you would ever have chosen the path that you have chosen." And I think, when I think about our No Barriers community, every so often you get folks who will say "Yeah, that's Mark Wellman but that couldn't have been me. You're putting someone in front of me that's so incredible, how could I possibly do this?" Erik: Yeah, you're de motivational. Mark: Right, right. I know, I get it. Dave: I'd love to hear, what do you think we can... 'cause this is what we do at No Barriers. We... If you're [00:46:00] listening to this, it's not like we take everyone up mountains, but we try to remind them about something in their spiri t... Mark: Yeah. Dave: ...that teaches them anything is possible. So talk to us a little bit about, Mark, how did you get to that point? Is it just sort of who you were from the beginning, was it an evolution? It just seems like everything you encountered, you are like, "I can do more." Mark: I think it's really important for people to get out of their comfort zone. Nowadays, it's so easy for young people to get... they get into gaming. And they [00:46:30] just, you know... it's stagnant. You're not getting out of your comfort zone. And the outdoors has a way of getting you out of your comfort zone. And you can make it safe... you don't need to think about what I do, it's more about finding, maybe getting some different experiences. And that's what's so cool about the summit. You have all these different activities going on where you just get a little taste of it. And hopefully [00:47:00] that little taste will inspire your imagination to want to try it again. And that's where I think it's really important if you're facilitating skiing or climbing, or whatever you're facilitating, you have to make sure that these people, their first experience is a good one. If they don't have a good experience, most likely they're not gonna go back to it. And, it's really important that the very first time... One of our board members, Sasha. [00:47:30] He was an academia guy, a professor. He came to the No Barriers event in Squaw Valley, the first one. Never had tried climbing before, and we took him to Donner Summit and got him up on this road cut climb that's 80 feet with big exposure, and it changed the guys life. It was something he was real nervous about, but it was getting him out of his comfort zone, and him [00:48:00] really having, you know... it was exciting for him, it was thrilling, it was challenging not only physically but mentally challenging at the same time. All those things combined. Kind of changed his life. And he became a board member of No Barriers because of that. Dave: Yeah. Mark: And there's stories like that all the time. Or Mandy, I remember her... wonderful singer. She got on my wall, it was 25 feet, and she [00:48:30] was really scared. It was a really scary moment for her where she had this big fear of heights. It wasn't like she was on a 1000 foot rope, she was on a 24 foot wall. But she might have well have been. Jeff: Relative for her. Mark: Could have been a 1000 foot climb. But she made it through. And came down... I got a guy that helps me, Wes, he's a search and rescue guy, kind of a big guy. He's just magical with [00:49:00] people, and really helped her a lot. So, you have all these different experiences... Erik: And I think that experience, by the way, gave her the courage to go out and do something completely non-climbing related, which was to write music and to go on to America's Got Talent, and... Mark: Exactly. Erik: Get into the finals, and now skyrocket into stardom. Mark: To fame. Absolutely. Making a better quality life for herself. [00:49:30] A lot of times when you say, somebody that's a wheelchair user... what is it, like 90 percent of the people in wheelchairs don't have jobs. And it's always kind of bummed me out, I'm thinking, "Wow." Why would you wanna be caught in a system like with Social Security and be basically poor your whole life, because "Oh I have Medicare, I have my Social Security disability," So you're trying to live on six to eight hundred dollars a month. And you're caught [00:50:00] in this kind of vicious circle. You've got to get away from that somehow, and get into the workforce, be productive. You're gonna feel better, you're gonna be a more productive citizen in this country, and you're not gonna be wrapped up in this vicious circle of never getting ahead and always having the government thumb you down, so to speak. Erik: Last question for [00:50:30] you from my end, this is Erik, and I wanna know, I've made it kind of clear that I look up to you. Tell me, who are the people that you look up to? Tell us about that guy Larry, tell us about some people who influenced your life. Mark: Oh man. There's been a lot for sure. There was a guy named... actually I think you're thinking of a guy named Mark Sutherland. When I first got hurt, Mark was a quadriplegic ten [00:51:00] years post to my injury. And he was back in the hospital. He had a bone spur, the spur was touching his spinal cord, and he was losing some of his action. Some quadriplegic can move their arms and they can push manual chairs, and he was one of those. But he was losing some of his arm strength, so he was in the hospital, and my room was next to his. We would talk at night. 'Cause I was really bummed out when I was first injured. To me, being a paraplegic was a fate [00:51:30] worse than death. I was on the sixth floor, if I could have crawled over to the window and jumped out I would have cause that's how bad I felt. I was just thinking, "Not having the use of my legs, I'm not gonna ski again, I'm not gonna climb." I was 22, I was just like, "Why didn't the mountain just take me." Those were the kind of thoughts I was having. But then I would go into this guys room, Mark Sutherland, and he would talk about, "Oh I had this milk truck that I converted, and I had a stool. One time I was driving it with my hand controls [00:52:00] and I fell off the stool, and I was on the ground and I had to throw my hand on the brake to stop it so I didn't kill anybody." Jeff: And you were like, "That's the greatest story ever." Mark: Yeah. I wanna do that. So I was just hearing this stuff from this guy, and he was talking about girlfriends, and how he was running around doing this and doing that, and I'm going, "Man, this guy has a life." And it was really inspiring to be... so where I was really depressed and laying in the hospital bed, and couldn't feel [00:52:30] my lower extremities, and "What's a catheter?" And I'm just like, "Man, this is horrible, what did I get myself into." And this guy was really upbeat and uplifting... Jeff: Showed you it wasn't a death sentence. Mark: Yeah. Showed me it wasn't a death sentence, and let's get on with life, dude. And it was like, boom. That just changed me. Then we went into rehab together, we were more in a hospital setting and then we both went into our physical rehab. That's [00:53:00] when it just started clicking for me, and that was it. Dave: Well, just to wrap up this excellent conversation that we're having about the history of No Barriers and all that you've done as well just individually, you've seen No Barriers be this thing that started in the Dolomites in 2003, we're 15 years into this. What's your dream for what it becomes? Mark: Wow. I would just consider it to be... I'd like to see maybe a couple summits a year, possible. [00:53:30] More, smaller clinics would be really cool too. I think you guys are really on a good, good path. But maybe some smaller events too. Just keep growing it. Keep doing more of these kinds of things. More technology. Bringing in more people, better speakers. Better people that are... or people that are doing more things that inspire others that give the ideas [00:54:00] to do more things. I'm amazed in 15 years where it's come to. Who knows where it's gonna go. Another 15 years from now, man this could be a huge, huge organization that could affect a lot of people and bring a lot of people together. This whole family, bringing the tribe together. It's always fun at the summits, and seeing people I haven't seen for a year, [00:54:30] spending time with them. I love getting people out climbing, so that's my passion. Erik: What if people want to learn how to get in touch with you, how to work with you, how to bring your wall to their organization? Mark: Yeah. Google Mark Wellman or just go to my website, No Limits Tahoe dot com. Give me a call. Erik: Although they won't talk to you, 'cause you're never home. You're always out [crosstalk 00:54:55] or something. Dave: Always on the road, right. Mark: Well, no, yeah I'm easy to get a hold of. Talk to my wife, Carol, [00:55:00] and I can get back to you. Erik: Right. Mark: Send me an email. I'm better on the phone, I don't like to email tons. Love to talk to you, if you have ideas lets talk about, lets see you at the summit. Lets get out and enjoy life. Erik: Cool. Well thank you so much Mark. Jeff: Listen Mark, I know you well enough to know you don't need to hear what I'm about to tell you, but, I think it's important for you and the listeners to know [00:55:30] in conversations like this, it becomes so clear how you are sort of the upside down pyramid. And you're the point on the upside down pyramid. And it all sort of funnels up from you, really. And I know there's others, but you're the man. And I know it's important for you, it is important for me to know that you know how many thousands of lives you've impacted. Erik: Tens of thousands. Jeff: Thousands of lives dude. You have been the kick starter [00:56:00] and the imputes. And you're just one of the most wonderful pioneers. I know you know it, but you need to hear it more, because you're the man. Mark: I appreciate it man, it's humbling. And, to take a passion that I had and a dream... and like I said, just simple adaptations, a pull up bar on a jumar. Man, how that changed other people to go climb up El Cap, or do Castleton, or whatever [00:56:30] mountain you want to get up, it's been a pretty cool experience. It's been fun to work with other companies. We're making more adaptive climbing equipment now. It's really kind of evolved from just handmade rock chaps to a real sophisticated pair of rock chaps that allows people to get out there and do a lot of cool stuff. Dave: Well it's been an honor to have you here Mark, I know many of our listeners are part of that No Barriers tribe. Many of them will know you, but a [00:57:00] lot of them won't. The movement has grown so big that it's well beyond you. But per what Jeff was saying, it's so important I think for the people of our community to know where this began. Mark: Mm-hmm (affirmative). Dave: And you are the point that Jeff mentioned where it began, and so, thank you so much for joining us, we appreciate having you. Mark: My pleasure. Erik: What did you guys take away from that? Might take us a while. Dave: Yeah. Exactly. Jeff: Might be a lengthy debrief on that one. Dave: I guess for me, as someone who's helping to build [00:57:30] this movement, like I was ending with there, just to remember the roots of where No Barriers began which is individuals coming together in small communities around creative ideas to do stuff that people didn't think was possible. And as we start to move to tens of thousands, maybe millions over the next ten years of people that we impact, that there's something in that special sauce that's still about the [00:58:00] individuals getting together having a fun, creative idea and going out and pushing their comfort zone. Erik: Yeah. I think that, No Barriers recipe is sort of hidden right in the story of El Capitan, which is... Mark's a smart guy, but he's not a scientist or anything, he's not Hugh Herr, who's inventing stuff where you go, "I could never do that." What he said is a pull up bar and a jumar. These are commercially available things. I think he had to adapt a few things, but [00:58:30] not all that crazy technology. Pretty simple. You combine that series, that innovation with the human spirit and a great friend or great support system, a great rope team, you do this amazing thing that opens up the door for a lot of people. It's a pretty simple recipe. Dave: It is. Jeff: All the big things that have happened with regards to our species all started with this small [00:59:00] germination of somebody sitting in their theoretical garage just being like, "How do I do this? Hmm?" And head scratch, and start piecing these things together, and then, boom, the movement begins. I think Mark embodies that, and what a great cornerstone for this organization. Dave: Well, and the movement continues. So if you're sitting there listening saying, "I wanna be a part of this organization, I wanna be a [00:59:30] part of No Barriers," please go to our website, No Barriers USA dot org. You can join us at the summit that Mark mentioned that's coming up in October in New York. There are many more ways you can join us but please, No Barriers USA dot org is our website. You can also share our podcast with your friends and colleagues and families, and follow us on our Facebook page. Thank you so much for listening. Erik: Live No Barriers. Dave: Thanks.

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Gruesome Magazine - Horror Movie Reviews and Interviews
Reviews of Muse - Marrowbone - e-Demon

Gruesome Magazine - Horror Movie Reviews and Interviews

Play Episode Listen Later Sep 17, 2018 56:20


This week, the Grue-Crew shield their eyes from the on-screen horror of e-Demon, head to the dilapidated home of George MacKay, and discover that a Muse may enjoy killing people. The first film tonight is E-DEMON of director Jeremy Wechter, a found-footage/computer-screen yarn with a "viral" demon Skyping his way to doom. In the second slot,  MARROWBONE from director Sergio G. Sánchez lands on HULU with a gothic ghost tale featuring George MacKay, Anya Taylor-Joy, and Charlie Heaton. The final film is MUSE where an artist gets more than he bargained for. The hunt is on for the diamond in the rough. Doc Rotten from Horror News Radio and Jeff Mohr from Decades of Horror: The Classic Era are joined by Rafe Telsch and Vanessa Thompson.  Gruesome Magazine Podcast - Episode 036 Muse - Marrowbone - e-Demon   E-DEMON On a mission to bring the Devil to Earth, an escaped demon manipulates a group of friends hanging out on a video-chat. Since this ruthless demon can possess multiple people at once, knowing who to trust is the key to survival.   "A.J. is so slimy. I have to give it to (Christopher Daftsios) as an actor. He portrayed that character really well - gross and slimy and really despicable." - Vanessa "I kind of got into the overall gist of the plot of what this demon was trying to do. … (but) it didn’t quite make sense. I think there are some flaws in its own mythology which undoes itself." - Doc Director: Jeremy Wechter Cast: Julia Kelly, John Anthony Wylliams, Christopher Daftsios Release: Jeremy Wechter's e-DEMON - in theaters and On Demand September 14, 2018 MARROWBONE A young man and his three younger siblings, who have kept secret the death of their beloved mother in order to remain together, are plagued by a sinister presence in the sprawling manor in which they live.   "Even though I could feel the time, I was okay with it, because it was very intricate. The story had a lot of depth to it. … I enjoyed it. The actors were all engaging, The cinematography was great and I loved the sets." - Jeff "The good thing about this movie is it sticks the landing. It really ends on a high note." - Doc Director: Sergio G. Sánchez Cast: George MacKay, Anya Taylor-Joy, Charlie Heaton Release: Currently available on HULU MUSE A painter's life is forever changed when a mythical and deadly spirit from Celtic lore -- a Leannán Sí -- becomes his muse and lover.   "This is (made by) someone who really values art, because the art that they use in this film, that’s created, that’s inspired by the muse, had to be created by someone and it’s beautiful. There is some beautiful lighting and (there are) some beautiful scenes and shots." - Vanessa "Jennifer Lauren Friedman is the artist for Adam’s paintings and I think she deserves credit for that because those were a key part of the movie and in this case, this was really good art. It really sold the whole story." - Jeff "There are moments here that I think really work especially as it gets toward the end and I do like the resolution quite a bit. I like the decisions they made." - Doc Director: John Burr Cast: Riley Egan, Elle Evans, Kate Mansi Release: Currently available online by DarkCoast and TriCoast

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EMplify by EB Medicine
Episode 20 - Emergency Department Management of North American Snake Envenomations

EMplify by EB Medicine

Play Episode Listen Later Sep 1, 2018


Jeff:  Welcome back to Emplify, the podcast corollary to EB Medicine’s Emergency Medicine Practice. I’m Jeff Nusbaum, and I’m back with my co-host, Nachi Gupta and we’ll be taking you through the September 2018 issue of Emergency Medicine Practice - Emergency Department Management of North American Snake envenomations. Nachi: Although this isn’t something we encountered too frequently – it does seem like I’ve been hearing more about snake bites in the recent months. Jeff: I actually flew someone just the other day because the local ED ran out of CroFab after an envenomation in Western PA. Nachi: Yeah, this is definitely more than “just a boards topic,” and it’s really important to know about in those rare circumstances. In terms of incidence, there are actually about 10,000 ED visits in the US for snake bites each year, and 1/3 of these involve venomous species. Jeff:  That’s a good teaser, so let’s start by recognizing this month’s team – the two authors, Dr. Sheikh, a medical toxicologist, and Patrick Leffers, a pharmD, and emergency medicine and clinical toxicology fellow. Both are at the University of Florida Jacksonville, and they reviewed a total of 120 articles from 2006-2017, in addition to reviews from both Cochrane and Dare. Nachi: And don’t forget our peer reviewers this month, Dr. Daniel Sessions, a medical toxicologist working at the South Texas Poison Center, and our very own editor-in-chief, Dr. Andy Jagoda, who is also Chair of the Department of Emergency Medicine at Mount Sinai in New York City. Jeff: What a team! But, let’s get back to the snakes. As some background, from 2006-2015 there were almost 66,000 reported snake exposures and 31 deaths from snake envenomation in the US.  Of course, this number likely underestimates the true total. Nachi: And there are two key subfamilies of venomous snakes to be aware of – the Crotalinae – or pit vipers – which includes rattlesnakes, copperheads, and water moccasins; and the Elapidae – of which you really only need to know about the coral snake. Jeff:  And while those are the only two NATIVE snake subfamilies to be acutely aware of, don’t forget that exotic snakes, which are shockingly popular pets -- they can also cause significant morbidity and mortality. Nachi:  Oh, and one other quick note before we get into the epidemiology – most of the recommendations this month come from expert opinion, as high quality RCTs are obviously difficult.  In addition, many of the studies were based in other countries, where the snakes, the anti-venoms and their availability, and the general healthcare systems are different from those that most of us work in. Jeff:  Unless we have listeners abroad? Do we have listeners in other countries? Nachi: Oh we definitely do... but we are going to be a bit biased towards US envenomation today. In any case, venomous snake bites occur most frequently in men aged 18 to 49 during warmer months with provoked bites occurring more frequently in the upper extremities and unprovoked bites in the lower extremities. Jeff:  In one study of poison center data from the last decade, nearly half of all victims of snake bites were victims of unknown type snakes.  However, of those that were known, copperheads were the most common, while rattlesnakes caused the most fatalities – 19 of 31 in this dataset. Nachi:  In a separate study of snake bites in the early 2000s, 32% of exposures were from venomous snakes and 59% of those resulted in admission. That’s remarkably high. Jeff:  Snake bite severity depends on several key factors: the amount of venom, the composition of the venom, the body size of the bite victim, the victim's clothing, the size of the bite, comorbid conditions, and the timing and quality of medical care the victim receives. Nachi:  To be a bit more specific - First, the amount of venom will depend on the species of snake, with variations even occurring within the same species.  Secondly, while there is a correlation between rattlesnake size and bite severity, there is much more at play.  Some snakes can even vary the amount of venom based on threat risk – with defensive bites having different profiles than bites to strike prey. Jeff: I found it pretty interesting that  an estimated 10-25% of pit viper bites are considered dry bites, that is, ones in which no venom is released. Nachi:  Right, this is just one reason why all victims shouldn’t immediately get anti-venom, but we’ll get there. Jeff:  We definitely will.  As we already stated – venom composition varies greatly.  Pit vipers produce a predominantly hemotoxic venom.  Systemic effects include tachycardia, tachypnea, hypotension, nausea, vomiting, weakness, and diaphoresis.  Neurotoxicity is rare and is usually due to inter-breeding between species. Nachi:  While rattlesnake bites are associated with higher morbidity and mortality, the more common copperhead bites typically only cause local tissue effects.  More serious systemic findings such as coagulopathy and respiratory failure have been reported though. Jeff:  So that’s a solid background to get us started.  Let’s talk about the individual snakes.  Why don’t you start with the crotalinae family – aka the pit vipers. Nachi:  Sure – the crotalinae includes rattlesnakes, cottonmouths (also known as water moccasins), and copperheads.  These make up the vast majority of reports to the poison centers.  They can be identified by their heat sensing pits located behind their nostrils (hence pit vipers).  As a general rule, you can also identify the venomous snakes by their triangular or spade-like head, elliptical pupils, and hollow retractable fangs. Jeff:  wait, so you want me to walk up to the snake and ask to see if their fangs retract… yea, no thanks. Nachi: Haha, of course not, I’m just giving you some of the general principles here. In contrast, non-venomous pit vipers have rounded heads, round pupils, a double row of vertical scales, and they lack fangs. Jeff: In terms of location, rattlesnakes are found in all states but Hawaii, and cottonmouths and copperheads are distributed mostly throughout the southern and southeastern states, with copperheads also extending further north, even into Massachusetts. Nachi: Moving on to the Elapidae –  there are 3 species of coral snakes, only two of which you need to know about, Micrurus fulvius fulvius or the eastern coral snake and Micrurus tener or the Texas coral snake.  Of the two, the eastern or Micrurus fulvius fulvius produces more potent venom. Jeff:  As you may have guessed by their names, the eastern coral snake is found in the southeastern united states, specifically, east of the Mississippi -- whereas the Texas coral snake lives west of the Mississippi. Nachi:  Venomous North American coral snakes can be recognized by the red and yellow bands around their bodies whereas their nonvenomous counterparts can be recognized by their characteristic black band between the red and yellow bands. I’m sure you’ve heard the popular mnemonic for this… Red touch yellow kill a fellow, red touch black, venom lack. Jeff:  I have heard that one, and it’s not a bad mnemonic. Just remember that this is more of a guideline than a rule, as it doesn’t always hold true. Nachi: Coral snakes also tend to chew rather than bite thanks to their short, fixed, hollow fangs.  Locally, bites can lead to muscle destruction thanks to a certain myotoxin.  Systemic signs of infection include nausea, vomiting, abdominal pain, and dizziness.  Jeff: The venom also contains a neurotoxin which can lead to diplopia, difficulty swallowing and speaking and generalized weakness. Nachi: Complicating matters even further, the onset of these symptoms may be delayed for many hours. Jeff:  Alright, so I think that about wraps up the background.  Let’s move on to the meat and potatoes of this article, starting with the differential. Nachi:  For differential this month, we are really focusing on differentiating a venomous snake from a non-venomous one. Jeff: Oh yeah, this is where you want us to ask the snake if it can retract its fangs, right? Nachi: Ha very funny – Although the type of snake may be obvious if the patient owns the snake, for most cases you see in the ED, the type of snake won’t be clear. Try to get a description of the snake and consider your local geography. Some patients may even bring the snake in with them. Jeff: yea, no thanks. As for prehospital care, it’s actually pretty interesting stuff as recommendations have changed many times.  You may have heard of the recommendations for incision / excision, use of venom extraction devices, tourniquets, chill methods and even electroshock therapy – well these methods are all OUT. Nachi:  Not only are they out, they actually worsen outcomes, so definitely don’t pursue any of them.  Instead,  since no treatment has been shown to improve outcome, you should prioritize prompt transport. Jeff: And while we definitely don’t want to encourage ill-advised attempts at capturing the snake, taking pictures at a distance may be helpful in identifying it.  Oh and the authors do note- pretty terrifying stuff coming up here so brace yourself - even if the snake is dead the bite reflex is still intact… Nachi: And that’s why I work in city hospitals… Jeff:  There’s also a bit of controversy here with regards to pressure immobilization, which is definitely something I thought we were supposed to do in the prehospital setting. Apparently in other countries, like Australia, prehospital providers frequently employ pressure immobilization – that is, wrapping bandages proximally up a splinted limb to impede lymphatic toxin spread. Nachi:  Right, but in Australia, not only are the snakes more venomous but the hospital transport distances are much longer, so, basically they sacrifice the limb to potentially save a life.  In the US, with our current indigenous snake population and the relatively short transport distances, this isn’t justified at all! Jeff:  Take home: based on the current literature, the American College of Medical Toxicology, other experts, and Drs. Sheikh and Leffers recommend against pressure immobilization in lieu of prompt patient transport to definitive treatment. Nachi:  Good to know – alright so now we have the patient in the emergency department, let’s begin ED care.  As always – IV, O2, Monitor including end tidal CO2 if you suspect a neurotoxic or exotic snake bite.  Of course, avoid using the affected limbs for vitals… Jeff: If not done already, remove any constrictive clothing or jewelry and mark the leading edge of pain, edema, and erythema both above and below the bite.  If EMS has placed bandages, leave them in place until antivenom and resuscitative equipment is ready. Nachi:  And definitely involve the poison control center or a medical toxicology service early as they are an amazing resource. It’s an easy number to remember.. 1-800-222-1222. If you just type “poison control center” into google, that number will come up immediately. Jeff: Hypotension should be treated with isotonic fluids and, as usual, anaphylaxis should be treated with the usual cocktail of antihistamines and epinephrine at first IM and then via infusion if refractory. Note that antivenom will NOT reverse anaphylaxis on its own. Nachi:  When eliciting a history, there are a number of important factors to look out for, including – time and location of the bite, description of the snake, tetanus status, comorbid conditions, medications and allergies, any systemic or neurologic symptoms, muscle cramps, perioral tingling or numbness, metallic taste, history of previous snakebites and any reactions to previous envenomation or antivenom treatment. Jeff: Moving on to the physical exam, when examining the wound, look specifically for local tissue effects which occur in over 90% of patients after pit viper envenomations.  In such cases, you would expect pain, erythema, swelling, tenderness, and myonecrosis beginning at the wound site and then spreading via the lymphatic system. Nachi:  In addition, specifically with pit viper envenomations, monitor the patient for possible compartment syndrome as the venom can lead to local tissue destruction, increased cell permeability, third spacing of fluids, and bleeding.  And remember that while the local compartment may be hypertensive, the patient may also have systemic hypotension. Jeff: Just to reiterate what I said before – hypotension may indicate severe anaphylaxis and its not necessarily just due to third spacing.  Regardless, the treatment is the same – epinephrine. Nachi:  Good point, but let’s focus on compartment syndrome for a minute.  True compartment syndrome is actually quite rare --- its really subcutaneous hypertension with preservation of otherwise normal compartment pressures that you’re most likely to see.  Compartment syndrome should therefore only be diagnosed by actual compartment measurements and not just the exam.  However, if you are dealing with compartments that can’t be measured, like in the fingers, you’re only choice is to be guided by the exam… Jeff:  Risk factors for compartment syndrome in the setting of a snake bite include envenomations in small children, involvement of digits, application of ice or cold packs, and delayed or inadequate antivenom administration. Nachi: In terms of respiratory effects of envenomations – they aren’t common.  Both bites to the head or neck and neurotoxin containing venom are potential causes. In the setting of respiratory failure, be prepared with advanced airway maneuvers like nasotracheal intubation or cricothyroidotomy. Antivenom will not reverse respiratory failure. Jeff: Neurologic effects may be present upon arrival but may also be delayed up to 12 hours in the case of eastern coral snake bites. Nachi: It’s noteworthy that in one study of almost 400 eastern coral snake exposures, the onset of systemic symptoms occurred on average 5.6 hours after the bite.  So definitely remember that repeat exams and observation will be tremendously important. Jeff:  The actual neurologic symptoms to look for depend on the snake.  Coral snake venom can produce a descending flaccid paralysis characterized by motor weakness, especially of the cranial nerves.  Similarly pit vipers, especially the Mojave rattlesnake, have also been associated with muscular weakness of the cranial nerves and even respiratory insufficiency. Nachi:  Pit viper envenomation can also lead to myokymia which is repetitive small muscle fasciculations.  Unfortunately, this myokymia may not respond to antivenom administration and myokymia of the chest well and torso can necessitate intubation in extreme cases.  Both myokymia and myonecrosis may lead to rhabdo in the case of significant envenomations. Jeff:  Pit viper envenomation can also cause hematologic effects.  Fibrinolysis and platelet consumption at the bit site can lead to decreased fibrinogen and thrombocytopenia.  In severe cases this can lead to systemic bleeding and even hemorrhagic shock.  Those on anticoagulants and anti-platelet agents are at increased risk. Nachi:  Dermal effects such as edema, ecchymosis, bullae, and bleeding are not uncommon, but up to 50% of coral snake bite victims may have none of these. Jeff:  And to round out this section – just be aware that rare effects such as osteonecrosis, ischemic stroke, massive PE, and septic shock have all been reported. Nachi: Let’s move on to diagnostic studies.  Most patients require a CBC, coags, and a fibrinogen concentration.  Those with systemic toxicity should also have their electroyltes, CPK, creatinine, glucose, and urine tested. Jeff:  And while the data is somewhat mixed, one study suggests that all patients with pit viper envenomations need their coags checked, not just those with severe symptoms as in one series nearly 90% of patients had missed coagulation abnormalities.  The clinical consequences of this aren’t clearly explained, so the authors don’t make a specific recommendation. Nachi:  In terms of imaging, a chest x-ray should be obtained in those with respiratory symptoms and ultrasound may even have an expanding role here for tracking edema, looking for fluid collections, and assessing deep muscle compartments and vascular flow. Jeff: I feel like we should get some entry music for every ultrasound reference because it seems to make its way into just about every episode. Nachi: What would it sound like? You bring this up every month. I’ll look into something for a future episode. If any of our listeners have a suggestion, shoot us an e-mail at emplify@ebmedicine.net. In terms of monitoring and observation, this is important, ALL patients with suspected pit viper envenomations should be observed for 8-12 hours with the leading edge marked every 15-30 minutes. Jeff:  In addition, serial diagnostic testing may also be needed as such changes will be used to guide treatment.  In those with systemic symptoms, lab testing will be required every 4-6 hours prior to discharge. Nachi:  Before we move onto treatment – let me quickly mention grading.  There is no universal grading system.  The snakebite severity score, the minimum-moderate-severe score, and grade 1-4 score which consider symptoms, exam findings, and lab abnormalities have all been studied.  None have been validated and none track changes, so the authors recommend relying on severity of symptoms and progression of symptoms to guide treatment. Jeff:  The crux of treatment for pit viper envenomations is with supportive care and anti-venom. Nachi:  FabAV or CroFab is the antivenom of choice for pit viper envenomations.  This antivenom is made from extracting the Fab portion of anti-venom antibodies from envenomated sheep and processing them with papain. Jeff:  Since the sheep are injected with venom from the western diamondback, eastern diamondback and Mojave rattlesnake as well as the cottonmouth, the FabAV is most effective against venom from these snakes, however it does have cross reactivity to other immunologically similar venoms. Nachi:  Indications for FabAV include a more than minimal local swelling, rapid progression of swelling, swelling crossing a major joint, evidence of hemotoxicity, signs of systemic toxicity including hemodynamic compromise, neuromuscular toxicity, and late or recurrent new-onset coagulopathy. Jeff:  Initially, dose FabAV as a bolus of 4-6 vials, IV.  With life threatening envenomations or those with cardiovascular collapse, double the starting dose to 8-12 vials.  The goal is arresting progression, improvement in coagulation abnormalities, and resolution of systemic symptoms. Nachi: Although FabAV will reduce the duration and severity of symptoms and lab abnormalities, it will not reverse tissue necrosis and may not reverse neurologic effects. Jeff:  Once the symptoms have been controlled after the bolus dose or a second bolus dose, maintenance dosing of 2 vials every 6 hours for 3 doses is recommended to prevent recurrence. Nachi:  So to reiterate.  4-6 vial bolus to start, doubled in severe cases and then 2 vials every 6 hours for 18 hours after that. Jeff:  You got it. Nachi:  And like most, maybe all medicines, there are side effects and contraindications to be aware of.  Hypersensitivity reactions and serum sickness to FabAV have been reported as 8% and 13% respectively.   Most are mild and can be treated with your standard bundle of steroids, antihistamines, fluids and epi. Jeff:  Risk factors for developing allergic reactions to FabAV include  a known allergy to papaya, papain, chymopapin, pineapple enzyme bromelain, and previous allergic reaction to FabAV. Nachi:  Although FabAV isn’t produced using copperhead venom, it may be effective in severe envenomations and in one study, FabAV reduced limb disability compared to placebo. Jeff:  Therefore, the authors very reasonably advise that you should use the patient’s clinical picture and individual factors rather than the snake species to guide your treatment. Nachi:  Interestingly, compartment syndrome should be treated with the initial 4-6 vial dose of antivenom and not necessarily a fasciotomy.  Fasciotomies have not been shown to improve outcomes and are reserved only for those failing anti-venom treatment. Jeff:  The reason for this is that antivenom may reduce tissue pressures obviating the need for fasciotomy.  In addition, fasciotomy wouldn’t affect muscle necrosis that is occurring so fascia removal really doesn’t solve anything. Nachi:  And just as anti-venom can be used to treat elevated compartment pressures, it can also be used to treat coagulopathy. Jeff:  Blood products should be used for those who are actively bleeding or severely anemic as venom does not discriminate and will destroy whatever blood it comes across. Nachi:  Recurrent and late onset coagulopathy after FabAV treatment has also been well described.   Although not exactly clear why, some speculate that it occurs for one of 4 reasons. 1) because the half life of FabAV is shorter than that of the venom, or 2) because the venom is initially stored in the soft tissues and then slowly released over time or 3) because the venom has a late onset component, or lastly, 4) there is delayed dissociation of the venom-antivenom complexes.  Regardless of the mechanism, late onset coagulopathy can be treated with FabAV. Jeff:  Luckily, bleeding associated with coagulopathy and bleeding associated with late onset coagulopathy are both extremely rare.   Nachi:  Moving on to coral snakes.  Coral snake bites should be treated with NACSA or North American Coral Snake anti-venom.  This antivenom halts or at least limits the progression of muscle paralysis and shortens the clinical course. Jeff:  Most experts recommend NACSA treatment with the first signs of systemic toxicity and not for all comers.  This recommendation is backed by the literature as in one observational study those treated with prophylactic NACSA did less favorably as compared to those who got it only after symptoms onset.  This is probably because NACSA doesn’t reverse neuromuscular weakness and only limits progression. Nachi:  And it’s not like you are just sitting by and watching while doing nothing – focus your initial treatment on wound care, pain control, and then observation for the development of systemic symptoms.  The exact length of observation will depend on the snake, but should be somewhere between 8 and 24h. Jeff:  As for dosing – the initial NACSA dose is 3-5 vials IV for both peds and adults with a repeat dose if the initial symptoms don’t improve. Nachi: Side effects and adverse reactions occur somewhere between 8-11% of the time with dermal reactions being most common and anaphylaxis being the most severe. Jeff: There is also one last anti-venom to be aware of – Coralmyn, for coral snake envenomations.  Coralmyn is a polyclonal antivenom F(ab’)2 coral snake antivenom, developed because the current lot of NACSA has technically expired although the date has been extended numerous times.  It’s currently in a phase 3 trial, so keep your eyes out. Nachi:  Other non-antivenom treatments that have been tested include acetylcholinesterase inhibitors and trypsin at the bite site – both should be considered experimental at this point. Jeff:  To wrap up the treatment section, let’s talk exotic snakes.  You may recall from the intro that these have a higher morbidity and mortality compared to native species. Nachi:  You will have to rely on your local poison control center or toxicologist for advice and you may even need to turn to the zoo or aquarium for antivenom, if it exists at all.  Patients with bites from exotic snakes should be monitored, likely in the ICU, for up to 24 hours as toxicity from some venom may have a delayed onset of up to 20 hours. Jeff:  Scary stuff, hopefully the patient knows which type of exotic snake they own and you don’t have to sort through a million google images to try to get to the bottom of this.  Anyway, there are 3 special populations to discuss.  First are pregnant patients. Nachi:  The authors cite a 1.4% incidence of snake bites in pregnant patients.  They note that this is low, but from my perspective, this seems shockingly high – why would a pregnant person ever get anywhere near a snake, seems just ill advised… Jeff:  haha, true.   But regardless, treatment is the same with antivenom as needed for all the same indications.  With fetal demise rates as high as 30%, in addition to maternal monitoring, the fetus should also be monitored. Nachi:  That number may seem high, but keep in mind that that’s from studies in other countries with more venomous snakes, so it’s likely to be lower in the US.  But the point remains, that antivenom is generally recommended to be given if the mother has indications for treatment, as poor fetal outcome is tied directly to the severity of envenomation in the mother. Jeff: Continuing right along, the next special population to discuss are pediatric patients.  Because dosing is based on the amount of venom delivered and not on patient specific factors, dosing is the same for peds and adults. Nachi:  How rare – so few meds seem to be the same for peds and adults.  The last population to discuss are anticoagulated patients.  Patients on antiplatelet or anti-coagulants are at increased risk of bleeding after pit viper envenomations and therefore should have their coags checked every 2 days following the last dose of FabAV. Jeff:  I think we’ve at least mentioned most of this months controversies, but it’s probably worth quickly reviewing them since they mostly dispel common myths. Nachi:  Good idea.  Incision and suction of snake bites is nearly universally not recommended. Jeff:  In the absence of ischemia, fasciotomy for snake bites is not recommended, even with elevated compartment pressures.  Instead treat compartment syndrome with anti-venom and save the fasciotomy for true cases of ischemia refractory to antivenom. Nachi:  With a known or suspected coral snake envenomation, due to shortages of NACSA, wait until the patient develops symptoms instead of empirically treating all bite victims. Jeff:  Maintenance dosing of FabAV continues to be debated.  The manufacturer recommends 2 doses every 6 hours for 3 doses while some experts recommend only maintenance dosing as needed.  It’s therefore probably safest to punt this to whatever poison control center or toxicologist you speak with. Nachi:  I feel like we are plugging the poison center a lot, but it’s such a good free, and usually very nice consult to have on your team. Jeff: Nice consultant – what a win!  Moving on to the cutting edge.  There is a new Crotalidae antivenom called Crotalidae Immune F(ab’)2 or, more simply, Anavip.  It should be available in the next few months.  The dosing will be 10 vials up front over 60 minutes followed by an additional 10 vials if the symptoms having been controlled.  4 more vials may be given for symptom recurrence.  Patients must be observed for a minimum of 18 hours after initial control of symptoms. Nachi: This would be a really nice development as Anavip has a longer half life and therefore should reduce the rates of late coagulopathy and decrease the need for maintenance dosing, follow up, and repeating coags. Jeff:  And finally, like we mentioned before, injection of the trypsin has been tried as a bridge to antivenom, as has carbon monoxide, which may mediate degradation of fibrinogen dependent coagulation. Nachi:  Alright, so let’s talk about the disposition next. Victims of pit viper envenomations should be monitored for 8-12 hours from the time of the bite.  They will need baseline labs and repeat testing ever 4-6 hours.  IF there is no progression of the symptoms and repeat testing is normal, the patient can be discharged. Jeff: Victims of coral snake bites should be admitted and observed for 12-24 hours regardless of symptoms. Nachi: Victims of rattle snake envenomations who initially develop hematologic abnormalities and are treated with FabAV should have repeat testing done in 2-4 days and 5-7 days. Jeff:  Wounds should also be closely followed to avoid complications and long term disfigurement and disability.  PT/OT may be necessary as well. Nachi:  Perfect, let’s round this episodes out with a review of the key points and clinical pearls from this month’s issue. There are about 10,000 ED visits in the US for snake bites each year, and 1/3 of these involve venomous species. Pit vipers produce a predominantly hemotoxic venom. Both local and systemic effects can occur. Systemic effects include tachycardia, tachypnea, hypotension, nausea, vomiting, weakness, and diaphoresis. In general, venomous snakes have a triangular or spade-like head, elliptical pupils, and hollow retractable fangs. In contrast, non-venomous snakes have a rounded head, round pupils, lack fangs, and can have a double row of vertical scales on the tail. Venomous North American coral snakes often have adjacent red and yellow bands, whereas their nonvenomous counterparts usually have a characteristic black band between the red and yellow bands. For prehospital care in the US, the following strategies are not recommended: incision or excision, use of venom extraction devices, tourniquets, chill methods, and electroshock therapy -- and they can all actually worsen outcomes.  Prehospital providers should focus on rapid transport. Be cognizant of compartment syndrome, but measure compartments when possible, as some envenomations present similarly but have only subcutaneous hypertension. Neurologic effects can be delayed up to 12 hours after coral snake envenomations. Symptoms can include a descending paralysis. For diagnostic testing, consider a CBC, coags, fibrinogen level, electrolytes, cpk, creatine, glucose, and urine studies.  All patients with envenomation should be observed for at least 8 hours. Mark the site of envenomation circumferentially to monitor for changes. Management of patients with snake bites should be treated with supportive care, pain control, and specific antivenom when indicated. FabAV or CroFab is the antivenom of choice for pit viper envenomations. Although FabAV will reduce the duration and severity of symptoms and lab abnormalities, it will not reverse tissue necrosis and may not reverse neurologic effects. Be aware of the possibility for a hypersensitivity reaction or serum sickness to FabAV. Treat with steroids, antihistamine, IV fluids, and epinephrine as appropriate. Coral snake envenomations can be treated with NACSA, which halts or at least limits the progression of muscle paralysis and shortens the clinical course.  Side effects to NACSA include dermal reaction as the most common -- and anaphylaxis as the most severe. Patients with bites from exotic snakes should be monitored, likely in the ICU, for up to 24 hours as toxicity from some venom may have a delayed onset of up to 20 hours. You may have to turn to your local zoo for help with anti-venoms here. Management of pregnant patients is the same as nonpregnant patients with regards to snake envenomations. Dosing of antivenom is based on the amount of venom. Dosing is the same regardless of the age of the patient. All patients requiring antivenom or with suspected envenomation should be admitted.  Seek consultation with your regional poison center and local toxicologist Jeff: So that wraps up the September 2018 episode of Emplify. Nachi: As always - the address for this month’s credit is ebmedicine.net/E0918, so head over there right away to get your credit.  Remember that the  you heard throughout the episode corresponds to the answers to the CME questions. Jeff: And don’t forget to grab your free issue of Synthetic Drug Intoxication in Children at ebmedicine.net/drugs specifically for emplify listeners. Feel free to share the link with your colleagues or through social media too. Next month we are talking sepsis and the ever frequently changing guidelines so it’s not something you want to miss.  Talk to you soon   Most Important References 4. *Lavonas EJ, Ruha AM, Banner W, et al. Unified treatment algorithm for the management of crotaline snakebite in the United States: results of an evidence-informed consensus workshop. BMC Emerg Med. 2011;11:2-227X-11-2. (Consensus panel) 6. *Bush SP, Ruha AM, Seifert SA, et al. Comparison of F(ab’)2 versus Fab antivenom for pit viper envenomation: a prospec­tive, blinded, multicenter, randomized clinical trial. Clin Toxicol (Phila). 2015;53(1):37-45. (Randomized controlled trial; 121 patients) 7. *Gerardo CJ, Vissoci JR, Brown MW, et al. Coagulation parameters in copperhead compared to other Crotalinae envenomation: secondary analysis of the F(ab’)2 versus Fab antivenom trial. Clin Toxicol (Phila). 2017;55(2):109-114. (Ran­domized controlled trial; 121 patients) 8. *American College of Medical Toxicology, American Acad­emy of Clinical Toxicology, American Association of Poison Control Centers, European Association of Poison Control Centres and Clinical Toxicologists, International Society on Toxinology, Asia Pacific Association of Medical Toxicology. Pressure immobilization after North American Crotalinae snake envenomation. Clin Toxicol (Phila). 2011;49(10):881-882. (Position statement) 10. *Wood A, Schauben J, Thundiyil J, et al. Review of eastern coral snake (Micrurus fulvius fulvius) exposures managed by the Florida Poison Information Center Network: 1998-2010. Clin Toxicol (Phila). 2013;51(8):783-788. (Retrospective; 387 patients) 48. *Cumpston KL. Is there a role for fasciotomy in Crotalinae envenomations in North America? Clin Toxicol (Phila). 2011;49(5):351-365. (Review) 75. *Walker JP, Morrison RL. Current management of copper­head snakebite. J Am Coll Surg. 2011;212(4):470-474. (Retro­spective; 142 patients) 81. *Kitchens C, Eskin T. Fatality in a case of envenomation by Crotalus adamanteus initially successfully treated with polyvalent ovine antivenom followed by recurrence of defibrinogenation syndrome. J Med Toxicol. 2008;4(3):180-183. (Case report) 118. *Hwang CW, Flach FE. Recurrent coagulopathy after rattle­snake bite requiring continuous intravenous dosing of anti­venom. Case Rep Emerg Med. 2015;2015:719302. (Case report)

Gruesome Magazine - Horror Movie Reviews and Interviews
Reviews of Summer of 84 - What Still Remains - Face of Evil

Gruesome Magazine - Horror Movie Reviews and Interviews

Play Episode Listen Later Aug 13, 2018 73:56


This week, the Grue-Crew follow an army veteran into an apocalyptic nightmare, struggle along with a sole survivor in the harrowing wilderness, and ride along with a group of teenage super-sleuths looking to reveal a killer in their neighborhood. First up is the rogue zombie-ish film Face of Evil from director Vito Dinatolo, featuring Scott Baxter as an Army veteran suffering from PTSD with a supernatural twist. The second film, What Still Remains from director Josh Mendoza, provides a completely different take on the zombie apocalypse film where the humans are truly the monsters roaming the hillside. Rounding out the show is the spectacular coming of age film Summer of 84 from directors François Simard, Anouk Whissell, Yoann-Karl Whissell featuring a young cast hellbent on proving their neighbor is actually a serial killer. The hunt is on for the diamond in the rough. Doc Rotten from Horror News Radio and Jeff Mohr from Decades of Horror: The Classic Era are joined by Rafe Telsch and Vanessa Thompson.  Gruesome Magazine Podcast - Episode 032 Summer of 84 - What Still Remains  - Face of Evil SHUDDER MOVIE RECOMMENDATION Use my promo code - GRUESOME - for an extended 30-day FREE trial of Shudder to check out Ruin Me and Still/Born! Enter the promo code at http://gruesomemagazine.com/shudder to get your first month free. FACE OF EVIL A war vet returns home, but a mysterious epidemic breaks out and infects his friends... The nightmare has just begun.   “Personally, I was extremely offended by this movie. … it’s so disrespectful to me in the way this particular topic was handled." - Vanessa “... the actor that portrayed Sarge entertained me greatly …" - Rafe “The sequence of events is too wacky to be real and but not surrealistic enough to be a nightmare or a hallucination." - Jeff “It’s a little bit of a sloppy, wobbly movie. I enjoyed it more on its intention than its execution." - Doc Director: Vito Dinatolo Cast: Scott Baxter, Chad Bishop, Jamie Bernadette Horror icon Jamie Bernadette stars in Face of Evil, now available on VOD and DVD from Gravitas Ventures. WHAT STILL REMAINS After the loss of her family, a young woman struggles to survive in a world long-since destroyed by disease; but when a lonely traveler offers her a place in his community, she must decide if the promise of a better life is worth the risk of trusting him.   “The cinematography is gorgeous. The set dressing is gorgeous. This world feels lived in and it feels twenty years removed from the society that we have." - Rafe “I was with Anna (Lulu Antariksa) the whole way, being cautious with Peter (Colin O'Donoghue) while trying to figure out just exactly what was going on. What was his true motive and true character and what his community was going to be like? I was intrigued with that." - Jeff “The acting and the cinematography are fantastic." - Doc Director: Josh Mendoza Cast: Lulu Antariksa, Colin O'Donoghue, Mimi Rogers WHAT STILL REMAINS will open in cinemas on August 10th and on VOD nationwide on August 14th, 2018. SUMMER OF 84 After suspecting that their police officer neighbor is a serial killer, a group of teenage friends spends their summer spying on him and gathering evidence, but as they get closer to discovering the truth, things get dangerous.   “Now this is a really good movie! There is no way you could watch this movie and not enjoy it. It is nostalgia on high. I just fell in love with this Summer of 84." - Vanessa “I loved the feel and the nostalgia of Summer of 84." - Jeff “There are some incredibly chilling scenes that were bold moves in my opinion and left me kind of rattled at the end of the film." - Doc Director: François Simard, Anouk Whissell, Yoann-Karl Whissell Cast: Graham Verchere, Judah Lewis, Caleb Emery The film made its World Premiere earlier this year at the Sundance Film Festival and will be released in theaters on August 10, 2018, and available on VOD and Digital HD on August 24, 2018.  

evil army ptsd dvd personally decades remains vod rounding shudder world premiere gruesome sarge simard stillborn summer of 84 gravitas ventures digital hd ruin me jeff it yoann karl whissell jamie bernadette vanessa thompson jeff there doc rotten scott baxter jeff mohr josh mendoza colin o'donoghue grue crew horror news radio
EMplify by EB Medicine
Episode 19 – Cannabinoids: Emerging Evidence in Use and Abuse

EMplify by EB Medicine

Play Episode Listen Later Aug 1, 2018


Show Notes Disclaimer: This is the unedited transcript of the podcast. Please excuse any typos. Jeff:  Welcome back to Emplify, the podcast corollary to EB Medicine's Emergency Medicine Practice. I'm Jeff Nusbaum, and I'm back with my co-host, Nachi Gupta and we'll be taking you through the August 2018 issue of Emergency Medicine Practice. Nachi: This month's topic is one that Jeff has significant personal experience with from his college days. We're reviewing Cannabinoids -- and emerging evidence in their use and abuse. Jeff: Um… that is definitely not true. I was actually a varsity rower in college... Are we still reviewing talking points together before we start recording these episodes? Nachi: Sometimes… Jeff: This month's issue was authored by Mollie Williams, who is the EM residency program director at the Brooklyn Hospital Center. It was peer-reviewed by Joseph Habboushe, assistant professor at NYU and Nadia Maria Shaukat, director of the emergency and critical care ultrasound at Coney Island Hospital in Brooklyn, New York. Nachi: We're going to be talking about the pathophysiology of cannabinoids, clinical findings in abuse, best practice management, differences between natural and synthetic cannabinoids, and treatment for cannabinoid hyperemesis syndrome. So buckle up and get ready. Jeff: As you're listening through this episode, remember that the means that we are about to answer one of the CME questions from the end of the print issue. If you're not driving while listening, be sure to jot down these answers and get your CME credit when we're going through this issue.. Nachi: As of June 2018, there are 31 states, the District of Columbia, and 2 US territories that possess state and local-level laws allowing the use of cannabis medicinally or in recreational formulations. Marijuana actually maintains the highest lifetime use of an illicit drug used within the US. Jeff: There are a shocking 22 million past-month users of marijuana in the US, followed by pain relievers at 3.8 million, and cocaine at 1.9 million. Clearly, an important topic worth discussion, especially as synthetic products have become more widely available. Nachi: And worth noting -- Colorado, where medicinal and recreational marijuana use has been decriminalized and later legalized, has shown a nearly 2-fold increase in the prevalence of ED visits, which may be related to marijuana exposure. Jeff: Medicinally, cannabinoids are currently used in the treatment of chronic pain syndromes, complications of multiple sclerosis and paraplegia, weight loss due to appetite suppression in HIV/aids, chemotherapy-induced nausea and vomiting, seizures, and many other neuropsychiatric disorders. In fact, cannabis use has been documented for medical use dating as far back as 600 BC in West and Central Asia. Nachi: All of that being said though, there is an absence of high-quality reviews and evidence to support the use of cannabinoids for any of the indications you just mentioned. And the US DEA maintains cannabis as a Schedule I substance. Jeff: This DEA designation limits the ability to do research and obtain federal funding for such research. General lack of federal regulations on chemical content also leads to product variation, which may be a cause of increased incidences of accidental overdoses. Nachi: To attain the most up to date information for this article, Dr. Williams searched the PubMed and Cochrane Databases from 1950 to 2018. This produced predominantly case reports and retrospective studies. There were just a few randomized prospective studies -- not surprising. Jeff: Let's get started with the pathophysiology. There are 3 cannabis species to be aware of: Cannabis sativa, cannabis indica, and cannabis ruderalis. Within these species, over 545 active cannabis-derived components have been described. Nachi: There are ten main constituents of cannabis sativa. Of these, 9-tetrahydrocannabinol (delta-9-THC) and cannabidiol (CBD) are found...

EMplify by EB Medicine
Episode 19 - Cannabinoids: Emerging Evidence in Use and Abuse

EMplify by EB Medicine

Play Episode Listen Later Aug 1, 2018


Show Notes Disclaimer: This is the unedited transcript of the podcast. Please excuse any typos. Jeff:  Welcome back to Emplify, the podcast corollary to EB Medicine’s Emergency Medicine Practice. I’m Jeff Nusbaum, and I’m back with my co-host, Nachi Gupta and we’ll be taking you through the August 2018 issue of Emergency Medicine Practice. Nachi: This month’s topic is one that Jeff has significant personal experience with from his college days. We’re reviewing Cannabinoids -- and emerging evidence in their use and abuse. Jeff: Um… that is definitely not true. I was actually a varsity rower in college... Are we still reviewing talking points together before we start recording these episodes? Nachi: Sometimes… Jeff: This month’s issue was authored by Mollie Williams, who is the EM residency program director at the Brooklyn Hospital Center. It was peer-reviewed by Joseph Habboushe, assistant professor at NYU and Nadia Maria Shaukat, director of the emergency and critical care ultrasound at Coney Island Hospital in Brooklyn, New York. Nachi: We’re going to be talking about the pathophysiology of cannabinoids, clinical findings in abuse, best practice management, differences between natural and synthetic cannabinoids, and treatment for cannabinoid hyperemesis syndrome. So buckle up and get ready. Jeff: As you’re listening through this episode, remember that the means that we are about to answer one of the CME questions from the end of the print issue. If you’re not driving while listening, be sure to jot down these answers and get your CME credit when we’re going through this issue.. Nachi: As of June 2018, there are 31 states, the District of Columbia, and 2 US territories that possess state and local-level laws allowing the use of cannabis medicinally or in recreational formulations. Marijuana actually maintains the highest lifetime use of an illicit drug used within the US. Jeff: There are a shocking 22 million past-month users of marijuana in the US, followed by pain relievers at 3.8 million, and cocaine at 1.9 million. Clearly, an important topic worth discussion, especially as synthetic products have become more widely available. Nachi: And worth noting -- Colorado, where medicinal and recreational marijuana use has been decriminalized and later legalized, has shown a nearly 2-fold increase in the prevalence of ED visits, which may be related to marijuana exposure. Jeff: Medicinally, cannabinoids are currently used in the treatment of chronic pain syndromes, complications of multiple sclerosis and paraplegia, weight loss due to appetite suppression in HIV/aids, chemotherapy-induced nausea and vomiting, seizures, and many other neuropsychiatric disorders. In fact, cannabis use has been documented for medical use dating as far back as 600 BC in West and Central Asia. Nachi: All of that being said though, there is an absence of high-quality reviews and evidence to support the use of cannabinoids for any of the indications you just mentioned. And the US DEA maintains cannabis as a Schedule I substance. Jeff: This DEA designation limits the ability to do research and obtain federal funding for such research. General lack of federal regulations on chemical content also leads to product variation, which may be a cause of increased incidences of accidental overdoses. Nachi: To attain the most up to date information for this article, Dr. Williams searched the PubMed and Cochrane Databases from 1950 to 2018. This produced predominantly case reports and retrospective studies. There were just a few randomized prospective studies -- not surprising. Jeff: Let’s get started with the pathophysiology. There are 3 cannabis species to be aware of: Cannabis sativa, cannabis indica, and cannabis ruderalis. Within these species, over 545 active cannabis-derived components have been described. Nachi: There are ten main constituents of cannabis sativa. Of these, 9-tetrahydrocannabinol (delta-9-THC) and cannabidiol (CBD) are found in the greatest quantities. The neuropsychiatric and addictive properties of cannabis are due primarily to the delta-9-THC. Jeff: THC and other cannabis derivatives work through the endocannabinoid system and other neuroregulators. The endogenous cannabinoid system has 4 components: (1) endogenous endocannabinoids, (2) receptors, (3) degradation enzymes, and (4) transport mechanisms. Nachi: There are two endogenous endocannabinoids to know about: anandamide (AEA) and 2-arachidonoyl-glycerol. Jeff: Cannabinoid receptors are broadly dispersed through the central nervous system, and to a lesser degree, also to other organ systems. Nachi: Because CB receptors are concentrated within the central nervous system, they exert the majority of their effects on the neuropsychiatric systems. And   -- yes that’s a double ding -- the cannabinoid 1 (or CB1) receptor is most responsible for cannabis-induced neuropsychiatric effects. Jeff: Interestingly, the anti-emetic effects and possible palliative properties of cannabis derivatives are thought to be secondary to the inhibitory effects on serotonin receptors and the excitatory effects on the transient receptor potential vanilloid 1 (or TRPV1).  More on TRPV1 later... Nachi: So far we have been talking about cannabinoids from the cannabis plant, but with cannabis being illegal in many states, there has been a growing emergence of synthetic cannabinoids. Synthetics were initially developed in the 1980s largely for research purposes. Jeff: Because the current DEA controlled substances schedule designations are based on original chemical names, synthetics have gained popularity as manufacturers are able to produce newer compounds and circumvent DEA designation as well as routine urine drug screening tests. Nachi: You may be familiar with some of the street names for synthetics -- like spice, K2, scooby snacks, black mamba, kush, and kronic. These can often be purchased over the internet or through specialty smoke shops. Jeff: Scooby Snacks, what a fantastic name, mooovingggg on… Synthetic cannabinoids often have greater affinity for the CB1 receptor than naturally occurring cannabinoids -- and synthetics can produce 100 times the effect. As a result, the presenting symptoms with synthetic intoxication can be difficult to differentiate from crystal meth or bath salt abuse. Nachi: Manufacturers sometimes use solvents and other contaminants. Clusters of toxic ingestions and deaths have occurred. Emergency clinicians need to be aware of this and should report suspicious events immediately. Jeff: For more on synthetic intoxications in the ED, be sure to take a look at the recent May 2018 issue of Pediatric Emergency Medicine Practice on Synthetic Drug Intoxication in Children if you haven’t already read it. Also, just a quick FYI - If you’re not a current subscriber to Pediatric Emergency Medicine Practice, we’re giving away a free copy of the issue specifically for our listeners. Just head over to ebmedicine.net/drugs for the PDF of the issue. Nachi: A free issue for our listeners, that’s nice! Let’s move on to a discussion about current indications for cannabinoids. So, there is no clear consensus on these indications, but there is some research of varying quality that supports the treatment of some chronically debilitating diseases with cannabinoids. Jeff: A systematic review and meta-analysis from 2015 found low-quality evidence to support cannabis therapy for appetite suppression in HIV and aids patients; moderate-quality evidence for treatment of chronic pain and spasticity; and also moderate quality evidence for some chronic debilitating diseases. Nachi: While talking about evidence-based medicine here, another review by the National Academies of Science, Engineering, and Medicine on possible associations between cannabis and cancers arising in the lungs, head, and neck, or testicles -- showed no statistically significant associations exist. Jeff: So in case that wasn’t clear - the overall evidence to support cannabis therapy, in general, is weak. Also, be aware that there are various formulations of cannabis that allow for different routes of administration. We’re talking oils, tinctures, teas, extracts, edibles like candies and baked goods, parenteral formulations, eye solutions, intranasal, sublingual, transmucosal, tablets, sprays, skin patches, topical creams, rectal suppositories, and capsules -- just to name, a few. Nachi: A few! That seems pretty complete to me. Basically, any way you can imagine, it seems like a route of administration has been explored. But of importance, these formulations have different absorption times -- as you might expect. The shortest duration to peak plasma levels of delta-9-THC is through the inhalation route, which can produce effects within 3 minutes. On the longer end, rectal cannabis administration can take up to 8 hours to reach peak plasma concentrations. Jeff: Let’s talk about some of the clinical findings and systemic effects associated with cannabis use. First up is the link between cannabis use and stroke or TIA. Cannabis users who smoked at least once weekly had a 3.3 times higher risk of stroke or TIA. Nachi: And there is moderate quality evidence that this link may be dose-dependent. Larger amounts of cannabis use lead to cerebral vasospasm and a reduction in cerebral blood flow. Jeff: In terms of psychiatric effects, several low-to-moderate quality studies have shown statistically significant associations between psychosis and self-reported cannabis use. Some association between high potency cannabis or synthetic cannabinoid use with new-onset psychosis or relapse in previous psychiatric disorders has also been found. Lastly, there is weak data supporting a correlation between cannabis use and depression. Nachi: From a cardiovascular standpoint, cannabis use is associated with increased resting heart rate, hypertension, and decreases in the anginal threshold for patients with chronic stable angina. A 2001 study described an augmented risk of myocardial infarction within the first hour of cannabis use and found an almost 5-fold increase in those who reported smoking cannabis at least weekly when compared to those who smoked monthly or less. Jeff: Dysrhythmias, qt prolongation, av blocks, myocarditis, and sudden death have all been reported with cannabinoids. Nachi: In terms of pulmonary effects, these are not really related to cannabis use directly, but rather the smoke inhalation and combustion materials of synthetic cannabinoids. Effects from chronic use can be seen. Jeff: Renally speaking, acute kidney injury and rhabdomyolysis are associated with synthetic cannabinoids and have been observed in several case reports. The rhabdo is believed to be due, in part, to associated seizures, muscle tremors, and agitation. Nachi: Among metabolic abnormalities, patients can present with hyperthermia, hypoglycemia, hypokalemia, hyponatremia, and metabolic acidosis. Jeff: Orally and dentally, dry mouth is the most common finding in acute cannabis toxicity. Chronic use has also been linked to severe periodontitis. Nachi: And ophthalmologically, there is, of course, the commonly seen conjunctival injection. Cannabis has also been found to decrease intraocular pressure when used topically -- and of note, there have also been rare reports of acute angle closure glaucoma and central retinal vein occlusion. Jeff: While talking about clinical findings and systemic effects of cannabis use, we certainly need to go over cannabinoid hyperemesis syndrome (or CHS), which is -- quite simply put -- associated with frequent visits to the ED in chronic users. It presents with nausea, vomiting, and abdominal pain. Nachi: CHS is commonly misdiagnosed as cyclical vomiting syndrome. After the legalization of marijuana in Colorado, it was reported that nearly twice as many patients had presented for what was thought to be cyclical vomiting syndrome. And ironically, though cannabis has been used as an anti-emetic, chronic use can cause the opposite reaction, leading to CHS, which is typically refractory to traditional anti-emetics. Jeff: And the etiology of CHS is not well understood. Similarly, the exact criteria for CHS are poorly defined. It presents as a recurrent and relapsing disorder that can be divided into 3 phases: prodromal, hyperemetic, and recovery. Nachi: In the prodromal phase, patients complain of early morning nausea without vomiting, and they can have mild abdominal discomfort. This can last from months to years. In the hyperemetic phase, patients complain of severe, unremitting abdominal pain with repeated episodes of vomiting and retching. This is often associated with an inability to tolerate po. Jeff: The hyperemetic phase lasts 24-48 hours and can lead to dehydration, electrolyte abnormalities, and weight loss. Patients may learn to relieve symptoms by compulsively bathing in hot water. Nachi: Resolution of symptoms is seen when the patient stops using cannabis. This is during the recovery phase, which can last from days to months. But this can be short-lived if the patients begin using cannabis again. Jeff: On that note, we should also touch on cannabis withdrawal. Termination of heavy and habitual use can lead to withdrawal syndromes within 48 hours. Symptoms here include irritability, anxiety, restlessness, sleep difficulty, seizures, and aggression. Medications that can be helpful include benzodiazepines, neuroleptic agents, and quetiapine in refractory cases. Nachi: Moving on to the next sections in the article, let’s talk about differential diagnosis and prehospital care. The differential for acute cannabinoid intoxication, as you might suspect, is broad, and it includes some life-threatening processes. We won’t list them here, but be sure to think broadly before deciding on cannabis as the cause of your patient’s symptoms. Jeff: For the prehospital providers -- care here is mainly supportive. Provide airway protection as needed - gather information from the patient’s environment, looking for empty pill bottles or another empty packaging. Nachi: Let’s move on to care once in the ED. All patients who are in distress and suspected of drug ingestion should be disrobed completely and placed on a cardiac monitor. Fully assess for trauma and place an IV in the patient. Search the patient’s clothing for drugs and paraphernalia, which may help in making the diagnosis. Jeff: When getting a complete history from the patient, it may also be worthwhile to talk with any persons accompanying the patient to the ER for more information. In your history, be sure to ask about a pattern of use and possible co-ingestions. Nachi: When considering cannabis hyperemesis syndrome, a detailed history and physical exam are crucial for making the diagnosis. To differentiate between other etiologies of abdominal pain and vomiting, be sure to ask about the use of hot baths for relief, resolution of symptoms after stopping cannabis use, and the predominance of symptoms in the morning hours. Jeff: On physical exam, for cannabis intoxication, there isn’t a particular toxidrome to look for. Monitor vital signs closely, looking out for alterations in blood pressure and heart rate. A complete neurologic and mental status examination will be the key here. Nachi: Decisions for lab testing should be dependent on the patient’s presentation. Possible tests include CBC, BMP, LFT’s, lipase, cpk, ckmb, troponin, urinalysis, urine drug screening, serum tox screens (for alcohol, aspirin, and acetaminophen), and any other drug levels for medications that the patient is taking for medicinal purposes, like phenytoin or lithium levels. Jeff: One study supported point of care urine drug testing in the ED. However, know that acute cannabis intoxication can be difficult in the chronic user, as delta-9-THC will be present in urine for up to 24 days. Testing for synthetically derived cannabinoids is difficult due to changes in synthetic compounds. Nachi: Interestingly, there are a number of medications that are associated with false positive cannabinoid screenings. These include ibuprofen, pantoprazole, efavirenz, and lamotrigine. Jeff: For any patient arriving with suspected cannabis or synthetic abuse, consider checking an EKG. You’re looking for signs of ischemia, arrhythmia, and interval abnormalities. Serum and urine tox tests are not particularly helpful in the acute chest pain patient who is using synthetic marijuana. Nachi: Not surprisingly, there are no specific diagnostic imaging modalities to help diagnose cannabis or synthetic cannabinoid intoxication. But imaging may help with assessing other disease states on a patient’s differential, so stay mindful of that. Jeff: Now that we’ve talked about history, physical exam, and useful testing modalities, let’s talk about treatment for cannabis and synthetic cannabinoid toxicity… therapy is primarily focused on supportive care. Most ED visits only require a short stay. Nachi: That’s right, there are no antidotes to give for treatment here. Be sure to look for and treat dehydration, acute renal failure, and rhabdo though. In severe cases of neuropsychotropic effect, give benzodiazepines, like lorazepam, to help with control. Jeff: For GI effects, first-line treatment is traditional anti-emetics like ondansetron or metoclopramide. Recent literature and case reports have shown significant improvement with butyrophenones like haloperidol as a second-line treatment. Nachi: While talking about treating the gastrointestinal effects of cannabis toxicity, let’s also discuss methods to control cannabinoid hyperemesis syndrome. The mainstays for treatment here are actually supportive therapy and cessation of cannabis use. Jeff: And can you tell us more about why these patients crave hot showers and improve after? Is there a pathophysiology or mechanism to know about there? Nachi: There is a well-studied theory here and it relates to the TRPV1 receptor that we talked about earlier. Temperatures in excess of 109 degrees Fahrenheit, acidic conditions, and compounds found in certain foods and plants (like cannabis) activate this receptor. It’s believed that intermittent and repetitive exposure to agonists of the TRPV1 receptor leads to a persistent state of nausea and vomiting. Desensitization of the receptor happens after repeated stimulation, and repetitive topical capsaicin or hot water is believed to function as an exogenous agonist. Jeff: In any case of repetitive emesis, be sure to consider electrolyte replacement if needed. In many cases, hydration or repletion will need to happen through an IV. Proton pump inhibitors can also help in some cases where GI symptoms are a dominating complaint of the patient. Nachi: Recent literature supporting the use of haloperidol for nausea and vomiting has found that symptoms improve approx 1hr after administration. This can decrease the need for observation or admission. Jeff: Haloperidol works via dopamine 2 receptor antagonism. D2 receptors are found in high concentrations throughout the nervous system and bind with high affinity to haloperidol. The suggested starting dose is 2.5mg IV with a repeat dose of 5mg IV if needed. An RCT is underway in Canada on the use of ondansetron versus haloperidol with an estimated completion of July 2019. Nachi: Capsaicin has similarly shown promise in cannabis hyperemesis syndrome through the TRPV1 receptor as we discussed already. Currently, there are no dosing recommendations or application instructions for capsaicin. There is some evidence supporting relief within 30 to 45 minutes, and capsaicin can be applied topically to any nonmucosal surface like the abdomen, chest, or back. Jeff: So to recap -for cannabis hyperemesis syndrome, treat with anti-emetics, PPI’s, electrolyte repletion, and IV hydration as needed. As a second line treatment, consider haloperidol and topical capsaicin applied to the chest, abdomen, or back. Nachi: Let’s talk about some special populations next -- starting with Pediatrics. According to data from 2012, of the 130 million people reporting illicit drug use within their lifetime, 25% were children between 12 and 17 years of age. Jeff: And according to the national poison data system, states with marijuana use laws have seen a 30% increase in calls related to marijuana use by children. From 2010 to 2011, the number of ED visits by children aged 12 to 17 years old due to synthetic cannabinoid use also has doubled. Nachi: Many children and adults believe that synthetic cannabinoids don’t pose serious health risks, as these are not illegal to purchase. And this class of drugs is particularly attractive to adolescents since it will not readily test positive on urine drug tests. All of this is very concerning for emergency clinicians. Jeff: There have been several recent reports of myocarditis in association with marijuana use. One case resulted in death due to myocyte necrosis after an unknown amount of edible marijuana was consumed by a toddler. Nachi: Horrific! Jeff: And the exact mechanism through which the myocardial necrosis happens isn’t known. Nachi: For all children and adolescents who present to the ED with alteration in mental status, psychosis, or chest pain -- be sure to screen for cannabis or synthetic cannabinoid use.  There are case reports in the pediatric literature of STEMIs seen in patients without pre-existing cardiac disease or risk factors. Jeff: Keep in mind that urine drug screens can be falsely positive from certain proton pump inhibitors, so if possible, assess a urine drug screen prior to starting a PPI in these patients. Nachi: Moving on to our next special population… pregnant women. Know that it can be difficult to the differential between hyperemesis gravidarum and cannabis hyperemesis syndrome in pregnant patients. Ask specific questions regarding marijuana use before and during the pregnancy. Jeff: It’s also worth noting that cannabis is known to cause adverse outcomes on babies such as low birth weight and more frequent perinatal ICU placement. Nachi: Let’s move on to the final major section of the article, which is on the legal status of cannabis and cannabinoids. Much of the controversy surrounding cannabis for medicinal use relates to the absence of quality evidence. More research is needed to evaluate potential public health risks posed by variations in quality and potency, potential impact to our healthcare system, and ability to legislate for synthetic cannabinoids. Jeff: Though marijuana and all whole-plant derivatives are schedules I controlled substances, there are a few cannabinoid-based drugs approved by the FDA for medicinal purposes -- with lower schedule designations. Dronabinol is a schedule III drug derived synthetically from delta-9-THC. It’s used in chemotherapy-induced nausea/vomiting, as well as anorexia and weight loss from AIDS/cancer. Nachi: Nabilone, a schedule II synthetic variant of THC, has been approved in the treatment of aids-related anorexia and chemotherapy-induced nausea also. Jeff: Nabiximols, a plant-derived cannabinoid, has been approved in Europe and Canada for multiple sclerosis induced spasticity and cancer-related pain. Nabiximols are not yet approved in the US. Nachi: And lastly, we should mention cannabidiol, which is a schedule I controlled substance approved for treatment of seizures with 2 rare diseases -- Lennox-gastaut syndrome and dravet syndrome. Compared with placebo alone cannabidiol and other medications have shown efficacy in lowering the rate of seizures for these diseases. Jeff:  Lots of interesting stuff to look out for there in cannabinoid-related medications. Alright, on to disposition - Nachi: Most patients who present with uncomplicated acute cannabis or synthetic cannabinoid intoxication can be observed until clinically sober. Discharge home should be in the care of a sober family member or friend. Make sure that the patient knows not to operate vehicles or heavy machinery under the influence of drugs. Counsel them on drug abuse also. Jeff:   In more rare situations, patients will require admission. Consider this particularly for patients who have end-organ damage, rhabdomyolysis, acute renal failure -- evidence of cardiovascular, cerebrovascular, or ophthalmologic insults -- intractable vomiting, or acute psychosis. Nachi: And for cannabinoid hyperemesis syndrome, patients may require admission for IV hydration and electrolyte correction. Once the patient is tolerating PO and lab derangements have been corrected, they can be discharged. Jeff: Let’s wrap up the episode with key points and clinical pearls… N: Marijuana is the most commonly used illicit substance in the US. States that have legalized marijuana for medical and recreational purposes are showing increased rates of marijuana abuse and dependence. J: When concerned with drug intoxication, search your patient’s clothing for drugs and paraphernalia on arrival. N: The neuropsychiatric and addictive properties of cannabis are due primarily to delta-9-THC. J: Synthetic cannabinoids have gained popularity as manufacturers are able to produce newer compounds and circumvent DEA designations as well as routine urine drug screening tests. N: Manufacturers of synthetic cannabinoids sometimes use solvents and other contaminants, which have caused clusters of toxic ingestions and death. J: The shortest duration to peak plasma levels of delta-9-THC is through the inhalational route. Effects can be seen within 3 minutes. N: Cannabis users who smoke at least once weekly can have a 3.3 times higher risk of stroke or TIA. J: The risk of myocardial infarction is increased within the first hour of use, and there is an almost 5-fold increase for individuals who smoke at least once per week. N: Acute kidney injury and rhabdomyolysis have been noted with synthetic cannabinoid use in several case reports. J: Cannabis intoxication is associated with many metabolic abnormalities like hyperthermia, hypoglycemia, hypokalemia, hyponatremia, and metabolic acidosis. N: Cannabis hyperemesis syndrome, which presents with abdominal pain and vomiting, is associated with frequent visits to the ED in chronic users. J: The mainstay for treatment of cannabis hyperemesis syndrome is supportive therapies and cessation of cannabis use. N: Patients with cannabis hyperemesis syndrome crave hot showers because of activation of the TRPV1 receptor. J: Topical capsaicin may also help in the treatment of cannabis hyperemesis syndrome through activation of the TRPV1 receptors. N: Haloperidol at 2.5mg IV may help in refractory vomiting associated with cannabis hyperemesis syndrome. J: Many children and adults do not believe synthetic cannabinoids pose serious health issues as the they are not illegal to purchase. This is incorrect. N: Most patients with acute uncomplicated cannabis intoxication can be observed and discharged. Admit if there are any signs of end organ damage, intractable vomiting, or acute psychosis. Jeff: So that wraps up the August 2018 episode of Emplify. Nachi: For those of you looking for CME - the address for this months credit is ebmedicine.net/E0818, so head over there right away to get the credit you deserve.  Remember that the you heard throughout the episode corresponds to the answers to the CME questions. Jeff: And don’t forget to grab your free issue of Synthetic Drug Intoxication in Children at ebmedicine.net/drugs specifically for emplify listeners. Feel free to share the link with your colleagues or through social media too. See you next time! Most Important References 5. * Kim HS, Monte AA. Colorado cannabis legalization and its effect on emergency care. Ann Emerg Med. 2016;68(1):71-75. (Literature review; 21 studies)7. * Baron EP. Comprehensive review of medicinal marijuana, cannabinoids, and therapeutic implications in medicine and headache: What a long strange trip it’s been …. Headache. 2015;55(6):885-916. (Review)9. * Whiting PF, Wolff RF, Deshpande S, et al. Cannabinoids for medical use: a systematic review and meta-analysis. JAMA. 2015;313(24):2456-2473. (Retrospective chart review; 4 cases)64. * Tournebize J, Gibaja V, Kahn JP. Acute effects of synthetic cannabinoids: update 2015. Subst Abus. 2016:1-23. (Systematic review; 46 articles, 114 patients)83. * Wallace EA, Andrews SE, Garmany CL, et al. Cannabinoid hyperemesis syndrome: literature review and proposed diagnosis and treatment algorithm. South Med J. 2011;104(9):659-664. (Review)

Gruesome Magazine - Horror Movie Reviews and Interviews
Reviews of Big Legend - Jurassic Dead - Mad Genius

Gruesome Magazine - Horror Movie Reviews and Interviews

Play Episode Listen Later Jul 2, 2018 71:48


This week, the Grue-Crew face Bigfoot in the forest of Mount St. Helens, run from a Z-Rex, and outsmart a mind hacker looking to fix the human race. First up is the sci-fi feature Mad Genius from director Royce Gorsuch featuring a man and his best friend - himself - looking to hack the future of mankind. The second film, Jurassic Dead from director Milko Davis, pits a rogue group of outlaws and a quartet of college buddies against a madman and his pet zombie dinosaur. Rounding out the show is the Bigfoot extravaganza Big Legend where a Sasquatch is hungry...for human flesh. The hunt is on for the diamond in the rough. Doc Rotten from Horror News Radio and Jeff Mohr from Decades of Horror: The Classic Era are joined by Rafe Telsch and Vanessa Thompson.  Gruesome Magazine Podcast - Episode 026 Big Legend - Jurassic Dead - Mad Genius SHUDDER MOVIE RECOMMENDATION Use my promo code - GRUESOME - for an extended 30-day FREE trial of Shudder to check out Downrange and Still/Born! Enter the promo code at http://gruesomemagazine.com/shudder to get your first month free. Mad Genius A young mad genius attempts to 'hack the human mind' in order to fix humanity.   "There are some neat ideas in (Mad Genius). ... It definitely grew on me over the course of watching it and ended up being pleasurable." - Rafe "I enjoyed the characters and I think the acting was good. I liked the whole premise and I liked where it went." - Jeff "I like the cast. I like Chris Mason and I like Scott Mechlowicz playing the two leads. I like their relationship together. ... I really thought what they brought was highly entertaining and fascinating to watch." - Doc Director: Royce Gorsuch Cast: Spencer Locke, Scott Mechlowicz, Faran Tahir   Jurassic Dead A cracked scientist aligns with the Axis of Evil to bring down the US of A with EMP blasts, toxic zombification gas and an unleashing of the ultimate undead killing monstrosity -- the Z-REX. When a hot-wired militia squad and a crew of college hipsters are thrown together to do something about it, the chaotic Predator-Thunder action runs amok.   "Expect to have fun making fun of (Jurassic Dead). Don’t take it seriously. Don’t try to understand it. Just take it, and enjoy the ride." - Vanessa "I think there are people out there who will love (Jurassic Dead), just for its sheer badness and the puppetry. … I think it’s actually poking fun at itself. - Jeff "There’s a weird charm to it because it’s so bonkers. … It almost feels like a cartoon." - Doc Director: Milko Davis w/ Thomas Martwick Cast: Matt Block, Cooper Elliot, Ben Johnson, Andy Haman Big Legend An ex-soldier ventures into the Pacific Northwest to uncover the truth behind his fiance's disappearance.   "I like the premise. I loved getting Adrienne Barbeau as (the lead’s) mom." - Vanessa "The acting, for the most part, is good. It has some practical effects that are well done. I enjoyed this flick. … I think it’s worth a watch." - Jeff "The more you like Bigfoot, the more you’re going to like this film." - Doc Director: Justin Lee Cast: Kevin Makely, Todd A. Robinson, Amanda Wyss, Summer Spiro, Lance Henriksen, Adrienne Barbeau

evil robinson bigfoot pacific northwest decades sasquatch rounding axis shudder emp ben johnson gruesome mount st helens lance henriksen stillborn adrienne barbeau chris mason mad genius amanda wyss downrange faran tahir vanessa thompson jeff there doc rotten jeff mohr jurassic dead grue crew horror news radio royce gorsuch todd a robinson
Blind Abilities
Job Insights #4: Apps With Productivity in Mind for Education and in the Workplace. Transcript Provided

Blind Abilities

Play Episode Listen Later May 20, 2018 39:04


Job Insights #4: Apps With Productivity in Mind for Education and in the Workplace. Transcript Provided Welcome to the 4th episode of Job Insights with Serina Gilbert and Jef Thompson. We focus on Employment, Careers, enhancing opportunities and bringing you the latest innovations from across the Vocational Rehabilitation field to ensure your choices lead you down the career pathway that you want and succeed in gainful employment. From getting started with services, to assessments, Individual Plan for Employment (IPE) to gaining the skills to succeed and tools for success, Job Insights will be giving you tips and tricks to help your journey to employment and break down the barriers along the way. On this 4th episode of Job Insights Hope Paulos joins Serina Gilbert and Jeff Thompson in the studio and they talk about productivity apps and software. From the classroom to the workplace, these apps are geared towards making your daily challenges a bit more manageable, efficient and productive. Hours Tracker, Black Board, Drafts, Files, SeeingAI, Dictionary Thesaurus Pro, KNFBReader and Bookshare’s Read To Go app are all mentioned with some great discussion about how we use these apps. A great little Scan Stand named Foppidoo makes the scene and a conversation on Lift and Uber gets quite a chat as well. You can check out the Meet Me Accessibly book from Jonathan Mosen and learn about Zoom on the PC. Join the Job Insights crew and download some apps and give them a whirl. Hey, productivity rocks! We hope you enjoy this Job Insights episode and you can send your feedback and suggestions to the Job Insights team by email at JobInsights@BlindAbilities.com Follow the Job Insights team on twitter @JobInsightsVIP Job Insights is part of the Blind Abilities network. A big Thank You goes out to CheeChau for his beautiful music! Thank you for listening! You can follow us on Twitter @BlindAbilities On the web at www.BlindAbilities.com Send us an email Get the Free Blind Abilities App on the App Store.   Job Insights #4: Apps With Productivity in Mind for Education and in the Workplace. Transcript Provided [Music] Female voice: I feel like I'm getting a lot better education so yeah, I think, I think the online learning is an equalizer. Jeff: Job Insights, a podcast to help you carve out your career pathway and enhance the opportunities for gainful employment. Female Voice: But sometimes I require KNFB Reader when I have more than one page that I want to kind of read continuously. Jeff: Learn about resources for training education and employment opportunities. Female Voice: Blackboard, that is a learning management system and a lot of universities are using them as well for classes. So this particular app is available on Android, iOS, and PC, and Mac of course. Jeff: We will hear from people seeking careers, employment, from professionals in the educational field, teachers, and innovators in this ever-changing world of technology to help you navigate the employment world and give you Job Insights and enhance the opportunities to choose the career you want. Male Voice: Fopydo people sounds good and I actually at that time asked my son, and I, it was actually a play on the on Scooby-doo. Jeff: And you can find the Job Insights podcast on BlindAbilities.com, part of the Blind Abilities Network with hosts Serina Gilbert and myself Jeff Thompson, and you can contact us by email at JobInsights@BlindAbilities.com, leave us some feedback, or suggest some topics that we cover. On Twitter at Job Insights VIP, and check out the Job Insights support group on Facebook where you can learn, share, advise, and interact with the Job Insights community. [Music] Female Voice: Lift also released an update to their service dog policy saying that an allergy or fear of animals is not a valid reason to not pick up an individual with the service animal. Jeff: But hey it's a good learning tool, because it's just repetitious and pretty soon it just starts coming to you, mm-hmm, so I dug right in, when I saw they had flashcards I went Wow! [Music] Jeff: And now please welcome Serina Gilbert and Jeff Thompson with Job Insights. [Music] Jeff: Welcome to Job Insights and this week we're talking about apps, apps that you'll use in school, at the workplace, and these are productivity type of apps, and with me today of course is Serina Gilbert how are you doing? Serina: I'm good Jeff, how are you? Jeff: I'm just doing great and we got a guest today all the way from Maine. Hope Paulos, how are you Hope? Hope: I'm doing great, how are you? Jeff: I'm doing good, we're all doing good, so that's good. Today we're gonna talk about apps, you know some of these apps are mostly productivity type of things, stuff that you'll use to, you know get things done and that's, that's what we're, we're all about here on Job Insights. So Serina, last podcast you said you were holding out on us from what you're gonna tell us, is the cliffhanger over or are you gonna tell us? Serina: Oh we've got a little bit of a wait cuz we have to talk to Hope first, we have a guest. Jeff: How about you Hope, what do you got? Hope: I certainly don't have a cliffhanger. [Laughter] Serina: We set her up there Jeff! Jeff: yeah. Hope: Yeah you did! [Laughter] Jeff: So Hope, how's it going out and Maine? Hope: It's going well, the weather is nice finally, when I talked to you and Pete last time, it was March, and it was in the 20's, 20 degrees. Now we are in about the 60's, 70's, so I am absolutely loving it, birds are chirping, the guide dog is going for walks, he's enjoying it, Jeff: Is he bringing you with? Hope: Oh yeah of course! [Laughter] Jeff: That's great! Serina: But Jeff needs to know if you planted any Apple trees? Hope: No. Serina: Only PC trees? Hope: Only PC trees. [Laughter] Jeff: Oh that's the running joke isn't it? So when it comes to productivity type of apps, Hope what did you bring to the show today? Hope: Sure, so I have a couple of them. I don't use this particular one very much right now because I do work for Apple, and Apple has me on a strict schedule so I don't need this particular one, but for people who are freelancing, the name of the app is called Hours Tracker, it's a free app and basically it allows you to track your hours of course, hence the name, but it also allows you to track your earnings, and it will deduct the taxes as well. So it will tell you how much is deducting for taxes. So it's great for individuals who are freelancing. The second app that I have brought to the show is Blackboard. That is a Learning Management System and a lot of universities are using them as well for classes, so this particular app is available on Android, iOS, and PC, and Mac of course. This will allow you to do your classes online literally anywhere and actually a couple of the blindness organizations were working in tandem to get this particular app accessible. It's extremely accessible, there was only one thing that I commented on a couple weeks ago and I sent feedback in to the iOS developers and they fixed it. They're very very good about fixing issues that people might have. The other app that I brought, that I brought to the show is Learning Ally. This is an app that will allow you to download books and it's also good for individuals who are dyslexic and who have low vision because I believe it will allow you to magnify the print in the actual book so you can read along with the narrator which is quite helpful. That's more University as well, University-type app, Productivity app and of course the last app would be the Bookshare app. The Read2Go, this allows you if you have a membership to Bookshare, which I believe most students can get for free, it allows you to read the books on your phone be it Android or iOS. Jeff: Now on the Hours Tracker, is that what it's called? Hour Tracker? Hope: Hours Tracker yeah. Jeff: Hours Tracker. So when you're doing the setup, your presets, do you put in your wage, and then it just calculates it and are you able to output that anywhere, or is it just something you read? Hope: Absolutely, so this particular program allows you to put in the wage, and it allows you to put in whether or not taxes are withheld, so technically even if you were, you know not freelancing, if you working a job as an employee, a W2, you could use it as well. Basically it allows you to put in your breaks and your lunches and things like that, and it lets you know when to go on the break, and when to go to lunch, and when to clock out, and when to clock in. [Music] App Voice: Sample Job, 0.05H today, 0H button, clock out now or long-press for extras menu, button, next clock out now, button, cause now, button, break now button, break now, sample job 0 H on break 8:10 a.m., 0.02H button, end break or long press for extras menu button, end break. Hope: It also will let you know, like you can, you can set a reminder to have it automatically clock in when you get to work, and yes you can send it, I think it's a CSV file, or CV file, something like that, a database file, and it will put it in an Excel spreadsheet I think as well, so that you can show it to your employer. Jeff: That's kind of neat. Serina: That's pretty cool I like that. Hope: Yeah it's a it's a pretty neat app for sure. Jeff: Intuit the makers of QuickBooks and various tax applications has a program and it might be part of their bundle and I believe you can buy it separately, I believe it's called Self-Employed, but that sells on a monthly subscription for 7 to 8 dollars a month. Hope: Yeah this is free and I think, I'm trying to think if I paid for anything, I think I did just because I was freelancing at the time and I wanted them more, more, so it has a lite version and it has a full-featured version, but even the full-featured version wasn't some really really, you know cheap price. Jeff: A one-time fee? Hope: A one-time fee yeah. Jeff: That makes perfectly good sense, economically I can track that pretty good. [Laughter] [Music] Jeff: You can download Hours Tracker free from the App Store or the Google Play Store. Hourlys Tracker is free for up to 21 days of time entries and if you upgrade to the pro or professional, you get rid of all the ads, unlimited amount of entries that you can make, the only difference between the professional and the personal is you can have unlimited amount of jobs in the professional, and you can upgrade to the professional or the personal in the in-app option. The professional will run you $9.99 and the personal will run you $5.99. Once again, a one-time payment, I was really intrigued when I heard about Hours Tracker, I downloaded to my iPhone, and started using it right away, I named a job, I started the time, and when I was completed I stopped the time. I also had the option to input the time that I wanted it to start or input the time that I wanted to stop, otherwise you could do it in real time and that works out really nice. There's also an option that you can take notes and keep them with that job. I found that the accessibility on Hours Tracker on my iPhone was second to none, all the buttons were labeled and the intuitiveness was what I expected for when I have started logging the job, putting in the hours, getting out of the job, putting notes in, was just exactly how I expected it would work and it did work that way. Another small part of the accessibility, it lets you cancel a pop-up or dismiss the pop-up that comes up, and I really like that because if you've ever had a pop-up pop-up and not be able to get rid of it, that's not good. So after kicking around Hours Tracker on my iPhone for one job, I personally recommend this for anybody who is self-employed or someone who works on projects and just wants to have better records of the time they spend on their projects and jobs. [Music] Jeff: So on the Blackboard, I remember I have not experienced Blackboard yet, but I remember going to college and I was at the mercy of every professor that was experimenting by putting stuff on the web and accessing it through a link they give you, and if it was accessible you got lucky, so Blackboard is a collective effort to make it accessible for everyone. Hope: Absolutely, so it all depends on the type of class you're taking obviously right, if people don't know I'm going back to school to become a teacher of the blind and visually impaired and so all of the courses need to be accessible to me. So the professor's will tag their images so that I can know what's going on, their quizzes are all accessible, obviously the discussion boards are all accessible, and I use a combination of the two apps, so I use the combination of Blackboard and I use Learning ally to be able to do my classwork, and literally like I said, I can do it anywhere. With the phone if I have a Braille display and/or a Bluetooth keyboard I can do my homework on the beach or in the park you know, so literally anywhere and that's huge compared to when I was going back to school to get my undergrad degree, like you know 2009, that's when I graduated so it's, it's huge it's a huge step up. Serina: Yeah I remember using Blackboard when I was doing my master's degree which would have been gosh, probably around the same time as you are doing your undergrad, so I finished in 2010 and so, I don't know, 2007, 2008, somewhere around there's when I started it and they used Blackboard for everything. My program was pretty much 100% online, we didn't have the app back then, we just had the website, but even back then the website was pretty accessible. I rarely had any difficulties with it and I was going for the rehabilitation counseling so the professors were a little bit more cognizant of accessible media and documents and things like that. I loved using blackboard because it is easy to log on to, you know if I was on a break at work or whatever, or at home trying to get a discussion posted or something like that. Hope: Yeah it is really easy to use extremely easy to use. Jeff: Is that why you opted to do your classes online, not that you're on an island out off the shore of Maine, but..... [Laughter] Hope: Yeah I think, I think it's easier because I've done classes on site to, not having to do as my masters, but having to do with my undergrads degree. I find the digital world to be a lot more accessible, I just remember going to classes on site and didn't have a lot of input from the professor. The professor was teaching to a lecture hall full of I don't know, a hundred students, I just felt like I was kind of left out and wasn't getting all the notes that I needed to get, whereas here taking the classes online and using, again the combination of Blackboard and Learning Ally, I'm able to take the notes that I need, I'm able to contact my professors if I need to. I have peer to peer interaction as well. I feel like I'm getting a lot better education, so yeah I think, I think the online learning is an equalizer. Jeff: Mm-hmm. Hope: Of sorts. Jeff: Yeah that's great because you know everyone has to do what works for them and if you found a good way of doing it that's great, having those two apps makes it all accessible. Hope: For the most part yeah everything is accessible, even from registering for classes, I go to Missouri State University, so using Missouri State's website is accessible. It's just huge, it's what we're able to do as people who are blind and visually impaired with a digital world, it's absolutely huge. Jeff: So is that something you looked for when you were looking for an online course that they did use Blackboard? Hope: Not really, I didn't know what they used, I contacted them, I did ask them in the beginning when I was registering for the program what they used and I could have used Moodle, Moodle was another application, another learning management system that I'm familiar with and either one I would have been fine with. I looked online and and saw the collaboration between the two blindness organizations regarding Blackboard and I'm like okay this is going to be fine, this is gonna be great, I know it's gonna be accessible, I contacted my professors beforehand and gave them my accommodations and all that and said I need extra time and because it's a digital world they can input my time-and-a-half for quizzes and allow me to have that time and you know they can input that in Blackboard and all is good. I can't speak enough good things about accessibility and digital stuff. Jeff: So let's see, there's Learning Ally, we will put that in the show notes, we'll put Blackboard in the show, we'll put all these in the show notes so people can click on them and go right to the App Store or the Google Play Store and we'll have the links there, so back to the cliffhanger. [Laughter] Jeff: Hi Serina. Serina: And I thought of one like while we were sitting here, so even you'll be surprised Jeff. Jeff: Ooo. [Laughter] Serina: My absolute number one favorite app and I see it all over all of the groups like iPhone and iPad apps, and the assistive technology group, all of them, a seeing AI, I don't think it's any surprise there. That app allows me to be a lot less dependent on a human reader to just go through what's in my mailbox that I get at work. Now I can just kind of okay, yeah I need someone to finish reading that to me, or oh, this is just something that needs to go in the file, it's cut down on how much time I have to spend with somebody sitting at my desk with me going through stuff, and it's free, which is amazing to me because I remember reading gosh, I think it was like two years ago when Microsoft had their hackathon and they had released a video about seeing AI and they were showing a demo of it and I was like, well that's cool but it'll never come out and if it does it'll be super expensive. And then all of a sudden there's a link, and it's free, and it works, like amazingly and it, I can't thank Microsoft enough for that, that actually was a big surprise for me. Jeff: Yeah, you just open it up and boom, short text is reading. Serina: Yeah, from across the room right Jeff! [Laughter] Jeff: Yeah, that happened to me and, I shouldn't say it but I was that Orcam demonstration when they were having the little issues, and I was reading the wall that had their sign on it, so I was like wow, this is already talking, just out of the box, just turn it on and there it is. Male Voice: I use seeing AI all of the time to determine what's in my medicine cabinet, for documents you know I use seeing AI for short text. [Music] Female Voice: I use the document reader all the time, not gonna say it's as good as KNFB Reader because it's not. I did a test between reading my mail with it and with KNFB Reader and I found KNFB Reader to be far more stable, but I still like the app, I use it a lot, I'm glad that it's one of the tools in our toolbox. Female voice: For reading and stuff I used to go to KNFB Reader all the time but it just seems like Prizmo go and seeing AI is so much easier that I tend to go to them more. Male Voice: Seeing AI is my main go-to app and I use that, the short text channel mostly if I can't identify an item with that I will switch to the product channel if it has a barcode. A lot of the apps like [Inaudible] and Aipoly Vision and [inaudible], I've deleted most of those off of there because I can accomplish the same thing with seeing AI [Music] Male Voice: Jeffrey I see apps like Aipoly Vision, [Inaudible], Identifee, of course the KNFB Reader, I think seeing AI is becoming the main tool in the toolbox. Jeff: And you know, all the other channels that they have on their to four options but that's the one I use all the time because, you open it up it works. Serina: Yeah there's a handwriting one too that I've tried only a couple of times, but it surprisingly did recognize the handwriting enough for me to figure out at least what the note was generally about cuz sometimes my clients will stop in and I can't see them, and they'll leave a handwritten note at the front desk and obviously it's probably dependent on the individuals handwriting but I was at least able to get the name of the client and know, okay I'll just call them and see what they needed. Jeff: Hmm, well that's good. Serina: That one's in BETA I think. Jeff: Yeah you always wonder when they have a little feature that's in there and they tag the word BETA after it's like, you better use it now because it may not be there! Serina: Or it's like the disclaimer don't trust this feature. It might not work right! Jeff: Mm-hm try it on a doctor's prescription. [Laughter] Serina: Oh gosh. Jeff: That's the to test. Serina: This is totally not productive but when seeing AI first came out, we were playing with it in my office to see how old it thought everyone was. [Laughter] So all of my co-workers were like changing their hairstyles or putting on glasses or taking off glasses to try to trick it to make it think that they were younger. Jeff: That's a great use of state-funded money. [Laughter] Serina: Hey! Jeff: I know everyone's been doing that, it's kind of a novelty thing and that's like artificial intelligence to me when they're built into apps to me, it's like you know when you go to the carnival, you know, they'll guess your age and you win the whistle or something but you know, I'm not into the novelty stuff but that really does work. Serina: Hope, do you use seeing AI for any of your school work, or since it's mostly digital do you not have to use it a lot? Hope: Yeah I use it sometimes, I use it for work actually to find out whether or not my Mac, my work Mac is gonna turn on correctly. We have so many policies in place at Apple that sometimes voice-over doesn't turn on correctly and so I use either seeing AI or I also use AIRA for that, but most of the time I just grab my phone and you seeing AI. Speaking of the, or how old people were, I actually did that last weekend I think it was on my grandmother's 93rd birthday. I went up to her and took a picture of her and had seeing AI tell her how old she was, now again she's 93 right, so it said a 65 year old woman is smiling, or looks happy or something like that and she's like, wait, did it say 65? [Laughter] Hope: Shes like, I like that! So it made her day. Serina: Yeah. Jeff: I actually think for women they do have a built in algorithm that knocks off a couple years just to you know, keep the customers happy. Serina: No it added 10 years to mine, no matter what it says 10 years. Hope: Oh really. That's funny! [Laughter] Jeff: The algorithm breaker! Serina: Gosh. [Laughter] The other one that I use is obviously very similar to seeing AI but sometimes I require KNFB Reader when I have more than one page that I want to kind of read continuously. To my knowledge I don't know that you can scan multiple pages in seeing AI and if you can, somebody let me know, cuz I actually like it a little bit better. But sometimes when I'm working from home and I don't have access to my flatbed scanner but I need to read some printed like medical documents or things like that, I'll take out KNFB Reader and just scan a whole bunch of pages all at once and then read it, through it continuously, so that's very helpful, and then also you can save on KNFB Reader in their file system, and I think I saw on the latest update that now they can sync with Google Drive and Dropbox now to, so that's kind of a really cool feature that they've integrated in there now. Jeff: Yeah I like the KNFB Reader when I have like, I might have 10 pages of something to read and I don't want to take a picture of each of them so I put it on double sheet and then batch mode and when I turn the page it'll sense that, so you know you got the page turning then ch-ch-ch. KNFB Reader Voice: Manual picture button, automatic picture, picture from ste..., alert, please place your device on an empty document stand and align the camera with the aperture, okay, button, flash off, button, multi-page mode off, button, multi-page mode on. [Camera Sound Effect] Serina: Do you have a stand that you use with it? Jeff: Yeah I do, its the Fopydo and it was designed by Thomas Wardega, and here he is. Thomas: Fopydo sounds good, and I actually at that time asked my son, and it was actually a play on the on Scooby Doo. So basically this was designed from the ground up for people who are blind and visually impaired and along that process I learned to work with people who are blind so I went through a couple of revisions of the stand before I even started selling it just to make sure that people are happy with using it and that it fulfills whatever is needed from a scanning stand for people who are blind and visually impaired. [Camera Sound Effect] Jeff: It comes with a set of instructions that you can scan, you can put it together, once you got it together it just folds right up and you can put it in a suitcase, it takes up very little real estate. Serina: Oh I need one, and does it work with any phone or? Jeff: Well back when I talked with him he said it would handle, if you balanced it right, and iPad Mini, so I, I guess your your beast of a phone, your iPhone X may work. [Laughter] Serina: Yeah and put the link in the show notes cuz I've been, I thought, I had somebody looking for one before and they were like $50, I'm like mm-hmm, I'll just hold it up, you know. [Laughter] Jeff: Having the batch mode on the KNFB Reader really makes it viable product for someone that's in school that may have to be scanning a lot of pages. Serina: I definitely need one of those. Jeff: Yeah we'll put the link in the show notes and I believe he sells it on Amazon and if you have Amazon Prime, there you go, ten, twelve bucks. Serina: Primes getting expensive though it's like $120.00 starting this year. Hope: I think there's a discount for students. Serina: It's half off for students cuz I had that for a couple of years, and then they got smart and realized that I'm not a student anymore because my school let me keep my student email address for years, and I don't even think I have it anymore now. Now they make you verify by sending in like a schedule. Hope: Oh really? Serina: Yeah. Hope: Similar to Apple music, they do the same thing. Serina: Yeah, and I think Spotify does the same thing too. Hope: Yep. Serina: They got smart. Jeff: So we'll have to put the link in there for Amazon Prime half off for students, that's good news. Serina: Yeah that's it, and half off of Apple music and Spotify, not that those are, those could be productivity apps because if you need music to stay focused. Hope: Technically yeah, exactly, that works! Jeff: Or books. Hope: Yeah. Jeff: Amazon still sells books. Serina: Who orders books anymore? Jeff: Does anybody use Audible for books? Serina: I do not, I totally looked at it, but every time I looked at it I just can't, like I think it's thirteen ninety-nine a month for so many credits and one, the amount of credits you get for that amount is equal to downloading one book, and I haven't found that it's better than just using BARD, because they usually have especially if it's a best-seller what I want anyway. Jeff: Mm-hmm and the BARD app is totally accessible too. Serina: Yeah it's, it's a little old school sometimes, it has its glitches but it gets the job done. Hope: It can be yeah, exactly. Jeff: But it's, it's something that if you do send in a report and stuff like that they'll fix it? We can hope for the best right Hope? Hope: Yeah exactly, yeah sure, I'll write them, I'll give them a good report! Jeff: There you go. Hope: Sure. [Laughter] Serina: Well and it's hard because I know, I think that's run by the Library of Congress so that probably takes like an act of Congress just to get a glitch fixed you know. Jeff: Oh good one! Serina: I didn't mean it to be all cheesy but it's kind of funny. Jeff: Yeah it is, it is, it's nice when things work and you know, you were talking about seeing AI when you open it up short text just starts. I got an app called Drafts, just like the seeing AI, when you open it up it just works the short text is working, do you open it up and the cursors waiting up in the upper left-hand corner and you can start typing, you don't have to open up a new file. The neat thing is if you're in a meeting and you're taking notes and you can set it for certain increments of minutes that pass by and then next time like you open your phone, say it closed, it'll start a new file automatically. Serina: Well that's cool. Jeff: So you're not adding to your recipe you wrote two days ago that's still sitting there, do you want to save it, you don't know if you should save it, it automatically, so if you set it up for 10 minutes, if 10 minutes goes by, it saves it, and opens up a new one, just ready to go, so it's like a new sheet of scratch pad for you, can actually do some markups on it, yeah share it anywhere you want, it's really cool. I do the cut and paste and then just pop it into an email, bang! Serina: I like that, is that a free up too? Jeff: Yeah Drafts is free, I think it's called Drafts 5, there is a professional upgrade, a pro version and that is $20 a year or two dollars a month, but you can do a lot with just the Drafts app. I just love that because when you just want to take down a note, I don't like going into, I use pages because it syncs up with my apple orchard but when I'm at someplace where the meetings starting and I open up pages, you know it has to load up, it goes to the recent, and it seems like, you know all the gears have to spin around five times before anything happens, but this one opens up just bang, it's ready to go. Serina: I especially have that problem using the native Notes app on the iOS devices. Ever since they made it where you've got some notes on your iPhone, some on iCloud, some on Google Drive, or Dropbox or wherever, it's so hard for me to figure out where my notes are anymore that I just don't use that app anymore. Jeff: And that's my second app that I was going to talk about, it's the files app in iOS platform on the iPhone. Files, if you don't know where it went because it says, oh it's stored on the iCloud, or on the desktop in the iCloud, or on the iCloud Drive or wherever, and you start hunting around, but if you go to files and go to most recent, it'll check all those files, all those different drives, all the different places on your phone and everything, but if you go to recent and then if you click up on top you can go back and actually go specifically only to one area where you think it is, but if you put it on all, its checking all those drives that you have synced up with it and you can usually find it, so when I get lost for a second I just open up files and go to the most recent and there it is. Serina: That's a good tip, I didn't know that. I never really knew the point of the files app. Jeff: Yeah check it out, open it up and just see, and you'll see what you've been doing lately. Seirna: So I have one more that you do not know that is my favorite apps to use, any guesses? Jeff: Hope, what do you think it is? Hope: Hmmm, Uber, no it's not productivity, nevermind. [Laughter] Serina: Well technically it is, I do use Uber and Lyft a lot for work actually because I have to go as part of my job, I have to be at high schools and things like that and I am almost an exclusive Lyft user personally. Jeff: And why Lyft over Uber? Serina: I just have found just with my personal experience in the city that I live in that I've had better luck with Lyft drivers as far as friendliness and I have a service animal so, I've never been rejected on Uber, I'm actually, the only place I was was actually on Lyft. I found that the cars have been cleaner and the drivers just seem friendlier and with Uber I specifically am NOT a fan of the, if we wait more than two minutes, we're gonna charge you policy. Hope: Oh that's not good. Serina: Yeah that's a newer policy, maybe in the last six months and that policy just really bothers me especially when you're visually impaired. Drivers will say they're there and you're like where? You know, and if they're automatically gonna charge you, I think it's, I don't, I guess it's maybe like five dollars, if the driver has to wait I believe it's more than two minutes, like that's stressful, it's already nerve-racking like being like, hey I've got a service animal, are they gonna drive right past me, are they gonna pick me up, and then to know they're also gonna charge me an extra five bucks if I can't find them. And then they also tend to do the walk here and meet your driver thing. Jeff: Oh yeah. Serina: And I've never had that happen with Lyft no matter, I've been in downtown Denver and that's not happened before, but Uber will send you up a random parking lot or something to meet your driver. Hope: Oh wow! No thank you. Serina: Yeah so that's more why I'm Lyft exclusive, and then on the driver side I'm not quite sure how it breaks down, I don't remember how much the drivers get but I know with Uber it's not like a set percentage that the drivers get as far as, like I think it with Lyft the drivers get 75% of the fares With Uber, nobody really knows what percentage of the fare they get because they can, I've had drivers say like, yeah I've done rides Denver to you know, the DIA Airport and sometimes I get 60, sometimes I get a hundred, like there's no, I guess transparency with it. Jeff: Mmm-hm. Serina: And I can only speak to you know what I'm told, but I just personally feel better about using Lyft and for those who don't know, Lyft also released an update to their service dog policy saying that an allergy or a fear of animals is not a valid reason to not pick up an individual with a service animal and I feel like that's a very strong policy, and that's telling you where they stand on that very clearly, and I'm not, I'm not sure if Uber has come out as strong as they did. But that's all for a whole another podcast, you have to use all that when we talk about transportation. [Laughter] Jeff: No that's, that's good information because in my neck of the woods my wife uses Lyft, I use Uber and yet, I've been noticing that at certain peak times the price goes way up and other times it's low, and the waiting time changes, but you know, if it were two minutes, it's sometimes it's as low as thirty seven cents, but other times it's higher, you know, so things, I think it's the area you're in that really has, it makes a difference between which one you use, it is productivity because you got to get places and it's nice to know you can get there. Serina: And on time and on your own time. Jeff: Good. Serina: But that was a really good guess that brought on a whole another discussion, I liked it. [Laughter] Serina: But honestly we're on the app right now. Jeff: Ahh, zoom zoom. [Laughter] Serina: But part of my job is to train other people and to hold conference calls and things like that, and to my knowledge as far as like a true training platform where you can record and share your screen and things like that, I found that Zoom is the most accessible system out there that's also used by like companies all over the place. I know Skype is out there, but I don't know if Skype lets you like record the calls and things like that, I don't, like independently, not by pushing it through a different software but just right in the program recording it and having that access to be able to share your screen and still use your PowerPoint effectively and things like that. Jeff: Mm-hmm, and we're doing a neat thing for the first time here and we didn't know if we could do it but Hope sat beside us waiting patiently for us, but we figured it out and we're recording on two ends right now. Serina: Unless I pushed the wrong button again which is very possible. [Laughter] Jeff: Another cliffhanger, stay tuned next week when we find out! Serina: That will be our opener next week. Guess what I actually did it right! Jeff: You know, I'm starting to like Zoom because it's like I can't even tell you, you guys are here, because typically when we're using Skype in my headphones, I have this hiss when other people aren't talking so there's continuous hisses going on and then in the editing phase. So Zoom's really good and I really like the feature where you can send an email and people can just click on the link and they connect right up. Serina: Yep, it makes it really really easy. Hope: So a question I have, you mentioned sharing your screen, how accessible is that with voiceover? I heard through the grapevine that the voice-over will read actually what's on the screen. I don't know if it's true or not? Serina: So I haven't had a chance to test that because at work we don't use any Max, and then when I'm on a Zoom call and I am a participant I'm not usually on my iPhone. Hope: Right. Serina: So if you are leading the meeting and you're sharing your screen, it's actually pushing through a video of your screen, so it's almost like, I just imagine like a webcam watching your screen or whatever. Hope: Right, so I would assume it's not accessible then. Serine: Correct, but and I don't remember the keystroke, maybe Jeff knows, but I know in the latest major update to the OS on the Macs and iOS, you can have it essentially perform an OCR on the screen like live, with the software on the Mac, but I haven't had a chance to truly test that out just because I'm not usually on Apple devices when I'm participating. The way that I work around that, because I do have to present to individuals that use screen readers as well sometimes, is I usually will send my PowerPoint out ahead of time so that they can follow along while they're listening to the meeting, but then they also have access to the chat panel and everything else, it's just the visual of the video that they're not quite having access to but I, I just send it out ahead of time. Jeff: Yeah I haven't dug too deep into this, but Serina told me about Jonathan Mosen's book, and he did a full fledge book on using Zoom for calls and meetings and stuff like that, and yeah, I believe you can get that on Mosen's consulting on the website, and we'll put a link to that in the show notes. Serina: Yeah the book is called "Meet Me Accessibly" and it's very current based on, because I listen to maybe four or five chapters so far, and it sounds like he recorded it maybe in June of 17 and he does a really good job of letting you hear the screen reader and how it interacts with everything and going through all the different settings and explaining what exactly it is that they all do. Jeff: Yes he does he has quite a few books on Mosen's consulting so when you get there, just look around and he has tutorials on a lot of different topics, he's into the Mac, he's into, no not the Mac as much anymore, but he's into the PC, Microsoft. Serina: All these plugs Jeff, you're going to need to get some royalties! [Laughter] Jeff: Hopefully I get their name right and their website right. Another app that I have that I use and some people laugh at this, I use Dictionary Thesaurus Plus, and if you get the dictionary you can upgrade and you get, its a combination of Dictionary and Thesaurus Plus and I get the word of the day, and I'm just waiting to get that specific word to send Serina because she laughed at me when I talked about this app before. But it's just kind of neat because in there, they have flashcards and I'm on the bottom, they're not labeled but I figured out what two of them are, flashcards, so I took insight today just when I was skipping around there and I made a flashcard so on one side it says insight, on the other side it says the definition, so someone could actually go through there if they have a 10 word list that need to know or learn, like they're in school and they could actually input the word, get the dictionary, and there's also a button that says go to page, so if you want more definition you can just click on it, brings it right to the dictionary page and it's just kind of a neat resource if you're into that you know. If you want to know what words mean. Serina: Well that could you, I mean you just brought up a good point though, that could be a really good study aid for somebody if you're in a class where there's a lot of maybe theories, or specific definitions you need to know, you could load all those in there and while you're on the bus or whatever kind of be going through those, probably a more fun way than just reading the book. Jeff: Yeah and that's why I did it, like when I took Spanish, I made, I made note cards. I took these note cards and I brailled on one side, and then on the other side I had some other Braille, the translation in English to what it was, so I could just go through, and people were like joking with me like, Oh flashcards, it's like it's something for the kids or something, but hey, it's a good learning tool because it's just repetitious and pretty soon it just starts coming to you. Serina: Mmm-hmm. Jeff: So I dug right in when I saw they had flashcards, I went wow! So I really like that and it's, uh I think there's a fee for the upgrade, might be a few dollars but you can get download at all for free and test it and then in the in-app you can upgrade. Serina: Nice! Jeff: Well I think we got a handful of apps here that you know through experience we, we've been trying, we've been using and stuff. Some of these apps if you find them useful click on the show notes, download them, check them out, and if you have any feedback or suggestions on the apps that you want us to do on our next show, give us a jingle, drop us an email at JobInsights@blindabilities.com, on Twitter at Job Insights VIP, and uh, let us know what you think. Serina: What are we talking about next tiem John....John? Wow! Sorry! [Laughter] Jeff: Well Sarah! [Laughter] Jeff: What will our next one be on? Serina: I don't know, we have so many topics, normally I'm like, let's take this, let's let Hope pick the next topic, no pressure! Hope: No pressure yeah right mm-hmm! Let's do transportation since we kind of talked a little bit about it in this one, that would make sense. Serina: Getting to work. Hope: Yeah, absolutely. Serina: Perfect. Jeff: Getting to work, school, college. Hope: Yeah. Jeff: There you go Sarah! Serina: Stop it! [Laughter] Jeff: And if you want to contact Hope, she's on Twitter. Serina: If you want people to have it? Hope: Yeah my Twitter is Fidelco, capital F as in Foxtrot, I, D as in Delta, E, L, C, O, 4, the number four, ever. My email address is hopepaulos@gmail.com, so hopepaulos@gmail.com. Jeff: Well Hope thank you very much for coming on to Job Insights, it's really neat to have you and we're gonna have you back as soon as possible here for our next round table. Hope: Thank you so much Jeff and Serina, it was wonderful being here. I appreciate it! Serina: Yep, you have a great day! Hope: Thank you! Jeff: Do you know it's nearly midnight and you said have a great day? Serina: Well this will come out during the day. [Laughter] [Music] Jeff: It was a real pleasure having Hope Paulos join us on the show today, all the way from Maine, and next week when we're talking about transportation all the way from New York we'll have Joe De Niro, so stay tuned to the next episode of Job Insights. And a big shout-out to Chee Chau for his beautiful music and you can follow him on Twitter at lcheechau, as always thank you for listening, we hope you enjoyed, and until next time bye-bye [Multiple voices] When we share what we see through each other's eyes, We can then begin to bridge the Gap between the limited expectations and the realities of Blind Abilities. Jeff: For more podcast with the blindness perspective, check us out on the web at www.blindabilities.com, on twitter at BlindAbilities, download our app from the app store, Blind Abilities, that's two words, or send us an email at info@blindabilities.com, thanks for listening.  

Blind Abilities
Job Insights Episode 2 - Vocational Rehab 101: Demystifying the Myths and Planning For Employment (Transcript Provided)

Blind Abilities

Play Episode Listen Later Apr 29, 2018 22:12


Job Insights Episode 2 - Vocational Rehab 101: Demystifying the Myths and Planning For Employment Welcome to the second episode of  Job Insights with Serina Gilbert and Jef Thompson. We focus on Employment, Careers, enhancing opportunities and bringing you  the latest innovations from across the Vocational  Rehabilitation field to ensure your choices lead you down the career pathway that you want and succeed in gainful employment. From getting started with services, to assessments, Individual Plan for Employment (IPE) to gaining the skills to succeed and tools for success, Job Insights will be giving you tips and tricks to help your journey to employment and break down the barriers along the way. In Episode 2 of Job Insights Serina and Jeff break down Vocational Rehab services from eligibility, intake, personal adjustment training, training centers, and your responsibilities as well. Navigating the services may seem daunting at first but with a little bit of information and explanation you will soon fine your pathway to gainful and meaningful employment does not have to be a solo journey. Your Voc-Rehab team wants you to succeed and is their for you all the way.   Full Transcript Below   We hope you enjoy this Job Insights episode and you can send your feedback and suggestions to the Job Insights team by email at JobInsights@BlindAbilities.com Follow the Job Insights team on twitter @JobInsightsVIP Job Insights is part of the Blind Abilities network. A big Thank You goes out to CheeChau for his beautiful music!   Thank you for listening. You can follow us on Twitter @BlindAbilities On the web at www.BlindAbilities.com Send us an email Get the Free Blind Abilities App on the App Store.   Transcription:   Job Insights Episode 2 - Vocational Rehab 101: Demystifying the Myths and Planning For Employment   Serina: I know sometimes that a lot of individuals can be a little bit overwhelmed by applying for services with vocational rehabilitation and we'd like to hopefully demystify some of the myths and help you learn a little bit more about the process. Jeff: Job Insights, a podcast to help you carve out your career pathway and enhance the opportunities for gainful employment. Serina: Helping you with independent living skills, helping you get around town, helping you with cooking, money management, all those things that you need in order to be successful on a job. Jeff: Learn about resources for training, education, and employment opportunities, to see what best suits you to see if you're prepared to move on to the next step. Serina: Correct. Jeff: Thus it's an assessment. Serina: Correct, it helps the counselor out and it helps you out too. Jeff: We will hear from people seeking careers, employment from professionals in the educational field, teachers and innovators in this ever-changing world of technology to help you navigate the employment world and give you Job Insights, and enhance the opportunities to choose the career you want. Serina: We would hate to see you move forward with an employment goal that you thought you would absolutely love, only to find out maybe three months into the job that you obtain, that you really don't like it so much, so it helps us save a little bit of time and prepare you for realistic expectations on the job. Jeff: You can find the Job Insights podcast on BlindAbilities.com, part of the Blind Abilities Network, with host, Serina Gilbert and myself, Jeff Thompson. And you can contact us by email at jobinsights@blindabilities.com, leave us some feedback, or suggest some topics that we cover, you can also follow us on Twitter at Job Insights VIP, and check out the job inside support group on Facebook where you can learn, share, advise, and interact with the Job Insights community. [Music] Serina: Sometimes it might be getting more evaluations done with an orientation and mobility specialist, or a vision rehabilitation therapist to see what kind of personal adjustment training you might need. Jeff: And now please welcome Serina Gilbert and Jeff Thompson with Job Insights. Serina: Hi Jeff how are you? Jeff: I'm doing good how are you Serina? Serina: I'm doing great, how was your week? Jeff: It was good, it was good, the sun has come, spring is finally here. Serina: I don't know, I think you might get some more snow. It's not May yet. Jeff: We're just so glad to have it, I already got the patio furniture out, so I'm excited, I'm excited. Serina: You gonna be barbecuing for me? Jeff: We did that yesterday. Serina: Nice! Jeff: And I didn't even let you know did I? Serina: No you didn't even invite me, even though I'm, I don't even know how many miles away from you. [Laughter] Jeff: I'll waft the barbecue smell west. Serina: Send it over with an Amazon drone you know. Jeff: There we go. I wonder what that sound will be? Serina: They'll probably have like a special Amazon Prime sound for us all. Jeff: Oh yeah so it's recognizable. Serina: Everyone's jealous because we got something from Amazon. Jeff: The dogs will whine just a little bit, it is exciting though when a package comes. Serina: So I heard that we got a ton of positive feedback on our very first introductory episode to Job Insights? Jeff: Yes we did, it did not come by drone, but we got so much positive feedback, it's really exciting. Serina: I think that's great. I know today we were talking about vocational rehabilitation 101, and we'll chat a little bit about the process, what to expect. I know sometimes that a lot of individuals can be a little bit overwhelmed by applying for services with vocational rehabilitation and we'd like to hopefully demystify some of the myths and help you learn a little bit more about the process. And I know, as I talked about on the previous podcast, I was also a client of vocational rehabilitation and I believe you were as well right Jeff? Jeff: Yes I did, but unlike yourself Serina, my ophthalmologist did not send me there, so getting started with State Services was interesting. Serina: At least you got connected, that's that's the biggest part. Jeff: Mm-hmm. Serina why don't we start out by telling the listeners a little bit about what it takes to qualify for services, and if it's a federal or state standard that they go by. Serina: So it's a federal mandate, the eligibility requirements for vocational rehabilitation systems, in general, you have to have a documentable disability that poses some sort of barrier towards you entering into employment, keeping employment, or advancing in the current position that you have. You also have to be able to basically benefit from the services and that's a presumption that most agencies make. Jeff: A presumption? Serina: A presumption of eligibility. Jeff: Hmm? Serina: Another eligibility criteria that helps is, I believe if you receive SSI or SSDI then you are automatically eligible for vocational rehabilitation services. Jeff: So that's usually a process when you go there for services then you probably have to get it to go to a doctor so it's documented. Serina: Well, you can go to a doctor, but if you do not have documentation of your disability, vocational rehabilitation can actually either send out for the records, or send you for evaluations in order to obtain that documentation. Jeff: And that's just one of the steps of the intake process. Serina: So that first step is your intake appointment, which your counselor will go over a ton of different paperwork with you, you'll sign some releases of information for them to be able to talk to necessary individuals that might be working with you on the case, or to obtain medical records, or again refer you for those necessary evaluations, and from that time frame of the first date that you officially apply for services your counselor has up to 60 days to determine you are eligible for services. It can take that long depending on the counselors caseload, but sometimes it's faster, it just depends on the documentation that you already have, and what that counselors caseload looks like. Jeff: Is that the same for when agency is on order of a selection? Serina: Correct, they still have the same 60 days eligibility determination requirements, even if they do have a waitlist or order of selection. Jeff: So if they determine on the intake that you're in, then what's the next step? Serina: The next step is what's called the comprehensive assessment. What happens in this stage is you and your counselor are working together to identify a reasonable and suitable employment goal and also identify the necessary services that might be provided to you in order to help you achieve that employment goal. Sometimes this process could include you trying out work, doing what's called a situational assessment, and that would involve you going to a worksite and trying out the job to see if you like it, see that the duties are something that work well with your personality, in your disability, and also to help you with networking. Sometimes it might be getting more evaluations done with an orientation and mobility specialist, or a vision rehabilitation therapist to see what kind of personal adjustment training you might need. Jeff: Serina, personal adjustment training, can you break that down for our listeners? Serina: Definitely, personal adjustment training might include helping you with independent living skills, helping you get around town, helping you with cooking, money management, all those things that you need in order to be successful on a job. Jeff: And typically you could be sent to a blindness training center or a vendor of the agency? Serina: It depends on this state, some agencies do use the blindness centers, some do have in-house service providers that work specifically for DVR, or third-party vendors like you mentioned, and then I'm not sure about other states, but here in Colorado we do actually have a center based program that the vocational rehabilitation program staffs as well. Jeff: And in Minnesota were fortunate to have three adjustment to blindness training centers, Vision Loss Resource in Minneapolis, Blind Incorporated in Minneapolis, and in Duluth we have the Lighthouse for the Blind, plus State Services for the Blind, and various vendors that will provide specialized services as well. You mentioned doing a situational type of thing where you go to an employer and they do an evaluation, would that be set up with your employment specialist to see if this is an interest of theirs or to see if they like it? Serina: It can be set up through an employment specialist if the state that you work in is structured in that manner, sometimes it's your vocational rehabilitation counselor that's setting it up, and sometimes it can even be a third party vendor that you're working with that is providing that assessment service for us. Jeff: And this is all in an attempt to see what best suits you to see if you're prepared to move on to the next step. Serina: Correct. Jeff: Thus it's an assessment. Serina: Correct, it helps the counselor out and it helps you out too because we would hate to see you move forward with an employment goal that you thought you would absolutely love, only to find out maybe three months into the job that you obtained that you really don't like it so much, so it helps us save a little bit of time and prepare you for realistic expectations on the job. Jeff: So if you do need some soft skills, if you do need some technology skills, and it's determined that you should go to a blindness training center of some sorts, that might set you back six to nine months or whatever it takes right? Serina: That's correct, the blindness training centers are not super short programs, I think the shortest program that they have is the summer youth program for those that are still in either high school or college perhaps, and I believe that's even eight weeks. Jeff: And that's basically like a step program to bridge you into college preparedness? Serina: Correct. Jeff: And if you're planning on going just straight into the workforce then a training center might give you the skills that are needed to help gain employment. Serina: Correct, they work on every skill that you can possibly think of from independent transportation, orientation and mobility, independent living, I do believe they do some self-advocacy training, as well as working on basic social skills because you are living on campus with lots of other people and there's gonna be times when you disagree and you're gonna have to use those conflict resolution skills which will help you for sure once you start working. Jeff: I know we talked about transition aged students quite a bit, but there's also other people adults that have vision loss and they want to get their employment back and so these training centers do adult programs as well. Serina: And it can be quite helpful because I know last time we talked a little bit about an individual maybe who's coming in that has lost sight a little bit later in life but still really wants to work, that's a hard transition coming from having a driver's license and being able to independently transport yourself and work on a computer, to all of a sudden not having those skills anymore and abilities, and those centers and also other field based programs through vocational rehabilitation can certainly help with that transition, and also help you connect with different support groups and things like that so that you can start networking with individuals who've maybe been there as well. Jeff: However, before you move on to this step you must set up an individual plan or employment. Serina: That is correct, and all of the individualized plans for employment can only have services on it that the counselor and you agree are necessary and appropriate, and then they are always purchased at the least possible cost. So there might be times when there's certain products that you really really would like, but the counselor has to follow certain policies and purchase things at the lowest possible cost that is still appropriate for what you need the items for. Jeff: But typically the items will get you to your destination? Serina: Exactly, like as an example, there's lots of different types of computers now, we have our personal computers that maybe would run a screen reader or screen magnification software, and we have our Mac books that also have that same type of software built into it. Typically vocational rehabilitation is going to look at purchasing personal computers more so because we're looking down the road at employment and most employers still use personal computers, so it makes the most sense to get you used to using that type of a technology if you're going to be working in an office environment down the road. Jeff: And when you're saying personal computers, you're talking about Microsoft based platform. Serina: Correct, like a Windows computer. Jeff: Mm-hmm, Serina, can you tell us how flexible and IPE, individual plan for employment is? Serina: Yes, it's a plan, yes it's written on paper, but that doesn't mean that it can't be changed. So it's really important to communicate with your counselor if you feel that something's not going the way that you want it to go, or that you want to try something different, because that plan can definitely be amended, it's actually quite rare that we have the exact same plan from start to finish. Jeff: Okay someone goes through the process and they get their training, making progress, and you're checking the list and moving forward and now they're going to college and they are succeeding, according to the plan, and it comes time to where they start thinking about the job and job resumes, and job interviews, and all that, is there any services for that type of area? Serina: Definitely, it can be considered part of vocational counseling and guidance, which is on every single plan for employment across the country, I don't think there's any plans that don't have that, but it's also part of what we call job seeking skills training, which would be, you either working with your counselor, or perhaps a third party vendor to develop that resume, develop a general cover letter, and also start doing mock interviews, and begin talking about how do you want to handle the interview, how do you want to disclose your disability, if you want to do that at all, and how do you advocate for yourself during that interview. For example if you need an accommodation for testing and things like that as part of the interviewing process. Jeff: Now when it comes to disclosure, there's so many debates about it, and there I don't think there is any one answer, one fits all for this topic. Serina: Correct and I know we're probably gonna talk about that, maybe that'll be our next episode, because that's a hot topic of how do I disclose my disability, and what when and where, am I going to get discriminated against, things like that, I know people are very fearful of that, that definitely will warrant a full episode. Jeff: And that's a big one, so is writing your resume, because a resume is a work in progress, because if you're looking at one job, looking at a next job, it has to form to the job, the keywords and everything, so it's a good skill to have and a good thing to have a template to be able to adjust it for the job you're seeking. Serina: Exactly, we call it tailoring your resume because if you're not putting in specific keywords, a human's not even going to see your resume because there's so many electronic ways that they use, optical character recognition, and scanning the resume that you've submitted either online or even email, where they just scan to see specific keywords and skills and if it doesn't meet that, then it automatically gets denied. Jeff: Optical character recognition, it was such a gift and now it's working against us. Serina: Yep, sound familiar though right? Jeff: Mm-hmm, Serina with all your experiences, what tips would you have for someone who's receiving services and working with the counselor? Serina: So during the vocational rehabilitation process it's really important that you stay in close contact with your vocational rehabilitation counselor. There will be a lot of times when they're going to be asking for tons of paperwork that you might find cumbersome or even redundant. I promise you they wouldn't be asking you for it if they didn't need it because we get a lot of paperwork, if we didn't need it, we wouldn't be asking for it for you. So especially if you're on/in a plan for employment that includes training, every semester we're going to be looking at what grades did you get, what classes are you registering for next semester, do you need any books, did you apply for your federal financial aid? All of those things are things that are required before we can say yes we will pay for your tuition this semester at the school. If your counselor sends you an email asking for something, the quicker you reply the quicker things can move, and just know that sometimes things can't move overnight, if you call us and for specific piece of technology, we might not be able to get that for you immediately, especially if it's not included on your plan for employment, there might be some paperwork things that have to be done and ordering processes and things like that. So we ask that you're a little bit patient with us, but also the more you communicate with us, the better service provisions you will have. Jeff:And staying ahead of the game is the whole thing. Serina: Exactly. Jeff: Yeah, being on the State Rehab Council I get a lot of documents about this it's agencies and I see that one of the highest percentage of closures is because of lack of communications by the client back to the agency. Serina: That's probably actually pretty accurate because especially with my caseload I work with a lot of young adults, so they're still learning how to keep in touch so I do give them quite a few chances but it never fails that as soon as I close a case because I haven't heard from them despite multiple attempts on my end, about two weeks later is when they call me back and say, well I didn't know that you were gonna close my case. And obviously yes you can go back through the process and we can open it again but it's much more efficient even if you just send me a text message saying, everything's all right, I'm still out here, and that'll keep things going for you, but we have to remain efficient and show that the people that were working with are making progress in order to meet our goals and outcomes. Jeff: Serina, this is a lot of great information for someone who is going through vision loss, what advice would you have for someone who is seeking services from their division of vocational rehab or their State Services for the Blind? Serina: If you are a transitioning student and you're at least 15 years old and you are definitely starting to think about employment and what's next and actually some states that's as little as 14, but most states is about 15 or 16, but if you're starting to think about employment, I would say do not hesitate to contact your local vocational rehabilitation, talk to them about services, even if you call and you meet with them and it's not quite the right time, you are at least ahead of the game and knowing what to expect when you do decide that it's the right time for you. If you're an individual that's lost sight a little bit later in life or maybe have never heard of vocational rehabilitation and you're struggling with some vision difficulties, pick up the phone and give them a call, especially if you're looking into employment. All of our services at vocational rehabilitation are for sure geared towards employment now, so any services that we provide do you have to be tied to an employment goal with an eventual goal of being employed in the long-term. Jeff: You know Serina when I first lost my eyesight, I was skeptical you know, I was like worried about what's gonna happen and I didn't know, I didn't know where the blind were, I didn't know anything and I kind of felt like State Services, the agency was kind of a safety net, so I was gonna go out there and forge my own path and if I failed I would head towards the agency and get services, but now today, the more I know about it, it seems like it's a vehicle towards a future, and I've said this many times, but it is, it's it's, it's a resource, it's a place to go to learn about the pathways that you can take towards employment. Serina: And I'm curious what was your experience on the client side? I know you're on the state rehab Council and things like that, but do you remember being your very first experience when you first applied for services? Jeff: You know this is a great question for me because my experience was quite unique I think because when I first lost my eyesight I sold my pickup truck and I bought a brand new computer, I bought jaws and I started doing things the way I thought was best, I did things my own way. I did not understand that State Services for the Blind with an IPE, an individual plan for employment would have set up something of the nature to provide me the tools for me to succeed according to the plan and my goals, and once I understood that there were services as such, I then meticulously figured out what I would have to do for myself, and what they could do for me, and together we could reach the goals that we both set up. So I think part of the demystification of this is, they won't buy you everything, it's not a toy store, but they will assist you in succeeding, and those services do range from, you know, picking the right college that best suits your field, the technology that you'll need to succeed in college or in the workplace, there's so many services that are available there, you just have to make that call, like you said Serina, make that call and find out what they can do for you, and what you have to do as well. Serina: Well and that, someway just popped a thought into my head, I know that some individuals, most you know, most likely receive SSI or SSDI, some sort of Social Security benefits and it can be a little nerve-racking wondering, what if I start work and then it doesn't work out, how are my benefits impacted, there's lots of different rules related to social security and work. So I'm thinking that might be a really good idea for another future topic as well. Jeff: Absolutely, and when a person is going through vision loss it doesn't mean that they're totally educated on all the intricacies that are involved from your State Services, from your DVR, from the government, from Social Security, all these things have to be learned and dealt with and that's why talking with your counselor to learn, to educate yourself, so you can better be prepared for the opportunities that are ahead of you, and I think calling your State Services is one of the best things that a person can do, and that's why they call it a informed choice. Serina: Exactly, so many topics Jeff, we're never gonna end. [Laughter] Jeff: Hmm, that's job security huh? Serina: For sure, how insightful. [Laughter] Jeff: Speaking of something that never ends, I thought winter was the same way around here, but we got grass out back now and the trees are starting to bud, I could feel that a little apple trees with the little buds on them. Serina: That's awesome, you'll start sneezing pretty soon here. Jeff: Mm-hmm, I'm just glad I planted apple trees because I don't think they make PC trees. Serina: Ba dump bum[Imitating comedic snare drum] [trumoet sound effect] Well that concludes today's podcast, but next week we will be tackling that tough topic of disability disclosure, and the job interview. If you have questions you can email us at: Jeff: JobInsights@BlindAbilities.com. Serina: Or follow us on twitter: Jeff: at Job Insights VIP. Thank you CheeChau for your beautiful music, that's @LCheeChau on Twitter. [Music] We really hope you enjoyed this podcast, thanks for listening, and until next time bye-bye. [Music] [Multiple voices] When we share what we see through each other's eyes, we can then begin to bridge the gap between the limited expectations and realities of blind abilities. Jeff: For more podcasts with the blindness perspective check us out on the web at www.blindabilities.com, on Twitter at Blind Abilities, download our app from the app store, Blind Abilities, that is two words, or send us an email at info@blindabilities.com. Thanks for listening!

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Blind Abilities
Job Insights Extra Meet Ivan Delgado: Being Your Own Boss Is Hard Work and Worth It All (Transcript Provided)

Blind Abilities

Play Episode Listen Later Apr 25, 2018 8:34


Job Insights Extra Meet Ivan Delgado: Being Your Own Boss Is Hard Work and Worth It All (Transcript Provided) Welcome to Job Insights Extra, part of the Job Insights Podcast with Serina Gilbert and Jeff Thompson, a podcast focused on the world of employment, career pathways and gainful and meaningful employment. The Job Insights Extra podcasts are success stories, interviews and demos that enhance the experience of reaching that career you want. On this Job Insights Extra we talk to Ivan Delgado, a Business Enterprise Program Operator from Las Vegas. How he got his start into the BEP  and what being a business owner has done for him. We hope you enjoy and if you have any questions for Ivan, you can send him an email. If you are interested in becoming your own boss and want to run your own business, contact your state services, your Devision of Vocational Rehabilitation and see what opportunities they have for you.   Full Transcript Below Thank you for listening. You can follow us on Twitter @BlindAbilities On the web at www.BlindAbilities.com Send us an email Get the Free Blind Abilities App on the App Store.   Transcript   [Music] Jeff: Welcome to a job insights extra where we will be talking to business enterprise program operator Ivan Delgado. [Music] He's from Las Vegas and that's where the Blind Abilities team went to get this interview at the Randolph Sheppard Vendors of America Sagebrush convention. What is the business enterprise program? It is a operation part of the Randolph Sheppard act that allows you to own an operate your own business. Check out your State Services, your DVR, and find out more about the business enterprise program. [Music] Job Insights is a podcast that is helping you find careers and gainful employment through innovations and opportunities and you can find the Job Insights podcast on Blindabilities.com, part of the Blind Abilities network, and as part of the Job Insights podcast, we will be bringing you the job insights extra, consisting of interviews, demonstrations, and news surrounding employment, careers, and jobs, with hosts, Serina Gilbert, and myself Jeff Thompson, and you can contact us by email at jobinsights@blindabilities.com. Leave us some feedback, or suggest some topics that we cover. You can also follow us on Twitter at JobInsightsVIP. Right now, please welcome Ivan Delgado. Welcome to Blind Abilities, I'm Jeff Thompson, and I am at the Sagebrush convention in Las Vegas and I ran into a fairly new vendor here amongst the senior vendors. I'm talking to Ivan Delgado. How are you dong? Ivan: Alright man, how about yourself? Jeff: Good, good, just enjoying the convention and all of the busy lights and stuff, and noises I should say out there. Ivan: Nice city huh? Jeff: Yeah, and you're from Vegas? Ivan: Yeah man, welcome to Las Vegas, if anybody is listening, come and enjoy Vegas, we love your guy's money. [laughter] Jeff: I noticed that! [laughter] So what got you interested the business enterprise program? Ivan: So about 3 or 4 years ago man, finishing up, not finishing, taking a break from college for certain reasons, whether it was lack of assistive technology or books not being ready for me, I decided to take a break and my lady actually told me about this program. She had a few friends that have done it in California and other states, and she told me, you like to boss me around so you might as well boss people around and try to make money. Yep, a couple years later man, I have been fortunate enough to finally get my own site and I started, originally I started the program. I got my BEP license about 2 years ago. My first site opened February 1st of last year, we just had our one year anniversary, before that we had vending machines at the location I am in. We just, it took a while for the location, the actual location to open up. Jeff: Is there training involved when you first join? Ivan: Yeah, when I first joined, now it's a lot different man, but when I first joined it was pretty intense, what I think is intense man. It was, I want to say 9 months man, and don't quote me on that. Classes started in March and the first three months were strictly just books and learning bi-laws, and how to do PNL's, and marketing, it was pretty awesome man, for someone like me that, you know never had a business, don't have an idea, i was just used to working 9 to 5s. It was very helpful. We did a couple of course through Hadley, Hadley School for the Blind online. We did that and then we did a couple of ServSafe tests here, customer service exams that we had to get. I am fortunate and I could brag about it man, because again, I am blessed man, and I think I am one of the only vendors here in Nevada that does his own profit and loss statement. You have vendors that are paying 200 to 300 dollars to, for people to input simple numbers and again, thanks to those classes, thanks to those three months of actually putting in work man, and understanding PNL's, and little Bi-laws, and stuff like that is definitely helpful man. Jeff: You are your own accountant. Ivan: Yes sir, thank God man! Jeff: You gotta keep the profits up right? Ivan: Right right, that is one way of doing it man, saving money man, all you gotta know is how to work. We know how to work man, it doesn't matter if you are disabled or not man, it's ambition, as humans we hunger for that ambition man. We have it, it is just a matter of if we want it or not man, and a lot of the times we don't want it man, and that sucks, but we are our own worst enemies and our own best friends man, and only we can get what we want man. Jeff: So what suggestions would you have for someone who is interested in getting into the business enterprise program? Ivan: A lot of patience. A lot of patience, hard work. Here in Nevada the process is a little longer due to the lack of operators we have, you know we kind of have to prove ourselves and that is fair I think. But a lot of patience and , just because you're disabled doesn't mean that stuff is going to be handed to us, especially here in the business world man, we have just as much of a responsibility as anybody else. Just keep your head up and be strong. That's it, just stay positive and stuff could be worse and if we are here and you are listening to this podcast, obviously we have gotten this far and the sky is the limit after here. Jeff: So what does Sagebrush bring to you? Ivan: A lot of a lot of information. A lot of people like Mr. Jeff, sorry if, I am bad at names, I think that's your name [laughter] Jeff, but yeah, this man, that working, as a blind community we have to become close man and I'm, the best example man, I don't go out a lot and I don't network but it hasn't changed man, I don't believe in NFB's, and NCB's, and ACB's, I wish there was only one. I don't see for this separation between organizations when really we're all just one, and that's blind. We're all blind so I would love for us to stick together and become one. I think if we become one a lot of people would be aware of both our disabilities, of our business and the Randolph Sheppard Act, again if we advocate be strong, stay positive and network, go out to these kinds of meetings, kind of conferences, I think this could very well be accomplished. There is a lot of older gentleman and ladies that are in the program and it's time for younger generations to step up and I think this is the time. Jeff: There is a lot of wealth of information, they have been in it, they have seen it change, and that is the bigger thing that things have changed and now here you are paving your way, you know, you're two years in, pretty soon you'll probably be leading the show here. Ivan: Absolutely, and those are the plans man, and absolutely, we always have to be grateful to the people that have, that started this man you know, and we've gotten a long ways man, I mean from selling newspapers at Post Offices to you know, having places at Hoover Dam's or at airports, you know that's a huge accomplishment, and that couldn't have been done without the people that you know, are moving on or retiring now. And that is a huge gratitude to you guys, we thank you. Jeff: Well, Ivan Delgado thank you very much for taking your time away from the karaoke. You gonna sing out there? Ivan: No we already did man, I need two more shots, I think these last two shots were on you. [laughter] Jeff: Do you have an email? Ivan: Yeah man, that's ivan.delvilla@gmail.com. Jeff: Alright, well thank you very much for taking the time and just speaking on Blind Abilities. Ivan: Yes sir, have a good day! [Music] Jeff: So if you are interested in the business enterprise program, becoming your own business owner, entrepreneur, check it out with your division of vocational rehab, your State Services for the Blind and see what they can do for you. If you want to find out first hand from Ivan what it is like to be 2 years in, in the business enterprise program, shoot him an email, check it out. Links are in the show notes. So we hope you enjoyed this Job Insights extra, thanks for listening, and until next time, bye bye. [Music] [Multiple voices] When we share what we see through each other's eyes, we can then begin to bridge the Gap between the limited expectations and the realities of Blind Abilities. For more podcast with the blindness perspective, check us out on the web at www.blindabilities.com, on Twitter at BlindAbilities, download our app from the app store, Blind Abilities, that's two words, or send us an email at info@blindabilities.com, thanks for listening.  

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