“Investing in companies that give a hooot”

7067 East Genesee Street

Fayetteville, NY 13066

315.637.5153

www.hansensadvisory.com

FALL 2012

Securities offered through Cadaret, Grant & Co., Inc. Member FINRA, SPIC ~ Hansen’s Advisory Services and Cadaret, Grant are separate entities.

How much Munch should the Munchkins have?

Can you imagine a connection between The Wizard of Oz to

banking and finance? Some have, perhaps, even L. Frank Baum, the creator of the Oz stories. The story of The Wizard of

Oz may be an allegory to the issue of the creation and circula-

tion of money. Whereas, the Scarecrow represents the farm-ers; the Tin Woodman – the industrial workers, the Lion – silver advocate William Jennings Bryan, and Dorothy – the typical all American girl. Dorothy’s march to the Emerald City to petition the Wizard was like the populist movement that urged Congress to return to a system of debt-free government-issued Greenbacks initi-ated by Abraham Lincoln.

Lincoln had found a way around bank interest and control of the currency. US notes (Greenbacks) were issued that did not have to be paid back to the banks or have interest. Green-backs were halted after Lincoln’s assassination. The bankers reasoned that printing government paper money would be highly inflationary. But the banks’ money was highly inflationary because the gold denoted to back up the printed money was used or lent many times over. It was a counter-feiting process. When bankers lent their paper money to the government, the government wound up heavily in debt for something it could have created itself. Sixteen ounces of silver was said to equal one oz of gold. Are ounces represented in The Wizard of Oz title? L. Frank

Baum was a supporter of the populist movement and marched with Bryan in 1896. The Republican message of the gold

Inside:

standard was the accepted practice of the day. In order to express a populist message, it had to be buried in symbolism as in The Wizard of Oz.

Kansas was the story of the Great Depres-sion and the dust bowl. People needed to be transported into an ‘American Dream’ such as the magical world of Oz. The house lands on the Wicked Witch of the East (Wall Street bankers and their man Grover Cleveland), who had kept the Munchkins, farmers and factory workers in bondage.

Dorothy’s magic silver slippers (silver, the solution to the money crisis) had the magic power to solve Dorothy’s dilemma of being

able to return to Kansas—just as the silver-

ites thought that expanding the money sup-ply with silver coins would solve the prob-lems facing the farmers. When Dorothy wanted to go to the Emer-ald City to seek guidance from the Wizard of Oz (the President whose strings were pulled by invisible puppeteers or financi-ers), she was told that the path to the Emer-ald City was paved with yellow brick (gold). Like The Wizard of Oz, the yellow brick road

would turn out to be an illusion. In the end, the silver slippers are what would carry Dorothy home to Kansas.

The poignancy of the debate about the bankers creating the money supply and

charging the government interest continues today in the conversation about taxes and government debt. Who should be control-ling the puppet strings? Or should the con-trol come from government of the people, by the people and for the people?

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Did You Know?

Garbage Gold

HAS News

Making a Difference

Q & A: Common financial

questions answered

by Susan Hansen.

Did You Know?

The average Smartphone owner uses a handset for just two years before tossing it

in the back of a desk drawer or, more commonly, the trash.

Garbage “Gold”— Not Just Compost Anymore When we stop at a café restaurant chain such as Starbucks to treat ourselves to a coffee and a

brownie—we may pause to consider things like organic ingredients, fair trade and ethical sourc-

ing. But someday soon we may also be asking ourselves what products are being made from

the coffee grounds and stale baked goods waste generated by such a restaurant chain. A recent report given at the 244th National Meeting of

the American Chemical Society brings us closer to such a question, with details of a new

“biorefinery” process that is in development and testing—to turn food waste into a key in-

gredient for making plastics, detergents, and other everyday products. Carol S. K. Lin, Ph.D., leads a research team at

her laboratory at the City University of Hong Kong, where they have developed a transforma-

tive process to use waste food as raw material for a sustainably sourced material that can be

used to make various products from laundry detergents to plastics to medicines. This “biorefinery” process has the potential to utilize

some of the 1.3 billion tons of food wasted in

the world each year. Her research was jump-started by the involvement of the nonprofit organization

The Climate Group and one of their members, Starbucks Hong Kong. The restaurant contributed

funding as well as their food waste to the project. They donated a portion of proceeds from their

“Care for Our Planet” cookies gift set. The Hong Kong Starbucks alone produces almost 5,000 tons of used grounds and unconsumed waste

bakery items every year. Currently, this waste is incinerated, composted or sent to landfills. Lin’s

process could not only convert this waste to prod-ucts, thereby removing it from landfills, but also

will reduce pollutants entering the atmosphere by burning waste. Biorefining does produce carbon dioxide, but it is reused during the process. Lin

points out this new method may also have great impact in future plans for development and use of

bio-fuels. Where growing corn and other food crops for bio-fuel has raised concerns that it’s not a

truly sustainable solution because it’s likely to bring higher food prices and shortages—using waste food instead offers an attractive alternative.

Here’s how the biorefinery process works: baked

It doesn't have to be that way. In the past year or so, a number of "recommerce" sites have ap-

peared that will pay you cash for your old hard-

ware. These sites—among them Usell, Gazelle,

YouRenew, CellItUsed, BuyMyTronics, and

Totem—allow people an easy and secure way to

connect with buyers in an age when eBay and Amazon have become dominated by profes-

sional power sellers, leaving the common con-sumer with little chance to sell his or her used

tech gear.

The sites will do more than take used smart-

phones off your hands—most will also buy tab-

let computers, laptops and the like. They're built on a model that makes it simple for a seller to list a device and receive the highest price possi-

ble in exchange for it. It works like this: A seller

visits a recommerce site like Usell.com, answers a few questions about the condition of the device

and then searches a network of buyers. Based on the condition of the phone, buyers will make bids

in rapid succession (some have already pre-arranged for price thresholds based on a phone's

model and condition), and, depending on the site, sellers have the option to choose which buyer they'll sell to, based on price offer and rating.

The seller is then sent a pre-addressed package with which to mail your electronic gear. The buyer

notifies the seller when it's received, and once it's been inspected, the online buyer issues payment

through check or Paypal. That buyer wipes the data, refurbishes it and puts it back in the circula-tion by selling it to a prepaid cellular company or

warranty company.

HAS News goods are blended with a mixture of fungi which ex-

crete enzymes that break the carbohydrates in the food down to simple sugars. This then goes into a fer-

menter, a vat allowing bacteria to convert the sugars into succinic acid. Succinic acid is a top ingredient on

a U.S. Department of Energy list of 12 key materials that can be used to make highly valuable products, such as laundry detergents, plastics, and medicines.

Lin has not only used this method for bakery wastes, but has successfully taken food wastes from her uni-

versity’s cafeteria and turned them into useful sub-stances.

Lin says the technology could become commercially viable on a much larger scale with additional funding

from investors—meanwhile, the next step is for Lin’s

team to scale up the process using special Hong Kong Government funding as well as using other funding to

test a pilot-scale plant in Germany. For more about this and links to related stories, go to http://

www.sciencedaily.com/releases/2012/08/120820093751.htm

We have recently taken the steps to be recognized by OCCRA (Onondaga county

Resource Recovery Agency) as a Blue Rib-bon Recyler. This means we practice out-

standing recycling and waste reduction proce-dures in our workplace operations. Also, we

have pledged to being a better business and community member through green-core-company.org. We are initiating an extensive

review of our environmental and social poli-cies. In other words, we strive to improve so-

cial standards by increasing equity for all, improving stewardship and health of our

natural world and acting as role model for

social and environmental justice. In addition to occasional TV appearances

on Channel 3’s Monday night Financial 411,

Sue has been part of the panel on the local

PBS Financial Fitness show this year.

Continued from pg. 2

There is currently over $3 trillion in assets in-vested in Socially Responsible Investments

(SRI). This represents 12% of the funds currently being professionally managed. Funds are flowing

into SRI investments at a higher rate than into

conventional investments. By choosing socially responsible investments you are helping to

change corporate culture.

Companies do not want to miss opportunities to attract more investment and goodwill. They

are paying attention to the criteria that socially responsible investors use to screen for acceptable

investments. Close to 80% of companies now

issue sustainability reports. The Dow Jones Sus-tainability Index recently added 41 new compa-

nies to its updated list. Although, unfortunately,

41 companies were deleted, we’re seeing more that are paying attention to their environmental,

social and governance factors. The Coca Cola Company recently started a

program to empower young women entrepre-

neurs in developing countries. Visa has launched a financial inclusion program that brings finan-

cial services to underserved populations by part-nering with local governments and non-

profits. Even Wal-mart launched a very aggres-sive sustainability program.

I’m sure you have noticed more and more

products and packaging that are trying to be en-vironmentally friendly. When we choose to pur-

chase products that are better for the environ-

ment or are made by a company that pays atten-tion to corporate social responsibility, we send a

signal of support. More companies will choose to produce environmentally friendly products or

be recognized for their corporate social responsi-

bility if that is what consumers want. The same is true of where you direct your in-

vestment dollars. As more people utilize socially

responsible investing, companies will continue to see the signal of support. They will realize that

they have to change their ways or they will not be included in those investment categories. We

are seeing increasing examples of companies

changing for the better. Your investment choices matter- keep up the good work!

I always wondered why somebody doesn't do something about that. Then I realized I was somebody. ~Lily Tomlin

Making a Difference

Q & A: Common financial questions answered by Susan Hansen

Hansen’s Advisory Services, Inc. 7067 East Genesee Street Fayetteville, NY 13066 www.hansensadvisory.com

How do I move a retirement account from a previous employer to an IRA?

The process involves setting up an IRA if you

do not have one. We can help you decide what company’s investments would be best for you to direct this rollover. You then complete the pa-

perwork to establish the account. The company to which you are moving the retirement account

has transfer paperwork that asks the company in which your account is presently held to send the

money to your newly established IRA account. It may not always be that simple. The com-

pany holding the existing retirement assets or

the previous employer may have their own forms they require you to complete. You will

need to provide us with those forms so they can be sent to the new IRA company and/or be sent

to your employer. If you have an existing IRA,

the first part of the process of establishing an IRA is not necessary.

If I inherit an IRA, can I move those invest-

ments to my existing IRA?

No, if you are not a spouse (recognized by

the federal government). Then you have to complete paperwork that sets up an inherited

IRA with the deceased person’s name as part of the account title. This is a separate ac-

count from your personal IRA and has dif-ferent rules than a personal IRA. If you are

not a spouse, you usually have to take distri-

butions from the IRA before you reach age 70 1/2. If you are a spouse, you may move

the IRA to your own IRA and follow the regular IRA rules of taking distributions

once you reach 70 1/2.

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