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A December to Remember

Financial Planning Dentist
You may have heard some of these eye catching sales promotions where a guy buys a new car and puts a giant bow on it to surprise his wife. First, under no circumstances should you buy a $50k car without the verbal and emotional consent of your spouse. Second, you should immediately review the glossary of basic sales techniques these commercials employ: 
  • 0% APR for the first 12 months
  • Only $2,999 down and $399 a month
  • Free charging for one year on new Tesla Model 3 or Model Y if you buy before the year’s end!
  • Financing for as low as $50 a month for 24 months
  • Enroll in our Rewards Program with our Credit Card and save $200 today on qualified purchases
It’s the “buy now, pay later” sales technique that’s been working for decades. Since we live in a consumer world, large corporations know how to make us purchase goods and services we don’t need and can’t afford with creative financing options. If you’re guilty of falling for it, don’t worry we’ve all been there or at least been very tempted by it. Here’s how to not fall victim to sales promotions that seem like a great deal.  Point of sale finance or lending is a way to appeal to all consumers. Those that know what they want now, those that are on the fence, those who didn’t even know they “wanted or needed” something, and those that like flexibility and options instead of traditional purchasing options.  For Dental Practices, offering third party financing for elective procedures or even non-elective expensive procedures where insurance only covers a portion, is what we’ve typically seen from Point of Sale (POS) financing. But now that big banks offer credit cards that are globally accepted pretty much everywhere instead of private label (like a Best Buy) credit card, we’re seeing it pop up pretty much everywhere. For example, I was asked to either pay for or finance a $499 TV? It’s called instant financing. No approval needed. So why are retailers doing this and why should you care? Let’s say you’re looking like I was to buy a new T.V. You go into the store and you were planning on spending no more than $500. You’ve been saving and your old TVs is really small and outdated so it’s time for an upgrade. You go in and you start seeing huge TVs with big red sales signs! Your eyes light up as you go right to the TVs you can afford. You somehow aren’t nearly as excited because guess what? Right next to your $499 TV there is a huge 75 inch brand new 4k, ultrathin, curved TV for $899! The sales representative approaches, you dodge him like he’s trying to sell you girl scout cookies when you just started a diet.  Ten minutes go by and you are suddenly underwhelmed with a lack of excitement due to your 55inch TV that is in your budget being all of a sudden so small and boring. You go back to the huge TV that’s seemed to get louder and brighter. Planet Earth is playing some beautiful scene and you cannot get your mind off of it. All of a sudden the sales representative comes back and somehow this time you’re suddenly almost ready to give up on your “diet”, or budget, as this just looks too good right now. The representative asks you what you’re looking for and before you know it you’re dreaming about this 75in TV being in your family room. He then says what are you looking to spend? You softly say around $500. The representative says well if you buy this TV you’d be saving $300 as there is a big sale right now and on top of that if you sign up for the store’s credit card you’ll get 10% back for future in store purchases. They then tell you that you can finance it at just $30 a month for 30 months.  All of a sudden, you’re sold. $40 a month for 30 months is nothing! But you think to yourself well I need a sound bar if you get this huge TV because the representative just told you that if you buy this TV you get $100 off a new sound bar. He turns up the soundbar and you’re immediately sold. You grab your cart, load the TV and the sound bar and go to the checkout. They offer you the credit card and you say no as if you’ve just saved yourself from a bad decision and then the little cashier machine says $1,185. You then tell the cashier that you’re doing the finance deal and they tell you how great of a deal it is and you feel a little bit better about what you know is a bad decision. Let’s recap. You had a $500 budget and you spent nearly $1,200 in the blink of an eye. This is POS financing at it’s best. You increased your budget 2.5x by just walking into the store but this happens whether you’re online or in person unfortunately.  Now, on top of your new TV you have your mortgage, Netflix, utilities, new furniture, financed computer, car, new coffee machine and all of a sudden your monthly income is being withered away quickly. Well if we look back into our Savings 101, what is rule #1? Income – Savings = Expenses. What are you doing? Income – Expenses = Savings. Now unfortunately, instead of saving $250 a month you’re saving $210 a month. What did we learn in investing 101? The difference of $50 a month can mean hundreds of thousands of dollars later in life.  Don’t let convenience or monthly costs drive your financial decisions. Make saving your priority and what is left is your disposable income. Understand what is truly valuable and what you need vs. what the store/ media makes you think you want.  Guess what? If you think you’re beating the system because something has 0% interest, think again. Companies aren’t in business to lose money, they’ve baked the interest they would’ve received into the cost of your new purchase.  The newest marketing techniques are there to make you spend more. You’re much more likely to spend more when there is a “deal” and you can finance it. So before you make your next purchase think about whether you want it or the store wants you to want it. Also, using a credit card to finance is easy but is a slippery slope that most people don’t get out of. Short term thinking creates long term pain. 

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Artificial Intelligence (AI) has become an indispensable part of our lives, driving advancements in various fields such as healthcare, finance, and transportation. At the heart of this technological revolution lie AI chips, which are the engines powering AI systems. As AI continues to evolve, the demand for more powerful and efficient AI chips is rapidly increasing. In this blog post, we will explore the current leaders in the AI chip space, examine the limitations of existing semiconductor technologies, and discuss where innovation needs to come from for the next chapter of AI chip development. Current Leaders in the AI Chip Space: Several companies have emerged as leaders in the AI chip space, each offering unique solutions to meet the growing demands of AI applications. Here are some notable examples: NVIDIA: NVIDIA has been at the forefront of AI chip development with their Graphics Processing Units (GPUs). GPUs excel at parallel processing, making them well-suited for AI workloads. NVIDIA’s GPUs, such as the Tesla V100 and A100, have become the industry standard for training deep neural networks. Intel: Intel has made significant strides in AI chip development with its Intel Xeon processors and Field Programmable Gate Arrays (FPGAs). Their processors combine high-performance computing capabilities with AI acceleration features, while FPGAs offer flexible and customizable solutions for AI tasks. Google DeepMind: Google has developed its own AI-specific chip called the Tensor Processing Unit (TPU). TPUs are designed to accelerate both training and inference tasks and have been deployed in Google data centers to power various AI applications, including natural language processing and image recognition. Limitations of Current Semiconductor Technologies: While the current leaders have made remarkable advancements, there are several limitations associated with existing semiconductor technologies that hinder further progress in AI chip development: Power Consumption: AI workloads demand substantial computational power, which often leads to increased power consumption. The energy requirements of AI chips can limit their deployment in resource-constrained environments or mobile devices, where power efficiency is crucial. Memory Bandwidth: AI algorithms heavily rely on large amounts of data, necessitating high memory bandwidth. Current memory technologies face challenges in providing sufficient bandwidth to keep up with the processing requirements of advanced AI models. Latency and Real-Time Processing: Certain AI applications, such as autonomous vehicles and robotics, require real-time processing capabilities. The latency introduced by data movement between memory and processing units can impede the performance and responsiveness of such systems. The Next Chapter of Innovation: To overcome the limitations of current semiconductor technologies and unlock the next chapter of AI chip development, innovation needs to come from multiple fronts: Material Science and Chip Design: Advancements in material science can lead to the development of new materials that offer improved performance, power efficiency, and thermal management. Additionally, innovative chip designs that are optimized for AI workloads, such as neuromorphic architectures or specialized accelerators, can further enhance AI chip capabilities. Memory Technologies: Innovations in memory technologies, such as high-bandwidth memory (HBM) and non-volatile memory, can address the memory bandwidth challenge. These technologies have the potential to offer faster access to data and enable more efficient AI computations. Quantum Computing: Quantum computing holds promise for solving complex AI problems by leveraging quantum algorithms and principles. While still in its early stages, advancements in quantum computing could potentially revolutionize AI chip architectures and significantly enhance their processing capabilities. Neuromorphic Computing: Inspired by the human brain, neuromorphic computing aims to create chips that can process information in a manner similar to how the brain works. This approach can lead to energy-efficient and highly parallel AI chips that mimic the brain’s neural networks. The future of AI chip development lies in overcoming the limitations of current semiconductor technologies. By focusing on material science, chip design, memory technologies, quantum computing, and neuromorphic computing, researchers and engineers can usher in the next chapter of AI chip innovation. The convergence of these advancements will pave the way for more powerful, efficient, and versatile AI chips, enabling new possibilities and applications across various industries.

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Cryptocurrency trading and investing offer speculative opportunities for wealth accumulation, but they also come with inherent risks. To navigate this volatile landscape successfully, it is crucial to implement robust risk management practices. In this blog post, we will delve into the best risk management practices in crypto trading and investing, including due diligence on housing your crypto and wallets, legal considerations, country party risks, and tax planning and mitigation expectations. Due Diligence on Housing Your Crypto and Wallets Choose Secure Wallets: Ensure you store your cryptocurrencies in secure wallets, such as hardware wallets or reputable software wallets. Research the features, security measures, and user reviews of different wallet options to find the most reliable and suitable solution for your needs. Implement Strong Security Measures: Protect your wallets and crypto assets by utilizing two-factor authentication (2FA), complex passwords, and encryption. 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Seek Professional Advice: If you are unsure about the legal aspects of crypto trading or the tax implications, consult with a qualified legal professional or tax advisor specializing in cryptocurrencies. Counterparty Risks Research Exchanges and Platforms: When engaging in crypto trading, carefully research and choose reputable exchanges and platforms. Look for exchanges with a proven track record, strong security measures, and transparent operations. Consider factors such as liquidity, user reviews, and the exchange’s history of handling security breaches or hacks. Understand Custodial Risks: If you choose to hold your cryptocurrencies on exchanges or with custodial services, be aware of the counterparty risks involved. In such cases, you are relying on the exchange or custodian to safeguard your assets. Assess their security protocols, insurance coverage, and measures for protecting against theft or loss. 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Maintain Compliance and Documentation: Adhere to all applicable regulations, including registration, reporting, and tax obligations. Keep accurate records of your crypto transactions, trades, and investments. Maintain detailed documentation of your compliance efforts, as this will be valuable in demonstrating your commitment to regulatory compliance. Plan for Adaptability: Understand that the regulatory landscape is subject to change. Develop a flexible and adaptable trading strategy that can accommodate potential regulatory shifts. Stay proactive in assessing the impact of regulatory changes on your trading practices, risk management strategies, and tax planning. Regularly review and update your approach to ensure ongoing compliance.   To succeed in crypto trading and investing, effective risk management practices are paramount. Conduct due diligence on securing your crypto and wallets, stay informed

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A Self-Directed IRA (SDIRA) is very similar to a traditional IRA but gives you more ways to diversify your investments and retirement savings and can include using Private Placements. The SDIRA gives you greater control and flexibility by investing in things you know and believe in by widening your investment selections into your areas of interest or expertise.  Unlike your typical bank or brokerage account, you’re not limited to where you invest. The SDIRA gives you the ability to find alternative investments like real estate, private companies, start-ups, LLCs, LPs, etc.  At InSight, we partner with the Entrust Group to help administer the accounts, and empower our clients to invest in the things they’re passionate about to help them achieve their goals. Entrust shares our core beliefs that client’s should be able to find new ways to increase their potential for growth, protect their net worth against economic fluctuations through diversification, take more control, and grow their savings and retirement in tax advantaged accounts.  Being in Colorado, we’re surrounded by entrepreneurial leaders from technology to pharmaceuticals and we want our clients to get invested in those companies if they desire. Through Private Placements, our clients can invest in privately-held companies. Since a lot of those companies have a hard time getting the funding required to reach their goals, you could be the one that gets them the additional funding they need which spurs the company to new heights. Whether it’s LLCs, C-Corps, Private stock, Partnerships, Private Placements, business, or notes you can invest in almost anything. Private Placements allows companies to raise money by selling stocks, bonds, or other instruments. Some but not all offerings are exempt from federal securities registration requirements, meaning they may or may not have to comply with registration requirements of a public securities offering (meaning more risk if they don’t and less transparency).  It is extremely important that you make sure of a couple of key items before making this type of investment.  Before any investment do your due diligence. This can mean your own research, hiring someone to do a valuation, or a combination of both.  Understand your own liquidity needs and the liquidity of any investment prior to investing. Some investments in private placements require holding periods of 5-10 years so if you need or may need that money before or during that period then investing that money in that strategy isn’t for you. If you’re retired, you need to take RMDs. If you don’t have available funds the penalties for not taking it are extremely high You may be responsible for taxes in your IRA depending on if earnings are paid out or not LLCs can be considered securities and may be required to meet the standards of security offerings In order to make an investment like a Private Placement, you must be an accredited investor. Meaning, your net worth (excluding your primary residence) must exceed 1 million or you have to have income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year.  Risks of Private Placements even after doing your due diligence and research include: They’re not reviewed by regulators at the state or federal level and therefore have become a haven for fraud. They’re now the most frequent source of enforcement cases conducted by state securities regulators in North America.  Background checks of sellers, officers, or managers may not have been conducted  Generally speaking, they’re illiquid, and investors may have to hold their investments indefinitely Investors are usually provided minimal disclosure information than a public offering, meaning investors know much less about the investment itself and the people running the show The value of the asset may be provided by a qualified third party, but they must provide sufficient supporting documentation with the Fair Market Valuation Form. FMV Form How to protect your investment: Surround yourself with people to help you, processes to research and understand the investment, and policies to hold you accountable Don’t complete an agreement or questionnaire unless you fully understand it Hire a 3rd party professional to review the document and investment If you’re asked to falsify information, walk away If your gut is telling you no because of a lack of clarity you should probably trust it Invest in what you know Request as much information as you can and ask every question you want

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