Blog Archives

The Club PUBlication 04/22/2024

4/22/2024

Embrace AI tools to succeed in business
OUTSWIMMING THE SHARKS
HARVEY MACKAY

HARVEY MACKAY

Artificial intelligence, or AI, is a fascinating and rapidly evolving field that has the potential to revolutionize the way we live and work. Personally, I view AI as a tool that, when used wisely, can enhance our capabilities and improve our efficiency.

We are already using AI in many aspects of our daily lives, often without even realizing it. Whether it is asking Siri for directions, using Google to search for information or relying on smart home devices like Alexa to play music or set reminders, AI has become an integral part of our routine.

By 2025, about 95% of customer interactions will involve AI technology, according to an article in Forbes. It is important to remember that AI is a tool created by humans to serve humans. The goal is not to replace the human touch but to augment it. AI can handle repetitive tasks, analyze large data sets and even assist in complex problem-solving.

Artificial intelligence can automate routine tasks, thereby reducing errors. This frees up human workers to focus on more complex and creative endeavors. But AI cannot replicate the creativity, empathy and intuition that humans bring to the table.

Ginni Rometty, former CEO of IBM, said: "Some people call this artificial intelligence, but the reality is this technology will enhance us. So instead of artificial intelligence, I think we'll augment our intelligence."

With its ability to process and analyze vast amounts of data, AI can uncover insights and patterns that might be missed by humans, aiding in more informed decision-making. AI can drive product development and innovation, helping businesses stay competitive in a rapidly changing market.

AI can also provide personalized experiences for customers, from chatbots that offer instant customer service to recommendation systems that tailor content to individual preferences. The initial investment of AI technology can be significant, and not all businesses will have the resources to implement and maintain these systems effectively. However, by automating tasks, AI can help reduce labor costs and operational expenses, reducing the need for manual intervention in certain processes.

Artificial intelligence, however, can be a double-edged sword. While it offers all the benefits I listed above, it also presents certain challenges that we must navigate carefully.

Susan Sly, a two-time AI startup founder, spoke to my Roundtable group, explaining: "AI is like a toddler right now. It will grow up to be a teenager, and you know what teenagers like to do — rebel. They do what you tell them not to do."

The effect of AI on the job market will be severe. A McKinsey report suggests that 400 million to 800 million jobs worldwide could be displaced by 2030 due to automation and AI. Also, an overreliance on AI could lead to a loss of certain skills and a diminished ability to perform tasks without technological assistance. Those who embrace AI and improve their skills to complement machine capabilities will likely find themselves at an advantage.

The point is to team up with AI to multiply your own intelligence. Artificial intelligence can be your best business ally or your worst nightmare. It all depends on how you integrate it into your strategy.

Mackay's Moral: Artificial intelligence is where data meets destiny.

Harvey Mackay is a Minneapolis businessman. Contact him at 612-378- 6202 or email [email protected].

The Club PUBlication 04/22/2024

4/21/2024

What is "Global Warming" what are the causes, how will it affect us and what we can do about it!

What is Global Warming? Definition:
The long-term increase in Earth's average surface temperature, primarily driven by human activities that release greenhouse gases into the atmosphere.

Not just warming:
Global warming is a part of the broader issue of climate change, which includes other shifts in weather patterns such as precipitation, extreme events, and sea level rise.

Causes of Global Warming - Greenhouse gases:
Gases like carbon dioxide (CO2), methane, nitrous oxide, and fluorinated gases trap heat radiating from Earth, preventing it from going into space. This is known as the "greenhouse effect."

Human activities:
Burning fossil fuels (coal, oil, natural gas): This activity is the biggest contributor to greenhouse gas emissions.

Deforestation:
Trees absorb CO2. Cutting them down reduces this natural carbon sink and releases stored carbon. Industrial processes: Manufacturing of cement, chemicals, etc., releases greenhouse gases.

Agriculture:
Livestock farming produces methane, and fertilizers release nitrous oxide.

Effects of Global Warming Rising temperatures:
The obvious one! Global temperatures are already about 1 degree Celsius warmer than pre-industrial levels and the rate is accelerating.

Melting ice:
Glaciers, polar ice caps, and sea ice are melting faster than ever, leading to sea level rise.

Sea level rise:
Coastal cities and low-lying areas are threatened by inundation and erosion.

Extreme weather events:
More frequent and intense heatwaves, droughts, floods, wildfires, and storms.

Ocean acidification:
Increased CO2 absorption makes seawater more acidic, harming marine life.

Loss of biodiversity:
Climate change disrupts ecosystems, leading to species decline and extinction.

Human impacts:
Food and water insecurity, displacement due to rising seas, health risks.

What Can We Do?

Shift to renewable energy:
Solar, wind, geothermal, and other clean sources reduce fossil fuel dependence.

Energy efficiency:
Using less energy through insulation, smarter appliances, and behavior changes.

Sustainable transportation:
Electric vehicles, public transport, biking, and walking.

Protecting forests:
Stop deforestation and promote reforestation to maintain carbon sinks.

Sustainable agriculture:
Practices that reduce emissions and promote healthier soils.

Individual actions:
Making choices about diet, transportation, and energy use all contribute.

Policy change:
Pushing leaders to enact policies for large-scale energy shifts and emissions reductions.

Important Notes Scientific consensus:
The overwhelming majority of scientists agree that global warming is real, human-caused, and a serious threat.

The time to act is now:
The longer we wait, the more severe the effects and the more challenging it will be to address.

The Club PUBlication 04/15/2024

4/15/2024

NOW IS TIME TO ACT ON A CD
By LIBBY WELLS • Bankrate.com

If you are saving money, the beginning of 2024 has been good to you: The Federal Reserve hasn't cut rates yet. However, that's not going to last forever.
Experts believe the Fed will cut rates up to three times throughout the rest of the year.

If you are thinking about opening a CD, short for certificate for deposit, it's time to act now to lock in the best rate possible.

CDs are one of the lowest-risk places to park your cash. Here's a rundown of some of the reasons why opening one can be a good fit for your financial goals:

Guaranteed return.
Rates on standard CDs are fixed. Unlike the stock market, which fluctuates, CDs offer a reliable return. This makes planning and budgeting easy since you will know exactly how much you will make and when you can withdraw the funds.

Better earning potential vs. other savings accounts.
CDs may pay more than other deposit accounts, such as savings and money market accounts.

Keeping spending in check.
CDs have early withdrawal penalties, which can act as a helpful way to reduce your temptation to spend. Because you won't want to forfeit your interest earnings, you will think twice before trying to withdraw the money.

No need to pick just one.
You can create a steady income stream for yourself by laddering CDs.

Safety.
CDs at federally insured banks and credit unions are protected.
Average CD rates steadily increased as the Fed hiked rates, and they have since leveled off. While the forecast for CD rates doesn't look quite as promising, the best CDs are still paying above 5% and outpacing inflation.
Before doing anything with your money, it's smart to look ahead to your future and determine your goals. As you think about what you want to be able to do with your money, it's equally important to be prepared for a disaster.

Make sure you have enough money in your emergency fund — typically at least three to six months of living expenses. Don't put that cash in a CD, either. It's better off in a high-yield savings account that will let you access the funds at a moment's notice, not an account that can have a pricey penalty if money is withdrawn early.

CDs typically require that you invest your money for a specific amount of time, called a term. During the term, you agree not to withdraw the money.
CD terms can range from as brief as a month to as long as five years. Some banks even offer 10-year CDs.

You also should shop around as with any investment product. The national average for a one-year CD is just 1.81% APY, according to the FDIC's most recent data.

Online banks often pay better rates because they do not have the overhead of maintaining branches that traditional brick-and-mortar banks have.
Financial institutions also differ on the size of the deposit required to open a CD. Some banks, such as Ally Bank and Synchrony Bank, do not have
deposit minimums.

Many banks, though, require you to put at least $500 or $1,000 in the account. Others require $5,000 or more.

As you shop around, make sure you are doing business at a federally insured bank or credit union. At one of those institutions, your money would be protected if it fails.

The Club PUBlication 04/08/2024

4/8/2024

Eclipse, cicadas and ... army worms?
The natural world is always treating us to its wonders, as we’re about to be reminded.

FUN! AND COMMNG TO YOUR NEIGHBORHOOD SOON!

By strange coincidence, two once-in-a-generation events are about to take place in the natural world. These events are not to be missed, judging from the excited voices attending them.

The first is the total eclipse of the sun scheduled for Monday, although "scheduled" seems an inapt word to describe something whose timing was established before there were ... well, schedules. "Expected" might be a better choice, but that word suggests a degree of uncertainty that doesn't exist in orbital mechanics. "Ordained" connotes a divine mandate, as does "predestined." Put it this way: The eclipse will happen. The only question is how many North American earthlings will be able to see it. A cloudy day would ruin the experience. There will be no rain checks.

The track of totality runs hundreds of miles to our south, starting in Texas and ending up in Maine. Because this will be the last total eclipse visible in North America until 2044, people from Minnesota and other places are making plans to travel to see it. There is no way to guarantee the weather will cooperate, however. To drive such a distance, and maybe book a room in some quaint town with a fitting name — we notice that there is an Evening Shade, Ark., and what could be more perfect? — is to make a leap of faith. Good luck to the leapers.

Most of Minnesota will experiencebetween 60% and 80% of totality, which is still something to see. But don't look at it directly. To avoid damaging your eyesight, be sure to use eclipse glasses or a pinhole projector.

The other event involves less precision, in both timing and geography. Sometime this spring, two separate broods of periodical cicadas will emerge from the ground more or less in unison. One, known to scientists as Brood XIII, appears every 17 years. The other, Brood XIX, shows up every 13 years. Brood XIII is the more northern of the two, occupying territory in Illinois and parts of Iowa, Wisconsin and Indiana. Brood XIX is scattered more broadly along the Southeastern seaboard and deep South, with sightings that range into Illinois and Missouri.

And yes: Those areas overlap. Illinois, especially, is about to host a cicada convention on a massive scale. For a 13-year and a 17-year brood to emerge simultaneously, and in the same location, is an extremely rare event. And a noisy one.

Fortunately for all concerned, cicadas are harmless. The cousins we know here in Minnesota are the annual variety, known as dogday cicadas. They are here every year, and the buzzing sound they make with their abdominal membranes is a familiar soundtrack to our summer evenings.

Minnesota cicadas are active between July and September. Their emergence may not be as dramatic as that of the periodical cicadas, which have been underground for more than a decade, waiting for this moment. But Minnesota, after all, is not a dramatic place.

Our cicadas are a steady presence; they are good enough. We will get only a partial eclipse; also good enough. We have 10 electoral votes, compared to California's 54. U.S. News and World Report ranks Minnesota as the fifth best state overall, and CNBC says we're the fifth best state for businesses.

In most ways, we have room for improvement, but generally speaking, we do well enough. Could do worse.

But if you're not satisfied, and long for something to put us on the map, here is hope: We may be in for an outbreak of forest tent caterpillars, sometimes called army worms. That's just a nickname, and an inaccurate one at that, inspired by the caterpillars' habit of massing in fearsome hordes.

Most years, their presence in Minnesota is barely noticeable. But every 10 to 16 years, their numbers increase dramatically and stay that way for up to four years. They defoliate trees. They do not bite people, but they can take a lot of the fun out of picnics and create a slippery mess under the wheels of cars.

Minnesota's DNR says they should be busting out sometime between now and 2029. Should be spectacular.

The Club PUBlication 04/01/2024

4/1/2024

Strike a balance to avoid regrets
Financial planners help clients spend for today, prepare for tomorrow.
ROSS LEVIN

One of the best things about walking our dog early in the mornings is being alone with my thoughts.

On a recent morning, one of my favorite quotes by journalist Sydney Harris popped into my head: "Regret for the things we did can be tempered by time; it is regret for the things we did not do that is inconsolable."

A primary job of financial planners is to help their clients see what is possible. It is also to help them balance living today while preparing them for tomorrow. But not knowing how many tomorrows we have can create too much emphasis on an uncertain future.

How do you strike a balance to avoid regret? The answer is simple but not easy: Be conscious of the choices you are making and for whom you are making them.

One of our long-term clients is now in hospice. As we were talking, she said how grateful she was for what she and her husband did with their family and how they were not too conservative too soon with their money.

The couple never fully lived in the comparison world, so their own personal values influenced their decisions.

They did not spend much money on housing, but they lived comfortably. They chose to invest in their children's education and travel, both things that brought them joy.

They often paid for their adult children to travel with them to underscore their value around family. Although cancer will rob her of some years, she has lived her life fully.

I have worked with countless clients, and here is some wisdom I have discovered that helped them avoid regret:

They don't begrudge others for what they have.
Being genuinely happy for the happiness of others reduces the focus on what you don't have and increases the satisfaction of your own life, a surefire antidote for regret.

They don't compare their lives to those of others.
You make the choices that are important to you, not because you are measuring yourself against someone else.

They say yes more often.
Sure, you end up making some mistakes, but you also open yourself up to more fulfilling experiences. Pleasant memories expand through time, and time tempers the sour ones.

As I look back on my life, something I won't regret is my simple morning walk with our dog.

Spend your life wisely.
Ross Levin is the founder of Accredited Investors Wealth Management in Edina. He can be reached at ross@ accredited.com.