Second only to the Word of GOD, your most valuable asset…is TIME. How effectively you manage your time, will greatly impact your personal and business success. How you spend the most productive hours in your day managing the resources available to you, will determine (to a great degree), whether or not you will successfully accomplish your goals and objectives. Success requires THREE critical components:
FIRST – You Need a Strategic & Tactical “Process”:
To Define – the Specific Objectives You Want to Achieve.
To Strategically Identify, Plan and List – all goals, ensuring they align with your stated objectives.
To Tactically Identify, Prioritize, and Assign – all tasks related to each goal.
To Daily Monitor the Progress – of each stated goal, objective, and task; then make any necessary adjustments needed to move forward and ensure success.
To Time-block Your Schedule – to ensure ALL tasks are completed related to each goal and objective.
SECOND – You Need a Strategic & Tactical “Solution”:
That Unites – the forementioned strategic and tactical attributes listed above.
That Applies – “Best Practices” processes and procedures.
That is Independent – of your organizations’ operating software platforms.
That Generates a High ROI – on your Business Management & Growth solution, year-after-year.
That Provides You with Peace-of-Mind – knowing that you have established and implemented a customized Business Management & Growth solution tailored for you and your organization.
THIRD – The Solution You Need is Called “TAP”:
TAP– is a Tactical Action Plan designed to meet all the forementioned requirements listed above to help you strategically and tactically manage and grow your business.
TAP– Is NOT a matter management nor a time & billing system…far from it. (These are merely components of your business operations.)
TAP– Is an independent, powerful, and high-level, business planning and execution platform.
TAP– Combines strategic planning and tactical implementation to help you successfully plan, manage, and grow your law practice or any business like a seasoned CEO.
TAP – Provides the high-level solution needed to effectively streamline, plan, document, and execute all your business objectives…all in one powerful solution.
TAP Applies “Best Practices” processes & procedures to deliver a business solution with a high R.O.I. year after year.
TAP helps you succeed, while providing you with peace-of-mind in the process…
Time is our most valuable and limited asset. Don’t waste any of this precious asset. Be purposeful, disciplined, strategic, and tactical with your time, in both your personal and business life. Get started today by clicking the link below to schedule a free/complimentary/no-sales pressure TAP Demo:
GMS BUSINESS CONSULTING, INC.– Provides lawyers/law firms, for-profit & non-profit organizations, and business professionals with Value-Accounting Services, Business Management & Development Services (utilizing our TAPSolution), Business Optimization Services, and Digital Marketing Services. We help business professionals strategically manage and tactically grow their businesses with a high return on investment and peace of mind. (We do NOT provide investment advice.) Contact Us If you would like to learn more about our services, especially TAP (our high-level Tactical Action Plan Solution), designed to help you strategically and tactically optimize your business. We welcome the opportunity to speak with you.
Today’s post is titled “Perspectives on Artificial Intelligence (AI).” This is a follow-up from our previous post commenting on “Practice Performance Indicators,” written and published in Clio‘s in their Legal Trends Report. Today’s post will highlight some information from Clio’s publication, but we’ll also share with you a few of our own perspectives that we hope will be helpful to you in your A.I. planning and integration.
Nearly 79% of legal professionals have adopted AI in some way.
Clio found that nearly three-quarters (75%) of law firms’ hourly work could be potentially automated by AI, which stands to have a dramatic impact on firm revenues.
Lawyers – 57%
Paralegals – 69%
Administrative Assistants – 81%
In 2023, Goldman Sachs published a study saying that 44% of work tasks performed in the legal industry could be automated by AI, and AI could potentially replace 40% of legal industry employees.
Automation Potential – If a task typically takes 10 hours to complete and has AI automation potential of 50%, a law firm could expect that same task to account for only five hours of billable time.
The American Bar Association’s Formal Opinion 512 on generative artificial intelligence tools states that lawyers may only charge for theactual time spent on tasks (even if AI allows them to perform these tasks faster).” (pg. 21 of the document). So… while some AI efficiencies may result in quicker completion times, however, these efficiencies may not result in higher engagement revenue and profitability; especially if your billing model is hourly based.
THE OPPORTUNITIES:
AI INTEGRATION – From our perspective, we see most early adoptions of AI integration will come from operating software platforms currently being used by lawyers and law firms, or new and improved systems coming online soon.
OPPORTUNITIES FOR AI INTEGRATION – The opportunities are obvious…including Automation and Standardization, Data Analytics and Financial Modeling, as well as Legal and Market Research. All of these integrations should result in streamlining efficiencies in project turnaround and output, resulting in increased profit margins. (There’s a flip-side to this though, and we’ll address this below.)
Automation and Standardization – AI is already being used to standardize and streamline many areas of work-flow production (See areas of application in the Clio’s Report).
Data Analytics& Modeling – AI can dramatically save time with data intensive projects, in terms of speed, analytical accuracy, project efficiencies and turnaround, and overall profitability. Streamlining and standardizing employee time allocation with data intensive projects can enable rapid scenario projections to evaluate. This can result in significant overall project efficiencies and value; so long as the data being used is clean and reliable, and that the algorithms used in the AI modeling are pin-point accurate in their design application.
Market and Legal Research – AI already significantly reduces initial hourly costs associated with both these tasks. AI research can pull from numerous sources in fractions of seconds, with detailed descriptions, far outpacing any Google search could ever produce. While Google queries push titles results with thumbnail descriptions, AI not only sites the sources relevant to your query, but actually summarizes and details each referenced content relevant to the query presented. This can save many HOURS of research investigation time versus what a Google query provides. This is the power AI research can deliver. THAT SAID, the AI sources and the integrity of their content must be verified and evaluated for biases, relevance, and accuracy. Many sources we have personally encountered in our own research queries resulted in some biases, as the AI models are programmed by human beings. So, be careful to phrase your queries precisely to better focus the AI deliverables, then verify the results presented.
Speed of Workflow and Deliverables – These AI efficiencies should enable lawyers/law firms to leverage their time and resources to streamline project completions, and free up more time to take on additional clients OR reduce employee workloads (hours spent at the office physically or remotely) and costs. This all sounds great, but AT WHAT COST?
AI integration may improve many efficiencies; however, these efficiencies may also result in reduced revenue “if” your practice is hourly based, and “if” you don’t increase the number of clientele to offset the streamlined efficiencies that result in reduced billings.
AI Integration may potentially reduce staffing expenses, but once again, at what cost? How much do your staffers directly and indirectly support you and your clients’ needs that are essential, yet not billable? Who or how will you manage the practice support needs if you’re laying off staffers? If you think you can load more work onto your existing staff who are likely at their maximum workload, you may want to reevaluate each of these factors. Staffing refinements will need to be strategically and tactically evaluated and adjusted accordingly to minimize the unforeseen negative human capital consequences versus perceived AI integration efficiencies.
PERSPECTIVES:
A KEY STATISTICAL POINT:
We believe the first statistical point listed above, sums-up a VERY important point that we believe you should play close attention to…the point being: “We found that nearly three-quarters (75%) of law firms’ hourly work could be potentially automated by AI, which stands to have a dramatic impact on firm revenues.” (All billing models will be effected…but to different degrees.)
HOW AI CAN POSSIBLY IMPACT YOUR REVENUES:
AI automation can ultimately result in spending less time on a case tasks (cost savings), right? However, this may also result in the firm having LESS billable hours.
As stated in the above section: “the American Bar Association’s Formal Opinion 512 on generative artificial intelligence tools states that lawyers may only charge for theactual time spent on tasks (even if AI allows them to perform these tasks faster). So, depending on your billing model, revenues can be impacted significantly.
WHAT ARE YOUR OPTIONS:
FIRST – You can make a “Quality of Life” decision to implement AI in strategic operating components of your practice to increase workflow efficiencies (that will reduce hourly work demands and costs), resulting in working less hours per day/week/and month in a year. Doing so could result in a reduced hourly workload that “may” result in a higher quality professional and personal life. However, this is dependent on one’s professional and personal financial goals and objectives, AND so long as those goals DON’T CONFLICT with the Firm’s goals and objectives for you as an employee!
SECOND – In order to maintain your current profitability using AI, and to position yourself for future revenue growth (personal/firm revenue growth), you’ll have to make a choice:
Either take onadditional clients, which would require additional resources such as business development, matter management support, and additional human capital in order to continue producing high quality deliverables (that client’s would expect), in a timely, efficient, and cost-effective manner. Or…
Raise your chargeable fees to recoup lost hourly billings resulting from AI Automation (which may or may not be possible), if your competition is substantial and clients are willing to pay you higher fees. REMEMBER…”Cost is an issue in the absence of value.” Or lastly…
Modify your billing model (if possible) to a “Value-Based” model, “Fixed-Fee” model or a hybrid thereof. This may not be as easy nor as predictable to do, depending on your line of practice, and the complexities of your client matters. That said, each practice line will need to evaluate these factors carefully as they consider the depth and breadth of implementing AI into their practice.
CONCLUSION:
AI is here to stay, and improvements will be made, but it is not perfected yet! However, we should all keep in mind a broader perspective on AI and its application. We need to assess the value and risks AI implementation can have on both a personal and professional level. AI is a relatively new technology with many great possibilities, but don’t make the mistake of jumping on the technological bandwagon by making quick implementation decisions. At GMS Business Consulting, Inc., we always recommend to strategically plan and tactically identify the areas of your practice that can significantly benefit from immediate implementation. At the same time, you must evaluate the potential risks and rewards to your practice, your client service and deliverables, and the overall benefits to your firm. Administrative areas of your practice needing streamlining may be a good starting point. But take it one step at a time, and measure each AI implementation’s impact, both positive and negative.
Understand that AI incorporates mathematical algorithms that are designed by human beings. Humans have natural biases that may impact AI results. You need to always evaluate and measure the AI deliverables. Trusting is not enough…you MUST verify that the results are objectively produced and without biases. This is particularly important while utilizing AI in ANY type of research being conducted. While testing AI output, our experience has regularly identified biased production of research data results and programming output depending on how we wrote or defined our requests, AND depending on the sources the AI model pulled from versus other sources we identified on our own research.
As mentioned earlier, AI can also be fantastic at performing data analytics and financial modeling. However, keep in mind using AI in these tasks should be highly scrutinized, as the results AI presents should be accurate and unbiased. This can only happen if you’re assured that you’re using reliable, scrubbed, and clean data. If you put bad data in, you’ll get bad data back. Again, good results will be dependent on the accuracy of your queries, and the relevant accuracy of the sources of the data used or pulled from.
Lastly, we believe the more we rely on AI to perform our work, the lazier we may become in using our own cognitive thinking and reasoning skills. At this point in time, and until further testing is made, we would rather err on the side of thoughtful consideration of AI implementation and by using our own intellect, education, and experience rather than being conditioned by public opinion that may nudge us blindly and lazily to follow the newest breed of technology. We always recommend to strategically plan and tactically execute ALL AI considerations and implementation on a methodical and systematic basis to evaluate each components potential of effectiveness. We recommend proceeding forward when considering AI implementation, but do so in a cautious and measured process of evaluation. Don’t get caught up prematurely in the hype. We hope this post gives you pause for thoughtful consideration.
GMS BUSINESS CONSULTING, INC.– Provides lawyers/law firms, for-profit & non-profit organizations, and business professionals with Value-Accounting Services, Business Management & Development Services (utilizing our TAPSolution), Business Optimization Services, and Digital Marketing Services. We help business professionals strategically manage and tactically grow their businesses with a high return on investment and peace of mind. (We do NOT provide investment advice.) Contact Us If you would like to learn more about our services, especially TAP, our high-level Tactical Action Plan Solution, designed to help you strategically and tactically optimize your business. We welcome the opportunity to speak with you.
Hello everyone, today’s post centers on a Practice Performance Indicators (PPI’s) that we believe, reveals significant portions of the overall financial health for both large and small law firms. At GMS Business Consulting, Inc. we constantly monitor and evaluate specific PPI’s on an a regular basis to measure our client’s adherence to their TAP (Tactical Action Plan) and their profitability objectives. We recently reviewed a Legal Trends Report produced by Clio (the legal industry software platform focused on Matter Management and Time & Billings).
While this report predominantly focuses a majority of its attention on AI’s adoption and utilization within law firm operations (which we’ll address in our next post), one section in particular caught our attention. This section is located on Page 63 of the report, titled “Key Performance Indicators.” These same indicators are among the same ones we track within our TAP solution for our clients. See the chart below, and click the image to go to the Clio Report:
Three Performance Indicators
These three specific indicators are identified as the “Utilization Rate“, “Realization Rate“, and the “Collection Rate“, and are expressed as a percentage of an 8-hour workday. These indicators breakdown the hourly revenue efficiencies or inefficiencies for each individual lawyer and for the law firm as a whole, to measure their overall earnings performance, effectiveness, and financial health. Project these numbers over a weekly, monthly, and annual basis without addressing the issues behind the numbers can be destructive to your practice line and to the firm. The results that Clio published, are very consistent with our experience over the years working with law firms. The question for the lawyers reading this post is, “Do these numbers reflective my situation?“
How We Can Help
The good news is.. that each of these three indicators can be corrected. If your chargeability Utilization, Realization or Collection rates are below 90%, then we can help you with our TAP solution. This situation is VERY common in the legal industry. However, it can be fixed if properly addressed, monitored, and evaluated with the appropriate tools and coaching. We can provide that support…
If your chargeability Utilization, Realization or Collection rates are at the 90% or above threshold, we commend you! That said, even if all three indicator rates are above 90%, we are still very confident there are other areas within your law practice that can be optimized to improve your effectiveness, efficiency, and profitability through our TAP solution. Click HERE to learn more about our TAP solution…
We hope you find this post to be thought provoking, insightful, and helpful to you and your law practice. Contact Us if we can be of service or if you simply have any questions. We wish you a very happy, healthy, and prosperous New Year.
About Us
GMS BUSINESS CONSULTING, INC.– Provides lawyers/law firms, for-profit & non-profit organizations, and business professionals with Value-Accounting Services, Business Management & Development Services (utilizing our TAPSolution), Business Optimization Services, and Digital Marketing Services. We help business professionals strategically manage and tactically grow their businesses with a high return on investment and do so with peace of mind. (We do NOT provide investment advice.) Contact Us if you would like to learn more about our services, especially TAP, our high-level Tactical Action Plan Solution, designed to help you strategically and tactically optimize your business. We would welcome the opportunity to speak with you.
Hello Everyone, we wanted to share a perspective with you on the Russian-Ukrainian war. Most of us have heard the widely accepted narrative on this war from the mainstream media and global government leaders for the past few months. We know Putin invaded the Ukraine, that’s a fact…but why? Is it that Putin wants to expand across eastern Europe and regain the former U.S.S.R.’s geographic boundaries? Or could it be that he simply wants to protect Russia’s borders? What’s the truth behind this?
As we all know (or at least we should all know), there are always two sides to every story. The two sides may not be equal, non the less, there are still two sides. In either case, we believe we have only heard one side. More and more, we are seeing and hearing global narratives that are shaping the thoughts, minds, perspectives, and policies of the world. Usually, it’s the people who suffer for the poor leadership of government leaders. So this begs the question…Is the current narrative “truth”? That’s what we at GMS and our readers and clients are always in search of…truth. We certainly don’t claim to know all the answers on various topics, but we do pride ourselves on considering alternative viewpoints and take them into consideration before arriving at a conclusion on any topic of importance. Thus, we are always willing to consider alternate perspectives especially when they deviate from the common, agreed upon narrative. Before we go further, please understand this point: Let us (GMS) state emphatically, that we are NOT supporters of either Putin nor Zelensky or war. War is brutal, ugly, and costly in all respects. We also believe in most cases, war can be avoided with strong, competent diplomacy backed by decisive, strategic and tactical military action (only if absolutely necessary). Unfortunately, we haven’t witnessed any competent level of diplomacy for many decades.
So let me ask you a question…Are you searching for “truth” or simply seeking information to back your personal conviction or inclination regarding the war in the Ukraine? So, we challenge you to open your mind to alternative sources and positions that may differ from what current government officials and the mainstream media are propagating. It’s a tough soul-searching question that all of us need to ask ourselves regarding any important issue. All we’re encouraging our readers to do, is to watch the following interviews and discussions below, then give some critical thought as to their informational content and perspective they present. Then, weigh it against what you have been hearing or listening to over the past year:
That said…we too (like many of you) are becoming increasingly skeptical of what global governments are presenting as “truth” on many topics of importance. This is especially true when they speak on a unified basis without transparency of open discussion and debate, rather, opting for censorship or cancelling any person opposed to their narrative. This became especially heightened to us when the mainstream media echoed the same message without independent, transparent, in-depth research, and a willingness to look at alternative viewpoints regarding the covid pandemic. What happened? The high-tech social media platforms took it upon themselves to violate every American’s constitutional right to freedom of speech…simply because they disagreed with another’s position, prevalent narrative, or corporate policy (at the expense of violating our constitutional right).
Could this also be the case regarding the Russian-Ukrainian war? We’ve shared a few perspectives with you that do not follow the mainstream media nor with global government leaders narrative. We’re not saying they’re correct in their stated positions, just that they simply should be allowed to be heard and considered in order for us to have a more complete understanding of an issue of such great importance, so that we can make better informed decisions rather than simply following the current narrative like sheeple into making poor policy decisions. The question you have to ask yourselves (each of us) is, are you willing to consider alternative perspectives? Or do you simply trust and comply with the mainstream narrative being pushed by global leaders and news sources as truth? We always encourage our readers to do their own homework and research. Listen to the above referenced interviews and compare them to what you’ve already heard. Get better informed…Listen to both sides of an issue. Then, make up your own mind…and come to a better balanced and informed conclusion.
GMS BUSINESS CONSULTING, INC.– Provides lawyers/law firms, for-profit & non-profit organizations, and business professionals with Accounting Services, Business Development Services (M.A.P.), Business Optimization Services, and Digital Marketing Services. We help business professionals strategically manage and tactically grow their businesses more effectively and efficiently. We do NOT provide investment advice. Contact Us if you are interested in learning more about our services, and in particular about M.A.P.(our 3-phase business development & management solution), designed to help you strategically manage and tactically grow your business. We would welcome the opportunity to speak with you.
Bitcoin’s Sustainability…Yes or No? Is it possible? Does it make sense? Does it make sense to place so much time, capital, and resources into crypto currencies like Bitcoin (and others on Blockchain technology) that require extensive consumption of energy, that lack transactional performance and efficiency, are costly on both sides, and have security vulnerabilities? It appears to us, that these are some of the inherent risks with crypto currencies built with blockchain technology versus “hashgraph” technology. See these comparative charts of the top two blockchain crypto’s built on Blockchain technology versus Hedera’s Hashgraph technology and their crypto currency “HBAR” (CHART #1 and CHART #2).
Many proponents of Bitcoin and hundreds of other crypto currencies proclaim the benefits of these crypto’s, in that they provide a financial solution of decentralization and independence from the control of central banks and the current global financial system. Sounds like it would be a good thing, right? But is that even possible? Is it practical? And if it is, at what cost? Is it even possible to replace the current global financial system with hundreds of different crypto’s currently in the crypto world, each lacking the forementioned performance attributes and capacities (refer to the charts above) required to effectively and efficiently replace the global financial system?
Does it make sense to move from a centralized global financial system that is rapidly becoming evermore streamlined and centralized (as in the sanctions being used against Russia in the current Ukraine/Russia conflict), and move to a “decentralized” system built on what…a lagging technology such as blockchain that is slow, expensive, and incapable of handling hundreds of transactions let alone the billions of transactions on a daily basis? Perhaps we (GMS) are missing something??? How would this “new” system and all their connectivity systems be used on a practical daily basis…how would it be implemented, regulated, monitored, managed and secured? And by who? Consider this ARTICLE on Bloomberg News. Well…let’s explore a few of these points a little further:
PERSPECTIVES: Is Bitcoin Sustainable?
We believe digital money in place now is and will continue to be the progression of future financial transactions globally. But in what form? Is Bitcoin’s Sustainability and other Blockchain crypto’s for that matter, realistic in today’s digital payments system? We have all become accustomed to purchasing products and services in both physical and online stores by either entering a few keystrokes on the computer, tablet, or smartphone by either tapping or scanning our debit cards/credit cards/or smartphones without the need or use of cash or checks, right? We would also presume that nearly all current fiat currencies in the developed countries and in most under-developed countries are also available in digital form as well (no need to carry cash if that’s your choice). For many years the Central Banks digitally increase and decrease the money supply with book entries, and physically prints just enough cash to sustain our current global cash transactional needs. That said, there are several issues surrounding cryptos, and in particular Bitcoin or any other crypto currency based on blockchain technology that we need to address if we’re going to consider adopting them into our daily lives, and to put our trust and confidence in these platforms. We see five critical issues surrounding the viability of Bitcoin and other crypto’s utilizing Blockchain technology, if they can “reasonably” be expected to drive the future global transactions and financial system. Below are the key challenges that stand out to us:
– POINT #1: Transactional Processing Comparisons:
Simply compare the processing capabilities of Bitcoin and Ethereum (using blockchain technology) versus Hedera’s HBAR (using Hashgraph technology). Once again, please refer to these charts: CHART #1 and CHART #2. The evidence and conclusion is obvious! Bitcoin can effectively handle 3 transactions per second (with finality); Ethereum can process a whopping 12 transactions per second (with finality); and HBAR can handle 10,000 transactions per second with finality (and is fully scalable to handle much, much more). Are we missing something? Or is the world being deceived to place their money in ponzie scheme technology “assets” like Bitcoin and Ethereum? We just ask the simple question…”Why would anyone ever place their confidence in a flawed crypto, like Bitcoin or Ethereum which are both based on yesterday’s technology, blockchain technology?” So is Bitcoin’s Sustainability realistic? Let’s look further…
– POINT #2: Transactional – Fee Comparisons:
Simply compare the transactional costs of Bitcoin and Ethereum versus Hedera’s Hashgraph HBAR crypto. Once again, please refer to these charts: CHART #1 and CHART #2. As you can see, Bitcoin transactional cost come in at $22.57; Ethereum transactional cost comes in at $19.55; and HBAR transactional cost comes in at $.0001. The evidence and conclusion is obvious. Let’s move on to the next point…
– POINT #3: Transactional – Energy Cost Comparisons:
The costs of mining and maintaining Bitcoin and other cryptos using blockchain are substantial, and just don’t make sense to us, ESPECIALLY when producing a more costly yet less efficient, and less secure crypto. Please listen to this VIDEO on Bitcoin mining and energy sourcing. Does this make sense? The energy costs just to mine/produce Bitcoin alone are now becoming evident around the world. Mining companies around the world are actively seeking higher efficient / low carbon footprint energy sources to mine Bitcoin. That’s a respectful objective…to reduce the cost of product input and its carbon footprint on the environment. But how much can Bitcoin, Ethereum and other cryptos built on Blockchain technology realistically reduce their costs when compared to the energy costs of Hedera’s HBAR using Hashgraph technology?
Well, let’s look at the charts once again for a comparison (CHART #1 and CHART #2). Bitcoin energy consumption costs come in at 885 kwh; Ethereum energy consumption costs come in at 102 kwh; and HBAR energy consumption costs come in at .00017 kwh. Need we say more? Are you arriving at the same conclusions we have come to? But there’s more, much more if you’re willing to research for yourselves and not take the words of others at face value. The evidence and conclusion is obvious to us. So again, we ask is Bitcoin’s Sustainability realistic? Next point…
– POINT #4: The IMF/IBS/World Bank Factor:
If you believe there will be an independent financial system free of oversight from the world’s central banking system, then we believe this is a very, very flawed and naïve perspective. Do you really believe the central banking powers of this world will allow a replacement financial system that cuts them out of the equation? Who will regulate the cryptos and the exchanges they’re traded on? Who will oversee regulatory issues on an global level? Which crypto will become the “world crypto currency” to be used for daily transactions from over one thousand cryptos currently in the world today? Bitcoin…Ethereum? Really? Based on the evidence just presented? Do you honestly believe Bitcoin or Ethereum have the technological capabilities and capacities to handle this on a global basis? If so, then I urge you to please refer once again to the two charts listed above. In our opinion, the central banks have been working on their own crypto to be the replacement digital currency.
We also urge you to listen to this brief STATEMENT made by the General Manager from the BIS (the Bank of International Settlement). (Please note: this video was shared by Ms. Catherine Austin Fitts through her newsletter, who in our opinion is one of the most intelligent, thoughtful, strategic, and sincere person we have had the privilege of listening to over the past decade. You can subscribe to her newsletter atThe Solari Reportor search for her interviews on YouTube or other platforms). Ok…getting back on point…We also believe the central banking powers have utilized the private sector to create an atmosphere of crypto competition to design and engineer a best-in-class crypto technology. The most capable technology that emerges from this hi-tech competitive war, will legitimately have the capacity to replace existing fiat currencies globally. Once the global banking authorities have tested these technologies and their capabilities on all fronts and make their decision, then they will introduce this new global crypto currency. We are pretty confident it won’t be Bitcoin or Ethereum or any other crypto currency built on Blockchain technology. Rather we believe the future crypto currency (most likely the CBDC) will be built on the Hashgraph technology platform. We’ll see…we could be wrong, but Hashgraph technology appears to be the only technology available in the marketplace capable of handling the global financial transactional needs. So again, we ask is Bitcoin’s Sustainability realistic?
– POINT #5: A Possible Solution:
Hashgraph technology is engineered by a company called Hedera, and their crypto is called HBAR. Ever heard of it? Most likely not. We encourage you to take a deeper dive into the capabilities behind Hashgraph technology and their founders (Leemon Baird and Mance Harmon of Swirlds and Hedera…the creators and minds behind Hashgraph technology. Based on our research over the years, Hashgraph appears to be the only technology platform solution capable of meeting all the requisite standards to become “the” technology of choice used in the future global financial system. So, how does Hashgraph technology differ from other cryptocurrencies built on Blockchain technology? The following two links are with the co-founder of Hashgraph (Mance Harmon) who will better explain the differences between Blockchain and Hashgraph technologies than I can do within this post: Link #1 and Link #2.
Question…So why have most people not heard of Hashgraph technology and their crypto called HBAR? In our opinion, while others have hit social media platforms with a frenzy to promote their “crypto du jour” for get rich quick schemes via short-term trading, Hedera’s strategy on the other hand is built as a serious mathematical, engineering, and technology solution to a very complex challenge. In contrast to other crypto’s including Bitcoin and Ethereum, Hedera has engineered their technology platform from the bottom up. It is designed to be a viable technology solution to solve the future digital global financial transactional needs and challenges AND…incorporates a Global Governing Council to oversee its future utilization. Hashgraph is specifically designed on best in class, mathematics and software engineering that solves the deficiencies that current platforms cannot (like blockchain), and is capable of meeting the ever growing and complex needs of individuals, businesses, and governments globally. Once again, we urge you to visit their websites (Hedera and Swirlds), and you can also refer to our earlier posts on Bitcoin versus Hashgraph by clicking HERE.
CONCLUSION: Is Bitcoin Sustainable?
In conclusion, we believe the frantic Bitcoin price rise is largely based on a presumed “value” by a segment of the public. So the question is; is Bitcoin’s value one of the best Ponzi schemes of the 21st century or is it legitimately a store of “value”? We don’t know the final answer to that. All we can say, is when a crypto…a “technology asset” such as Bitcoin or Ethereum, are based on an inferior technology platform like Blockchain, that it is costly to produce, that it is costly for consumers to transact, and that it is “produced” from a highly inefficient environmental perspective, and that it has security vulnerabilities, why would anyone place any real “value” on it other than for pure speculative purposes? That’s the question we should all ask ourselves.
Sure, if we were speculative traders, I would have loved the opportunity to buy Bitcoin years ago, and sell at today’s price…who wouldn’t? But that’s not the point. The point we’re trying to understand and to share with our readers is…Is there real intrinsic value and sustainability in Bitcoin and these other crypto’s built on Blockchain technology or not? Is it really a store of value? If so, what is their value based on? Does it produce anything…anything of real benefit? Is there real value in Bitcoin or these other crypto’s because other financial experts or celebrities are getting on the bandwagon of something they really don’t understand? Have they been sold a bag of social media hype and promotion that is costly and inefficient? Or…Could they be right and they understand something we don’t? Could we perhaps be missing something and be wrong? Perhaps…but we don’t think so given the data available. We’re always willing to consider new, relevant, viable data that could change our perspectives. However, after nearly four years of research, we keep coming to the same conclusions over and over again because there is no other compelling evidence (not opinions) that we’ve been presented with to change our perspectives. We keep asking ourselves the same questions about Bitcoin and nearly all the other crypto’s…what is their intrinsic value?
In closing, let me ask you this, if Bitcoin or any other crypto (except for HBAR) were valued at$1 or $500 or $500,000 (instead of $40,000 at the time of this post), how would you understand or describe their intrinsic value? Would their utility value be any different? Based on what? We understand the total amount of Bitcoin is fixed and cannot be increased…so what? Does that mean if you have only 21 million rocks of a particular mineral makeup, that therefore those rocks have a store of value? Perhaps it does to those who may collect rocks…they may value those rocks. But what about those people who don’t place any value on those rocks because there is no utility value of the rocks themselves nor in the minerals that can be extracted from those rocks? That’s where our understanding of Bitcoin and nearly all the other crypto currencies we have researched, with the exception of Hedera’s HBAR (because it can solve the issues centered on digitizing financial transactions utilizing a crypto currency.
We believe Bitcoin and many other crypto’s are priced in the market today by supply and demand based on short-term trading hype, mainstream media and social media hype promoting Ponzi-like speculative assets that have little or no realistic or practical utility or intrinsic value. We understand…people have become rich, filthy rich trading these cryptos, no doubt (kudo’s to them)! There are some very rich people that have become tremendously wealthy trading these. Our concern or issue isn’t centered on those people, rather to better understand “why” would anyone place any value on a technology tool or product that has not intrinsic or utility value. Our concern also being expressed is for the everyday person who may get swayed into pouring their life savings or a significant portion of their retirement assets into these so-called digital “assets” (that in our understanding have no real value), and they lose everything they have or a significant portion of their nest egg.
We also want to say, we do believe there are some genuine crypto engineers and software developers who are honestly striving to engineer better financial solutions to our current fiat currency system. We applaud them for that! But at the end of the day, they must provide value…not just short-term hyped trading value. But in our opinion, the crypto currencies available in today’s market place that are built on Blockchain technology have three significant challenges facing them:
Most Cryptos are Utilizing an Inferior Technology – that are incapable of handling the vast amount of financial transactions on a global basis efficiently, that is cost effective to produce and transact, and are highly secure.
The Influence of the IMF/BIS World Bank/Central Banks – If you believe the global financial powers of the world (the IMF/BSI/World Bank and Central Banks) will relinquish control of the future financial system to a decentralized platform of crypto currencies controlled by individuals…then we respectfully disagree. Again, take a listen to what the General Manager of the BIS says about crypto currencies HERE.
Most Importantly…The Word of GOD – In the Bible, God tells us in Revelation 13:11-18 that there will come a time in the near future (based on bible prophecy timelines), when those who do not have the mark of the beast cannot buy or sell… If you’re a believer and follow the Word of God, think this through for just a moment… This means that a future global financial system MUST be in place in order to enforce this, right? This financial system therefore would likely be built on a “centralized” platform so that buying or selling can be enforced…not on a “decentralized” platform, right? This centralized platform must also be capable of executing transactions or cutting off an individual’s access to their financial assets on a global basis in real time, right? The global financial system therefore, cannot be built on hundreds of decentralized cryptos or on a crypto that can only process a handful of transactions per second. The global financial system therefore, would likely need to be be built on a centralized system that must be capable of handling the billions of individual, business and government financial transactions globally on a daily basis. Would you agree?
We also believe the evidence demonstrates that Blockchain technology cannot be the technology utilized because the future currency/crypto currency that would likely be used, must therefore be capable of handling all the banking and financial transactions on a global basis. Why? Because it can’t handle the transactional volume, it isn’t cost-effective on both sides, it isn’t energy efficient, and it isn’t secure enough to meet the global financial system’s needs. So what other technology is currently available to meet the global needs on a daily basis? Based on our research, we believe the technology most likely to be utilized would be Hashgraph technology. So…we come back to the same question from the beginning; Is Bitcoin sustainable…Yes or No? Can it go higher in price? Sure it can as long as there are people who believe it has value! But ask yourselves…value based on what? Speculative demand or real intrinsic or utility value? Only time will tell, but in the meantime we just wanted to cautiously present data and perspectives that we have found to be compelling. After viewing the comparative data presented and the challenges for Bitcoin and Blockchain based crypto’s, we ask you this question…do you believe Bitcoin’s Sustainability is realistic?
The conclusions we have reached (as of today’s posting date), leads us to our forestated conclusions. That said, we are always open to new insights, perspectives and ideas based on sound, proven, verified data. Then, once presented with this evidence, we are certainly willing to update or modify our positions when presented with undisputable evidence…not by social media hype, financial pundit hype or Wall Street hype. Until next time, and as we always state in our posts, do your own homework, then make your own informed conclusions and decisions…
GMS BUSINESS CONSULTING, INC. – Provides lawyers/law firms, for-profit & non-profit organizations, and business professionals with Accounting Services, Business Development Services (M.A.P.), Business Optimization Services, and Digital Marketing Services. We help business professionals strategically manage and tactically grow their businesses more effectively and efficiently. We do NOT provide investment advice. Contact Us if you are interested in learning more about our services, and in particular about M.A.P.(our 3-phase business development & management solution), designed to help you strategically manage and tactically grow your business. We would welcome the opportunity to speak with you.
Today’s post is to address the perceptions vs. facts on Covid-19 and the degree as to how serious it is…or isn’t. Caveat: We are assuming that we can trust the sources and the integrity of the data presented by the CDC and Johns Hopkins and other respected organizations. At this time, we’re not going to address the economic impact of Covid-19, as we’ll save that for another post.
So let’s address the perceptions vs. facts on Covid-19 as it relates to the severity of its contagion and mortality rates. Then we’ll be in a better position to better ascertain whether or not government and health officials are over-dramatizing it’s health implications. Let’s begin…
There are many people questioning or doubting the severity of Covid-19 as presented by government and health officials. Are they over-blowing and dramatizing its contagious and destructive power? Most of the critiques we hear from the media, politicians and protesters regarding the lock-downs and social distancing policies, (people who maybe well-intentioned or not), usually fall short in applying comparative analysis of data and statistics available. That is, they are not comparing apples-with-apples when it comes to comparing Covid-19 data vs. the death rates of other diseases as they formulate their opinions. So, do we simply take their word for it and believe what they say? Certainly not! As we always encourage our client’s and reader’s of this blog…do your own research. Get properly informed! Then we can better understand the situation and make better decisions. So let’s get on with our discussion on the perceptions vs. facts on Covid-19.
I. Discerning Fact vs. Fiction:
At GMS Business Consulting, we have one simple rule to follow as a guiding principle in business; filter out all the “noise” by looking at the data, then compare apples-with-apples, and not apples-with-oranges. Here’s what we mean:
Many people are downplaying or misunderstanding the data and the significance of Covid-19, and believe we should just “get back to work.” “Just use a little hand sanitizer and sport a mask and all is well!” Let the “healthy” people go back to work!” We would agree for healthy people to be allowed to go back to work. We are all for it…if we can be assured that each state has the appropriate testing, medical equipment, medical staffing and policies in place. Currently, we don’t have those in place. Usually these same arguments for getting back to work before the fore-mentioned policies are in place, are followed-up by using comparative mortality rates of various illnesses to substantiate their views. What’s needed, is a clear foundational perspective on what to base a comparative analysis on when using data and statistical information.
II. Annual Deaths in the U.S.
Number of deaths: 2,813,503
Death rate: 863.8 deaths per 100,000 population
Life expectancy: 78.6 years
Infant Mortality rate: 5.79 deaths per 1,000 live births
“A 2018 CDC study published in Clinical Infectious Diseasesexternal icon looked at the percentage of the U.S. population who were sickened by flu using two different methods and compared the findings. Both methods had similar findings, which suggested that on average, about 8% of the U.S. population gets sick from flu each season, with a range of between 3% and 11%, depending on the season.”
Did you catch that? In any given year, approximately 8% of the U.S. population (8% of approx. 330,000,000 million people in the U.S.) equates to approximately 26,400,000 people become infected with the flu annually. Again, it’s about Perceptions vs. Facts on Covid-19.
The CDC estimates that influenza has resulted in between 9 million – 45 million illnesses, between 140,000 – 810,000 hospitalizations and between 12,000 – 61,000 deaths annually since 2010. This equates to an estimated mortality rate of approximately .10%
Remember the above mortality rate and what it’s telling us in terms of the annual deaths from the flu in the U.S. versus Covid-19. Now lets take a look at Covid-19…
V. COVID-19 Cases and Mortality by Country AS OF 4-23-20.
You may be able to spread flu to someone else before you know you are sick, as well as while you are sick.
People with flu are most contagious in the first 3-4 days after their illness begins.
Some otherwise healthy adults may be able to infect others beginning 1 day before symptoms develop and up to 5 to 7 days after becoming sick.
Remember the “average” annual contagion rate for the annual flu here in the U.S. is 8%, and a mortality rate of .10%.
Covid-19 – Period of Contagiousness:
According to the CDC, the contagion infection of Covid-19 can be asymptomatic with no signs of infection or flu-like symptoms for as long as 2 weeks! This means the virus can spread exponentially faster than the regular flu because seemingly healthy people are able to spread the virus with anyone they come in contact with or touch any surface in their daily life for 2 WEEKS (and perhaps longer) without ever realizing they’re infected. Based on the data provided, the Covid-19 contagion and mortality rates are VASTLY different to the annual flu!
As you see from the above chart, the current mortality rate here in the U.S. for Covid-19 is 5.5% vs. .10% for the annual flu! The differences in the infection rate and mortality rate of the annual flu vs. Covid-19 is very compelling.
So let’s calculate a hypothetical “apples-to-apples- comparison of Covid-19 “assuming” an identical infection rate as the annual flu in the U.S. (Keeping in mind that Covid-19 is actually far more contagious than the annual flu, but for hypothetical purposes, we’ll apply the same infection rate):
Using an infection rate of 8% on the U.S. population of 330,000,000 people:
Annual Flu – Death Rate using .10% = 26,400 deaths.
Covid-19 – Infections = 26,400,000. (using same infection rate as the flu.)
Covid-19 – Death Rate using 5.5% = 1,452,000 deaths.
That’s an additional 1,425,000 potential deaths for the same amount of infections! And we know Covid-19 is far more infectious than the annual flu due to the asymptomatic incubation time that could be as much as two weeks or longer BEFORE any symptoms become present! In other words, this makes Covid-19 55 times more lethal than the annual flu, and we haven’t even touched on the point of demographics of those who have been hit hardest by this virus.
Can you see why it’s important to compare apples-to-apples and not apples-to-oranges? This foundational comparison can help us better distinguish the perceptions vs. facts on Covid-19.
VI. Conclusion:
Again, assuming we can trust the sources and integrity of the data compiled by the various European countries, New York, the CDC, Johns Hopkins University and the like, it appears that Covid-19 is not like the annual flu…it’s much, much worse. Like many of you, we have family and friends who are medical professionals working in the hospitals and health centers. They can tell you their stories and experiences with Covid-19, and where the short comings of our healthcare system are. Our current medical system cannot handle much more than what they have recently faced. Consider us blessed and very fortunate! (Consider the bar chart above in comparison to other countries.) So what have we learned so far?
Social distancing and stay-in lock-downs, face masks, and sanitizing may be an inconvenience, but it has worked so far! Compare the difference it has made versus what the European countries have endured! New York has similar results of Europe, as they only had a 1 week lag time over Italy.
The main differences between the U.S. infection and mortality rates vs. the Europeans and New York, is that we had 2-3 more weeks lead-time (except New York) to prepare and put social distancing and stay-in policies in place.
European countries and New York also utilize mass transit far more extensively than the rest of the U.S. Had the rest of the U.S. utilized mass transit and not had an extra few weeks lead time to prepare…our current results would more closely reflect European countries. (Look at the chart above)
So what’s the answer? Do we continue leaving the restrictive policies in place a little while longer? Or do we prematurely open the country for business and risking a contagion and death rate that gets out of control. At what cost? Economics or lives? Who or what is your moral compass for making decisions like this? We would sure like to know the President’s and Governor’s. Fortunately, we don’t have to make that decision.
Our point is, can we be a little more patient and let each state reopen for business if each state’s Governor can verifyably demonstrate the following:
That their state has an effective Covid-19 policy in place.
That their state has appropriate testing standards and equipment in place.
That their state has the appropriate medical staffing and resources in place.
If the Governor of each state can attest to their constituency, then they should be allowed to reopen for business.
The economic effects that Covid-19 has been devastating not only in terms of magnitude, but in terms of the historical rate of speed which this has happened. Unfortunately, we have NOT begun to see the full repercussions.
Nor have we seen the economic impact of all the digital stimulus money being printed, and what it will bring to bear in the future months and years to come.
But we hope we have been able to at least present informative information to address the perceptions vs. facts on Covid-19 and the seriousness of this virus based on the statistical data provided.
Unquestionably, we are living in unprecedented times, but if you’re a Christian, you should not be surprised by all this. The Bible warns us of times like these to come before the second coming of Jesus Christ. For those of you who are not Christians nor have ever read/studied the Bible, perhaps now is as good a time as any to do so.
So what can we do? Can anything good come out of this? We’ll talk about that next week in our next post. Until then, we can all do the following:
We can be patient with the social distancing policies.
Help others who are in more need than we are.
Do your own research,
Make sure when using data/statistics to compare apples-to-apples…
Pray and read your Bible. You will be enlightened with His promises and comforted with His peace.
Until next week, be patient, stay safe and healthy.
GMS BUSINESS CONSULTING, INC. – provides lawyers/law firms, for-profit & non-profit organizations, and business professionals with Accounting Services, Business Development Services, Business Optimization Services, and Digital Marketing Services. We help business professionals strategically manage and tactically grow their businesses more effectively and efficiently. We do NOT provide investment advice. Contact Us if you are interested in learning more about our services, and in particular about M.A.P.(our 3-phase business development & management solution), designed to help you strategically manage and tactically grow your business. We would welcome the opportunity to speak with you.
Conducting business during the CV pandemic (COVID-19) will not be business as usual (obviously), but it is not only possible it’s doable! However given the right planning, preparation utilizing technology, and with measured and thoughtful precautions in place, business can proceed forward (and it must!). Most of what we’re presenting below is very basic, yet sometimes we need to revisit some of those basic principles before strategically planning ahead. Many, many business we initially interacted with were not as “up to date” on virtual working conditions nor did they have the appropriate plans in place to work through business interruptions like this current situation. Please understand, we’re not holding ourselves as experts in the coronavirus, however we do have experience and expertise in business operations, planning and optimization. Conducting business during the CV pandemic is possible! Let’s take a brief look at a few basic business interruption recommendations and precautions that might be helpful to you or someone else you may know who needs some guidance:
BUSINESS OPERATIONS:
Business Interruption Plan – The first point of defense and offence is having a Business Interruption Plan (BIP). If you haven’t established and implemented a BIP by now…do so now (we can help you with this). This plan will not only be helpful now, but it will serve you well with ANY business interruption that may come along in the future including: natural disasters/ physical office location interruptions etc. (We include a Business Interruption Plan in our M.A.P. solution). BIP become the command and control center for managing and operating your business during a business interruption. If you don’t have a BIP in place, hopefully the following recommendations will provide some initial guidance and food for thought.
Work Remotely – Minimize the staff necessary to be on your site location. For most service providers, online access to office/client work-product should have already been established through online/cloud access to all apps/data/communication. If that has been implemented, then those not required to be “on-site” should work remotely. For those who must remain on-site (for production purposes and tech. support), make sure to implement protective measures to keep others as safe as possible from infection.
Daily Debriefs – Morning and evening business debriefs hosted by management should focus on essential business operations such as: client service & communication/ supply-chain/service providers/ contracted services status etc. Also, make sure the business leader (President/CEO/Managing Partner etc.) personally hosts a daily debrief with all staff. Staff needs to see/hear status and direction from the person in charge. This can be easily accomplished via ZOOM or other online meeting software etc.
Client Communication – All staff involved in client interaction and work-product responsibilities should coordinate, prioritize and communicate with each designated client. The objective should be to keep clients informed on the status of work production that directly affects them. Clients NEED to hear from their service providers (just as we would like to hear from our contracted service providers) in situations like this. However this should be conducted on a more regular basis than is normally customary! Just a simple text/ email/ video-call/ direct phone call letting clients know you’re thinking of them, and providing them with updates regarding their work-product is very meaningful to them. DO NOT underestimate this! Over the years this has been the #1 complaint of clients with their prior service providers. This simple task can be easily accomplished via the technology tools we have at our fingertips today.
Supply Chain & Service ProviderCommunication – Management should already have business interruption measures in place (via the Business Interruption Plan), but in case they don’t, calls must take place so that your organization’s staff can be prepared to work with any disruptions that may impact their client’s work product. Once the status and expectations with suppliers/service providers is understood, then any material information that could affect client work-product, should be communicated to the responsible staff and then directly to clients.
Strategic Planning – Use business interruption situations to better understand and address your organizational weaknesses. Then you can effectively begin to strategically plan your next objectives. Host online meetings with management AND staff to brainstorm and strategize how to best resolve current business challenges internally, and how you can help clients do the same. This is a golden opportunity to add value to existing clients and new clients. Become a valued resource to help clients resolve their problems during a business interruption. Not that you need to have all the answers, but that you become a valued “resource” to help them resolve their challenges. You can do this either by providing the solution or by introducing them to other sources that can help resolve their specific challenges or opportunities. Provide value to your clients by becoming a thought leader…a problem solver other than the work you normally provide. Again, conducting business during the CV pandemic is not only possible it is doable!
PRECAUTIONS:
Pre-Screening – Those employees only deemed “necessary” to work on-site during this particular crisis, should be monitored daily for any possible infection as best as possible. If any of the aforementioned on-site staff are not feeling well or have been exposed to others who are ill, they should be required to work remotely…no exceptions.
Office Location Precautions – Implement the basics…mandatory use of hand sanitizers (when available), mandatory frequent hand washing, mandatory use of disposable gloves etc. Again, only those employees deemed critical to business operational support should be working on-site.
Employee Support & Incentives – Consider offering “Additional Paid-Sick-Time-Off” for ALL your employees. If they’re ill or get ill, then they’ll be covered by YOU…their employer! For those fortunate enough to not get ill from COVID-19, then let this “additional” paid sick-time-off be added to their vacation time. Either way, now would be the time to step-up to the plate and let your employees know you care about them and their livelihood. The additional benefit will come back to you in the form of employee retention.
We hope these basics will be of help to you or someone you know and that you can be reassured that conducting business during the CV pandemic is doable! If you would like to discuss your particular situation further please feel free to Contact Us. Be well, stay safe, and may the Lord protect us.
GMS BUSINESS CONSULTING, INC. – provides lawyers/law firms, for-profit & non-profit organizations, and business professionals with Accounting Services, Business Development Services, Business Optimization Services, and Digital Marketing Services. We help business professionals strategically manage and tactically grow their businesses more effectively and efficiently. We do NOT provide investment advice. Contact Us if you are interested in learning more about our services, and in particular about M.A.P.(our 3-phase business development & management solution), designed to help you strategically manage and tactically grow your business. We would welcome the opportunity to speak with you.
This is an update to “Interest Rates Tell The Story” which we posted on June 24th of this year. We wanted to post this lecture by Danielle DiMartino Booth of Quill Intelligence., as she addresses some very important points regarding interest rates and the “real” stat of the economy and financial markets. Danielle gave this lecture at the Stansberry Conference on October 20th, 2019 in Las Vegas, Nevada.
As a former insider at the Federal Reserve in Dallas for nearly 10 years, and many years experience working on Wall Street, we believe it would be of value to our readers to LISTENto what she has to say. More specifically about what Danielle has to say about interest rates, the state of the economy, the Federal Reserve, and finally on how all this information can be used in making strategic and tactical decisions for you personally and professionally. Remember, interest rates tell the story of what’s really going on in the economy. As we always say, “Do your own research, then make better informed decisions.”
GMS BUSINESS CONSULTING, INC. – provides lawyers/law firms, for-profit & non-profit organizations, and business professionals with Accounting Services, Business Development Services, Business Optimization Services, and Digital Marketing Services. We help business professionals strategically manage and tactically grow their businesses more effectively and efficiently. We do NOT provide investment advice. Contact Us if you are interested in learning more about our services, and in particular about M.A.P.(our 3-phase business development & management solution), designed to help you strategically focus and tactically grow your business. We would welcome the opportunity to speak with you.
Pension Headwinds Ahead is the title for today’s post. As most of you know already, many of the largest pensions here in the U.S. are in deep trouble. With under-funded reserves coupled with low interest rates and declining contributions, for many pension funds, the outflow is greater than the inflow.
We first saw the reality of this situation coming to a head back in 2015. Central States Pension Fund (with over 410,000 employees) applied for benefit cuts. (For a sample listing of pension funds that have applied to cut benefits under the Multiemployer Pension Reform Act click HERE.) Today, according to Bloomberg News, General Electric (GE) announced that they are “taking steps to cut the worst pension deficit in corporate America, by freezing benefits for more than 20,000 employees.” If you think this is just an anomaly, think again. We believe this is only the beginning as pension costs continue to rise, and interest rates near their historical lows, this is just the beginning of additional ones to follow.
This situation is very straight forward. The cash outflows are simply greater than the inflows. As fewer people pay into the pension funds and an increasing number of new retirees begin collecting their pensions, the outflow exceeds the inflow. In addition, with interest rates so low, the investment income received isn’t nearly enough to cover the outflows either. It’s a perfect storm for pension funds.
To better prepare retirees relying on fixed pensions, we recommend they fully inform themselves by taking the following action steps:
1st – Check the status of your pension fund. Do your research if their pension fund has applied for benefits cuts under the Multiemployer Pension Reform Act.
2nd – Meet with your accountant and financial adviser to proactively plan, budget, and make any investment re-positioning for possible pension cuts in near to medium future.
3rd – Reduce your debt…period. Streamline and cut unnecessary expenditures. Seriously consider downsizing your current lifestyle to better position yourself for any unseen pension reductions in the future.
It’s far better to develop a plan and implement now, rather than waiting and being forced to do so at a later time. Remember, it’s up to you to do your own research, then make better informed decisions.
GMS BUSINESS CONSULTING, INC. – provides lawyers/law firms and business professionals with Accounting Services, Business Development Services, Business Optimization Services, and Digital Marketing Services to help business professionals successfully manage and grow their businesses more effectively and efficiently. We do NOT provide investment advice. Contact Us if you are interested in learning more about our services, and in particular about M.A.P.(our 3-phase business development & management solution), designed to help you strategically focus and tactically grow your business. We would welcome the opportunity to speak with you.
This is yet another example of Facebook’s failure to transparently disclose its data policies to its customers. Hello Readers!
This time, according to Bloomberg news, it has to do with outsourcing to “hundreds” of outside contractors transcribing its “Messenger Chats” into usable data (that is…for them to sell/mine or whatever their lack of transparency data policy allows them to do). Were you aware of this policy? Facebook says it doesn’t listen to your conversations, rather they hire hundreds of outside contractors to do this for them. Well isn’t that really the same thing? Of course it is. Facebook’s lack of transparency and abuse of client’s data is abysmal and disingenuous to say the least. That said, I have questions regarding these outside contractors hired by Facebook to do their dirty work, namely:
Who are these outside contractors?
What are their data policies?
What do they do with your data once service is rendered for Facebook?
Where are they located?
Who is monitoring these contractors?
How do they safeguard your data?
Do they adhere to their data policies?
How do you know? How is this verified?
Who monitors their data data retention policies…in other words, who is holding them accountable for YOUR private data?
Certainly not Facebook!
Once again, Facebook has proven that they can’t be trusted with the privacy of their client’s data. This is evidenced by their lack of transparency and lack of full disclosure to their clients in their data policies. Resulting in yet another reason for customers to close accounts at Facebook and send a message to their senior management. However, I don’t believe they really care about what you or I think…they’ve haven’t so far, so why should they change their stripes now?
If you don’t agree with Facebook’s customer data policies, then take a stand and make your voice heard. If you don’t really care about how your data is used without your approval or knowledge, then continue to have your account open at Facebook where your private data can be bought/ sold/ exchanged/ shared/ and traded with hundreds of data contractors who can do the very same thing with your private data if they have similar data policies in place! You can’t say you haven’t been warned!
GMS BUSINESS CONSULTING, INC. – provides lawyers and business professionals with Accounting Services, Business Development Services, Business Optimization Services and Digital Marketing Services. We do NOT provide investment advice. If you are interested in learning more about our consulting services, especially our M.A.P. solution (a Master Action Plan), designed to help business professionals to strategically manage and tactically grow their business, then Contact Us… We would welcome the opportunity to speak with you.
