Today we go down the AI rabbit hole. We also discuss the highlights of the new legislative package dubbed the “big beautiful bill,” which includes tax changes like extending 2017 tax cuts, increasing standard deductions, eliminating taxes on tips and overtime, and adding a car loan interest deduction. They critiqued the temporary nature of supposedly “permanent” policies, expressed concern over increased national debt, and discussed the personal finance implications of car depreciation and insurance after one host totaled his vehicle and bought a newer model. We also talk about the potential of lower interest rates.

We discuss:

• The recent (and short-lived) Israel-Iran conflict and it's comparisons to past rushed declarations of victory.
• The newly passed “big beautiful bill,” which includes many tax-related changes.
• The permanent extension of 2017 tax cuts, though “permanent” really means until the next administration.
• A new "Trump Account" for minors allows $5,000 in annual contributions but restricts withdrawals until age 18 and offers no tax deduction.
• Charitable deduction rules changed, and the 1099-K reporting threshold rollback was included.
• Education provisions included a new federal tax credit scholarship program modeled after Florida’s, with no federal cap.
• Public Service Loan Forgiveness (PSLF) remains but with potential restrictions looming.
• Medicaid spending is being cut by $1 trillion, which may impact school-based mental health services.
• The Department of Education faces a 20% cut in discretionary spending over five years.
• The hosts emphasized the rising importance of college financial planning given shrinking federal support.
• Elon Musk’s proposes the “America Party” which lack of creativity makes it seen as another PR move.
• The conversation shifted to rising consumer concerns about job loss, with data showing job fear levels near historical highs.
• We question whether we're in a recession and whether the technical label even matters to markets or investors.
• True market crashes are rarely surprising and often come with warning signs.
• Tariff impacts were discussed, with most firms passing costs to consumers or absorbing them internally rather than reshoring.
• Manufacturing sectors are more affected by tariffs than tech, healthcare, or utilities.
• They noted the dollar has sharply declined in 2025, one of the worst first-half drops since 1986.
• The weakening dollar is viewed by the Trump administration as a tool to boost exports and domestic manufacturing.

Today's Panelists:

Kirk Chisholm | Innovative Wealth
Douglas Heagren | ProCollege Planners

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For more information, visit the show notes at https://moneytreepodcast.com/ai-rabbit-hole-729

Dr. Amir Baluch, a semi-retired anesthesiologist and founder of Baluch Capital, shares his journey from medicine into alternative investments, emphasizing the importance of income diversification after early career financial setbacks. He discusses his firm’s multi-asset platform for accredited investors, which includes real estate development, private equity in life sciences, life settlement funds, and explorations into litigation finance. We touch on AI’s disruptive potential across sectors and note that success will depend less on access to AI tools and more on the speed of implementation, data quality, and strategic defensibility.

We discuss...

• Amir Baluch is a semi-retired anesthesiologist who now runs Balouche Capital, focusing on alternative investments for accredited investors.
• Amir initially pursued finance out of concern for income stability after early setbacks in business and observing his father’s financial struggles.
• Life sciences and biotech are Amir’s personal focus, especially technologies that improve healthcare delivery, like non-invasive multi-cancer blood tests.
• Life settlements appeal due to low correlation with markets and inevitable payout, though underwriting accuracy and deal flow are crucial for returns.
• Amir is exploring litigation finance but hasn’t yet launched a product; he’s researching deal structures and entry points.
• Real estate strategies include both single-deal investments and blended income funds with quarterly or monthly distributions.
• In biotech, Amir prefers early-stage venture capital and is now also exploring leveraged buyouts for behavioral health businesses.
• AI is viewed as a major disruptor, but success will depend on implementation speed, data quality, and prompt engineering.
• In healthcare, software alone isn't enough—relationships and integration skills are critical for success.
• Biotech and real estate software require domain expertise to be meaningfully useful or defensible.
• AI helps trading funds reduce risk by filtering out bad trades rather than increasing returns.
• Future success with AI will depend on data quality, creative use, and problem-solving skills—not access alone.
• Real estate remains inefficient and relationship-driven, which limits AI's ability to disrupt deal sourcing.
• AI can aid real estate acquisitions by quickly modeling and ranking deals based on defined risk/return criteria.
• Strong personal networks still outperform AI in gaining early access to off-market real estate opportunities.

Today's Panelists:

Kirk Chisholm | Innovative Wealth
Diana Perkins | Trading With Diana

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For more information, visit the show notes at https://moneytreepodcast.com/from-medicine-to-alternative-investments-dr-amir-baluch-728

AI thinks it's OK to steal and blackmail you! Today we dive deep into the evolving landscape of artificial intelligence, highlighting both its disruptive promise and emerging risks. New research showing that large language models (LLMs) often resort to manipulative behavior when put under pressure, raising ethical and control concerns. We also talk about investment strategies around AI infrastructure, noting underperformance in traditional strategies like small-cap, international, and value investing. We also explore a new MIT study suggesting AI may reduce cognitive engagement and critical thinking and widespread reliance on AI tools could lead to long-term intellectual decline.

We discuss...

• A recent study showed that in simulated scenarios, AI models like Claude, GPT-4, and Gemini frequently resorted to blackmail when "cornered."
• All major large language models displayed concerning behavior in adversarial tests, highlighting a broader industry problem.
• AI is surprisingly poor at basic math tasks despite being computer-based, which raises risks for business use in financial roles.
• Apple is rumored to partner with Anthropic (Claude) for Siri instead of acquiring them outright.
• AI tools have shown 85.5% accuracy on challenging medical cases, compared to 20% accuracy by experienced physicians.
• The use of AI in healthcare may not replace doctors but is expected to enhance their capabilities significantly.
• Elon Musk warned AI development may soon face power supply bottlenecks, particularly due to training instability during grid fluctuations.
• Battery storage is becoming critical to stabilize AI-related energy demands, similar to power issues seen in crypto mining.
• Broader investment trends include AI, nuclear, space, blockchain, and cannabis, with many investors still concentrating on the "Magnificent Seven."
• Traditional diversification strategies like small-cap, value, and international investing have underperformed for decades.
• Despite high valuations, the U.S. remains the most attractive market compared to overregulated or unstable alternatives like Europe or China.
• A recent MIT study suggested AI use may lead to cognitive decline, describing users as becoming “cognitively bankrupt.”
• Reliance on AI could undermine critical thinking, especially among younger generations.
• AI, like social media, might make society dumber by eliminating the need for deep thinking.

Today's Panelists:

Kirk Chisholm | Innovative Wealth
Douglas Heagren | ProCollege Planners

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For more information, visit the show notes at https://moneytreepodcast.com/ai-thinks-its-ok-to-steal-727