RESOURCES

This article serves as a warning to investors who seek to profit from the most recent target of speculative capital. It presents three reasons why the number of investors capable of generating above market returns by leveraging AI software is likely to be small. First, it explains why AI software is highly unlikely to outperform market averages. Second, it explains why, even if some AI software applications are capable of outperforming markets, the opportunity set is likely to be extremely small. Finally, it concludes by explaining why investing in AI companies, rather than a broadly diversified index fund, is unlikely to pay off for most investors. It should be noted, however, that this article does not deny that AI will likely create substantial changes in business practices and labor markets in the coming years. It simply argues that the opportunity to use AI software or invest in AI companies to generate above market returns is much more limited than is often assumed.

The highest marginal income tax rate has ranged from 7% to 94%, and is now well below previous highs at 37%.

The SECURE Act 2.0 made many mostly small changes to the tax code. The biggest thing for IRA owners to consider now is whether they want to convert balances to Roth before tax rates rise.

Most people find a conversation engaging if they are engaged in it, but this is backwards. We should seek for the other person to be engaged, which is only done when they are talking.