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Trading Ideas

Should You Borrow Money From Your 401(k)?

At a recent presentation, I was asked whether it’s a good idea to borrow from a 401(k) plan in order to pay down debt.
My initial reaction was a resounding “no.”
To accumulate wealth, you want to stay invested for as long as possible. Disrupting that cycle of compounding by taking money out of your 401(k) plan will very likely lead to lower returns.
Consider: An employee who invests $1,000 per year and earns 9.8% (the average annual total return of the S&P 500 over the past 50 years) annually on their 401(k) ends up with $191,607 after 30 years.
But if they invest …read more […]

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Business News

U.S. urged to invest more in AI; ex-Google CEO warns of China’s progress

U.S. government funding in artificial intelligence has fallen short and the country needs to invest in research, train an AI-ready workforce and apply the technology to national security missions, a government-commissioned panel led by Google’s former CEO said in an interim report on Monday.

…read more […]