SALLIE'S OPINION

What AI Could Be Leaving Out

I completely get all the ramp and rave around new AI advancements. But (raises hand), I’ve got some questions and some observations.

For starters, stats show that less than 30% of AI roles are held by women. And further, that most of the roles being automated by AI are in professions with majority-women. And that AI itself is showing evidence of gender and racial bias.

It’s eye-opening and concerning. I mean, it’s bad enough that the pandemic significantly reduced women’s labor participation, which we’re just now clawing back. Is AI yet another blockade that'll stand in our way?

Or can it help move us forward?

This week, I’m diving into some of the data, and sharing some thoughts on what we can do about it.

Read the rest

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💡Retirement Tip of the Week

One of the most common questions we get is about the difference between Roth and traditional retirement accounts.

Both 401(k)s and IRAs come in Roth varieties (and so do a lot of the less common retirement accounts, like 403(b)s). The main difference is how the tax benefits work — more specifically, when you pay income taxes.

With traditional accounts, you don’t pay income taxes on your contributions, and your money can grow tax-deferred. You pay taxes later, when you withdraw in retirement.
With Roth accounts, you do pay income taxes on your contributions, but then your money can grow tax-free, and you don’t pay income taxes when you withdraw in retirement.

You may or may not be eligible for some of these tax benefits depending on the type of account and how much money you make each year. For example, we mentioned above that you can’t deduct your traditional IRA contributions if you exceed certain income limits and are covered by a retirement plan at work. There are also income limits to be able to use a Roth IRA at all. (That’s not the case for Roth 401(k)s, though.)

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ICYMI: The latest on interest rates

Last week, the Federal Reserve raised interest rates by 0.25% in an ongoing effort to tame the wildfire that's inflation — here’s what it means for your money.

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What’s ESG investing?

At its core, it’s not about warm and fuzzies. It’s about the fact that doing good is often what’s good for business and investors. And, yes, financial returns.

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Last week in links

It’s hard to believe that credit scores were only invented in 1989, because the difference between a good credit score and a bad one can vastly affect your quality of life. NPR digs into the history of the credit rating system, including how these scores emerged as a form of moral judgment.
As we celebrate AAPI month, we confront a sobering reality: Asian American, Native Hawaiian, and Pacific Islander women will lose out on $267,760 over a 40-year career because of the pay gap, with some AAPI groups losing out on as much as $1.3 million.
We hate to give “that guy” any more of the attention he seeks, but he just went and slashed Twitter’s paid parental leave from 20 weeks to just two. (Twitter is also facing a class-action lawsuit that alleges that the company’s layoffs unfairly targeted women. Argh.)
Raise your hand if you’re a natural contrarian. 👋 Read how this approach has helped Ellevest CEO Sallie Krawcheck throughout her career on CNBC’s The Moment series.

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What The Elle - 🤖 Women, AI, and What’s at Stake

What AI Could Be Leaving Out

“Being able to talk through my professional goals with someone who’s fully focused on my long-term success has been absolutely transformative.”

“Big F YEAH to the Ellevest team! They've managed my $ for the last 3+ years. 13/10 would do it all over again!” – Ana

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