Artificial intelligence has been popping up everywhere lately. It has shown that it can create stunning images and funny poems, but can it be used to plan a successful retirement? In this video, we explore ChatGPT, the latest in AI from OpenAI. We asked the program to answer very common retirement questions to see if it could deliver personalized advice.
We wanted to see if AI can help someone determine when they should take their Social Security or answer the most common question we get, “How much do I need to retire?”. We also asked timely questions about how to structure a portfolio given the current market environment.
While AI can be a great tool for advisors and investors, I think it may be a little early to say that AI can plan a retirement. What do you think? Send us an email with your thoughts
Read The Transcript
One of the biggest things going around the internet right now is AI. You may have seen new AI popping up on social media platforms whether it’s AI Art or AI portraits or AI chatbots writing poems or songs about random topics. And of course this got my wheels spinning and ultimately led me to the questions, will AI one day replace me? For years in the financial advisory space there has been this discussion about whether or not things like Robo advisors could eventually replace financial advisors. These were mainly investment focused platforms that build asset allocations based on some form of questionnaire. I’ve always maintained the position that there are people out there who will be fine using platforms like this to manage their investments, but there are many people like myself who get irritated at every website that has a chatbot function instead of a phone number. So far, AI has really been limited to investment management, but now that AI continues to get better and better, the question that I wonder is whether or not AI can plan your retirement?
Hey everybody I’m Johnathan Rankin, the founder and CEO of Theorem Wealth management and my firm and I have been helping clients plan and execute their retirement plans by focusing on 3 key areas in retirement, maximizing retirement income, optimizing investments and reducing taxes. If you are thinking about retiring or already retired, make sure you subscribe so you don’t miss any of our retirement videos or episodes of our retirement podcast called the retire once show.
In today's video, we'll be discussing whether or not AI can plan your retirement.
First, let's define what we mean by "AI" and "planning your retirement." AI, or artificial intelligence, refers to computer systems that are designed to mimic human intelligence and behavior. This can include tasks such as learning, problem-solving, and decision-making.
On the other hand, planning your retirement involves considering factors such as your savings, investments, and future expenses in order to determine the best strategy for ensuring a stable and comfortable retirement.
So, can AI be used to help plan your retirement? The short answer is: yes, AI can play a role in retirement planning. However, it's important to note that AI is not a replacement for professional financial advice, and it's always a good idea to consult with a financial advisor before making any major decisions about your retirement.
AI can be useful in a number of ways when it comes to retirement planning. For example, AI algorithms can be used to analyze your financial data and make predictions about your future expenses and income. This can help you better understand your current financial situation and identify areas where you may need to make changes in order to reach your retirement goals.
AI can also be used to create personalized retirement plans based on your individual circumstances. By considering factors such as your age, income, and savings, AI can generate a customized plan that takes into account your unique needs and goals.
Additionally, AI can help you track your progress towards your retirement goals and make adjustments as needed. For example, if your investments are not performing as well as expected, AI can suggest alternative strategies that may be more effective.
That is what AI says it can do for you. How do I know? Because that is literally what AI said they can do. I asked ChatGPT, the new AI platform that has been all over the place lately to generate a YouTube script about whether or not AI can plan your retirement and that was the exact script they came up with. AI is getting good, but can it deliver personal financial advice? Let’s find out.
I asked ChatGPT a few common questions that we get all the time about retirement planning, so let’s see what it came up with.
The first question I asked was When should I start my social security benefits? The response I got was
There is no one-size-fits-all answer to this question, as the optimal time to start receiving Social Security benefits depends on a number of factors, including your current financial situation, your retirement goals, and your overall health. In general, however, you are eligible to start receiving Social Security retirement benefits at age 62, although the amount you receive may be less than if you were to wait until your full retirement age, which is between 66 and 67 depending on the year you were born.
Ok, well that wouldn’t really help a real person seeking advice. That’s like asking a mechanic how often you should get your car serviced and the response they give you is “getting your car serviced can help your car last longer” Thanks, but that’s not what I asked.
Ok let’s try again. This time I asked, the most common question I get pretty much daily. How much do I need to retire? This is what almost everyone wants to know. So let’s see what it came up with.
There is no one-size-fits-all answer to this question, as everyone's retirement savings needs are different. Some factors that can affect how much you need to save for retirement include your expected retirement age, how long you expect to be retired, your desired standard of living in retirement, and any potential sources of income you will have in retirement, such as Social Security or a pension.
Once again, it’s not wrong, but for someone who really wants to know, that answer would just be frustrating. When someone asks me that question, I always say, let’s find out. Because it is a number that is specific to each individual and does take planning to really figure out exactly what each person needs.
So far, I think AI is 0 for 2.. it has been a great search engine, but when it comes to delivering personal advice, it’s not there yet. But, let’s give it one more chance.
The last question I asked was one that I actually got a few weeks ago from a person who was asking about becoming a client. The question was, My investment portfolio is down, what changes should I make?
The AI response was
It's not possible for me to give specific advice on your investment portfolio without more information. In general, it's important to regularly review your portfolio to make sure it aligns with your investment goals and risk tolerance. This may involve rebalancing your assets, selling off underperforming investments, and diversifying your portfolio. It's also a good idea to consult with a financial advisor or planner who can provide personalized advice based on your unique situation.
I think that sums it up best. AI has gotten a lot better and continues to improve. But when it comes to personal advice I think it will still have a long way to go. For most clients, they aren’t interested in asking our team a question and getting back a chatbot answer. Even if that answer is the correct one. For most people to feel comfortable they typically want not just the answer to their questions, but they want to know how that answer pertains to their specific circumstances.
When I think about whether or not AI will replace me. I don’t think it will. Well at least I hope it wont. I think AI will be a great tool for advisors and client to have access to. To me, it’s like a much better search engine. Where I do see it fitting in is to assist in people’s careers and make them more productive. I think where this will be a challenge is for education. I asked the AI to come up with a 2000 word essay on the meaning of life and within less than a minute it cranked it out. It makes me wish that it was around when I was in school because book reports on the Grapes of Wrath would have been a lot easier.
Thanks for watching, and hitting that subscribe button. if you need help when it comes to your retirement and you want a personalized approach, use the link in the description to schedule some time with a member of our team.
The last thing I asked it to do was to write a joke about retirement.
What are the 3 worst things about retirement? No more free coffee at work having to actually do all the chores you used to complain about and realizing that happy hour now means taking a nap at 4pm.
Looks like we wont be seeing AI with it’s own Netflix special anytime soon. Now when it does come to the worst things about retirement, make sure you check out this video on the 5 worst things to do after you retire.
