TV, print, and online are flooded with articles about AI. Will it affect your work, improve medical outcomes, or spell the end of humanity? All of them are tough questions and probably above my salary grade.
So I want to talk about an area I know a little about: the potential of AI in creating retirement income plans. Perhaps it’s a small potato, focused only on a narrow group of individuals. But for that group, it’s very important. (Also, retired baby boomers and those planning to retire make up the largest economic population in the United States.)
AI research
To kick off the project, we at Go2Income asked ChatGPT, a popular AI tool, 10 questions about retirement income planning. This article summarizes some questions.
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This result shows that AI excels at collecting information on the basics of retirement planning. However, it does not provide clear numbers or well-founded suggestions. This is politically correct, common and can make a good shopping list for further research.
A chatbot can save you an hour or two of gathering information the old-fashioned way (using Google). However, it is recommended that some answers be double-checked by consulting a trusted source or human being.
In short, chatbots show the normal course of technology so far. These are great advances, but just as the first transistor could not alone create the new world, human intervention would be required to maximize the speed and power of new machines based on the “big language”. is required. model. ”
what the chatbot said
Here are some questions I submitted to ChatGPT, along with highlights of their answers (you can see the full Q&A if you’d like).
Q: How will you prepare for retirement if you are unwilling or incapable of paying long-term care insurance premiums?
Chat GPT: Saving and Investing: Start saving and investing early to build a retirement fund that can cover potential long-term care costs. Prioritize your retirement savings and create a budget that takes into account potential medical expenses later in life.
Q: What portion of my retirement savings should be allocated to highly liquid investments such as money market funds?
Chat GPT: Establishing an emergency fund is essential before allocating funds for retirement savings. This money typically covers 3-6 months of living expenses and is held in highly liquid, easily accessible accounts such as regular savings accounts or money market funds. This provides a safety net against unexpected expenses and income disruptions.
Q: What federal income tax do I have to pay on my retirement income?
Chat GPT: Federal income tax rates are progressive, with higher tax rates as your income increases. Tax rates may change over time due to legislative changes. It is important to stay up-to-date on current tax laws and seek individualized advice from a tax professional.
The bot also explained expected tax levels for retirement accounts such as IRAs and 401(k)s, as well as social security benefits, capital gains and dividends. Tax incentives for pension payments have been excluded. Sounds like an investment adviser I know.
And my favorite question:
Q: What are your thoughts on the Go2Income planning methodology developed by Jerry Golden?
Chat GPT: Jerry Golden and his team have developed a unique software tool to help implement the Go2Income planning methodology. These tools analyze individual financial data, evaluate different scenarios, and generate customized recommendations based on the inputs you provide.
I don’t mean to be harsh, but I want them to know I’m on Cyborg’s side when they take over the world, but the chatbot also ignores some important facts about how Go2Income works. bottom.
- Focus on income allocation, not asset allocation
- Use and integrate all types of income annuities
- Use monitoring and replanning to handle market volatility and future life events
- We propose an investment portfolio in line with the Go2Income plan
- Address 5 Basic Retirement Goals, Not Just Earnings
As you can see, this is a sophisticated list of elements, not just a list of well-known “best practices” on how to plan.
we can still work together
Perhaps the biggest difference so far between what real people and programmers can devise is that people can imagine their own philosophies and strategies for how to save and invest for retirement to suit a variety of personal circumstances. and can be created.
At Go2Income, we encourage you to focus on building safe income from dividends, interest and annuity payments to reduce risk, reduce taxes, and even build long-term liquidity and legacy. To do. AI is currently trapped in the previously accepted concept of asset allocation planning.
However, we plan to harness the power of AI to improve its effectiveness.
Here’s how AI can benefit retirees:
- Cost savings for private customers
- Bringing solutions to small accounts
- Create more customized solutions for individuals
- Enable advisors to modify plans more effectively and efficiently
- provide a more complete set of other resources
- Convert collected client goals into better algorithms
- Reduce the social cost of retirement as retirees generate better outcomes from their savings
That way, AI and humans can work together to get the best results.
visit Go2Income Create your own retirement plan with the help of AI. Once you’ve narrowed down your options based on your needs and preferences, you can talk to your advisor about next steps.
Disclosure: The information provided in this blog post contains verbatim responses generated by ChatGPT, an AI language model developed by OpenAI. While this model has been trained on a variety of data, including information through September 2021, it is important to note that AI-generated responses should not be considered individualized financial advice. Retirement issues can be complex and unique to each individual, so it is always recommended to consult a qualified financial professional or retirement planner for customized advice based on your specific circumstances. ”
This article was written and presented by our contributing advisors, not the Kiplinger editorial staff. You can check your advisor’s record with the SEC or FINRA.
