An Experian Survey shows 1 in 3 respondents say they’ve used AI to learn about new topics or finances, with 96 percent of the respondents report positive experiences, using AI chatbots, such as Chat GPT, for their quick reference.
Chatbots are handy when you need a quick answer for almost any topic you can imagine, but when it comes to your finances, Glasgow Investments Financial Planner, Ron Glasgow, says there are a ton of factors to consider when investing.
“Do you have a 401 K availability, should you buy and start your investments in your 401 K to your work sponsored plan- those are things that Chat GPT and AI just aren’t going to configure right now. “Glasgow said.
He says AI and chat bots have their role. For example, if you need to look up the national contribution limits for 401 K or an IRA it’s a very useful tool, but you have to know their limits. Also, long term with changing market conditions, factors like dividend reinvestments, taxes on gains, trading costs and spreads, corporate actions, or inflation- the chatbots are not taking these factors into account.
Glasgow says if you want to handle your investments on your own, he recommends using the Monte Carlo simulation runs thousands of calculations showing potential stock market moves to show you what the probability would look like- whether you will have a successful or negative experience.
“Like anything in life, the easy way is almost never the best way. I recommend you find a financial professional to at least walk you through the basics, because there are a million factors to consider. With all your investments, you have a tax bill. Do you want to pay that tax bill today? Do you want to put it in a Roth, so you never have to pay for it? All those things matter. Make sure your broad based and diversified. “He said.
AI and Chat GPT are handy! No doubt, but when it comes to your checkbook, seek advice from professionals in the industry. Chatbots can offer handy bits of information, but nothing too heavy. On a side note, Glasgow, says, above all else- don’t wait to invest in your future. “The most important thing, by far, get started early! Don’t wait until your 5 years at a job, even if it’s $50.00 a month- put that 50 dollars into an account.” He said.
Chat GPT are useful tools, don’t get me wrong, quick info at your fingertips. However, if it’s financial advice you need, make sure to do your due diligence. You will be happy you did.