Can ChatGPT be a good financial advisor?

As a financial advisor, you're familiar with complex financial concepts that might be foreign to your clients. ChatGPT can help you simplify these terms and communicate them in plain language that your clients can easily grasp .

How much money do you need to retire with $100,000 a year income?

So, if you're aiming for $100,000 a year in retirement and also receiving Social Security checks, you'd need to have this amount in your portfolio: age 62: $2.1 million . age 67: $1.9 million . age 70: $1.8 million .

Where is the safest place to put your retirement money?

The safest place to put your retirement funds is in low-risk investments and savings options with guaranteed growth . Low-risk investments and savings options include fixed annuities, savings accounts, CDs, treasury securities, and money market accounts. Of these, fixed annuities usually provide the best interest rates.

Can ChatGPT answer financial questions?

You can utilize ChatGPT to build a question-answering system for financial data . You might ask it questions like "What was the total revenue last quarter?" or "What is the trend in operating expenses?" and it can generate responses based on the data it has been trained on, providing quick and precise insights.

What is the failure rate of financial advisors?

It's an investment. Failing to generate leads can lead to stagnant growth or a decline in business. 2. The Statistics: 80-90% of financial advisors fail and close their firm within the first three years of business.

How long will $400,000 last in retirement?

Safe Withdrawal Rate Using our portfolio of $400,000 and the 4% withdrawal rate, you could withdraw $16,000 annually from your retirement accounts and expect your money to last for at least 30 years . If, say, your Social Security checks are $2,000 monthly, you'd have a combined annual income in retirement of $40,000.

At what age should you get out of the stock market?

There are no set ages to get into or to get out of the stock market . While older clients may want to reduce their investing risk as they age, this doesn't necessarily mean they should be totally out of the stock market.

What to do if you are 60 and have no retirement savings?

If you retire with no money, you'll have to consider ways to create income to pay your living expenses. That might include applying for Social Security retirement benefits, getting a reverse mortgage if you own a home, or starting a side hustle or part-time job to generate a steady paycheck .

What is the number one retirement mistake?

1) Not Changing Lifestyle After Retirement Among the biggest mistakes retirees make is not adjusting their expenses to their new budget in retirement.

What is the #1 reported mistake related to planning for retirement?

Answer: Underestimating the impact of inflation. Underestimating how long you will live.

What is a common mistake people tend to make in retirement planning?

Some common retirement mistakes are not creating a financial plan and not contributing to your 401(k) or another retirement plan.

How can a financial advisor use ChatGPT?

Client Outreach: A financial advisor can use AI tools to streamline copy for client outreach, personalizing it for each person . The more data you feed into the tools, the more it can help you personalize your own tone and information directly to your client.

Can AI replace your financial advisor?

If a client wants to check in on routine questions, an AI may be able to handle that level of customer service. Artificial intelligence won't replace financial advisors , but it might streamline the practice considerably.

Retirement Planning with AutoGPT: The Informal Future of Investment Advisory (2024)

AutoGPT is an open-source Python code using Open AI’s GPT4. Unlike ChatGPT, which requires human intervention at every step, AutoGPT can “self-prompt” and find additional information from its knowledge base or the web (depending on the application). It is supposed to be a step towardsartificial general intelligence. They are also referred to as Task-Driven Autonomous Agents.

Earlier, we pointed out that ChatGPT can be a game changer in personal finance and will change the nature of investment advisory or financial planning. Regular readers may know that we are trying or training various GPT-based chatbots on freefincal articles (links in the above-mentioned article). An account of our efforts and thoughts was recently mentioned in the Economic Times: Investing via ChatGPT: How AI empowers individuals and institutions to navigate financial markets.

At the time of writing, we are aware of three places one can try out AutoGPT or something similar. Both require an API key from Open AI and will cost a few dollars for each task.

godmode.space This can surf the web but will require the user to approve each step it wishes to take. This can get annoying pretty soon. For the questions we put, we were not confident that it was making logical progress.
AgentGPT This cannot surf the web as of now, and we have options to use either GPT 3.5 or GPT 4 (considerably more expensive but more recent and accurate). GPT 4 API access requires one to be on a waitlist. We used GPT 4. The best part is no human intervention is necessary, but the worst part is even after completing the task (or one version of it), the code keeps going! So if you leave it on and forget about it, you will lose money! The retirement planning transcript below uses this app.
BabyAGI This can access the web. We have not tried this.
cognosys.ai This can browse the web and does a pretty good job. We tried this only after the article was scheduled for publication (I can’t keep up with all the AI news!). So the transcripts for retirement planning and “best mutual funds” are linked in the appendix. This shuts down on its own and fast!

This is a Twitter thread on some AutoGPT use cases. These are still in early beta and require a lot of kinks to be ironed out. However, I have seen enough evidence that this will be the future of investment advisory. It will be conversational or casual. Users can ask questions in normal English, and the bot will understand what needs to be done and iteratively comes up with a technical answer.

Will the answer always be right? Of that, there is no guarantee, but the results in a well-established space like financial planning are pretty impressive.

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From robo advisory (with human-set rules), we are poised to move towards AI advisory (with code-set rules). Rules here refer to paths and diversions the advisory would take.

We do not claim this is going to happen overnight. There are a lot of issues to be set right. However, we must appreciate that this is a pretty strong possibility.

It is only a matter of time before AutoGPT learns day trading (if not already done by some!). We can let it loose on the markets subject to several stop-loss conditions in place.

Retirement Planning with AutoGPT

We started with GodMode and asked it, “Help me plan for retirement”. It assumed I was in the US and kept asking me to approve its choices of websites to learn from. I then asked, “Help me plan for retirement in India using websites in India”. The searches were a lot more relevant but not making enough progress. The repeated need-to-approve steps got to me, and I gave up on the app.

So I moved to AgentGPT, and this time I decided to be more specific (but not too specific). We will start with attempt 2. This ended quickly (but the app kept running iterations, so it needs to be shut down else we will bleed API costs). The output of attempt 1 is much longer (as the question is vaguer) and is placed in the appendix for those interested.

Appendix

(1) Attempt 1: You are PatGPT. Help me plan for retirement in India. I want you to search only sites based in India or covering investing rules in India. I am 35 years old and wish to retire by age 55. I can save about 50% of my monthly expenses. My risk appetite is moderate.

This question has less information than the second attempt, but the results (again, not perfect) are still impressive.

AutoGPT Retirement Planning Transcript for Attempt 1 This is a large text file (will open in a browser) with about 14,000-plus words! But it is still an interesting read! It has a detailed asset allocation plan.

(2) Cognosys-autogpt-retirement-planning transcript

(3) Cognosys _best mutual funds in India_ transcript.

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About The Author

Dr. M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over ten years of experience publishing news analysis, research and financial product development. Connect with him via Twitter, Linkedin, or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation promoting unbiased, commission-free investment advice.

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Retirement Planning with AutoGPT: The Informal Future of Investment Advisory (2024)

Retirement Planning with AutoGPT

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