On the Money: Can AI Plan Your Retirement?

On this episode of "On the Money," Paul Ruedi, David Ruedi, CFP®, Ryan Repko, CFP®, and Dr. Fred Giertz ask AI models retirement planning questions and critique the answers.

 

(3:08) Asking ChatGPT and Claude retirement planning questions

(4:32) Question 1: 62 Year-old couple with 1.5 million portfolio, 60% stocks 40% bonds. Expect 55,000 a year combined Social Security. Want to spend $120,000 per year. Can we afford to retire today?

(13:41) AI will confidently tell you things that are wrong

(17:33) Question 2: I retired last year with 2 million invested, 70% stock, 30% bonds. I’m withdrawing 90,000 adjusting for inflation. Suppose a large temporary decline comes along next year. Do I sell stock or stay invested?

(28:00) Question 3: I’m 62 eligible for $2200 per month in Social Security today. If I wait until 70 I’ll get about $4,000 per month. My wife is 60 and her benefit will be much smaller. Should I claim now or wait until 70?

(31:26) Ask AI which questions to ask

(35:15) Question 4: I’m 68 and have $1 million invested. My financial advisor charges me $10,000 per year, but just discovered I can invest in low-cost index funds for almost nothing. Why should I continue paying a financial advisor when I can just use AI to make decisions?