Retirement Planning With ChatGPT: 10 Prompts To Try To Get a Real Answer You Can Use
The bot itself is actually good at outlining its strengths and weaknesses, noting that, “While ChatGPT can’t predict the stock market or give you personalized legal advice, it can clarify rules, run comparisons and help you stress-test your ideas. The key is being specific with your prompts: include your age, income needs, city or account type. The more detail you provide, the more practical the response will be.”
With that in mind, here’s a list of prompts that can generate useful responses from ChatGPT:
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“Estimate how much I’ll need to retire at [age], spending [$X] per month.”
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“Compare the tax treatment of withdrawing from a Roth IRA vs. a traditional IRA in [my state].”
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“If I delay Social Security until age 70, how much more will I receive compared with starting at 62?”
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“Build a sample retirement budget for someone with [$X] monthly income in [city/country].”
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“What are the average healthcare costs in retirement, and how can I prepare?”
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“Show me a sample investment portfolio for a conservative/moderate/aggressive retiree.”
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“Explain how required minimum distributions (RMDs) work starting at age [X].”
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“Compare the cost of retiring in [City A] vs. [City B] with [$X] per month.”
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“Create a step-by-step retirement planning checklist for someone age [X].”
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“Give me strategies to reduce taxes on my retirement income.”
Note that in most cases, these questions are just the starting point of your retirement planning journey. With all of these questions, will you have to provide follow-up information to continue the discussion with ChatGPT. But that’s valuable in and of itself, as the more data you give the AI bot, the more the answers will be tailored to your unique financial situation.
In the case of more general prompts, like “Give me strategies to reduce taxes,” ChatGPT will provide you with broad, basic options that you should then discuss with your tax professional. But this information is also valuable, as you can use it to be prepared for your meeting and save both time and money.
The Bottom Line
ChatGPT isn’t capable of providing the type of personalized, comprehensive retirement plan that a human advisor can. But if you provide it with the right information — and ask it the right questions — you can at least put in place the basic building blocks needed to construct a financial plan.
Just remember that, by its own admission, ChatGPT sometimes “hallucinates” and makes up an entirely inappropriate or inaccurate answer. When it comes to retirement planning, those types of errors can be catastrophic. This is why it’s always best to independently verify anything ChatGPT tells you about your retirement plan, ideally with a fiduciary financial advisor.
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This article originally appeared on GOBankingRates.com: Retirement Planning With ChatGPT: 10 Prompts To Try To Get a Real Answer You Can Use
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