009 // ChatGPT Gives Financial Advice

Sam and Adam Day, Senior Wealth Advisor for Wealthquest take a dive into AI by asking ChatGPT or Bard financial questions. We examine the answers and Adam shares whether he agrees or not. We talk about whether money makes people happier, the first steps of DIY financial planning, and more.

AI can be helpful, but can’t really replace a human professional. There are quite a few things that aren’t too bad. Stay tuned to learn if AI can be your financial advisor or at least start getting you pointed in the right direction.

Episode Highlights:

[03:23] Question #1 Will having a lot of money make me happy? Wealthier people tend to be happier, but prioritizing money over time can have an opposite effect.

[04:38] According to Adam, there is a certain amount of money that makes you happier.

[06:43] What's the first step for someone new to financial planning? Take stock of your current situation.

[09:59] Once you get past the first couple steps you really need a human advisor. Everyone's situation and goals will be different.

[11:07] What makes a good financial advisor? Knowledge, competence, and being able to explain things clearly make a good advisor. Sam asks AI about tax law and tax harvesting.

[12:11] The AI response is that tax law harvesting is using losses to offset gains. AI did a good job at breaking it down for a six year old.

[15:19] Best ways to save on taxes as a married couple with three children under 10 years old. Answers include claiming the child tax credit, claiming dependent care credit, contributing to a 529 plan, making pre-tax contributions to your retirement savings account, and taking advantage of tax deductions and credits.

[16:48] The AI failed to point out charitable deductions and itemizing.

[18:58] Sam asks Adam a question about estate planning and what documents the average person needs.

[21:18] Should I see an attorney or try online software? There are pros and cons. Online can work for a simple situation.

[23:03] AI shares Sam's best investment advice including starting early, investing for the long term, diversifying, investing in low cost index funds, rebalancing your portfolio regularly, don't panic sell, and speak with a financial advisor.

[25:22] Having a real advisor can help you not to panic sell.

[25:39] Adam has AI give Warren Buffett's best investing advice and compares it to Sam's. Invest in yourself! Don’t lose money. Invest in businesses you understand. Be patient.

Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.

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