Can ChatGPT Answer Complex Investing and Retirement Questions? Let's Find Out.

Опубликовано: 11 Январь 2025
на канале: Rob Berger

12,353

446

In this video, I ask ChatGPT some questions about sophisticated investing and retirement topics. Here are a few examples:

What is the 3-fund portfolio?
Is the 4% Rule still valid?
What Fidelity funds can we use to build the 3-fund portfolio?

The responses ChatGPT returned were amazing. It's not perfect, but it's very good. And while artificial intelligence won't replace financial advisors any time soon, it definitely can be part of our own research into financial questions.

Join the newsletter: https://robberger.com/newsletter/?utm...

Here are some of the questions and answers from the video:

What is the 3-fund portfolio?

The three-fund portfolio is a type of investment strategy that involves holding a diversified portfolio of just three mutual funds or exchange-traded funds (ETFs). The three funds typically consist of a domestic stock fund, an international stock fund, and a bond fund.

The three-fund portfolio is often recommended as a simple and cost-effective way to achieve diversification and long-term growth. By holding just three funds, investors can gain exposure to a broad range of asset classes and sectors, helping to reduce the risk of investing in a single stock or sector.

The specific funds included in a three-fund portfolio may vary depending on the investor's goals and risk tolerance. For example, an investor with a higher risk tolerance may choose a domestic stock fund that focuses on small-cap stocks, while an investor with a lower risk tolerance may choose a domestic stock fund that focuses on large-cap stocks. Similarly, the international stock fund may focus on developed or emerging markets, and the bond fund may focus on different types of bonds, such as corporate bonds or government bonds.

It is important to remember that investing carries risk, and no investment strategy is guaranteed to be successful. It is always a good idea to do thorough research and consider your financial goals and risk tolerance before making any investment decisions.

What is the 4% rule?

The 4% rule is a widely-used rule of thumb for determining how much money you can withdraw from your retirement savings each year without running out of money. The rule suggests that you can withdraw 4% of your savings in the first year of retirement, and then adjust the amount for inflation each year thereafter.

For example, if you have $500,000 saved for retirement, you could withdraw $20,000 in the first year of retirement (4% of $500,000) and then adjust the amount for inflation in subsequent years.

The 4% rule is based on the idea that a diversified portfolio of stocks and bonds has the potential to generate an average annual return of around 6-7% over the long term, after accounting for inflation. By withdrawing 4% of your savings each year, you are leaving a larger portion of your savings invested in the market, which has the potential to generate returns that can help your savings last throughout your retirement.

It is important to note that the 4% rule is a general guideline and may not be appropriate for everyone. Your actual withdrawal rate will depend on factors such as your personal financial situation, the size of your retirement savings, and your expected retirement expenses. It is always a good idea to consult with a financial advisor or professional when planning for retirement to help determine the withdrawal rate that is right for you.

————————————
Investing Tools
————————————

My Book (Retire Before Mom and Dad): https://amzn.to/2MsRJ9B
Personal Capital (Investment Tracking, Retirement Planning): https://robberger.com/go/personal-cap...
New Retirement (Retirement Planner): https://robberger.com/go/new-retireme...
Stock Rover: https://robberger.com/go/stock-rover/yt-
M1 Finance $30 Bonus (IRA & Taxable Accounts): https://robberger.com/go/m1finance-bo...

#chatgpt #investing #robberger

LET'S CONNECT

Youtube:    / @rob_berger

Facebook:   / financialfreedomguy

Twitter:   / robert_a_berger

DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.

AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning at no cost to you I earn a commission if you click through and make a purchase and/or subscribe. However, I only recommend products or services that (1) I believe in and (2) would recommend to my own mom.