Recession-proofing one’s retirement portfolio is a pressing concern that many individuals face. While seeking advice, options such as financial advisors and AI programs like ChatGPT come to mind. However, there are significant differences in the advice each provides. ChatGPT offers generic advice such as diversifying the portfolio, building an emergency fund, reducing investment risk and minimizing debt. While financial advisors endorse ChatGPT’s general recommendations, they suggest clients also seek specific recommendations tailored to their financial situations. ChatGPT’s vagueness in terms of lacking context and specifics is a drawback that financial advisors overcome with their personalized input. The best way to get a comprehensive picture is to use ChatGPT for a basic outline and then use a financial advisor for personalized recommendations.
Nicholas Bunio, a certified financial planner with Retirement Wealth Advisors, critiques ChatGPT for failing to include various crucial factors and lacking context. AI programs like ChatGPT are not in a position to offer professional financial advice and tend to generate generic responses that do not cater to a person’s specific financial situation. Financial advisors provide tailored advice for specific financial situations, specializing in their area, which AI is unable to replicate. Therefore, the best option is to utilize the strengths of both and create a well-rounded approach. Severe recessions are usually accompanied by job losses and stock market drops, and ChatGPT advises that staying informed and flexible, and considering conservative investment options will be useful.
ChatGPT is an AI program used for language processing and conversation. It can respond to a user’s input and questions while providing suggestions and recommendations on a variety of subjects.
Nicholas Bunio is a certified financial planner and a financial advisor with Retirement Wealth Advisors in Pennsylvania. He provides personalized advice based on an individual’s financial situation and requirements.
