Do You Use AI for Financial Planning?

Investment Analysis Clubs Macro Economic Trends and Risks
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I follow this YouTube channel. This guy covers a lot of topics dealing with retirement and retirement planning. Latest upload was dealing with using AI for financial planning. Interesting ideas on how to use it and what to avoid. Some hilariously sad examples of the pit falls of AI.

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Youtube is for personal finance entertainment, not planning.

It takes 15 minutes to watch a video with the information contained in one 8-1/2 x 11 sheet.

intercst

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The video was quite good at prompt coaching and providing context:

  1. Add: “Tell me why my approach is incomplete” - incorrect, wrong, suboptimal, etc.
  2. Require the model to “state it’s assumptions” in the response. You can look under the hood to see what’s in - and what’s out.
  3. Follow up prompt after the “plan” is displayed. “Be an adversarial financial advisor”. Provide counterpoints that would put this plan at risk.

Numbers are numbers.
Calculations are settled.
Rules are rules.

And the library has more text than any human will ever ready. or Tax code, or SS code, or trust law…

AI shortens, simplifies and coaches.

The video is about coaching better.

AI has exposed me to an enormous body of trust law that I had no idea about.

CRUT, etc.

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And this well illustrates the problem with using AI for something like this - the end user has to be savvy enough not only with the AI prompts required to get accurate and proper results, they also need to have a sufficient enough understanding of financial planning in the first place to know when a result raises suspicion.

When small details matter, I would not want to rely on arm-chair expertise - especially when there are reasonably priced do-it yourself software and online tools that exist.

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He states that axiom in the video.

More financially savvy (+AI) ==> More profit
Less… less.

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I don’t use AI for financial planning but it certainly can give quick summary of a business area to help you identify leading companies and their competitors.

No AI does not make investment decisions but it does help you make good choices.

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I think AI is useful for organizing questions, comparing options, explaining terms, or stress-testing a rough idea. In my opinion, retirement planning has too many personal details, tax rules, and edge cases for that.

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Kevin is a solid dude, really good layman’s explanations of the different facets. Especially who should take Roth IRA conversions and when (pro tip: ultra-wealthy, starting in your late 40s when you’re already pulling in multiple $100sK a year), and taking the right level of risk in your investments.

I use AI (Perplexity or Claude, not Gemini or CGPT) to get in-depth information about specific investment types like closed-end funds, about the math behind items like take a lump-sum pension payout or take the monthly distribution for life, technical trading signals and appropriate use, and to develop portfolio performance tracking dashboards. Not for “what do you think I should do with my under $1m portfolio and an appreciated house as an empty-nester” question.