Tax Efficient Retirement Withdrawals: Chat-GPT vs. Human Expert

Which yields the lowest tax paid?

How To Make Tax Efficient Withdrawals From Your Retirement Account - Retirement Daily on TheStreet: Finance and Retirement Advice, Analysis, and More



We still don’t know because neither the computer nor the person addressed any specific set of facts. That’s where the rubber meets the road.

I’m not surprised that the computer did a decent job on the basics. It was a good overview for someone who knows next to nothing about the topic. And I’m impressed by the financial advisor’s knowledge of taxes. That is likely not the norm for most financial advisors.

But once that general knowledge is imparted, you need to get to the specifics for individual situations.

At the general level, one thing that I think both the computer and the human under-emphasized is that you need to ask the question about tax efficient withdrawals every year. Each year can have a different answer about taking retirement distributions. It is good to have a general multi-year plan, but the specific facts of each year can adjust the longer term plan for that year.



Were I twenty years younger and retired, the Chat-GPT observations might have some relevance. At age 78 and 8 years of Required Minimum Distributions, there is no actionable information provided by Chat-GPT on how to make tax efficient retirement withdrawals.

There are numerous articles regarding the negative aspect of the sequence of return risks but not any about the positive aspect that I have experienced between 2013 when I retired at age 68 and 31 DEC 2021. Basically, the only thing worthwhile from the Chat-GPT article is using Qualified Charitable Distributions. The size of my RMD makes it impossible to use any of the other withdrawal suggestions.


Ok, I’ll say it. “Good for you”.

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