Why ChatGPT is a Terrible Place for Investment Advice
Updated: Aug 3
The positive possibilities for how ChatGPT could change the world overwhelmed me the first time I saw it in action. A friend of mine needed to solve a complex problem using Excel but didn't know how to use Excel himself. I marveled at how he built a complex series of sheets that did what he needed in less than an hour.
Until recently, I thought only of the good that could come from AI, such as ChatGPT.
What is ChatGPT?
I asked ChatGPT what it is, and this is what it said: "I am ChatGPT, a large language model developed by OpenAI. I have been trained on a diverse range of internet text using a deep learning algorithm to understand and generate human-like responses to text-based inputs. I am designed to be able to converse on a wide range of topics and provide information, advice, and conversation to users."
ChatGPT has more than 100 million users within the first two months of its launch. For comparison, "It took social media app TikTok roughly nine months after its launch to build the same user base, and roughly two and a half years for Instagram to acquire 100 million monthly active users. Google Translate took six and a half years to reach that milestone." - CBS News
The Dangers of Chat GPT (AI)
We have pre-recorded a conversation with Shyam Pradheep, a former International Student of the Year at Duke University (BS in Computer Science, Finance, and Statistics), the current General Manager at Zogo, a FinTech company with an award-winning suite of innovative financial education products. In other words, he's an expert at understanding consumer behavior in the digital world.
We asked Shyam for his thoughts on ChatGPT relative to financial advice. Here is what he said:
The Modern Husbands Podcast
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Soon after, our co-host, Dr. Ross, shared ChatGPT Cites Economics Papers That Do Not Exist. Apparently, ChatGPT has been found to cite non-existent or irrelevant papers and to mix these citations with correct references. Although ChatGPT admits to citing non-existent papers when confronted, it does not provide a clear explanation.
In other words, ChatGPT can give the impression that a certain and evidence-based response is being given, but it's not. AI is lying with confidence.
"AI is one of the biggest risks to civilization." - Elon Musk
That was the first time I had considered how recent technological innovation, particularly in social media, has become a weapon of manipulation and how ChatGPT could be far worse.
How to Protect Your Retirement Investments
We hosted Skip Schweiss on the Modern Husbands Podcast to discuss investing as a couple and rules to reduce the risk of being scammed while saving for retirement.
Skip Schweiss, CFP®, AIF®, currently serves as the volunteer past president for the Financial Planning Association® (FPA®), the leading membership organization for Certified Financial Planners.
In 2020, Schweiss concluded a 12-year career with TD Ameritrade, where he most recently served as President of TD Ameritrade Trust Company and Managing Director of Advisory Advocacy. Mr. Schweiss directly influenced legislation and regulation, including the SECURE Act (2019) and the DOL Conflict of Interest Rule.
Put another way, Mr. Schweiss is a nationally recognized authority on investing for retirement. You can watch or listen to the podcast.
Podcast Show Notes
0:00-0:58 Introduction
0:58-2:45 Skips professional background
3:35-7:34 Skips insight on how beginners should start investing
7:35-12:42 The passing of the Secure Act in 2019 and what that changed
12:43-14:31 Real-world examples of how the Secure Act has helped
15:27-20:20 Department of Labor Conflict of Interest Rule
20:20-25:54 What Skip suggests you should look for in a financial planner
26:38-28:32 Websites you can use to research financial advisors
28:37-32:33 Skips financial advice for married couples
34:11-34:36 Conclusion
You can subscribe to the Modern Husbands Podcast to hear other experts share how married couples can work together to manage money and the home.
🔔 Click here to listen and subscribe to the Modern Husbands Podcast on Apple.
🔔 Click here to listen and subscribe to the Modern Husbands Podcast on Spotify.
Resources to research investment professionals
As we shared in a previous article, if you decide to get a financial planner, choose the right one for you and your partner.
SEC Action Lookup: Investing in your future means saving for retirement, college, or a rainy day fund. If you're working with an investment professional, or someone is trying to sell you an investment, check them out before handing over your hard-earned money.
Investment Adviser Public Disclosure (IAPD): Search your investment professional's background. Enter their name in our Investment Adviser Public Disclosure (IAPD) website to see if they're registered. It's a red flag if they're not! You can also check out whether they’ve ever been in trouble with securities regulators.
These 10 questions provided by the CFP organization can help you know what you will be charged when meeting with a financial planner and choosing an investment. Be sure to ask about the fees!
FPA PlannerSearch®: Interactive tool to find a certified financial planner who is a member of the Financial Planning Association.
Warn Your Spouse
We know that many folks have a tough time talking about money. We also know that lying or being deceptive with your spouse about money occurs in 40-50% of relationships, depending on the survey. It would not be outside the realm of possibility for a spouse to be hoodwinked into buying a product without you knowing, or after it's too late. The surrender charges on some of the annuity products are extraordinary.
Professional Support
If you believe the origin of problems in your marriage is related to money, please consider meeting with a certified financial therapist. Financial therapy is a process informed by both therapeutic and financial competencies that helps people.
I'm the only Certified Financial Therapist™, Accredited Financial Counselor®, and Fair Play Facilitator®, empowering high-achieving couples with systems to manage money and the home as a team — drawn from decades of national leadership and lived experience.
Click here for more details about how and when I can support you.
Follow Modern Husbands
Modern Husbands Podcast
Winning ideas from experts to manage money and the home as a team. 2023 Plutus Award Finalist: Best Couples or Family Content
🔔 Click here to listen and subscribe to the Modern Husbands Podcast on Apple.
🔔 Click here to listen and subscribe to the Modern Husbands Podcast on Spotify.
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Updated post: 9/5/23
Original post: 2/18/23
