I Let ChatGPT Review My Retirement Plan: Here’s Where It Told Me To Change

Core Insights - The article discusses the importance of evaluating retirement plans and highlights the use of AI, specifically ChatGPT, to assess a retirement strategy [1][2] Group 1: Positive Aspects of the Retirement Plan - The retirement plan includes several commendable strategies such as taking full advantage of the 401(k) match, which is considered "free money" [5] - A savings rate of 10%-15% of income is viewed as solid, especially for those who started saving early [5] - The investment strategy is low-cost and diversified, which is recognized as a great default approach [5] - The plan includes forward-thinking elements like increasing contributions over time and utilizing windfalls for retirement savings [5] Group 2: Areas for Improvement - The savings targets are deemed too low, with a recommendation to aim for 4-5 times salary by age 45 instead of just three times [4] - A higher savings rate of 15%-20% of income is suggested for those who did not start saving in their 20s or 30s [5] - A more aggressive savings timeline is proposed, with specific targets of 4 times salary by age 45, 6 times by age 50, 8 times by age 55, 10 times by age 60, and 12-15 times by age 67 [6] Group 3: Tax Strategy Recommendations - The article emphasizes the importance of diversifying tax exposure by funding both a Roth IRA and maintaining a regular taxable brokerage account [7] - This diversification is recommended for greater flexibility in withdrawals and tax management during retirement [7]