AI pension advice

Cobbler_tone

My plan is coming together very nicely. Mainly by utilising AI for information and strategic advice/various options. I would head to AI as opposed to most of the 'advice' and wannabee experts on here TBH. Quite often to check whether you are heading along a sensible path. The basis has to be common sense, experience and being financially savvy in the first place. Without that I would use AI guardedly, check the sources and make sure you sense check and interrogate any of outputs comprehensively. I'm already heading into the world of wondering how I survived without AI…more so in other aspects of life as opposed to planning my finances.

Try it by copying in some of the long winded opening posts on any number of threads. You will see that the responses are often better than the pages that follow.

Albermarle

Probably worth pointing out at this point, that an IFA is legally liable for the advice they give.

Of course though if you take advice from an internet forum, or AI, you are on your own if it all goes T*ts up.

I get being cautious, especially if financial advice is your job, but at least try to be objective.

OP - By the way there is only one financial advisor posting regularly on this site, who makes this clear at the bottom of their posts.

I've no idea what Cfiresim is,

FIRE is a well known movement, and stands for 'Financial Independence Retire Early' , where people maximise salary and minimise spending with a view to retiring as early as possible. Of course if you retire at say 45, then you need very good confidence that your funds with last 40 to 50 years, and I think ( I have never used it) CFiresim is a calculating model that you can use to run your figures through ( one amongst many) .

Qyburn

https://forums.moneysavingexpert.com/discussion/comment/82059675#Comment_82059675

Right but 4.1% or 4.7% either way you're treating bonds aas risk free with a better return than cash. Which begs the question, if there is such a thing as bonds with a risk free 4.1% real return, what are they? And secondly why bother with cash at a worse return?

Mozza001

https://forums.moneysavingexpert.com/discussion/comment/82059935#Comment_82059935

Bonds are currently above 4% guaranteed. At least a according to AI.

Mozza001

https://forums.moneysavingexpert.com/discussion/comment/82059823#Comment_82059823

A decade averaging -1.8, when was the last time this happened?

Don't tell me the 2000 lost decade?

Bostonerimus1

A retirement plan should be based on pessimism…apart from your life span which should be optimistic. So use returns that are below the average and tack on some nasty inflation and if your plan still works you are in good shape. The danger is when you have an income goal and you try to convince yourself that you have a good plan by tweeking parameters to your advantage rather than trying to punch holes in your plan.

dunstonh

Bonds are currently above 4% guaranteed. At least a according to AI.

Bonds are broadly flat over the last eight years. In other words, they're worth what they were worth eight years ago.

A decade averaging -1.8, when was the last time this happened?

26 years ago.

Don't tell me the 2000 lost decade?

Not sure why you're so dismissive of negative periods. Everyone loves good periods, and plans tend not to go wrong in good periods. It's in negative periods when you realise whether your planning has been sensible or not.

Aug 1969-July 1979 was the worst one in real terms. That one averaged -4% a year

March 1999 to Feb 2009 was not as bad.

Also worth noting December 1961 to November 1981. That was a 20-year period that averaged 1% per annum in real terms.

Mozza001

https://forums.moneysavingexpert.com/discussion/comment/82060312#Comment_82060312

II'm Not dismissive of negative periods, I get you have to take them into account, but I'm not a person who always thinks the worse, ie the poster basing his calculations of a decade of -1.8, when in reality it's extremely unlikely.

Qyburn

https://forums.moneysavingexpert.com/discussion/comment/82060100#Comment_82060100

I wonder if you or AI are actually thinking of fixed-term cash savings accounts, which sometimes call themselves "bonds".

https://www.moneysupermarket.com/savings/fixed-rate-bonds/

Universidad

https://forums.moneysavingexpert.com/discussion/comment/82058706#Comment_82058706

I think this post strongly evidences both that AI can be useful, and also that it is most useful to people who are already experts in a given field.

If you imagine yourself as the line manager of a group of lazy, simpering idiot youths who are new to your field but desperate to impress and pretty good at looking things up, you can get a long way quite quickly. If you can spot at a glance when the wheels are coming off, you're golden.

If you use AI in a field where you are one of the jejune fools, hell mend you.