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Originally Posted by PepsiFree
It’s also amusing because people say “I used AI” as though every AI is the same and if you’ve used one you’ve used them all. Who is saying it’s perfect?
As I said, right now it depends a lot on the training, oversight and inputs. But you’re kidding yourself if you don’t think there’s an AI out there that can either do your job better than you can or is being trained to do exactly that, and will reach a point within very short order where the quality of inputs doesn’t matter. The next step in your career is managing the AI that does your job, until it doesn’t need you to manage it. It’s a sad reality, but it is one. You’re living with your head in the sand if you’re laughing at your Roomba thinking you can’t easily be replaced.
For the AI systems we’re talking about (without any idea of what you used), the more they’re used the more they learn. Everything they do right teaches them what’s right, everything they do wrong teaches them what’s wrong.
Anyways, that’s far enough down the AI rabbit hole. The point is that “handle this yourself” is not exceedingly terrible advice, it’s the opposite. Within five years at current progress people with be laughing at people who still use financial advisors. Your only hope is government intervention.
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My only hope is government intervention? Ok. I’m more than happy to come back to this in 2029 and see how that holds up.
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Originally Posted by bizaro86
OK. So I'm not a financial advisor and don't use one. But I don't agree that this is true and not because AI couldn't manage a portfolio better.
The old-school algorithm of "buy one equity and one bond ETF and rebalance yearly" beats the vast majority of investors including both DIY and advised. Maybe AI can do better than that, but that isn't looking at the right problem.
Because that's not the value of an advisor. The value of an advisor is talking you out of selling at the bottom in 2009/2020 because the world is going to hell. If you added money to the market in late March 2020 then you don't need an advisor, imho. Everyone else does.
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I entirely disagree that you can’t just bubble ETF for bonds and stocks and rebalance. I don’t know if people want to get into the active/passive debate that comes from this. I do agree that advisors add a lot more value than just rate of return though. That’s basically undeniable both in terms of of the examples you give, but also in terms of things like structure and strategy that most people are just not aware of.