Can ChatGPT Plan Your Retirement?? | Andrew Lo | TEDxMIT

What does it take for large language models (LLMs) to dispense trusted advice to their human users? Three key features: (1) domain-specific expertise; (2) the ability to tailor that expertise to a user’s unique situation; and (3) trustworthiness and adherence to the user’s moral and ethical standards. These challenges apply to virtually all industries
and endeavors in which LLMs can be applied, such as medicine, law, accounting, education,
psychotherapy, marketing, and corporate strategy. In this talk, Prof. Lo focuses on the specific context of financial advice, which serves as an ideal test bed both for determining the possible shortcomings of current LLMs and for exploring ways to overcome them.

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[nicolasbenson]

I think the retirement crisis will get even worse. A lot of people can’t save because of low paying jobs, inflation, and insane rental rates. And now that home ownership is out of reach for middle class Americans, they won’t have a house to retire with either.

[Patrick_Felipe]

Let me save u some time - jus go to the last minute!

[greekbarrios]

My retirement account has gone up only by 2% in the past year due to rebalancing I did out of fear uncertainty and doubt. What are best alternatives to take in other to secure a financially free retirement and achieve ultimate peace? I don’t want to fail after 22 years of working hard.

[BillyCarsley]

Not sure if this was made clear, but I was choosing between A/B and C/D independently, not together.

[Mythos]

Fiduciary duty is a bit different. It is more an inverse rule that says the FR can choose an investment that optimizes his/her outcome as long as the client is not worse off by the choice. This is a big problem in the industry as the fiduciary is in the client math.

[thetradersam]

being using ChatGPT to solve financial problems for over a year and is fairly accurate..

[dGooddBaddUgly]

@15min6sec. Does this mean we are going to use LLM and make them as selfish and human behavior? They will understand greed, fear, optimism and more feeling and make decisions based on that. Computers can take irrational decisions if they experience these human traits and will fight for its survival anyway possible to eliminate existential threats one way or the other.

[knightfamily]

I wonder(I don't know) if LLMs can be taught to understand what to do for their clients when there are changes to things like tax codes and laws which they haven't been "trained" on.

[Mr.Eeeeeeeee]

I run Monte Carlo simulations on Claude, ChatGPT, and other AI platforms. They are really good.

[BenUK]

Another point, regarding the Alignment issue. Why would we want LLMs to copy what humans do, including their mistakes. Just because humans accept a 40% offer on average doesn't make this the mathematically optimal number (I have no idea what the optimal number is). Humans are flawed... I don't want an AI advisor to intentially mimic those flaws, I'd want it to do a better job than a human, if possible.

The video seems to suggest that by mimicing humans (Or aligning) that they would meet their fiduciary duty, which indirectly implies that if they gave better advice than a human advisor typically would then they would not be meeting the fiduciary duty criteria. I'm not convinced by this argument... and even if it is true then it implies that the rules/criteria are the problem. We shouldn't make systems that meet the flawed criteria, but rather should update the criteria for the modern AI age.

[pyrzpff]

The expected value of option D (-1 M at a chance of 75%, 0 otherwise) is 750, 000 not 760, 000.

There are many other mistakes on that same slide. Option A is 240k @ 100%, not at 25%. Option B is not "250k @ 25%". It's "1M @ 25%".

The expected value of A + D vs. that of B + C is not 10 k "for sure". You could be lucky or unlucky in both cases.

Sounds like he had the same stats professor as Andrew Huberman (whom I generally admire).

[ruasmadasme]

He said we learn on the playground "do unto others as others do unto you".... I really hope this is not what people are learning! We are supposed to learn to do unto others as we would have others do unto us

[wildfoodietours]

ChatGPT and AI are game changers. Hello, new world!

[Daacad.]

" those who have the gold usually make the rules"

[Lisa-jybk]

We Are in Unchartered Financial Waters! every day we encounter challenges that have become the new standard. Although we previously perceived it as a crisis, we now acknowledge it as the new normal and must adapt accordingly. Given the current economic difficulties that the country is experiencing in 2024, how can we enhance our earnings during this period of adjustment? I cannot let my $680, 000 savings vanish after putting in so much effort to accumulate them.

[vjr]

Haha if you are a multimillionaire pick B, if you make 50k/y pick A, that simple. Keep in mind you can have “bad luck” and get zero 7 years in a row

[orsations]

Entertaining, but for someone to make money in the stock market, someone has to lose money in the stock market.