I’ve been playing with AI again and this time I asked it about various financial retirement scenarios but this one feels worthy of sharing.
Background: I asked ChatGPT to allocate the following buckets of money from various retirement accounts from whatever ETFs it thought was best.
- IRA: $1.5 million
- Roth: $250k
- Cash: $250k
The table below represents how ChatGPT allocated the funds for growth and income.
| Bucket | ETF | Name | Allocation (%) | Allocation ($) | Rationale |
|---|---|---|---|---|---|
| IRA | VTI | Vanguard Total Stock Market ETF | 30% | $450,000 | Broad exposure to U.S. equities for growth. |
| IRA | QQQ | Invesco QQQ Trust | 15% | $225,000 | Exposure to top-performing technology stocks. |
| IRA | IJH | iShares Core S&P Mid-Cap ETF | 15% | $225,000 | Mid-cap exposure for additional growth potential. |
| IRA | SCHD | Schwab U.S. Dividend Equity ETF | 20% | $300,000 | High-quality U.S. dividend stocks for income and moderate growth. |
| IRA | VNQ | Vanguard Real Estate ETF | 10% | $150,000 | Real estate exposure for income and potential inflation hedge. |
| IRA | TLT | iShares 20+ Year Treasury Bond ETF | 10% | $150,000 | Bond exposure for income and portfolio diversification. |
| Roth | VUG | Vanguard Growth ETF | 40% | $100,000 | High-growth large-cap stocks for long-term appreciation. |
| Roth | SPGP | Invesco S&P 500 GARP ETF | 20% | $50,000 | Growth-at-a-reasonable-price stocks for a balanced growth strategy. |
| Roth | IJH | iShares Core S&P Mid-Cap ETF | 20% | $50,000 | Mid-cap stocks for additional growth potential. |
| Roth | ARKK | ARK Innovation ETF | 20% | $50,000 | High-growth, innovation-focused stocks with high appreciation potential. |
| Cash | JEPI | JPMorgan Equity Premium Income ETF | 30% | $75,000 | Income-focused with exposure to U.S. equities, suitable for generating steady cash flow. |
| Cash | SCHD | Schwab U.S. Dividend Equity ETF | 20% | $50,000 | Tax-efficient, high-quality U.S. dividend stocks. |
| Cash | VYM | Vanguard High Dividend Yield ETF | 20% | $50,000 | High-yield U.S. dividend stocks, tax-efficient. |
| Cash | MUB | iShares National Muni Bond ETF | 15% | $37,500 | Municipal bonds for tax-free income. |
| Cash | IJR | iShares Core S&P Small-Cap ETF | 15% | $37,500 | Small-cap stocks for growth potential with favorable tax treatment for long-term gains. |
The AI generated portfolio generates the following in dividends:
- Traditional IRA: $2,643.75
- Roth IRA: $ 158.33
- Cash Brokerage: $ 850.00
- Total: $3,652.08
I think this is worthy because the portfolio tends to look a lot like what Bogleheads suggest on their three fund portfolio with some nuances. I liked what it produced except I don’t think ARKK is something I would want in my portfolio.
I actually created a different portfolio from my own ETF pools with AI and came up with a monthly dividend outlay of $4872, far better than AI’s chosen portfolio but my portfolio may not grow as much as AI’s.
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What do you think? Let me know in the comments below.