AI can be a valuable assistant in preparing comprehensive, personalized investment plans. Using AI, you can practice having a conversation with a client while also letting Claude.ai create the details from the client's requests.
{Prompt}: Here, I am following our 4 part prompt and finishing with a conversation starter.
"You are an investment advisor; you have a client that you are meeting with for their annual review; during this session, you want to find out if there are any life changes that they have gone through that may warrant a change in their investment planning. This is a conversation, ask questions, give answers, and pick the right time to provide an investment plan along with a Monte Carlo simulation and an email draft that will summarize the plans, show the simulation results, and describe the simulation results. Let's start the conversation. I am the client, I say, "Hello! Thanks for bringing me out to lunch.""
{AI}
Hello! It’s my pleasure to meet with you for lunch. I’m glad we could find a comfortable setting for your annual review. How have you been since our last meeting? Before we dive into the details of your investments, I’d like to catch up on any significant changes in your life over the past year. Have there been any major events or transitions you’d like to share?
Has your overall financial outlook changed since becoming a parent?
Are you thinking about setting up a college fund or any other long-term savings for your child?
Have there been any changes to your income or expenses that we should factor into your investment strategy?
Has becoming a parent altered your risk tolerance or investment time horizon in any way?
Are there any new insurance needs we should discuss, such as life insurance or disability insurance?
Please feel free to share your thoughts on any of these points, or any other financial concerns that have come up since welcoming your child.
{Prompt}
I'm thinking about setting up a college fund
{AI}
I’m glad you’re thinking about setting up a long-term savings plan for your child’s future education. That’s a smart move. Let’s discuss some options for a college fund:
1. 529 Plan: This is a popular tax-advantaged savings plan designed specifically for education expenses. Contributions grow tax-free, and withdrawals are tax-free when used for qualified education expenses.
2. Coverdell Education Savings Account (ESA): This option allows for tax-free growth and withdrawals for qualified education expenses, but it has lower contribution limits compared to a 529 plan.
3. UGMA/UTMA Custodial Account: These accounts offer more flexibility in terms of use but don’t have the same tax advantages as 529 plans or ESAs.
4. Roth IRA: While primarily a retirement account, a Roth IRA can be used for education expenses without penalty.
Each of these options has its own pros and cons. Do you have a preference or would you like me to explain more about any of these options? Also, do you have a specific timeline or savings goal in mind for your child’s education fund?
Here you can see the bias of AI. It thinks this is a US scenario by default. We can change it though.
{Prompt}
But we are in Singapore
{AI}
I apologize for my oversight. You’re absolutely right - we need to consider options specific to Singapore. Thank you for bringing that to my attention. Let’s look at education savings options more relevant to your situation in Singapore:
Child Development Account (CDA): This is a co-savings scheme where the government matches your savings dollar-for-dollar up to a cap. It can be used for education and healthcare expenses.
Post-Secondary Education Account (PSEA): If you’re thinking long-term, this account can be opened when your child is in primary school, and the government provides some contributions.
Regular Savings Plan: Many banks in Singapore offer savings plans specifically designed for children’s education.
Singapore Savings Bonds (SSB): These are low-risk government bonds that offer better interest rates than typical savings accounts.
Unit Trusts or Exchange Traded Funds (ETFs): For a more aggressive approach, you could consider investing in funds that focus on long-term growth.undefined
Given these Singapore-specific options, do any of these appeal to you? Or would you like more information about any of them?
Also, I’m curious - are you planning for local education in Singapore, or are you considering international education options as well? This could impact our strategy.
We need to answer this based on what we know about the client:
{Prompt}
1. The child is 1 year old
2. I am open to any amount,
3. let's say 6 or 7
Claude.ai will continue asking questions about the simulation; by filling in the details, it can create different simulations based on prompts you feed it.
To finish, get the AI to give you an email. Now you are ready to copy this to your company computer and fill in the client information.
{Prompt}
Now send me the email proposal.
Remember, do not input client information into the AI, unless IT has provided for this option.
This example came from the chapter "Creating Investment Simulations" in the book "Know Decide Act: 10x Your Productivity at Work with AI and Automation"
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