Anywhere in the United States, retirement is a very important time and the 401(k) can be part of the golden years for United States citizens. This type of retirement makes life much easier for citizens who don’t get a huge Social Security check.
However, it is true that the 401(k) is a risk in many ways. This type of pension is not a traditional pension, i.e., it is not like a Social Security check that all working beneficiaries know will have certain benefits in the future.
Having a 401(k)-related retirement plan involves having an investment-based retirement plan. Since those investments are not stable we could lose some of our money invested in it.
What is true is that if we play our cards right we could get a lot of money to use during our retirement. And not only that, but the investment would be relatively low in relation to the gains afterwards. And this is where the IA could help us, since, based on algorithms, it could give us some indications.
HOW TO USE AI TO EARN MORE MONEY IN 401(K)?
First of all, it is important to keep in mind that the 401(k) always involves a risk. Every citizen who decides to use this type of retirement plan should know that things might not work out as well as expected. Likewise, using the IA in these cases also carries some risk.
Among the tools that AI can offer, there are several aspects. Artificial Intelligence expert Raúl Valdés-Pérez has combined several tools to improve performance in certain aspects. This tool is called BenchMine and it helps determine where it is best to put our 401(k) money.
Thanks to BenchMine, we can compare 60,000 or so plans and pull out the essential data to see which ones are the most effective. While it is true that each company then decides what the final investment will be, having all of this data and extracting which ones are the most effective helps a lot.
IS IT RELIABLE TO USE ARTIFICIAL INTELLIGENCE TO HAVE A BETTER RETIREMENT?
Everything related to our pension plan must be done with great care. According to expert Raúl Valdés-Perez, the goal of this application is none other than to help improve 401(k) performance, but you have to watch out for it.
Having access to so much data is really fundamental to later choose the most successful option, but the final word will always be up to each citizen. However, it is true that one of the best aspects of this type of tool is that it can analyze data from many places simultaneously and, at the same time, reach conclusions in a faster and more efficient way than a human being.
Still, it’s still early days for using these types of tools, but in the next few years it’s possible that every citizen thinking about a 401(k) could use some AI to learn a little more about where they should invest their retirement money.