I Asked ChatGPT To Come Up With the Best 401(k) Plan for My 50s — Here’s What It Said

Your 50s are erstwhile status readying gets real. You tin yet spot the decorativeness line, but you’re besides moving retired of clip to hole mistakes. I asked ChatGPT to laic retired the champion 401(k) strategy for idiosyncratic successful their 50s who wants to discontinue comfortably.

The reply was amazingly actionable and focused connected maximizing the advantages you get successful this circumstantial decade.

ChatGPT started with the astir important move: Contribute arsenic overmuch arsenic possible, including catch-up contributions.

Once you crook 50, the IRS lets you adhd other wealth to your 401(k). For 2025, the regular publication bounds is astir $23,000. Add the catch-up publication of $7,500 and you tin enactment distant $30,500 full per year.

If you can’t deed the maximum, ChatGPT recommended aiming for astatine slightest 15% to 20% of your income. Or summation your publication by 1% each six months until you get there.

ChatGPT explained that each other dollar you put successful your 50s compounds rapidly due to the fact that you apt person higher income present and less years earlier withdrawal. Contributions made during this decennary often extremity up being 30% to 40% of your full nest egg.

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Your 50s are not the clip to beryllium 100% successful stocks. But you shouldn’t spell excessively blimpish either.

ChatGPT recommended a balanced allocation of 60% to 70% stocks and 30% to 40% bonds oregon unchangeable worth funds. Within stocks, purpose for 40% to 50% U.S. ample cap, 10% to 20% planetary and 5% to 10% tiny oregon mid-cap stocks.

The reasoning made sense. You inactive request maturation to bushed ostentation implicit the adjacent 20 oregon 30 years. But a large marketplace clang close earlier you discontinue tin beryllium devastating if you’re excessively heavy invested successful stocks. The balanced attack gives you maturation imaginable portion protecting against catastrophic losses.

If managing a portfolio feels overwhelming, ChatGPT suggested utilizing a target-date money acceptable for 2035 oregon 2040 depending connected erstwhile you program to retire.

These funds automatically set your allocation. You get much stocks present portion you tin grip volatility, past much stableness arsenic you attack retirement. The money rebalances itself without you having to bash anything.

For radical successful their 50s who don’t privation to actively negociate investments, this is often the smartest option.

ChatGPT was wide connected the value of taxation diversification successful your 50s. If your leader offers a Roth 401(k) option, usage it.