AUTHOR: John Katz on 2/27/2025 FIRST: Jonathan Clements on 2/27/2025 | RECENT: 1michaelm on 3/5/2025
Comments
Mark, I have been using Chat and Gemini extensively to help with my personal finance issues. Like you, I don't use them to make decisions for me, but I do use them to provide me with information/insights/perspectives that helps me make decisions. Today is as incompetent as Claude, Chat, Gemini, etc., will ever be-- and it's hardly incompetent. it will only get better each day. I'm persuaded that at least 50% of routine financial planning work done today by professionals today will disappear within five years. I do somewhat disagree with you on your conclusion: You say that Claude rarely 'solved' anything. You then go on to say that the greatest value of advisors is knowing which questions matter. Yet what Claude is doing for you and what advisors do for you are essential to you 'solving' whatever problem you're trying to solve. You ultimately solve issues by deciding what action to take given inputs from Claude, your advisor, your experiences, or from a dozen other sources. Claude sounds like it is becoming an essential partner in your financial world. Your experience mirrors mine: Knowing what questions to pose to Claude and advisors - and for Claude and advisors to ask of you - rapidly gets you to a range of solutions to consider. It's the speed, accessibility (24/7, 365 days/year), cost, objectivity, and rapidly improving quality of answers from Claude and other Large Language Models that should have the attention of financial advisors everywhere.
It's also a result of Costco checking every person's receipt with what's in their cart on the way out of the store. Based on my experience, they don't literally match the items, but they often count total items in the cart and compare it to the total number on the store receipt, which all shoppers must show to leave the store. In any case, it's a powerful deterrent to shoplifting.
Impulse buying is a consumer trait, not a Costco trait. And while it's very easy to overspend there, it's also true that it is very easy to remedy that overspend with their very liberal return policy. When people say Costco inherently encourages waste or doesn't save money, I say, "It depends on the shopper." The produce there is invariably cheaper and better than what I find at Walmart, Giant, or Safeway. I only buy what I know I can consume before it spoils—like blueberries, strawberries, salad bags, and apples. Their Dietz and Watson organic sliced turkey is also about half the price of my local supermarket's deli counter. As others have noted, Kirkland brand paper products (towels, napkins, toilet paper) are a fantastic value. Their prescription prices are highly competitive, particularly for pet medications. And yes, the Costco pumpkin and apple pies are massive. It can be hard for two people to finish them, but I always share them with my next-door neighbors, who are thrilled to get them. They don't go to waste. Similarly, cheeses like Parmigiano-Reggiano are about 40% cheaper than at Safeway or Giant, and they have a very long shelf life. Frozen fish and shrimp are terrific values there. Outside of groceries, I bought prescription eyeglasses and sunglasses there for 50% less than my local optician—and the optician at my local Costco is the best I've encountered in 50+ years in terms of recommending styles that look good on me, and making adjustments. Items like Levi's jeans are about 40-50% cheaper than retail stores. I do 95% of the shopping for my home. I split it, roughly, between Costco (40%), Walmart (35%), Giant (15%), and Safeway (10%). I know for a fact Costco saves my family money because I am disciplined and I see the prices of similar items at other stores on a regular basis. Can you overspend at Costco? Sure. But that impulse exists at any supermarket. It certainly exists on Amazon, where it’s arguably much easier to buy things from your couch than it is to drive 20 minutes to a warehouse. Every business encourages spending to survive, and Costco is no exception. I’m happy to live with the temptation of sinning in their aisles, though, as long as they keep offering absolution through their incredibly generous return policy.
While IRMMA is not technically a tax .... What people need to understand is that IRMAA is a de facto federal income tax,” Reichenstein says [retired Baylor University finance professor William Reichenstein]. “As your income goes up, you owe more to the federal government for Medicare.” Your IRMAA taxes will likely be as high—or higher—for the rest of your life, since the RMD rate gradually increases as you age. From Barron's, 6.24.26 article about taking RMDs in conjunction with social security and/or pension payments ...
A mom and dad who taught me to be disciplined, hard-working, independent, and balanced in terms of living for today and planning for tomorrow. And a wife who benefitted from a similar upbringing in her household. Other factors at work, too, but that foundation was invaluable.
I had a friend, a retired detective who took a job as a security consultant for large trade shows well into his 60s. He was busier in that job than he was in his previous 'day job.' At any rate, he said his mother very much wanted to go to Hawaii at some point in her life. She died before he took her there. He deeply regretted not taking time out to take that Hawaii trip with her. Not exactly Dennis' situation, but on the broader topic of: Listening to mom.
This is also about diminishing returns ... Gross returns don't tell the whole story—you have to factor in the sweat equity. If I have to double my effort just to move from a 9% return to a 12% return, the math doesn't check out for me. I’m interested in maximizing my life, not just a spreadsheet. There’s a point where chasing the extra 3% could turn a passive investment into a second job. For me, the older I get, the steeper the opportunity cost of time.
My experience with Chat and Gemini mirrored Gary's. While I'm certainly aware of AI models being a bit sycophantic, I largely neutralize that by starting conversations with something like this: "Act as a completely objective, fee-only financial analyst. Do not flatter my choices or validate my ideas just to be polite. Your job is to look for blind spots, misalignments, and hidden risks based strictly on the data I provide." Chat and GPT have been very helpful to me on a range of financial topics, in particular, positioning me to be ready to take RMDs in the most beneficial way possible. I've spent hours and hours asking follow-up questions to responses Chat or Gemini gave me. They are not perfect. And you can't take what they say at face value. But they are only going to get better. And they are pretty darn good right now, depending on how you tee up conversations. If nothing else, they help focus the mind on critical issues that provide the best possible blueprint for a discussion with a human CFP or other professional. If I were in the business of providing financial advice, I would be keeping a VERY close eye on AI models - and how younger people in particular were engaging with them.
I totally get your point about finding hidden savings, and I suspect it applies to many, but it’s worth noting how subjective this can be. Anyone could look into another person's cart and find something to disagree with—whether it's a six-pack of beer, a bottle of wine, or an expensive steak. Depending on consumption levels, and the consumer's personal health, you could even argue some of these choices are unhealthy. But the larger point is one person’s 'non-essential' prepared dessert is another person’s hard-earned reward. Budgeting is rarely one-size-fits-all because what we value is so personal. Additionally, we never know the financial reality of the person pushing the cart. Many of those carts are being propelled by people for whom money is simply no object, making the exercise of auditing a stranger's groceries a bit of a moot point.
Like the author, that 93% didn't sound right to me, either. I think the number is probably pretty sound, but I also expect that once you break down 'seniors' by increasing age categories, that number drops. For example, 93% of 65-70 year-old seniors might be aging in place, but I seriously doubt 93% of 85-90 year-olds are.
Comments
Mark, I have been using Chat and Gemini extensively to help with my personal finance issues. Like you, I don't use them to make decisions for me, but I do use them to provide me with information/insights/perspectives that helps me make decisions. Today is as incompetent as Claude, Chat, Gemini, etc., will ever be-- and it's hardly incompetent. it will only get better each day. I'm persuaded that at least 50% of routine financial planning work done today by professionals today will disappear within five years. I do somewhat disagree with you on your conclusion: You say that Claude rarely 'solved' anything. You then go on to say that the greatest value of advisors is knowing which questions matter. Yet what Claude is doing for you and what advisors do for you are essential to you 'solving' whatever problem you're trying to solve. You ultimately solve issues by deciding what action to take given inputs from Claude, your advisor, your experiences, or from a dozen other sources. Claude sounds like it is becoming an essential partner in your financial world. Your experience mirrors mine: Knowing what questions to pose to Claude and advisors - and for Claude and advisors to ask of you - rapidly gets you to a range of solutions to consider. It's the speed, accessibility (24/7, 365 days/year), cost, objectivity, and rapidly improving quality of answers from Claude and other Large Language Models that should have the attention of financial advisors everywhere.
Post: Better Questions
Link to comment from July 13, 2026
It's also a result of Costco checking every person's receipt with what's in their cart on the way out of the store. Based on my experience, they don't literally match the items, but they often count total items in the cart and compare it to the total number on the store receipt, which all shoppers must show to leave the store. In any case, it's a powerful deterrent to shoplifting.
Post: Frittering away Frugality
Link to comment from July 10, 2026
Impulse buying is a consumer trait, not a Costco trait. And while it's very easy to overspend there, it's also true that it is very easy to remedy that overspend with their very liberal return policy. When people say Costco inherently encourages waste or doesn't save money, I say, "It depends on the shopper." The produce there is invariably cheaper and better than what I find at Walmart, Giant, or Safeway. I only buy what I know I can consume before it spoils—like blueberries, strawberries, salad bags, and apples. Their Dietz and Watson organic sliced turkey is also about half the price of my local supermarket's deli counter. As others have noted, Kirkland brand paper products (towels, napkins, toilet paper) are a fantastic value. Their prescription prices are highly competitive, particularly for pet medications. And yes, the Costco pumpkin and apple pies are massive. It can be hard for two people to finish them, but I always share them with my next-door neighbors, who are thrilled to get them. They don't go to waste. Similarly, cheeses like Parmigiano-Reggiano are about 40% cheaper than at Safeway or Giant, and they have a very long shelf life. Frozen fish and shrimp are terrific values there. Outside of groceries, I bought prescription eyeglasses and sunglasses there for 50% less than my local optician—and the optician at my local Costco is the best I've encountered in 50+ years in terms of recommending styles that look good on me, and making adjustments. Items like Levi's jeans are about 40-50% cheaper than retail stores. I do 95% of the shopping for my home. I split it, roughly, between Costco (40%), Walmart (35%), Giant (15%), and Safeway (10%). I know for a fact Costco saves my family money because I am disciplined and I see the prices of similar items at other stores on a regular basis. Can you overspend at Costco? Sure. But that impulse exists at any supermarket. It certainly exists on Amazon, where it’s arguably much easier to buy things from your couch than it is to drive 20 minutes to a warehouse. Every business encourages spending to survive, and Costco is no exception. I’m happy to live with the temptation of sinning in their aisles, though, as long as they keep offering absolution through their incredibly generous return policy.
Post: Frittering away Frugality
Link to comment from July 10, 2026
While IRMMA is not technically a tax .... What people need to understand is that IRMAA is a de facto federal income tax,” Reichenstein says [retired Baylor University finance professor William Reichenstein]. “As your income goes up, you owe more to the federal government for Medicare.” Your IRMAA taxes will likely be as high—or higher—for the rest of your life, since the RMD rate gradually increases as you age. From Barron's, 6.24.26 article about taking RMDs in conjunction with social security and/or pension payments ...
Post: A $30,000 Mistake
Link to comment from July 4, 2026
A mom and dad who taught me to be disciplined, hard-working, independent, and balanced in terms of living for today and planning for tomorrow. And a wife who benefitted from a similar upbringing in her household. Other factors at work, too, but that foundation was invaluable.
Post: Why can’t more people plan for their retirement future?
Link to comment from June 28, 2026
I had a friend, a retired detective who took a job as a security consultant for large trade shows well into his 60s. He was busier in that job than he was in his previous 'day job.' At any rate, he said his mother very much wanted to go to Hawaii at some point in her life. She died before he took her there. He deeply regretted not taking time out to take that Hawaii trip with her. Not exactly Dennis' situation, but on the broader topic of: Listening to mom.
Post: Close to Everything I Need
Link to comment from June 21, 2026
This is also about diminishing returns ... Gross returns don't tell the whole story—you have to factor in the sweat equity. If I have to double my effort just to move from a 9% return to a 12% return, the math doesn't check out for me. I’m interested in maximizing my life, not just a spreadsheet. There’s a point where chasing the extra 3% could turn a passive investment into a second job. For me, the older I get, the steeper the opportunity cost of time.
Post: Risk Adjusted: The Family Ledger
Link to comment from June 19, 2026
My experience with Chat and Gemini mirrored Gary's. While I'm certainly aware of AI models being a bit sycophantic, I largely neutralize that by starting conversations with something like this: "Act as a completely objective, fee-only financial analyst. Do not flatter my choices or validate my ideas just to be polite. Your job is to look for blind spots, misalignments, and hidden risks based strictly on the data I provide." Chat and GPT have been very helpful to me on a range of financial topics, in particular, positioning me to be ready to take RMDs in the most beneficial way possible. I've spent hours and hours asking follow-up questions to responses Chat or Gemini gave me. They are not perfect. And you can't take what they say at face value. But they are only going to get better. And they are pretty darn good right now, depending on how you tee up conversations. If nothing else, they help focus the mind on critical issues that provide the best possible blueprint for a discussion with a human CFP or other professional. If I were in the business of providing financial advice, I would be keeping a VERY close eye on AI models - and how younger people in particular were engaging with them.
Post: ChatGPT’s Portfolio Advice
Link to comment from June 7, 2026
I totally get your point about finding hidden savings, and I suspect it applies to many, but it’s worth noting how subjective this can be. Anyone could look into another person's cart and find something to disagree with—whether it's a six-pack of beer, a bottle of wine, or an expensive steak. Depending on consumption levels, and the consumer's personal health, you could even argue some of these choices are unhealthy. But the larger point is one person’s 'non-essential' prepared dessert is another person’s hard-earned reward. Budgeting is rarely one-size-fits-all because what we value is so personal. Additionally, we never know the financial reality of the person pushing the cart. Many of those carts are being propelled by people for whom money is simply no object, making the exercise of auditing a stranger's groceries a bit of a moot point.
Post: Shopping carts again…but not what you think
Link to comment from June 4, 2026
Like the author, that 93% didn't sound right to me, either. I think the number is probably pretty sound, but I also expect that once you break down 'seniors' by increasing age categories, that number drops. For example, 93% of 65-70 year-old seniors might be aging in place, but I seriously doubt 93% of 85-90 year-olds are.
Post: Percentage that “age in place”
Link to comment from May 25, 2026