Can AI Really Manage Your Money? Plus: The Truth About Roth Conversions

33 snips

Mar 10, 2025

Discover how AI can revolutionize personal finance through budgeting apps and robo-advisors. The hosts dive into the advantages and potential pitfalls of relying on AI for money management. They also unpack the ins and outs of Roth conversions, exploring when to consider them and the tax implications involved. Learn about strategies for optimizing contributions, especially for high-income earners, while emphasizing the vital role of human expertise alongside technology in financial decision-making.

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ANECDOTE

AI Uses

Elizabeth Ayoola used ChatGPT for Valentine's Day staycation ideas and to understand bonds.
Sean Pyles expresses less enthusiasm for AI due to environmental concerns.

INSIGHT

Generational AI Use in Finance

Many Gen Z and Millennials use AI for personal finance, including budgeting and investing.
AI tools encompass various applications, from budgeting apps to chatbots like ChatGPT.

ADVICE

Three AI Applications for Personal Finance

Use AI for budgeting, understanding complex financial topics, and researching investments.
Consider AI-powered budgeting apps, robo-advisors, and chatbots for assistance.

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Learn how AI can help you budget, invest, and build financial knowledge. Then, get expert insights on Roth conversions.

How can AI help you manage your money? What do you need to know about Roth conversions? Hosts Sean Pyles and Elizabeth Ayoola discuss the rise of AI-powered financial tools and break down the pros and cons of using AI for budgeting, financial education, and investing research. They explore how generative AI, budgeting apps, and robo-advisors can assist with personal finance tasks but also highlight potential risks that come with using the technology, like misinformation and algorithmic bias.

Then, investing Nerd Sam Taube joins Sean and Elizabeth to discuss Roth conversions, including how they work, when they make sense, and what tax implications to consider. They cover how to estimate taxes on a conversion, the impact of the pro-rata rule on backdoor Roth IRAs, and strategies to avoid tax complications. Whether you’re curious about AI-driven financial tools or weighing a Roth conversion, this episode provides the insights you need to make smarter money decisions.

What Is a Robo-Advisor and Is One Right for You? https://www.nerdwallet.com/article/investing/what-is-a-robo-advisor

Federal Income Tax Calculator and Refund Estimator 2024-2025 https://www.nerdwallet.com/calculator/tax-calculator

NerdWallet’s roundup of the best financial advisors: https://www.nerdwallet.com/best/investing/financial-advisors

In their conversation, the Nerds discuss: how to use AI for budgeting, AI investing tools, robo-advisors, AI for financial planning, AI stock research, how to use ChatGPT for money management, generative AI and finance, Roth conversion taxes, Roth IRA conversion rules, Roth IRA tax implications, backdoor Roth IRA, pro rata rule Roth conversion, traditional IRA vs Roth IRA, Roth conversion strategy, Roth conversion tax brackets, when to do a Roth conversion, backdoor Roth IRA step by step, Roth IRA withdrawal rules, best robo-advisors, AI stock picking, AI for retirement planning, how to avoid taxes on Roth conversion, investing with AI, and AI vs human financial advisors.

To send the Nerds your money questions, call or text the Nerd hotline at 901-730-6373 or email podcast@nerdwallet.com.

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