ARLINGTON, Va. (7News) — Would you turn to Artificial Intelligence (AI) for financial planning?
Alexander Harmsen is hoping you’ll say yes; he came up with the idea for an AI program after growing frustrated with financial planners.
“ What they really wanted me to do was transfer all of my assets to their accounts and then they would charge me a 1% or 1.5% management fee whether they beat the market or not,” Harmsen said. “It kind of felt to me like I either need to give away complete control of all of my money to some portfolio manager or do it all truly myself.”
His project, PortfolioPilot, is designed to act like a financial coach and help people make the best financial decisions for them.
“We took human financial advisors, broke it down to its component pieces, and reassembled it into this software. So part of it is the actual financial advice: ‘Buy this, sell this, this is the right asset allocation’. So we built that. Part of it was tax optimization, part of it was scenario modeling, part of it was estate planning. Part of it is just having a check and balance on yourself to not do crazy stuff,” Harmsen said.
He said users can see what happens in different scenarios, like if the 2008 financial crisis were to occur now. It can also show what would happen if everything goes right.
“The system is very opinionated and will tell you, this is a good idea, this is not a good idea,” Harmsen said.
Harmsen said it will also provide a report card, scoring users’ current financial situations.
“We will literally score you from 0 to 1000, kind of like a credit score, where we’ll tell you you’re at a 720. It’s pretty good, but you know, you could do better,” he said.
As of early October, Harmsen said PortfolioPilot has 23,000 users across its three tiers, including a free tier.
Harmsen insists user data is never shared and that they aren’t asking for people to transfer money to them.
“… So we are giving you advice on your current situation… 401K, IRA, 529, your brokerage accounts, your crypto account, even your real estate, whether it’s your primary residence or rental properties, stock options, student loans, private debts, jewelry, cars. You know, you can add anything you want into the product,” Harmesen said. “And so at its very core, it’s just a portfolio tracker and net worth tracker, and it updates every single day and gives an estimate of your current net worth as markets change.”
Aaron Clarke, a Wealth Advisor at Heritage Financial, LLC, and the President-Elect of the Financial Planning Association of the National Capital Area, believes AI could be a good place for people to start their investment journey. However he believes AI is limited and a real-life financial planner is sometimes needed. Here is his full statement:
“For new investors, navigating the stock and bond markets can feel overwhelming, especially if you’re uncertain whether you “qualify” to work with a financial advisor. In these situations, AI-driven financial tools can be an excellent starting point. They may help keep costs low, offer tailored investment strategies, and even provide basic financial planning insights that align with your needs.
However, it’s essential to recognize that while AI tools can be helpful, they have limitations. These platforms may not fully capture the unique details of your financial situation or provide the comprehensive guidance you need. As your financial journey evolves, consulting with a professional can offer valuable insights on where you stand and what strategies are best suited for your goals.
At some point, you will likely find that the one-size-fits-all approach of these AI tools no longer meets your growing financial and emotional needs. When that happens, partnering with a financial advisor becomes key to advancing your wealth-building efforts and increasing your well-being.
So no matter where you are on your journey, start today by talking to a fiduciary financial planner through Planner Search and learning what type of tool or advice is right for you in your current situation.”
