As part of my investment strategy, my portfolio is spread across several accounts, including a work-funded account and others where I pay no transaction fees. Additionally, I set aside a fixed amount each week, and once it reaches a certain threshold, I use that money to purchase new investments, such as stocks, bonds, or ETFs. However, recently, I began to question whether this approach, though common, is truly optimal. Would it make more sense to allocate this saved cash to an existing bi-weekly investment? Let’s dive into the details.
Currently, I invest $50 bi-weekly into XEQT and VDY, splitting the amount equally between the two ETFs. At the same time, I’ve been setting aside $50 on the side, saving it until I reach about $1,500–2,000, at which point I buy other stocks. Lately, I’ve reconsidered this approach. Instead of keeping these funds separate, wouldn’t it be more efficient to roll that $50 into my regular ETF purchases, potentially doubling my bi-weekly contributions to $50 for each ETF?
To explore this idea further, I turned to what many do in 2024: consulting Generative AI. Not just one, but three AI platforms—Google Gemini, ChatGPT, and Microsoft Copilot. I asked them to take on different advisory personas and answer the question:
“Would it make more sense to keep the two separate—cash savings and recurring investments—or roll the $50 cash saved into buying more ETFs?”
The personas were:
- A financially conservative advisor, focused on risk mitigation and long-term stability.
- An aggressive investor, prioritizing growth and willing to take on more risk for higher returns.
- A balanced advisor, seeking a middle ground between risk and reward.
The responses were overwhelmingly in favor of rolling the $50 into doubling my ETF investments in XEQT and VDY. While some arguments were made for keeping the two strategies separate, those responses seemed more like AI-generated attempts to present a counterargument.
Changes I ended up making
Rolling the extra cash into my bi-weekly ETF investments seemed to align with most of the advice I received, suggesting it could streamline my portfolio and increase growth potential over time. Not that I ever trust Generative AI blindly with anything I ask it, but when the overwhelming consensus, across different AI platforms and to different profiles, is all in favour of a specific approach, then it makes sense to look into it. And that is exactly what I did: as of last week, I have doubled my bi-weekly position into the aforementioned ETFs. Not only will this mean better returns in the future, it also simplifies the whole process for me, and when it comes to investing, the easier the better. Now, instead of saving money on the side, waiting for it to reach a certain amount, then looking for a stock or ETF to buy, it is all automated and happening every two weeks, never missing any growth potential, taking advantage of market dips, and most importantly all the dividend payments that come with these securities.
Final Thoughts:
Generative AI tools are not meant to replace thorough research or the expertise of financial planners and investment advisors—at least not yet. However, they can serve as a valuable supplement when exploring investment opportunities or making decisions about your finances. By providing quick insights, comparisons, and diverse perspectives, AI can help streamline the research process, allowing you to make more informed decisions. Just remember, AI should enhance, not replace, the human touch in financial planning.