I Bet on Claude (the ChatGPT Competitor) to Manage My Investments — Here’s the Result

In this post, I am going to ask Claude to manage my investments and request a number of suggestions.

If you’ve been following me, you may know that I’ve been presenting various scenarios to ChatGPT, Bard, and Perplexity and writing about the results.

Now, that I can see that Claude is accessible in even more countries, I’ve decided to let you know what Claude thinks about a specific scenario.

That’s how this post came into existence.

In this post, I am going to ask Claude to manage my investments and request a number of suggestions.

Please note that this post is to learn how to provide prompts to Claude, and find the best result, and I do not recommend following any suggestions from the AI chatbots and investing blindly.

With that said, let’s get started.

First and foremost, let’s instruct Claude to perform as a world-class investor so that I can receive better answers, and Claude knows what to focus on.

As you can see, Claude specifically mentioned that it doesn’t have any investing experience but can roleplay as an investment expert to the best of its capabilities to provide a better response.

Now, as we know, before making a significant investment, it’s best to pay off any outstanding debts.

Suppose I have a substantial debt of $50,000, and I want to repay it as soon as possible. I will ask Claude to provide me with some suggestions.

As you can see, it recommends a step-by-step guide to create a budget, build an emergency fund, and so on, similar to what a financial advisor would suggest.

Now, let me provide some additional information about myself and ask it to guide me where should I invest.

And here’s what it suggested.

Here are the steps I would recommend for a young investor in their 20s with $100,000 seeking to generate passive income streams:

1. Set aside an emergency fund with 3–6 months of living expenses in a high-yield savings account so this money remains liquid. Let’s say $20,000 for this fund.

2. Invest the remaining $80,000 across a diversified portfolio:

• Stocks/ETFs: Invest $40,000 in a broadly diversified stock/ETF portfolio across market caps, sectors, and geographies. Focus on low-fee index funds for long-term growth potential.

• Real estate: Put $20,000 into a real estate crowdfunding platform to invest in private real estate deals like rental properties, storage units, etc. This can generate monthly cash flow.

• Peer-to-peer lending: Invest $10,000 in peer-to-peer lending platforms to earn interest on loans made to individuals and businesses. Returns can be 6–12% on these types of alternative investments.

• High dividend stocks/ETFs: Invest $10,000 in stocks or ETFs focused on high dividends for steady income. 3–4% yields are reasonable here.

3. Automate regular investments in this portfolio to build it up over time. Max out retirement accounts first before standard investment accounts.

4. Hold investments long-term, reinvest dividends, and ride out volatility. Resist panicking and selling during downturns.

5. Once you have multiple streams of passive income, evaluate options to scale up or pursue your passions using the income cushion you’ve built.

To be honest, I like this step-by-step guide. If someone were to ask me, I would even suggest a similar guide to them.

Furthermore, most experts recommend nearly the same step-by-step guide.

Now, some of you may be thinking that I don’t want to diversify into numerous sectors. Instead, I want to focus on just a few specific sectors.

No worries, let’s ask Claude about that.

Sounds cool, right?

But, what percentage should I invest in all these sectors mentioned above?

Let’s ask Claude.

Here’s what the AI chatbot suggested.

Here is the specific percentage allocation I would recommend across the 3 main sectors:

Technology — 30%

• Invest $30,000 in a broad technology ETF like VGT or a mix of individual stocks like AAPL, MSFT, GOOG, etc.

• Aim for a mix of growth and dividend payers.

Real Estate — 20%

• Invest $20,000 into a real estate crowdfunding platform like Fundrise.

• Focus on private real estate deals to generate monthly passive income.

Dividend Stocks — 25%

• Invest $25,000 in dividend aristocrats like JNJ, PG, KO.

• Reliable, established companies with steady dividends.

Remaining 25% can be allocated to:

• Emerging Markets — 10%

• Bonds — 10%

• Healthcare — 5%

This allocation gives higher weight to tech for growth and dividends for income. Real estate and dividends provide diversification from stocks. The remaining 25% is for further diversification.

The key is to hold long-term, steadily invest over time, reinvest dividends, and ride out market swings. This balanced asset allocation aligns with your goals of growing wealth and passive income streams.

Insane, right?

As you can see, you only need to start with a specific prompt that guides the AI chatbot’s focus.

Later, be specific about what you want to achieve, as providing more information to the chatbots will result in better responses.

Hope you like it.

That’s it — thanks.

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