Setting Annual Financial Goals with ChatGPT - AI Financial Planning

Introduction

"I'm saving money diligently, but is this the right way?" Have you ever wondered this? You save 1 million won (~$750) monthly, but putting it all in bank deposits only earns 3% interest. With inflation at 3%, your money isn't really growing.

But putting it all in stocks is scary. You've heard "stocks are risky," "you can lose principal"—so it's intimidating to start. Then how much should you keep in deposits and how much should you invest? Are there investment options besides stocks?

These concerns have different answers depending on age, income, risk tolerance, and goals. A 20-something fresh graduate and a 40-something family head should have completely different asset allocation strategies. But how do you know what's right?

Using AI, you can get asset allocation strategies perfectly suited to your situation. Tell Claude your age, income, and goals, and it will recommend everything from appropriate safe/risky asset ratios to specific investment products!

Investment and Savings Ratios by Age and Situation

Real Example 1: 20-Something Recent Graduate

My input:

I'm a 27-year-old office worker.

Current situation:
- Salary: 3 million won (~$2,250) (after tax)
- Years employed: 2nd year
- Current savings: 15 million won (~$11,250) (100% deposits)
- Monthly savings capability: 800,000 won (~$600)
- Debt: None
- Marriage plans: 3-4 years later

What should my investment and savings ratio be?

Claude's response:

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💼 Asset Allocation Strategy for 20s

Your Financial Profile:

• Age: 27 (investment horizon: ~35-40 years)
• Risk tolerance: High (plenty of time)
• Short-term goal: Marriage funds (3-4 years)
• Long-term goal: Retirement preparation (35-40 years)

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🎯 Recommended Asset Allocation

Current holdings: 15 million won

Asset Type	Amount (KRW)	Ratio	Purpose
Emergency fund	3,000,000	20%	3-6 months living expenses
Short-term savings	4,500,000	30%	Marriage funds (within 3 years)
Mid-term investment	4,500,000	30%	5-10 year goals
Long-term investment	3,000,000	20%	Retirement

Current situation analysis:

• All in deposits (15M) → Needs reallocation
• Insufficient for inflation (deposit interest 3% vs inflation 3%)
• Real return rate close to 0%

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📊 Immediate Action Plan

Step 1: Secure emergency fund (Top priority)

Separate 3 million won from current 15M as emergency fund

• Product: Free withdrawal deposit (Kakao Bank, Toss, etc.)
• Interest rate: 2-3% (low is OK, liquidity is important)
• Never touch

Step 2: Short-term savings (Marriage funds)

Convert 4.5M won to 3-year deposit

• Product: Fixed deposit (3 years, 4-5% interest)
• Amount: Existing 4.5M + Add 300,000 won monthly
• Expected after 3 years: ~16.5 million won

After 3 years goal:

• Deposit maturity: 16.5M won
• Use for marriage funds

Step 3: Mid to long-term investment

Convert 7.5M won to investment

Mid-term investment (4.5M):

Asset	Amount (KRW)	Ratio	Example Product
Bond ETF	225,000	50%	KODEX 10-year Treasury
Dividend stocks	135,000	30%	Samsung, SK Hynix
Hybrid fund	90,000	20%	Balanced fund

Long-term investment (3M):

Asset	Amount (KRW)	Ratio	Example Product
US S&P500	180,000	60%	TIGER US S&P500
Domestic index	60,000	20%	KODEX 200
Global ETF	60,000	20%	SCHD (dividend ETF)

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💰 Monthly Savings 800,000 Won Allocation Strategy

Item	Monthly (KRW)	Ratio	Purpose
Short-term deposit	300,000	37.5%	Marriage funds
Mid-term investment	200,000	25.0%	5-10 year goals
Long-term investment	200,000	25.0%	Retirement
Emergency fund top-up	100,000	12.5%	Until 6M won
Total	800,000	100%

After reaching 6M emergency fund (6 months later):

Item	Monthly (KRW)	Ratio
Short-term deposit	300,000	37.5%
Mid-term investment	250,000	31.3%
Long-term investment	250,000	31.3%
Total	800,000	100%

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📈 Expected Assets After 5 Years

Simulation conditions:

• Monthly savings: Maintain 800,000 won
• Deposit interest: 3%
• Investment return: 6% annually (conservative assumption)

Category	Current	After 5 Years	Increase
Emergency fund	3M	6M	+3M
Short-term savings	4.5M	22M	+17.5M
Mid-term investment	4.5M	20.5M	+16M
Long-term investment	3M	18.5M	+15.5M
Total	15M	67M	+52M

💡 If only deposits:

• After 5 years: ~62M won
• 5M won loss compared to mixed investment

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⚠️ Investment Precautions

1. Absolute principles:

• Start investing after securing emergency fund
• Keep short-term goal funds (marriage) in safe assets
• Invest only amounts you can afford to lose

2. Risk management:

• No all-in on one stock
• Diversify (domestic/overseas, stocks/bonds)
• Regular installment investment (reduce timing risk)

3. Emotional management:

• Don't get shaken by short-term fluctuations
• Hold long-term investments for 10+ years
• Don't panic on losses (time solves it)

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📊 Portfolio Adjustment by Age

Late 20s (Current):

• Safe assets: 50% (emergency fund + short-term savings)
• Risky assets: 50% (stocks, ETFs)

Early 30s (After marriage):

• Safe assets: 60% (home purchase funds)
• Risky assets: 40%

Late 30s (Child-rearing period):

• Safe assets: 65% (education costs, life stability)
• Risky assets: 35%

40s:

• Safe assets: 55% (mid-life wealth building)
• Risky assets: 45%

50s+:

• Safe assets: 70% (serious retirement prep)
• Risky assets: 30%

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Real Example 2: 30-Something Couple

My input:

We're a dual-income couple.

Current:
- Husband (34): Salary 4.5M won (~$3,375)
- Wife (32): Salary 3.8M won (~$2,850)
- Combined income: 8.3M won (~$6,225)
- Current assets: 50M won (~$37,500) (Deposits 40M, Stocks 10M)
- Monthly savings: 3M won (~$2,250)
- Children: 1 (age 2)

Goals:
- Apartment down payment within 5 years (100M / ~$75,000)
- Children's education fund
- Retirement preparation

How should we allocate?

Claude's response:

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👨‍👩‍👧 30s Couple Asset Allocation Strategy

Household Financial Profile:

• Age: Early-to-mid 30s
• Household income: 8.3M won monthly (top 20%)
• Risk tolerance: Medium-high (balance stability + returns)
• Short-term goal: Home purchase (5 years)
• Mid-term goal: Child education (15-20 years)
• Long-term goal: Couple retirement (30-35 years)

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🎯 3-Stage Goal-Based Asset Allocation

Current assets: 50 million won

Stage 1: Essential Safety Net

Item	Amount (KRW)	Ratio	Purpose
Emergency fund	15,000,000	30%	6 months living expenses (5M monthly × 6)
Insurance	-	-	Life/health/cancer (assumed enrolled)

Current situation:

• Separate 15M from 40M deposits → Emergency fund account
• Remaining 25M → Home purchase funds

Stage 2: Goal-Specific Fund Allocation

A. Home Purchase Funds (Top priority, within 5 years)

Goal: 100 million won (down payment)

Current	Needed	Period	Monthly Savings Needed
25M + Stocks 10M = 35M	65M	60 months	~1.08M

Allocation strategy:

• Focus on safe assets (minimize volatility)
• 1.5M won monthly → Home fund

Asset	Monthly (KRW)	Ratio	Product
Fixed deposit	1M	67%	Bank deposit (4-5%)
Bond ETF	300K	20%	Treasury ETF
Housing subscription	200K	13%	Housing lottery

After 5 years projected:

• Existing assets: 35M
• New savings: 1.5M × 60 months = 90M
• Interest income: ~5M
• Total: 130M ✅ (Exceeds goal!)

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B. Children's Education Fund (Mid-term, 15-20 years)

Goal: 100 million won for college

Current	Needed	Period	Monthly Savings Needed
0	100M	216 months (18 years)	~300K

Allocation strategy:

• Plenty of time → Can invest aggressively
• 800K won monthly → Education fund

Asset	Monthly (KRW)	Ratio	Product
US index ETF	400K	50%	S&P500, NASDAQ
Domestic stocks	200K	25%	Samsung, SK, Naver, etc.
Dividend ETF	200K	25%	SCHD, JEPI

After 18 years projected (7% annual return):

• Principal: 800K × 216 months = 173M
• Returns: ~120M
• Total: ~290M (College + grad school or study abroad possible)

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C. Couple Retirement Fund (Long-term, 30-35 years)

Goal: 500 million won at retirement

• 700K won monthly → Retirement fund

Asset	Monthly (KRW)	Ratio	Product
IRP (tax deduction)	300K	43%	Pension savings + IRP
US ETF	200K	29%	VTI, VOO
Domestic ETF	100K	14%	KODEX 200
Gold/commodities	100K	14%	Gold ETF (safe asset)

💡 IRP/Pension savings tax deduction:

• Up to 9M won annually, 16.5% tax deduction
• 300K monthly = 3.6M annually
• Tax deduction: ~590K won refund
• Actual burden: ~250K monthly level!

After 30 years projected (6% annual return):

• Principal: 700K × 360 months = 252M
• Returns: ~450M
• Total: ~700M (Exceeds goal!)

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💰 Final Monthly Savings 3M Won Allocation

Goal	Monthly (KRW)	Ratio	Period	Expected Result
Home funds	1.5M	50%	5 years	130M
Education	800K	27%	18 years	290M
Retirement	700K	23%	30 years	700M
Total	3M	100%

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📊 Asset Type Allocation

Safe vs. Risky Assets:

Asset Type	Monthly (KRW)	Ratio
Safe Assets	1.65M	55%
ㄴ Emergency top-up	0	(complete)
ㄴ Fixed deposit	1M
ㄴ Bond ETF	300K
ㄴ IRP (stable)	150K
ㄴ Housing subscription	200K
Risky Assets	1.35M	45%
ㄴ Domestic stocks/ETF	300K
ㄴ US stocks/ETF	600K
ㄴ Dividend ETF	200K
ㄴ IRP (aggressive)	150K
ㄴ Other	100K

Ratio: Safe 55% : Risky 45% → Appropriate balance for 30s couple!

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Prompt Template

I'm [age] years old, here's my situation:

Financial situation:
- Monthly income: [amount]
- Current assets: [amount] (deposits/stocks/real estate, etc.)
- Monthly expenses: [amount]
- Debt: [if any, amount]

Goals:
- Short-term (within [years]): [goal]
- Mid-term (within [years]): [goal]
- Long-term (retirement): [goal]

Questions:
1. Appropriate investment/savings ratio for my situation?
2. Specific product recommendations
3. Monthly savings allocation plan
4. Projected assets after 10/20 years

Conclusion

Savings and investment ratios vary by age, goals, and risk tolerance. Create optimal asset allocation strategies for your situation with AI and achieve stable financial goals!

In the next post, I'll show you how to integrate AI-created budgets with Excel.

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💡 Today's Tip: Ask Claude "Advise portfolio rebalancing on my birthday each year" and it will recommend age-appropriate asset allocation again!