Certain life goals are more achievable than others. Your odds of becoming an astronaut, for instance, aren\u2019t very high at this stage in the game. You probably won\u2019t buy your own island, either. But becoming a millionaire by 40? That might actually be doable, with the right plan and expectations.<\/p>\n
So where do people turn for guidance? Increasingly, many ask ChatGPT<\/a> for generalized advice about hypothetical scenarios, like how to make your first million by the time you hit the big 4-0. That can be a helpful starting point, but it doesn\u2019t compare with the expertise of a professional financial adviso<\/a>r.<\/p>\n For You: 10 High-Paying Jobs for Millennials Who Aim To Make Six Figures<\/a><\/p>\n Find Out: 5 Signs You\u2019re Losing Money Every Month \u2014 and How To Find the Leaks<\/a><\/p>\n So, I made the comparison for you: After asking the AI for its take, I ran its advice by John Jones, CFP, EA, and investment advisor representative at Heritage Financial<\/a>, to see what it got right \u2014 and where it fell short.<\/p>\n 1. Know the Actual Target<\/p>\n First, ChatGPT wants you to understand what being a millionaire actually means: \u201cMillionaire usually means a net worth of $1 million (assets minus debt), not just cash in the bank,\u201d the AI wrote. \u201cThat includes investments<\/a>, retirement accounts, maybe real estate.\u201d<\/p>\n It\u2019s not a bad place to start. Jones agrees, saying that, on the whole, \u201cAI can be an excellent tool when used within context and taken at face value.\u201d He found ChatGPT\u2019s response to be \u201cvery foundational and practical.\u201d<\/p>\n 2. Time and Investing Do Most of the Work<\/p>\n Next, ChatGPT broke down a hypothetical example of how compounding returns can build wealth<\/a> over time.<\/p>\n If you start at:<\/p>\n Age 25: Investing about $600\u2013$800 per month at about a 7% annual return can get you close to $1 million by 40.<\/p>\n Age 30: You may need $1,200\u2013$1,600 per month.<\/p>\n Age 35: It jumps to $2,500 or more per month.<\/p>\n \u201cNot exact, but directionally accurate,\u201d it wrote. \u201cThe earlier you start, the less painful it is.\u201d<\/p>\n Jones is generally a fan of this advice because it echoes much of what he\u2019s told his own clients. \u201cA saying I use often with clients is, \u2018Time in the market beats timing the market,\u2019 which the response emphasized,\u201d he said.<\/p>\n However, he\u2019s concerned about the way the AI presents wealth creation as a simple, linear calculation. In reality, financial planning evolves alongside real-life circumstances<\/a>.<\/p>\n \u201cOne of the items I like to reference when considering digital adviser solutions is that the human connection \u2014 and the dynamic of go-go, slow-go and no-go years \u2014 are difficult for a model or calculator to comprehend,\u201d he said. \u201cThese are real experiences individuals walk through.\u201d<\/p>\n Keep Financial Literacy Month going \u2014 learn how the MoneyLion app helps you track, manage and move your money in one place<\/a>.<\/p>\n 3. Earn More (This Matters More Than People Admit)<\/p>\n ChatGPT had some blunt words for people who want to become millionaires while they\u2019re still young: \u201cYou can only cut so much spending. Increasing income<\/a> is the real lever.\u201d<\/p>\n To that end, it suggested a few approaches for boosting income:<\/p>\n Build compounding skills (such as tech, sales, finance, health care or trades with ownership potential)<\/p>\n Switch jobs strategically every few years<\/p>\n Negotiate salary \u2014 this alone can add hundreds of thousands over a career<\/p>\n Jones doesn\u2019t object to the goal of earning more, especially since \u201cincreasing income is important for additional contributions and compounding.\u201d Still, he finds this advice overly simplistic and, frankly, unrealistic. He\u2019s worried that it sets standards that can make people feel like failures for reasons beyond their control.<\/p>\n \u201cWhat about income ceilings or earning capacity? Sometimes a person cannot simply \u2018earn more,\u2019\u201d he said. \u201cI wish everyone could, and it is a good aspiration to work toward, but sometimes it\u2019s impossible.\u201d<\/p>\n 4. Invest Consistently (Not Creatively)<\/p>\n Unsurprisingly, ChatGPT also advised against flashy or \u201cexotic\u201d investing strategies and instead emphasized consistency. According to the AI, many millionaires rely on a few core principles:<\/p>\n Low-cost index funds that track the S&P 500<\/p>\n Tax-advantaged retirement accounts, such as a 401(k)<\/a> or IRA<\/p>\n Automatic monthly contributions<\/p>\n Jones agrees with the overall message but says it leaves out a critical human factor: emotions. For instance, the AI doesn\u2019t describe how people should handle extended market downturns.<\/p>\n \u201cIt\u2019s easy to say, \u2018ride the wave and stay invested,\u2019 but human reactions to volatility, risk and the tendency to sell in moments of panic can impact an individual\u2019s potential goals and objectives,\u201d he said.<\/p>\n He also noted that ChatGPT glossed over portfolio structure and adjustment.<\/p>\n \u201cHow you manage drawdowns can be almost as important as growth,\u201d he said.<\/p>\n 5. Control Lifestyle Creep<\/p>\n ChatGPT also warned aspiring millionaires against lifestyle creep. It describes this phenomenon as \u201ca common trap: Income rises, spending rises just as fast.\u201d<\/p>\n The AI says you should combat lifestyle creep in a few ways:<\/p>\n Save or invest 20% to 40% of your income, if possible<\/p>\n Avoid high-interest debt (especially credit cards)<\/p>\n Jones agrees with this take, saying that lifestyle creep is important to avoid.<\/p>\n 6. The Biggest Thing the AI Misses<\/p>\n While Jones didn\u2019t have heavy critiques of the AI\u2019s general advice, he was critical of one major omission: tax planning<\/a>.<\/p>\n It\u2019s a major oversight since building wealth isn\u2019t just about earning money, but also about what you get to keep.<\/p>\n \u201cWealth management should be built around tax efficiency to maximize potential net returns and wealth over time,\u201d he said. \u201cSmall inefficiencies in tax planning can add up and represent a significant cost to investment returns.\u201d<\/p>\n The Bottom Line<\/p>\n OK, ChatGPT had some reasonable, high-level guidance for aspiring millionaires. But Jones\u2019 review of the AI\u2019s advice only underscores why you need a more personalized plan.<\/p>\n \u201cThe response didn\u2019t place as much importance on actual implementation,\u201d he said. \u201cWithout a structured plan and ongoing adjustments, a TVM calculation and the advice provided can fall significantly short over time.\u201d<\/p>\n AI can help frame the conversation. A human adviser helps adapt it to real life.<\/p>\n