AI Prompts for ChatGPT for Investing

I am new to investing and have [AMOUNT] I want to put to work. Before I do anything, explain the 5 most important investing principles I need to understand — the ones that account for most of the difference between investors who build wealth and those who do not.

Explain the difference between stocks, bonds, ETFs, index funds, and REITs in plain English. For each asset class, tell me: what I am actually owning, the typical risk level, the typical expected return, and who it is most suitable for.

What is compound interest and why does it matter so much for investing? Give me a concrete numerical example showing the difference between starting to invest at [MY AGE] versus 10 years later, assuming average market returns.

What is the difference between active investing (picking stocks) and passive investing (index funds)? What does the research actually say about which approach produces better results for most investors, and why?

I have heard about dollar-cost averaging, diversification, and rebalancing. Explain each concept, why it matters, and give me a concrete example of how each applies to a beginner investor with [AMOUNT] to invest.

Help me define my investment profile. My age: [AGE]. Investment goal: [GOAL: RETIREMENT, HOUSE DOWN PAYMENT, GENERAL WEALTH BUILDING]. Time horizon: [YEARS]. Risk tolerance: [LOW/MEDIUM/HIGH — OR DESCRIBE HOW YOU WOULD FEEL IF YOUR PORTFOLIO DROPPED 30%]. Based on this, what asset allocation is appropriate for me?

I am investing for retirement in [X YEARS]. What is the simplest, most evidence-based investment strategy for someone with my time horizon? Give me the specific allocation and explain why simplicity tends to outperform complexity for most investors.

What is the difference between a Roth IRA, traditional IRA, and 401k? For my situation — [INCOME, EMPLOYMENT TYPE, TAX BRACKET] — which account type should I prioritize, and in what order should I fund each?

I want to invest [AMOUNT] per month. Walk me through how to automate this so it happens without effort: which accounts to use, what to invest in, and how to set up automatic contributions.

I am nervous about investing because the market might drop. Walk me through the historical evidence on what happens to long-term investors who stayed invested through major market downturns. What does the data say about the cost of trying to time the market versus staying invested?

Explain index funds in detail. What exactly is an index fund, how does it work, what are the fees I should care about (expense ratio), and what are the most commonly recommended index funds for a beginner building a long-term portfolio?

I am thinking about investing in individual stocks. What are the realistic odds that I will outperform a broad market index fund, and what would I need to do (time, research, skill) to give myself a reasonable chance? Be honest about the research.

What are REITs and do they make sense for someone trying to get real estate exposure without buying property? Explain how they work, the expected returns, the risks, and where they fit in a diversified portfolio.

I have heard about target-date funds. Explain exactly what they do, who they are designed for, and whether the automatic glide path justifies the typically higher fees compared to building the same allocation manually with low-cost index funds.

Compare these two investment approaches for someone investing $500 per month for 30 years: (1) all in a total market index fund, (2) a three-fund portfolio (US stocks, international stocks, bonds). Show the expected outcomes and the tradeoffs.

My portfolio is currently [DESCRIBE ALLOCATION]. I have not rebalanced in [TIMEFRAME]. Walk me through when and how to rebalance, what the costs and tax implications are, and whether my current portfolio needs attention.

The market just dropped [X]% and I am feeling anxious about my investments. Give me the historical perspective on market drawdowns of this size: how long they typically last, what happens to investors who sell versus those who stay invested, and what action (if any) I should take.

I have [AMOUNT] in cash that I want to invest but am nervous about investing it all at once right now. Should I invest it all immediately or use dollar-cost averaging? What does the data say, and what is the right approach for someone with my risk tolerance?

I want to review my investment portfolio quarterly. Give me a simple quarterly portfolio review process: what to check, what questions to ask, what should trigger a change, and what should not.

I am considering [SPECIFIC INVESTMENT DECISION: E.G. MOVING MONEY FROM BONDS TO STOCKS, ADDING CRYPTO EXPOSURE, BUYING INDIVIDUAL TECH STOCKS]. What are the key questions I should ask myself before making this decision, and what evidence should I look at?