The dividing line: understanding vs deciding
There is only one rule to remember before opening a chatbot to talk about money. An AI is reliable at explaining a concept; it is dangerous at settling a decision. The first task has a general answer; the second depends on your context — which is precisely what the AI does not know.
Everything else follows from that. Here is how to apply the line concretely.
✅ 8 good questions to ask it
These are requests for explanation, plain language or structure. The AI excels and saves you hours:
- "Explain the difference between an RRSP, a RRIF and a TFSA, with an example." — pure explanation, its home turf.
- "How does deferring the QPP pension work?" — the mechanism, not the decision to defer.
- "What is the OAS clawback and at what income does it start?" — the definition of a rule.
- "What are the main steps to build a retirement plan?" — a checklist so you forget nothing.
- "What is the difference between nominal and real return?" — a concept that changes all your projections.
- "Summarize this document / this clause in plain language." — decoding contractual jargon.
- "What questions should I prepare before meeting a financial planner?" — arriving equipped is worth a fortune.
- "Check my reasoning: here is how I understand X, is that right?" — the AI as a review partner.
⛔ 5 decisions never to delegate to it
These are contextual choices, often irreversible or with heavy tax impact. A generic answer does real damage:
| Do NOT ask… | Why it is risky |
|---|---|
| "Should I withdraw from my RRSP now?" | Depends on your income, your tax bracket, your spouse, your horizon. There is no right answer in the abstract. |
| "In what order should I draw down my accounts?" | The optimal order requires your real numbers and a multi-year projection. An AI has neither. |
| "At what age should I take my QPP?" | It is a bet on your health and your other income — deeply personal. |
| "Which stock / which ETF should I buy?" | Neither authorized investment advice, nor any knowledge of your risk tolerance and your portfolio. |
| "How much can I spend in retirement?" | Requires your real expenses, your exact capital and a longevity assumption. Entirely bespoke. |
The reflex that protects you: cross-check
An AI always answers with the same assurance, whether it is right or wrong — there is no hesitation in the voice to warn you. Hence a non-negotiable reflex: every answer with a financial impact gets cross-checked.
- The rules → an official source (Retraite Québec, Canada Revenue Agency).
- The numbers → your real data, not an invented average.
- The heavy decisions → a professional who knows your file.
Used well, an AI makes you sharper in front of your advisor and your own choices. Used badly, it hands you certainties nobody has validated.