{"id":282335,"date":"2025-11-25T11:11:08","date_gmt":"2025-11-25T11:11:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/282335\/"},"modified":"2025-11-25T11:11:08","modified_gmt":"2025-11-25T11:11:08","slug":"i-asked-chatgpt-to-build-me-the-perfect-sipp-and-it-suggested","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/282335\/","title":{"rendered":"I asked ChatGPT to build me the perfect SIPP and it suggested\u2026."},"content":{"rendered":"

\"A<\/p>\n

Image source: Getty Images<\/p>\n

I\u2019ve built a portfolio of mostly FTSE 100 stocks inside a Self-Invested Personal Pension (SIPP) and, mostly, I\u2019m happy with it.<\/p>\n

But now I\u2019m wondering whether it\u2019s fit for purpose. So I asked ChatGPT to produce the \u2018perfect\u2019 blend of mostly dividend income-paying stocks for someone retiring within a decade.<\/p>\n

I\u2019ve learned to approach artificial intelligence (AI) carefully. No investor should use it to select stocks<\/a>, often the information it comes up with is out of date, with potential risks omitted. Human intelligence is essential.<\/p>\n

AI picked Legal & General shares<\/p>\n

ChatGPT assured me I\u2019d asked a \u201cgreat question\u201d. I\u2019ve also learned to take its flattery with a pinch of salt.<\/p>\n

It initially came up with five stocks, when I\u2019d asked for 10. Ho hum. Top of the list was Legal & General Group (LSE: LGEN<\/a>), which it described as a \u201chigh-yield financial\/insurance business and one of the top dividend payers in the FTSE 100\u201d.<\/p>\n

I can\u2019t argue with its choice, given that I hold it. Today, it has a trailing yield of 9%, which is massive.<\/p>\n

My robot buddy calls it a \u201ccompelling pick\u201d for my SIPP as its business model provides stable cash generation, which supports its generous payout. \u201cThat\u2019s attractive given your goal of income in retirement\u201d, it said.<\/p>\n

At my request, it supplied three risks. First, it warned that high yields can be difficult to fund, especially if earnings drop. Second, insurance businesses are also exposed to long-term liabilities, regulation and market risk. Third, dividend sustainability depends on the group maintaining cash flow, so monitor its financials. All three are totally generic and tell me little.<\/p>\n

Unbalanced portfolio<\/p>\n

It didn\u2019t mention Legal & General\u2019s dismal share price performance. While it\u2019s up 8.4% in the last year, the shares trade slightly lower than 10 years ago. I still think it\u2019s worth considering, for income if not growth.<\/p>\n

ChatGPT then recommended two very similar stocks from the financials sector \u2013 wealth manager M&G and life and retirement insurer Phoenix Group Holdings. Both also offer super-high yields, but in a five-stock portfolio this is way too much concentration<\/a>. There\u2019s a reason I wouldn\u2019t rely on a Chatbot to plan my future.<\/p>\n

It also highlighted British American Tobacco, which is hard to argue against, given its brilliant long-term track record of supplying income and growth. Then ended with one I\u2019ve never even considered: Foresight Environmental Infrastructure Trust. This is a FTSE 250 investment trust focused on environmental infrastructure with an ultra-high 11% yield. ChatGPT doesn\u2019t mention the shares are down 15% in the last year and 48% over three. Sounds risky to me.<\/p>\n

Five shares isn\u2019t enough for a balanced portfolio, especially since three come from one sector and another is supremely risky. So I asked for five more and it came up with the old favourites \u2013 Shell, Unilever, National Grid, AstraZeneca and Rio Tinto.<\/p>\n

It\u2019s not a bad selection, offering both income and growth, although I\u2019m not a huge fan of Unilever and National Grid.<\/p>\n

ChatGPT doesn\u2019t produce its own ideas, it just scours the internet for information researched by actual humans. Investors should always do their own research. This isn\u2019t a bad portfolio, but I can see more exciting FTSE 100 income stocks out there, while there\u2019s one or two here I just won\u2019t touch.<\/p>\n","protected":false},"excerpt":{"rendered":"Image source: Getty Images I\u2019ve built a portfolio of mostly FTSE 100 stocks inside a Self-Invested Personal Pension…\n","protected":false},"author":2,"featured_media":282336,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[84,4176,4174,4175,56,54,55],"class_list":{"0":"post-282335","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-finance","10":"tag-personal-finance","11":"tag-personalfinance","12":"tag-uk","13":"tag-united-kingdom","14":"tag-unitedkingdom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/282335","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=282335"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/282335\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/282336"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=282335"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=282335"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=282335"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}