Could AI Manage Your TSP Better Than A Financial Advisor?

Artificial intelligence has been called the future of investing. It promises faster decisions, lower fees, and emotion-free advice.

So, some federal employees are naturally starting to wonder: Why pay for a human advisor at all?

Here’s what most don’t realize — and why blindly trusting AI with your retirement could quietly cost you far more than you save.

What AI Gets Right (And Wrong)

There’s no denying it: AI-driven tools offer real advantages.

• They rebalance portfolios instantly based on market shifts

• They can simulate thousands of TSP scenarios in seconds

• They’re often much cheaper than traditional financial advisors

It’s easy to see why they’re gaining attention.

But AI can’t:

• Spot SF-50 errors that could quietly reduce your pension for decades

• Anticipate future legislation that may shrink COLAs or change annuity formulas

• Guide you through complex, deeply personal choices — like survivor benefits, FEHB decisions, or how to coordinate TSP with outside investments

AI works from data.

But your retirement isn’t just data — it’s a once-in-a-lifetime puzzle with no do-overs.

The Smart Approach

The federal retirees who stay ahead don’t pick between AI and advisors — they combine both.

• Use automation or AI tools for routine tasks (like basic rebalancing)

• Rely on human experts for the big-picture decisions where a single mistake could cost six figures or more

But before you trust AI with your TSP, ask yourself:

• Does it account for the full picture — TSP and your pension, FEHB, survivor benefits?

• Can it spot issues unique to federal employees that aren’t in a standard investing algorithm?

• Is a human reviewing its recommendations before you act?

What’s Your Take?

Would you trust AI to manage your TSP?

Reply to this email and let me know — we’re gathering reader insights for a future issue.

Best,
—Federal Wealth Retirement