A new Northwestern Mutual study shows that while Americans are experimenting with AI in daily life and at work, most remain hesitant to rely on it for something as personal as financial planning. 

More than half of respondents said they trust human advisors over AI for tasks like retirement planning and portfolio management, with only a small fraction willing to put that responsibility in the hands of algorithms. The survey underscores that money decisions are not purely analytical but tied to life goals, emotions, and family priorities—areas where people value empathy and nuance. 

At the same time, nearly half of Americans say they are comfortable with financial advisors using AI behind the scenes, particularly younger generations who see technology as a natural extension of expertise. Gen Z and millennials, in particular, were more open to advisors who integrate AI into their practice, compared to Gen X and baby boomers. 

Finsum: Americans want the best of both worlds: the efficiency and insights that AI can provide, paired with the judgment and human connection of a trusted financial advisor.

Corebridge Financial has launched Power Select AICO℠, a new index annuity developed in partnership with Market Synergy Group, featuring a unique Additional Interest Credit Overlay (AICO) that can boost earnings by up to 200%. The product offers exposure to major indices like the S&P 500® and Nasdaq-100®, along with fixed interest options, while providing 100% downside protection against market losses. 

Unlike traditional index annuities, the overlay allows for enhanced accumulation during weak markets, though it comes with a 0.80% annual fee and a cap on the maximum overlay benefit. 

Executives say the design helps investors diversify and accumulate assets regardless of market conditions, while still offering protection during downturns. The contract guarantees are backed by American General Life Insurance Company, a Corebridge subsidiary, though withdrawals may carry tax implications and early withdrawal penalties. 

Finsum: With its combination of growth potential, protection, and innovative crediting structure, index annuities are perfect for retirement savers seeking balance between safety and upside.

Structured notes are often pitched as sophisticated tools for yield and downside protection, but they carry layers of risks that can outweigh their potential benefits. Because they are debt obligations of the issuing bank, their value hinges on the issuer’s creditworthiness, leaving investors vulnerable in the event of a default. 

High, often hidden, fees further erode returns, with some products charging over 2% annually on top of advisor commissions. Liquidity is another concern, as structured notes rarely trade in active markets, forcing early sellers to accept steep discounts. 

Their complex payoff structures can also mislead investors into believing they hold principal protection when in reality protections are conditional and limited. Tax treatment is murky as well, with many products generating taxable “phantom income,” creating unexpected burdens that make structured notes a risky choice for most retail investors. 

Finsum: While structured notes are perfect for lots of investors illiquidity and complexity that may leave investors worse off than with simpler, more transparent options.