What is Savings Rate? Savings Rate is a key indicator of your financial health. It's the percentage of your annual gross income you're saving. Total Annual Savings / Total Personal Income = Savings Rate Example: Assume your annual gross income is $300K. If you save...
What is Equity Rate? Equity Rate is an important financial metric. It's the percentage of your investment portfolio that's in stocks. "Equity" is another word for "stock." Equity (Stock) Investments / Total Investments = Equity Rate Example: Assume you have $2...
What is Liquid Term? Liquid Term indicates the number of years you could live on your current liquid assets. "Liquid assets" refers to money that is not in a retirement account. This includes cash accounts (checking and savings) and nonretirement investment accounts...
Most people do not have a great way to monitor their finances and assess their financial health. Tools like Mint and Personal Capital let you see all your accounts in one place and track your spending. This helps to some degree, but it falls short in answering key...
Investing your HSA for retirement means skipping the default cash account and investing in stocks instead. Here's how. Most HSA Money Is Not Invested Money in a Health Savings Account (HSA) goes into a risk-free cash account by default. This is because most people use...
There are three types of investment accounts. This article gives examples of each type and how it is taxed. Types of Investment Accounts The three types of investment accounts are: Pre-tax. Tax-free. Taxable. Pre-Tax and Tax-Free Pre-tax and tax-free accounts are also...
In our previous article and video, What is Evidence-Based Investing?, we summarized three principles of Evidence-Based Investing. Those principles include: Passive > Active Global diversification Factors can increase expected return This article goes into more...
One principle of Evidence-Based Investing is Global Diversification. Diversification means you don't have all your eggs in one basket. This means owning thousands of stocks (likely in the form of mutual funds or ETFs), as opposed to owning a handful of individual...
There are two main ways that fund companies approach investing: active and passive. Active managers hire an expensive research team to pick if Coke or Pepsi will do better. In this way, they hope to "beat the market." Passive managers just buy Coke and Pepsi. Lower...
This is a comprehensive resource guide covering all the key areas of financial planning for emergency physicians. This post, and all of ER Doc Finance, is dedicated to helping you cut through the noise. Most of our articles can be read in less than 5 minutes. Don't be...
Student loans, mortgages, credit cards, oh my! How to optimize your debt.
Retire on your terms and still enjoy life today.
Charitable giving, estate planning, behavioral finance, and more.
You’ll also get new articles sent directly to your inbox.
Keep your biggest expense as low as (legally) possible.