What is Business Term? Business Term indicates the number of years you could live on your current business equity. Business equity includes business assets minus related debts. Business Equity / Annual Living Expenses = Business Term Example: If you have a business...
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 Burn Rate? Burn Rate is a key indicator of your financial health. It's the percentage of your annual gross income that goes to living expenses. Annual Living Expenses / Total Personal Income = Burn Rate Example: If you spend $12K/month and your annual gross...
What is Real Estate Term? Real Estate Term indicates the number of years you could live on your current real estate equity. Real estate equity includes homes and investment properties, minus related debts. Real Estate Equity / Annual Living Expenses = Real Estate Term...
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...
Stop bad guys from getting loans in your name. Here's how to freeze your credit quickly and easily. Background There are three major credit bureaus: Equifax, Experian, and TransUnion. Each one tracks your credit history and calculates a credit score. When you apply...
If you're over age 70.5, you can make a Qualified Charitable Distribution from your IRA. You pay no tax, and neither does the charity. This is a tax-smart way to give during your lifetime. Background When you withdraw from a pre-tax retirement account, you normally...
To avoid getting hacked, use a different strong password for every website. A password manager makes this easy. In Theory In theory, it's easy to avoid getting hacked. Just use strong passwords. The person in the picture got it right: Ridiculously long Randomly...
If you're savvy enough to use your HSA for retirement, here are some HSA pro tips to squeeze out the most value. Save receipts You should be paying current medical expenses from your bank account, not your HSA. But you'll want to reimburse yourself from your HSA in...
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