What is Qualified Term? Qualified Term indicates the number of years you could live on your current qualified assets. "Qualified assets" refers to money in retirement accounts. This includes pre-tax accounts like Traditional 401(k)s and IRAs, and tax-free accounts...
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 Total Term? Total Term estimates the number of years you could live on your current net worth. Your net worth is everything you own (investments, house, cash, etc.) minus everything you owe (mortgage, student loans, etc.). Net Worth / Annual Living Expenses =...
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...
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