Need help with Planning Your Finances?
Need help with Planning Your Finances?
Current Asset Allocation
Tax buckets may be categorized as Taxable, Tax-Deferred, Pre-Tax, or Post-Tax accounts. Account examples and tax treatments are summarized in the table below. Please read our blog to understand the Tax Treatment of Investment and Retirement Accounts.
Asset Allocation: Categorize your assets by tax buckets. For real estate, only include the equity tied up in your primary or rental properties. However, if you are renting, this asset class will be 0.
Home Equity = Market Value - Outstanding Loan Balance
Asset Allocation: Categorize your assets by tax buckets. For real estate, only include the equity tied up in your primary or rental properties. However, if you are renting, this asset class will be 0.
Home Equity = Market Value - Outstanding Loan Balance
Pre-Tax (e.g., pre-tax 401k or Traditional IRA) and Post-Tax (e.g., Roth 401k, Roth IRA) retirement accounts are equally tax-efficient by design. However, practical considerations such as future tax uncertainty, RMD and savings fragmentation makes Post-Tax a much better choice.
Get a Term Life insurance to protect your family against a human capital loss or against your future earnings potential. Term Life offers the highest protection for the smallest premium and has no cash value. For example, a healthy 35-year-old can obtain a $1M coverage for a 20-year term for just $35 a month.
Term Life: You should have a life insurance coverage of 7x your income for the term of your working life.
Pre-Tax (e.g., pre-tax 401k or Traditional IRA) and Post-Tax (e.g., Roth 401k, Roth IRA) retirement accounts are equally tax-efficient by design. However, practical considerations such as future tax uncertainty, RMD and savings fragmentation makes Post-Tax a much better choice.
1
Are you overexposed to real estate (>50% of your net worth)?
2
Do you have too much money in Taxable assets (> Pre-Tax + Post-Tax)?
3
Do you have too little in Post-Tax assets (< Pre-Tax)?
1
Are you overexposed to real estate (>50% of your net worth)?
2
Do you have too much money in Taxable assets (> Pre-Tax + Post-Tax)?
3
Do you have too little in Post-Tax assets (< Pre-Tax)?
Read later? Receive modules in your inbox...
+ you won't miss important updates.
© 2019, FinCrafters
Crafted by
