Asset Growth Using Rule of 72
Achieving a multi-million dollar asset value in one’s lifetime is more possible
What Does Inflation-Adjusted Means?
It is fundamental to financial engineering that we understand the interplay between
Saving Early vs. Starting Late: An Example
An investor who begins to save later in her or her working
Investment Return and Volatility Explained
CAGR is used for measuring investment return and standard deviation for volatility.
Effect of Taxes vs. Inflation on Asset Growth
While the effect of taxes on investment return occurs when a sale
Human vs. Financial Capital
The relative importance of protecting and growing our assets exceeds our future
Life of an Engineer: Cash Flow Analysis
In what follows, we guide you through the expense profile of a
Asset Growth Using Rule of 72
Achieving a multi-million dollar asset value in one’s lifetime is more possible
What Does Inflation-Adjusted Means?
It is fundamental to financial engineering that we understand the interplay between
Saving Early vs. Starting Late: An Example
An investor who begins to save later in her or her working
Investment Return and Volatility Explained
CAGR is used for measuring investment return and standard deviation for volatility.
Effect of Taxes vs. Inflation on Asset Growth
While the effect of taxes on investment return occurs when a sale
Human vs. Financial Capital
The relative importance of protecting and growing our assets exceeds our future
Life of an Engineer: Cash Flow Analysis
In what follows, we guide you through the expense profile of a
Did You Know?
An investment growing at ~7% CAGR will double every decade, using the asset growth Rule of 72
Breakeven Analysis of Starting Social Security Late
Tax Free Retirement Planning Insights Breakeven Analysis of Starting Social Security Benefits
Macroeconomic View of Entitlement Program
With entitlement programs requiring a growing share of the federal budget, benefit
Performance Comparison of Retirement Savings Buckets
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Tax Treatment of Investment and Retirement Accounts
Post-Tax accounts, both retirement accounts and non-retirement investments, provide the best shelter
Breakeven Analysis of Starting Social Security Late
Tax Free Retirement Planning Insights Breakeven Analysis of Starting Social Security Benefits
Macroeconomic View of Entitlement Program
With entitlement programs requiring a growing share of the federal budget, benefit
Tax Treatment of Investment and Retirement Accounts
Post-Tax accounts, both retirement accounts
Did You Know?
Social Security benefits can start being received as early as age 62. However, delaying this will eventually prove more beneficial if one expects to live past their late 70s
Modeling a Tax-Free Retirement Scenario
Using an advanced Tax-Free Retirement Calculator, we show how to implement a
A Framework for a Tax-Free Retirement
Achieve a near ≈0% income tax during retirement by optimally allocating your
How to Move Asset Between Tax Buckets
There are many methods available to right-size a bloated 401k or IRA
Modeling a Tax-Free Retirement Scenario
Using an advanced Tax-Free Retirement Calculator, we show how to implement a
A Framework for a Tax-Free Retirement
Achieve a near ≈0% income tax during retirement by optimally allocating your
How to Move Asset Between Tax Buckets
There are many methods available to right-size a bloated 401k or IRA
Did You Know?
Cumulative contribution to popular retirement accounts such as 401k and IRAs maxes out at ~$1M over the course of one's working life
IUL Benefits
Shelter taxable assets, provide market growth while protecting the principal, and then
Life Insurance Product Types
Life Insurance products have evolved so as to be able to serve
IUL vs. S&P 500 Performance
We compare two different investment scenarios—endowment and income strategy, in which IUL
IUL / FIA Credit Strategies and Capital Preservation Explained
IUL / FIA is a conservative alternative to direct investment in the
How Index Crediting Works
Investments like IULs and Annuities use an index crediting method to track
Mechanics of IUL
Comparison and contrast between Increasing vs. Level Death Benefit IUL designs, Cash
IUL Policy Design Considerations
IUL policy design and selection involves a multitude of factors. It should
Separating Facts from Myths in the Cash Value Insurance Business
General observation about agent qualification, sales tactics, commission, product benefits, asset diversification
IUL Benefits
Shelter taxable assets, provide market growth while protecting the principal, and then
Life Insurance Product Types
Life Insurance products have evolved so as to be able to serve
IUL vs. S&P 500 Performance
We compare two different investment scenarios—endowment and income strategy, in which IUL
IUL / FIA Credit Strategies and Capital Preservation Explained
IUL / FIA is a conservative alternative to direct investment in the
How Index Crediting Works
Investments like IULs and Annuities use an index crediting method to track
Mechanics of IUL
Comparison and contrast between Increasing vs. Level Death Benefit IUL designs, Cash
IUL Policy Design Considerations
IUL policy design and selection involves a multitude of factors. It should
Separating Facts from Myths in the Cash Value Insurance Business
General observation about agent qualification, sales tactics, commission, product benefits, asset diversification
Did You Know?
An IUL (Indexed Universal Life), when it is designed and maintained as a long-term investment vehicle, is a powerful retirement income generator as well as a tax-free savings account
How an Annuity Works
A deferred Fixed Index Annuity (FIA) tracks a market index during the
Annuity Product Types
In the following, we distinguish between several annuity types: Immediate vs. Deferred,
Longevity Risk
Planning for a shorter life expectancy risks outliving one’s savings. Planning for
Annuity Policy Design Considerations
The key factors in selecting a deferred FIA as part of a
Mechanics of an Annuity
A more in-depth look at how FIA’s Cash/Income Value accounts function during
Annuity Moves Efficient Frontier
An Annuity lowers portfolio volatility thereby improving the risk/return profile of the
Annuity Tax Implications
An annuity is a tax-deferred instrument in which distribution taken during Accumulation
How an Annuity Works
A deferred Fixed Index Annuity (FIA) tracks a market index during the
Annuity Product Types
In the following, we distinguish between several annuity types: Immediate vs. Deferred,
Longevity Risk
Planning for a shorter life expectancy risks outliving one’s savings. Planning for
Annuity Policy Design Considerations
The key factors in selecting a deferred FIA as part of a
Mechanics of an Annuity
A more in-depth look at how FIA’s Cash/Income Value accounts function during
Annuity Moves Efficient Frontier
An Annuity lowers portfolio volatility thereby improving the risk/return profile of the
Annuity Tax Implications
An annuity is a tax-deferred instrument in which distribution taken during Accumulation
Did You Know?
Supplement Social Security benefits by creating your own pension plan using an Annuity. A good Annuity can provide a risk-free, tax-free (if bought within a Roth IRA), inflation-protected lifetime income during retirement
LTC vs. Chronic Illness Benefits
Insurance policies with LTC coverage provide better benefits than those with Chronic
Medicare Choices for Seniors
A high-level overview of the two Medicare options available for Seniors and
LTC Policy Design Considerations
Besides coverage level, a number of other policy features are important to
How a LTC Policy Works
A top-quality standalone LTC policy can provide guaranteed inflation-adjusted tax-free LTC benefits,
LTC vs. Chronic Illness Benefits
Insurance policies with LTC coverage provide better benefits than those with Chronic
Medicare Choices for Seniors
A high-level overview of the two Medicare options available for Seniors and
LTC Policy Design Considerations
Besides coverage level, a number of other policy features are important to
How a LTC Policy Works
A top-quality standalone LTC policy can provide guaranteed inflation-adjusted tax-free LTC benefits,
Did You Know?
LTC (Long-Term Care) policy is an investment to manage one’s health-related financial risk. Get your LTC policy while still healthy and eligible, ideally in your 50s
TCJA Changes to Real Estate
TCJA law changes made property tax in states with high income tax
Understanding Mortgage Interest
In today’s low interest environment, it costs $5 a month for every
Mortgage Loan Qualification for Different Home Types
Using the criteria banks use to qualify for a mortgage, we show
How Much of a Mortgage Loan Can You Qualify For?
In today’s low-interest rate environment, with 20% down, you can qualify for
Tax Implications of a Home Sale
A summary of tax implications from the sale of a primary residence
Comparing Home Buys Using the TCHO MetricTemplate
An effective home price calculated with the TCHO metric can be used
True Cost of Home Ownership (TCHO), a New Metric
TCHO is a holistic measure of home costs based on the market
TCJA Changes to Real Estate
TCJA law changes made property tax in states with high income tax
Understanding Mortgage Interest
In today’s low interest environment, it costs $5 a month for every
Mortgage Loan Qualification for Different Home Types
Using the criteria banks use to qualify for a mortgage, we show
How Much of a Mortgage Loan Can You Qualify For?
In today’s low-interest rate environment, with 20% down, you can qualify for
Tax Implications of a Home Sale
A summary of tax implications from the sale of a primary residence
Comparing Home Buys Using the TCHO MetricTemplate
An effective home price calculated with the TCHO metric can be used
True Cost of Home Ownership (TCHO), a New Metric
TCHO is a holistic measure of home costs based on the market
Did You Know?
Rent to Buy ratio in high-priced home markets is 1:300, in today's low-interest environment. For example, paying $3,000 in rent is equivalent to owning a $900K home in true costs
Types of Financial Aid
A college financial aid package is a combination of merit-based grants from
College Savings Plan
The 529 college savings plan allows after-tax investment to grow and be
College Costs and University Endowment Model
Today’s cost of tuition at a public institution of higher education is
The FAFSA Process
The FAFSA process discounts the income and assets of students differently than
Types of Financial Aid
A college financial aid package is a combination of merit-based grants from
College Savings Plan
The 529 college savings plan allows after-tax investment to grow and be
College Costs and University Endowment Model
Today’s cost of tuition at a public institution of higher education is
The FAFSA Process
The FAFSA process discounts the income and assets of students differently than
Did You Know?
Sending two children to college is a quarter of a million dollars expense in today’s costs (and twice the cost for newborns). But it can be managed with a 529 plan and Government-sponsored financial aid
Key Aspects of the TCJA Law
We summarize here the significant changes brought about by the TCJA law
Quick Income Tax Calculation
Personal Income tax components include Federal, State and FICA. We provide a
Income Tax Calculation Flow and Deductions
An overview of the Federal income tax calculation starting from your paycheck,
Miscellaneous Tax Topics
We discuss the personal tax consequences related to Capital Loss deductions, Wash
Key Aspects of the TCJA Law
We summarize here the significant changes brought about by the TCJA law
Quick Income Tax Calculation
Personal Income tax components include Federal, State and FICA. We provide a
Income Tax Calculation Flow and Deductions
An overview of the Federal income tax calculation starting from your paycheck,
Miscellaneous Tax Topics
We discuss the personal tax consequences related to Capital Loss deductions, Wash
Did You Know?
When applying the tax rates, LTCG (Long Term Capital Gain) is stacked on top of Ordinary Income. Hence, investment gain will not affect your marginal tax rate or bump up your highest tax bracket
QBI Pass-Through Deduction
Also known as QBI or 199A deduction, the TCJA introduced a new
Taxation of Sole Proprietorship vs. S-Corp
S-Corp receives a favorable tax treatment when compared to a Sole Proprietorship,
Business Corporate Structures
Taxation and management overhead dictate the choice of business structure. The latter
Business Loss Treatments
An overview of how the different types of business losses are treated
Deducting CapEx
Both Bonus Depreciation and Section 179 Expensing allows capital expenditure (CapEx) to
QBI Pass-Through Deduction
Also known as QBI or 199A deduction, the TCJA introduced a new
Taxation of Sole Proprietorship vs. S-Corp
S-Corp receives a favorable tax treatment when compared to a Sole Proprietorship,
Business Corporate Structures
Taxation and management overhead dictate the choice of business structure. The latter
Business Loss Treatments
An overview of how the different types of business losses are treated
Deducting CapEx
Both Bonus Depreciation and Section 179 Expensing allows capital expenditure (CapEx) to
Did You Know?
S-Corp gets favorable FICA tax treatment when compared to Sole Proprietorship. S-Corp owners can split their earnings into salary and unearned distribution where the latter is not subject to self-employment FICA tax
Cyclic Nature of Asset Classes
Uncorrelated asset classes have different boom/bust cycles. Capitalize on these by including
S&P 500 Performance in the Last 50 Years
Annualized return is ≈10% with a 17% volatility. Three quarters of annual
Types of Asset Classes
Categories and characteristics of widely used asset classes such as US/Foreign Stocks,
Efficient Frontier and Diversification
Those optimal portfolios which provide the highest return for a given risk
Portfolio Construction and Rebalancing
Portfolios provide middle-of-the-road performance when compared to its constituent positions but at
Asset Classes 30-Year Performance History
The order of performance based on comparison of a representative sample from
Cyclic Nature of Asset Classes
Uncorrelated asset classes have different boom/bust cycles. Capitalize on these by including
S&P 500 Performance in the Last 50 Years
Annualized return is ≈10% with a 17% volatility. Three quarters of annual
Types of Asset Classes
Categories and characteristics of widely used asset classes such as US/Foreign Stocks,
Efficient Frontier and Diversification
Those optimal portfolios which provide the highest return for a given risk
Portfolio Construction and Rebalancing
Portfolios provide middle-of-the-road performance when compared to its constituent positions but at
Asset Classes 30-Year Performance History
The order of performance based on comparison of a representative sample from
Did You Know?
The S&P 500 index returned an annualized ~10% CAGR (including dividends) with a 17% volatility over the last 50 years (1970-2019)
Portfolio Tracker and Analyzer
Yahoo Finance has free tools to create and monitor portfolios. Morningstar’s portfolio
How to Analyze Stocks
Fundamental stock analysis using financial metrics usually published alongside a stock price
How a Bond Works
A bond is a fixed income financial instrument with complex characteristics. We
Popular Option Strategies
Stock and Call/Put options are combined to implement advanced trading strategies such
Bond Ladder Using TIPS
A TIPS bond ladder can provide inflation-risk free retirement income. We will
Portfolio Tracker and Analyzer
Yahoo Finance has free tools to create and monitor portfolios. Morningstar’s portfolio
How to Analyze Stocks
Fundamental stock analysis using financial metrics usually published alongside a stock price
How a Bond Works
A bond is a fixed income financial instrument with complex characteristics. We
Popular Option Strategies
Stock and Call/Put options are combined to implement advanced trading strategies such
Bond Ladder Using TIPS
A TIPS bond ladder can provide inflation-risk free retirement income. We will
Did You Know?
Munis are State issued bonds. California currently offers 2-3% interest on a 30-year bond which is AA rated. Interest is not subject to Federal or CA State tax
What is an Estate Trust?
The basic structure of an estate trust, its principles, and the differences
Estate and Gift Taxes
The current estate tax rate and exemption amounts have been very favorable
Charitable Remainder Trust (CRT)
A CRT is an advanced estate planning method in which a highly
Irrevocable Life Insurance Trust (ILIT)
An ILIT is an estate planning tool that allows you to carve
What is an Estate Trust?
The basic structure of an estate trust, its principles, and the differences
Estate and Gift Taxes
The current estate tax rate and exemption amounts have been very favorable
Charitable Remainder Trust (CRT)
A CRT is an advanced estate planning method in which a highly
Irrevocable Life Insurance Trust (ILIT)
An ILIT is an estate planning tool that allows you to carve
Did You Know?
ILIT (Irrevocable Life Insurance Trust) allows high net worth individuals to carve out a portion of their estate in the form of a life insurance as a separate tax entity
Mortgage Loan Qualification Calculator
Free Online CalculatorPresented by FinCraftersMortgage LoanQualification CalculatorYour first step towards Home Buying Economics!Calculate
Mortgage Loan Qualification Calculator
Free Online CalculatorPresented by FinCraftersMortgage LoanQualification CalculatorYour first step towards Home Buying Economics!Calculate
