Investment & Wealth Building Quick Reference

Essential strategies for growing wealth through smart investing

Investment Priority

1. Emergency Fund

3-6 months expenses

Foundation

2. Employer 401(k) Match

Up to full match

Free Money

3. High-Interest Debt

Pay off >7% interest

4. Max Tax-Advantaged

401(k), IRA, HSA

5. Taxable Brokerage

After maxing above

Asset Allocation

Simple Rule

Your Age in bonds

Conservative

60% stocks / 40% bonds

Moderate

70% stocks / 30% bonds

Most Common

Aggressive

80-90% stocks / 10-20% bonds

Rebalancing

Annually or at 5% drift

Risk Management

Diversification

Don't put eggs in one basket

Time Horizon

Longer = more risk OK

Dollar Cost Averaging

Invest consistently

Low Fees

< 0.20% expense ratio

Avoid Panic Selling

Stay the course

Key Metrics

Historical Stock Return

~10% annually (S&P 500)

Bonds Return

~5-6% annually

Safe Withdrawal Rate

4% rule

Rule of 72

Years to double = 72 / return%

Inflation

~3% historically

📊 Interactive Tools

Compound Interest Calculator

See the magic of compound interest in action. Compare different scenarios and understand why starting early matters.

⚡ Key Insight: Time in the market beats timing the market. The earlier you start, the less you need to invest to reach your goals.

Investment returns are never guaranteed. Past performance doesn't predict future results. Diversify and invest for the long term.