Financial health check

[ConstantinoSchillebeeckx]

EDIT see repo here

The idea is that the site would walk the user through the following decision tree in a very simplified manner. This creates a snapshot of the current financial health which could be used to create suggestions on what to do next in order to improve their FI (financial independence)

[charbo25]

This is great, and I'll say it again and again that we need to keep it simple. Otherwise, this flow chart would be sufficient. So from the viewpoint of the user, I step in, give you some basic info, and the site/app gives me a step-by-step of what to do.

What are the inputs? -Income (monthly; net after tax) -Fixed expenses -Debts (with interest rates) -Employer 401(k) matching info -Current emergency fund size

What's the output?

• A month-by-month plan of how many dollars to put in each bin (savings, debt, investments). Should be very simple to visualize, graphically pleasing. I'm imagining being able to flip month to month coverflow style.
• Graphic(s) showing portfolio size over time, given the plan.

[ConstantinoSchillebeeckx]

User visits site and selects financial health check and is presented with a single question on each "screen". The screen will have a little icon to view more info about why this question is asked, etc; however it's supposed to be simple and straight to the point.

Note: behind the scenes we can capture IP, and use it to see where the user is located. We use that info to generalize a cost of living. The point here is to reduce the complexity and make some general assumptions from the beginning.

this details the simple profile

1. What is your net income per year (before taxes)
2. Do you have any debts? yes -> allow user to enter debt amount with interest rate, can enter several no -> go to 3
3. Do you have an emergency fund of 6 months? yes -> go to 4 no -> explain why this is important -> go to 4
4. Does your employer offer a matched 401(k)? no -> go to 5 yes -> explain how the person should at least invest the minimum amount needed to take advantage of the match -> go to 5
5. Do you expect to pay more or less taxes when you retire? more -> invest in Roth IRA less -> invest in traditional IRA
6. Do you still have discretionary income to invest? yes -> choose an investment strategy from the dropdown and it suggests what to do ...

[charbo25]

Comments on the above:

1. I really like the one question per screen idea.
2. On emergency funds, we should change it to 'How much money do you have saved in cash accounts?'. We can calculate how much they should have based on their income/location separately and make a recommendation based on their answer. Also, expecting 6-months up front is pretty aggressive if they have high interest debts like credit cards.