Financial Playbook for High-Income Earners

What is the recommended duration for an emergency fund for high-income earners?

• 1 to 2 months

• 3 to 6 months

• 6 to 12 months

• 12 to 18 months

What is one of the key benefits of an HSA?

• It is only for retirement savings

• It offers a fixed interest rate

• Contributions are tax-deductible

• It provides a guaranteed return

What is a mega backdoor contribution?

• A way to exceed normal 401k contribution limits

• A method to avoid paying taxes

• A type of high-interest savings account

• A strategy for paying off debt

When should you consider paying off debts with interest rates over 10%?

• As a top priority

• Only if you have a low income

• Only if you have extra savings

• Only if you have no other debts

What is a recommended investment strategy for high-income earners?

• Investing only in real estate

• Keeping all money in savings accounts

• Investing in individual stocks

• Investing in ETFs like VTI and VO

What should you do with RSUs as soon as they vest, according to the guide?

• Transfer them to a 401k

• Hold them indefinitely

• Sell them immediately

• Convert them to cash

What percentage of equities is recommended for those under 50?

• 80 to 100%

• 20 to 40%

• 40 to 60%

• 60 to 80%

What type of insurance is important for high earners to protect against lawsuits?

• Travel insurance

• Umbrella insurance

• Pet insurance

• Health insurance

What is the benefit of umbrella insurance for high earners?

• It provides additional liability coverage

• It covers health expenses

• It reduces mortgage payments

• It increases retirement savings

What is the suggested life insurance coverage according to the guide?

• 2 to 4 times your income

• 8 to 10 times your income

• 1 to 2 times your income

• 4 to 8 times your income