Financial Playbook for High-Income Earners

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

• 12 to 18 months

• 3 to 6 months

• 6 to 12 months

• 1 to 2 months

Which type of account is suggested for keeping a large cash balance over $50,000?

• Regular savings account

• Cash management account

• Checking account

• Fixed deposit account

What is one of the key benefits of an HSA?

• It provides a loan facility

• Contributions are tax-deductible

• It offers a fixed interest rate

• It is only for retirement savings

What should you ensure when you have an HSA?

• Use it only for immediate expenses

• Keep funds in cash

• Avoid using it for medical expenses

• Invest in low-cost index funds

What is a mega backdoor contribution?

• A strategy for immediate debt repayment

• A way to contribute beyond the normal 401k limit

• A type of high-interest savings account

• A method to avoid taxes on income

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

• If the debt is less than $5,000

• As a top priority

• When you have no other debts

• Only if you have extra savings

What is the suggested investment strategy for a taxable brokerage account?

• Invest in high-risk ventures

• Invest in individual stocks

• Keep funds in cash

• Invest in ETFs like VTI and VO

What is the purpose of umbrella insurance?

• To cover health expenses

• To offer life insurance benefits

• To provide additional liability coverage

• To insure personal belongings

What is a key consideration when managing RSUs?

• Convert them to cash immediately

• Hold them indefinitely

• Use them for short-term expenses

• Sell them immediately upon vesting

What is the recommended equity allocation for individuals under 50?

• 40 to 60%

• 60 to 80%

• 80 to 100%

• 20 to 40%