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Avoid claiming Social Security at 62 without knowing it reduces benefits by 30%. Check your earnings record for errors, consider spousal benefits, and be aware that working while claiming early can...
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Most startup cost calculators are free and available online. This allows you to plan your budget without any financial commitment.
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Startup runway is the amount of time your company can continue operating before running out of cash, based on your current burn rate. It's typically measured in months and calculated by dividing yo...
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Burn rate is calculated by subtracting your monthly revenue from your monthly expenses. There are two types: gross burn rate (total monthly expenses regardless of revenue) and net burn rate (expens...
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Most investors and advisors recommend maintaining at least 12-18 months of runway at all times. This gives you enough time to execute your business plan, hit key milestones, and raise your next fun...
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There are several strategies to extend runway: 1) Increase revenue through sales acceleration, price increases, or new revenue streams. 2) Reduce burn rate by cutting non-essential expenses, renego...
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Start fundraising when you have 12-15 months of runway remaining. This timing is crucial because: 1) Fundraising takes 6-9 months on average from first pitch to money in the bank. 2) You want to ra...
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Common mistakes include: 1) Forgetting to include all expenses like taxes, insurance, legal fees, and one-time costs. 2) Being overly optimistic about revenue projections - use conservative estimat...
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Yes, absolutely include founder salaries in your burn rate calculations, even if founders are currently working for reduced pay or equity-only. Here's why: 1) It gives an accurate picture of your t...
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Short-term capital gains apply to stocks held for one year or less and are taxed at your ordinary income tax rate (10-37%). Long-term capital gains apply to stocks held over one year and are taxed ...
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The wash sale rule prevents you from claiming a tax loss if you buy the same or substantially identical security within 30 days before or after selling at a loss. For example, if you sell Stock XYZ...
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Break-even price = (Total Cost + Transaction Fees + Taxes) / Number of Shares. For example, if you bought 100 shares at $50 with $10 commission ($5,010 total cost) and will pay 15% capital gains ta...
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Cost basis is your original purchase price plus commissions and fees - it determines your taxable gain or loss. If you bought 100 shares at different prices (dollar-cost averaging), the IRS allows ...
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Most states tax capital gains as ordinary income, with rates from 0% (Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming) to 13.3% (California top rate). State taxes stack...
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The S&P 500 has averaged about 10% annual returns before inflation (approximately 7% after inflation) over the long term since 1928. However, returns vary significantly year-to-year and by time per...
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Longer time horizons (15+ years) dramatically reduce the risk of loss from stock market volatility. While stocks can lose 30-40% in a single year, no 20-year period has produced negative returns fo...
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Reinvest dividends (DRIP) if you don't need income and have a 10+ year horizon - the compounding effect can add 30-50% to your total returns over decades. Take cash dividends if you're retired, nee...
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Higher potential returns come with higher risk (volatility). Stocks historically return more than bonds (10% vs 5%) but with more volatility (standard deviation of 15-20% vs 5-10%). Diversification...
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