Questions About Income, Debt, and Net Worth
What is your current annual gross income, and how does it compare to the median U.S. household income of $75,580 reported by the U.S. Census Bureau in 2023 U.S. Census Bureau? How much total debt do you carry, and what is your debt-to-income ratio based on your latest credit report? SEC Investor.gov
What is your estimated net worth, and how is it split between liquid assets, retirement accounts, and real estate? Do you track your net worth monthly, and which tools or apps do you use to aggregate balances across accounts?
Questions About Investing, Risk Tolerance, and Financial Goals
What percentage of your portfolio is allocated to stocks versus bonds, and how does that mix align with standard target-date allocations from major providers like Vanguard or Fidelity Vanguard? Have you experienced a market drawdown of 20% or more, and how did you react when the S&P 500 fell more than 30% in early 2020 Forbes?
What is your primary financial goal for the next five years, and how much are you saving annually toward it? Do you use automated rebalancing, dollar-cost averaging, or tax-advantaged accounts like a 401(k) or IRA to stay on track?
Questions About Spending Habits, Financial Security, and Future Planning
What is your largest recurring monthly expense, and how does it compare to the average U.S. household spending on housing, which was $24,248 per year according to the latest Bureau of Labor Statistics data BLS? Do you maintain an emergency fund that covers at least three to six months of expenses?
Have you set up estate planning documents such as a will, trust, or power of attorney, and when was the last time you reviewed beneficiary designations on retirement accounts and insurance policies? How do you plan to fund major future purchases or retirement without relying solely on Social Security?