Uncover Your Financial Elements

Elements are the building block of life.

Your finances have elements too, which, knowingly or not, you've arranged to build your financial life.

Uncover your Financial Elements today with Open Window's quick, powerful, and private financial health assessment that you can use to help answer questions like:

• Are you on track to achieve financial security and independence, or perhaps, you're already there?
• Are you taking the right amount of risk?
• Are you using your income wisely?
• Do you have the right mix of assets?
• How much wealth do you need to make work optional?

If you're an Open Window client, you can see your personalized Financial Elements in your secure Vault at www.openwindowFS.com/plan.

Clients - See Your Financial Elements

If you're not yet a client, you can build your own Financial Elements right now, for free, by taking a few minutes to share with us at www.openwindowFS.com/financialelements. We will immediately return a confidential financial health assessment to you - a quick, powerful, private summary of your finances that you can use today.

Non-Clients - Uncover Your Financial Elements

Your 10 Financial Elements

Your Financial Elements provide a clear view of your financial health.

You can think of your 10 Financial Elements like your vital signs at your doctor’s office: they help you see how you’re doing and where we should focus our effort.

Financial Elements Table

Top Row: Are you taking the right amount of risk?

The top row of your Elements table contains two Financial Elements: Equity Rate (Er) and Insurance Rate (Ir)

These Elements indicate the risk levels within your investment portfolio and insurance profile respectively. 

The amount of risk you should take in each area will depend on a number of factors, including your tolerance for risk, career phase, access to cash, and financial intentions.

#1) EQUITY RATE

Equity Rate (Er) helps determine whether you will experience too much volatility risk for your personal level of spending, your age, and your financial intentions.

Typical Score Range: 45% - 85%

Equity Rate (Er) is calculated by dividing your equity investment holdings by the total amount of investable assets you own.

#2) Insurance Rate

Insurance Rate (Ir) measures how much insurance you have compared to how much you might need based on personal factors like income, spending, and net worth. Coverage is evaluated for the following types of insurance: life, disability, business overhead, buy-sell, key person, personal liability, and business liability.

Typical Score Range: 40% - 80%

Insurance Rate (Ir) is calculated by dividing the insurance coverage you have by the coverage you might still potentially need.

Middle Row: Are you using your income wisely?

The middle row of your Elements table addresses your cash flow. It contains four Financial Elements: Savings Rate (Sr), Burn Rate (Br), Debt Rate (Dr), and Tax Rate (Tr).

These Elements calculate the percentage of your total income that goes toward savings (Sr), spending (Br), debt (Dr), and taxes (Tr). 

These are the only four places your money can go, and it's important to keep them optimized.

#3) Savings RATE

Savings Rate (Sr) indicates how much of your income is being saved for future expenses, emergencies, and goals. It is also an indicator of your overall financial security.

Typical Score Range: 10% - 20%

Savings Rate (Sr) is calculated by dividing your annual savings by your total personal income. It includes deposits made to investment accounts and other savings accounts.

#4) Burn Rate

Burn Rate (Br) indicates how much of your income you spend, excluding debt payments. It can help you uncover your raw living expenses, understand your spending patterns, and gauge your preparedness for retirement.

Typical Score Range: 30% - 50%

Burn Rate (Br) is calculated by dividing your annual living expenses (less debt payments) by your total personal income.

#5) Debt RATE

Debt Rate (Dr) indicates the percentage of your income that is going towards debt payments. It can uncover whether you are servicing too much or too little debt for your individual circumstances.

Typical Score Range: 15% - 30%

Debt Rate (Dr) is calculated by dividing your total annual debt payments by total personal income.

#6) Tax RATE

Tax Rate (Tr) helps you determine if your tax bill could be reduced with better tax planning.

Typical Score Range: 10% - 35%

Tax Rate (Tr) is calculated by dividing your annual total taxes by your total personal income.

Bottom Row: Do you have the right mix of assets?

The bottom row of your Elements table provides a clear view of your assets and how they are distributed. It contains four to five Financial Elements: Liquid Term (Lt), Qualified Term (Qt), Real Estate Term (Rt), Business Term (Bt), and Total Term (Tt). Note: Only business owners will see the Business Term (Bt) Element.

These Elements represent your financial assets, how you hold them, and if there's an opportunity for better diversification.

#7) Liquid Term

Liquid Term (Lt) estimates the amount of money you could access quickly if needed. It also indicates the number of years you could live on your current "liquid assets" at your current lifestyle if neither changed. "Liquid assets" include cash or other assets that could be quickly converted to cash (like public stock, bonds, and money markets) held outside of your qualified retirement accounts.

Since Liquid Term (Lt) ignores the effects of asset gains or losses, inflation, taxes, and fees, it provides a narrowly true answer to the number of years you could potentially live on this asset. Think of it more as a starting point for a conversation versus a definitive answer.

Typical Score Range: 1.0 - 5.0

Liquid Term (Lt) is calculated by dividing your total liquid assets by your estimated annual living expenses.

#8) Qualified Term

Qualified Term (Qt) estimates the number of years you could live on the assets you have inside of your qualified retirement accounts (IRA/Roth IRA, 401K/Roth 401K, etc.), assuming withdrawals are for qualified purposes.

Since Qualified Term (Qt) ignores the effects of asset gains or losses, inflation, taxes, and fees, it provides a narrowly true answer to the number of years you could live on this asset. Think of it more as a starting point for a conversation versus a definitive answer.

Typical Score Range  (Age <35): 0.25 - 2.0

Typical Score Range (Age 35-45): 0.5 - 5.0

Typical Score Range (Age 45-55): 2.0 - 7.0

Typical Score Range (Age 55-65): 3.0 - 10.0

Qualified Term (Qt) is calculated by dividing your total retirement accounts by your estimated annual living expenses.

#9) Real Estate Term

Real Estate Term (Rt) estimates the number of years you could live on your current real estate equity. It also indicates how much of your wealth is concentrated in real estate.

Since Real Estate Term (Rt) ignores the effects of asset gains or losses, taxes, and fees, it provides a narrowly true answer to the number of years you could live on this asset. Think of it more as a starting point for a conversation versus a definitive answer.

Typical Score Range  (Age <35): 0.25 - 2.0

Typical Score Range (Age 35-45): 0.5 - 5.0

Typical Score Range (Age 45-55): 2.0 - 7.0

Typical Score Range (Age 55-65): 3.0 - 10.0

Real Estate Term (Rt) is calculated by dividing the sum of all your total real estate equity by your estimated annual living expenses.

Business Term

Business Term (Bt) will only appear for business owners.

Business Term (Bt) estimates the number of years you could live on your current business equity. It also indicates how much of your wealth is concentrated in your business. 

Since Business Term (Bt) ignores the effects of asset gains or losses, inflation, taxes, and fees, it provides a narrowly true answer to the number of years you could live on this asset. Think of it more as a starting point for a conversation versus a definitive answer.

Typical Score Range (Age <35): 0.25 - 2.0

Typical Score Range (Age 35-45): 0.5 - 5.0

Typical Score Range (Age 45-55): 2.0 - 7.0

Typical Score Range (Age 55-65): 3.0 - 10.0

Business Term (Bt) is calculated by dividing your total business equity by your annual living expenses.

Bottom Row: How much wealth do you need to make work optional?

When the first few elements on the bottom row are added together, they combine to create your Total Term (Tt).

Total Term (Tt) estimates the number of years you could live on your current wealth at your current lifestyle if neither changed. 

#10) Total Term

Total Term (Tt) estimates the number of years, assuming that you fully stopped working today, that you could live on your current assets (cash, investments, business value, real estate equity, etc.) if they didn't grow. It is a starting point for a conversation, not a definitive answer.

Since Total Term (Tt) ignores the effects of asset gains or losses, inflation, taxes, and fees, it will likely overstate the number of years you could live on these combined assets.

Typical Score Range  (Age <35): 0.25 - 5.0

Typical Score Range (Age 35-45): 5.0 - 15.0

Typical Score Range (Age 45-55): 15.0 - 25.0

Typical Score Range (Age 55-65): 25.0 - 35.0

Total Term (Tt) is calculated by dividing your net worth by your annual living expenses. It is also a summation of the Elements to its left, Liquid Term (Lt), Qualified Term (Qt), Real Estate Term (Rt), and, if applicable, Business Term (Bt).

Not all Financial Elements are numbers.

Financial Elements also represent the personal values you hold dear. 

Click below to select the values most important to you. 

Prioritize your top values, then click "Save as PDF" and share this with us during our next connection (or share it right now at www.openwindowFS.com/share).

Select The Values Most Important To You

Let's Get Started!

You can see your personalized financial elements right now, today, by taking a few minutes to share with us. We will immediately return a confidential financial health assessment to you - a quick, powerful, private summary of your finances that you can use today.

Uncover Your Financial Elements

Call us today at (775) 827-0670 or schedule a Quick Connection time with us at www.openwindowFS.com/connection.

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