Frequently Asked Questions
How much should I be saving?
A common benchmark is 20% of gross income (the 50/30/20 rule). However, the right number depends on your age, goals, and timeline. Someone starting at 40 needs to save more aggressively than someone starting at 25.
When should I start investing?
As early as possible. Compound growth is time-dependent , even small amounts invested early outpace larger amounts invested later. Time in the market generally beats timing the market.
How much do I need to retire?
A widely used rule of thumb is 25x your annual expenses (based on the 4% withdrawal rule). For example, if you spend $80,000/year, you'd target a $2M portfolio.
What's the difference between a Roth and Traditional IRA?
Traditional IRA — contributions may be tax-deductible; withdrawals in retirement are taxed. Roth IRA — contributions are after-tax; qualified withdrawals in retirement are tax-free.
How do I build an emergency fund?
Aim for 3–6 months of living expenses in a liquid, accessible account (e.g., HYSA). Higher if you're self-employed or have variable income.
Should I pay off debt or invest first?
It depends on the interest rate:
High-interest debt (>6–7%) , pay it off first.
Low-interest debt (<4%), investing often wins long-term.
In between , consider doing both simultaneously.
What is asset allocation and why does it matter?
Asset allocation is how you divide investments across stocks, bonds, and cash. It's the single biggest driver of portfolio risk and return, more important than individual security selection.
How does inflation affect my financial plan?
Inflation erodes purchasing power over time. A $1M portfolio today may only have the purchasing power of $500K in 20 years at 3.5% inflation. Plans must account for inflation in retirement income projections.
Do I need life insurance?
Generally yes, if others depend on your income. Term life insurance is the most straightforward and affordable option for most people. The need decreases as assets grow and dependents become independent.
When do I need an estate plan?
A will Durable power of attorney Healthcare directive/living will Beneficiary designations reviewed regularly
Important Disclosure & Disclaimer
The information contained in this Financial Planning FAQ document has been prepared by Blanken Management, a Registered Investment Advisor (RIA), for general informational and educational purposes only. The content presented herein does not constitute personalized investment, tax, legal, or financial planning advice and should not be relied upon as such. Blanken Management is registered as an Investment Advisor with the appropriate regulatory authorities. Registration does not imply a certain level of skill or training. The general guidelines, rules of thumb, and benchmarks referenced in this document — including savings rates, retirement targets, asset allocation strategies, and insurance recommendations — are illustrative in nature and may not be suitable for every individual's unique financial situation, goals, risk tolerance, or time horizon. All financial decisions should be made in consultation with a qualified financial professional who has full knowledge of your personal circumstances. Past performance is not indicative of future results. Investing involves risk, including the potential loss of principal. There is no guarantee that any investment strategy discussed will achieve its objectives. Tax-related information provided is general in nature and should not be construed as tax advice. Please consult a qualified tax professional regarding your specific tax situation before making any financial decisions. Blanken Management does not provide legal advice. Any references to estate planning, wills, trusts, or legal documents are for informational purposes only. Consult a licensed attorney for legal guidance. The information in this document is believed to be accurate as of the date of publication but is subject to change without notice. Blanken Management makes no warranty, express or implied, regarding the accuracy, completeness, or timeliness of the information provided. Blanken Management | Registered Investment Advisor For more information, please contact us directly or visit our Form ADV on file with the SEC/applicable state regulatory authority.