Element’s® monthly reports will keep us on the same page, prompt regular conversations about your goals and progress, and offer objective data to help us make the best decisions for your finances.
Er
Er
Indicates whether your current investments may involve too much volatility risk for your age and spending levels.
Equity rate (Er) is calculated by dividing your equity investment holdings by the total amount of investable assets you own.
Equity Holdings
Total Investible Assets
Es
Es
Helps determine how prepared you are to answer end-of-life financial questions.
Estate status (Es) is calculated by dividing the current amount of estate planning you’ve completed and had reviewed by the amount of estate planning you still need.
Current Estate Planning
Recommended Estate Planning
Ir
Ir
Measures how much insurance you have compared to how much you potentially need based on your annual spending and net worth.
Insurance rate (Ir) is calculated by dividing the life and disability insurance coverage you have by the coverage you still potentially need.
Coverage Held
Coverage Potentially Needed
Lt
Lt
Estimates the number of years you could live on cash or cash-like assets outside of retirement plans. Also indicates the amount of after-tax money you could access if needed.
Liquid term (Lt) is calculated by dividing your total liquid assets by your estimated annual personal spending.
Total Liquid Assets
Estimated Annual Spending
Qt
Qt
Estimates the number of years you could live on the assets you have within qualified retirement plans, HSA plans, etc.
Qualified term (Qt) is calculated by dividing your total qualified retirement investments by your estimated annual personal spending.
Total Retirement Accounts
Estimated Annual Spending
Rt
Rt
Estimates the number of years you could live on your current real estate equity and how much of your wealth is concentrated in real estate.
Real estate term (Rt) is calculated by dividing the sum of all your personal and investment real estate equity by your estimated annual personal spending.
Total Real Estate Equity
Annual Personal Spending
Tt
Tt
Estimates the number of years you could live on your current assets (cash, investments, business value, real estate equity, etc.) if they didn’t grow.
Total term (Tt) is calculated by dividing your current net worth by your estimated annual personal spending.
Current Net Worth
Estimated Annual Spending
Sr
Sr
Indicated how much of your income is being saved for future expenses, emergencies, and retirement. Also an indicator of your overall financial security.
Savings rate (Sr) is calculated by dividing your total annual savings by your total annual income. Savings include deposits made to investment accounts and other savings accounts.
Total Annual Savings
Total Annual Income
Br
Br
Indicates how much of your income you’re using for personal expenses. This can help you understand everything from spending patterns to future preparedness.
Burn Rate (Br) is calculated by dividing your personal annual spending by your personal annual income. It indicates how much of your income is used for personal expenses.
Estimated Annual Spending
Total Annual Income
Dr
Dr
Indicates whether you’re dealing with a healthy amount of debt for your individual circumstances.
Debt rate (Dr) is calculated by dividing your total personal and business debt payments by personal income.
Total Annual Debt Payments
Total Annual Income
Tr
Tr
Indicates how much of your personal income you’re paying toward taxes.
Tax rate (Tr) is calculated by dividing your total personal taxes by your total annual income.
Total Annual Taxes Paid
Total Annual Income
In
In
Indicates what you’ve done with your resources by showing the percentage of your income that you’ve converted into net worth in your lifetime.
Income rate (In) is calculated by dividing your current net worth by your total estimated lifetime income.
Current Net Worth
Total Estimated Lifetime Income
