Financial Planning FAQ — DIY Wealth Planning

Question 1

What is DIY Wealth Planning and how does it work?

Accepted Answer

DIY Wealth Planning is a free financial education platform that helps middle-income families assess their financial health, build an educational action roadmap, and connect with a professional when they want support. The process follows five steps: take the free Cube Wealth Readiness Assessment, receive a scored report across six financial pillars, generate an AI-Generated Educational Action Roadmap, explore six guided modules in the Financial Command Center, and book a free 30-minute consultation if you want one. Most people complete the first step in under five minutes.

Question 2

Is DIY Wealth Planning free?

Accepted Answer

The Cube Wealth Readiness Assessment, your personalized score report, the calculators, and the educational roadmap are all free. Some optional professional services offered through affiliated providers may involve fees — see our service disclosures for details.

Question 3

How is DIY Wealth Planning different from a traditional financial advisor?

Accepted Answer

DIY Wealth Planning is an education-first platform: free tools and plain-language resources come first, and professional support is always optional. See our service disclosures for information about service providers and available support.

Question 4

Do I need a lot of money to start working with DIY Wealth Planning?

Accepted Answer

No minimum account balance is required. DIY Wealth Planning was built for families in the process of building wealth. The assessment is free, takes about five minutes, and gives you an honest baseline wherever you are financially.

Question 5

What is the Cube Wealth Readiness Engine™?

Accepted Answer

The Cube Wealth Readiness Engine™ is a 16-question financial assessment that scores your financial health across six pillars: Protection, Emergency Fund, Debt Management, Investing, Wealth Building, and Financial Habits. Your answers generate a composite score from 0 to 100, placing you in one of five tiers from At Risk (0–39) to Wealth Ready (90–100). It is an educational prioritization tool, not a comprehensive financial assessment.

Question 6

What are the six financial pillars DIY Wealth Planning scores?

Accepted Answer

The six pillars are: (1) Protection — life, disability, and liability coverage plus estate document basics; (2) Emergency Fund — emergency savings and liquid reserves; (3) Debt Management — debt-to-income ratio and payoff strategy; (4) Investing — contribution rates, retirement account usage, and income replacement; (5) Wealth Building — savings rate, assets beyond retirement accounts, and long-term growth; (6) Financial Habits — budgeting, tracking, and the routines that keep a plan alive.

Question 7

What is a Financial Independence (FI) number and how do I calculate mine?

Accepted Answer

Your FI number is the total investment portfolio value you need to cover your living expenses indefinitely without working. The most widely used formula is Annual Expenses × 25, derived from the 4% safe withdrawal rate. A more conservative approach uses a 3% withdrawal rate (Annual Expenses × 33) for longer retirements.

Question 8

What is the 4% rule and is it still valid?

Accepted Answer

The 4% rule states that a retiree can withdraw 4% of their portfolio in year one, then adjust for inflation each year, with a high probability the portfolio will last 30 years. Many planners now recommend 3%–3.5% for early retirees or those planning for a 35+ year retirement.

Question 9

How much should I have saved for retirement by age?

Accepted Answer

Common benchmarks are 1× your annual salary saved by age 30, 3× by 40, 6× by 50, and 8× by 60. However, these assume a traditional retirement at 65. The more accurate method is to calculate your personal FI number based on your actual spending and work backward from there.

Question 10

What is longevity risk in retirement planning?

Accepted Answer

Longevity risk is the risk of outliving your money. According to the SSA, a 65-year-old man has a 50% chance of living to 84, and a 65-year-old woman to 87. One in four 65-year-olds lives past 90. Strategies include delaying Social Security to 70, using a 3%–3.5% withdrawal rate, building a bond ladder, and maintaining growth assets.

Question 11

What is a Roth IRA and should I use one?

Accepted Answer

A Roth IRA is funded with after-tax dollars; contributions grow tax-free and qualified withdrawals are tax-free. For 2026, the contribution limit is $7,500 ($8,600 if 50 or older), per the IRS. It is generally better if you expect a higher tax bracket in retirement. Florida has no state income tax, which affects the decision for Tampa-area residents.

Question 12

What is an index fund and why do most financial planners recommend them?

Accepted Answer

An index fund tracks a market index like the S&P 500 with expense ratios of 0.03%–0.20% per year, far lower than actively managed funds at 0.5%–1.5%. Most actively managed funds underperform their benchmark over 10+ years due to fees. A diversified portfolio of low-cost index funds is the evidence-based foundation for most individual investors.

Question 13

What is the Rule of 72 in investing?

Accepted Answer

The Rule of 72 estimates how long it takes an investment to double: divide 72 by the annual return rate. At 6% growth, money doubles in 12 years; at 8%, in 9 years; at 10%, in 7.2 years. It also works in reverse — at 3% inflation, purchasing power halves in 24 years.

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