Five Track-C engines for the parts of personal wealth that markets don't price: real estate, side-income retirement plumbing, treasury ladders, insurance over- and under-spend, estate plumbing. Per Bible §6.6 (proactively add factors when identified) — these are non-market wealth streams that compound alongside the trading book.
Add a property in localStorage (data persists) and compute lender-grade metrics: NOI, cap rate (NOI / value), DSCR (NOI / debt service — > 1.25 lendable), cash-on-cash (annual cash flow / cash invested). Ideal for evaluating rentals before purchase.
Solo 401(k) almost always wins for solo operators because it allows the employee deferral ($23,500 + $7,500 catchup-50) PLUS employer side. SEP-IRA caps at 25% of net SE.
T-bills are state-tax exempt; HYSA is fully taxable. In a high-tax state, the after-tax advantage can be 50-150 bps even when nominal yields are similar.
Most-mis-sold product class. Whole life premiums are typically 10-15× term premiums for equivalent death benefit; the difference invested at S&P returns dwarfs the cash value.
DIME-derived (Debt + Income + Mortgage + Education) plus liquid-asset offset. Tells you how much term to buy, not what kind.
Meulbroek 2003 cap (1.7× terminal-wealth impact). Hard cap 10% NW; soft cap 5%. Employer stock + human capital are correlated — concentration risk is the single largest wealth driver for tech employees.
Hewitt & Tan 2007 AMT-trap rule: HOLD ISOs only if (FMV − strike)/strike ≤ 25% AND employer concentration < 10%. Otherwise the AMT prepay risk dominates LTCG benefit.
Larcker-Tayan 2009 + Jagolinzer 2009: optimal liquidation horizon T* ≈ 18-24 months for tech employees with 30%+ concentration. Monthly tranches with ±20% collar limit forced sales at trough.
2026 AMT exemption $85,700 (single); 26% below $232,600 transition; 28% above. Add an ISO grant (one-time setup), then probe AMT exposure for a hypothetical exercise.
Federal exemption reverted post-TCJA-sunset to $7M (2026). State estate taxes vary widely — NY, MA, OR, WA, CT, MN, MD, VT, IL, ME, RI, HI, DC all have separate state-level thresholds.
If retirement marginal rate > current marginal rate (gap years, sabbatical, early retirement before SS/RMD), Roth converting is one of the highest-ROI moves available.
Real estate (v96): NPV swing uses Buy vs Rent decomposition (Felix Salmon / NYT calculator school) with explicit assumptions on appreciation (3% nominal default), opportunity cost (7% S&P real), property tax (state-specific), and selling costs (6% realtor + 1% transfer). Cap rate / DSCR / Cash-on-Cash follow standard real-estate analysis (Brueggeman & Fisher "Real Estate Finance and Investments").
Side income (v97): SE tax estimate uses 2024 brackets + Schedule SE (15.3% on first $168.6K). Solo 401(k) limits per IRS Pub 560 (employee $23K + employer 25% of net SE earnings; combined cap $69K). SEP-IRA = 25% of net SE earnings, $69K cap.
Treasury ladders (v99): yield curve from current Treasury auction results (FRED). Default ladder: 4-quarter, equal weight; convexity penalty for inverted curve regimes. Re-investment risk shown as 1σ band.
Insurance anti-recommender (v102): rejects products where the expected indemnity-payout-to-premium ratio is below industry median (whole life ≈ 0.4 vs. term ≈ 0.97). Inspired by Helaine Olen "Pound Foolish" + Consumer Federation of America insurance reports.
Estate planning (v103): federal exemption $13.6M per individual (2024); state-level estate tax thresholds tracked separately. Step-up basis assumed for inherited brokerage assets.
Limitations: tax brackets need annual refresh; assumes US residency; ignores international tax treaties; insurance recommendations don't model your specific health rating / underwriting risk.