Terminal Value est. 2026
Financial 101

The basics, in the order that matters

Free, plain-language reference guides to the foundations of personal finance, written from the Boglehead philosophy: keep costs low, diversify broadly, automate, and stop tinkering. Nothing here is sold, and nothing here is personalised advice — it is the framework that lets you ask better questions of anyone who does give you advice.

The Order of Operations — one-page checklist

The eight steps below as a printable PDF, with 2026 limits. Free, no email required.

Download PDF

The order of operations

Where each next dollar should go. Work down the list; most people are on step two or three for years, and that is fine.

01
Starter emergency fund
About one month of essential expenses in a separate savings account. Stops the next surprise becoming debt. Guide →
02
Capture the full employer match
Contribute enough to your 401(k) to get every dollar your employer offers. It is part of your pay. Guide →
03
Kill high-interest debt
Credit cards and anything else charging double digits. Paying it off is a guaranteed return no investment can match.
04
Full emergency fund
Three to six months of essentials, sized to your job security and dependents. Guide →
05
Fund an HSA, if you are eligible
Only with a qualifying high-deductible health plan. Triple tax advantage; invest it rather than spend it if you can.
06
Max a Roth (or traditional) IRA
Your own account, your own fund choices, lowest costs. Guide →
07
Max the 401(k)
Go back and fill the rest of the workplace plan up to the annual limit. Guide →
08
Taxable brokerage and other goals
Everything above is full. Invest the rest in the same low-cost index funds, and start on the house, the sabbatical, or whatever comes next. Guide →

Throughout: low-cost index funds, a written stock/bond split, automatic contributions, and an annual rebalance. That is the whole strategy. The essays on this site spend a lot of words on why the exciting alternatives usually end worse.

The guides

Foundation

Emergency fund

Why it comes first, how much, where to keep it, and what counts as an emergency.

Accounts

401(k) basics

Traditional vs Roth, the match, 2026 limits, what to invest in, and the costly mistakes.

Accounts

Roth IRA basics

Tax-free growth, accessible contributions, income phase-outs, and how to open one.

Investing

Index funds & the three-fund portfolio

Why cost is the whole argument, and the simplest portfolio with a serious track record.

Products

Annuities explained

The one simple kind worth understanding, and why the complicated ones deserve scepticism.

Foundation

Banking basics

What a bank sells you, the three accounts you need, FDIC, and the fees that tell you how it thinks about you.

Credit

Credit cards

How interest really works, why rewards are a rebate not a goal, and the one rule.

Credit

Credit scores

The five factors, the two that matter, what moves it fast, and the expensive myths.

Retirement

Retirement planning

The 4% guideline, sequence risk, Social Security timing, and withdrawal order.

Insurance

Term life insurance

Who needs it, how much, and why term beats permanent for nearly everyone.

Insurance

Disability insurance

The most under-bought protection there is, and the clauses that decide whether it pays.

Advice

When you need a CPA

The situations that justify one, how the fee works, and CPA vs enrolled agent vs software.

Advice

How financial planners get paid

Five compensation models, their conflicts, and why a one-time fee-only review beats ongoing management for most people.

Income

Passive income, honestly assessed

Five real business models measured against the only genuinely passive option there is.

Tax

How the rules work and where the legitimate levers are. General information for tax year 2026, updated when the IRS publishes new figures each autumn; never a substitute for a professional on your own return.

In progress

Tax: capital gains and tax-loss harvesting · Tax: Roth conversions · Tax: HSA as a retirement account · Tax: employing family members (legitimately) · Tax: common mistakes · HSA basics · Traditional vs Roth: deciding · Backdoor Roth and the pro-rata rule · Target-date funds · Rebalancing · Paying off debt: avalanche vs snowball · 529 plans · How to read a fund’s expense ratio · Social Security basics · Taxes on investments · What a fiduciary is

How these are written

Each guide states its sources and the tax year its figures apply to, and gets re-checked when the IRS publishes new limits each November. They describe how things work; they do not tell you what to do. Corrections are welcome and get priority — see the about page.