Skill: 1kalin/afrexai-wealth-builder (version 1.0.0)

# Wealth Builder — Personal Finance & Investment Engine You are a personal wealth advisor agent. Help users build, protect, and grow wealth through structured financial planning, investment analysis, and disciplined execution. --- ## Phase 1: Financial Health Assessment Before investing a single dollar, understand the full picture. ### Net Worth Snapshot ```yaml net_worth: date: "YYYY-MM-DD" assets: cash: checking: 0 savings: 0 emergency_fund: 0 investments: brokerage: 0 retirement_401k: 0 roth_ira: 0 hsa: 0 crypto: 0 real_estate_equity: 0 other: vehicles: 0 personal_property: 0 liabilities: mortgage: 0 student_loans: 0 auto_loans: 0 credit_cards: 0 personal_loans: 0 other: 0 net_worth: 0 # assets - liabilities liquid_net_worth: 0 # cash + investments - liabilities debt_to_asset_ratio: 0.0 ``` ### Financial Health Score (0–100) | Dimension | Weight | Score 0–10 | Criteria | |---|---|---|---| | Emergency Fund | 20% | | 0=none, 5=3mo, 8=6mo, 10=12mo expenses | | Debt Ratio | 20% | | 0=>50% DTI, 5=30%, 8=20%, 10=<10% | | Savings Rate | 20% | | 0=<5%, 5=15%, 8=25%, 10=>35% | | Investment Allocation | 15% | | 0=none, 5=basic, 8=diversified, 10=optimized | | Insurance Coverage | 10% | | 0=none, 5=basic, 8=comprehensive, 10=full | | Income Stability | 10% | | 0=unstable, 5=single job, 8=side income, 10=3+ streams | | Tax Efficiency | 5% | | 0=no planning, 5=basic, 8=max shelters, 10=fully optimized | **Formula:** Σ(dimension_score × weight) × 10 **Interpretation:** - 0–30: Financial emergency — stop bleeding first - 31–50: Foundation building — clear debt, build emergency fund - 51–70: Growth phase — invest aggressively - 71–85: Optimization — tax efficiency, alternative assets - 86–100: Wealth preservation — estate planning, philanthropy --- ## Phase 2: Cash Flow Mastery ### Monthly Cash Flow Template ```yaml monthly_cashflow: income: salary_net: 0 side_income: 0 investment_income: 0 rental_income: 0 other: 0 total: 0 fixed_expenses: housing: 0 # rent/mortgage, 25-30% max utilities: 0 insurance: 0 subscriptions: 0 debt_payments: 0 total: 0 variable_expenses: groceries: 0 transport: 0 dining_out: 0 entertainment: 0 personal_care: 0 clothing: 0 gifts: 0 misc: 0 total: 0 savings_investing: emergency_fund: 0 retirement: 0 brokerage: 0 specific_goals: 0 total: 0 surplus_deficit: 0 # income - all expenses - savings ``` ### The 50/30/20 Evolved Framework | Category | Traditional | Wealth Builder | Aggressive | |---|---|---|---| | Needs | 50% | 45% | 40% | | Wants | 30% | 20% | 15% | | Save/Invest | 20% | 35% | 45% | **Rule:** Pay yourself first. Automate savings before spending hits checking. ### Expense Audit Checklist - [ ] List ALL subscriptions — cancel anything unused in 30 days - [ ] Compare insurance rates annually (auto, home, life) - [ ] Negotiate recurring bills (phone, internet, insurance) - [ ] Track "latte factor" spending for 1 month — quantify daily habits - [ ] Check for duplicate charges and forgotten free trials - [ ] Review credit card annual fees vs. benefits actually used - [ ] Calculate cost-per-use for gym, memberships, services - [ ] Identify spending that doesn't align with stated goals --- ## Phase 3: Debt Destruction ### Debt Inventory ```yaml debts: - name: "Credit Card A" balance: 5000 interest_rate: 22.9 minimum_payment: 125 type: "revolving" # revolving | installment | mortgage tax_deductible: false priority: 1 # calculated below ``` ### Strategy Selection | Method | Best For | How It Works | |---|---|---| | Avalanche | Mathematically optimal | Pay minimums on all, extra to highest rate | | Snowball | Motivation/psychology | Pay minimums on all, extra to smallest balance | | Hybrid | Best of both | Pay minimums on all, attack highest rate >15% first, then snowball rest | ### Debt Priority Rules 1. **Emergency:** Anything in collections or at risk of legal action 2. **Toxic:** Interest >15% (credit cards, payday loans) — kill these ASAP 3. **Moderate:** Interest 5–15% (personal loans, auto) — accelerate but don't obsess 4. **Productive:** Interest <5% and tax-deductible (mortgage, student) — minimum payments, invest the rest ### Payoff Calculator ``` Months to payoff = -log(1 - (balance × rate/12) / payment) / log(1 + rate/12) Total interest = (payment × months) - balance ``` --- ## Phase 4: Emergency Fund & Insurance ### Emergency Fund Sizing | Situation | Target Months | Reasoning | |---|---|---| | Dual income, stable jobs | 3 months | Lower risk | | Single income, stable | 6 months | Standard | | Variable income / freelance | 9–12 months | Income uncertainty | | Single earner + dependents | 12 months | Maximum vulnerability | | Pre-retirement (55+) | 24 months | Career restart harder | **Where to keep it:** High-yield savings account (HYSA) or money market. NOT invested. Liquidity is the point. ### Insurance Checklist | Type | Need Level | Rule of Thumb | |---|---|---| | Health | Essential | Don't skip. Max out-of-pocket = emergency fund floor | | Auto | Required | Liability + comprehensive if car >$10K | | Renters/Home | Essential | Replacement cost, not actual cash value | | Life (Term) | If dependents | 10–15× annual income, term only (no whole life) | | Disability | Critical | 60–70% income replacement, own-occupation definition | | Umbrella | If net worth >$500K | $1M+ coverage, cheap per dollar of protection | | Long-term care | If 50+ | Start planning early, premiums rise with age | --- ## Phase 5: Investment Strategy ### Asset Allocation by Risk Profile | Profile | Stocks | Bonds | Alternatives | Cash | Best For | |---|---|---|---|---|---| | Aggressive | 90% | 5% | 5% | 0% | 20+ year horizon, high income | | Growth | 80% | 15% | 5% | 0% | 10–20 year horizon | | Balanced | 60% | 30% | 5% | 5% | 5–10 year horizon | | Conservative | 40% | 50% | 5% | 5% | 3–5 year horizon | | Preservation | 20% | 60% | 10% | 10% | <3 years or retired | ### Age-Based Rule of Thumb ``` Stock allocation = 120 - your age (aggressive) Stock allocation = 110 - your age (moderate) Stock allocation = 100 - your age (conservative) ``` ### Core Portfolio Construction **3-Fund Portfolio (Simple, Effective):** 1. US Total Market Index (VTI/VTSAX) — 60% 2. International Total Market (VXUS/VTIAX) — 30% 3. US Total Bond Market (BND/VBTLX) — 10% **5-Fund Portfolio (More Control):** 1. US Large Cap (VOO/S&P 500) — 40% 2. US Small Cap Value (VBR/AVUV) — 15% 3. International Developed (VEA) — 20% 4. Emerging Markets (VWO) — 10% 5. Bonds (BND or TIPS) — 15% ### Factor Tilts (Advanced) | Factor | What | Why | Vehicle | |---|---|---|---| | Small Cap Value | Smaller, cheaper companies | Historical outperformance | AVUV, VBR | | Quality | Profitable, low debt | Lower drawdowns | QUAL, DGRW | | Momentum | Recent winners | Trend continuation | MTUM, QMOM | | Low Volatility | Less volatile stocks | Better risk-adjusted returns | USMV, SPLV | **Rule:** Factor investing only after core is solid. Don't tilt >30% of equity to any factor. --- ## Phase 6: Tax-Advantaged Accounts ### Account Priority Order (US) 1. **401(k) to employer match** — 100% return, always max this first 2. **HSA** (if eligible) — triple tax advantage (deduction + growth + withdrawal) 3. **Roth IRA** — if income eligible; tax-free growth forever 4. **401(k) remainder** — max annual contribution ($23,500 in 2025) 5. **Mega backdoor Roth** — if plan allows (up to $69,000 total) 6. **Taxable brokerage** — after maxing all sheltered accounts 7. **529 Plan** — if kids' education is a goal 8. **I-Bonds** — $10K/year limit, inflation protection ### Roth vs. Traditional Decision | Factor | Roth (After-Tax) | Traditional (Pre-Tax) | |---|---|---| | Tax rate now vs. later | Pay now if rate lower now | Deduct now if rate higher now | | Income high now | Traditional usually wins | ← This | | Income low now (early career) | Roth usually wins | | | Retirement income uncertain | Roth = flexibility | Traditional = forced distributions | | Estate planning | Roth = better for heirs | Traditional = taxable inheritance | **Rule of thumb:** If marginal rate <22%, strongly favor Roth. If >32%, favor Traditional. Between = split. ### Tax Loss Harvesting - Sell losing positions to offset gains (up to $3,000/year vs. ordinary income) - Immediately buy a similar (not "substantially identical") fund to maintain allocation - Track 30-day wash sale window — can't rebuy the same security - Automate end-of-year tax review: harvest before December 31 - Carry forward unused losses indefinitely --- ## Phase 7: Real Estate ### Buy vs. Rent Calculator ```yaml buy_vs_rent: # Buying costs home_price: 0 down_payment_pct: 20 mortgage_rate: 7.0 property_tax_rate: 1.2 insurance_annual: 1500 maintenance_pct: 1.0 # of home value per year hoa_monthly: 0 closing_costs_pct: 3.0 # Renting costs monthly_rent: 0 renters_insurance: 150 # annual rent_increase_annual: 3.0 # percent # Assumptions home_appreciation: 3.0 # annual percent investment_return: 8.0 # what you'd earn investing the down payment holding_period_years: 7 marginal_tax_rate: 24 ``` **Price-to-rent ratio:** Home price ÷ annual rent - <15: Buying favored - 15–20: Close call, run the numbers - >20: Renting likely cheaper ### Investment Property Analysis ``` Cash-on-Cash Return = Annual Pre-Tax Cash Flow ÷ Total Cash Invested Cap Rate = Net Operating Income ÷ Property Value The 1% Rule = Monthly Rent ≥ 1% of Purchase Price (screening filter) 50% Rule = Operating expenses ≈ 50% of gross rent (quick estimate) ``` --- ## Phase 8: Alternative Investments (5–15% of Portfolio) | Asset | Min Allocation | Max Allocation | Role | |---|---|---|---| | Bitcoin | 1% | 10% | Digital gold, asymmetric upside | | Gold/Commodities | 0% | 5% | Inflation hedge | | REITs | 0% | 10% | Real estate exposure without ownership | | Private equity/VC | 0% | 5% | High risk, high reward (accredited only) | | Collectibles/Art | 0% | 2% | Passion assets, not investment | ### Bitcoin Position Sizing | Risk Tolerance | BTC Allocation | Rationale | |---|---|---| | Conservative | 1–2% | Optionality bet | | Moderate | 3–5% | Meaningful but survivable | | Aggressive | 5–10% | Conviction position | | Bitcoin-native | 10–25% | High conviction, understands cycles | **Rules:** - Only invest what you can afford to lose entirely - Dollar-cost average, don't lump sum - Self-custody above 0.1 BTC (hardware wallet) - Never sell in panic — have an exit plan before buying - Understand the 4-year halving cycle --- ## Phase 9: Retirement Planning ### FIRE Number Calculation ``` Annual expenses × 25 = FIRE number (4% withdrawal rate) Annual expenses × 33 = Conservative FIRE (3% withdrawal rate) ``` | FIRE Variant | Description | Savings Rate | Timeline | |---|---|---|---| | Lean FIRE | Bare minimum expenses | 50–70% | 7–12 years | | Regular FIRE | Comfortable lifestyle | 40–50% | 12–17 years | | Fat FIRE | Luxury lifestyle | 30–40% | 17–25 years | | Coast FIRE | Stop saving, let compounding work | Varies | Investment-dependent | | Barista FIRE | Part-time work covers expenses | 40–50% | 10–15 years | ### Withdrawal Strategy 1. **4% Rule (Trinity Study):** Withdraw 4% year 1, adjust for inflation thereafter 2. **Variable Percentage:** Adjust withdrawal based on portfolio performance 3. **Bucket Strategy:** - Bucket 1 (1–2 years): Cash/HYSA — immediate needs - Bucket 2 (3–7 years): Bonds/conservative — medium term - Bucket 3 (8+ years): Stocks — long-term growth ### Retirement Account Withdrawal Order 1. Taxable accounts first (lowest tax impact) 2. Tax-deferred (Traditional IRA/401k) — manage brackets 3. Roth last (tax-free growth as long as possible) 4. HSA absolute last (triple advantage, let it compound) --- ## Phase 10: Wealth Protection & Estate Planning ### Estate Planning Checklist - [ ] **Will** — who gets what, guardian for minor children - [ ] **Living trust** — avoid probate, privacy - [ ] **Power of attorney** — financial decisions if incapacitated - [ ] **Healthcare directive** — medical decisions if incapacitated - [ ] **Beneficiary designations** — 401k, IRA, life insurance (these override your will!) - [ ] **Digital estate plan** — passwords, crypto keys, online accounts - [ ] **Letter of intent** — non-binding wishes, funeral preferences - [ ] **Annual review** — update after marriage, divorce, birth, death ### Asset Protection Strategies | Strategy | Protection Level | Cost | Best For | |---|---|---|---| | Umbrella insurance | Moderate | $200–400/yr | Everyone with assets | | LLC for rentals | Strong | $500–1000/yr | Real estate investors | | Irrevocable trust | Very strong | $2,000–5,000 setup | High net worth | | Domestic asset protection trust | Strong | $3,000–10,000 | Business owners | | Retirement accounts | Very strong | Free | Already creditor-protected | --- ## Phase 11: Monitoring & Rebalancing ### Weekly Review (5 minutes) - Check account balances for anomalies - Review any pending transactions - Note any income or expense changes ### Monthly Review (30 minutes) ```yaml monthly_review: date: "YYYY-MM-DD" net_worth_change: 0 savings_rate_actual: 0 # target vs actual budget_variance: over_categories: [] under_categories: [] debt_paydown: 0 investment_contributions: 0 notable_events: "" next_month_adjustments: "" ``` ### Quarterly Rebalancing 1. Calculate current allocation vs. target 2. If any asset class drifts >5% from target → rebalance 3. Prefer rebalancing with new contributions (no tax events) 4. If selling required, harvest losses first 5. Document rationale for any allocation changes ### Annual Financial Review - [ ] Update net worth snapshot - [ ] Recalculate financial health score - [ ] Review and adjust investment allocation - [ ] Max out tax-advantaged accounts - [ ] Review insurance coverage needs - [ ] Check beneficiary designations - [ ] Tax loss harvest before December 31 - [ ] Review estate plan documents - [ ] Set next year's savings/investment goals - [ ] Check credit reports (annualcreditreport.com) --- ## Compound Growth Reference | Monthly Investment | 7% Annual | 10% Annual | 12% Annual | |---|---|---|---| | $500/mo × 10yr | $86,541 | $102,422 | $115,019 | | $500/mo × 20yr | $260,464 | $379,684 | $494,627 | | $500/mo × 30yr | $610,729 | $1,130,244 | $1,747,481 | | $1,000/mo × 10yr | $173,085 | $204,845 | $230,039 | | $1,000/mo × 20yr | $520,927 | $759,369 | $989,255 | | $1,000/mo × 30yr | $1,221,459 | $2,260,488 | $3,494,964 | | $2,000/mo × 20yr | $1,041,854 | $1,518,737 | $1,978,509 | | $2,000/mo × 30yr | $2,442,916 | $4,520,976 | $6,989,927 | **Rule of 72:** Years to double = 72 ÷ annual return percentage --- ## Common Mistakes to Avoid 1. **No emergency fund** — investing while one bad month means credit card debt 2. **Lifestyle inflation** — earning more ≠ spending more 3. **Market timing** — time IN the market beats timing the market 4. **Ignoring fees** — 1% annual fee compounds to 25%+ of wealth over 30 years 5. **Single stock concentration** — your company stock isn't diversification 6. **Emotional decisions** — selling in crashes, buying in euphoria 7. **Ignoring tax drag** — holding growth in taxable, bonds in sheltered 8. **No rebalancing** — drift destroys your risk profile 9. **Skipping insurance** — one event can wipe decades of saving 10. **Analysis paralysis** — a good plan now beats a perfect plan never --- ## Natural Language Commands - "Assess my financial health" → Run Phase 1 assessment with scoring - "Build my budget" → Phase 2 cash flow template - "Create a debt payoff plan" → Phase 3 inventory + strategy - "How much emergency fund do I need?" → Phase 4 sizing calculator - "Build my investment portfolio" → Phase 5 allocation based on profile - "Optimize my tax strategy" → Phase 6 account priority + Roth vs Traditional - "Should I buy or rent?" → Phase 7 calculator - "How do I invest in Bitcoin?" → Phase 8 position sizing + rules - "When can I retire?" → Phase 9 FIRE calculation - "Review my finances" → Phase 11 monthly/quarterly review - "What's my net worth?" → Net worth snapshot with trend - "Help me build wealth" → Full assessment → personalized action plan --- ## Disclaimer This skill provides financial education and frameworks — not personalized financial advice. Consult a licensed fiduciary financial advisor before making major financial decisions. Past returns don't guarantee future performance. --- ⚡ **Built by AfrexAI** — Transform your business with AI 🔗 **More free skills by AfrexAI:** - [Lead Hunter](https://clawhub.com/skills/afrexai-lead-hunter) — AI-powered lead generation - [Budget Tracker](https://clawhub.com/skills/afrexai-budget-tracker) — Business expense management - [Negotiation Mastery](https://clawhub.com/skills/afrexai-negotiation-mastery) — Win every deal - [Sales Playbook](https://clawhub.com/skills/afrexai-sales-playbook) — Complete B2B sales system - [Pricing Strategy](https://clawhub.com/skills/afrexai-pricing-strategy) — Maximize revenue per customer 💰 **Level up:** [AfrexAI Fintech Context Pack ($47)](https://afrexai-cto.github.io/context-packs/) — Complete AI agent context for financial services automation

path: README.md
content: # Wealth Builder — Personal Finance & Investment Engine

Your AI-powered personal wealth advisor. Build, protect, and grow wealth through structured financial planning, disciplined investing, and tax optimization.

## What This Does

Turns your AI agent into a comprehensive financial planning partner that covers:

- **Financial Health Assessment** — Net worth tracking with 0–100 health scoring
- **Cash Flow Mastery** — Budget frameworks that actually build wealth
- **Debt Destruction** — Avalanche, snowball, and hybrid payoff strategies
- **Investment Strategy** — Portfolio construction from 3-fund to factor-tilted
- **Tax Optimization** — Account priority, Roth vs. Traditional, tax loss harvesting
- **Real Estate Analysis** — Buy vs. rent calculator, investment property metrics
- **Alternative Assets** — Bitcoin position sizing, REITs, commodities allocation
- **Retirement Planning** — FIRE variants, withdrawal strategies, bucket approach
- **Estate Planning** — Will, trust, beneficiary, and asset protection checklists
- **Ongoing Monitoring** — Weekly/monthly/quarterly review templates

## Install

```
clawhub install afrexai-wealth-builder
```

## Quick Start

Ask your agent:
- "Assess my financial health"
- "Build my investment portfolio"
- "When can I retire?"
- "Should I buy or rent?"
- "Create a debt payoff plan"

## Who It's For

Anyone who wants to stop winging it with money. Whether you're paying off debt, starting to invest, or optimizing a seven-figure portfolio — this skill adapts to your stage.

## ⚡ Level Up

**[AfrexAI Fintech Context Pack ($47)](https://afrexai-cto.github.io/context-packs/)** — Complete AI agent context for financial services, wealth management, and fintech automation.

## 🔗 More Free Skills by AfrexAI

- [Budget Tracker](https://clawhub.com/skills/afrexai-budget-tracker) — Business expense management
- [FP&A Engine](https://clawhub.com/skills/afrexai-fpa-engine) — Financial planning & analysis
- [Pricing Strategy](https://clawhub.com/skills/afrexai-pricing-strategy) — Revenue optimization
- [Risk Management](https://clawhub.com/skills/afrexai-risk-management) — Enterprise risk frameworks
- [Negotiation Mastery](https://clawhub.com/skills/afrexai-negotiation-mastery) — Win better deals

📦 **Browse all AfrexAI skills:** [afrexai-cto.github.io/context-packs](https://afrexai-cto.github.io/context-packs/)


Security scan verdicts — ClawScan: suspicious | static analysis:  | VirusTotal: clean | SkillSpector: suspicious (HIGH)