Most financial advice online boils down to "just do this" — but what if your situation is the exception? Jesse Kramer, founder of The Best Interest blog and a financial planner, introduces the RRTTLLU framework (Risk, Reward, Taxes, Timeline, Liquidity, Legal, Unique) to help investors dig deeper than surface-level answers. After noticing confident one-size-fits-all recommendations in online forums, he reached out to Brad to discuss why personalized analysis matters more than generic prescriptions.
Key Takeaways:
-
Risk and Return: Risk and return are critical when evaluating investments. Investors should ask what risks are associated with an investment and understand their own return requirements.
-
Investment Timeline: Knowing your investment timeline is essential for successful investing.
-
Liquidity Considerations: Liquidity is vital in assessing how easily an investor can access their funds. Investments like real estate might have long waiting periods for access.
-
Tax Awareness: Being aware of your tax bracket and the implications of withdrawals can affect your investment strategy.
-
Legal and Unique Scenarios: Investors must account for legal considerations and unique personal situations when making investment decisions.
-
Dynamic Financial Plan: A financial plan should be viewed as a living document that evolves with one's financial situation and goals.
Chapters:
How Close Are You to Financial Independence?
Free calculators, a personalized FI roadmap, and a community of 25K+ on the same journey.
- Introduction to RRTTLLU
- Exploring Risk and Return
- Investment Timeline Importance
- Liquidity in Investing
- Legal and Unique Scenarios
Notable Quotes:
"Investing isn't one-size-fits-all."
Ready to take the next step?
Put what you heard into action with these tools and community.
"Risk and return: the core of smart investing."
"Your investment timeline matters."
"Distinguish between real risk and routine market behavior."
"Think of your financial plan as a dynamic guide."
Action Items:
- Assess your current investment strategy against the RRTTLLU framework.
- Document your investment timeline to align with your financial goals.
- Create or update your investment policy statement.
Related Resources:
- The Best Interest blog - Jesse Kramer's blog with insights into financial planning.
- Die With Zero by Bill Perkins - Suggested reading for understanding financial priorities.
Key Terms:
RRTTLLU: An acronym for an investing framework focused on Risk, Reward, Taxes, Timeline, Liquidity, Legal, and Unique scenarios.
Liquidity: The ease with which an investment can be converted into cash.
Top Travel Card
Ready to unlock a world of free travel? Start with the Chase Sapphire Preferred® Card
$95 annual fee | Earn 75,000 bonus points
Best Card for Side Hustlers and Business Owners
Side hustlers! With the Ink Business Preferred® Credit Card you can earn free travel from your business expenses.
$95 annual fee | Earn 100,000 bonus points
Most Flexible Travel Card
The Capital One Venture Rewards Credit Card can be used to offset almost any travel expense.
$95 annual fee | Earn more than $1,000 in Travel Bonuses with a limited-time $300 Capital One Travel stays credit, plus earn 75,000 bonus miles once you spend $4,000 on purchases within the first 3 months of account opening—that's more than $1,000 in travel value
ChooseFI has partnered with CardRatings for our coverage of credit card products. ChooseFI and CardRatings may receive a commission from card issuers.
Opportunity Cost: The potential benefits lost when one choice is made over another, particularly in investing.