Owner's draw
Money a sole proprietor or LLC owner takes out of the business for themselves.
Where it is explained in full
Break even and runway: two numbers every owner should be able to say aloud. How many sales before the business stops losing money, and how many months of cash are left if nothing changes. Both are simple. Both are routinely unknown.
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Words beside it
- Drawdown
The fall from a peak to a trough. A 50 percent drawdown needs a 100 percent gain to recover.
- Hardship withdrawal
Taking retirement money early for a qualifying need. Taxed, usually penalized, cannot be repaid.
- Safe withdrawal rate
The share of a portfolio you can spend each year with a good chance it lasts; 4 percent is the famous starting point.
- tax free withdrawal
Taking money out of an account without owing any taxes on it, which is one of the big rewards for following the rules of certain special accounts.
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