File size: 26,982 Bytes
6d2558a
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
241
242
243
244
245
246
247
248
249
250
251
252
253
254
255
256
257
258
259
260
261
262
263
264
265
266
267
268
269
270
271
272
273
274
275
276
277
278
279
280
281
282
283
284
285
286
287
288
289
290
291
292
293
294
295
296
297
298
299
300
301
302
303
304
305
306
307
308
309
310
311
312
313
314
315
316
317
318
319
320
321
322
323
324
325
326
327
328
329
330
331
332
333
334
335
336
337
338
339
340
341
342
343
344
345
346
347
348
349
350
351
352
353
354
355
356
357
358
359
360
361
362
363
364
365
366
367
368
369
370
371
372
373
374
375
376
377
378
379
380
381
382
383
384
385
386
387
388
389
390
391
392
393
394
395
396
397
398
399
400
401
402
403
404
405
406
407
408
409
410
411
412
413
414
415
416
417
418
419
420
421
422
423
424
425
426
427
428
429
430
431
432
433
434
435
436
437
438
439
440
441
442
443
444
445
446
447
448
449
450
451
452
453
454
455
456
457
458
459
460
461
462
463
464
465
466
467
468
469
470
471
472
473
474
475
476
477
478
479
480
481
482
483
484
485
486
487
488
489
490
491
492
493
494
495
496
497
498
499
500
501
502
503
504
505
506
507
508
509
510
511
512
513
514
515
516
517
518
519
520
521
522
523
524
525
526
527
528
529
530
531
532
533
534
535
536
537
538
539
540
541
542
543
544
545
546
547
548
549
550
551
552
553
554
555
556
557
558
559
560
561
562
563
564
565
566
567
568
569
570
"""
Create Finance Knowledge Base

Builds a FAISS vector database with comprehensive financial knowledge including:
- Financial concepts (stocks, bonds, ETFs, mutual funds, etc.)
- Investment strategies and portfolio management
- Tax concepts and regulations
- Market analysis and indicators
- Financial planning and goal setting
"""

import os
from dotenv import load_dotenv
from langchain_openai import OpenAIEmbeddings
from langchain_community.vectorstores import FAISS
from langchain_core.documents import Document

load_dotenv()

# Initialize embeddings
embeddings = OpenAIEmbeddings(api_key=os.getenv("OPENAI_API_KEY"))

# ==================== KNOWLEDGE BASE CONTENT ====================

# Financial Concepts
financial_concepts = [
    """
    **Stock** is a type of security that represents ownership in a corporation.
    - Stock owners (shareholders) are entitled to a portion of the company's assets and earnings
    - Two main types: Common stock (voting rights) and Preferred stock (priority dividends)
    - Traded on stock exchanges like NYSE, NASDAQ
    - Price determined by supply and demand, company performance, market conditions
    - Capital gains occur when stock price increases; dividends provide regular income
    - Risk: Stock prices can be volatile and may lose value
    """,
    
    """
    **Bond** is a fixed-income investment representing a loan made by an investor to a borrower.
    - Issuer (borrower) pays periodic interest (coupon) and returns principal at maturity
    - Types: Government bonds (Treasury), Corporate bonds, Municipal bonds
    - Generally lower risk than stocks but lower potential returns
    - Bond prices inversely related to interest rates
    - Credit rating affects bond yield and risk (AAA is highest quality)
    - Used for income generation and portfolio diversification
    """,
    
    """
    **ETF (Exchange-Traded Fund)** is a basket of securities that trades on an exchange like a stock.
    - Offers diversification by holding multiple stocks, bonds, or other assets
    - Lower fees than mutual funds (typically 0.03% - 0.25%)
    - Can be bought/sold throughout trading day at market price
    - Popular types: S&P 500 ETFs (SPY, VOO), Bond ETFs, Sector ETFs
    - Tax-efficient due to creation/redemption mechanism
    - Examples: VOO (Vanguard S&P 500), QQQ (Nasdaq 100), AGG (Bond Aggregate)
    """,
    
    """
    **Mutual Fund** is a pooled investment vehicle managed by professional fund managers.
    - Investors buy shares of the fund, which invests in diversified portfolio
    - Priced once per day after market close (NAV - Net Asset Value)
    - Higher fees than ETFs (expense ratios typically 0.5% - 2%)
    - Active management (managers pick stocks) or passive (index funds)
    - Minimum investment requirements (often $1,000 - $3,000)
    - Examples: Vanguard 500 Index Fund, Fidelity Contrafund
    """,
    
    """
    **Diversification** is the practice of spreading investments across different assets to reduce risk.
    - "Don't put all eggs in one basket" - reduces exposure to any single investment
    - Diversify across asset classes (stocks, bonds, real estate, commodities)
    - Diversify within asset classes (different sectors, company sizes, countries)
    - Modern Portfolio Theory: Optimal diversification improves risk-adjusted returns
    - Reduces unsystematic risk (company-specific) but not systematic risk (market-wide)
    - Recommended: 60/40 stock/bond allocation for moderate risk, adjust based on age
    """,
    
    """
    **Asset Allocation** is the strategy of dividing investment portfolio among different asset categories.
    - Primary asset classes: Stocks (equities), Bonds (fixed income), Cash, Real estate
    - Determines 90% of portfolio performance variation over time
    - Age-based rule: Stock allocation = 110 - your age (e.g., age 30 β†’ 80% stocks)
    - Aggressive: 80-100% stocks, Moderate: 60% stocks/40% bonds, Conservative: 40% stocks/60% bonds
    - Rebalance annually to maintain target allocation
    - Adjust based on risk tolerance, time horizon, financial goals
    """,
    
    """
    **Dollar-Cost Averaging (DCA)** is investing fixed amounts at regular intervals regardless of price.
    - Reduces impact of market volatility and timing risk
    - Example: Invest $500 monthly instead of $6,000 lump sum
    - Buys more shares when prices low, fewer when prices high
    - Psychologically easier than trying to time the market
    - Ideal for 401(k) contributions and regular investing
    - May underperform lump-sum investing in rising markets
    """,
    
    """
    **Index Fund** is a mutual fund or ETF designed to track a specific market index.
    - Passive management: Simply matches index holdings, no active stock picking
    - Very low fees (often 0.03% - 0.20%)
    - Examples: S&P 500 index funds, Total Stock Market index funds
    - Consistently outperforms most actively managed funds over long term
    - Warren Buffett recommends index funds for most investors
    - Popular: Vanguard Total Stock Market (VTI), S&P 500 (VOO, SPY)
    """,
    
    """
    **401(k)** is an employer-sponsored retirement savings plan with tax advantages.
    - Contributions reduce taxable income (traditional) or grow tax-free (Roth)
    - 2024 contribution limit: $23,000 ($30,500 if age 50+)
    - Many employers offer matching contributions (free money!)
    - Withdrawal penalty if taken before age 59Β½ (10% + taxes)
    - Required Minimum Distributions (RMDs) start at age 73
    - Always contribute enough to get full employer match
    """,
    
    """
    **IRA (Individual Retirement Account)** is a tax-advantaged retirement account.
    - Traditional IRA: Tax-deductible contributions, taxed upon withdrawal
    - Roth IRA: After-tax contributions, tax-free qualified withdrawals
    - 2024 contribution limit: $7,000 ($8,000 if age 50+)
    - Roth IRA income limits: $161,000 single, $240,000 married (2024)
    - Withdrawals before 59Β½ may incur penalties
    - Roth IRA has no RMDs during owner's lifetime
    """,
    
    """
    **Compound Interest** is earning interest on both principal and accumulated interest.
    - "The most powerful force in the universe" - Einstein (allegedly)
    - Formula: A = P(1 + r/n)^(nt) where P=principal, r=rate, n=compounds/year, t=years
    - Example: $10,000 at 8% for 30 years = $100,627
    - Time is crucial: Starting 10 years earlier can double retirement savings
    - Applies to investments, savings, and debt (credit cards compound against you)
    - Key to long-term wealth building
    """,
    
    """
    **Expense Ratio** is the annual fee charged by mutual funds and ETFs.
    - Expressed as percentage of assets (e.g., 0.10% = $10 per $10,000 invested)
    - Directly reduces investment returns every year
    - 1% difference in fees can cost hundreds of thousands over lifetime
    - Index funds: 0.03% - 0.20%, Active funds: 0.50% - 2.00%
    - Lower is better - every 0.10% matters over decades
    - Total market ETFs often have lowest ratios (0.03% - 0.04%)
    """,
    
    """
    **Capital Gains** is profit from selling an asset for more than purchase price.
    - Short-term: Held ≀1 year, taxed as ordinary income (10%-37%)
    - Long-term: Held >1 year, preferential tax rates (0%, 15%, or 20%)
    - 2024 long-term rates: 0% up to $44k single/$89k married, 15% up to $492k/$553k, 20% above
    - Capital losses can offset gains (tax-loss harvesting strategy)
    - $3,000 annual limit for deducting losses against ordinary income
    - Hold investments >1 year when possible for tax efficiency
    """,
    
    """
    **Dividend** is a portion of company profits paid to shareholders.
    - Paid quarterly by many large, established companies
    - Dividend Yield = Annual dividend / Stock price (e.g., 3% yield)
    - Qualified dividends taxed at capital gains rates (0%, 15%, 20%)
    - Dividend aristocrats: Companies increasing dividends 25+ consecutive years
    - Dividend stocks provide income but may have lower growth
    - Examples: Coca-Cola, Johnson & Johnson, Procter & Gamble
    """,
    
    """
    **P/E Ratio (Price-to-Earnings)** measures stock valuation relative to earnings.
    - Formula: Stock Price / Earnings Per Share
    - S&P 500 historical average: ~16-17
    - High P/E (>25): Stock may be overvalued or high-growth expectations
    - Low P/E (<15): Stock may be undervalued or facing challenges
    - Compare P/E to industry peers and company's historical average
    - Limitations: Doesn't account for growth, debt, or industry differences
    """,
    
    """
    **Market Capitalization** is total value of company's outstanding shares.
    - Formula: Current Stock Price Γ— Total Shares Outstanding
    - Large-cap: >$10B (Microsoft, Apple), more stable, lower growth
    - Mid-cap: $2B-$10B, balance of growth and stability
    - Small-cap: $300M-$2B, higher growth potential, higher volatility
    - Micro-cap: <$300M, very high risk
    - Diversify across market caps for balanced portfolio
    - S&P 500 contains large-cap stocks
    """,
    
    """
    **Bull Market** is a period of rising stock prices and investor optimism.
    - Typically defined as 20%+ increase from recent low
    - Characterized by strong economy, low unemployment, investor confidence
    - Average bull market lasts 4-5 years (historically)
    - Strategy: Stay invested, maintain discipline, avoid overconfidence
    - Don't try to predict the top - remain diversified
    - Historic examples: 2009-2020 (longest bull market)
    """,
    
    """
    **Bear Market** is a period of falling stock prices and pessimism.
    - Typically defined as 20%+ decline from recent high
    - Caused by recession, high inflation, economic crisis, pandemic
    - Average bear market lasts 9-18 months
    - Strategy: Don't panic sell, continue investing (stocks on sale)
    - Historically, markets always recover and reach new highs
    - Historic examples: 2008 financial crisis, 2020 COVID crash
    """,
    
    """
    **Recession** is a significant decline in economic activity lasting several months.
    - Technical definition: Two consecutive quarters of negative GDP growth
    - Indicators: Rising unemployment, declining consumer spending, business closures
    - Average recession lasts 10-18 months
    - Stock market often declines before recession begins (leading indicator)
    - Investment strategy: Maintain course, consider defensive stocks, bonds
    - Historically occurs every 5-10 years
    """,
    
    """
    **Inflation** is the rate at which general prices for goods and services rise.
    - Measured by CPI (Consumer Price Index) and PCE (Personal Consumption Expenditures)
    - Federal Reserve targets 2% annual inflation
    - High inflation (>4%) erodes purchasing power and savings
    - Deflation (negative inflation) can harm economy
    - Stocks and real estate historically outpace inflation long-term
    - TIPS (Treasury Inflation-Protected Securities) adjust for inflation
    """,
    
    """
    **Federal Reserve (The Fed)** is the central banking system of the United States.
    - Sets monetary policy to promote maximum employment and price stability
    - Primary tool: Federal Funds Rate (interest rate for bank lending)
    - Raising rates: Slows economy, fights inflation, may lower stock prices
    - Lowering rates: Stimulates economy, may boost stocks, increases inflation risk
    - FOMC (Federal Open Market Committee) meets 8 times per year
    - Fed decisions significantly impact all financial markets
    """,
    
    """
    **Interest Rate** is the cost of borrowing money or return on savings/bonds.
    - Set by Federal Reserve (Fed Funds Rate) influences all other rates
    - Higher rates: Savings accounts pay more, bonds attractive, stocks may fall
    - Lower rates: Cheaper borrowing, stocks more attractive, savings earn less
    - Mortgage rates, auto loans, credit cards all follow Fed rate direction
    - Bond prices inversely related to rates (rates ↑, bond prices ↓)
    - Affects your investment returns, loan costs, retirement planning
    """,
    
    """
    **Risk Tolerance** is your ability and willingness to endure investment losses.
    - Factors: Age, income, financial goals, personality, investment timeline
    - High risk tolerance: Can handle volatility, longer time horizon (20+ years)
    - Low risk tolerance: Prefer stability, shorter timeline, near retirement
    - Questionnaire helps determine: conservative, moderate, or aggressive
    - Risk capacity (financial ability) may differ from risk appetite (emotional comfort)
    - Match portfolio allocation to risk tolerance (aggressive = more stocks)
    """,
    
    """
    **Emergency Fund** is savings reserved for unexpected expenses or income loss.
    - Recommended: 3-6 months of living expenses
    - Keep in high-yield savings account (HYSA) - currently 4-5% APY
    - Must be liquid (easily accessible) - not invested in stocks
    - First financial priority before investing
    - Prevents needing to sell investments at wrong time or use high-interest debt
    - Examples: Job loss, medical emergency, car/home repairs
    """,
    
    """
    **Rebalancing** is adjusting portfolio back to target asset allocation.
    - Example: 60/40 stocks/bonds becomes 70/30 after stocks rise β†’ sell stocks, buy bonds
    - Enforces "buy low, sell high" discipline
    - Recommended frequency: Annually or when allocation drifts 5%+
    - Methods: Sell winners/buy losers, or direct new contributions to lagging assets
    - In tax-advantaged accounts (401k, IRA) to avoid capital gains taxes
    - Maintains desired risk level and prevents overexposure
    """,
    
    """
    **Tax-Loss Harvesting** is selling investments at a loss to offset capital gains.
    - Reduces tax burden by offsetting gains with losses
    - Can deduct up to $3,000 in net losses against ordinary income annually
    - Excess losses carry forward to future years indefinitely
    - Wash sale rule: Can't buy "substantially identical" security within 30 days
    - Best done in taxable brokerage accounts (not IRAs/401ks)
    - Automated by robo-advisors like Betterment, Wealthfront
    """,
    
    """
    **Roth Conversion** is transferring money from traditional IRA to Roth IRA.
    - Pay taxes now on converted amount at current tax rate
    - Future withdrawals completely tax-free (qualified distributions)
    - Strategic during low-income years or when tax rates low
    - No income limits for conversions (unlike Roth IRA contributions)
    - Consider tax bracket impact - may push into higher bracket
    - Five-year rule: Each conversion has 5-year clock for penalty-free withdrawal
    """,
    
    """
    **HSA (Health Savings Account)** is a triple-tax-advantaged medical savings account.
    - Requires high-deductible health plan (HDHP)
    - 2024 limits: $4,150 individual, $8,300 family (+$1,000 if 55+)
    - Triple tax benefit: Tax-deductible contributions, tax-free growth, tax-free medical withdrawals
    - Can invest HSA funds in stocks/bonds like IRA
    - No "use it or lose it" - funds roll over indefinitely
    - After 65, can withdraw for non-medical (taxed like traditional IRA)
    """,
    
    """
    **Backdoor Roth IRA** is a strategy for high-income earners to contribute to Roth IRA.
    - Step 1: Contribute to traditional IRA (non-deductible)
    - Step 2: Immediately convert to Roth IRA
    - Bypasses Roth IRA income limits ($161k single, $240k married in 2024)
    - Pro-rata rule: If you have pre-tax IRA money, conversion partially taxable
    - Requires careful execution and tax reporting
    - Legal strategy explicitly allowed by IRS
    """,
    
    """
    **Mega Backdoor Roth** is advanced strategy to contribute large amounts to Roth accounts.
    - Use after-tax 401(k) contributions beyond normal $23,000 limit
    - Total 401(k) limit: $69,000 in 2024 (including employer match)
    - Convert after-tax contributions to Roth 401(k) or Roth IRA
    - Not all 401(k) plans allow this - check plan rules
    - Can contribute $46,000+ additional to Roth annually if available
    - Complex but powerful for high earners with access
    """,
]

# Investment Strategies
investment_strategies = [
    """
    **Buy and Hold Strategy** is investing for long term without frequent trading.
    - Core principle: Time in market beats timing the market
    - Reduces transaction costs, taxes, and emotional decisions
    - Ignore short-term volatility and market noise
    - S&P 500 historical return: ~10% annually over long periods
    - Best for index fund investors and retirement accounts
    - Warren Buffett's favorite strategy
    """,
    
    """
    **Three-Fund Portfolio** is a simple diversification strategy using just 3 index funds.
    - Fund 1: Total US Stock Market (e.g., VTI, VTSAX) - 60%
    - Fund 2: Total International Stock (e.g., VXUS, VTIAX) - 30%
    - Fund 3: Total Bond Market (e.g., BND, VBTLX) - 10%
    - Adjust percentages based on age and risk tolerance
    - Extremely low cost, simple to manage, well-diversified
    - Popularized by Bogleheads investment philosophy
    """,
    
    """
    **Target-Date Fund** is an all-in-one fund that adjusts allocation as target date approaches.
    - Automatically becomes more conservative over time (glide path)
    - Example: 2060 Target Date fund (for ~2060 retirement)
    - Young: 90% stocks, 10% bonds β†’ Near retirement: 30% stocks, 70% bonds
    - Extremely simple - one fund for entire retirement
    - Slightly higher fees than DIY three-fund portfolio (0.12% vs 0.04%)
    - Popular in 401(k) plans - good "set and forget" option
    """,
    
    """
    **Value Investing** is buying undervalued stocks trading below intrinsic value.
    - Focus on low P/E ratios, high dividend yields, strong fundamentals
    - Philosophy: Market overreacts, creating opportunities
    - Famous practitioners: Warren Buffett, Benjamin Graham
    - Look for strong balance sheets, consistent earnings, competitive advantages
    - Requires patience - may underperform during growth stock rallies
    - Value stocks historically outperform long-term but more cyclical
    """,
    
    """
    **Growth Investing** is buying companies expected to grow faster than market average.
    - Characteristics: High P/E ratios, revenue growth, innovation
    - Often tech companies (historically): Amazon, Apple, Google, Tesla
    - Higher risk and volatility than value stocks
    - May not pay dividends (reinvest profits for growth)
    - Can outperform dramatically in bull markets
    - More sensitive to interest rate changes
    """,
    
    """
    **4% Rule** is retirement withdrawal strategy to make savings last 30 years.
    - Withdraw 4% of portfolio in first year of retirement
    - Adjust subsequent withdrawals for inflation
    - Example: $1M portfolio β†’ $40,000 first year withdrawal
    - Based on historical success rates (95% success over 30 years)
    - More conservative: 3-3.5% rule for longer retirements
    - Adjust based on market conditions and spending needs
    """,
]

# Tax Concepts
tax_concepts = [
    """
    **Standard Deduction** is the fixed amount reducing taxable income without itemizing.
    - 2024: $14,600 single, $29,200 married filing jointly
    - Most taxpayers use standard deduction (simpler)
    - Itemize only if deductions exceed standard deduction
    - Common itemized deductions: Mortgage interest, state taxes (SALT), charitable donations
    - Standard deduction indexed to inflation annually
    - Simplifies tax filing for most Americans
    """,
    
    """
    **Tax Brackets** are ranges of income taxed at increasing rates (progressive taxation).
    - 2024 Federal brackets: 10%, 12%, 22%, 24%, 32%, 35%, 37%
    - Only income within bracket taxed at that rate (marginal tax rate)
    - Example: Single filer earning $50k pays 10% on first $11k, 12% on $11k-$47k, 22% on rest
    - Moving into higher bracket doesn't increase tax on lower income
    - Effective tax rate (average) always lower than marginal rate
    - Long-term capital gains have separate preferential brackets
    """,
    
    """
    **Tax-Advantaged Accounts** are investment accounts with special tax benefits.
    - Traditional 401(k)/IRA: Tax deduction now, taxed later
    - Roth 401(k)/IRA: Taxed now, tax-free forever
    - HSA: Triple tax advantage (deductible, grows tax-free, withdrawals tax-free for medical)
    - 529: Tax-free growth and withdrawals for education
    - Priority: Max 401(k) match > IRA/Roth IRA > Max 401(k) > HSA > Taxable brokerage
    - Massive long-term tax savings through compound growth
    """,
    
    """
    **FICA Taxes** are payroll taxes funding Social Security and Medicare.
    - Social Security: 6.2% employee + 6.2% employer (12.4% total)
    - Medicare: 1.45% employee + 1.45% employer (2.9% total)
    - 2024 Social Security wage cap: $168,600 (Medicare uncapped)
    - Additional 0.9% Medicare tax on high earners ($200k+ single, $250k+ married)
    - Self-employed pay full 15.3% but get deduction for half
    - Separate from income tax - automatically withheld from paychecks
    """,
]

# Market Indicators
market_indicators = [
    """
    **S&P 500** is stock market index tracking 500 largest US companies.
    - Represents ~80% of total US stock market value
    - Market-cap weighted (larger companies have more influence)
    - Top holdings: Apple, Microsoft, Amazon, Google, NVIDIA
    - Considered best gauge of overall US stock market health
    - Historical return: ~10% annually including dividends
    - Popular investment vehicles: SPY, VOO, IVV index funds
    """,
    
    """
    **Dow Jones Industrial Average (DJIA)** tracks 30 large US blue-chip companies.
    - Price-weighted (higher stock price = more influence, unusual)
    - Oldest US market index (created 1896)
    - Less representative than S&P 500 (only 30 stocks)
    - Includes: Apple, Microsoft, Boeing, Disney, Goldman Sachs
    - Frequently cited in media but less useful for investors
    - Popular ETF: DIA
    """,
    
    """
    **NASDAQ Composite** is index of all stocks listed on NASDAQ exchange.
    - Heavy technology concentration (~50% tech stocks)
    - Includes: Apple, Microsoft, Amazon, Google, Tesla, Meta
    - More volatile than S&P 500 due to growth stock concentration
    - Strong indicator of technology sector performance
    - Popular tech-focused ETF: QQQ (Nasdaq-100)
    - Higher growth potential but higher risk
    """,
    
    """
    **VIX (Volatility Index)** measures expected stock market volatility.
    - Called "fear gauge" or "fear index"
    - Based on S&P 500 options prices (30-day forward looking)
    - Normal: 12-20, Elevated: 20-30, High: 30+, Extreme: 40+
    - Typically spikes during market crashes and uncertainly
    - 2020 COVID: VIX hit 80+, 2008 crisis: 80+
    - Inverse correlation with stocks (VIX up = stocks down usually)
    """,
    
    """
    **Treasury Yield Curve** plots yields of US Treasury bonds across maturities.
    - Normal curve: Long-term yields higher than short-term (upward sloping)
    - Inverted curve: Short-term yields exceed long-term (downward sloping)
    - Inverted curve predicts recession within 6-24 months (historically accurate)
    - 2s/10s spread most watched (2-year vs 10-year Treasury)
    - Reflects investor expectations for interest rates and economy
    - Fed controls short end, market controls long end
    """,
]

# Financial Planning
financial_planning = [
    """
    **FIRE (Financial Independence, Retire Early)** is movement to achieve financial independence through aggressive saving.
    - Save 50-70% of income, invest in low-cost index funds
    - Target: 25x annual expenses invested (4% rule)
    - Example: Need $40k/year β†’ Save $1M β†’ Retire early
    - Variations: Lean FIRE (<$40k/year), Fat FIRE ($100k+/year), Barista FIRE (part-time work)
    - Requires high income, low expenses, aggressive investing
    - Typical timeline: 10-20 years depending on savings rate
    """,
    
    """
    **Net Worth** is total assets minus total liabilities.
    - Assets: Cash, investments, home equity, retirement accounts
    - Liabilities: Mortgage, student loans, credit cards, car loans
    - Formula: Net Worth = Assets - Liabilities
    - Track quarterly or annually to measure financial progress
    - Average US net worth: $192k (median: $121k) 
    - Focus on increasing assets and decreasing liabilities over time
    """,
    
    """
    **Debt Avalanche** is debt repayment strategy targeting highest interest rate first.
    - Pay minimums on all debts, extra to highest interest rate debt
    - Mathematically optimal - saves most on interest
    - Example: Pay off 20% credit card before 6% car loan before 4% student loan
    - Slower psychological wins than debt snowball method
    - Best for financially disciplined individuals
    - Can save thousands in interest over time
    """,
    
    """
    **Debt Snowball** is debt repayment strategy targeting smallest balance first.
    - Pay minimums on all debts, extra to smallest balance
    - Quick psychological wins motivate continued progress
    - Example: Pay off $500 credit card before $5,000 car loan before $30,000 student loan
    - May cost more in interest than avalanche method
    - Popularized by Dave Ramsey
    - Better for those needing motivation and quick wins
    """,
    
    """
    **Credit Score** is numerical representation of creditworthiness (300-850).
    - Factors: Payment history (35%), amounts owed (30%), length of history (15%), new credit (10%), types (10%)
    - Excellent: 750+, Good: 700-749, Fair: 650-699, Poor: <650
    - Affects: Loan approval, interest rates, insurance premiums, apartment rentals
    - Improve by: Pay on time, keep utilization <30%, don't close old cards, limit new applications
    - Check free annually: AnnualCreditReport.com (official site)
    - Takes time to build - length of history matters
    """,
]

# Combine all content
all_documents = (
    financial_concepts + 
    investment_strategies + 
    tax_concepts + 
    market_indicators + 
    financial_planning
)

# Create Document objects
documents = [
    Document(page_content=content.strip(), metadata={"source": "finance_knowledge"})
    for content in all_documents
]

print(f"πŸ“š Creating knowledge base with {len(documents)} documents...")

# Create FAISS vector store
db = FAISS.from_documents(documents, embeddings)

# Save to disk
output_path = "./knowledge_base/faiss_index"
os.makedirs(output_path, exist_ok=True)
db.save_local(output_path)

print(f"βœ… Knowledge base created successfully!")
print(f"πŸ“ Saved to: {output_path}")
print(f"πŸ“Š Total documents: {len(documents)}")
print(f"πŸ’Ύ Vector database ready for use!")