But can you link all of your bank accounts - e.g. those outside your country of residency? Thanks for the more in-depth resource, your article. Oops, can't find it below!
It depends on how your bank is set up. Many banks support a read-only API, so in that case once the connection is made all that can be done is reading information, but no transfers. Other banks (typically smaller banks) don't support that so the connector is technically storing your login info. In this case it's good to make sure you have two-factor authentication turned on so in addition to your login details you have to provide a one-time password or code each time you update the data. That way, even if the connector was compromised, a hacker can't access your data. Lastly, if your bank doesn't support two factor authentication or an API, that's the least secure type, and in that case you are relying on the security of the connector alone. They do a good job, but I personally wouldn't recommend connecting that bank account in that case, or if you do, make a habit of changing your password once a year or so. The two main connector companies that all these apps use by the way are Plaid and MX, so you can look into them further.
What do you do with the net worth knowledge? Do you mentally apply 4% withdrawal guideline to it for a quick retirement readiness evaluation? I am not clear why it is important.
It's a way to identify progress towards financial independence. If you do the 4% rule (or 3% rule if you are targeting an early retirement) and apply it to your *liquid* net worth, you can see approximately how much income your assets alone could generate. You can use it in general to keep track of whether you are living within your means as well because the net worth increase over each period is roughly income - expenses, so you can see if you are making more than you are spending over time.
It measures progress. I do think the 4% rule is a good rule of thumb for planning, although not a great approach to actually spending money in retirement.
