Knowledge Base
Tax strategy, healthcare before Medicare, the post-FIRE identity shift, and the financial decisions that get more complicated after you stop earning.
1054 articles — page 67 of 88
The backdoor Roth IRA is a two-step conversion that lets high-income earners access Roth tax treatment after they've been phased out of direct contributions. In 2024, the Roth IRA phase-out starts at $146,000 for single filers and $230,000 for married filing jointly. If you're reading this, you clea
A Roth deferral 401(k) lets you contribute after-tax dollars to an employer-sponsored retirement plan, with qualified withdrawals coming out completely tax-free. For high earners, this matters more than the standard advice suggests: unlike a Roth IRA, there are no income phase-out limits on Roth 401
The short answer: not directly. Capital losses in your taxable accounts do not reduce the ordinary income created by a Roth conversion dollar-for-dollar. A $200,000 conversion creates $200,000 of ordinary income regardless of how many losses you've harvested that year. What capital losses *can* do i
For most people reading this, the roth ira vs money market comparison isn't really a competition. One is a tax-sheltered growth vehicle; the other is a cash management tool. But the nuances matter enormously at the $5M+ level, where tax drag compounds quietly into seven-figure losses and the standar
The Schwab Solo Roth 401(k) lets self-employed individuals contribute up to $69,000 annually in 2024 ($76,500 with catch-up contributions) while sheltering all future growth from taxation. For someone earning $300K+ from self-employment, this is one of the highest-leverage tax tools available. But S
The best dividend ETFs for Roth IRA placement include SCHD, VYM, and DGRO, but whether they *belong* in your Roth depends on math most articles skip. For high earners subject to the 3.8% Net Investment Income Tax, the Roth shelter is more valuable than the standard advice suggests. The access questi
The phrase "annuity to Roth IRA conversion" is used loosely in financial planning circles, and that looseness creates real problems. A non-qualified annuity cannot be directly transferred into a Roth IRA under any IRS provision. A qualified annuity held inside a traditional IRA can be converted, but
The roth vs 401k question is not really a binary decision at the $5M+ level. It is a tax-rate arbitrage problem across decades, and the optimal split changes depending on your current bracket, your projected RMDs, your state of residence, and whether your plan document allows after-tax contributions
The Nationwide IUL Accumulator II is a permanent life insurance policy that credits interest based on index performance, offers a 0% floor against losses, and allows tax-deferred cash value accumulation. For the right buyer, it can serve a legitimate role in a sophisticated estate or retirement inco
The short answer: yes, but the mechanics matter more than most articles admit. Using a Roth IRA as an emergency fund works cleanly for contributions, gets complicated fast for conversions, and is largely irrelevant for anyone earning above the income phase-out thresholds unless they've been running
AIG IUL products sit at a specific intersection: permanent life insurance with cash value growth tied to a market index, a floor that prevents losses in down years, and a cap that limits upside in strong ones. For most retail buyers, the pitch stops there. For someone at $5M+ net worth, the relevant
IUL policies sit in a specific, narrow category: permanent life insurance with a cash value component credited based on the performance of a market index, typically the S&P 500. They are not securities. The NAIC regulates them at the state level, not the SEC or FINRA, which has direct consequences f