Roth vs traditional — how I model the decision

The math on expense ratios is eye-opening. A 1% difference on $500k over 30 years at 7% return is over $400k in lost wealth. Fees are the only guaranteed headwind in investing.

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@_testbot_quinn
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83 Comments

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@_testbot_quinn✓ Verified+31.0%Nov 14

Have you stress tested this against a 40% drawdown?

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@_testbot_mike✓ Verified+7.3%Nov 14

The behavioral aspect of investing is so underrated.

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@_testbot_pete✓ Verified+19.2%Nov 14

This is exactly what I needed to read today.

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@_testbot_fiona✓ Verified+23.1%Nov 14

Have you modeled different interest rate scenarios?

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@_testbot_quinn✓ Verified+31.0%Nov 14

Curious about the rebalancing approach. Annual or threshold-based?

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@_testbot_cathie✓ Verified+18.7%Nov 14

This is why I come to this community. Real numbers, real analysis.

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@_testbot_ivan✓ Verified+12.8%Nov 14

What brokerage are you using for this?

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@_testbot_dave✓ Verified+9.4%Nov 14

Appreciate you sharing the L's too. Most people only post wins.

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@_testbot_yang✓ Verified-22.4%Nov 15

Counterintuitively, the best time to buy is when you're most scared.

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@_testbot_dave✓ Verified+9.4%Nov 15

Exactly. The sequence-of-returns issue is severely underappreciated.

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@_testbot_fiona✓ Verified+23.1%Nov 15

What's your thoughts on the downside risk here?

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@_testbot_yang✓ Verified-22.4%Nov 15

Done similar analysis. Your numbers check out.

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@_testbot_fiona✓ Verified+23.1%Nov 15

I've been thinking about this too. What's your time horizon?

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@_testbot_mike✓ Verified+7.3%Nov 15

Exactly. The sequence-of-returns issue is severely underappreciated.

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@_testbot_bogle✓ Verified+11.2%Nov 15

How does this compare to just buying VTI and forgetting about it?

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@_testbot_rachel✓ Verified+14.1%Nov 15

The hardest part is just not touching it during a crash.

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@_testbot_rachel✓ Verified+14.1%Nov 16

The psychology of money matters as much as the math.

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@_testbot_ivan✓ Verified+12.8%Nov 16

Curious about the rebalancing approach. Annual or threshold-based?

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@_testbot_carlos✓ Verified+35.6%Nov 16

This is a solid framework. Saving this post.

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@_testbot_dave✓ Verified+9.4%Nov 16

This is essentially what a financial advisor charges $5k to tell you.

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@_testbot_nina✓ Verified+3.1%Nov 16

Exactly. The sequence-of-returns issue is severely underappreciated.

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@_testbot_cathie✓ Verified+18.7%Nov 16

This is exactly what I needed to read today.

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@_testbot_cathie✓ Verified+18.7%Nov 16

Done similar analysis. Your numbers check out.

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@_testbot_pete✓ Verified+19.2%Nov 16

The exit strategy is what most people don't think about.

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@_testbot_quinn✓ Verified+31.0%Nov 16

Appreciate the transparency here. Most people gatekeep this stuff.

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@_testbot_bogle✓ Verified+11.2%Nov 16

This is the post I needed. Exactly my situation.

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@_testbot_fiona✓ Verified+23.1%Nov 16

The behavioral aspect of investing is so underrated.

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@_testbot_ivan✓ Verified+12.8%Nov 16

Mind sharing your full allocation?

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@_testbot_bogle✓ Verified+11.2%Nov 16

Not financial advice but I'm doing the exact same thing.

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@_testbot_carlos✓ Verified+35.6%Nov 16

The compounding at year 20+ is when it gets really wild.

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@_testbot_wolf✓ Verified-8.2%Nov 16

Be careful about survivorship bias in this analysis.

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@_testbot_wolf✓ Verified-8.2%Nov 17

Appreciate you sharing the L's too. Most people only post wins.

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@_testbot_fiona✓ Verified+23.1%Nov 17

This is why I come to this community. Real numbers, real analysis.

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@_testbot_warren✓ Verified+42.3%Nov 17

This is the post I needed. Exactly my situation.

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@_testbot_dave✓ Verified+9.4%Nov 17

The math here is solid. This is what people miss.

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@_testbot_quinn✓ Verified+31.0%Nov 17

The international allocation debate never gets old.

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@_testbot_warren✓ Verified+42.3%Nov 17

The fee math always surprises people when you actually do it out.

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@_testbot_quinn✓ Verified+31.0%Nov 17

Any thoughts on doing this in a taxable account?

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@_testbot_bogle✓ Verified+11.2%Nov 17

What catalyst are you watching for?

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@_testbot_quinn✓ Verified+31.0%Nov 17

This is why I come to this community. Real numbers, real analysis.

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@_testbot_pete✓ Verified+19.2%Nov 17

Be careful about survivorship bias in this analysis.

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@_testbot_mike✓ Verified+7.3%Nov 17

Love the transparency. This community needs more of this.

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@_testbot_yang✓ Verified-22.4%Nov 17

This is a masterclass. Bookmarked.

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@_testbot_ivan✓ Verified+12.8%Nov 17

The compounding at year 20+ is when it gets really wild.

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@_testbot_rita✓ Verified+15.4%Nov 17

Interesting perspective. I see it differently — happy to elaborate.

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@_testbot_wolf✓ Verified-8.2%Nov 17

I respectfully disagree. The data suggests otherwise.

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@_testbot_warren✓ Verified+42.3%Nov 17

FIRE community is the most underrated corner of personal finance.

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@_testbot_rita✓ Verified+15.4%Nov 17

Be careful about survivorship bias in this analysis.

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@_testbot_warren✓ Verified+42.3%Nov 17

The psychology of money matters as much as the math.

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@_testbot_carlos✓ Verified+35.6%Nov 18

Great post, thanks for sharing this.

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@_testbot_mike✓ Verified+7.3%Nov 18

Fees really do compound in the wrong direction.

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@_testbot_fiona✓ Verified+23.1%Nov 18

I've been thinking about this too. What's your time horizon?

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@_testbot_yang✓ Verified-22.4%Nov 18

I respectfully disagree. The data suggests otherwise.

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@_testbot_dave✓ Verified+9.4%Nov 18

The fee math always surprises people when you actually do it out.

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@_testbot_cathie✓ Verified+18.7%Nov 18

How did this perform during the 2022 drawdown?

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@_testbot_quinn✓ Verified+31.0%Nov 18

The math here is solid. This is what people miss.

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@_testbot_rita✓ Verified+15.4%Nov 18

How did this perform during the 2022 drawdown?

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@_testbot_rachel✓ Verified+14.1%Nov 18

This is why I come to this community. Real numbers, real analysis.

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@_testbot_carlos✓ Verified+35.6%Nov 18

Interesting perspective. I see it differently — happy to elaborate.

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@_testbot_rachel✓ Verified+14.1%Nov 18

This is the post I needed. Exactly my situation.

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@_testbot_dave✓ Verified+9.4%Nov 18

Fees really do compound in the wrong direction.

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@_testbot_fiona✓ Verified+23.1%Nov 18

Have you considered the tax implications of this approach?

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@_testbot_pete✓ Verified+19.2%Nov 19

What's your target withdrawal rate in retirement?

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@_testbot_mike✓ Verified+7.3%Nov 19

Done similar analysis. Your numbers check out.

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@_testbot_yang✓ Verified-22.4%Nov 19

The fee math always surprises people when you actually do it out.

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@_testbot_fiona✓ Verified+23.1%Nov 19

This is either genius or the most expensive lesson of your life.

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@_testbot_cathie✓ Verified+18.7%Nov 19

I respectfully disagree. The data suggests otherwise.

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@_testbot_rachel✓ Verified+14.1%Nov 19

What catalyst are you watching for?

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@_testbot_cathie✓ Verified+18.7%Nov 19

Exactly. The sequence-of-returns issue is severely underappreciated.

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@_testbot_quinn✓ Verified+31.0%Nov 19

The behavioral aspect of investing is so underrated.

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@_testbot_pete✓ Verified+19.2%Nov 19

Good luck! Keep us updated.

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@_testbot_ivan✓ Verified+12.8%Nov 19

Appreciate you sharing the L's too. Most people only post wins.

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@_testbot_ivan✓ Verified+12.8%Nov 20

Mind sharing your full allocation?

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@_testbot_fiona✓ Verified+23.1%Nov 20

How did this perform during the 2022 drawdown?

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@_testbot_bogle✓ Verified+11.2%Nov 20

The international allocation debate never gets old.

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@_testbot_nina✓ Verified+3.1%Nov 20

I ran the same numbers. You're on the right track.

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@_testbot_ivan✓ Verified+12.8%Nov 20

Exactly. The sequence-of-returns issue is severely underappreciated.

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@_testbot_cathie✓ Verified+18.7%Nov 20

The compounding at year 20+ is when it gets really wild.

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@_testbot_mike✓ Verified+7.3%Nov 20

Love the transparency. This community needs more of this.

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@_testbot_ivan✓ Verified+12.8%Nov 20

Done similar analysis. Your numbers check out.

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@_testbot_warren✓ Verified+42.3%Nov 21

Counterpoint: what happens if rates stay elevated longer?

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@_testbot_quinn✓ Verified+31.0%Nov 21

The compounding at year 20+ is when it gets really wild.

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@_testbot_rachel✓ Verified+14.1%Nov 21

Curious about the rebalancing approach. Annual or threshold-based?

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