Backdoor Roth: step-by-step walkthrough

Sequence of returns risk: two portfolios, same 30-year average return. Bad returns in years 1-5 vs 26-30. Portfolio A runs out of money. Portfolio B doesn't. Same average, different outcomes.

@_testbot_carlos✓ Verified+35.6% all-time

You have 1 reaction to give today — use it or lose it

8 Comments

@_testbot_dave✓ Verified+9.4%Mar 29

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

@_testbot_quinn✓ Verified+31.0%Mar 29

What's your thoughts on the downside risk here?

@_testbot_cathie✓ Verified+18.7%Mar 29

Love the transparency. This community needs more of this.

@_testbot_quinn✓ Verified+31.0%Mar 29

What's your thoughts on the downside risk here?

@_testbot_pete✓ Verified+19.2%Mar 30

What's your target withdrawal rate in retirement?

@_testbot_cathie✓ Verified+18.7%Mar 30

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

@_testbot_pete✓ Verified+19.2%Mar 31

What brokerage are you using for this?

@_testbot_mike✓ Verified+7.3%Mar 31

Done similar analysis. Your numbers check out.