This chapter provides guidance on optimal decision-making between Roth and tax-deferred contributions for retirement savings, discussing a rule of thumb based on peak earnings years while acknowledging exceptions like top tax bracket scenarios. Misconceptions regarding comparing current marginal tax rates, the value of deferring tax payments, and the optimal ratio of pre-tax to Roth assets are debunked, emphasizing individual circumstances and future tax considerations as key factors in choosing between the two options.
Today Chris Davin, engineer and self taught master of all things Roth, joins Dr. Dahle on the podcast. For anyone who has ever wanted to get all the way into the Roth weeds, this episode is for you. We talk about Roth IRAs, the Backdoor Roth, the Mega backdoor Roth, Roth conversions, and what all of those things mean. We discuss how to determine if you should be doing pre or post tax contributions and why, and how your taxes and tax rate should be considered when deciding what kind of contribution to make. We start with a 101 level discussion before moving to a 201 level discussion and then diving into the graduate level tips and tricks.
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The White Coat Investor has been helping doctors with their money since 2011. Our free financial planning resource covers a variety of topics from doctor mortgage loans and refinancing medical school loans to physician disability insurance and malpractice insurance. Learn about loan refinancing or consolidation, explore new investment strategies, and discover loan programs specifically aimed at helping doctors. If you're a high-income professional and ready to get a "fair shake" on Wall Street, The White Coat Investor is for you!
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