161: Backdoor Roths, Mega Backdoor Roths, and Roth Conversion Ladders with The Mad Fientist
He’s back! Today we’re joined by a friend of the BiggerPockets podcast network, Brandon “The Mad Fientist”. Brandon walks us through advanced retirement account strategies you may have heard of, such as the Backdoor Roth, Roth Conversion Ladder, and the coveted Mega Backdoor Roth. While these strategies may sound intense at first, they’re quite simple in practice, as Brandon shows us!
Many FI (financial independence) followers constantly ask the question “What’s the best retirement account to contribute to that will help me optimize my early retirement?”. While this can be answered a handful of ways, it often overlooks something very important: regular retirement. While chasing FI, it’s still possible to grow your traditional retirement accounts so you’re even wealthier later on in life!
Brandon doesn’t just give various examples of each strategy, he’s tested them and has even ran experiments on his site, such as the Guinea Pig Experiment, which pits various early retirement strategies against each other.
We also tackle common questions like: what should I contribute to if I have a low/high income, should I opt for a lower deductible on my healthcare plan to optimize my HSA (health savings account), how HSAs and FSAs differ, and what the contribution limits are for retirement accounts.
Even if you’re not chasing FI, you’ll still be able to take advantage of Brandon’s advice. After all, he’s the Mad Fientist!
In This Episode We Cover
- What a Backdoor Roth and Mega Backdoor Roth are
- Why retirement accounts are crucial when trying to retire early
- How low income earners can take advantage of 401(k)s and IRAs
- Why an HSA is a great option for high-deductible coverage
- The best times to contribute to your retirement accounts
- The art of “frontloading” and using it to capitalize on market gains
- And So Much More!
Links from the Show
- BiggerPockets Money Facebook Group
- BiggerPockets Forums
- Finance Review Guest Onboarding
- BiggerPockets Money Podcast 18 with Mad Fientist
- How to Access Retirement Funds Early - Mad Fientist
- XY Planning Network
- Front-Loading - Mad Fientist
- HSA - The Ultimate Retirement Account - Mad Fientist
- Expirements - Mad Fientist
- BiggerPockets Money Podcast 120 with Michael Kitces
- BiggerPockets Money Podcast 119
Check the full show notes here: https://www.biggerpockets.com/moneyshow161