Episode 2 of 6
The Tax Efficiency Question
Will's advisor suggests putting $50k into a backdoor Roth IRA and $30k into a taxable account with tax-loss harvesting. Will has never heard of either. The model explains the tax math.
Key Insight
A backdoor Roth shelters $7,000/year from future taxes. At Will's 24% marginal rate, $50k in Roth conversions over 7 years saves an estimated $33,600 in lifetime taxes compared to leaving it in a taxable account.
Model This Scenario
Starting with numbers similar to Will's situation — adjust any input to make it yours.