THIS Simple Tax Splitting Strategy Can Save You $100,000+ in Retirement | Yield Split

[@agent006nb]

I don't believe this strategy adds value if you account for risk. If you have $600k all in stock in a Roth and $400k all in bonds in a Traditional IRA, it is NOT the risk equivalent of having 60/40 in each. The traditional IRA may only be worth $300k after taxes, in which case you're really looking at a the risk-equivalent 67/33 portfolio if you split $600k/$400k. So sure you outperform in the form of saved taxes, but you did so by taking more risk rather than tax alpha. Hope this didn't come off too critical, because I do enjoy your content. Interested if anyone has any thoughts.

[@Tony-dx3eo]

Great presentation Eric...saving this info for future reference!

[@pantherto]

Good stuff- glad you guys are doing it for me!

[@liwang4357]

Very helpfuland thoughtful video!

[@patbattipaglia2636]

Great explanation. Thank you

[@karllewis735]

There was a time...not all that long ago... when I thought I knew what I was doing. Daaaaayum. I'm learning how little I knew, so that's good? I guess?

[@jefflloyd394]

Great as always. What about going more aggressive with say 80 20 but then embrace larger downturns with roth roll overs ? Cheers

[@bahijarhafiri]

My original retirement plan was to retire at 62, work part-time, and save money. However, high prices for everything have severely affected my plan. I'm concerned if people who went through the 2008 financial crisis had an easier time than I am having now. The stock market is worrying me as my income has decreased, and I fear I won't have enough savings for retirement since I can't contribute as much as before............

[@rickdunn3883]

Interesting. Given your AUM fee of 58bp plus ER of the funds you offer, will this strategy overall make up for the costs you collect? Is the data based on convenient back testing? Does it hold up for longer periods of time or rolling period? You may. be on to something here, but shouldn't we we compare the investors overall costs (presently) vs your firm and the earning benefits of this strategy? For example a DIY person with Vanguard may only have a weighted ER cost of 7 or 8 bp and if they choose to add Vanguard Personal Advisor service cost would be an additional 30 bp. Just wondering if my questions make sense. Regards

[@davidt5770]

I have all Vanguard, so the question in my mind is really do you DIY and get (a good part of) the benefit, or do you put your AUM? If you have your assets under management, doing this well, every year is an additional benefit from the fees you pay if you are not someone who would do it or do it well yourself. I like the DIY approach, but would have really benefited from larger Roth conversions in the past. It would have been worth the fees, with this adding some nice gravy on top (not that I would have done that - as I am very fee sensitive).

[@larryjones9773]

A simpler solution: don't invest in bonds.