Individuals in the FIRE (Financial Independence, Retire Early) community often favor IRAs for their tax-free growth. A Redditor at 48 is learning about backdoor Roth IRAs, questioning if it's too late to utilize this strategy. With a net worth of $2.8 million and an aim to reach $4.5 to $5 million by retirement, they currently save $250,000 annually. This article discusses the backdoor Roth IRA, explaining its benefits for higher earners and emphasizing that it’s never too late to leverage such investment strategies for retirement savings.
A backdoor Roth IRA is an investment strategy enabling high-income earners to contribute to a Roth IRA despite income limits, providing them tax-free growth benefits.
At 48, it's not too late to pursue a backdoor Roth IRA, allowing for tax-advantaged growth even if retirement is just a few years away.
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