For physicians whose hospital plan permits after-tax contributions and in-service Roth conversions, the answer is the mega backdoor Roth. It is the single largest tax-free savings lever available to a W-2 employee, and almost no one in the cardiology lounge is using it.
The average actively managed mutual fund charges around 1% annually, and even popular index funds from legacy providers can run 0.10% to 0.20%. Those differences sound trivial until you calculate what they cost over decades. SCHK charges just 0.03%, making it one of the lowest-cost ways to own broad U.S. equity exposure. This pricing advantage becomes meaningful over decades as the difference between paying $30 versus $1,000 annually on a $100,000 investment compounds into substantial wealth preservation.
Even small optimizations can become meaningful. Assuming a $5,000 initial investment and annual $5,000 contributions for 25 years, the difference in improving your IRR just 1% and going from 8% to 9% annual returns results in nearly $67,000 more in your retirement account. So it's worth spending a little extra time to make sure you're getting the most out of your Roth IRA by understanding all the various benefits and strategies.
