WealthExact

WealthExact

Guides

Each guide walks the primary-source reasoning behind a financial rule — the statute, the IRS form line mapping, the worked example — and links to the paired calculator where you can run your own numbers. The standard is the same as the tools: show the math, name every assumption, cite the source. No fabricated author credentials; the sourcing is the trust signal.

The accounts cluster guides come first because that is where the gap is real: the informational SERP is held by custodians with authority but no step-by-step Form 8606 walkthrough and no calculator paired to the explanation.

72(t) / SEPP: The Three IRS-Approved Methods, Explained

How IRC §72(t)(2)(A)(iv) and IRS Notice 2022-6 define penalty-free early IRA withdrawals — the RMD, fixed amortization, and fixed annuitization methods with the IRS worked example, the interest-rate cap rule, and the recapture risk that makes every SEPP an irrevocable, multi-year commitment.

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The Pro-Rata Rule, Explained

How the IRS calculates the taxable fraction of a Roth IRA conversion — the Form 8606 math, the clean-backdoor case, and why your year-end balance across all non-Roth IRAs determines the outcome.

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Self-Employed Retirement Contributions: Why It's 20%, Not 25% (and How to Calculate Yours)

Why a sole proprietor's SEP-IRA or Solo 401(k) employer contribution is 20% of net earnings, not 25% — the circular compensation definition, the algebraic proof, a line-by-line worked example tied to IRS Publication 560, and the 2026 contribution caps.

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The Roth Conversion Ladder, Explained

How IRC §408A(d)(3)(F) and the Pub 590-B ordering rules turn annual Roth conversions into penalty-free income before age 59½ — the 5-year clock, why the withdrawal is tax-free, the five-year bridge problem, a full worked example, and how the ladder compares to a 72(t)/SEPP.

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The 4% Rule Was Never a 30-Year Guarantee — What the Trinity Study Actually Found

The 4% rule reports a historical success rate, not a promise. Here's what the Trinity Study actually measured, why a 50-year horizon changes the math, and how to treat the number as a starting assumption.

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Why Coast FIRE Is a Math Trick, Not a Finish Line

Coast FIRE only works if decades of growth and inflation assumptions hold with zero further contributions. Here's how to stress-test that bet before you stop saving.

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Expense Ratios Compound Against You: The Real Cost of a 1% Fee

A 1% expense ratio doesn't just cost 1% per year — it quietly claims a large share of your terminal wealth because the fee compounds on money you never got to keep. This guide shows how to measure fee drag as a percentage of final balance, not annual cost.

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Dollar-Cost Averaging vs. Lump Sum: Why the Math Favors Investing It All at Once

Because markets rise more often than they fall, lump-sum investing outperforms dollar-cost averaging in the majority of historical periods. This guide explains the data, names the assumptions, and helps you choose deliberately rather than by default.

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Same Money or Same After-Tax Cost: The Roth vs. Traditional Comparison Most People Get Wrong

Most Roth vs. Traditional comparisons use equal dollar contributions, which quietly tilts the math toward Roth. The honest comparison holds after-tax cost constant — and when you do that, the decision comes down almost entirely to current versus future marginal tax rates.

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