Theorem Financial — Writing https://theorem.financial/writing Analysis on financial optimization, tax strategy, and wealth mechanics. en-us The Most Expensive Single Dollars in the Tax Code: Mapping the 2026 IRMAA Cliffs https://theorem.financial/writing/irmaa-cliff-map https://theorem.financial/writing/irmaa-cliff-map IRMAA has no phase-in. We computed the exact cost of crossing each 2026 threshold by a single dollar — at the second threshold, one dollar of extra income costs a married couple $3,475. Wed, 01 Jul 2026 12:00:00 GMT Retirement We Ran Every Social Security Claiming Age Against Every Death Age. Age 67 Never Wins. https://theorem.financial/writing/ss-claiming-sweep https://theorem.financial/writing/ss-claiming-sweep A full sweep of claiming ages 62 through 70 against death ages 70 through 100 produces a result most guides miss: full retirement age — the default answer — is never the mathematically optimal claiming age. Wed, 01 Jul 2026 12:00:00 GMT Retirement Why High Earners Should Execute the Backdoor Roth Every Single Year https://theorem.financial/writing/backdoor-roth-annual https://theorem.financial/writing/backdoor-roth-annual The backdoor Roth is not a one-time maneuver. It is an annual tax arbitrage that compounds silently over decades. Skipping a single year costs more than most people realize. Sun, 01 Mar 2026 12:00:00 GMT Tax Strategy The Pro-Rata Rule: Why Most Backdoor Roth Guides Get It Wrong https://theorem.financial/writing/pro-rata-wrong https://theorem.financial/writing/pro-rata-wrong The IRS aggregates all traditional IRA balances when calculating the taxable fraction of any conversion. Understanding this changes the execution order entirely. Sun, 01 Feb 2026 12:00:00 GMT Tax Strategy The Solow Model Applied to Personal Finance: Your Wealth Has an Equilibrium https://theorem.financial/writing/solow-personal-finance https://theorem.financial/writing/solow-personal-finance The same framework economists use to model national economic growth applies directly to household balance sheets. Your net worth has a steady-state equilibrium determined by your savings rate, depreciation forces, and capital productivity. Sun, 01 Feb 2026 12:00:00 GMT Methodology Avalanche vs Snowball Is a False Dichotomy. Here Is the Actual Optimization. https://theorem.financial/writing/debt-mathematics https://theorem.financial/writing/debt-mathematics The mathematically optimal payoff sequence is neither pure avalanche nor pure snowball. It depends on the specific interaction between your interest rates, cash flow, and time horizon. Thu, 01 Jan 2026 12:00:00 GMT Debt Strategy FIRE and Sequence-of-Returns Risk: The First Five Years Are the Entire Problem https://theorem.financial/writing/fire-sequence-risk https://theorem.financial/writing/fire-sequence-risk A 20% portfolio drawdown in year one of retirement permanently impairs a fixed withdrawal strategy. Dynamic withdrawal rules and a two-year cash buffer materially change the survival probability. Thu, 01 Jan 2026 12:00:00 GMT Retirement Asset Location: The 1% Annual Return Nobody Discusses https://theorem.financial/writing/asset-location-mechanics https://theorem.financial/writing/asset-location-mechanics Placing bonds in tax-deferred and equities in taxable is conventional wisdom. The actually optimal location depends on your marginal rate, expected holding period, and the specific assets — and it is not always what you expect. Mon, 01 Dec 2025 12:00:00 GMT Portfolio The Mega Backdoor Roth: Who Actually Has Access and How to Check https://theorem.financial/writing/mega-backdoor-access https://theorem.financial/writing/mega-backdoor-access The mega backdoor Roth is available to more people than commonly assumed — and unavailable to some who think they have access. Here is exactly how to verify eligibility in three steps. Mon, 01 Dec 2025 12:00:00 GMT Tax Strategy