@pg on @sama: "you could parachute him into an island full of cannibals and come back in 5 years and he'd be the king."
In retrospect this quote comes across as way more foreboding given what we've learned about the scale of his ambitions and his willingness to lie and bend reality to gain power.
Dario on the other hand seems to have an integrity that's particularly rare in this era. I hope he remains strong in the face of the regime.
> You are welcome to invest in their open, and very mediocre, funds though.
Are you really though? Show me how an individual can invest in any Renaissance fund (e.g. RIEF) They are only open to institutional investors as far as I know - i.e. those looking to invest say, 250m or more.
Your comparison assumes that the alternative to backdoor Roth is a traditional IRA contribution. The (ab)use of backdoor Roth contributions is commonly done by high-earning employees who have access to a 401(k)/Roth 401(k) plan. In this situation none of their IRA contributions are actually tax deductible at all!
So the 'backdoor' Roth contribution allows such people to invest post-tax dollars w/ Roth benefits when the IRS income limits seemingly make it clear that they shouldn't be able to contribute in this fashion. Why does the IRS have income limits on Roth IRA contributions but then allow them to be so easily bypassed in this manner?
their gross return is probably just a couple percent but then they leverage the crap out of it, which they can easily do since the strategy is designed to have very low volatility.
'The firm initially terminated its 401(k) plan for employees in 2010, a step that permitted them to roll the savings into traditional IRAs. Then, employees took advantage of a rule change that year allowing affluent Americans to convert their traditional IRAs into Roths. '
Looks like they rolled all their savings in to traditional IRAs and then converted them in to Roth IRAs. This procedure, known as a 'Backdoor Roth' conversion, effectively allows unlimited Roth IRA contributions beyond the income limits. If you are scratching your head and asking, why this is legal - so are many other people, but it appears to be accepted as within regulation by tax experts.
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