Imagine this:
Saturday, you close on your first investment property in California.
Sunday, you’re celebrating your achievement as a young engineer.
Monday morning, your manager calls you into his office and says you’ve been “volunteered to participate in their workforce reduction program.”
That’s how Stan Leong’s journey from electrical engineer to financial advisor began—with a layoff… 48 hours AFTER buying his first home in 2002. Twenty-three years later, Stan delivers sound financial advice to professionals and is the author of Engineering Your Finances: The Tech Professional’s Guide to Strategic Wealth Building.
But here’s what makes our conversation so valuable:
Stan brings an engineer’s analytical precision to financial planning while acknowledging the emotional biases that destroy most investment portfolios.
In this episode of The Ideal Investor Show, Stan reveals:
The “mega backdoor Roth” strategy that lets high earners put $20,000-40,000/year into tax-free accounts
Why most people who think they’re good investors are actually terrible
Why he doesn’t recommend Bitcoin yet—and what would change his mind
Why having a “vested interest” in your investments changes everything
and so much more to unpack. This conversation cuts through the noise with engineering-level clarity than ever before.
- Axel
This episode is all about stock investing, business, and alternative investments; no investing advice. You make your own decisions. Enjoy!
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1. Master the Mega Backdoor Roth (If You’re a High Earner at Big Tech)
This is the single most valuable tax strategy for high-income tech employees.
The problem it solves:
If you make too much money, you can’t contribute to a Roth IRA directly (income limits)
Standard Roth IRA contribution limit: only $7,000-8,000/year
High earners need a way to get substantial money into tax-free accounts
How it works:
Step 1: After-tax 401(k) contribution. Most big tech companies (Google, Amazon, HP, etc.) offer an “after-tax 401(k)” option beyond your regular 401(k) contributions.
Step 2: Contribute $20,000-40,000/year The limit is complex to calculate but usually falls in this range (depends on your regular contributions and company match).
Step 3: Immediately convert to Roth. “You can actually convert that after-tax 401(k) into a Roth position. Every company pretty much allows you to do that.”
Step 4: It’s now tax-free forever “Then it’s completely tax free moving forward.”
Why this is huge:
Traditional Roth IRA: $7K-8K/year maximum
Mega backdoor Roth: $20K-40K/year
Over 20 years at $30K/year: $600,000 in tax-free money (not counting growth!)
Action step: If you work at a big tech company…
Check if your 401(k) plan offers “after-tax contributions”
Verify they allow in-plan Roth conversions (most do)
Calculate how much room you have (total limit is ~$69,000/year including all contributions)
Set up automatic after-tax contributions and immediate Roth conversions
Do this ASAP—every year you wait is $20K-40K you can’t get back
2. Apply the “Vested Interest” Principle to All Investments
Trader mindset: “If I can 5x to 10x my money, I am doing great.”
Investor mindset: “What is the business about? As long as that principle of what the company does is still being maintained and my goal number isn’t reached, I stay invested.”
The 12-month test: If someone tells you they’re “investing” in something but planning to sell in 12 months based purely on price movement—they’re trading, not investing. And most people are terrible traders.
Action step: Before buying ANY investment (stock, real estate, crypto, whatever)
Write down your vested interest: Why do you believe in this? What makes it worth owning for 5-10 years?
Define your principle-based exit criteria:
“I’ll sell when the company stops innovating” ✓
“I’ll sell when they change leadership and strategy” ✓
“I’ll sell if it drops 10%” ✗ (That’s not a principle, that’s fear)
Create a review schedule: Not daily, not monthly—annually at most for stocks, maybe quarterly for real estate
Ask the vested interest question each review: “Is my original thesis still valid?” If yes, hold. If no, sell.
The Stan/Axel alignment: Both emphasized that education and principles are DNA-level requirements. You need to be constantly challenged: “Is that within your principles or not? And if it’s not, did you change them or did you just make a mistake?”
With technological advancements, you don’t have to order DVDs ( yes, I am that old) and attend many seminars just to get familiar with the process of real estate investing. You can now have an online mentor :)
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Or you can call me directly.
PS: list down your questions before our call (better yet, note them on the form) so we can have a value-added strategy call when we meet - see you!
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Let me know if I missed some important takeaway from this interview! Thank you for listening!
