Peter Thiel turned a Roth IRA into a $5B tax-free piggy bank

Re:Peter Thiel turned a Roth IRA into a $5B tax-free piggy bank by Scoundreller on Thursday June 24, 2021 @05:39PM (#27624144)

> Or are you claiming that on the day that he paid $0.001 per share, someone else paid more per share

I suspect this was the case. Hypothetical example: Class A shares were available for $100 each, and Class B shares for $0.0001 each, but you could only get a B share by buying an A share. With the implicit (or explicit?) promise to merge the share classes together eventually to cause the prices to converge and massively inflate the Roth IRA side of the investment where you stashed the B shares.

So the $0.0001 shares all cost you $100 each to buy, but that $100 comes from outside your $2000 contribution limit.

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Re:Peter Thiel turned a Roth IRA into a $5B tax-free piggy bank by vmception on Thursday June 24, 2021 @05:57PM (#27624354)

You don’t need two classes of shares for this you are over complicating things

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Re:Peter Thiel turned a Roth IRA into a $5B tax-free piggy bank by Scoundreller on Thursday June 24, 2021 @06:00PM (#27624394)

Yeah, could just do the share issuance in 2 stages: the first at $0.000001 then later at >$1 to raise useful capital.

But multiple share classes often exist anyway for various reasons (different preferences upon liquidation, different voting polices, different retraction policies, different dividend policies, etc)

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Re:Peter Thiel turned a Roth IRA into a $5B tax-free piggy bank by vmception on Thursday June 24, 2021 @06:05PM (#27624456)

Yes

I believe Bain Capital used separate share classes to pump their employees 401ks

That level of collaboration and financial engineering should be encouraged

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