Peter Thiel’s $5B Roth IRA Tax Haven Is the Hottest New Investing Tip

Re:Peter Thiel’s $5B Roth IRA Tax Haven Is the Hottest New I... by trident5000 on Monday July 05, 2021 @10:55PM (#27743824)

Something people dont seem to understand:

A roth IRA does not save you money unless the tax code changes unfavorably and at the time you exit the capital.

The math of taking the tax cut upfront (and then compounding your investment within) vs taking the tax cut later (after compounding) is actually the same.

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Re:Peter Thiel’s $5B Roth IRA Tax Haven Is the Hottest New I... by nrmitchi on Monday July 05, 2021 @11:07PM (#27743882)

This is completely wrong for a huge number of people who are currently in a much lower tax bracket than they expect to be in the future (when they are withdrawing).

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Re:Peter Thiel’s $5B Roth IRA Tax Haven Is the Hottest New I... by hn_throwaway_99 on Monday July 05, 2021 @11:07PM (#27743881)

This is laughably false, primarily because this is not just a discussion between a regular IRA (taxed on exit) or a Roth (taxed on entry). The contribution limits mean many people have a much larger amount of income than they could feasibly put into either type of account.

I mean, just look at how Thiel did it, it's not like he was trying to decide how to stash $1700. He saw it specifically as a way where he could buy a large amount of his shares at basically nothing because he knew if it grew he'd have a large amount of tax free cash to play with.

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Re:Peter Thiel’s $5B Roth IRA Tax Haven Is the Hottest New I... by trident5000 on Monday July 05, 2021 @11:50PM (#27744071)

Its not false its math. Get a spreadsheet out. He could have bought more shares without being taxed up front and the end result would be the same.

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