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How’s it going, everyone? Today, I want to tell you how to invest in startups tax-free!
Peter Theil made BILLIONS doing the same thing!
This is also how Mitt Romney has over $100M in his ROTH IRA.
Disclaimer: This is not financial advice; I am not a CPA or a tax professional.
Retirement Accounts
A 401K is a retirement account that you can contribute to your whole working life. Sometimes, your employer will benefit you by matching the amount you put in.
When that money is pulled out in your 60s or 70s, you are taxed.
I believe that 401Ks benefit everyone except for the owners of the accounts… yes, you! The bank and government benefit from this deal more than you.
An IRA is a remarkably similar account.
ROTH IRAs are a much better investment because you pay taxes upfront. This means you pull out your gains tax free after the age of 60 or so.
However, people still use them wrong; they’re just not informed!
Think about it… if your rate over 30 years is only 3.5%, then you’ll actually LOSE money due to inflation!
The annual contribution limit for the ROTH IRA is $6,000, and the 401k is $22,500.
So, how does someone like Peter Thiel have BILLIONS in his tax-free accounts??
Self-Directed ROTH 401k
Instead of investing conservatively in bonds or the S&P 500, my wife and I use our retirement accounts to invest in startups.
Chances are, you won’t hit the jackpot for a while… but you just keep investing in startups.
Do this BECAUSE Peter Thiel followed this pattern for years until he happened to be heavily invested in a startup called Facebook; and the rest was history!
How to Access the Money
What good is Thiel’s money if it’s locked up in a retirement account and therefore inaccessible?
Here’s an example I explained in my video…
If he wanted to use this money to buy a yacht, for example, he would be taxed on the money he pulls out of his retirement fund.
But here’s what Thiel does instead…
He borrows the money from the bank.
This maximizes his money because the interest rate on his loan is less than the interest he’s earning on his retirement fund!
Additionally, the debt payment he makes on that interest is tax deductible!
This is one way the rich get richer!
Conclusion
After reading this, hopefully you learned how to invest in startups tax-free!
Don’t hate the IRS/government because they enforce taxes. Use the tax laws to your advantage!
Visit Fund Launch to learn more about starting/scaling investment funds!
That’s it for today!
Thanks,
Want to get direct guidance for your fund? Schedule a time with my Fund Advisors!
DISCLAIMER: This content is for educational and informational purposes only. It is not to be taken as tax, financial, or legal advice. You should always consult a legal professional before taking action. Furthermore, this is not a recommendation to buy or sell any security. The content is solely just the opinion of the authors.
