Retirement... (i.e. what are you going to be after you've grown up)

Chanur

Chanur

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TomServo said:
Your not worthless bro. Folder is worthless
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Proud Of You Yes GIF


Thanks bro.
 
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Kithani

Kithani

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Control said:
And are you below average now?


Including people that are below average is how averages work, but even among your white, middle class, middle school cohort, are you doing worse than average?
Don't you think 11 year olds with a pc in 1999 (and an internet connection) might have some advantages over kids who didn't?
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I admit I think I misunderstood your original comment, my B.

I can agree I guess any family that owned a PC and willing to pay 9.99/mo for an online game probably at least average to above the average. I thought you meant MMO players were somehow more motivated to succeed than the average person which is what I disagreed with.
 
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Furry

Furry

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Burren said:
You make money in it, tax-deferred, then when its a bigger pile of money and you access it, the government takes their cut.
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Roth IRA has no tax on withdrawal if you follow the rules. It's a very powerful tool for regular investors and the super wealthy. Shocked you don't know about it if you are into wealth management. Peter thiel in particular made a comical exploit of the rules to evade around a billion in taxes.
 
fris

fris

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Kithani said:
I admit I think I misunderstood your original comment, my B.

I can agree I guess any family that owned a PC and willing to pay 9.99/mo for an online game probably at least average to above the average. I thought you meant MMO players were somehow more motivated to succeed than the average person which is what I disagreed with.
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MMO players are all about min/maxing at their core. except those that play healers and get carried. I wouldn't be surprised if former MMO players are doing better than average
 
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Burren

Burren

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Furry said:
Roth IRA has no tax on withdrawal if you follow the rules. It's a very powerful tool for regular investors and the super wealthy. Shocked you don't know about it if you are into wealth management. Peter thiel in particular made a comical exploit of the rules to evade around a billion in taxes.
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He didn’t say Roth, did he. I know WTF it is.
 
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Warr

Warr

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OK I'll bite. How do Roth IRAs benefit the super wealthy? Because I found out this year there is a max AGI to be allowed to contribute to a standard Roth IRA. I'm close to borderline on that limit this year even with a career transition, and I will blow past it next year with a full year of this new job + military retirement coming in. I could switch to Roth 401k contributions, but I think my play is to go deeper on tax-deferred contributions now.
 
Captain Suave

Captain Suave

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Warr said:
OK I'll bite. How do Roth IRAs benefit the super wealthy?
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The super wealthy? Hardly at all. They can be a great vehicle for people who save their way to low/moderate wealth, though. Use them while you're able to, second only to HSAs. If you have a low income year you can also do a traditional > roth rollover. My dad benefitted greatly from doing that about 20 years ago.
 
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Control

Control

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Khane

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Yea I don't get that article, it's just saying "This person used their Roth to invest in stocks that went way up!"

k?
 
U

Unidin

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If you read a little further down, it gives more details.

While SEC filings describing that time don’t mention Thiel’s Roth, they show that he bought his first slice of the company in January 1999. Thiel paid $0.001 per share — yes, just a tenth of a penny — for 1.7 million shares. At that price, he was able to buy a large stake for just $1,700.

In 1999, $2,000 was the maximum amount you could put into a Roth in a year.

Thiel’s unusual stock purchase risked running afoul of rules designed to prevent IRAs from becoming illegal tax shelters. Investors aren’t allowed to buy assets for less than their true value through an IRA. The practice is sometimes known as “stuffing” because it gets around the strict limits imposed by Congress on how much money can be put in a Roth.

PayPal later disclosed details about the early history of the company in an SEC filing before its initial public offering. The filing reveals that Thiel’s founders’ shares were among those the company sold to employees at “below fair value.”
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Just to add, there's also rules against self dealing in retirement accounts. Thiel's hedge fund had already invested in Paypal, so his company was already an owner of the company he was now putting is his retirement account. I'm not a lawyer, so I can't speak to the legality of it, but it's for sure against the spirit of the rule: Retirement topics - Prohibited transactions | Internal Revenue Service
 
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fris

fris

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There's a list of super wealthy who have crazy roths. Even if the money goes in, taxed at ~50%, they can buy these limited access stocks. I think Mitt Romney has one worth millions.
 
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