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Thiel then used the wealth amassed in his Roth to invest in other startups How? I thought the whole point is you can't touch this money? Did he take on loans,
by Chris2048 5y ago
Thiel then used the wealth amassed in his Roth to invest in other startups
How? I thought the whole point is you can't touch this money? Did he take on loans, promising to pay them back once he was 60?
In 2004, he provided Facebook's first large outside cash infusion, investing $500K. His Facebook shares would grow tax-free in his Roth.
I'm not sure I understand. Did he invest in FB and independently purchase shares (less than 2k pa) in his Roth? So the 500K was not the private purchase of shares?
- naturalauction 5y agoIt's possible he already had 500k in his Roth by 2004.
- fastball 5y agoYou buy 2000 shares with your Roth IRA for $1 per share. They appreciate in value to $1,000 per share. You sell the shares, now there is $2,000,000 cash value in your Roth IRA, which you can use to make other investments. Repeat ad infinitum without those transactions incurring any sort of tax burden, as long as you don't withdraw any of that money until you're 60.
- s1artibartfast 5y agoWhat do you mean by can't touch the money in a Roth? It stays in the roth account, but you can buy and sell assets as often as you want with the money you put in.
- misiti3780 5y agoHow did he buy non-public-ally trade FB shares in his Roth?
- missedthecue 5y agoWith a self-directed IRA, you can make all kinds of investments, including real-estate and private companies.