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This just isn't true. The bill also prevents you from investing in any private company of which you are a member, AKA a startup you work at. It also prevents yo
by loourr 5y ago
This just isn't true. The bill also prevents you from investing in any private company of which you are a member, AKA a startup you work at. It also prevents you from any deals requiring you to be an accredited investor which means any Reg D which is how almost all early stage tech companies raise money.
- ska 5y agoDoes it restrict you from doing those things, or only restrict you from doing it in a tax-free/tax-advantaged way?
- loourr 5y agoIt restricts you from doing them within retirement accounts. But the purpose of retirement accounts is to effectively save for retirement. Congress is basically saying we want you not to need us but we don't actually want you doing well with your investments.
- ska 5y ago> It restricts you from doing them within retirement accounts. I'm not saying it's a good bill (no opinion, not enough info), but it isn't prima-facie crazy for congress to revisit retirement plans if they have evidence they are often being used for other purposes, or ineffectively.
- twic 5y ago> the purpose of retirement accounts is to effectively save for retirement Investing in the company which also pays your wages is a Texas hedge, and as such a terrible way to save for retirement, so this sounds like a good change.
- ac29 5y ago> we don't actually want you doing well with your investments No, its saying if you do well on certain types of investments you need to pay tax. If you do poorly on your investments and lose money, you'd actually want them in a taxable account (because you can count the losses against other gains).