5 ms·

Can family offices, idk maybe one with a big Roth IRA, lever this?

• FateOfNations 4y ago
  Family Offices and Roth IRAs don't exist in the same universe.
  • alephnan 4y ago
    A family office is simply a team of lawyers/financiers who manage an individual/family's money, rather than outside money. A Roth IRA is a just a bucket with rules about how money can go in and out. There is no reason they are mutually exclusive. Additionally, Roth IRAs can be self-directed which means they can use whatever exotic investment they choose, including private equity. Exhibit A: https://www.propublica.org/article/lord-of-the-roths-how-tech-mogul-peter-thiel-turned-a-retirement-account-for-the-middle-class-into-a-5-billion-dollar-tax-free-piggy-bank https://www.propublica.org/article/lord-of-the-roths-how-tec...
  • yieldcrv 4y ago
    They can and do exist in the same world. For funding, people with self-directed Roth accounts can pump $50,000-$60,000 into them via the annual 401k contributions (this is the slightly obscure higher annual limit when you can make employer contributions on your own behalf) and then get a couple 3,800% gains in some private equity investments tax free (a percentage from the article), and go from there Any retirement account can just be a distinct limited partner in the family office or fund
• collegeburner 4y ago
  You wouldn't "lever" this any different from how you would another PE fund. Yes accredited investors can invest in a PE fund with a Roth IRA. Just like any other PE fund they can invest in a continuation. But TBH I'd be careful before you do that, a few of the ones I've seen are good but a lot of these aren't really that great. Though that's a lot of PE these days with too much $ chasing too few companies.