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Family Offices and Roth IRAs don't exist in the same universe.
by FateOfNations 4y ago
Family Offices and Roth IRAs don't exist in the same universe.
- alephnan 4y agoA 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 agoThey 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