2 ms·
This is a weird take, even if the game is rigged no amount of market manipulation can defeat just buying and holding. Those are limits on tax advantaged accoun
by Spivak 3y ago
This is a weird take, even if the game is rigged no amount of market manipulation can defeat just buying and holding.
Those are limits on tax advantaged accounts. You can put any amount of money you want into whatever market and have the growth taxed at capital gains rates. If you're talking about backdoor Roths you can (and should) take advantage of it, it's not a rich-person only thing.
- bmitc 3y agoIf it isn't only a rich people thing, then how do people amass hundreds of millions and even billions in Roth IRA accounts? Those numbers far exceed, by many orders of magnitude, the contribution limits and assumptions of 10% growth over decades.
- Spivak 3y agoBecause Roth accounts aren't taxed on the growth, and the growth is unbounded. 1. Put in $6000/yr into your Roth. 2. Invest in low-cost, high-risk high-reward stocks. 3. Get lucky. 4. Boom your Roth is worth millions. For more seed money look at the list of the accounts you're still allowed to roll-over into Roth IRAs, pump money into there, and roll them over. The only "rich person" thing is some people have access to non-publicly traded stocks but I have those and I'm certainly not rich.