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Income Tax is for little people


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23 minutes ago, Ventucky Red said:

Please explain to me how real-estate agents created derivatives and mortgage backed securities?  

The existence of these things were not the issue.  I already cover this.  You need to read the paper called "The Destruction of Economic Facts" that someone provided a link for earlier.

 

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1 hour ago, The_Real_XYZ said:

The existence of these things were not the issue.  I already cover this.  You need to read the paper called "The Destruction of Economic Facts" that someone provided a link for earlier.

 

Try the cherry Kool-Aid next time,  it is red..

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7 hours ago, Ventucky Red said:

You finally figured out he was just another bulshitting politician?

 

 

So, you and the elk really think he was a Marxist in the pockets of Wall Street. Interesting

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  • 2 weeks later...
On 6/12/2021 at 7:41 AM, justsomeguy! said:

It was within the law.

Sucks, huh?

Yup,

 

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Peter Thiel's Roth individual retirement account antics explained:
You contribute $1,000 to a Roth IRA.

Then, in a scenario that only a handful of people have access to, you use that money to buy 1 million shares in a new startup company for just a fraction of a penny per share.

A few years later, that company goes public and the value of each share rises to $50.

Now your Roth IRA is worth $50 million.

Normally, when you sell those shares, you would owe the IRS 20% of your gains. But since this all happened inside a Roth IRA, you don’t pay any taxes.

Next, you use that $50 million to invest in more companies.

When those companies go public or their stock increases in value, your Roth IRA keeps growing.

As long as you wait to cash out until you’re 59 and a half years old, that money will never be taxed.

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I went through the Vox article in some detail. It's been written several times before, and that isn't a criticism. Indeed, it was written before by Gawker, the site that Thiel sued out of existence.

I'm not exactly opposed to the Roth IRA strategy. I even tracked down the successor company to Thiel's Roth IRA manager PensCo which is https://www.pacificpremiertrust.com/ and recommended it to a startup buddy.

In principle, there's nothing 'wrong' with what Thiel did (although the details are more than a bit hinky). He put his PayPal shares into his Roth and he's been VC investing that. The problem is scale. The R in IRA stands for Retirement. If Congress had meant Wealth they would have called it an IWA. By comparison, FICA taxes are capped but benefits aren't means tested.

Still, Thiel skated the rules. He invested his $1,700 in a company which was already funded and as the article says, he purchased his Roth shares below fair value.

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1 hour ago, Olsonist said:

he purchased his Roth shares below fair value.

But because it was a private entity at the time, no valuation existed.

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No, my house is a private entity but it still has a fair market value. From the looks of it, Thiel paid less than the strike price.

Sorry, Vox was a brain fart. 

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