News this week that inflation eased more than expected in October solidified the view that the Federal Reserve is done with its most aggressive rate-hike campaign in four decades.
And that could be a boon for the stock market and your 401(k).
News this week that inflation eased more than expected in October solidified the view that the Federal Reserve is done with its most aggressive rate-hike campaign in four decades.
And that could be a boon for the stock market and your 401(k).
You say in your original comment to me “the ultra wealthy would love to benefit from Roth IRAs!” Well guess what: they do and it’s often a substantial portion of their fortune.
So what is your point now?
They can still only put in $6,500 per year into the account. As I said “Rich people would LOVE to own more in the same way and pay less taxes.”
This guy won the lottery. Should we kill a program that you can only put $6,500 in per year that millions of Americans use just because someone wins the lottery? If that is the route you suggest, we will have to go and kill every program that people use to invest in their future.
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So they’d love to do a thing that they have all demonstrated they are perfectly capable of doing? What is even the value of such a comment?
Citation needed. You can’t invest in a Roth above a certain income as well, so that filters out a lot of folks. And at $5500/yr (only went to $6500/yr a few years ago) the math simply doesn’t make sense. Billionaires aren’t billionaires (or even those in the 8-9 figure world) because of a Roth and it is absolutely not a substantial part of their wealth. You can’t even access it until your 60’s without insane penalties.
Thiel’s case is the exception. Most billionaires aren’t sitting on that kind of wealth in a Roth. Most “ultra wealthy” folks were given a lot of money to start with.
Dude I literally linked an article in this very comment chain about how 5 billion of Peter Thiel’s dollars are tied up in a Roth IRA he started in the 90s, which covers interviews with the financial advisor who suggested he do it in the first place, and which talks about how this is an extremely common thing to do (literally why wouldn’t anybody who is already a multimillionaire NOT do what Peter Thiel did when they start their next business).
I addressed Thiel
Have you ever heard of the backdoor Roth?
Yes. It’s a taxable event that also counts as income which could lead to even higher tax rates for you. It’s distinct from straight up contributing to one as intended and is a separate issue IMO.
excuse me but I did not say that the ultra wealthy use Roth IRAs to successfully avoid 100% of taxes. Only that the ultra wealthy keep significant amounts of assets in Roth IRAs. You told me that you didn’t believe me because there are income limits. So I told you about a longstanding strategy precisely designed to get around those very income limits. Yes, there is some up front tax, but it really is a small price to pay.
So what is there to dispute now if we both agree that it’s relatively easy for the ultra wealthy to get around the income limits of Roth IRAs.