Can You Copy Peter Thiel’s Strategy In Turning A $2K IRA To $5B Tax-Free

Investing in Gold Basics

Published: October 8, 2021

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Ever since the news of Peter Thiel, a founder of PayPal, who used RothIRA to build $5Billion worth of wealth tax-free, several of you have asked us for more details on what RothIRA is and how it works.

The best way to know about this is to ask your financial advisor or your accountant. We aren’t either of those. We are just here to provide you with information you can use and add to your research to make better investment decisions.

I can, however, tell you more about how millionaires are using it to build wealth and a little about its history.

The late Sen. William Roth Jr was the one who sponsored the bill creating RothIRA in congress in 1997. Originally, only those making less than $110,000 annually are eligible to open a Roth IRAs. It was a way to allow the middle class to stow money away, tax-free, for retirement.

About a decade later, RothIRA was opened to everyone.

Since then, thousands of America’s wealthiest people have taken advantage of this, using clever and very legal tactics.

Local reporting network ProPublica scoured the tax return data of the ultrawealthy for IRA accounts valued at more than $20 million. Their reporters also examined Securities and Exchange Commission filings, court documents, and other records.

Their records show that Ted Weschler, a deputy of Warren Buffett at Berkshire Hathaway, had $264.4 million in his Roth account at the end of 2018.

Hedge fund manager Randall Smith, founder and chief of investments of Alden Global Capital, had $252.6 million in his Roth IRAs.

Buffett, one of the richest men in the world, also is making use of a Roth. At the end of 2018, Buffett had $20.2 million in it.

Former Renaissance Technologies hedge fund manager Robert Mercer had $31.5 million in his Roth.

None of these billionaires publicly talk about how they managed to grow their investment to billions. But the general idea is this.

Depending on the investment company you are using, you could put different types of investments in your Roth IRAs. That includes stocks, shares, and cryptocurrencies.

With Roth IRAs, you pay your taxes based on your contribution. The capital gains of your investments in your Roth IRAs will be tax-free when you cash it out.

Let’s say you buy crypto right now that’s worth 10 cents each. You can buy maybe 20,000 shares. That would be $2,000. You have to pay the taxes for that in the year you invested.

But when you get to 59 1/2, that crypto goes up to $500 each, your total asset will now be 10 million.

You cash it out and you will not pay a dime.

That’s what Thiel and other billionaires did. They invest in assets worth pennies. They get thousands of them. Those assets increased in value and it’s all tax-free.

You may or may not hit billions in your Roth IRAs. After all, Thiel and other billionaires were also in some extraordinary positions that allowed them access to deals we don’t have.

That, however, should stop us from utilizing RothIRA to our advantage.

You can invest in any asset – stocks, gold, crypto, real estate, and others- and pay no tax when your investment grows.

You just have to talk with your investment company and make sure what you can or cannot invest in.

If, however, you want to protect all your investments, a Gold RothIRA is the best one and we can certainly help you with it.

Noble Gold Investments will take no more than 5 minutes of your time to set it up. And you can call us if you need help or have any questions.

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