Billionaire Investor And PaypPal Founder – Here’s What You Should Know About Peter Theil
Peter Thiel is best known as the billionaire technology investor who co-founded PayPal and Palantir, a massive data analysis firm (and security contractor). Oh, and for the record, he also attempted to build a libertarian utopia on a massive platform in the middle of the ocean. He was one of the early investors in Facebook and also the inspiration behind a plot detail in HBO’s “Silicon Valley.”
Thiel’s critics, who often dismiss him as just another libertarian techno-evangelist, should give his book “Zero to One” a close look. In it, Thiel makes some points that don’t quite fit with his public caricature. He argues that monopolies are good and that it’s competition, red in tooth and claw, that often destroys industries.
What is Thiel’s background?
Thiel is one of Silicon Valley’s most influential figures, having parlayed his personal network, financial investments, and zeal for debate into a business philosophy emulated by start-up founders who regard Thiel as “the cult leader of the cult of disruption,” according to Max Chafkin, author of Thiel’s 2021 biography “The Contrarian.”
He was a childhood chess champion who went to Stanford for his undergraduate studies and then the law school. During his time at Stanford, he founded the conservative publication the Stanford Review, which railed against what he and his colleagues saw as the encroaching force of political correctness on college campuses. Thiel later co-wrote “The Diversity Myth” with tech investor David Sacks, which addressed similar issues.
After college, he raised $1 million from friends and family to launch Thiel Capital Management to invest in the dot-com boom, before co-founding PayPal with Max Levchin, which was later acquired by eBay.
Peter Thiel’s $5 billion Roth
Following up on their ground-breaking reporting on America’s top billionaires’ paltry income tax payments, ProPublica has revealed billionaire Roth IRA stuffing.
According to ProPublica, PayPal founder Peter Thiel started a Roth IRA with a contribution of less than $2,000 in 1999 and reaped tax-free gains totaling $5 billion by 2019.
Thiel will pay no federal income tax on his $5 billion in gains because they were earned entirely within a Roth IRA. That is how individual retirement accounts operate. Unlike a traditional IRA contribution, a Roth IRA contribution is not tax deductible. However, as long as no premature distributions are made, the investment gains are completely tax-free, regardless of how large a Roth IRA grows.
Thiel is not the only one among the ultra-rich who has taken advantage of this loophole. According to ProPublica, Berkshire Hathaway’s Warren Buffett and Ted Wechsler, Alden Capital’s Randall Smith, and Renaissance Technologies’ Robert Mercer have all used Roth IRAs to create massive tax-free slush funds.
The Roth IRA has nothing to do with retirement planning and everything to do with tax avoidance for these economic elites.
More in Financial Advice
The Journey of An Amazon Delivery Package
Amazon is a giant in the e-commerce industry that has gradually established itself as a must-have for online shoppers. The company’s...July 19, 2023
The Dangers of Relying on a Single Income Source
Living off a single income can present various challenges and disadvantages for individuals and families. While there are certain situations where...July 14, 2023
How Do Mutual Funds Work?
Investing money is essential to financial planning, and mutual funds are among the most popular investment options. Many investors prefer mutual...July 7, 2023
6 Creative Tips to Get the Special Treatment on Your Flight
Traveling can be stressful. But there is nothing like getting special treatment on your flight to make you feel like a...June 29, 2023
Ken Jennings: Career, Fame and Success
Ken Jennings is an American game show contestant, author, and television host who gained fame for his record-breaking 74-game winning streak...June 20, 2023
Simple Financial Tips Every Start-Up Should Know
Starting a business can be a thrilling and rewarding experience, but it can also be financially challenging. Managing cash flow and...June 14, 2023
Smart Ways to Invest Your Tax Refund in 2023
As tax season approaches, you’re likely considering how best to use your hard-earned refund. While it may be tempting to spend the...June 7, 2023
The Importance of a Financial Plan
A financial plan is a comprehensive document that outlines an individual’s or organization’s financial goals and strategies to achieve them. It...June 2, 2023
Some Untold Ways Of Staying Friends With Your Exes
Breaking up with someone you were once in love with can be one of the most challenging experiences one can go...May 23, 2023