Boring to Billionaire: IRA Moves the Ultra-Wealthy Use That You Don’t
Can a simple retirement account create billionaire-level wealth? Absolutely… if you use it the way the ultra-wealthy do.
Take Peter Thiel, for example. By placing startup shares of PayPal into his Roth IRA in the early 2000s, he grew the account to over $5 billion, all tax-free. How? He used a Self-Directed IRA to access private equity deals, and he understood the power of Roth compounding: pay taxes now, and never again on those gains.
While these moves might sound out of reach, you don’t need to be a billionaire to use the same tools. You just need to know they exist — and how to access them.
The Power of the Roth IRA
A Roth IRA lets your money grow tax-free …forever. The ultra-wealthy prioritize putting their highest-growth assets in Roth accounts. Even if your income is too high to contribute directly, the backdoor Roth strategy (contribute to a traditional IRA, then convert) is 100% legal and widely used by high earners.
Roth conversions are also popular: pay taxes now on a traditional IRA, and your future growth becomes tax-free. Smart timing (like converting during low-income years) can reduce your tax hit while maximizing future gains.
Self-Directed IRAs: Think Outside the Market
Most IRAs are limited to stocks and mutual funds. But a Self-Directed IRA lets you invest in real estate, private lending, startups, crypto, and more. This is how investors like Thiel were able to buy startup shares in PayPal and Facebook inside a retirement account.
Want to invest in a rental property or private equity fund? A Self-Directed IRA can do that and all profits return to your account, tax-sheltered. Just follow IRS rules: no personal use, and no investing in businesses you or close family control.
The Solo 401(k): A Secret Weapon for Entrepreneurs
If you’re self-employed, even part-time, the Self-Directed Solo 401(k) offers massive benefits:
- Contribute up to $70,000+ annually (2025 contribution limits)
- Choose pre-tax or Roth contributions
- Invest in alternative assets
- Borrow up to $50,000 via a plan loan
Unlike IRAs, Solo 401(k)s also avoid certain taxes on leveraged real estate and can support “mega backdoor Roth” strategies for even higher Roth savings.
You Don’t Need to Be Rich to Think Like the Rich
The ultra-wealthy use retirement accounts strategically — not just to save money, but to build real wealth. With the right guidance, you can apply the same tactics to your portfolio and give your retirement dollars a chance to grow like never before.
Want to Learn More?
Schedule a free consultation with uDirect IRA Services and discover how Self-Directed IRAs and Solo 401(k)s can help you invest in what you know best. Let’s put your retirement on the path from boring to brilliant. 👉 Schedule your consultation now
