This is why I invested in SpaceX out of my Roth IRA.

Whenever I have the opportunity to invest in private equity, I’m very careful about where I hold it.

Let’s say (purely for illustration):
• You invest $100,000
• It grows to $500,000

Most people stop there and call it a 5x.
But that might not be true!

Because where you hold an investment can be almost as important as the investment itself.

Here’s the math on that $100K → $500K move:

Roth IRA

• Invest: $100,000
• Exit value: $500,000
• Tax owed: $0

You keep the full $500,000.
True result: 5x

Taxable Account (High-Tax State)

• Invest: $100,000
• Exit value: $500,000
• Gain: $400,000
• Tax bill: ~$148,000

You keep roughly $352,000.
Actual result: ~3.5x

Same investment. But wildly different after-tax outcomes.

This is why asset location is one of the most underappreciated decisions in wealth management.

This example reflects how I personally structured my own exposure. It’s not a recommendation to buy SpaceX (especially at the new valuation 😵).

But the principle holds:

Put your highest-upside opportunities in the most tax-sheltered accounts you have.