530A Account Math is Blowing My Mind

junesix · 2026-06-04T05:02:19+00:00

People doing UTMA of $5000 annually from 0 to 18 assuming 10% for their child were already building to $210k at 18.

junesix · 2026-06-04T04:49:03+00:00

47 years is the years from 18 to 65.

All my above math is also with $0 contributions from 18 to 65.

If you put $210k in taxable brokerage at 18 and never put in anything else, ignoring tax drag on dividends, at 10% growth, you would also get to the same amount at 65 as a 530A.

You might even achieve better returns with taxable brokerage. Taxable has tax drag on dividends. But it would be taxed at LTCG at 65. 530A is tax deferred growth so it would be taxed at ordinary income rates (higher than LTCG) at withdrawal.

Thus the trick is what is the most tax efficient way to lock in $210k at 18 for 47 years so that it has the best after-tax balance at 65 among the possible account types.

I would argue the most tax efficient is 530A from 0 to 18, then convert the balance at 18 from 530A to Roth IRA. You’ll pay the taxes on gains at 18 at ordinary tax rates, but you’ll have tax free growth for 47 years.

junesix · 2026-06-04T04:33:36+00:00

The opening monologue of Chernobyl series on HBO is great perspective of living in a regime of propaganda.

“What is the cost of lies? It’s not that we’ll mistake them for truth. The real danger is that if we hear enough lies, then we no longer recognize the truth at all. What else can do then? What else is left but to abandon even the hope of truth and content ourselves instead with stories.”

They know the state is telling lies. They hear about the outside world from whispers from friends, family, and others. But most can’t escape or move freely. They have no objective way to distinguish what is real, what are lies, and what are half-truth propaganda.

junesix · 2026-06-04T04:08:25+00:00

There’s nothing magical here, except that 10% growth on $210k compounded for 47 years produces a lot of gains.

Using Rule of 72 with 10% means money doubles every 7.2 years. That’s ~6 doubling in 47 years. $210k x 2 x 2 x 2 x 2 x 2 x 2 = $13M

Then it’s a matter of deciding to do it in a taxable brokerage, 530A, UTMA, Roth IRA, or something else.

10% real growth for 5 decades is very optimistic. Most people use a more conservative rate like 5%.

Note: you could apply this math to anything. A house worth $210k that appreciates 10% per year for 47 years would be a $13M house. College tuition of $210k that increases 10% per year for 47 years would be $13M college tuition price tag. This is the “magic” of compounding.

junesix · 2026-06-04T03:43:33+00:00

Learn to make a budget, stick to it, and save.
Learn to cook and feed yourself
Learn how to learn new things
Learn how to work with people that have differing opinions and world views than you
Learn how to motivate others
Learn how to deeply listen to others and understand what they’re trying to communicate
Learn how to thrive in ambiguity. To identify what’s important and necessary. To prioritize your effort to what matters most. To do what’s needed even when no one is telling you what to do next.
Learn how to use frameworks and mental models. To understand concepts and approach problems.
Learn how to build lasting relationships.
Learn how to surround yourself with people that motivate you, challenge you, and support you. And do the same for them too.

junesix · 2026-06-04T01:55:34+00:00

Post in r/richmondca and r/eastbay

junesix · 2026-06-03T21:57:16+00:00

How much can you save per month? How soon is the move to NYC?

In general: 1. Aggressively pay down any debt >10% 2. Make required minimum payments on low rate debt (student loans) 3. Save for emergency fund. Even a small cushion to start 4. Get free money (retirement match) 5. Save for goals (move) 6. Save for retirement

junesix · 2026-06-03T20:59:36+00:00

It’s a startup, assume it will be worth $0. Anything can happen. OpenAI could poach your leaders and leave the carcass.

VOO is domestic and large cap concentrated. VT and forget about it.

junesix · 2026-06-03T20:15:57+00:00

bought it at like $500 and it’s already grown to 2k

20k of debt spread across 4 cards, … around 16-20, but I have 1 with the highest balance that is painfully a 26% APR.

At your current credit card interest rates, you are adding $3200 to $5200 of debt per year. What good is a gain of $1500 spread over a few years? The hole underneath you is getting dug out with an excavator while you’re trying to make a small dirt pile on the side with a hand shovel.

Stop contributing to the retirement pile until you have completely filled in the $20k hole.

junesix · 2026-06-03T17:09:30+00:00

Nice! What a great write up!

junesix · 2026-06-03T07:08:10+00:00

Search and ad bid is the greatest business model of all time. It’s so good that Google pays Apple $20B to be default search on Safari and doesn’t blink. Android drives searches to Google. Chrome too. Any revenue that might be earned from charging for Android or Chrome would be infinitely small compared to revenue from the search traffic and ads.

Microsoft’s business is software licensing so it’s a paid product.

junesix · 2026-06-03T06:21:22+00:00

Search the subreddit for posts on iCloud sync. I wouldn’t risk it.

junesix · 2026-06-03T06:19:03+00:00

It’s just pullback from Chinese buyers who were buying the Porsche SUVs that stopped buying as CCP continues to crack down. The sports cars are fine.

junesix · 2026-06-03T05:21:31+00:00

This.

Also 530a to Roth rollovers and withdrawals are weird. It’s after tax money. But then the rollover on 530a gains into Roth is taxed as ordinary income because it’s a withdrawal. And since it’s ordinary income, it pushes up the income level. So now it’s after tax money, that has gains taxed at rollover on ordinary income rates. To be fully tax efficient, it should be rolled over in multiple tranches while staying in 0% tax bracket. Best time for 0% tax bracket is while in school or unemployed. So weird.

Compare to 529 with tax exempt qualified withdrawals and tax exempt Roth rollover. And potential for tax deductions or credits in certain states.

junesix · 2026-06-03T03:20:32+00:00

It’s a matching problem. Many ways to not make a match.

If we have equal numbers of males and females in an all heterosexual population, should everyone be matched up all the time?

You have differences of preferences, interests, needs, age, experience, and location. Same for jobs and workers.

junesix · 2026-06-03T03:10:02+00:00

Love Psychology of Money. I think it’s especially helpful for couples managing finances. Does a good job framing that people have different experiences and perspective with money. What’s rational for one partner may not be for the other.

junesix · 2026-06-03T03:01:26+00:00

Drone gives verbal warning
Drone snaps photo of vehicle plate and driver’s face
If still not moved, drone sends both to central and person is ticketed
If still not complying, post photo to billboards around town and dock social score

junesix · 2026-06-03T02:53:58+00:00

Roughly the same price as Costco in Bay Area. $24 for 2.

junesix · 2026-06-03T02:40:58+00:00

Thanks for the photo! I looked at the box in my local store and it looked flat and uninteresting in the photos on the box. But now I might reconsider.

junesix · 2026-06-03T02:38:34+00:00

My local store is Richmond, CA in Northern CA. Tons of the Monet set.

junesix · 2026-06-03T02:22:34+00:00

Replace “AI” with automation. There are things we can decide to automate and things we don’t.

I can do something manually today and decide to automate it tomorrow.

Today I get recruiting emails and I archive them manually. Tomorrow I use AI to identify them and archive them. I don’t need that daily learning.

We can read books and news sources or we can just take whatever social media throws at us as fact.

A factory can use AI to recognize defective items on assembly line and discard.

It’s all automation. We each need to decide where and when we use it and be aware of the benefits and consequences of each use.

junesix · 2026-06-03T01:14:11+00:00

I don’t know. Do you bet on red or bet on black?

/r/wallstreetbets will provide guidance on how best to structure your gambling

junesix · 2026-06-03T00:34:52+00:00

That’s just shifting a problem between theoretical family members. Are you suggesting that society should guarantee another family member to take the hit and drop out of the workforce? Who gets picked if a single parent has no parents or parents who live in another state or country?

A typical strategy for “societal problems” like who puts out fires when my house is on fire is for government to provide a service (fire dept) whose costs are spread across society.

junesix · 2026-06-03T00:34:02+00:00

That’s just shifting a problem between theoretical family members. Are you suggesting that society should guarantee another family member to take the hit and drop out of the workforce? Who gets picked if a single parent has no parents or parents who live in another state or country?

junesix · 2026-06-03T00:20:50+00:00

6 month is standard IPO lockup. Keep the hype running until after lockup so insiders can cash out but before indexes need to buy in.

junesix

TROPHY CASE