July 17, 2019

The Naval Podcast – Pre-Tax Compounding Beats Post-Tax Compounding

Check out Naval’s Episode Page & Show Not e s

This podcast clip is part of a conversation between Naval Ravikant and Babak Nivi. Unless otherwise noted, quotes are from Naval. For reference, check out Naval’s famous How to Get Rich tweet storm.

Key Takeaways

Compound interest can be an extremely powerful force – this point has been beaten to death
In the financial realm, pre-tax compounding is very powerful compared to post-tax compounding
- The compounding that results from paying taxes every year is much less than the compounding that results from paying taxes just one time at the end
- A Roth IRA is set up so you pay taxes once before putting your money into the fund (and you never have to pay taxes ever again) – it just keeps compounding

business, compound interest, compounding, naval, naval ravikant, startup, wealth
Notes By MMiller

The Naval Podcast – Pre-Tax Compounding Beats Post-Tax Compounding

Key Takeaways

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