Roth IRA all in Palantir.
For jokes in high school, I maxed out my IRA on Palantir after doing deep research on their fundamentals and company history, predicting any form of war coming would increase my position incredibly and basically give me FIRE before I turned 30. That and I didnt want to pay taxes on my end position.
My questions are -
Should I exit and find another long term play or stick to Palantir?
Is there a better Roth IRA brokerage then Robinhood? I have gold but still dont feel comfortable using Robin hood.
Is there anyway I can use my gains now or get a bank loan on my account?
Lastly, can i use this as proof of concept for getting a job in finance?
Based on the most helpful WSO content:
Should you exit Palantir or stick to it?
While Palantir has been a popular speculative play, the decision to hold or exit should depend on your investment thesis and risk tolerance. If your research still supports the long-term growth of Palantir and aligns with your financial goals, you might consider holding. However, diversification is key in any portfolio, especially for retirement accounts like a Roth IRA. Concentrating your entire IRA in one stock, no matter how promising, exposes you to significant risk. Consider reallocating to a mix of index funds or ETFs for a more balanced approach.
Better Roth IRA brokerages than Robinhood?
Robinhood has been criticized for its lack of robust research tools and customer support, which are crucial for long-term investors. Platforms like Fidelity, Charles Schwab, and Vanguard are often recommended for Roth IRAs due to their low fees, user-friendly interfaces, and extensive research tools. These platforms also offer a wide range of investment options, including index funds and ETFs, which are ideal for long-term, tax-advantaged accounts.
Using gains now or getting a bank loan on your account?
Roth IRAs are designed for long-term retirement savings, and withdrawing gains before age 59½ typically incurs taxes and a 10% penalty. However, you can withdraw your contributions (not gains) at any time without penalty or taxes. As for loans, you generally cannot use a Roth IRA as collateral for a bank loan. If you need liquidity, consider other options like a personal loan or a margin account (though margin trading carries significant risks).
Using this as proof of concept for a finance job?
Demonstrating a well-researched and successful investment strategy can be a great talking point in interviews, especially if you can articulate your thesis, research process, and risk management approach. However, finance roles often value broader skills like financial modeling, market analysis, and teamwork. Consider supplementing your experience with certifications (e.g., CFA, WSO courses) or internships to strengthen your resume.
If you're serious about a career in finance, platforms like the WSO Academy or WSO Mock Interviews can help you prepare for interviews and build the necessary skills.
Sources: Best Roth IRA Platforms?, YOLOing My Roth IRA, Homer Parkhill to leave Rothschild for Guggenheim. Thoughts?, Thoughts on Investor Relations? A good or bad move?, Thoughts on Thoma Bravo, TPG Tech, KKR TMT, Silver Lake, other tech PE funds
Lol show us how much you got
I would diversify away, don’t you think they’re fully valued now?
Their PE is 400 bro, they make $0.10 a quarter. Great trade for you, congrats. If you still have strong conviction, can trim 2/3 the position and lock in profit and reinvest the gains elsewhere. Let the other 1/3 ride for a bit?
"Never seen a man go broke taking a profit."
Schwab > Robinhood
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