Personal Finance

Peter Thiel's Incredible Advice for Anyone Looking to Grow Their Retirement Portfolio

Ian Cooper

Published: March 19, 2025 5:20 am

At 57, Peter Thiel – who is now worth about $17 billion — knows a thing or two about success.

He successfully co-founded PayPal, Palantir Technologies, and even invested early in Facebook. But he’s not just known for his solid contributions to technology. He’s also well known for his highly effective approach to financial planning. His Roth IRA strategy saw him build $1 billion in the tax-advantaged account.

The billionaire has also invested in the Founder’s Fund, which has invested in OpenAI, Striple, SpaceX, Anduril, Rippling, Scale, Boring Co., Mercor, Cognition AI, and many more.

Key Points About This Article 

• At 57, Peter Thiel – now worth about $17 billion — knows a thing or two about success.
• He successfully co-founded PayPal, Palantir Technologies, and even invested early in Facebook. But he’s not just known for his solid contributions to technology. He’s also well known for his highly effective approach to financial planning.
• Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; get started by clicking here here.(Sponsor)

Portfolio Diversification is Key

With his Roth IRA, Thiel diversified, being sure not to put all of his eggs in one basket. He mixed up his holdings with stocks and bonds, including alternative investments along the way.  Thiel also focused on higher-growth opportunities that had substantial opportunities with a concentration on emerging technologies and innovative companies.

The multi-billionaire also included private equity investments, such as startups or ventures that aren’t publicly traded. When and if some of the private companies did go public, he saw some incredible returns along the way. Look at AbCellera Biologics, where he was the financial backer and director until 2024, for example.

And he made sure to review his Roth IRA holdings, adjusting when needed. That allowed him to capitalize on opportunities, rebalance, and even change course with the market.

So, how can you build a portfolio like Thiel’s?

“When it comes to Peter Thiel’s Roth IRA, the secret is that there’s no secret. Thiel grew his Roth IRA in much the same way as anybody else. He invested in his portfolio and used the money to buy shares of stock that he thought would do well. The difference is just that Thiel had access to both information and assets that the average investor does not, which allowed him to invest early in companies that would later grow exponentially in value,” says SmartAsset.com.

A good deal of his $1 billion Roth IRA riches is believed to have come from one stock – PayPal.

While it may be too late to build a $1 billion portfolio just using PayPal these days, look to emerging tech stocks, small caps, micro-caps, and even stocks with little analyst interest. What you want to do is find “moonshot” opportunities that can deliver monster returns of 100 to 200 times over. They do exist. It just takes some work.

In addition, pay attention to compounding returns. You can even include convertible assets in your portfolio, such as convertible bonds, which can offer flexibility to your portfolio. Again, diversify your portfolio across different asset classes. Diversification helps spread risk and reduces the impact of volatile events in any single investment.

Also, be sure to consult with a financial advisor.