STQ

Why We’re Investing in AI Companies Through IRAs.

Anthropic. OpenAI. SpaceX. The companies defining the next decade of tech are private. By broadening our opportunity set with private companies like these, we can build more diversified portfolios – and place them in accounts where the gains compound for decades, untouched by the IRS.

Alternative Investments
AG
Founder, STQ Capital
5 min read

The companies defining the next decade of technology are private. Anthropic, OpenAI, SpaceX – and thousands of other high-growth businesses across AI, infrastructure, healthcare, and energy. The public markets represent a shrinking slice of the global opportunity set. A portfolio built entirely on public securities is, by definition, missing a significant portion of where wealth is being created.

By adding private investments to our portfolios, we’re not trying to chase returns. It’s about building a more complete portfolio – one that participates in parts of the economy that public markets simply don’t reach.

The Wrapper

Private investments may generate significant tax complexity. K-1s instead of 1099s. Ordinary income mixed with capital gains. Phantom income – gains you owe taxes on even if you received no distribution. That complexity can erode a significant portion of every dollar of gain before you ever see it.

The Roth IRA eliminates all of it: no K-1 headaches, no ordinary income treatment, no phantom income. The gains compound for decades, untouched by the IRS.

At STQ, we add private alternative investments to client portfolios to broaden diversification – and we place them deliberately inside Roth IRAs so the tax treatment works in your favor. The goal is a more complete portfolio, structured the right way.

Want to understand whether private AI exposure belongs in your portfolio – and how to structure it correctly?

Request a Portfolio Diagnostic