How Initialized Investor Garry Tan Turned A $300,000 Bet On Coinbase Into A $680 Million ‘Golden Ticket’
On the flip side, real estate can be a great income-generating investment with distributions from rental incomes monthly, quarterly or annually. In contrast, venture capital is highly illiquid, meaning your money is tied up — for a minimum of five years, and more often up to 10 years — with distributions coming from the sale of portfolio companies. This can make eventual income from investments lumpy and unpredictable.
While returns in any type of investment could be uncertain, dealing with taxes every year is a certainty. If you’re considering an investment in an alternative asset like venture capital, there’s no better time to do so than tax season when tax burdens and estate planning are both top of mind.