My First Million
The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.
There is no sustainable investment alpha for most people - tax optimization creates better risk-adjusted returns than trying to beat the market
The Reasoning
Market efficiency makes consistent outperformance extremely difficult, while tax optimization provides guaranteed returns with lower risk and complexity
What Needs to Be True
- Markets remain reasonably efficient
- Tax optimization strategies remain legal and accessible
- Individual investors lack resources/time to compete with institutional players
- Tax rates remain meaningful percentage of total returns
Counterargument
Some individuals and funds do consistently beat markets through skill, information advantages, or market inefficiencies, especially in less efficient markets
What Would Change This View
Evidence of accessible strategies that consistently beat market after accounting for taxes, fees, and time investment
Implications for Builders
Build tax optimization tools rather than stock picking platforms
Focus on guaranteed savings rather than uncertain returns
Create products that help people implement simple indexing + tax efficiency
Partner with tax professionals rather than trying to replace financial advisors
Example Application
“Instead of launching another robo-advisor promising market-beating returns, build a platform that optimizes asset location, tax-loss harvesting, and retirement account contributions for guaranteed tax savings.”
Related Knowledge
Tax Code Business Owner Advantage Framework
The US tax system is intentionally structured to provide significantly more tax reduction opportunities for business owners and real estate investors compared to W2 employees.
Four-Component Happiness Framework
A systematic approach to happiness based on four core environmental and behavioral components that drive well-being.
Maximize tax-free gains on startup exit beyond the standard $10M QSBS limit
$30M+ in tax-free gains instead of $10M limit through strategic distribution to family members and trusts
Find and manage a proactive tax professional who provides strategic value year-round
Quarterly strategic tax planning sessions, proactive recommendations, and significant annual tax savings that exceed pro
Money as Freedom From vs Freedom To
True financial freedom means money no longer controls your decisions, rather than simply being able to buy anything you
The US tax system intentionally favors business owners and real estate investors
Anyone optimizing for wealth should seriously consider business ownership over employment