Introduction
Renowned author Robert Kiyosaki, best known for his book Rich Dad Poor Dad, has recently provided a comprehensive breakdown of Rich Dad's first lesson. This lesson emphasizes the significance of preserving tangible assets, such as gold, silver, and bitcoin, to achieve lifelong financial security and freedom. In this article, we will delve into Kiyosaki's explanation and explore the core concepts of this lesson.
Understanding Rich Dad's Lesson One
Rich Dad's Lesson #1, according to Kiyosaki, revolves around the idea that the rich do not work for money. Instead, they focus on acquiring assets that generate real tax-free income. Kiyosaki highlights the fact that wealth is often eroded by taxes, inflation, and the volatile nature of the stock market. Therefore, the rich prioritize investments in cash flow assets, such as rental properties, oil, and food production, which provide a consistent source of income.
The Role of Tangible Assets
Unlike the poor and middle class, who rely on jobs and paper assets, the rich understand the value of tangible assets. Kiyosaki emphasizes the importance of saving real assets like gold, silver, and bitcoin, which offer long-term financial security and freedom. These assets are not subject to the same risks as fake paper money and can act as a hedge against economic uncertainties.
Kiyosaki's Insights on the Poor and Middle Class
Kiyosaki also sheds light on why the poor and middle class tend to become poorer. He explains that their focus on job security and taxable income limits their financial growth. Additionally, their tendency to save and invest in traditional paper assets, such as stocks, bonds, mutual funds, and exchange-traded funds (ETFs), exposes them to market volatility and potential losses.
Kiyosaki's Forecasts and Recommendations
Over the years, Kiyosaki has consistently recommended investments in gold, silver, and bitcoin. He has made several forecasts regarding the prices of these assets. Notably, he recently projected that BTC could reach $135,000, while gold is expected to experience significant growth. In the event of a global economic crisis, Kiyosaki believes that bitcoin's price could surge to $1 million, with gold reaching $75,000 and silver climbing to $60,000.
The Future of Cryptocurrency and Fiat Money
Kiyosaki expresses his belief in the future of cryptocurrency, asserting that fiat money is essentially "fake money." In his view, gold and silver represent "God's money," while bitcoin is considered "people's money." He warns about the potential crash in real estate, stocks, and bonds and cautions that the Federal Reserve's decision to raise interest rates could have a detrimental impact on the U.S. dollar.
Kiyosaki's Investment Strategy
Kiyosaki recently revealed an investment allocation aimed at helping investors navigate what he predicts to be the "greatest crash in world history." He emphasizes that his strategy is not an attempt to replicate Warren Buffett's approach as the CEO of Berkshire Hathaway.
Conclusion
Robert Kiyosaki's breakdown of Rich Dad's lesson number one provides valuable insights into the mindset and strategies of the rich. By prioritizing tangible assets and understanding the risks associated with traditional paper assets, individuals can strive for lifelong financial security and freedom. As always, it is essential to conduct thorough research and seek professional advice before making any investment decisions.
What are your thoughts on Rich Dad's lesson one and Robert Kiyosaki's belief in the role of bitcoin for lifelong financial security and freedom? Share your opinions in the comments below.
Frequently Asked Questions
How can you withdraw from an IRA of Precious Metals?
First, you must decide if you wish to withdraw money from your IRA account. You should also ensure that you have enough money to cover any fees and penalties associated with withdrawing funds.
You should open a taxable brokerage account if you're willing to pay a penalty if you withdraw early. This option is also available if you are willing to pay taxes on the amount you withdraw.
Next, you'll need to figure out how much money you will take out of your IRA. This calculation is dependent on several factors like your age when you take the money out, how long you have had the account, and whether or not your plan to continue contributing.
Once you have an idea of the amount of your total savings you wish to convert into cash you will need to decide what type of IRA you want. Traditional IRAs permit you to withdraw your funds tax-free once you turn 59 1/2. Roth IRAs have income taxes upfront, but you can access the earnings later on without paying additional taxes.
Once these calculations have been completed you will need to open an account with a brokerage. Brokers often offer promotional offers and signup bonuses to encourage people into opening accounts. It is better to open an account with a debit than a creditcard in order to avoid any unnecessary fees.
When you do finally decide to withdraw from your precious metallic IRA, you will need a safe space where you can safely store your coins. Some storage facilities will take bullion bars while others require you only to purchase individual coins. Either way, you'll need to weigh the pros and cons of each before choosing one.
Because you don't have to store individual coins, bullion bars take up less space than other items. But, each coin must be counted separately. You can track their value by keeping individual coins.
Some prefer to keep their money in a vault. Others prefer to store their coins in a vault. Whichever method you choose, make sure you store your bullion safely so you can enjoy its benefits for years to come.
How is gold taxed within a Roth IRA
A tax assessment for an investment account will be based on the current market value, and not what you paid initially. All gains, even if you have invested $1,000 in a mutual funds stock, are subject to tax.
The money can be withdrawn tax-free if it's deposited in a traditional IRA (or 401(k)). Capital gains and dividends earn you no tax. This applies only to investments made for longer than one-year.
The rules that govern these accounts differ from one state to the next. Maryland's rules require that withdrawals be taken within 60 days after you turn 59 1/2. In Massachusetts, you can wait until April 1st. New York offers a waiting period of up to 70 1/2 years. You should plan and take distributions early enough to cover all retirement savings expenses to avoid penalties.
How much of your IRA should include precious metals?
You should remember that precious metals are not only for the wealthy. You don't have to be rich to invest in them. There are many ways to make money on silver and gold investments without spending too much.
You may consider buying physical coins such as bullion bars or rounds. Also, you could buy shares in companies producing precious metals. Another option is to make use of the IRA rollover programs offered by your retirement plan provider.
You will still reap the benefits of owning precious metals, regardless of which option you choose. These metals are not stocks, but they can still provide long-term growth.
Their prices rise with time, which is a different to traditional investments. This means that if you decide on selling your investment later, you'll likely get more profit than you would with traditional investing.
What are the pros & cons of a Gold IRA?
The main advantage of an Individual Retirement Account (IRA) over a regular savings account is that you don't have to pay taxes on any interest earned. This makes an IRA great for people who want to save money but don't want to pay tax on the interest they earn. However, there are disadvantages to this type investment.
You could lose all of your accumulated money if you take out too much from your IRA. Also, the IRS may not allow you to make withdrawals from your IRA until you're 59 1/2 years old. A penalty fee will be charged if you decide to withdraw funds.
You will also need to pay fees for managing your IRA. Many banks charge between 0.5%-2.0% per year. Other providers charge monthly management charges ranging anywhere from $10 to $50.
If you prefer to keep your money outside a bank, you'll need to purchase insurance. In order to make a claim, most insurers will require that you have a minimum amount in gold. You may be required by some insurers to purchase insurance that covers losses as high as $500,000.
If you decide to open a gold IRA, it is important to know how much you can use. Some providers limit how many ounces you can keep. Others allow you the freedom to choose your own weight.
It is also up to you to decide whether you want to purchase physical gold or futures. Physical gold is more costly than gold futures. Futures contracts offer flexibility for buying gold. You can set up futures contracts with a fixed expiration date.
It is also important to choose the type of insurance coverage that you need. The standard policy does NOT include theft protection and loss due to fire or flood. However, it does cover damage caused by natural disasters. If you live in a high-risk area, you may want to add additional coverage.
You should also consider the cost of storage for your gold. Insurance doesn't cover storage costs. Safekeeping costs can be as high as $25-40 per month at most banks.
If you decide to open a gold IRA, you must first contact a qualified custodian. A custodian is responsible for keeping track of your investments. They also ensure that you adhere to federal regulations. Custodians can't sell assets. Instead, they must hold them as long as you request.
After you have decided on the type of IRA that best suits you, you will need to complete paperwork detailing your goals. You should also include information about your desired investments, such as stocks or bonds, mutual funds, real estate, and mutual funds. The plan should also include information about how much you are willing to invest each month.
After completing the forms, send them along with a check or a small deposit to your chosen provider. The company will then review your application and mail you a letter of confirmation.
You should consult a financial planner before opening a Gold IRA. A financial planner can help you decide the type of IRA that is right for your needs. They can also help reduce your costs by suggesting cheaper options for purchasing insurance.
Statistics
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
External Links
law.cornell.edu
- 7 U.S. Code SS7 – Designation of boards for trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement accounts
forbes.com
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
bbb.org
irs.gov
How To
The best place to buy silver or gold online
Understanding how gold works is essential before you buy it. Gold is a precious metal similar to platinum. It's very rare and is used as money because of its durability and resistance to corrosion. It is difficult to use so people prefer to buy jewelry made from it to gold bars.
There are two types currently available: legal tender and bullion. The legal tender coins are issued for circulation in a country. They usually have denominations such as $1, $5, $10, and so on.
Bullion coins can only be used as investment currency. They increase in value due to inflation.
They can't be exchanged in currency exchange systems. For example, if a person buys $100 worth of gold, he/she gets 100 grams of gold with a value of $100. Each dollar spent by the buyer is worth 1 gram.
Next, you need to find out where to buy gold. There are several options available if your goal is to purchase gold from a dealer. First, your local currency shop is a good place to start. You could also look into eBay or other reputable websites. You might also consider buying gold from an online private seller.
Individuals selling gold at wholesale prices and retail prices are known as private sellers. Private sellers charge a 10% to 15% commission per transaction. You would receive less money from a private buyer than you would from a coin store or eBay. This option can be a good choice for investing in gold because it allows you to control the price.
Another way to buy gold is by investing in physical gold. It is easier to store physical gold than paper certificates. But, you still have to take care of it. To ensure that your physical gold remains safe, you need to secure it in an impenetrable container such as a vault or safety deposit box.
A bank or pawnshop can help you buy gold. A bank will be able to provide you with a loan for the amount of money you want to invest in gold. Pawnshops are small establishments allowing customers to borrow money against items they bring. Banks tend to charge higher interest rates, while pawnshops are typically lower.
Another way to purchase gold is to ask another person to do it. Selling gold can be as easy as selling. A company such as GoldMoney.com can help you set up a simple bank account and get paid immediately.
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By: Kevin Helms
Title: Robert Kiyosaki Breaks Down Rich Dad’s Lesson One: The Importance of Tangible Assets for Lifelong Financial Security
Sourced From: news.bitcoin.com/robert-kiyosaki-breaks-down-rich-dads-first-lesson-says-bitcoin-provides-lifelong-financial-security-and-freedom/
Published Date: Sun, 05 Nov 2023 00:30:46 +0000
