Thanksgiving is approaching, and it's time to gather around the dinner table with your loved ones. You might have Bitcoin on your mind due to recent price movements, but discussing it with family members can be tricky.
Avoid Pushing Bitcoin on Family Members
While some may see Thanksgiving as an opportunity to convince family members to invest in Bitcoin, it's essential to approach the topic with caution. Bitcoin's volatility can be unsettling, making it unsuitable for everyone. Trying to persuade relatives, like Auntie Jane, to jump into Bitcoin may not yield positive results.
Guiding Family Members Towards Bitcoin Education
Instead of pushing Bitcoin investment, you can steer family members towards educational resources to help them understand the cryptocurrency better. Here are some platforms you can recommend:
1. Simple Bitcoin
Simple Bitcoin is an educational app that offers information on Bitcoin through easy-to-understand modules. Users receive rewards in sats for passing quizzes, making learning about Bitcoin simple and engaging.
2. Yzer
Yzer delves deeper into Bitcoin's technology and economic philosophy. It provides a comprehensive curriculum and rewards users for quiz completion. This app is ideal for those interested in a more in-depth understanding of Bitcoin.
3. THNDR Games
THNDR allows users to earn Bitcoin by playing games like Solitaire and Snake. Players can accumulate sats while enjoying their favorite games on the go. This platform also teaches users how to use a Lightning wallet.
4. Gemini Credit Card
For family members interested in credit card rewards, the Gemini credit card offers Bitcoin rewards for everyday purchases. With perks like cashback on EV charging, dining out, and groceries, this card is a great way to earn Bitcoin passively.
5. Fold
Fold offers a checking account that rewards users with Bitcoin for making monthly payments. By simply paying bills, users can earn Bitcoin rewards effortlessly. Fold's membership fee is affordable, making it a convenient option for earning Bitcoin.
Remember, it's essential to approach Bitcoin discussions with family members thoughtfully. Instead of overwhelming them with complex information, guide them towards educational resources that can help them navigate the world of Bitcoin at their own pace. Happy Thanksgiving!
Frequently Asked Questions
How is gold taxed in Roth IRA?
Investment accounts are subject to tax based only on their current value and not the amount you originally paid. If you invest $1,000 into a mutual fund, stock, or other investment account, then any gains are subjected tax.
You don’t pay tax if you have the money in a traditional IRA/401k. You pay taxes only on earnings from dividends and capital gains — which apply only to investments held longer than one year.
The rules governing these accounts vary by state. For example, in Maryland, you must take withdrawals within 60 days after reaching age 59 1/2 . Massachusetts allows you up to 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.
What does gold do as an investment?
The supply and the demand for gold determine how much gold is worth. Interest rates can also affect the gold price.
Due to limited supplies, gold prices are subject to volatility. You must also store physical gold somewhere to avoid the risk of it becoming stale.
How much should I contribute to my Roth IRA account?
Roth IRAs are retirement accounts that allow you to withdraw your money tax-free. The account cannot be withdrawn from until you are 59 1/2. You must adhere to certain rules if you are going to withdraw any of your contributions prior. First, your principal (the original deposit amount) cannot be touched. This means that no matter how much you contribute, you can never take out more than what was initially contributed to this account. If you take out more than the initial contribution, you must pay tax.
The second rule says that you cannot withdraw your earnings without paying income tax. Also, taxes will be due on any earnings you take. Let’s take, for example, $5,000 in annual Roth IRA contributions. In addition, let’s assume you earn $10,000 per year after contributing. On the earnings, you would be responsible for $3,500 federal income taxes. So you would only have $6,500 left. Since you’re limited to taking out only what you initially contributed, that’s all you could take out.
You would still owe tax on $1,500 if you took out $4,000 of your earnings. On top of that, you’d lose half of the earnings you had taken out because they would be taxed again at 50% (half of 40%). So, even though you ended up with $7,000 in your Roth IRA, you only got back $4,000.
There are two types if Roth IRAs, Roth and Traditional. A traditional IRA allows you to deduct pre-tax contributions from your taxable income. When you retire, you can use your traditional IRA to withdraw your contribution balance plus interest. There are no restrictions on the amount you can withdraw from a Traditional IRA.
Roth IRAs don’t allow you deduct contributions. But once you’ve retired, you can withdraw the entire contribution amount plus any accrued interest. There is no minimum withdrawal amount, unlike traditional IRAs. Your contribution can be withdrawn at any age, not just when you reach 70 1/2.
Statistics
- (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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- If you take distributions before hitting 59.5, you’ll owe a 10% penalty on the amount withdrawn. (lendedu.com)
External Links
irs.gov
forbes.com
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China’s Evergrande Crisis – Forbes Advisor
wsj.com
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- Do you want to keep your IRA gold at home? It’s Not Exactly Legal – WSJ
finance.yahoo.com
How To
Guidelines for Gold Roth IRA
It is best to start saving early for retirement. As soon as you become eligible, which is usually around age 50, start saving and keep it up throughout your career. It is essential to save enough money each year in order to maintain a steady growth rate.
You can also take advantage of tax-free savings opportunities like a traditional 401k (k), SEP IRA (or SIMPLE IRA). These savings vehicles allow you the freedom to contribute without having to pay tax on your earnings until they are withdrawn. These savings vehicles can be a great option for individuals who don’t qualify for employer matching funds.
The key is to save regularly and consistently over time. If you aren’t contributing the maximum amount permitted, you could miss out on tax benefits.
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By: Frank Corva
Title: How to Discuss Bitcoin During Thanksgiving Dinner
Sourced From: bitcoinmagazine.com/takes/heres-how-to-talk-about-bitcoin-at-the-thanksgiving-table
Published Date: Wed, 27 Nov 2024 14:23:40 GMT
