Australian Dollar Withdrawal Requests
A recent ruling by the Victorian Supreme Court in January has increased the likelihood of Australian creditors of the crypto exchange FTX getting all their money back, a report has said. In his ruling, Judge Patricia Matthews clarified that only those who initiated Australian dollar withdrawal requests — about 747 investors — qualify for full reimbursement.
According to a report in the Australian Financial Review, the $26 million collected by the advisory and investment firm Korda Mentha is sufficient to pay back all the 747 investors. The suggestion that Australian investors are set to be made whole follows reports that FTX has prioritized repaying creditors over reviving the platform.
Waiting for Crypto-to-Crypto Withdrawals
Meanwhile, the Supreme Court judge ruled, however, that Australian investors with crypto-to-crypto withdrawal requests will have to wait for the completion of bankruptcy proceedings in the U.S. FTX lawyer Andrew Dietderich said he is optimistic that all creditors will be made whole.
"There is still a great amount of work, and risk, between us and that result. But we believe the objective is within reach, and we have a strategy to achieve it," Dietderich reportedly told a U.S. judge.
Reimbursements Based on Bankruptcy Filing Prices
In another development, the FTX creditor committee lawyer, Kris Hansen, reportedly emphasized that all reimbursements will be calculated based on prices prevailing at the time of the bankruptcy filing. This stance means that the remarkable surge in the value of cryptocurrencies such as bitcoin (BTC) and Solana (SOL) — which has soared by more than 600% since November 2022 — will not directly translate into higher payouts for creditors.
While this decision has frustrated some creditors, a U.S. judge has ruled that FTX's reimbursement proposal adheres to legal standards and is above board.
What are your thoughts on this story? Let us know what you think in the comments section below.
Frequently Asked Questions
How much should your IRA include precious metals
You should remember that precious metals are not only for the wealthy. They don't require you to be wealthy to invest in them. In fact, there are many ways to make money from gold and silver investments without spending much money.
You might consider purchasing physical coins, such as bullion bars and rounds. You could also buy shares in companies that produce precious metals. Or, you might want to take advantage of an IRA rollover program offered by your retirement plan provider.
You will still reap the benefits of owning precious metals, regardless of which option you choose. They are not stocks but offer long-term growth.
And, unlike traditional investments, their prices tend to rise over time. If you decide to make a sale of your investment in the future, you will likely realize more profit than with traditional investments.
Should You Invest in gold for Retirement?
This will depend on how much money and whether you were able to invest in gold at the time that you started saving. If you're unsure about which option to choose then consider investing in both.
Gold offers potential returns and is therefore a safe investment. It is a good choice for retirees.
Most investments have fixed returns, but gold's volatility is what makes it unique. As a result, its value changes over time.
However, this does not mean that gold should be avoided. It is important to consider the fluctuations when planning your portfolio.
Another benefit of gold is that it's a tangible asset. Unlike stocks and bonds, gold is easier to store. It can also be transported.
You can always access gold as long your place it safe. Additionally, physical gold does not require storage fees.
Investing in gold can help protect against inflation. Gold prices are likely to rise with other commodities so it is a good way of protecting against rising costs.
A portion of your savings can be invested in something that doesn't go down in value. When the stock market drops, gold usually rises instead.
Gold investment has another advantage: You can sell it anytime. Just like stocks, you can liquidate your position whenever you need cash. It doesn't matter if you are retiring.
If you do decide to invest in gold, make sure to diversify your holdings. You shouldn't try to put all of your eggs into one basket.
Also, don't buy too much at once. Start by purchasing a few ounces. Next, add more as required.
Keep in mind that the goal is not to quickly become wealthy. It is to create enough wealth that you no longer have to depend on Social Security.
Gold may not be the most attractive investment, but it could be a great complement to any retirement strategy.
What should I pay into my Roth IRA
Roth IRAs allow you to deposit your money tax-free. The account cannot be withdrawn from until you are 59 1/2. However, if you do decide to take out some of your contributions before then, there are specific rules you must follow. You cannot touch your principal (the amount you originally deposited). This means that regardless of how much you contribute to an account, you cannot take out any more than you initially contributed. If you decide to withdraw more money than what you contributed initially, you will need to pay taxes.
You cannot withhold your earnings from income taxes. Withdrawing your earnings will result in you paying taxes. Let's assume that you contribute $5,000 each year to your Roth IRA. Let's also assume that you make $10,000 per year from your Roth IRA contributions. Federal income taxes would apply to the earnings. You would be responsible for $3500 That leaves you with only $6,500 left. The amount you can withdraw is limited to the original contribution.
The $4,000 you take out of your earnings would be subject to taxes. You'd still owe $1,500 in taxes. You would also lose half of your earnings because they are subject to another 50% tax (half off 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 for you to deduct pretax contributions of your taxable income. You can withdraw your contributions plus interest from your traditional IRA when you retire. You can withdraw as much as you want from a traditional IRA.
Roth IRAs won't let you deduct your contributions. After you have retired, the full amount of your contributions and accrued interest can be withdrawn. Unlike a traditional IRA, there is no minimum withdrawal requirement. You don't have to wait until you turn 70 1/2 years old before withdrawing your contribution.
Who owns the gold in a Gold IRA?
The IRS considers any individual who holds gold “a form of income” that is subject to taxation.
This tax-free status is only available to those who have owned at least $10,000 of gold and have kept it for at minimum five years.
The purchase of gold can protect you from inflation and price volatility. But it's not smart to hold it if your only intention is to use it.
If you plan to sell the gold one day, you will need to report its worth. This will affect how much capital gains tax you owe on cash you have invested.
It is a good idea to consult an accountant or financial planner to learn more about your options.
Can the government seize your gold?
Your gold is yours and the government cannot take it. You worked hard to earn it. It is yours. There may be exceptions to this rule. You could lose your gold if convicted of fraud against a federal government agency. If you owe taxes, your precious metals could be taken away. However, even if taxes are not paid, gold is still your property.
What are the fees associated with an IRA for gold?
The Individual Retirement Account (IRA), fee is $6 per monthly. This fee covers account maintenance fees, as well any investment costs that may be associated with your investments.
If you want to diversify, you may be required to pay extra fees. These fees will vary depending upon the type of IRA chosen. Some companies offer free checking, but charge monthly fees for IRAs.
A majority of providers also charge annual administration fees. These fees range between 0% and 1 percent. The average rate is.25% each year. These rates are usually waived if you use a broker such as TD Ameritrade.
Statistics
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- (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)
- 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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
External Links
investopedia.com
forbes.com
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- Are you interested in keeping gold in your IRA at-home? It's Not Exactly Legal – WSJ
finance.yahoo.com
How To
Investing gold vs. stocks
Investing in gold as an investment vehicle might seem like a very risky proposition these days. This is because most people believe that it is no longer economically profitable to invest gold. This belief is based on the fact that gold prices are being driven down by global economic conditions. People believe that investing in gold would result in them losing money. However, investing in gold can still provide significant benefits. We'll be looking at some of these benefits below.
Gold is the oldest known form of currency. There are records of its use going back thousands of years. People around the world have used it as a store of value. It is still used as a payment method by South Africa and other countries.
It is important to determine the price per Gram that you will pay for gold when making a decision about whether or not to invest. It is important to determine the price per gram you are willing and able to pay for gold bullion. If you don't know your current market rate, you could always contact a local jeweler and ask them what they think the price is.
It is also worth noting that although gold prices have declined recently, the cost of producing gold has increased. Although the price of gold has dropped, production costs have not.
The amount of gold that you are planning to purchase is another important consideration when deciding whether or not gold should be bought. For example, if you only intend to purchase enough to cover your wedding rings, it probably makes sense to hold off on buying any gold. But, if your goal is to make long-term investments in gold, this might be worth considering. Profitable gold can be sold at a lower price than it was when you bought it.
We hope our article has given you a better understanding of gold as an investment tool. It is important to research all options before you make any decision. Only then will you be able to make an informed decision.
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By: Terence Zimwara
Title: Australian Creditors of Crypto Exchange FTX Likely to Get Full Reimbursement
Sourced From: news.bitcoin.com/supreme-court-ruling-bolsters-australian-ftx-creditors-prospects-for-full-recovery/
Published Date: Fri, 02 Feb 2024 21:30:13 +0000
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