Eric Trump, Executive Vice President of the Trump Organization and son of President-elect Donald Trump, recently shared his insights on Bitcoin during an exclusive interview with Frank Corva, Business-to-Business Correspondent for Bitcoin Magazine, at the Bitcoin MENA 2024 Conference. Trump emphasized Bitcoin's transformative potential, drawing parallels to real estate, a core element of his family's business, and highlighting its unique benefits as a hedge for traditional investors.
Transition from Real Estate to Bitcoin
Being a self-proclaimed "bricks-and-mortar guy," Trump emphasized his family's deep-rooted connection to real estate. Despite appreciating the tangible nature and energy of real estate, he acknowledged its limitations such as illiquidity and vulnerability to global market shifts.
Trump noted the extended timelines associated with selling physical assets like hotels, highlighting real estate's primary drawback of being illiquid.
He views Bitcoin as a revolutionary alternative due to its instantaneous liquidity, making it an ideal hedge to real estate.
Bitcoin's Portability and Accessibility
Trump discussed Bitcoin's transportability compared to real estate, emphasizing its digital and global nature, unlike physical properties that are fixed in location.
He praised Bitcoin for its ability to eliminate intermediaries and reduce transaction costs, highlighting the absence of risks related to physical damage that real estate properties face.
Democratizing Investment Opportunities
Besides its technical advantages, Trump emphasized Bitcoin's role in democratizing wealth-building opportunities by providing accessible entry points for individuals with limited resources.
He pointed out that real estate investments often demand substantial capital and expertise, making them out of reach for many, whereas Bitcoin offers an asset with historically higher returns and lower entry barriers.
Trump sees Bitcoin as empowering individuals in developing countries, offering them a chance to invest, succeed, and potentially transform their lives.
Bitcoin: Shaping the Path to Homeownership
Eric Trump's perspective on Bitcoin as a hedge for real estate investors adds to the ongoing discussion on how Bitcoin could revolutionize the journey to homeownership, especially for younger generations facing challenges in traditional housing markets.
By offering a tangible pathway to homeownership, Bitcoin may provide a solution for those struggling with rising housing prices, potentially reshaping the real estate landscape.
"Embracing the Future"
Trump firmly believes in Bitcoin's future as a long-term investment strategy, stating that those who embrace it early will succeed while others risk being left behind.
His insights align with the growing recognition of Bitcoin as a hedge against traditional assets, offering liquidity, accessibility, and global adaptability to investors in various sectors.
This interview reflects the increasing interest in Bitcoin among influential individuals, signaling its evolution from a speculative asset to a key component of modern investment portfolios.
Watch the Bitcoin MENA 2024 Conference Day 2 Livestream, featuring prominent figures from the Bitcoin industry in the Middle East, North Africa, and beyond, driving the global adoption of Bitcoin to new heights!
Frequently Asked Questions
How can you withdraw from an IRA of Precious Metals?
You first need to decide if you want to withdraw money from an IRA account. You should also ensure that you have enough money to cover any fees and penalties associated with withdrawing funds.
Consider opening a taxable brokerage instead of an IRA if it is possible to pay a penalty if your withdrawal is made before the deadline. If you decide to go with this option, you will need to take into account the taxes due on the amount you withdraw.
Next, figure out how much money will be taken out of your IRA. This calculation depends on several factors, including the age when you withdraw the money, how long you've owned the account, and whether you intend to continue contributing to your retirement plan.
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. While traditional IRAs are tax-free, Roth IRAs can be withdrawn at any time after you reach 59 1/2. However, Roth IRAs will charge income taxes upfront and allow you to access your earnings later without additional taxes.
Once these calculations have been completed you will need to open an account with a brokerage. Most brokers offer free signup bonuses and other promotions to entice people to open accounts. To avoid unnecessary fees, however, try opening an account using a debit card rather than a credit card.
When it's time to make withdrawals from your precious-metal IRA, you'll need a place to keep your coins safe. While some storage facilities accept bullion bars and others require that you purchase individual coins, others will allow you to store your coins in their own safe. Before you choose one, weigh the pros and cons.
For example, storing bullion bars requires less space because you aren't dealing with individual coins. But you will have to count each coin separately. On the flip side, storing individual coins allows you to easily track their value.
Some people like to keep their coins in vaults. Others prefer to store them in a safe deposit box. Whatever method you choose to store your bullion, you should ensure it is safe and secure so you can enjoy its many benefits for many years.
Is gold a good investment IRA option?
If you are looking for a way to save money, gold is a great investment. You can also diversify your portfolio by investing in gold. But there is more to gold than meets the eye.
It has been used throughout history as currency and it is still a very popular method of payment. It is often called “the most ancient currency in the universe.”
Gold, unlike other paper currencies created by governments is mined directly from the earth. That makes it very valuable because it's rare and hard to create.
The supply and demand for gold determine the price of gold. When the economy is strong, people tend to spend more money, which means fewer people mine gold. The value of gold rises as a consequence.
The flip side is that people tend to save money when the economy slows. This increases the production of gold, which in turn drives down its value.
This is why gold investment makes sense for both individuals and businesses. If you make an investment in gold, you can reap the economic benefits whenever the economy is growing.
Your investments will also generate interest, which can help you increase your wealth. You won't lose your money if gold prices drop.
What amount should I invest in my Roth IRA?
Roth IRAs can be used to save taxes on your retirement funds. 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 deposit amount originally made) is not transferable. No matter how much money you contribute, you cannot take out more than was originally deposited to the account. If you are able to take out more that what you have initially contributed, you must pay taxes.
The second rule states that income taxes must be paid before you can withdraw earnings. So, when you withdraw, you'll pay taxes on those earnings. Let's suppose that you contribute $5,000 annually to your Roth IRA. Let's say you earn $10,000 each year after contributing. On the earnings, you would be responsible for $3,500 federal income taxes. So you would only have $6,500 left. The amount you can withdraw is limited to the original contribution.
So, if you were to take out $4,000 of your earnings, you'd still owe taxes on the remaining $1,500. In addition, 50% of your earnings will be subject to tax again (half of 40%). So even though you received $7,000 in Roth IRA contributions, you only received $4,000.
There are two types if Roth IRAs, Roth and Traditional. Traditional IRAs allow for pre-tax deductions from your taxable earnings. You can withdraw your contributions plus interest from your traditional IRA when you retire. You have the option to withdraw any amount from a traditional IRA.
Roth IRAs do not allow you to deduct your contributions. You can withdraw your entire contribution, plus accrued interests, after you retire. There is no minimum withdrawal requirement, unlike traditional IRAs. You don't need to wait until your 70 1/2 year old age before you can withdraw your contribution.
Is the government allowed to take your gold
Your gold is yours and the government cannot take it. It is yours because you worked hard for it. It belongs entirely to you. This rule could be broken by exceptions. For example, if you were convicted of a crime involving fraud against the federal government, you can lose your gold. You can also lose precious metals if you owe taxes. However, even if taxes are not paid, gold is still your property.
Who holds the gold in a gold IRA?
The IRS considers any individual who holds gold “a form of income” that is subject to taxation.
You must have at least $10,000 in gold and keep it for at most five years to qualify for this tax-free status.
Gold can be used to protect against inflation and price volatility. However, it is not a good idea to own gold if you don't intend to use it.
If you are planning to sell your gold someday, it is necessary that you report its value. This can affect the capital gains taxes that you owe when cashing in on investments.
It is a good idea to consult an accountant or financial planner to learn more about your options.
How does gold perform as an investment?
Gold's price fluctuates depending on the supply and demand. Interest rates are also a factor.
Due to the limited supply of gold, prices for gold are highly volatile. Physical gold is not always in stock.
What are the benefits to having a gold IRA
The best way to save money for retirement is to place it in an Individual Retirement Account. It will be tax-deferred up until the time you withdraw it. You have complete control over how much you take out each year. There are many types and types of IRAs. Some are better for those who want to save money for college. Some are for investors who seek higher returns. Roth IRAs, for example, allow people to contribute after they turn 59 1/2. They also pay taxes on any earnings when they retire. However, once they begin withdrawing funds, these earnings are not taxed again. This type account may make sense if it is your intention to retire early.
Because you can invest money in many asset classes, a gold IRA works similarly to other IRAs. Unlike a regular IRA that requires you to pay taxes on the gains you make while you wait to access them, a gold IRA does not have to do this. For people who would rather invest than spend their money, gold IRA accounts are a good option.
Another advantage to owning gold via an IRA is the ease of automatic withdraws. This means that you don't need to worry about making monthly deposits. You could also set up direct debits to never miss a payment.
Finally, gold is one of the safest investment choices available today. Because it isn't tied to any particular country its value tends be steady. Even in times of economic turmoil gold prices tend to remain stable. It is therefore a great choice for protecting your savings against inflation.
Statistics
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (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)
External Links
bbb.org
finance.yahoo.com
forbes.com
- Gold IRA: Add some sparkle to your retirement nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
cftc.gov
How To
The History of Gold as an Asset
Gold was a currency from ancient times until the early 20th century. It was popular because of its purity, divisibility. uniformity. scarcity and beauty. It was also traded internationally due to its high value. Because there were no internationally recognized standards for measuring and weighing gold, the different weights of this metal could be used worldwide. For example, in England, one pound sterling was equal to 24 carats of silver; in France, one livre tournois was equal to 25 carats of gold; in Germany, one mark was equal to 28 carats of gold; etc.
In the 1860s the United States began issuing American currency made up 90% copper (10% zinc) and 0.942 gold (0.942 pure). This led to a decline in demand for foreign currencies, which caused their price to increase. The price of gold dropped because the United States began to mint large quantities of gold coins. Because the U.S. government had too much money coming into circulation, they needed to find a way to pay off some debt. They sold some of their excess gold to Europe to pay off the debt.
Since most European countries were not confident in the U.S. dollar they began accepting gold as payment. After World War I, however, many European countries started using paper money to replace gold. The price of gold has risen significantly since then. Even though the price of gold fluctuates, it remains one the best investments you can make.
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By: Mark Mason
Title: Eric Trump Discusses Bitcoin as a Hedge for Real Estate Investors
Sourced From: bitcoinmagazine.com/markets/eric-trump-states-bitcoin-is-the-ultimate-hedge-for-real-estate-investors
Published Date: Tue, 10 Dec 2024 22:05:55 GMT
