Franklin Templeton Recognizes the Potential of Crypto
Franklin Templeton, a prominent investment management firm with $1.5 trillion in assets, is set to expand its presence in the cryptocurrency market. Sandy Kaul, the Head of Digital Assets at Franklin Templeton, expects an increase in filings following the recent approval of 11 new spot bitcoin exchange-traded funds. Kaul emphasizes that the firm recognizes the immense potential of the entire crypto domain.
Expanding Crypto Horizons: Ethereum and Solana
Franklin Templeton recently took to social media to discuss the significance of ethereum (ETH) and solana (SOL) in the crypto and blockchain technology space. The company has also launched its spot bitcoin exchange-traded fund (ETF), which currently manages 1,160 BTC worth approximately $47 million. In an interview with Bloomberg, Sandy Kaul stated that Franklin Templeton expects to file more exchange-traded product (ETP) offerings in the future.
Kaul further explains, "There are many coins with large market caps, and why just stop with just bitcoin? Ethereum is another asset in the crypto domain that offers a slightly different value proposition than bitcoin because it's more of an app development platform and fosters its own ecosystem. So that's a slightly different investment proposition than bitcoin."
Highlighting the importance of diversification, Kaul mentions, "In all portfolio theory, it is better to have multiple assets in a portfolio rather than a single-asset portfolio. So it would not be reasonable to expect that bitcoin is going to be the only asset that moves into vehicles that make it easier for investors to put money into this space."
Bitcoin: A Digital Commodity with Scarcity
When asked about bitcoin's categorization, Kaul draws parallels to gold, stating, "I think there's some truth to that because there's this digital scarcity programmed into Bitcoin where you only get 21 million coins ever going to be created. And you can track every one of those coins through a decentralized process, so no one can control that supply. So I think there's some good analogies that can be drawn to the gold situation."
Addressing bitcoin's volatility, Kaul compares it to the commodities market, saying, "I think that the volatility that you see in bitcoin markets is often similar to the volatility that you will see in commodity markets. Responsible trading firms like Franklin Templeton know how to handle that type of volatility, and we get into these markets every day on behalf of our investors. I think that this is a great opportunity for them and there's a lot they can relate to with this investment, even if they don't understand bitcoin."
Franklin Templeton's proactive approach in expanding its crypto offerings showcases its confidence in the digital asset space and its commitment to providing investors with diverse investment opportunities.
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. Then make sure you have enough cash to cover any fees or penalties that may come with withdrawing funds from your retirement plan.
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 choose this option, you'll also need to consider taxes owed on the amount withdrawn.
Next, you'll need to figure out how much money you will take 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. Traditional IRAs allow you to withdraw funds tax-free when you turn 59 1/2 while Roth IRAs charge income taxes upfront but let you access those earnings later without paying additional taxes.
Once you have completed these calculations, you need to open your brokerage account. A majority of brokers offer free signup bonuses, as well as other promotions, to get people to open accounts. You can save money by opening an account with a debit card instead of a credit card to avoid paying unnecessary fees.
When you finally get around to making withdrawals from your precious metal IRA, you'll need a safe place where you can store your coins. Some storage facilities will accept bullion bars, others require you to buy 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. However, each coin will need to be counted individually. However, individual coins can be stored to make it easy to track their value.
Some prefer to store their coins in a vault. Others prefer to store their coins in a vault. You can still enjoy the benefits of bullion for many years, regardless of which method you choose.
Are You Ready to Invest in Gold?
This will depend on how much money and whether you were able to invest in gold at the time that you started saving. You can invest in both options if you aren't sure which option is best for you.
Not only is it a safe investment but gold can also provide potential returns. It is a good choice for retirees.
While most investments offer fixed rates of return, gold tends to fluctuate. This causes its value to fluctuate over time.
However, it doesn't necessarily mean that you shouldn't invest your money in gold. It is important to consider the fluctuations when planning your portfolio.
Another benefit to gold? It's a tangible asset. Gold is more convenient than bonds or stocks because it can be stored easily. It can also be transported.
As long as you keep your gold in a secure location, you can always access it. Additionally, physical gold does not require storage fees.
Investing in gold can help protect against inflation. As gold prices rise in tandem with other commodities it can be a good hedge against rising cost.
Also, you'll reap the benefits of having some savings invested in something with a stable value. Gold rises in the face of a falling stock market.
Investing in gold has another advantage: you can sell it anytime you want. As with stocks, your position can be liquidated whenever you require cash. You don't have to wait for retirement.
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. Begin by buying a few grams. You can add more as you need.
The goal is not to become rich quick. It's not to get rich quickly, but to accumulate enough wealth to no longer need Social Security benefits.
While gold may not be the best investment, it can be a great addition to any retirement plan.
Can I buy gold using my self-directed IRA
Your self-directed IRA can be used to purchase gold, but first you need to open an account with a brokerage firm such as TD Ameritrade. Transfer funds from an existing retirement account are also possible.
The IRS allows individuals contributing up to $5.500 each ($6,500 if married, filing jointly) into a traditional IRA. Individuals can contribute up to $1,000 annually ($2,000 if married and filing jointly) directly to a Roth IRA.
If you do decide you want to invest your money in gold, you should look into purchasing physical bullion instead of futures contracts. Futures contract are financial instruments that depend on the gold price. They allow you to speculate on future prices without owning the metal itself. But physical bullion refers to real gold and silver bars you can carry in your hand.
Is buying gold a good way to save money for retirement?
While buying gold as an investment may seem unattractive at first glance it becomes worth the effort when you consider how much gold is consumed worldwide each year.
Physical bullion is the most popular method of investing in gold. But there are many other options for investing in gold. Research all options carefully and make an informed decision about what you desire from your investments.
If you're not looking to secure your wealth, it may be worth considering purchasing shares in mining equipment or companies that extract gold. If you require cash flow, gold stocks can work well.
You also can put your money into exchange-traded funds (ETFs), which essentially give you exposure to the price of gold by holding gold-related securities instead of actual gold. These ETFs often include stocks of gold miners, precious metals refiners, and commodity trading companies.
- 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)
- 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)
- 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)
Guidelines for Gold Roth IRA
Start saving as soon as possible to save for your retirement. You should start as soon as you are eligible (usually at age 50) and continue saving throughout your career. It is essential to save enough money each year in order to maintain a steady growth rate.
Additionally, tax-free opportunities like a traditional 401k or SEP IRA are available. These savings vehicles let you make contributions and not pay taxes until the earnings are withdrawn. These savings vehicles are great for those who don't have access or can't get employer matching funds.
Savings should be done consistently and regularly over time. You may not be eligible for any tax benefits if your contribution is less than the maximum allowed.
By: Jamie Redman
Title: Franklin Templeton Expands Crypto Presence with Bitcoin ETF and Eyes Ethereum
Sourced From: news.bitcoin.com/franklin-templeton-eyes-broad-crypto-expansion-beyond-bitcoin-foresees-more-etp-filings/
Published Date: Fri, 19 Jan 2024 19:00:21 +0000