Renowned author and Rich Dad Poor Dad co-author, Robert Kiyosaki, is urging investors to prepare for hyperinflation and highlighting bitcoin as the best protection against it. Kiyosaki believes that bitcoin is "people's money," meaning its value is not controlled by governments.
Preparing for Hyperinflation: Robert Kiyosaki's Advice
Robert Kiyosaki, the author of the best-selling book Rich Dad Poor Dad, is advising investors to be ready for hyperinflation and considers bitcoin as the ultimate protection. Rich Dad Poor Dad, a book co-authored by Kiyosaki and Sharon Lechter in 1997, has been a New York Times Best Seller for over six years. The book has sold more than 32 million copies in over 51 languages and across 109 countries.
In a recent social media post, Kiyosaki shared that he had visited Germany to commemorate the hyperinflation period of 1923, which led to Adolf Hitler's rise to power. Expressing concern about the current situation, he stated, "Are we about to experience hyperinflation too? I hope not. Yet our government leaders are the most incompetent ever."
Kiyosaki then recommended studying the hyperinflation events in Germany and Zimbabwe and preparing accordingly. While acknowledging the value of food, guns, gold, and silver, he emphasized that bitcoin is the best protection because it is "people's money," with its value controlled by the people rather than leaders:
"Yet I believe bitcoin is your best protection because bitcoin is people’s money which means people control the value of bitcoin not our leaders."
This is not the first time Kiyosaki has warned about hyperinflation. In September, he explained that hyperinflation does not mean prices are increasing, but rather that the purchasing power of money is decreasing. He advised individuals not to be losers, but to invest in gold, silver, and bitcoin to become winners.
Kiyosaki has been recommending gold, silver, and bitcoin as the top investments during unstable times. He believes these assets provide long-term financial security and freedom. In April, Kiyosaki stated that "America is dying," expressing his concerns about the decline of the U.S. dollar.
Kiyosaki is not alone in his concerns about hyperinflation. Former Twitter CEO Jack Dorsey predicted that hyperinflation will soon occur in the United States and globally. Venture capitalist Balaji Srinivasan also stated in March that hyperinflation is currently happening. Economist Peter Schiff has also warned about the risk of hyperinflation due to major Fed rate hikes.
Do you agree with Robert Kiyosaki's belief that bitcoin is the best protection against hyperinflation? Share your thoughts in the comments section below.
Frequently Asked Questions
How is gold taxed in Roth IRA?
An investment account's tax is calculated based on the current value of the account, and not on what you paid originally. If you invest $1,000 in mutual funds or stocks and then later sell them, all gains are subjected to taxes.
But if you put the money into a traditional IRA or 401(k), there's no tax when you withdraw the money. You pay taxes only on earnings from dividends and capital gains — which apply only to investments held longer than one year.
Each state has its own rules regarding these accounts. In Maryland, for example, withdrawals must be made within 60 days of reaching the age of 59 1/2 in order to qualify. Massachusetts allows you to delay withdrawals until April 1. New York has a maximum age limit of 70 1/2. To avoid penalties, you should plan ahead and take distributions as soon as possible.
Is physical gold allowed in an IRA.
Not only is gold paper currency, but it's also money. People have used gold as a currency for thousands of centuries to preserve their wealth and keep it safe from inflation. Investors use gold today as part of their diversified portfolio, because it tends to perform better in times of financial turmoil.
Many Americans now invest in precious metals. While owning gold doesn't guarantee you'll make money investing in gold, there are several reasons why it may make sense to consider adding gold to your retirement portfolio.
Another reason is that gold has historically outperformed other assets in financial panic periods. The S&P 500 dropped 21 percent in the same time period, while gold prices rose by nearly 100 percent between August 2011-early 2013. During those turbulent market conditions, gold was among the few assets that outperformed stocks.
Another benefit to investing in gold? It has virtually zero counterparty exposure. Your stock portfolio can fall, but you will still own your shares. However, if you have gold, your value will rise even if the company that you invested in defaults on its loans.
Finally, gold offers liquidity. You can sell your gold at any time without worrying about finding a buyer, which is a major advantage over other investments. Gold is liquid and therefore it makes sense to purchase small amounts. This allows you to take advantage of short-term fluctuations in the gold market.
What is a gold IRA account?
You can purchase physical bullion gold coins at any point in time. To invest in gold, you don't need to wait for retirement.
An IRA lets you keep your gold for life. Your gold holdings will not be subject to tax when you are gone.
Your heirs can inherit your gold and avoid capital gains taxes. Your gold is not part of your estate and you don't have to include it in the final estate report.
To open a gold IRA, you will first need to create an individual retirement account (IRA). After you do this, you will be granted an IRA custodian. This company acts in the role of a middleman between your IRS agent and you.
Your gold IRA custodian is responsible for handling all paperwork and submitting the required forms to the IRS. This includes filing annual reporting.
After you have established your gold IRA you will be able purchase gold bullion coin. The minimum deposit is $1,000. The minimum deposit is $1,000. However, you will receive a higher percentage of interest if your deposit is greater.
You'll have to pay taxes if you take your gold out of your IRA. You'll have to pay income taxes and a 10% penalty if you withdraw the entire amount.
If you only take out a very small percentage of your income, you may not need to pay tax. However, there are exceptions. There are some exceptions. For instance, if you take out 30% or more from your total IRA assets, federal income taxes will apply plus a 20 percent penalty.
It is best to not take out more than 50% annually of your total IRA assets. If you do, you could face severe financial consequences.
Which precious metal is best to invest in?
This question is dependent on the amount of risk you are willing and able to accept as well as the type of return you desire. While gold is considered a safe investment option, it can also be a risky choice. You might not want to invest in gold if you're looking for quick returns. If you have the patience to wait, then you might consider investing in silver.
If you don’t want to be rich fast, gold might be the right choice. Silver may be a better option for investors who want long-term steady returns.
Do you need to open a Precious Metal IRA
The most important thing you should know before opening an IRA account is that precious metals are not covered by insurance. It is impossible to get back money if you lose your investment. This includes losing all your investments due to theft, fire, flood, etc.
Investing in physical gold and silver coins is the best way to protect yourself from this type of loss. These coins have been around for thousands and represent a real asset that can never be lost. If you were to offer them for sale today, they would likely fetch you more than you paid when you bought them.
If you decide to open an IRA account, choose a reputable company that offers competitive rates and products. You should also consider using a third party custodian to protect your assets and give you access at any time.
Do not open an account unless you're ready to retire. Remember the future.
- 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)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- You want to keep gold in your IRA at home? It's not exactly legal – WSJ
- 7 U.S. Code SS7 – Designation of boards for trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement funds
3 Ways to Invest Gold for Retirement
It's essential to understand how gold fits into your retirement plan. You have many options for investing in gold if there is a 401K account at your workplace. You might also consider investing in gold outside your workplace. One example is opening a custodial accounts at Fidelity Investments if an IRA (Individual Retirement Account), if you already own one. Or, if you don't already own any precious metals, you may want to consider buying them directly from a reputable dealer.
These are three easy rules to remember if you invest in gold.
- Buy Gold with Your Cash – Don't use credit cards or borrow money to fund your investments. Instead, cash in your accounts. This will protect your against inflation and increase your purchasing power.
- Physical Gold Coins to Own – Physical gold coin ownership is better than having a paper certificate. Physical gold coins are easier to sell than certificates. Physical gold coins don't require storage fees.
- Diversify Your Portfolio – Never put all of your eggs in one basket. This is how you spread your wealth. You can invest in different assets. This will reduce your risk and give you more flexibility in times of market volatility.
By: Kevin Helms
Title: Robert Kiyosaki: Bitcoin Is Your Best Protection Against Hyperinflation
Sourced From: news.bitcoin.com/robert-kiyosaki-says-prepare-for-hyperinflation-sees-bitcoin-as-the-best-protection/
Published Date: Wed, 22 Nov 2023 00:30:21 +0000