Renowned author Robert Kiyosaki, famous for his book Rich Dad Poor Dad, has issued a cautionary statement stating that fiat money is not a safe investment. He emphasizes that central banks are buying gold to protect themselves, rather than safeguarding the interests of investors. Kiyosaki advises individuals to take necessary steps to protect themselves by investing in assets such as gold, silver, and bitcoin.
Is Fiat Money Safe? Robert Kiyosaki Says 'Hell No'
Robert Kiyosaki, co-author of the bestselling book Rich Dad Poor Dad, urges investors to be cautious of central bankers and highlights the vulnerability of fiat money. Rich Dad Poor Dad, co-authored by Kiyosaki and Sharon Lechter, has remained on the New York Times Best Seller List for over six years. The book has sold over 32 million copies in more than 109 countries and has been translated into 51 languages.
Kiyosaki expressed his concerns on X Saturday:
"Central banks like the Fed are buying gold. Does this mean fiat money is safe? Hell no!"
He further adds, "Central bankers are safeguarding their own interests by purchasing gold. Their primary responsibility is to protect the banks, not individual investors. It is essential to be informed and take appropriate measures to protect oneself from central bankers. Consider investing in gold, silver, and bitcoin."
According to the World Gold Council, central banks worldwide have continued to increase their gold holdings, with a total purchase of 337 metric tons in the third quarter. This surge in buying has resulted in a record high of 800 metric tons of gold purchased year-to-date.
Kiyosaki consistently raises concerns about fiat currencies, referring to them as "fake money." In contrast, he considers gold and silver as "God's money" and believes bitcoin to be "people's money." In September, he stated that cryptocurrency is the future, highlighting the inevitable decline of fiat money. Kiyosaki strongly advises investors to consider gold, silver, and bitcoin as part of their investment portfolio as soon as possible.
The renowned author has repeatedly warned about the impending demise of the U.S. dollar, attributing it to the actions of the Federal Reserve, which he claims has caused inflation and the collapse of the U.S. economy. In July, he predicted the approaching end of the USD, and in April, he expressed concerns about the imminent death of the U.S. dollar. Additionally, he anticipates that the value of Bitcoin will skyrocket once the Federal Reserve introduces a central bank digital currency (CBDC).
Do you agree with Robert Kiyosaki, the author of Rich Dad Poor Dad, that fiat money is not a safe investment? Share your thoughts in the comments section below.
Frequently Asked Questions
Is gold a good IRA investment?
Anyone who is looking to save money can make gold an excellent investment. It is also an excellent way to diversify you portfolio. There is much more to gold than meets your eye.
It has been used as a currency throughout history and is still a popular method of payment. It's often referred to as “the world's oldest currency.”
Gold, unlike other paper currencies created by governments is mined directly from the earth. Because it is rare and difficult to make, it is extremely valuable.
The price of gold fluctuates based on supply and demand. If the economy is strong, people will spend more money which means less people can mine gold. As a result, the value of gold goes up.
On the other hand, people will save cash when the economy slows and not spend it. This leads to more gold being produced which decreases its value.
This is why gold investment makes sense for both individuals and businesses. If you have gold to invest, you will reap the rewards when the economy expands.
You'll also earn interest on your investments, which helps you grow your wealth. Plus, you won't lose money if the value of gold drops.
Who owns the gold in a Gold IRA?
An individual who has gold is considered to be a “form of money” by the IRS and 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.
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 plan on selling the gold someday, you'll need to report its value, which could affect how much capital gains taxes you owe when you cash in your investments.
To find out what options you have, consult an accountant or financial planner.
How much money should I put into my Roth IRA?
Roth IRAs let you save tax on retirement by allowing you to deposit your own money. These accounts are not allowed to be withdrawn before the age of 59 1/2. If you decide to withdraw some of your contributions, you will need to follow certain rules. You cannot touch your principal (the amount you originally deposited). No matter how much money you contribute, you cannot take out more than was originally deposited to the 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. When you withdraw, you will have to pay income tax. Consider, for instance, that you contribute $5,000 per year to your Roth IRA. Let's further assume you earn $10,000 annually after contributing. This would mean that you would have to pay $3,500 in federal income tax. That leaves you with only $6,500 left. This is the maximum amount you can withdraw because you are limited to what you initially contributed.
You would still owe tax on $1,500 if you took out $4,000 of your earnings. Additionally, half of your earnings would be lost because they will be taxed at 50% (half the 40%). So even though your Roth IRA ended up having $7,000, you only got $4,000.
Two types of Roth IRAs are available: Roth and traditional. Traditional IRAs allow for pre-tax deductions from your taxable earnings. Your traditional IRA can be used to withdraw your balance and interest when you are retired. A traditional IRA can be withdrawn up to the maximum amount allowed.
A Roth IRA doesn't allow you to deduct your contributions. Once you are retired, however, you may withdraw all of your contributions plus accrued interest. Unlike a traditional IRA, there is no minimum withdrawal requirement. You don’t have to wait for your turn 70 1/2 years before you can withdraw your contributions.
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. This option will require you to pay taxes on the amount that you withdraw.
Next, you'll need to figure out how much money you will take out of your IRA. The calculation is influenced by several factors such as your age at withdrawal, the length of time you have owned the account and whether or not you plan to continue contributing to retirement plans.
Once you determine the percentage of your total saved money you want to convert into cash, then you need to choose which type IRA you will use. Traditional IRAs permit you to withdraw your funds tax-free once you turn 59 1/2. Roth IRAs have income taxes upfront, but you can access the earnings later on without paying additional taxes.
Once you have completed these calculations, you need to open your brokerage account. To encourage customers to open accounts, brokers often offer signup bonuses and promotions. Avoid unnecessary fees by opening an account with your debit card, rather than your credit card.
When it's time to make withdrawals from your precious-metal IRA, you'll need a place to keep your coins safe. Some storage areas will accept bullion, while others require you to purchase individual coins. You will need to weigh each one before making a decision.
Bullion bars, for example, require less space as you're not dealing with individual coins. But you will have to count each coin separately. You can track their value by keeping individual coins.
Some people like to keep their coins in vaults. Others prefer to place them in safe deposit boxes. Regardless of the method you prefer, ensure that your bullion is safe so that you can continue to enjoy its benefits for many years.
Should You Invest Gold in Retirement?
It depends on how much you have saved and if gold was available at the time you started saving. If you're unsure about which option to choose then consider investing in both.
You can earn potential returns on your investment of gold. 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.
This does not mean you shouldn’t invest in gold. It is important to consider the fluctuations when planning your portfolio.
Another advantage to gold is that it can be used as a tangible asset. Gold is much easier to store than bonds and stocks. It can be easily transported.
Your gold will always be accessible as long you keep it in a safe place. There are no storage charges for holding physical gold.
Investing in gold can help protect against inflation. It's a great way to hedge against rising prices, as gold prices tend to increase along with other commodities.
It's also a good idea to have a portion your savings invested in something which isn't losing value. Gold usually rises when stocks fall.
Another benefit to investing in gold? You can always sell it. As with stocks, your position can be liquidated whenever you require cash. It doesn't matter if you are retiring.
If you do decide to invest in gold, make sure to diversify your holdings. Don't put all of your eggs in one basket.
Don't buy too many at once. Start by purchasing a few ounces. Add more as you're able.
Remember, the goal here isn't to get rich quickly. Rather, it's to build up enough wealth so you won't need to rely on Social Security benefits.
Although gold might not be the right investment for everyone it could make a great addition in any retirement plan.
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- 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)
- (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)
3 Ways to Invest in Gold for Retirement
It's important to understand how gold fits in with your retirement plan. There are several options to invest in precious metals if your employer has a 401k. You may also want to consider investing in gold outside of your workplace. If you have an IRA (Individual Retirement Account), a custodial account could be opened at Fidelity Investments. You might also consider purchasing precious metals directly from a trusted dealer if they are not already yours.
If you do invest in gold, follow these three simple rules:
- Buy Gold with Cash – Avoid using credit cards or borrowing money to fund investments. Instead, cash in your accounts. This will help protect you against inflation and keep your purchasing power high.
- Physical Gold Coins to Own – Physical gold coin ownership is better than having a paper certificate. The reason for this is that physical gold coins are much more easily sold than certificates. Physical gold coins don't require storage fees.
- Diversify Your Portfolio. Never place all your eggs in the same basket. By investing in multiple assets, you can spread your wealth. This helps to reduce risk and provides more flexibility when markets are volatile.
By: Kevin Helms
Title: Robert Kiyosaki: Fiat Money Isn’t Safe, Investors Must Protect Themselves From Central Bankers
Sourced From: news.bitcoin.com/robert-kiyosaki-fiat-money-isnt-safe-investors-must-protect-themselves-from-central-bankers/
Published Date: Wed, 15 Nov 2023 03:00:41 +0000