Introduction
Renowned author Robert Kiyosaki, famous for his book "Rich Dad Poor Dad," has once again advised investors to embrace alternative investments such as gold, silver, and bitcoin while urging them to ditch fiat currency. Kiyosaki has been a vocal advocate for these assets and believes that workers and savers in U.S. dollars are at a disadvantage. In this article, we will explore Kiyosaki's advice and the reasons behind his recommendations.
Kiyosaki's Recommendation
Kiyosaki has taken to social media to reiterate his recommendation of gold, silver, and bitcoin as reliable investments. He highlights the recent surge in the price of gold and encourages individuals to move away from what he refers to as the "fake money system." According to Kiyosaki, it is crucial for investors to act quickly and embrace alternative assets before it's too late.
The Concept of "Fake Money"
Kiyosaki often refers to fiat money, such as the U.S. dollar, as "fake money." He argues that the U.S. dollar lost its value when it was no longer tied to the gold standard in 1971. Instead, it became dependent on the "full faith and credit" of the United States. In contrast, Kiyosaki sees gold and silver as "God's money" and bitcoin as "people's money."
Fiat Money Risks
Kiyosaki consistently warns about the risks associated with fiat money. He believes that central bankers, the Federal Reserve, and the Treasury are negatively impacting the value of the U.S. dollar. According to him, the Federal Reserve's printing of trillions of dollars will lead to inflation and devalue the currency. Kiyosaki predicts that individuals who hold assets like gold, silver, and bitcoin will fare better in the face of this economic turbulence.
Long-Term Predictions
Kiyosaki has made several bullish predictions about the future prices of bitcoin, gold, and silver. He anticipates that bitcoin could reach as high as $1 million in the event of a global economic crisis. Similarly, he projects that gold could reach $75,000 and silver could reach $60,000 under the same circumstances. Furthermore, Kiyosaki has predicted that the price of bitcoin could reach $500,000 by 2025.
Rich Dad's First Lesson
In line with his book "Rich Dad Poor Dad," Kiyosaki emphasizes that the wealthy do not rely on traditional employment or paper assets. Instead, they focus on acquiring assets that generate tax-free income and provide lifelong financial security. Kiyosaki encourages individuals to invest in real assets like gold, silver, and bitcoin to achieve financial freedom.
Conclusion
Robert Kiyosaki's advice to investors to get into bitcoin and ditch fiat money reflects his belief that alternative investments offer better prospects in today's economic landscape. His recommendations of gold, silver, and bitcoin are rooted in his skepticism towards the current monetary system. While individual opinions may vary, Kiyosaki's insights provide valuable food for thought for those seeking to diversify their investment portfolios.
Share Your Thoughts
What do you think about Robert Kiyosaki's advice? Do you agree with his recommendations? Share your thoughts and opinions in the comments section below.
Frequently Asked Questions
Can I keep a Gold ETF in a Roth IRA
This option may not be available in a 401(k), but you should look into other options such as an Individual Retirement account (IRA).
Traditional IRAs allow contributions from both the employer and employee. Another way to invest in publicly traded companies is through an Employee Stock Ownership Plan.
An ESOP is a tax-saving tool because employees have a share of company stock as well as the profits that the business generates. The money you invest in the ESOP will be taxed at a lower rate than if it were directly held by the employee.
Also available is an Individual Retirement Annuity. An IRA allows you to make regular payments throughout your life and earn income in retirement. Contributions to IRAs do not have to be taxable
What are some of the advantages and disadvantages to a gold IRA
An Individual Retirement account (IRA) is a better option than regular savings accounts in that interest earned is exempted from tax. This makes an IRA great for people who want to save money but don't want to pay tax on the interest they earn. However, there are disadvantages to this type investment.
You may lose all your accumulated savings if you take too much out of your IRA. You might also not be able to withdraw from your IRA until the IRS deems you to be 59 1/2. A penalty fee will be charged if you decide to withdraw funds.
Another problem is the cost of managing your IRA. Many banks charge between 0.5%-2.0% per year. Others charge management fees that range from $10 to $50 per month.
Insurance will be required if you would like to keep your cash out of banks. In order to make a claim, most insurers will require that you have a minimum amount in gold. Insurance that covers losses upto $500,000.
If you decide to open a gold IRA, it is important to know how much you can use. Some providers restrict the amount you can own in gold. Others allow you to pick your weight.
You will also have to decide whether to purchase futures or physical gold. Futures contracts for gold are less expensive than physical gold. However, futures contracts give you flexibility when buying gold. Futures contracts allow you to create a contract with a specified expiration date.
Also, you will need to decide on the type of insurance coverage you would like. The standard policy doesn’t provide theft protection or loss due fire, flood, or earthquake. However, it does cover damage caused by natural disasters. If you live in a high-risk area, you may want to add additional coverage.
Additional to your insurance, you will need to consider how much it costs to store your gold. Storage costs are not covered by insurance. For safekeeping, banks typically charge $25-40 per month.
To open a IRA in gold, you will need to first speak with a qualified custodian. A custodian helps you keep track of your investments, and ensures compliance with federal regulations. Custodians can't sell assets. Instead, they must maintain them for as long a time as you request.
After you have decided on the type of IRA that best suits you, you will need to complete paperwork detailing your goals. You must include information about what investments you would like to make (e.g. stocks, bonds and mutual funds). The plan should also include information about how much you are willing to invest each month.
You will need to fill out the forms and send them to your chosen provider together with a check for small deposits. Once the company has received your application, they will review it and send you a confirmation email.
Consider consulting a financial advisor when opening a golden IRA. A financial planner is an expert in investing and can help you choose the right type of IRA for you. You can also reduce your insurance costs by working with them to find lower-cost alternatives.
Should You Invest in gold for Retirement?
The answer depends on how much money you have saved and whether gold was an investment option available when you started saving. Consider investing in both.
Gold is a safe investment and can also offer potential returns. Retirees will find it an attractive investment.
Most investments have fixed returns, but gold's volatility is what makes it unique. Therefore, its value is subject to change 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 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 carried.
As long as you keep your gold in a secure location, you can always access it. You don't have to pay storage fees for physical gold.
Investing in gold can help protect against inflation. You can hedge against rising costs by investing in gold, which tends to rise alongside other commodities.
You'll also benefit from having a portion of your savings invested in something that isn't going down in value. Gold usually rises when the stock market falls.
Investing in gold has another advantage: you can sell it anytime you want. Just like stocks, you can liquidate your position whenever you need cash. You don't even have to wait until you retire.
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.
Don't purchase too much at once. Start small, buying only a few ounces. You can add more as you need.
It's not about getting rich fast. 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.
How do I open a Precious Metal IRA
First, you must decide if your Individual Retirement Account (IRA) is what you want. Once you have decided to open an Individual Retirement Account (IRA), you will need to complete Form 806. For you to determine the type and eligibility for which IRA, you need Form 5204. This form should be completed within 60 days after opening the account. Once you have completed this form, it is possible to begin investing. You might also be able to contribute directly from the paycheck through payroll deduction.
You must complete Form 8903 if you choose a Roth IRA. Otherwise, it will be the same process as an ordinary IRA.
To be eligible to have a precious metals IRA you must meet certain criteria. The IRS requires that you are at least 18 years old and have earned an income. You can't earn more than $110,000 per annum ($220,000 in married filing jointly) for any given tax year. Contributions must be made regularly. These rules will apply regardless of whether your contributions are made through an employer or directly out of your paychecks.
You can use a precious-metals IRA to purchase gold, silver and palladium. However, you won't be able purchase physical bullion. This means you won't be allowed to trade shares of stock or bonds.
To invest directly in precious metals companies, you can also use precious metals IRA. Some IRA providers offer this option.
An IRA is a great way to invest in precious metals. However, there are two important drawbacks. First, they don't have the same liquidity as stocks or bonds. This makes them harder to sell when needed. They don't yield dividends like bonds and stocks. Therefore, you will lose more money than you gain over time.
What is the cost of gold IRA fees
A monthly fee of $6 for an Individual Retirement Account is charged. This includes the account maintenance fees and any investment costs associated with your chosen investments.
If you wish to diversify your portfolio, you may need to pay additional fees. These fees can vary depending on which type of IRA account you choose. Some companies offer checking accounts for free, while others charge monthly fees for IRA account.
Most providers also charge annual management costs. These fees are usually between 0% and 1%. The average rate is.25% annually. These rates can be waived if the broker is TD Ameritrade.
Is gold a good choice for an investment IRA?
For anyone who wants to save some money, gold can be a good investment. It's also a great way to diversify your portfolio. But gold has more to it than meets the eyes.
It has been used throughout history as currency and it is still a very popular method of payment. It's sometimes called “the world's oldest money”.
Gold is not created by governments, but it is extracted 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. If the economy is strong, people will spend more money which means less people can mine gold. Gold's value rises as a result.
The flip side is that people tend to save money when the economy slows. This leads to more gold being produced which decreases its value.
This is why investing in gold makes sense for individuals and businesses. If you make an investment in gold, you can reap the economic benefits whenever the economy is growing.
In addition to earning interest on your investments, this will allow you to grow your wealth. In addition, you won’t lose any money if gold falls in value.
Statistics
- (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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- 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)
- 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)
External Links
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- You want to keep gold in your IRA at home? It's not legal – WSJ
irs.gov
bbb.org
law.cornell.edu
- 7 U.S. Code SS7 – Designation of boards for trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement accounts
How To
How to Keep Physical Gold in an IRA
The best way of investing in gold is to purchase shares from companies that produce gold. This method is not without risks. There's no guarantee these companies will survive. There is always the chance of them losing their money due to fluctuations of the gold price.
You can also buy gold directly. You will need to either open an online or bank account or simply buy gold from a reliable seller. This option has many advantages, including the ease of access (you don’t have to deal with stock markets) and the ability of making purchases at low prices. It's also easy to see how many gold you have. The receipt will show exactly what you paid. You'll also know if taxes were not paid. There's also less chance of theft than investing in stocks.
There are also some drawbacks. You won't get the bank's interest rates or investment money. It won't allow you to diversify any of your holdings. Instead, you'll be stuck with what's been bought. The taxman might also ask you questions about where your gold is located.
Visit BullionVault.com to find out more about gold buying in an IRA.
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By: Kevin Helms
Title: Robert Kiyosaki Urges Investors to Get into Bitcoin and Ditch Fiat Money
Sourced From: news.bitcoin.com/robert-kiyosakis-advice-get-into-bitcoin-now-before-its-too-late/
Published Date: Mon, 27 Nov 2023 03:30:08 +0000
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