Sofi Stops Offering Crypto Services
Starting Dec. 19, the financial services platform Sofi will cease providing cryptocurrency services to its customers. The decision was made due to increased scrutiny of the crypto sector by banking regulators. Sofi has provided instructions on how customers can transition their accounts to Blockchain.com during this period.
No New Accounts for Sofi Crypto Customers
Sofi recently informed its customers that as of Dec. 19, they will no longer be able to access cryptocurrency services. In an update on its webpage, Sofi stated that customer accounts will either be migrated to the Blockchain.com platform or closed entirely. Since Nov. 29, new account openings have been suspended.
Banking Regulators' Impact on Sofi's Exit
A Bloomberg report revealed that U.S. bank regulators' increased scrutiny of the cryptocurrency sector has compelled Sofi to exit the digital asset business. Sofi, which obtained a conditional bank charter in January 2022, had specific conditions to meet within two years. Failure to meet these conditions would result in the platform being required to exit the crypto market.
Trading Crypto with Sofi Accounts
During the transition period, customers who wish to migrate their accounts to Blockchain.com can still trade cryptocurrency using their Sofi accounts. Sofi has provided instructions on its webpage for this process.
Important Information for Certain States
Customers residing in specific U.S. states, including Hawaii, New Jersey, Louisiana, Nevada, Tennessee, Texas, and Virginia, have been informed by Sofi that they must liquidate certain digital assets before the deadline. Failure to do so will result in Sofi liquidating these assets on their behalf, with the net proceeds deposited into the customers' brokerage accounts within 60 days.
For customers in New York State, they are not eligible to migrate their accounts to Blockchain.com. Although their accounts will remain open until Jan. 28, 2024, they will no longer be able to purchase cryptocurrency after the deadline. Only sell orders will be allowed during this period.
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Frequently Asked Questions
Which precious metal is best to invest in?
Answering this question will depend on your willingness to take some risk and the return you seek. Although gold has traditionally been considered a safe investment choice, it may not be the most profitable. If you are looking for quick profits, gold might not be the right investment. You should invest in silver if you have the patience and time.
Gold is the best investment if you aren't looking to get rich quick. If you are looking for a long-term investment that will provide steady returns, silver may be a better choice.
Can I buy gold using my self-directed IRA
However, gold can only be purchased with your self-directed IRA. To do so, you must first open a brokerage account at TD Ameritrade. If you already have a retirement account, funds can be transferred to it.
Individuals can contribute as much as $5,500 per year ($6,500 if married filing jointly) to a traditional IRA. Individuals can contribute as much as $1,000 per year ($2,000 if married filing jointly) to a Roth IRA.
You might want to purchase physical bullion, rather than futures contracts if you are going to invest in gold. Futures contract are financial instruments that depend on the gold price. You can speculate on future prices, but not own the metal. However, physical bullion is real gold or silver bars you can hold in your hands.
What's the advantage of a Gold IRA?
Many benefits come with a gold IRA. It's an investment vehicle that lets you diversify your portfolio. You can control how much money is deposited into each account as well as when it's withdrawn.
You also have the option to roll over funds from other retirement accounts into a gold IRA. If you are planning to retire early, this makes it easy to transition.
The best part? You don’t need to have any special skills to invest into gold IRAs. They are offered by most banks and brokerage companies. You do not need to worry about fees and penalties when you withdraw money.
However, there are still some drawbacks. Gold is known for being volatile in the past. It is important to understand why you are investing in gold. Are you looking for safety or growth? Is it for insurance purposes or a long-term strategy? Only then will you be able make informed decisions.
If you are planning to keep your Gold IRA indefinitely you will want to purchase more than one ounce. One ounce won't be enough to meet all your needs. You could need several ounces depending on what you plan to do with your gold.
If you're planning to sell off your gold, you don't necessarily need a large amount. You can even manage with one ounce. But you won't be able to buy anything else with those funds.
What are the benefits of having a gold IRA?
The best way to invest money for retirement is by putting it into an Individual Retirement Account (IRA). It will be tax-deferred up until the time you withdraw it. You can decide how much money you withdraw each year. There are many types of IRAs. Some are more suitable for students who wish to save money for college. Others are intended for investors seeking higher returns. For example, Roth IRAs allow individuals to contribute after age 59 1/2 and pay taxes on any earnings at retirement. Once they start withdrawing money, however, the earnings aren’t subject to tax again. This account is a good option if you plan 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. People who prefer to save their money and invest it instead of spending it are well-suited for gold IRAs.
Another benefit of owning gold through an IRA is that you get to enjoy the convenience of automatic withdrawals. This means that you don't need to worry about making monthly deposits. To make sure you don't miss any payments, you can also set up direct deductions.
Finally, gold is one the most secure investment options available. Because it's not tied to any particular country, its value tends to remain steady. Even during economic turmoil the gold price tends to remain fairly stable. Therefore, gold is often considered a good investment to protect your savings against inflation.
Statistics
- 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)
- 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)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
External Links
investopedia.com
finance.yahoo.com
wsj.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
bbb.org
How To
How to keep physical gold in an IRA
An easy way to invest gold is to buy shares from gold-producing companies. This method is not without risks. There's no guarantee these companies will survive. Even if they survive, there's always the risk that they will lose money due fluctuations in gold prices.
You can also buy gold directly. You can either open an account with a bank, online bullion dealer, or buy gold directly from a seller you trust. These options offer the convenience of easy access, as you don't need stock exchanges to do so. You can also make purchases at lower prices. It's easier to track how much gold is in your possession. You'll get a receipt showing exactly what you paid, so you'll know if any taxes were missed. There's also less chance of theft than investing in stocks.
However, there can be some downsides. For example, you won't benefit from banks' interest rates or investment funds. Also, you won't be able to diversify your holdings – you're stuck with whatever you bought. Finally, tax man may want to ask where you put your gold.
If you'd like to learn more about buying gold in an IRA, visit the website of BullionVault.com today!
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By: Terence Zimwara
Title: US Financial Services Platform Sofi Announces Exit From Crypto Market
Sourced From: news.bitcoin.com/us-financial-services-platform-sofi-announces-exit-from-crypto-market/
Published Date: Tue, 05 Dec 2023 11:00:21 +0000
