Assistant Treasurer Questions ASIC's Failure to Issue Consumer Warning
The Australian government's assistant treasurer, Stephen Jones, has expressed his concern over the failure of the country's securities regulator to issue a consumer warning about the collapsed crypto investment firm, Hyperverse. Jones plans to query the Australian Securities and Investments Commission (ASIC) about why it did not follow the lead of regulators in other countries, including the UK, New Zealand, Canada, Germany, and Hungary.
Investigation Reveals Fictitious CEO
Jones' comments come after a recent media investigation uncovered that the CEO of Hyperverse, Steven Reece Lewis, was a fictitious person. Both the University of Leeds and the University of Cambridge have confirmed that they have no records of Lewis, raising further doubts about the legitimacy of the investment scheme.
False Promotional Material and Celebrity Endorsements
The media reports indicate that Hyperverse's promotional material falsely portrayed its CEO as a graduate of prestigious universities. The scheme also claimed endorsements from celebrities like Steve Wozniak and Chuck Norris. These false claims and celebrity endorsements likely played a significant role in defrauding thousands of investors.
Assistant Treasurer Raises Concerns
Jones described the scheme as one that convinces innocent people to invest their money into a non-existent product, with the only source of income being money from new investors. He expressed his surprise and disappointment that ASIC did not issue a warning to protect potential investors. Jones also suggested that schemes like Hyperverse bear the hallmarks of scams, further emphasizing the need for investor warnings.
Regulator Warnings as a Protective Measure
The question remains: do regulator warnings play a crucial role in helping investors avoid falling victim to crypto scams? Share your thoughts in the comments section below.
Disclaimer: The information provided here is for informational purposes only and should not be taken as financial or investment advice. Always conduct your own research and due diligence before making any investment decisions.
Frequently Asked Questions
What is the value of a gold IRA
There are many advantages to a gold IRA. It's an investment vehicle that allows you to diversify your portfolio. You can control how much money is deposited into each account as well as when it's withdrawn.
You can also rollover funds from other retirement accounts to a gold IRA. This will allow you to transition easily if it is your decision to retire early.
The best thing is that investing in gold IRAs doesn't require any special skills. They're available at most banks and brokerage firms. You do not need to worry about fees and penalties when you withdraw money.
But there are downsides. Gold is historically volatile. It's important to understand the reasons you're considering investing in gold. Is it for growth or safety? Is it for insurance purposes or a long-term strategy? Only then will you be able make informed decisions.
If you plan on keeping your gold IRA alive for a while, you may want to consider purchasing more than 1 ounce of pure gold. A single ounce will not be sufficient to meet all your requirements. Depending on the purpose of your gold, you might need more than one ounce.
You don't need to have a lot of gold if you are selling it. You can even live with just one ounce. You won't be capable of buying anything else with these funds.
What amount should I invest in my Roth IRA?
Roth IRAs are retirement accounts where you deposit your own money tax-free. You can't withdraw money from these accounts before you reach the age of 59 1/2. However, if you do decide to take out some of your contributions before then, there are specific rules you must follow. First, your principal (the original deposit amount) cannot be touched. No matter how much money you contribute, you cannot take out more than was originally deposited to the account. You must pay taxes on the difference if you want to take out more than what you initially contributed.
You cannot withhold your earnings from income taxes. You will pay income taxes when you withdraw your earnings. Let's suppose that you contribute $5,000 annually to your Roth IRA. In addition, let's assume you earn $10,000 per year after contributing. Federal income taxes would apply to the earnings. You would be responsible for $3500 So you would only have $6,500 left. Since you're limited to taking out only what you initially contributed, that's all you could take out.
The $4,000 you take out of your earnings would be subject to taxes. You'd still owe $1,500 in taxes. You would also lose half of your earnings because they are subject to another 50% tax (half off 40%). So even though you received $7,000 in Roth IRA contributions, you only received $4,000.
There are two types: Roth IRAs that are traditional and Roth. A traditional IRA allows you to deduct pre-tax contributions from your taxable income. When you retire, you can use your traditional IRA to withdraw your contribution balance plus interest. There are no restrictions on the amount you can withdraw from a Traditional IRA.
Roth IRAs won't let you deduct your contributions. After you have retired, the full amount of your contributions and accrued interest can be withdrawn. There is no minimum withdrawal required, unlike a traditional IRA. Your contribution can be withdrawn at any age, not just when you reach 70 1/2.
Is gold a good investment IRA?
Gold is an excellent investment for any person who wants to save money. You can diversify your portfolio with gold. But there is more to gold than meets the eye.
It's been used as a form of payment throughout history. It is often called “the most ancient currency in the universe.”
Gold is not created by governments, but it is extracted from the earth. Because it is rare and difficult to make, it is extremely valuable.
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.
On the flipside, people may save cash rather than spend it when the economy slows. This causes more gold to be produced, which lowers its value.
This is why both individuals as well as businesses can benefit from investing in gold. You'll reap the benefits of investing in gold when the economy grows.
Your investments will also generate interest, which can help you increase your wealth. Additionally, you won't lose cash if the gold price falls.
Should You Purchase Gold?
Gold was once considered an investment safe haven during times of economic crisis. Today, many people are looking to precious metals like gold and avoiding traditional investments like bonds and stocks.
Gold prices have been on an upward trend over recent years, but they remain relatively low compared to other commodities such as oil and silver.
Experts believe this could change soon. They say that gold prices could rise dramatically with another global financial crisis.
They also mention that gold is becoming more popular due to its perceived worth and potential return.
Here are some things to consider if you're considering investing in gold.
- Consider first whether you will need the money to save for retirement. It's possible to save for retirement without putting your savings into gold. However, you can still save for retirement without putting your savings into gold.
- Second, be sure to understand your obligations before you purchase gold. Each one offers different levels security and flexibility.
- Don't forget that gold does not offer the same safety level as a bank accounts. It is possible to lose your gold coins.
Do your research before you buy gold. Protect your gold if you already have it.
Is it a good retirement strategy to buy gold?
Although buying gold as an investment might not sound appealing at first, when you look at the average annual gold consumption worldwide, it is worth looking into.
The most popular form of investing in gold is through physical bullion bars. However, there are many other ways to invest 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 need cash flow from an investment, purchasing gold stocks is a good choice.
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 can include stocks of precious metals refiners and gold miners.
What is a Precious Metal IRA?
A precious metal IRA allows you to diversify your retirement savings into gold, silver, platinum, palladium, rhodium, iridium, osmium, and other rare metals. These metals are known as “precious” because they are rare and extremely valuable. These are excellent investments that will protect your wealth from inflation and economic instability.
Precious metals are sometimes called “bullion.” Bullion refers simply to the physical metal.
Bullion can be bought via various channels, such as online retailers, large coin dealers and grocery stores.
A precious metal IRA lets you invest in bullion direct, instead of purchasing stock. This means you'll receive dividends every year.
Precious metal IRAs are not like regular IRAs. They don't need paperwork and don't have to be renewed annually. Instead, you pay a small percentage tax on the gains. Additionally, you have access to your funds at no cost whenever you need them.
Statistics
- 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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.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)
- 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)
- (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)
External Links
irs.gov
cftc.gov
forbes.com
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
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
The History of Gold as an Asset
From the very beginning of time, gold was a currency. It was universally accepted due to its purity and divisibility, beauty, scarcity, and durability. In addition, because of its value, it was traded internationally. Because there were no internationally recognized standards for measuring and weighing gold, the different weights of this metal could be used worldwide. For example in England, a pound sterling equals 24 carats. In France, a livre tournois equals 25. Carats of golden. Germany had one mark which equals 28. Carats.
The United States started issuing American coins in the 1860s made of 90% copper and 10% zinc. This led to a decline in demand for foreign currencies, which caused their price to increase. In this period, large amounts of gold coin were minted by the United States, which caused the gold price to drop. The U.S. government was unable to pay its debts due to too much money being in circulation. To do so, they decided to sell some of the excess gold back to Europe.
Because most European countries did not trust the U.S. dollar, they started accepting gold as payment. Many European countries started to accept paper money as a substitute for gold after World War I. Since then, the price of gold has increased significantly. Even though gold's price fluctuates, it is still one of the most secure investments you could make.
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By: Terence Zimwara
Title: Australian Regulator Under Fire for Failing to Warn Investors About Crypto Investment Scheme
Sourced From: news.bitcoin.com/australian-government-official-to-question-regulator-over-its-failure-to-warn-crypto-investors/
Published Date: Wed, 10 Jan 2024 11:00:18 +0000
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