Introduction
Renowned author and financial expert Robert Kiyosaki, best known for his book "Rich Dad Poor Dad," is urging investors to prepare for hyperinflation and highlighting bitcoin as the ultimate safeguard. In his view, bitcoin is "people's money" that cannot be controlled by governments.
Robert Kiyosaki's Perspective
In his famous book "Rich Dad Poor Dad," co-authored with Sharon Lechter, Kiyosaki emphasizes the importance of financial literacy and independence. With over 32 million copies sold worldwide and a continuous presence on the New York Times Best Seller List for six years, Kiyosaki is a trusted voice in the field.
Recently, Kiyosaki took to social media to share his concerns about hyperinflation. Drawing a parallel with Germany's hyperinflation in 1923, which led to the rise of Adolf Hitler, he questioned whether we are on the brink of a similar crisis. In his opinion, the current government leaders are the most incompetent ever.
Preparing for Hyperinflation
Kiyosaki advises investors to study the examples of Germany and Zimbabwe, two countries that experienced hyperinflation. He suggests that valuable assets during such times include food, guns, gold, silver, and, notably, bitcoin. According to Kiyosaki, bitcoin stands out as the best protection because it is "people's money," meaning its value is controlled by the people and not by leaders.
This is not the first time Kiyosaki has warned about hyperinflation. In September, he explained that hyperinflation does not simply mean rising prices but rather a decline in the purchasing power of money. To protect against this, he recommends investing in gold, silver, and bitcoin, emphasizing the importance of being a winner rather than a loser in times of financial instability.
Bitcoin, Gold, and Silver for Financial Security
Kiyosaki has long been an advocate for investing in alternative assets such as gold, silver, and bitcoin. He believes that these three investments provide lifelong financial security and freedom. Back in April, he stated that he believes "America is dying" and warned of the imminent demise of the U.S. dollar.
Kiyosaki's concerns about hyperinflation are shared by other notable figures. Former Twitter CEO Jack Dorsey predicted hyperinflation in the U.S. and the world in 2021, while venture capitalist Balaji Srinivasan believes it is already happening. Economist Peter Schiff has also expressed the risk of hyperinflation due to major Federal Reserve rate hikes.
Conclusion
As hyperinflation concerns continue to grow, Robert Kiyosaki stands firm in his belief that bitcoin is the best protection against this financial phenomenon. He advises investors to educate themselves about hyperinflation, learn from historical examples, and consider investing in assets like bitcoin, gold, and silver. By taking these steps, individuals can safeguard their wealth and financial future in an ever-changing and unpredictable economic landscape.
Frequently Asked Questions
What does a gold IRA look like?
Individuals who want to invest with precious metals may use the Gold Ira accounts, which are tax-free.
You can purchase gold bullion coins in physical form at any moment. To start investing in gold, it doesn't matter if you are retired.
An IRA allows you to keep your gold forever. 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.
You'll first have to set up an individual retirement account (IRA) to open a gold 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 will handle the paperwork and submit the necessary forms to the IRS. This includes filing annual reports.
Once you've established your gold IRA, you'll be able to purchase gold bullion coins. 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.
When you withdraw your gold from your IRA, you'll pay taxes on it. If you take out the whole amount, you'll be subject to income taxes as well as a 10 percent penalty.
However, if you only take out a small percentage, you may not have to pay taxes. However, there are exceptions. However, there are exceptions. If you take 30% or more of your total IRA asset, you'll owe federal Income Taxes plus a 20% penalty.
Avoid taking out more that 50% of your total IRA assets each year. You'll be facing severe financial consequences if you do.
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 want to diversify, you may be required to pay extra fees. The type of IRA you choose will determine the fees. For example, some companies offer free checking accounts but charge monthly fees for IRA accounts.
Most providers also charge an annual management fee. These fees are usually between 0% and 1%. The average rate is.25% per year. These rates are usually waived if you use a broker such as TD Ameritrade.
What does gold do as an investment?
The supply and demand for gold affect the price of gold. Interest rates are also a factor.
Due to limited supplies, gold prices are subject to volatility. There is also a risk in owning gold, as you must store it somewhere.
Should You Purchase Gold?
Gold was considered a safety net for investors during times of economic turmoil in the past. However, today many people are turning away from traditional investments such as stocks and bonds and instead looking toward precious metals such as gold.
The trend for gold prices has been upward in recent years but they still remain low relative to other commodities like silver and oil.
Experts believe this could change soon. According to them, gold prices could soar if there is another financial crisis.
They also pointed out that gold is gaining popularity due to its perceived value, and potential return.
If you are considering investing in gold, here are some things that you need to keep in mind.
- Before you start saving money for retirement, think about whether you really need it. You can save money for retirement even if you don't invest in gold. However, when you retire at age 65, gold can provide additional protection.
- Second, make sure you understand what you're getting yourself into before you start buying gold.There are several different types of gold IRA accounts available. Each account offers different levels of security and flexibility.
- Don't forget that gold does not offer the same safety level as a bank accounts. Your gold coins may be lost and you might never get them back.
Do your research before you buy gold. You should also ensure that you do everything you can to protect your gold.
How do I open a Precious Metal IRA
First, decide if an Individual Retirement Account is right for you. If you do, you must open the account by completing Form 8606. To determine which type of IRA you qualify for, you will need to fill out Form 5204. This form should be completed within 60 days after opening the account. Once this has been completed, you can begin investing. You could also opt to make a contribution directly from your paycheck by using payroll deduction.
If you opt for a Roth IRA, you must complete Form 8903. Otherwise, the process will be identical to an ordinary IRA.
To qualify for a precious Metals IRA, there are specific requirements. The IRS requires that you are at least 18 years old and have earned an income. You cannot earn more than $110,000 annually ($220,000 if married filing jointly) in any one tax year. Additionally, you must make regular contributions. These rules apply to contributions made directly or through employer sponsorship.
An IRA for precious metals allows you to invest in gold and silver as well as platinum, rhodium, and even platinum. But, you'll only be able to purchase physical bullion. You won't have the ability to trade stocks or bonds.
Your precious metals IRA can be used to directly invest in precious metals-related companies. This option is offered by some IRA providers.
There are two major drawbacks to investing via an IRA in precious metals. They aren't as liquid as bonds or stocks. They are therefore more difficult to sell when necessary. Second, they don't generate dividends like stocks and bonds. You'll lose your money over time, rather than making it.
What tax is gold subject in an IRA
The fair market value of gold sold is the basis for tax. If you buy gold, there are no taxes. It is not considered income. If you sell it later, you'll have a taxable gain if the price goes up.
For loans, gold can be used to collateral. When you borrow against your assets, lenders try to find the highest return possible. For gold, this means selling it. However, there is no guarantee that the lender would do this. They might just hold onto it. They might decide to sell it. You lose potential profits in either case.
If you plan on using your gold as collateral, then you shouldn't lend against it. It's better to keep it alone.
Statistics
- 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)
- (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)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
External Links
bbb.org
forbes.com
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- Do you want to keep your IRA gold at home? It's Not Exactly Legal – WSJ
law.cornell.edu
- 7 U.S. Code SS7 – Designation of boards for trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement funds
How To
The History of Gold as an Asset
From the beginning of history, gold was a popular currency. It was popular because of its purity, divisibility. uniformity. scarcity and beauty. 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, one pound sterling was equal to 24 carats of silver; in France, one livre tournois was equal to 25 carats of gold; in Germany, one mark was equal to 28 carats of gold; etc.
The United States started issuing American coins in the 1860s made of 90% copper and 10% zinc. This resulted in a decline of foreign currency demand and an increase in the price. The price of gold dropped because the United States began to mint large quantities of gold coins. The U.S. government was unable to pay its debts due to too much money being in circulation. To do this, they decided that some of their excess gold would be sold 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. The gold price has gone up significantly in the years since. Even though the price fluctuates, gold is still one of best investments.
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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
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