Investment giant Vanguard has recently reinforced its anti-crypto and anti-bitcoin policy, going so far as to block customers from trading spot bitcoin exchange-traded funds (ETFs) that were recently approved by the U.S. Securities and Exchange Commission (SEC). This decision has sparked controversy in the cryptocurrency community, with Cathie Wood, CEO of Ark Invest, criticizing Vanguard's stance.
Vanguard's Anti-Crypto/Bitcoin Policy
In addition to disallowing the purchase of spot bitcoin ETFs on its platform, Vanguard has announced that it will no longer accept the purchase of cryptocurrency products, including bitcoin futures ETFs. According to a spokesperson for Vanguard, this policy change allows the company to focus on offering a core set of products and services that align with the needs of long-term investors.
Vanguard's view is that cryptocurrency products do not fit into their offer, which is primarily focused on asset classes such as equities, bonds, and cash. They see these traditional asset classes as the building blocks of a well-balanced, long-term investment portfolio.
Ark Invest CEO Criticizes Vanguard's Decision
Cathie Wood, CEO of Ark Invest, strongly disagrees with Vanguard's decision to deny its customers access to spot bitcoin ETFs. In her opinion, Vanguard's move is a strategic blunder. Wood believes that the world is changing and that new financial rails, such as cryptocurrencies and blockchain technology, will be successful in reducing friction in the financial system.
Wood argues that by not embracing these innovations, Vanguard is hindering its investors from participating in the first global, decentralized, private, and rules-based monetary system in history. She believes that the decentralized nature of cryptocurrencies and blockchain technology will ultimately solve many of the current frictions in the financial system.
What's Next for Vanguard?
Vanguard's decision to double down on its anti-bitcoin and anti-crypto policy has drawn criticism from the cryptocurrency community. However, it remains to be seen whether this stance will significantly impact Vanguard's position in the market.
As the cryptocurrency industry continues to evolve and gain mainstream acceptance, it is possible that Vanguard may reconsider its position in the future. For now, investors looking to include cryptocurrencies in their portfolios will need to explore alternative platforms and investment options.
What are your thoughts on Vanguard's anti-bitcoin and anti-crypto policy? Share your opinions in the comments below.
Frequently Asked Questions
How much should your IRA include precious metals
It is important to remember that precious metals can be a good investment for anyone. It doesn't matter how rich you are to invest in precious metals. You can actually make money without spending a lot on gold or silver investments.
You might also be interested in buying physical coins, such bullion rounds or bars. It is possible to also purchase shares in companies that make precious metals. Your retirement plan provider may offer an IRA rollingover program.
You will still reap the benefits of owning precious metals, regardless of which option you choose. Even though they aren't stocks, they still offer the possibility of long-term growth.
And unlike traditional investments, they tend to increase in value over time. If you decide to sell your investment, you will likely make more than with traditional investments.
Who owns the gold in a Gold IRA?
The IRS considers any individual who holds gold “a form of income” that is subject to taxation.
You must have gold at least $10,000 and it must be stored for at the least five years in order to take advantage of this tax-free status.
Owning gold can also help protect against inflation and price volatility, but it doesn't make sense to hold gold if you're not going to use it.
If you plan to sell the gold one day, you will need to report its worth. This will affect how much capital gains tax you owe on cash you have invested.
You should consult a financial planner or accountant to see what options are available to you.
Which precious metals are best to invest in retirement?
Gold and silver are the best precious metal investments. They're both easy to buy and sell and have been around forever. These are great options to diversify your portfolio.
Gold: Gold is one the oldest forms currency known to man. It is stable and very secure. This makes it a good option to preserve wealth in uncertain times.
Silver: Silver is a popular investment choice. This is a great choice for people who want to avoid volatility. Silver tends instead to go up than down, which is unlike gold.
Platinum: A new form of precious metal, platinum is growing in popularity. Like gold and silver, it's very durable and resistant to corrosion. It is however more expensive than its counterparts.
Rhodium: The catalytic converters use Rhodium. It is also used as a jewelry material. It's also relatively inexpensive compared to other precious metals.
Palladium (or Palladium): Palladium can be compared to platinum, but is much more common. It's also less expensive. For these reasons, it's become a favorite among investors looking to add precious metals to their portfolios.
What amount should I invest in my Roth IRA?
Roth IRAs can be used to save taxes on your retirement funds. 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. This means that regardless of how much you contribute to an account, you cannot take out any more than you initially contributed. If you take out more than the initial contribution, you must pay tax.
You cannot withhold your earnings from income taxes. So, when you withdraw, you'll pay taxes on those earnings. Let's take, for example, $5,000 in annual Roth IRA contributions. Let's say you earn $10,000 each year after contributing. You would owe $3,500 in federal income taxes on the earnings. This leaves you with $6,500 remaining. This is the maximum amount you can withdraw because you are limited to what you initially contributed.
The $4,000 you take out of your earnings would be subject to taxes. You'd still owe $1,500 in taxes. On top of that, you'd lose half of the earnings you had taken out because they would be taxed again at 50% (half of 40%). So, even though you ended up with $7,000 in your Roth IRA, you only got back $4,000.
Two types of Roth IRAs are available: Roth and traditional. A traditional IRA allows for you to deduct pretax contributions of your taxable income. When you retire, you can use your traditional IRA to withdraw your contribution balance plus interest. You have the option to withdraw any amount from a traditional IRA.
Roth IRAs are not allowed to allow you deductions for contributions. However, once you retire, you can withdraw your entire contribution plus accrued interest. There is no minimum withdrawal amount, unlike traditional IRAs. It doesn't matter if you are 70 1/2 or older before you withdraw your contribution.
Statistics
- 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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (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)
- You can only purchase gold bars at least 99.5% purity. (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)
External Links
law.cornell.edu
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement account
forbes.com
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
wsj.com
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- Do you want to keep your IRA gold at home? It's Not Exactly Lawful – WSJ
cftc.gov
How To
Guidelines for Gold Roth IRA
It is best to start saving early for retirement. Start saving as soon and as often as you're eligible (usually around 50 years old) and keep going until retirement. It's vital to contribute enough money each year to ensure adequate growth on an ongoing basis.
You may also wish to take advantage of tax-free investments such as a SIMPLE IRA, SEP IRA, and traditional 401(k). These savings vehicles permit you to make contributions, but not pay any tax until your earnings are withdrawn. This makes them great options for people who don't have access to employer matching funds.
It is important to save consistently over time. You will lose any potential tax advantages if you don't contribute enough.
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By: Kevin Helms
Title: Vanguard Intensifies its Anti-Bitcoin and Anti-Crypto Policy, Drawing Criticism from Ark Invest CEO
Sourced From: news.bitcoin.com/vanguard-deepens-anti-crypto-stance-after-disallowing-spot-bitcoin-etf-trading-ark-ceo-says-its-a-terrible-mistake/
Published Date: Sun, 14 Jan 2024 07:30:42 +0000
