Lightning Ventures, a leading VC firm specializing in the Bitcoin industry, unveiled Thunder Funder, a Regulation Crowdfunding (Reg CF) platform, during the Bitcoin 2024 conference last week. This innovative platform is designed to democratize early-stage investments in Bitcoin and open-source startups, enabling both accredited and non-accredited investors to get involved.
Opening Doors for Retail Investors
Thunder Funder operates within the Reg CF framework, allowing companies to raise up to $5 million annually from the general public. This groundbreaking approach provides retail investors with access to investment opportunities in startups that were previously out of reach, particularly in the thriving Bitcoin and open-source sectors.
Empowering Retail Investors
Having already allocated over $6.8 million to nearly 40 Bitcoin ventures, Lightning Ventures is now expanding its reach with Thunder Funder. Mike Jarmuz, the CEO of Thunder Funder, expressed excitement about engaging a new cohort of retail investors through the platform.
A Strong Team Driving Innovation
The core team behind Thunder Funder includes CTO Uncle Rockstar, a key contributor to BTCPay Server, and COO Vivek Patel, formerly associated with PrimeTrust. Notable investors such as Max Keiser, Swan Bitcoin CEO Cory Klippsten's El Zonte Capital, Brad Mills, and Chris Hunter have demonstrated confidence in the platform by participating in Lightning Ventures' $500,000 pre-seed funding round.
Direct Funding for Innovation
With Thunder Funder, individual investors now have the opportunity to support cutting-edge Bitcoin projects that were traditionally reserved for accredited and institutional investors. This shift has the potential to spur rapid advancements within the Bitcoin and open-source ecosystem, driving innovation and progress.
Frequently Asked Questions
Should You Buy Gold?
In times past, gold was considered a safe haven for investors in times of economic trouble. However, today many people are turning away from traditional investments such as stocks and bonds and instead looking toward precious metals such as gold.
While gold prices have been rising in recent years they are still low relative to other commodities, such as silver and oil.
Experts believe this could change soon. They say that gold prices could rise dramatically with another global financial crisis.
They also note that gold is increasingly popular because of its perceived intrinsic value and potential return.
If you are considering investing in gold, here are some things that you need to keep in mind.
- The first thing to do is assess whether you actually need the money you're putting aside for retirement. It is possible to save enough money to retire without investing in gold. However, when you retire at age 65, gold can provide additional protection.
- You should also be aware of what you are getting into before you buy gold. There are many types of gold IRA accounts. Each type offers varying levels and levels of security.
- Keep in mind that gold may not be as secure as a bank deposit. If you lose your gold coins, you may never recover them.
If you are thinking of buying gold, do your research. And if you already own gold, ensure you're doing everything possible to protect it.
How to open a Precious Metal IRA
First, decide if an Individual Retirement Account is right for you. You must complete Form 8606 to open an account. You will then need to complete Form 5204 in order to determine which type IRA you are eligible. This form should not be completed more than 60 days after the account is opened. Once this is done, you can start investing. You can also contribute directly to your paycheck via payroll deduction.
For a Roth IRA you will need to complete Form 8903. Otherwise, the process is identical to an ordinary IRA.
You'll need to meet specific requirements to qualify for a precious metals IRA. The IRS requires that you are at least 18 years old and have earned an income. For any tax year, your earnings must not exceed $110,000 ($220,000 for married filing jointly). You must also contribute regularly. These rules apply whether you're contributing through an employer or directly from your paychecks.
You can invest in precious metals IRAs to buy gold, palladium and platinum. However, you won't be able purchase physical bullion. This means you won’t be able to trade stocks and bonds.
Your precious metals IRA can be used to directly invest in precious metals-related companies. This option can be provided by some IRA companies.
An IRA is a great way to invest in precious metals. However, there are two important drawbacks. First, they're not as liquid as stocks or bonds. This makes it harder to sell them when needed. Second, they are not able to generate dividends as stocks and bonds. Therefore, you will lose more money than you gain over time.
How is gold taxed within a Roth IRA
The tax on an investment account is based on its current value, not what you originally paid. So if you invest $1,000 in a mutual fund or stock and then sell it later, any gains are subject to taxes.
The money can be withdrawn tax-free if it's deposited in a traditional IRA (or 401(k)). Taxes are only charged on capital gains or dividends earned, which only apply to investments longer than one calendar year.
Each state has its own rules regarding these accounts. For example, in Maryland, you must take withdrawals within 60 days after reaching age 59 1/2 . Massachusetts allows you up to April 1st. And in New York, you have until age 70 1/2 . To avoid penalties, you should plan ahead and take distributions as soon as possible.
How much money should my Roth IRA be funded?
Roth IRAs are retirement accounts where you deposit your own money tax-free. The account cannot be withdrawn from until you are 59 1/2. You must adhere to certain rules if you are going to withdraw any of your contributions prior. 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. If you decide to withdraw more money than what you contributed initially, you will need to pay taxes.
The second rule says that you cannot withdraw your earnings without paying income tax. Withdrawing your earnings will result in you paying taxes. For example, let's say that you contribute $5,000 to your Roth IRA every year. Let's also assume that you make $10,000 per year from your Roth IRA contributions. On the earnings, you would be responsible for $3,500 federal income taxes. That leaves you with only $6,500 left. This is the maximum amount you can withdraw because you are limited to what you initially contributed.
Therefore, even if you take $4,000 out of your earnings you still owe taxes on $1,500. Additionally, half of your earnings would be lost because they will be taxed at 50% (half the 40%). So even though your Roth IRA ended up having $7,000, you only got $4,000.
Two types of Roth IRAs are available: Roth and traditional. Traditional IRAs allow you to deduct pretax contributions from your taxable income. You can withdraw your contributions plus interest from your traditional IRA when you retire. There is no limit on how much you can withdraw from a traditional IRA.
Roth IRAs are not allowed to allow you deductions for contributions. After you have retired, the full amount of your contributions and accrued interest can be withdrawn. There is no minimum withdrawal limit, unlike traditional IRAs. It doesn't matter if you are 70 1/2 or older before you withdraw your contribution.
What is the value of a gold IRA
The benefits of a gold IRA are many. It is an investment vehicle that can diversify your portfolio. You control how much money goes into each account and 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. These IRAs are available at all banks and brokerage houses. You do not need to worry about fees and penalties when you withdraw money.
There are also drawbacks. Gold has always been volatile. Understanding why you want to invest in gold is essential. Are you looking for safety or growth? Are you trying to find safety or growth? Only when you are clear about the facts will you be able take an informed decision.
You might want to buy more gold if you intend to keep your gold IRA for a long time. One ounce won't be enough to meet all your needs. Depending upon what you plan to do, you could need several ounces.
A small amount is sufficient if you plan to sell your gold. Even a single ounce can suffice. These funds won't allow you to purchase anything else.
Is gold a good investment IRA?
Anyone who is looking to save money can make gold an excellent investment. You can also diversify your portfolio by investing in gold. But there is more to gold than meets the eye.
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”.
But gold, unlike paper currency, which is created by governments, is mined out from the ground. This makes it highly valuable as it is hard and rare to produce.
Gold prices fluctuate based on demand and supply. The strength of the economy means people spend more, and so, there is less demand for gold. The result is that gold's value increases.
On the flip side, when the economy slows down, people hoard cash instead of spending it. This increases the production of gold, which in turn drives down its value.
It is this reason that gold investing makes sense for businesses and individuals. You will benefit from economic growth if you invest in gold.
Your investments will also generate interest, which can help you increase your wealth. Additionally, you won't lose cash if the gold price falls.
What proportion of your portfolio should you have in precious metals
To answer this question, we must first understand what precious metals are. Precious Metals are elements that have a very high relative value to other commodities. This makes them valuable in investment and trading. Gold is by far the most common precious metal traded today.
But, there are other types of precious metals available, including platinum and silver. The price volatility of gold can be unpredictable, but it is generally stable during periods of economic turmoil. It is not affected by inflation or deflation.
In general, all precious metals have a tendency to go up with the market. They do not always move in the same direction. The price of gold tends to rise when the economy is not doing well, but the prices of the other precious metals tends downwards. This is because investors expect lower interest rates, making bonds less attractive investments.
However, when an economy is strong, the reverse effect occurs. Investors want safe assets such Treasury Bonds and are less inclined to demand precious metals. These precious metals are rare and become more costly.
To maximize your profits when investing in precious metals, diversify across different precious metals. Additionally, since the prices of precious metals tend to rise and fall together, it's best to invest in several different types of precious metals rather than just focusing on one type.
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)
- 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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.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
irs.gov
bbb.org
wsj.com
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- How do you keep your IRA Gold at Home? It's Not Exactly Legal – WSJ
finance.yahoo.com
How To
The best way online to buy gold or silver
You must first understand the workings of gold before you can purchase it. Precious metals like gold are similar to platinum. Because of its resistance to corrosion and durability, it is very rare. It is hard to use, so most people prefer jewelry made of it to real bars of gold.
There are two types currently available: legal tender and bullion. The legal tender coins are issued for circulation in a country. They usually have denominations such as $1, $5, $10, and so on.
Bullion coins are minted for investment purposes only, and their values increase over time due to inflation.
They aren't circulated in any currency exchange systems. For example, a person who buys $100 worth or gold gets 100 grams. This gold has a $100 price. For every dollar spent, the buyer gets 1 gram of Gold.
You should also know where to buy your gold. There are a few options if you wish to buy gold directly from a dealer. First, go to your local coin shop. You could also look into eBay or other reputable websites. You can also purchase gold through private online sellers.
Private sellers are individuals who offer to sell gold at retail or wholesale prices. Private sellers charge a 10% to 15% commission per transaction. Private sellers will typically get you less than a coin shop, eBay or other online retailers. This option is often a great one for investors in gold, as it gives you greater control over the item's value.
You can also invest in gold physical. Physical gold is much easier to store than paper certificates, but you still have to worry about storing it safely. It is important to keep your physical gold safe in an impenetrable box such as a vault, safety deposit box or other secure container.
A bank or pawnshop can help you buy gold. A bank can give you a loan up to the amount you intend to invest in Gold. These are small businesses that let customers borrow money against the items they bring to them. Banks charge higher interest rates than those offered by pawn shops.
You can also ask for help to purchase gold. Selling gold is easy too. It is easy to sell gold by contacting a company like GoldMoney.com. You can create a simple account immediately and begin receiving payments.
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