Robert Kiyosaki's Latest Market Crash Warning
Renowned author and Rich Dad Poor Dad co-author, Robert Kiyosaki, has once again sounded the alarm on the imminent crash of the stock and bond markets. With the stock market continuing its upward climb, Kiyosaki warns against being deceived by the belief that the economy is strong. In fact, he goes so far as to caution that the next crash may even result in a depression.
Kiyosaki, known for his bestselling book Rich Dad Poor Dad, which has remained on the New York Times Best Seller List for over six years and has sold more than 32 million copies worldwide, took to social media platform X to express his concerns. He stated, "The stock market is climbing higher and higher. Suckers actually believe the economy is strong. Don't be fooled. The Magnificent 7 financed by U.S. government dollars keeps the stock market up."
The Magnificent 7 and Their Role in the Market
The Magnificent 7 refers to a group of mega-cap tech companies, including Tesla, Meta, Alphabet, Amazon, Apple, Microsoft, and Nvidia. These companies, heavily supported by U.S. government funding, have played a significant role in driving the stock market to new heights.
Kiyosaki's Lack of Trust in Financial Institutions
Kiyosaki's warnings about market crashes are not new. He has consistently expressed his lack of trust in financial institutions such as the Federal Reserve, the Biden administration, the Treasury Department, and Wall Street bankers. According to Kiyosaki, the actions of these entities will ultimately lead the U.S. economy into a depression and potentially even a war.
Last month, Kiyosaki raised concerns about the growing debt of the U.S. government and urged investors to consider buying bitcoin as a safeguard. He has also emphasized how owning BTC can protect against the devaluation of traditional currencies and the erosion of wealth. In light of the recent approval of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC), Kiyosaki revealed that he has increased his bitcoin holdings. He predicts that the price of BTC will soon reach $150K and advises investors to closely monitor the upcoming Bitcoin halving.
Do Kiyosaki's Warnings Hold Weight?
Given Kiyosaki's track record and expertise in financial matters, his warnings about the impending crash of the stock and bond markets should not be taken lightly. As an individual who has consistently demonstrated a deep understanding of economic trends, Kiyosaki's insights have proven invaluable to many investors.
What are your thoughts on Robert Kiyosaki's latest warning? Do you believe the stock and bond markets are on the brink of a crash? Share your opinions in the comments section below.
Frequently Asked Questions
What is the tax on gold in an IRA
The tax on the sale of gold is based on its fair market value when sold. When you purchase gold, you don't have to pay any taxes. It is not income. If you sell it later you will have a taxable profit if the price goes down.
For loans, gold can be used to collateral. When you borrow against your assets, lenders try to find the highest return possible. This often means selling gold. However, there is no guarantee that the lender would do this. They may just keep it. They may decide to resell it. You lose potential profits in either case.
If you plan on using your gold as collateral, then you shouldn't lend against it. Otherwise, it's better to leave it alone.
How much of your IRA should include precious metals?
It is important to remember that precious metals can be a good investment for anyone. They don't require you to be wealthy to invest in them. There are many ways that you can make money with gold and silver investments, even if you don't have much money.
You might consider purchasing physical coins, such as bullion bars and rounds. You could also buy shares in companies that produce precious metals. You might also want to use an IRA rollover program offered through your retirement plan provider.
Regardless of your choice, you'll still benefit from owning precious metals. Although they aren’t stocks, they offer the possibility for long-term gains.
They also tend to appreciate over time, unlike traditional investments. You'll probably make more money if your investment is sold down the line than traditional investments.
How to Open a Precious Metal IRA
First, you must decide if your Individual Retirement Account (IRA) is what you want. Once you have decided to open an Individual Retirement Account (IRA), you will need to complete Form 806. Next, fill out Form 5204. This will determine the type of IRA that you are eligible for. This form must be submitted within 60 days of the account opening. Once you have completed this form, it is possible to begin investing. You may also choose to contribute directly from your paycheck using payroll deduction.
To get a Roth IRA, complete Form 8903. Otherwise, the process will be identical to an ordinary IRA.
To be eligible to have a precious metals IRA you must meet certain criteria. The IRS says you must be 18 years old and have earned income. Your annual earnings cannot exceed $110,000 ($220,000 if you are married and file jointly) for any tax year. Additionally, you must make regular contributions. These rules will apply regardless of whether your contributions are made through an employer or directly out of your paychecks.
A precious metals IRA can be used to invest in palladium or platinum, gold, silver, palladium or rhodium. 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 can be provided by some IRA companies.
However, investing in precious metals via an IRA has two serious drawbacks. First, they don't have the same liquidity as stocks or bonds. It's also more difficult to sell them when they are needed. They also don't pay dividends, like stocks and bonds. So, you'll lose money over time rather than gain it.
What does gold do as an investment?
The supply and demand for gold affect the price of gold. It is also affected by interest rates.
Due to their limited supply, gold prices fluctuate. There is also a risk in owning gold, as you must store it somewhere.
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 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)
- (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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
External Links
finance.yahoo.com
investopedia.com
forbes.com
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
bbb.org
How To
Three ways to invest in gold for retirement
It is important to understand the role of gold in your retirement plan. There are many ways to invest in gold if you have a 401k account at work. You may also be interested in investing in gold beyond your workplace. One example is opening a custodial accounts at Fidelity Investments if an IRA (Individual Retirement Account), if you already own one. If you don't have any precious metals yet, you might want to buy them from a reputable dealer.
These are three easy rules to remember if you invest in gold.
- Buy Gold With Your Cash – Do not use credit cards to purchase gold. Instead, deposit cash into your accounts. This will protect you from inflation and help keep your purchasing power high.
- Physical Gold Coins You Should Buy – Physical gold coins should be purchased over a paper certificate. The reason for this is that physical gold coins are much more easily sold than certificates. Physical gold coins don't require storage fees.
- Diversify Your Portfolio – Never put all of your eggs in one basket. In other words, spread your wealth around by investing in different assets. This helps to reduce risk and provides more flexibility when markets are volatile.
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