Renowned author Robert Kiyosaki, known for his book "Rich Dad Poor Dad," has issued a cautionary warning to investors, emphasizing that fiat money is not a safe investment. Kiyosaki highlights the fact that central banks are buying gold to protect themselves, and he advises investors to take action to safeguard their assets. His recommendation is to invest in gold, silver, and bitcoin to mitigate the risks associated with central bankers.
Is Fiat Money Safe? Robert Kiyosaki Says 'Hell No'
Robert Kiyosaki, co-author of the bestselling book "Rich Dad Poor Dad," urges investors to be cautious about the safety of fiat money. "Rich Dad Poor Dad" has remained on the New York Times Best Seller List for over six years and has sold more than 32 million copies worldwide in more than 109 countries and 51 languages.
In a recent statement, Kiyosaki expressed his concerns:
"Central banks like the Fed are buying gold. Does this mean fiat money is safe? Hell no!"
Kiyosaki believes that central bankers are protecting their own interests rather than the interests of the general public. He advises investors to educate themselves and take proactive steps to safeguard their wealth by investing in gold, silver, and bitcoin.
According to the World Gold Council, central banks worldwide have been increasing their gold purchases. In the third quarter alone, they bought a total of 337 metric tons, bringing the year-to-date purchases to a record high of 800 metric tons.
Kiyosaki has consistently voiced his concerns about fiat currencies, referring to them as "fake money." In contrast, he considers gold and silver as "God's money" and views bitcoin as "people's money." In September, he stated that "crypto is the future" and proclaimed that fiat money is on its way out. He strongly recommends that investors diversify their portfolios by investing in gold, silver, and bitcoin as soon as possible.
Furthermore, Kiyosaki has repeatedly warned about the potential collapse of the U.S. dollar, attributing it to the actions of the Federal Reserve. He believes that inflation is being caused by the Federal Reserve, leading to the downfall of the U.S. economy. In July, he predicted that the end of the USD is imminent, and in April, he warned of the impending death of the U.S. dollar. Additionally, he expects bitcoin to become invaluable once the Federal Reserve introduces a central bank digital currency (CBDC).
Do you share Robert Kiyosaki's concerns about the safety of fiat money? Let us know your thoughts in the comments below.
Frequently Asked Questions
How can I withdraw from a Precious metal IRA?
First, determine if you would like to withdraw money directly from an IRA. Make sure you have enough cash in your account to cover any fees, penalties, or charges that may be associated with withdrawing money from an IRA.
Consider opening a taxable brokerage instead of an IRA if it is possible to pay a penalty if your withdrawal is made before the deadline. This option will require you to pay taxes on the amount that you withdraw.
Next, determine how much money you plan to withdraw from your IRA. This calculation depends on several factors, including the age when you withdraw the money, how long you've owned the account, and whether you intend to continue contributing to your retirement plan.
Once you determine the percentage of your total saved money you want to convert into cash, then you need to choose which type IRA you will use. Traditional IRAs allow you to withdraw funds tax-free when you turn 59 1/2 while Roth IRAs charge income taxes upfront but let you access those earnings later without paying additional taxes.
Finally, you'll need to open a brokerage account once these calculations are completed. Many brokers offer signup bonuses or other promotions to encourage people to open accounts. It is better to open an account with a debit than a creditcard in order to avoid any unnecessary fees.
When it comes time to withdraw your precious metal IRA funds, you will need a safe location where you can keep your coins. Some storage areas will accept bullion, while others require you to purchase individual coins. Before you choose one, weigh the pros and cons.
Because you don't have to store individual coins, bullion bars take up less space than other items. But you will have to count each coin separately. However, individual coins can be stored to make it easy to track their value.
Some prefer to keep their money in a vault. Others prefer to place them in safe deposit boxes. No matter what method you use, it is important to keep your bullion safe so that you can reap its benefits for many more years.
What are the benefits of a gold IRA
The benefits of a gold IRA are many. It can be used to diversify portfolios and is an investment vehicle. You decide how much money is put in each account and when it is withdrawn.
You have the option of rolling over funds from other retirement account into a gold IRA. This makes for an easy transition if you decide to retire early.
The best part is that you don't need special skills to invest in gold IRAs. They are offered by most banks and brokerage companies. Withdrawals can happen automatically, without any fees or penalties.
But there are downsides. Gold has historically been volatile. Understanding why you invest in gold is crucial. Are you looking for growth or safety? Are you looking for growth or insurance? Only after you have this information will you make an informed decision.
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 upon what you plan to do, you could need several ounces.
You don’t necessarily need a lot if you’re looking to sell your gold. You can even get by with less than one ounce. You won't be capable of buying anything else with these funds.
How is gold taxed within a Roth IRA
An investment account's tax rate is determined based upon its current value, rather than what you originally paid. If you invest $1,000 in mutual funds or stocks and then later sell them, all gains are subjected to taxes.
If you place the money in a traditional IRA, 401(k), or other retirement plan, there is no tax when you take it out. Capital gains and dividends earn you no tax. This applies only to investments made for longer than one-year.
These accounts are subject to different rules depending on where you live. For example, in Maryland, you must take withdrawals within 60 days after reaching age 59 1/2 . Massachusetts allows you to delay withdrawals until April 1. New York has a maximum age limit of 70 1/2. To avoid penalties, plan ahead so you can take distributions at the right time.
What should I pay into my Roth IRA
Roth IRAs let you save tax on retirement by allowing you to deposit your own money. These accounts are not allowed to be withdrawn before the age of 59 1/2. If you decide to withdraw some of your contributions, you will need to follow certain rules. First, your principal (the deposit amount originally made) is not transferable. This means that no matter how much you contribute, you can never take out more than what was initially contributed to this account. You must pay taxes on the difference if you want to take out more than what you initially contributed.
The second rule is that you cannot withdraw your earnings without paying income taxes. So, when you withdraw, you'll pay taxes on those earnings. Consider, for instance, that you contribute $5,000 per year to your Roth IRA. Let's further assume you earn $10,000 annually after contributing. The federal income tax on your earnings would amount to $3,500. This leaves you with $6,500 remaining. Since you're limited to taking out only what you initially contributed, that's all you could take out.
If you took $4,000 from your earnings, you would still owe taxes for the $1,500 remaining. In addition, 50% of your earnings will be subject to tax again (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. To withdraw your retirement contribution balance plus interest, your traditional IRA is available to you. There are no restrictions on the amount you can withdraw from a Traditional IRA.
A Roth IRA doesn't allow you to deduct your contributions. You can withdraw your entire contribution, plus accrued interests, after you retire. There is no minimum withdrawal requirement, unlike traditional IRAs. Your contribution can be withdrawn at any age, not just when you reach 70 1/2.
What is the Performance of Gold as an Investment?
The price of gold fluctuates based on supply and demand. Interest rates also have an impact on the price of gold.
Due to limited supplies, gold prices are subject to volatility. You must also store physical gold somewhere to avoid the risk of it becoming stale.
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. For you to determine the type and eligibility for which IRA, you need Form 5204. You must complete this form within 60 days of opening your account. Once this has been completed, you can begin investing. You may also choose to contribute directly from your paycheck using payroll deduction.
You must complete Form 8903 if you choose a Roth IRA. Otherwise, the process will be identical to an ordinary IRA.
To qualify for a precious Metals IRA, there are specific requirements. The IRS states that you must be at least 18 and have earned income. You can't earn more than $110,000 per annum ($220,000 in married filing jointly) for any given tax year. Contributions must be made on a regular basis. These rules apply whether you're contributing through an employer or directly from your paychecks.
An IRA for precious metals allows you to invest in gold and silver as well as platinum, rhodium, and even platinum. You can only purchase bullion in physical form. This means that you will not be allowed to trade shares 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.
However, there are two significant drawbacks to investing in precious metals via an IRA. First, they're not as liquid as stocks or bonds. It is therefore harder to sell them when required. They don't yield dividends like bonds and stocks. Also, they don't generate dividends like stocks and bonds. You will eventually lose money rather than make it.
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)
- 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)
- 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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
External Links
law.cornell.edu
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement plans
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 1991 – WSJ
- Do you want to keep your IRA gold at home? It's Not Exactly Lawful – WSJ
irs.gov
forbes.com
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How To
Investing with gold or stocks
It might seem risky to invest in gold as an investment vehicle these days. The reason behind this is that many people believe that gold is no longer profitable to invest in. This belief is due to the fact that many people see gold prices dropping because of the global economy. They believe they would lose their money if they invested gold. However, investing in gold can still provide significant benefits. Let's take a look at some of the benefits.
One of the oldest currencies known to man is gold. It has been used for thousands of years. It was used all around the world as a reserve of value. It continues to be used in South Africa, as a way of paying their citizens.
When deciding whether to invest in gold, the first thing you need to do is to decide what price per gram you are willing to pay. It is important to determine the price per gram you are willing and able to pay for gold bullion. If you don't know your current market rate, you could always contact a local jeweler and ask them what they think the price is.
It's worth noting, however, that while gold prices have fallen recently the cost of producing gold is on the rise. So while the price of gold has declined, production costs haven't changed.
You should also consider the amount of your intended purchase when considering whether you should buy or not. If you intend to only purchase enough gold to cover your wedding rings it may be a smart decision to not buy any gold. This is not a wise decision if you're looking to invest in long-term assets. It is possible to make a profit by selling your gold at higher prices than when you purchased it.
We hope this article helped you to gain a better appreciation of gold as a tool for investment. We strongly recommend that you research all available options before making any decisions. Only after you have done this can you make an informed choice.
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