Christine Lagarde, the president of the European Central Bank (ECB), revealed that her son defied her advice and invested in cryptocurrency. Despite her warnings, he ended up losing approximately 60% of his investment. Lagarde shared this information during a town hall event with students in Frankfurt, where she expressed her concerns about the risks associated with cryptocurrencies.
Son's Investment and Losses
Lagarde disclosed that her son, whose identity she did not reveal, invested in crypto despite her repeated advice against it. According to Reuters, she stated, "He ignored me royally, which is his privilege… And he lost almost all the money that he had invested." Although the amount lost was not significant, it constituted about 60% of his investment. After this loss, Lagarde had another conversation with her son, who reluctantly accepted her stance on crypto investments.
Lagarde's Opinion on Cryptocurrencies
Lagarde expressed her skepticism towards cryptocurrencies, stating that she holds a "very low opinion" of them. She believes that while individuals have the freedom to invest their money as they wish, they should not be allowed to engage in criminal activities or trades that are subject to criminal sanctions. Lagarde emphasized the need for regulation in the crypto space to protect investors and prevent illicit activities such as money laundering and terrorism financing.
Lagarde's Previous Statements on Crypto
This is not the first time Lagarde has voiced her concerns about cryptocurrencies. In June of last year, she warned about the potential risks they pose to financial stability. She also commented that crypto assets and decentralized finance (defi) have the potential to be problematic. Additionally, Lagarde has criticized cryptocurrencies, stating that they are "based on nothing" and are being used to evade sanctions.
ECB's Stance on Crypto Regulation
The European Central Bank has been advocating for global regulation of crypto assets. The aim is to protect uninformed investors and close loopholes that could be exploited by terrorists or criminals for money laundering purposes. The ECB has highlighted the need for comprehensive rules and regulations to govern the crypto industry and ensure its integrity.
ECB's Central Bank Digital Currency (CBDC) Project
The ECB recently announced that it would be advancing its central bank digital currency (CBDC) project to the next phase. After two years of investigation, the ECB is now entering the "preparation phase" for the digital euro. This phase will involve finalizing the digital euro rulebook and selecting providers who can develop the necessary platform and infrastructure for the digital currency.
Despite Christine Lagarde's warnings against investing in cryptocurrency, her son decided to go ahead and lost a significant portion of his investment. Lagarde's skepticism towards cryptocurrencies is well-known, and she believes that they should be regulated to prevent criminal activities. The ECB continues to advocate for global regulation in the crypto space, while also advancing its own CBDC project. The future of cryptocurrencies remains uncertain, and it is crucial for investors to be aware of the risks involved.
Frequently Asked Questions
Should you open a Precious Metal IRA
It all depends on your investment goals and risk tolerance.
Open an account today if your retirement plan calls for you to withdraw the funds.
Precious metals will appreciate over time. You also get diversification benefits.
The prices of silver and gold tend to be linked. This makes them better choices when you want to invest in both assets.
If you're not planning on using your money for retirement or don't want to take any risks, you probably shouldn't invest in precious metal IRAs.
Which type is best for an IRA?
When selecting an IRA for yourself, the most important thing is to find one that meets your lifestyle and goals. It is important to consider whether you want tax-deferred, maximized growth of your contributions, reduced taxes now and paid penalties later, or just avoid taxes.
If you have little money to invest, the Roth option might make sense. It is also an option if you are still working after age 59 1/2. You can expect to pay income taxes for any accounts that are withdrawn.
If you plan on retiring early, the traditional IRA may be better because you'll likely owe any taxes on the earnings. However, if your goal is to retire early, the traditional IRA might be more sensible. The Roth IRA allows you to withdraw some of your earnings or all without paying taxes.
What kind of IRA can you use to hold precious metals in?
Employers and financial institutions often offer Individual Retirement Accounts (IRA) as an investment vehicle. An IRA lets you contribute money that will grow tax-deferred to the time it is withdrawn.
An IRA allows you to save taxes and pay them later when you retire. This means more money deposited into your retirement plan today versus having to pay taxes on that money tomorrow.
An IRA is a great investment because your earnings and contributions are tax-free. You can withdraw funds at any time. You can face penalties if you withdraw funds before the deadline.
Additional contributions can be made to your IRA even after you turn 50, without any penalty. If you take out of your IRA during retirement you will owe income and a 10% federal penal.
Withdrawals before age 59 1/2 will be subject to a 5% IRS penal. A 3.4% IRS penalty is applicable to withdrawals made between the ages of 59 1/2 and 701/2.
There is a 6.2% penalty for withdrawals over $10,000 per calendar year.
Is a gold IRA worth interest?
It all depends on how big your investment is. If you have $100,000, then yes. If your assets are less than $100,000, it is no.
How much money you place in an IRA will determine how it earns interest.
If you invest more than $100,000 each year in retirement savings, you may want to open a regular brokerage instead.
While you may earn more interest there than elsewhere, you are also exposed to more risky investments. You don't want your entire portfolio to go bankrupt if the stock markets crash.
An IRA may be better for you if your annual income is less than $100,000. At least until the market recovers.
Can I store my gold IRA in my home?
An online brokerage account is the best option to protect your investment funds. You can access all of the same investment options that you would have if you worked with a traditional broker but don't need to be licensed or qualified. Plus, there are no fees for investing.
A lot of online brokers offer tools for managing your portfolio. Many online brokers allow you to download charts that will show how your investments are performing.
Are silver and gold IRAs a good idea for you?
This could be a good option for anyone looking to quickly invest in both silver or gold. But there are other options. You can contact us at any time with questions about these types investments. We are always here to help!
How much of your IRA should include precious metals?
You can protect yourself against inflation by investing your money in precious metals, such as silver and gold. It's not just for retirement. It can also be used to prepare for economic downturns.
While silver and gold have seen significant increases in the last few years, they are still safe investments since they don’t fluctuate as often as stocks. These materials are in constant demand.
Prices for silver and gold are predictable and usually stable. They tend to increase when the economy is growing and decrease during recessions. This makes them very valuable money-savers and long term investments.
You should invest 10 percent of your total portfolio into precious metals. That percentage could go higher if you want to diversify your portfolio further.
- Depending on your financial situation, most experts recommend you invest no more than 5% to 10% of your retirement funds in precious metals. (forbes.com)
- Silver must be 99.9% pure • (forbes.com)
- The IRS also allows American Eagle coins, even though they do not meet gold's 99.5% purity standard. (forbes.com)
- To qualify as IRA allowable precious metals and be accepted by STRATA, the following minimum fineness requirements must be met: Gold must be 99.5% pure, silver must be 99.9% pure, and platinum and palladium must both be 99.95% pure. (stratatrust.com)
- Gold IRA: Add some sparkle to your retirement nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How to decide if a Gold IRA is right for you
The most popular type of retirement account is the Individual Retirement Account (IRA). IRAs can also be purchased through banks, mutual funds, financial planners, and other institutions. Individuals are allowed to contribute up to $5,000 each year to IRAs without having to pay tax consequences. This amount can go into any IRA. There are limits to how much money you may put into certain IRAs. You cannot contribute to a Roth IRA if you are under 59 1/2 years of age. You must wait until your age 70 1/2 to make contributions if you are under 50. In addition, some people who work for their employer may be eligible for matching contributions from their employer.
There are two types of IRAs available: Roth and traditional. Traditional IRAs allow you to invest in stocks, bonds and other investments. A Roth IRA allows you to only invest in after-tax dollars. Contributions to a Roth IRA aren't taxed when they come out, but withdrawals taken from a Roth IRA are taxed once again. Some people combine both of these accounts. There are pros and cons to each type of IRA. So what should you consider before deciding which type of IRA works best for you? Three things to bear in mind before you decide which type of IRA is best for you:
Traditional IRA Pros
- Contribution options vary by company
- Employer match possible
- It is possible to save more than $5.000 per person
- Gain tax-deferred until withdrawal
- There may be restrictions based upon income level
- Maximum contribution limit for married couples is $5500 annually ($6,500 jointly).
- The minimum investment is $1,000
- You must start receiving mandatory distributions after age 70 1/2
- For an IRA to be opened, you must have at least five-years-old
- Transfer assets between IRAs is not possible
Roth IRA Pros:
- Contributions do not attract taxes
- Earnings increase tax-free
- No minimum distributions
- Stocks, bonds, and mutual fund investments are the only options.
- There is no maximum amount limit
- Transfer assets between IRAs is possible without restrictions
- An IRA can only be opened by those 55 and older
If you are thinking about opening an IRA, it is important to be aware that not all companies offer exactly the same IRAs. Some companies provide the choice of a Roth IRA as well as a traditional IRA. Some will let you combine them. It's also worth noting that different types of IRAs have different requirements. Roth IRAs don't have a minimum capital requirement. Traditional IRAs only require a $1,000 minimum investment.
The Bottom Line
The most important factor when choosing an IRA is whether you plan to pay taxes immediately or later. If you plan to retire in the next ten years, a traditional IRA might be the best choice. A Roth IRA may be a better choice for you. Either way, it's always a good idea to consult a professional about your retirement plans. It's important to have someone who is knowledgeable about the market and can suggest the best options for you.
By: Kevin Helms
Title: ECB President Christine Lagarde's Son Ignored Her Warnings and Lost 60% of Crypto Investment
Sourced From: news.bitcoin.com/ecb-chief-christine-lagarde-reveals-her-son-invests-in-crypto-despite-her-warnings-he-ignored-me-royally/
Published Date: Fri, 24 Nov 2023 21:30:00 +0000