Eric Trump, the Executive Vice President of the Trump Organization and son of United States President-elect Donald Trump, shared his views on Bitcoin in an exclusive backstage interview with Frank Corva, Business-to-Business Correspondent for Bitcoin Magazine, at the Bitcoin MENA 2024 Conference. Trump emphasized Bitcoin's transformative potential and its unique advantages as a hedge for traditional investors, comparing it to real estate, which is the cornerstone of his family's business.
From Real Estate to Bitcoin
Trump, known as a "bricks-and-mortar guy," discussed his family's deep ties to real estate. He highlighted the tangible nature of real estate and its energy but also acknowledged the limitations of physical assets, such as their lack of liquidity and inability to adapt to global market changes. Trump pointed out that while real estate offers benefits like leverage and tax advantages, its main drawback is its illiquidity. This is where he sees Bitcoin as a revolutionary alternative, providing instant liquidity that real estate lacks.
Bitcoin as a Transportable and Accessible Asset
Trump pointed out Bitcoin's portability compared to real estate. While physical assets like buildings cannot be easily moved to different markets, Bitcoin, being digital, can be transferred anywhere. He also praised Bitcoin for its elimination of intermediaries and cost reduction, as it does not involve brokers, bankers, lawyers, title companies, or middlemen. Unlike real estate, Bitcoin carries no risk of physical damage from disasters like fires or floods.
Democratizing Investment Opportunities
Besides its technical advantages, Trump highlighted Bitcoin's role in democratizing wealth-building opportunities. While real estate investments often demand substantial capital and expertise, Bitcoin offers a more accessible entry point for individuals with limited resources. According to Trump, building or buying a house is out of reach for most people, but Bitcoin provides an asset that is not only accessible but historically offers higher returns than many real estate investments. He also emphasized how Bitcoin can empower people in developing countries by giving them a chance to invest and transform their lives.
Eric Trump's perspective on Bitcoin as a hedge for real estate investors adds to the ongoing discussion on how Bitcoin could change the path to homeownership, especially for younger generations priced out of traditional housing markets. His views align with the growing recognition of Bitcoin as a hedge against traditional assets, offering investors liquidity, accessibility, and global versatility.
"Make No Mistake: It’s the Future"
Trump, a supporter of long-term investment strategies, firmly believes in Bitcoin's future. He stated, "Make no mistake: it’s the future. The people who embrace it early are going to succeed. Those who don’t will get left behind." Trump's insights reflect the increasing interest in Bitcoin among influential figures and its evolution from a speculative asset to a crucial component of modern investment portfolios.
Frequently Asked Questions
What are the advantages of a IRA with a gold component?
There are many benefits to a gold IRA. It can be used to diversify portfolios and is an investment vehicle. 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. If you are planning to retire early, this makes it easy to transition.
The best thing is that investing in gold IRAs doesn't require any special skills. They're available at most banks and brokerage firms. Withdrawals can happen automatically, without any fees or penalties.
That said, there are drawbacks too. Gold is historically volatile. Understanding why you invest in gold is crucial. Are you looking for safety or growth? Are you trying to find safety or growth? Only by knowing the answer, you will be able to make an informed choice.
If you want to keep your gold IRA open for life, you might consider purchasing more than one ounce. A single ounce will not be sufficient to meet all your requirements. Depending on your plans for using your gold, you may need multiple ounces.
A small amount is sufficient if you plan to sell your gold. Even a single ounce can suffice. But, those funds will not allow you to buy anything.
What should I pay into 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 deposit amount originally made) is not transferable. You cannot withdraw more than the original amount you contributed. If you wish to withdraw more than you originally contributed, you will have to pay taxes.
The second rule is that you cannot withdraw your earnings without paying income taxes. Withdrawing your earnings will result in you paying taxes. Let's assume that you contribute $5,000 each year to your Roth IRA. Let's say you earn $10,000 each year after contributing. You would owe $3,500 in federal income taxes on the earnings. You would have $6,500 less. Since you're limited to taking out only what you initially contributed, that's all you could take out.
You would still owe tax on $1,500 if you took out $4,000 of your earnings. 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 received $7,000 in Roth IRA contributions, you only received $4,000.
There are two types of Roth IRAs: Traditional and Roth. Traditional IRAs allow for pre-tax deductions from your taxable earnings. You can withdraw your contributions plus interest from your traditional IRA when you retire. There are no restrictions on the amount you can withdraw from a Traditional IRA.
Roth IRAs don't allow you deduct contributions. But once you've retired, you can withdraw the entire contribution amount plus any 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.
How Do You Make a Withdrawal from a Precious Metal IRA?
First, decide if it is possible to withdraw funds from an IRA. Next, ensure you have enough cash on hand to pay any penalties or fees that could be associated with withdrawing funds.
A taxable brokerage account is a better option than an IRA if you are prepared to pay a penalty for early withdrawals. This option will require you to pay taxes on the amount that you withdraw.
Next, figure out how much money will be taken out of your IRA. The calculation is influenced by several factors such as your age at withdrawal, the length of time you have owned the account and whether or not you plan to continue contributing to retirement plans.
Once you know how much of your total savings to convert to cash, it's time to choose the type of IRA that you want. 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.
Once the calculations have been completed, it's time to open a brokerage accounts. A majority of brokers offer free signup bonuses, as well as other promotions, to get people to open accounts. To avoid unnecessary fees, however, try opening an account using a debit card rather than a credit card.
When you do finally decide to withdraw from your precious metallic IRA, you will need a safe space where you can safely store your coins. Some storage facilities can accept bullion bar, while others require you buy individual coins. You will need to weigh each one before making a decision.
Because you don't have to store individual coins, bullion bars take up less space than other items. However, you'll need to count every coin individually. On the flip side, storing individual coins allows you to easily track their value.
Some people prefer to keep coins safe in a vault. Others prefer to place them in safe deposit boxes. Whatever method you choose to store your bullion, you should ensure it is safe and secure so you can enjoy its many benefits for many years.
Do you need to open a Precious Metal IRA
It is essential to be aware of the fact that precious metals do not have insurance coverage before opening an IRA. If you lose money in your investment, nothing can be done to recover it. This includes all investments that are lost to theft, fire, flood, or other causes.
It is best to invest in physical gold coins and silver coins to avoid this type loss. These coins have been around for thousands and represent a real asset that can never be lost. If you were to offer them for sale today, they would likely fetch you more than you paid when you bought them.
Consider a reputable business that offers low rates and good products when opening an IRA. It's also wise to consider using a third-party custodian who will keep your assets safe while giving you access to them anytime.
When you open an account, keep in mind that you won't receive any returns until your retirement. Don't forget the future!
Who is entitled to the gold in a IRA that holds gold?
An individual who has gold is considered to be a “form of money” by the IRS and 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.
Although gold can help to prevent inflation and price volatility, it's not sensible to have it if it's not going to be used.
If you plan to eventually sell the gold, you'll need a report on its value. This could impact the amount of capital gains taxes your owe if you cash in your investments.
To find out what options you have, consult an accountant or financial planner.
Statistics
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (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)
- (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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (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)
External Links
finance.yahoo.com
irs.gov
law.cornell.edu
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement accounts
