Robert Kiyosaki: Bitcoin Is Your Best Protection
Robert Kiyosaki, the author of the popular book Rich Dad Poor Dad, is advising investors to prepare for hyperinflation and highlighting bitcoin as the best protection against it. With over 32 million copies sold in more than 109 countries, Rich Dad Poor Dad has been a staple on the New York Times Best Seller List for over six years.
In a recent social media post, Kiyosaki shared his experience in Germany, where he celebrated the 100-year anniversary of the hyperinflation that brought Adolf Hitler to power in 1923. He expressed concerns about whether hyperinflation is on the horizon and criticized the incompetence of government leaders.
To prepare for such a scenario, Kiyosaki recommended studying the hyperinflation experiences of Germany and Zimbabwe. He emphasized that assets like food, guns, gold, and silver will always hold value. However, he believes that bitcoin offers the best protection due to its nature as a decentralized currency controlled by the people, rather than governments.
This is not the first time Kiyosaki has warned about hyperinflation. In September, he explained that hyperinflation actually reduces the purchasing power of money, contrary to popular belief. He urged people to invest in gold, silver, and bitcoin to avoid being losers in such an unstable financial environment.
Kiyosaki has consistently advocated for gold, silver, and bitcoin as investments for uncertain times. He believes that these assets provide lifelong financial security and freedom. In fact, as early as April, Kiyosaki expressed his concerns about the decline of the U.S. dollar, stating that "America is dying."
Kiyosaki is not alone in his worries about hyperinflation. Former Twitter CEO Jack Dorsey and venture capitalist Balaji Srinivasan have also predicted its occurrence in the near future. Economist Peter Schiff has also warned about the risks of hyperinflation as a result of major Federal Reserve rate hikes.
In conclusion, Robert Kiyosaki, the bestselling author of Rich Dad Poor Dad, is advising investors to prepare for hyperinflation. He sees bitcoin as the best protection against it, emphasizing its decentralized nature and the control it gives to the people. Kiyosaki's views align with those of other prominent figures who have expressed concerns about hyperinflation. What are your thoughts on bitcoin as a safeguard against hyperinflation? Let us know in the comments below.
Frequently Asked Questions
What is the best way to hold physical gold?
Gold is money, not just paper currency or coinage. People have been using gold for thousands of years to store their wealth and protect it from economic instability and inflation. Today, investors use gold as part of a diversified portfolio because gold tends to do better during financial turmoil.
Many Americans now invest in precious metals. Although owning gold does not guarantee that you will make money investing in it, there are many reasons to consider adding gold into your retirement portfolio.
One reason is that gold has historically performed better than other assets during periods of financial panic. Gold prices rose nearly 100 percent between August 2011 and early 2013, while the S&P 500 fell 21 percent over the same period. Gold was one of the few assets that performed better than stocks during turbulent market conditions.
The best thing about gold investing is the fact that there's virtually no counterparty risk. You still have your shares even if your stock portfolio falls. However, if you have gold, your value will rise even if the company that you invested in defaults on its loans.
Gold provides liquidity. This allows you to sell your gold whenever you want, unlike many other investments. It makes sense to buy small quantities of gold, as it is more liquid than other investments. This allows for you to benefit from the short-term fluctuations of the gold market.
How does a gold IRA account work?
You can purchase physical bullion gold coins at any point in time. You don't have a retirement date to invest in gold.
An IRA lets you keep your gold for life. Your gold holdings will not be subject to tax when you are gone.
Your heirs will inherit your gold, and not pay capital gains taxes. You don't need to include your gold in your final estate report, as it isn't part of the estate.
To open a gold IRA, you will first need to create an individual retirement account (IRA). After you have done this, an IRA custodian will be assigned to you. This company acts like a middleman between the IRS and you.
Your gold IRA custodian is responsible for handling all paperwork and submitting the required forms to the IRS. This includes filing annual reports.
After you have created your gold IRA, the only thing you need to do is purchase gold bullion. The minimum deposit required to purchase gold bullion coins is $1,000 However, you'll receive a higher interest rate if you put in more.
You will pay taxes when you withdraw your gold from your IRA. If you're withdrawing the entire balance, you'll owe income taxes plus a 10 percent penalty.
If you only take out a very small percentage of your income, you may not need to pay tax. There are some exceptions, though. If you take out 30% of your total IRA assets or more, you will owe federal income taxes and a 20 percent penalty.
It is best to not take out more than 50% annually of your total IRA assets. You could end up with severe financial consequences.
What is the best precious-metal to invest?
This question is dependent on the amount of risk you are willing and able to accept as well as the type of return you desire. Gold has been traditionally considered a haven investment, but it's not always the most profitable choice. For example, if you need a quick profit, gold may not be for you. If you have the patience to wait, then you might consider investing in silver.
If you don’t desire to become rich quickly, gold may be your best option. Silver may be a better option for investors who want long-term steady returns.
Is gold a good investment IRA option?
Anyone who is looking to save money can make gold an excellent investment. It can be used to diversify your portfolio. There is much more to gold than meets your eye.
It has been used throughout history as currency and it is still a very popular method of payment. It's often referred to as “the world's oldest currency.”
Gold is not created by governments, but it is extracted from the earth. It is very valuable, as it is rare and hard to create.
Gold prices fluctuate based on demand and supply. When the economy is strong, people tend to spend more money, which means fewer people mine gold. This results in gold prices rising.
On the flip side, people save cash for emergencies and don't spend it. This means that more gold is produced, which reduces its value.
This is why it makes sense to invest in gold for individuals and companies. You will benefit from economic growth if you invest in gold.
Also, your investments will earn you interest which can help increase your wealth. Additionally, you won't lose cash if the gold price falls.
How do I open a Precious Metal IRA
The first step is to decide if you want an Individual Retirement Account (IRA). If you do, you must open the account by completing Form 8606. You will then need to complete Form 5204 in order to determine which type IRA you are eligible. You must complete this form within 60 days of opening your account. After this, you are ready to start investing. You can also contribute directly to your paycheck via payroll deduction.
If you opt for a Roth IRA, you must complete Form 8903. Otherwise, the process will look identical to an existing IRA.
You'll need to meet specific requirements to qualify for a precious metals IRA. You must be at least 18 years of age and have earned income to qualify for a precious metals IRA. Your earnings cannot exceed $110,000 per year ($220,000 if married and filing jointly) for any single tax year. Additionally, you must make regular contributions. These rules apply to contributions made directly or through employer sponsorship.
You can use a precious-metals IRA to purchase gold, silver and palladium. However, you can't purchase physical bullion. This means that you will not be allowed to trade shares or bonds.
You can also use your precious metallics IRA to invest in companies that deal with precious metals. This option is offered by some IRA providers.
An IRA is a great way to invest in precious metals. However, there are two important 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 don't yield dividends like bonds and stocks. Therefore, you will lose money over time and not gain it.
What precious metals could you invest in to retire?
It is gold and silver that are the best precious metal investment. They are both simple to purchase and sell, and they have been around for a long time. They are a great way to diversify your portfolio.
Gold: This is the oldest form of currency that man has ever known. It is stable and very secure. This makes it a good option to preserve wealth in uncertain times.
Silver: Silver has always been popular among investors. It is an excellent choice for investors who wish to avoid volatility. Silver tends to move up, not down, unlike gold.
Platinium is another precious metal that is becoming increasingly popular. It's resistant to corrosion and durable, similar to gold and silver. It's also more expensive than the other two.
Rhodium: Rhodium can be used in catalytic convertors. It is also used for jewelry making. And, it's relatively cheap compared to other types of precious metals.
Palladium: Palladium, which is a form of platinum, is less common than platinum. It's also more affordable. Investors looking to add precious and rare metals to their portfolios love it for these reasons.
Can the government take your gold?
The government cannot take your gold because you own it. You earned it through hard work. It belongs entirely to you. This rule may not apply to all cases. Your gold could be taken away if your crime was fraud against federal government. Also, if you owe taxes to the IRS, you can lose your precious metals. You can keep your gold even if your taxes are not paid.
- 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)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- 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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- 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)
- Yahoo Finance provides information about Barrick Gold Corporation's (GOLD) stock price, news, quote, and history.
- 7 U.S. Code SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement plans
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
The History of Gold as an Asset
From ancient times to the beginning of the 20th century, gold was used as a currency. It was accepted worldwide and became popular due to its durability, purity, divisibility, uniformity, scarcity, and beauty. Due to its value, it was also internationally traded. Because there were no internationally recognized standards for measuring and weighing gold, the different weights of this metal could be used worldwide. One pound sterling, for example, was equivalent in England to 24 carats, and one livre tournois, in France, to 25 carats. A mark, on the other hand, was equivalent in Germany to 28 carats.
In the 1860s, the United States began issuing American coins made up of 90% copper, 10% zinc, and 0.942 fine gold. This led to a decline in demand for foreign currencies, which caused their price to increase. In this period, large amounts of gold coin were minted by the United States, which caused the gold price to drop. Because the U.S. government had too much money coming into circulation, they needed to find a way to pay off some debt. They sold some of their excess gold to Europe to pay off the debt.
Many European countries didn't trust the U.S. dollars and started to accept gold for payment. However, after World War I, many European countries stopped taking gold and began using paper money instead. The value of gold has significantly increased since then. Today, although the price fluctuates, gold remains one of the safest investments you can make.
By: Kevin Helms
Title: Robert Kiyosaki Urges Investors to Prepare for Hyperinflation, Sees Bitcoin as the Best Protection
Sourced From: news.bitcoin.com/robert-kiyosaki-says-prepare-for-hyperinflation-sees-bitcoin-as-the-best-protection/
Published Date: Wed, 22 Nov 2023 00:30:21 +0000