Introduction
Robert Kiyosaki, the author of the popular book "Rich Dad Poor Dad," has recently explained the core concept of Rich Dad's first lesson. In simple terms, he highlights why the rich become richer by emphasizing the preservation of tangible assets such as gold, silver, and bitcoin. According to Kiyosaki, these assets offer lifelong financial security and freedom.
Understanding Rich Dad's Lesson One
In a post on a social media platform, Kiyosaki began by stating Rich Dad's Lesson #1: "The rich don't work for money." He goes on to explain that the wealth of the rich is designed to be stolen from their fake money through taxes, inflation, and the stock market. Instead of working for money, the rich focus on acquiring assets that generate tax-free income, such as rental properties, oil, and food production. Furthermore, they save real assets like gold, silver, and bitcoin, rather than relying on fake currency.
Why the Poor and Middle Class Struggle
Kiyosaki also sheds light on why the poor and middle class tend to become poorer. He points out that they seek jobs with steady paychecks but no job security. Moreover, these jobs often provide taxable fake income. Additionally, he highlights that the poor and middle class save fake currency and invest in crashing assets like stocks, bonds, mutual funds, and ETFs.
Kiyosaki's Recommendations for Gold, Silver, and Bitcoin
Kiyosaki has long been advocating for investments in gold, silver, and bitcoin. He has made various price forecasts for these assets. Recently, he stated that Bitcoin is likely to reach $135,000, while gold is expected to experience significant growth. In the event of a global economic crisis, Kiyosaki believes that Bitcoin could surge to $1 million, with gold reaching $75,000 and silver climbing to $60,000. In February, he projected that Bitcoin's price would reach $500,000 by 2025, with gold potentially rising to $5,000 and silver to $500 within the same timeframe.
The Future of Cryptocurrency
Kiyosaki not only advises investors to buy Bitcoin immediately but also expresses his belief in the future of cryptocurrency. He considers fiat money to be "fake money" and believes that gold and silver represent "God's money" while Bitcoin is "people's money." He warns about the impending crash in real estate, stocks, and bonds and cautions that the U.S. dollar will crash if the Federal Reserve raises interest rates.
Kiyosaki's Investment Allocation and Strategy
Last week, Kiyosaki revealed an investment allocation to help investors survive what he believes will be the "greatest crash in world history." He also shared his own investment strategy, clarifying that he is not trying to be like Warren Buffett, the CEO of Berkshire Hathaway.
Conclusion
Robert Kiyosaki's breakdown of Rich Dad's lesson one emphasizes the importance of tangible assets for financial security. He highlights that the rich focus on acquiring assets that generate tax-free income and save real assets like gold, silver, and bitcoin. Meanwhile, the poor and middle class struggle due to their reliance on jobs with no security and investments in crashing assets. As Kiyosaki continues to advocate for gold, silver, and bitcoin, he believes that these assets will provide lifelong financial security and freedom.
Share Your Thoughts
What are your thoughts on Rich Dad's lesson one and Robert Kiyosaki's belief that bitcoin offers lifelong financial security and freedom? Let us know in the comments section below.
Frequently Asked Questions
What precious metal is best for investing?
This depends on what risk you are willing take and what kind of return you desire. Gold is a traditional haven investment. However, it is not always the most profitable. If you are looking for quick profits, gold might not be the right investment. 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. However, silver might be a better option if you're looking for an investment that provides steady returns over long periods.
What are the pros and cons of a gold IRA?
An Individual Retirement account (IRA) is a better option than regular savings accounts in that interest earned is exempted from tax. This makes an IRA great for people who want to save money but don't want to pay tax on the interest they earn. However, there are disadvantages to this type investment.
You may lose all your accumulated savings if you take too much out of your IRA. You may also be prohibited by the IRS from making withdrawals from an IRA after you turn 59 1/2. A penalty fee will be charged if you decide to withdraw funds.
Another problem is the cost of managing your IRA. Many banks charge between 0.5%-2.0% per year. Other providers charge monthly management fees ranging from $10 to $50.
If you prefer to keep your money outside a bank, you'll need to purchase insurance. A majority of insurance companies require that you possess a minimum amount gold to be eligible for a claim. You might be required to buy insurance that covers losses up to $500,000.
If you choose to go with a gold IRA, you'll need to determine how much gold you want to use. You may be limited in the amount of gold you can have by some providers. Others allow you the freedom to choose your own weight.
It is also up to you to decide whether you want to purchase physical gold or futures. Physical gold is more expensive than gold futures contracts. Futures contracts offer flexibility for buying gold. They let you set up a contract that has a specific expiration.
You also need to decide the type and level of insurance coverage you want. The standard policy does not include theft protection or loss caused by fire, flood, earthquake. It does include coverage for damage due to natural disasters. You might consider purchasing additional coverage if your area is at high risk.
You should also consider the cost of storage for your gold. Storage costs are not covered by insurance. Safekeeping costs can be as high as $25-40 per month at most banks.
If you decide to open a gold IRA, you must first contact a qualified custodian. Custodians keep track of your investments and ensure compliance with federal regulations. Custodians cannot sell your assets. Instead, they must hold them as long as you request.
After you've determined which type of IRA is best for you, fill out the paperwork indicating your goals. The plan should contain information about the types of investments you wish to make such as stocks, bonds or mutual funds. Also, you should specify how much each month you plan to invest.
Once you have completed the forms, you will need to mail them to your provider with a check and a small deposit. Once the company has received your application, they will review it and send you a confirmation email.
When opening a gold IRA, you should consider using a financial planner. Financial planners are experts at investing and can help you determine which type of IRA is best for you. They can help reduce your expenses by helping you find cheaper alternatives to buying insurance.
Should You Buy Gold?
In times past, gold was considered a safe haven for investors in times of economic trouble. However, today many people are turning away from traditional investments such as stocks and bonds and instead looking toward precious metals such as gold.
Gold prices have been on an upward trend over recent years, but they remain relatively low compared to other commodities such as oil and silver.
Experts think this could change quickly. Experts believe that gold prices could skyrocket in the face of another global financial crisis.
They also note that gold is increasingly popular because of its perceived intrinsic value and potential return.
Here are some things to consider if you're considering investing in gold.
- First, consider whether or not you need the money you're saving for retirement. It is possible to save for retirement while still investing your gold savings. That said, gold does provide an additional layer of protection when you reach retirement age.
- You should also be aware of what you are getting into before you buy gold. There are many types of gold IRA accounts. Each account offers different levels of security and flexibility.
- Remember that gold is not as safe as a bank account. Your gold coins may be lost and you might never get them back.
So, if you're thinking about buying gold, make sure you do your research first. Protect your gold if you already have it.
Should you Invest In Gold For Retirement?
The answer depends on how much money you have saved and whether gold was an investment option available when you started saving. If you are unsure of which option to invest in, consider both.
In addition to being a safe investment, gold also offers potential returns. This makes it a worthwhile choice for retirees.
Gold is more volatile than most other investments. This causes its value to fluctuate over time.
This doesn't mean that you should not invest in gold. Instead, it just means you should factor the fluctuations into your overall portfolio.
Another benefit of gold is that it's a tangible asset. Gold can be stored more easily than stocks and bonds. It can also be carried.
You can always access gold as long your place it safe. Additionally, physical gold does not require storage fees.
Investing in gold can help protect against inflation. Gold prices are likely to rise with other commodities so it is a good way of protecting against rising costs.
Additionally, it will be a benefit to have some of your savings invested into something that won't lose value. Gold usually rises when the stock market falls.
Another advantage to investing in gold is the ability to sell it whenever you wish. Just like stocks, you can liquidate your position whenever you need cash. You don't even need to wait for your retirement.
If you do decide to invest in gold, make sure to diversify your holdings. Do not put all your eggs in one basket.
Don't buy too many at once. Start small, buying only a few ounces. Continue adding more as necessary.
Keep in mind that the goal is not to quickly become wealthy. It's not to get rich quickly, but to accumulate enough wealth to no longer need Social Security benefits.
Even though gold is not the best investment, it could be an excellent addition to any retirement plan.
Is it possible to hold a gold ETF within a Roth IRA
This option may not be available in a 401(k), but you should look into other options such as an Individual Retirement account (IRA).
An IRA traditional allows both employees and employers to contribute. You can also invest in publicly traded businesses by creating an Employee Stock Ownership Plan (ESOP).
An ESOP gives employees tax advantages as they share the stock of the company and the profits it makes. The money invested in ESOPs is taxed at a lower rate that if it were owned directly by an employee.
You can also get an Individual Retirement Annuity, or IRA. With an IRA, you make regular payments to yourself throughout your lifetime and receive income during retirement. Contributions to IRAs can be made without tax.
Statistics
- 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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (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)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
External Links
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 1991 – WSJ
- Are you interested in keeping gold in your IRA at-home? It's Not Exactly Legal – WSJ
cftc.gov
forbes.com
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
bbb.org
How To
Tips for Investing with Gold
Investing in Gold has become a very popular investment strategy. Because investing in gold has many benefits. There are many ways to invest gold. Some people purchase physical gold coins. Others prefer to invest their money in gold ETFs.
Before you buy any type of gold, there are some things that you should think about.
- First, find out if your country allows gold ownership. If it is, you can move on. You can also look at buying gold abroad.
- The second is to decide which kind of gold coin it is you want. You can go for yellow gold, white gold, rose gold, etc.
- Thirdly, it is important to take into account the gold price. It is best to start small and work your way up. You should diversify your portfolio when buying gold. You should invest in different assets such as stocks, bonds, real estate, mutual funds, and commodities.
- Last but not least, remember that gold prices fluctuate frequently. You need to keep up with current trends.
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By: Kevin Helms
Title: Robert Kiyosaki Breaks Down Rich Dad's Lesson One: Importance of Tangible Assets for Financial Security
Sourced From: news.bitcoin.com/robert-kiyosaki-breaks-down-rich-dads-first-lesson-says-bitcoin-provides-lifelong-financial-security-and-freedom/
Published Date: Sun, 05 Nov 2023 00:30:46 +0000
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