Robert Kiyosaki, the renowned author of the bestselling book Rich Dad Poor Dad, recently shared insights into how he made the majority of his wealth. In a social media post, Kiyosaki emphasized the importance of investing in resources rather than Silicon Valley technology startups, predicting that resources will be the next big investment boom.
Understanding Robert Kiyosaki's Journey to Wealth
Robert Kiyosaki, along with co-author Sharon Lechter, published Rich Dad Poor Dad in 1997. This book has remained on the New York Times Best Seller List for over six years and has been translated into 51 languages, selling more than 32 million copies worldwide.
Kiyosaki recently announced his participation as a keynote speaker at the upcoming Vancouver Resource Investment Conference (VRIC), scheduled for January 20-21. He believes that this event will be the most crucial investor conference in 2024. Reflecting on his own journey to success, Kiyosaki stated:
"The future of stocks and bond markets will depend on startups in resources, not Silicon Valley technology startups. I have made most of my money in resources, not tech."
Kiyosaki further revealed that his own entrepreneurial journey began at VRIC 25 years ago. He encouraged others to join him at the conference to be part of the investment world's upcoming boom in resources.
Cambridge House International, the organizer of the Vancouver Resource Investment Conference, specializes in promoting investment conferences for the resource sector. Jay Martin, CEO of Cambridge House and the host of VRIC, explained that over 300 junior mining companies will gather at the event to showcase the exploration and production of critical commodities needed for the 21st century. Martin believes that demand for key resources will skyrocket in the new era of de-globalization.
Kiyosaki has personally experienced the value of VRIC. In an interview last year, he stated, "This is where real money is made." He emphasized that he learned more about entrepreneurship, business, and global trade from the conference than through any other means.
Offering advice to young people, Kiyosaki emphasized the importance of real-life experiences over traditional education. He warned against relying solely on textbooks and the teachings of "fake teachers." According to him, the conference provides invaluable insights and experiences shared by miners and resource industry professionals.
While Kiyosaki acknowledges the tough nature and higher risk associated with gold mining, he has consistently endorsed gold and silver as sound investments. He also advocates for Bitcoin, considering these three assets as the best investments for unstable times. His ongoing purchases of Bitcoin and his recommendation to buy Bitcoin before it's too late demonstrate his confidence in the cryptocurrency's potential.
What are your thoughts on Robert Kiyosaki's advice and explanation of his wealth accumulation? Share your opinions in the comments below.
Frequently Asked Questions
Should You Get Gold?
Gold was once considered an investment safe haven during times of economic crisis. However, today many people are turning away from traditional investments such as stocks and bonds and instead looking toward precious metals such as gold.
Although gold prices have shown an upward trend in recent years, they are still relatively low when compared to other commodities like oil and silver.
This could be changing, according to some experts. They believe gold prices could increase dramatically if there is another global financial crises.
They also point out that gold is becoming popular because of its perceived value and potential return.
Here are some things to consider if you're considering investing in gold.
- The first thing to do is assess whether you actually need the money you're putting aside for retirement. It's possible to save for retirement without putting your savings into gold. The added protection that gold provides when you retire is a good option.
- Second, be sure to understand your obligations before you purchase gold. Each offers varying levels of flexibility and security.
- Finally, remember that gold doesn't offer the same level of safety as a bank account. You may lose your gold coins and never be able to recover them.
Don't buy gold unless you have done your research. And if you already own gold, ensure you're doing everything possible to protect it.
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. Then you must fill out Form 5204 to determine what type of IRA you are eligible for. This form should be completed within 60 days after opening the account. Once you have completed this form, it is possible to begin investing. You might also be able to contribute directly from the paycheck through payroll deduction.
Complete Form 8903 if your Roth IRA option is chosen. Otherwise, the process will look identical to an existing IRA.
To be eligible to have a precious metals IRA you must meet certain criteria. You must be at least 18 years of age and have earned income to qualify for a precious metals IRA. You cannot earn more than $110,000 annually ($220,000 if married filing jointly) in any one tax year. You must also contribute regularly. These rules apply regardless of whether you are contributing directly to your paychecks or through your employer.
You can use a precious-metals IRA to purchase gold, silver and palladium. However, you won't be able purchase physical bullion. You won't have the ability to trade stocks or bonds.
Your precious metals IRA can be used to directly invest in precious metals-related companies. This option can be provided by some IRA companies.
However, there are two significant drawbacks to investing in precious metals via an IRA. They aren't as liquid as bonds or stocks. It's also more difficult to sell them when they are needed. Second, they don’t produce dividends like stocks or bonds. Therefore, you will lose money over time and not gain it.
How much should I contribute to my Roth IRA account?
Roth IRAs allow you to deposit your money tax-free. You cannot withdraw funds from these accounts until you reach 59 1/2. If you decide to withdraw some of your contributions, you will need to follow certain rules. First, you can't touch your principal (the initial amount that was deposited). This means that regardless of how much you contribute to an account, you cannot take out any more than you initially contributed. If you wish to withdraw more than you originally contributed, you will have to pay taxes.
The second rule is that your earnings cannot be withheld without income tax. You will pay income taxes when you withdraw your earnings. For example, let's say that you contribute $5,000 to your Roth IRA every year. Let's say you earn $10,000 each year after contributing. On the earnings, you would be responsible for $3,500 federal income taxes. The remaining $6,500 is yours. You can only take out what you originally contributed.
Therefore, even if you take $4,000 out of your earnings you still owe taxes on $1,500. In addition, 50% of your earnings will be subject to tax again (half of 40%). You only got back $4,000. Even though you were able to withdraw $7,000 from your Roth IRA,
There are two types: Roth IRAs that are traditional and Roth. A traditional IRA allows for you to deduct pretax contributions of your taxable income. When you retire, you can use your traditional IRA to withdraw your contribution balance plus interest. You have the option to withdraw any amount from a traditional IRA.
Roth IRAs do not allow you to deduct your contributions. However, once you retire, you can withdraw your entire contribution plus accrued interest. There is no minimum withdrawal limit, unlike traditional IRAs. It doesn't matter if you are 70 1/2 or older before you withdraw your contribution.
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.
A taxable brokerage account is a better option than an IRA if you are prepared to pay a penalty for early withdrawals. If you decide to go with this option, you will need to take into account the taxes due on the amount you withdraw.
Next, you need to determine how much money is going to be taken out 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 have an idea of the amount of your total savings you wish to convert into cash you will need to decide what type of IRA you want. Traditional IRAs let you withdraw money tax-free after you turn 59 1/2, while Roth IRAs require you to pay income taxes upfront but allow you access the earnings later without paying any additional taxes.
Once these calculations have been completed you will need to open an account with a brokerage. A majority of brokers offer free signup bonuses, as well as other promotions, to get people to open accounts. You can save money by opening an account with a debit card instead of a credit card to avoid paying unnecessary fees.
You will need a safe place to store your coins when you are ready to withdraw from your precious metal IRA. Some storage facilities will accept bullion bars, others require you to buy individual coins. Either way, you'll need to weigh the pros and cons of each before choosing one.
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, you can easily track the value of individual coins by storing them in separate containers.
Some people prefer to keep their coins 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.
How is gold taxed in an IRA?
The fair value of gold sold to determines the price at which tax is due. Gold is not subject to tax when it's purchased. It's not considered income. If you sell it later you will have a taxable profit if the price goes down.
As collateral for loans, gold is possible. Lenders look for the highest return when you borrow against assets. Selling gold is usually the best option. However, there is no guarantee that the lender would do this. They might just hold onto it. Or they might decide to resell it themselves. In either case, you risk losing potential profits.
You should not lend against your gold if it is intended to be used as collateral. Otherwise, it's better to leave it alone.
Can I buy gold with my self-directed IRA?
Although you can buy gold using your self-directed IRA account, you will need to open an account at a brokerage like TD Ameritrade. If you have an existing retirement account, you can transfer funds to another one.
The IRS allows individuals to contribute as high as $5,500 ($6,500 if they are married and jointly) to a traditional IRA. Individuals can contribute as much as $1,000 per year ($2,000 if married filing jointly) to a Roth IRA.
You might want to purchase physical bullion, rather than futures contracts if you are going to invest in gold. Futures contracts, which are financial instruments based upon the price of gold, are financial instruments. These financial instruments allow you to speculate about future prices without actually owning the metal. But physical bullion refers to real gold and silver bars you can carry in your hand.
Statistics
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (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)
- 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)
External Links
law.cornell.edu
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement account
bbb.org
investopedia.com
- Do You Need a Gold IRA to Get Retirement?
- What are the Options Types, Spreads, Example and Risk Metrics
cftc.gov
How To
Tips for Investing In Gold
Investing in Gold is one of the most popular investment strategies worldwide. This is because there are many benefits if you choose to invest in gold. There are many ways you can invest in gold. Some people prefer to buy gold coins in physical form, while others prefer to invest in gold ETFs.
Before buying any kind of gold, you need to consider these things.
- First, find out if your country allows gold ownership. If so, then you can proceed. You can also look at buying gold abroad.
- Second, it is important to know which type of gold coin you are looking for. You can go for yellow gold, white gold, rose gold, etc.
- Thirdly, you should take into consideration the price of gold. Start small and move up. When purchasing gold, diversify your portfolio. Diversifying your portfolio should be a priority, including stocks, bonds and real estate.
- Last but not least, remember that gold prices fluctuate frequently. Be aware of the current trends.
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By: Kevin Helms
Title: Robert Kiyosaki Reveals How He Made Most of His Money
Sourced From: news.bitcoin.com/rich-dad-poor-dad-author-robert-kiyosaki-shares-how-he-made-most-of-his-money/
Published Date: Wed, 27 Dec 2023 01:30:09 +0000
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