Sofi, a prominent financial services platform, has recently announced its decision to discontinue its cryptocurrency services starting from December 19. The company cited increased scrutiny from banking regulators as the primary reason for this move. To facilitate a smooth transition, Sofi has provided instructions on its webpage for customers who wish to migrate their accounts to Blockchain.com.
Sofi Crypto Customers Cannot Open New Accounts
As of November 29, Sofi customers have been unable to open new cryptocurrency accounts. In a recent update on its webpage, Sofi informed its customers that their accounts will either be migrated to the Blockchain.com platform or closed entirely.
According to Bloomberg, the intensified scrutiny of the cryptocurrency sector by U.S. bank regulators has compelled Sofi, which obtained a conditional bank charter in January 2022, to exit the digital asset business. The charter imposed certain conditions, including obtaining necessary approvals within a two-year timeframe. Failure to meet these requirements would result in the company exiting the cryptocurrency business.
Customers Can Still Trade Crypto With Sofi Accounts
Sofi has provided detailed instructions on its webpage for customers who wish to migrate their accounts to Blockchain.com during the transition period. Customers can continue to trade cryptocurrency using their Sofi accounts throughout this period.
Customers residing in specific U.S. states, including Hawaii, New Jersey, Louisiana, Nevada, Tennessee, Texas, and Virginia, have been informed by Sofi that they must liquidate certain digital assets before the designated deadline. Failure to comply will result in Sofi liquidating these assets on their behalf, with the net proceeds being deposited into the customers' brokerage accounts within 60 days.
For customers in New York State, Sofi has stated that they are not eligible to migrate their accounts to Blockchain.com. Although their accounts will remain open until January 28, 2024, they will no longer be able to purchase cryptocurrency after the deadline. Selling orders will be the only permissible transactions during this period.
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Frequently Asked Questions
Is gold a good choice for an investment IRA?
Any person looking to save money is well-served by gold. It's also a great way 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 is often called “the most ancient currency in the universe.”
But gold is mined from the earth, unlike paper currencies that governments create. Because it is rare and difficult to make, it is extremely valuable.
The price of gold fluctuates based on supply and demand. The strength of the economy means people spend more, and so, there is less demand for gold. The value of gold rises as a consequence.
On the flip side, when the economy slows down, people hoard cash instead of spending it. This increases the production of gold, which in turn drives down its value.
This is why gold investment makes sense for both individuals and businesses. You will benefit from economic growth if you invest in gold.
You'll also earn interest on your investments, which helps you grow your wealth. Additionally, you won't lose cash if the gold price falls.
How much money should I put into my Roth IRA?
Roth IRAs allow you to deposit your money tax-free. These accounts are not allowed to be withdrawn before the age of 59 1/2. However, if your goal is to withdraw funds before that time, there are certain rules you must observe. First, your principal (the original deposit amount) cannot be touched. You cannot withdraw more than the original amount you contributed. If you decide to withdraw more money than what you contributed initially, you will need to pay taxes.
The second rule states that income taxes must be paid before you can withdraw earnings. So, when you withdraw, you'll pay taxes on those earnings. Let's take, for example, $5,000 in annual Roth IRA contributions. In addition, let's assume you earn $10,000 per year after contributing. You would owe $3,500 in federal income taxes on the earnings. This leaves you with $6,500 remaining. Since you're limited to taking out only what you initially contributed, that's all you could take out.
Therefore, even if you take $4,000 out of your earnings you still owe taxes on $1,500. 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 your Roth IRA ended up having $7,000, you only got $4,000.
There are two types: Roth IRAs that are traditional and Roth. Traditional IRAs allow pre-tax contributions to be deducted from your taxable tax income. Your traditional IRA allows you to withdraw your entire contribution plus any interest. There is no limit on how much you can withdraw from a traditional IRA.
Roth IRAs won't let you deduct your contributions. After you have retired, the full amount of your contributions and accrued interest can be withdrawn. There is no minimum withdrawal requirement, unlike traditional IRAs. You don’t have to wait for your turn 70 1/2 years before you can withdraw your contributions.
Should you open a Precious Metal IRA
You should be aware that precious metals cannot be covered by insurance. There is no way to recover money that you have invested in precious metals. All your investments can be lost due to theft, fire or flood.
Investing in physical gold and silver coins is the best way to protect yourself from this type of loss. These items have been around thousands of years and are irreplaceable. If you were to sell them today, you would likely receive more than what you paid for them when they were first minted.
You should choose a reputable firm that offers competitive rates. A third-party custodian is a good option. They will protect your assets while giving you easy access whenever you need them.
When you open an account, keep in mind that you won't receive any returns until your retirement. Don't forget the future!
What is a Precious Metal IRA, and how can you get one?
A precious metal IRA lets you diversify your retirement savings to include gold, silver, palladium, rhodium, iridium, osmium, osmium, rhodium, iridium and other rare metallics. These are called “precious” metals because they're very hard to find and very valuable. They are great investments for your money, and they can protect you from inflation or economic instability.
Bullion is often used to refer to precious metals. Bullion refers actually to the metal.
Bullion can be purchased through many channels including online retailers and large coin dealers as well as some grocery stores.
You can invest directly in bullion with a precious metal IRA instead of buying shares of stock. You'll get dividends each year.
Precious metal IRAs do not require paperwork nor annual fees, unlike regular IRAs. Instead, you pay a small percentage tax on the gains. Plus, you can access your funds whenever you like.
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. But, this rule is not universal. If you are convicted of fraud against the federal government, your gold can be forfeit. If you owe taxes, your precious metals could be taken away. You can keep your gold even if your taxes are not paid.
How much gold can you keep in your portfolio
The amount you make will depend on the amount of capital you have. Start small with $5k-10k. You could then rent out desks and office space as your business grows. This will allow you to pay rent monthly, and not worry about it all at once. Rent is only paid per month.
You also need to consider what type of business you will run. In my case, I am running a website creation company, so we charge clients around $1000-2000/month depending on what they order. You should also consider the expected income from each client when you do this type of thing.
If you are doing freelance work, you probably won't have a monthly salary like I do because the project pays freelancers. This means that you may only be paid once every six months.
You need to determine what kind or income you want before you decide how much of it you will need.
I would recommend that you start with $1k-2k worth of gold and then increase your wealth.
Statistics
- 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)
- You can only purchase gold bars at least 99.5% purity. (forbes.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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
External Links
bbb.org
cftc.gov
finance.yahoo.com
irs.gov
How To
How to Keep Physical Gold in an IRA
The best way to invest in Gold is by purchasing shares of companies that produce it. But this investment method has many risks as there is no guarantee of survival. If they survive, there's still the risk of losing money due to fluctuations in the price of gold.
Another option is to purchase physical gold. This requires you to either open up your account at a bank or an online bullion dealer or simply purchase gold from a reputable seller. The advantages of this option include the ease of access (you don't need to deal with stock exchanges) and the ability to make purchases when prices are low. It is also easier to check how much gold you have stored. You'll get a receipt showing exactly what you paid, so you'll know if any taxes were missed. You're also less susceptible to theft than investing with stocks.
However, there are some disadvantages too. You won't be able to benefit from investment funds or interest rates offered by banks. You won't have the ability to diversify your holdings; you will be stuck with what you purchased. Finally, the tax man might ask questions about where you've put your gold!
BullionVault.com has more information about how to buy gold in an IRA.
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By: Terence Zimwara
Title: US Financial Services Platform Sofi Announces Exit From Crypto Market
Sourced From: news.bitcoin.com/us-financial-services-platform-sofi-announces-exit-from-crypto-market/
Published Date: Tue, 05 Dec 2023 11:00:21 +0000
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