The Significance of Monetary Energy
Money is a form of energy. We expend energy to do work, and in return, we earn a form of remuneration that represents the energy we've put in. This concept, reminiscent of the first law of thermodynamics, holds true in our daily lives as well as on a global scale. In a world riddled with instability and economic volatility, preserving monetary energy becomes crucial, especially for individuals in developing nations like Nigeria.
The Real Estate Boom in Africa
Africa is not just a land of safaris and wildlife; it is also home to booming real estate markets. Rapid population growth, economic development, urbanization, and rising incomes have fueled the growth of the real estate industry in African cities like Lagos, Nigeria. With its vibrant real estate market, Lagos offers a wide range of investment opportunities, from luxury apartments and beachfront villas to affordable housing units and commercial spaces. As one of the fastest-growing cities in the world, Lagos has a promising future in the real estate sector.
The Disadvantages of Real Estate Investment in Africa
While real estate investment in Africa may seem appealing, it comes with its share of challenges. Property taxes, complex administrative procedures, depreciating currency value, and lack of adequate funding are just a few of the criticisms against real estate investment. However, one particular issue that stands out is the risk of land and property repossession by state governments.
Land and Property Repossession in Nigeria
In Nigeria, land ownership is regulated by the Land Use Act, which grants state governors the power to revoke land rights for public interest purposes. Although the act provides for fair compensation, there have been cases where compensations were inadequate or non-existent, leading to prolonged litigations and property abandonment. Recent instances of property demolitions in Lagos and land grabbing in Benin City further highlight the risks associated with real estate investment in Nigeria.
Why Bitcoin is a Safer Option
Bitcoin offers several advantages over real estate when it comes to wealth preservation. Firstly, its decentralized nature ensures that every bitcoin is verified by thousands of nodes globally, eliminating the need for reliance on government establishments. Secondly, Bitcoin is censorship-resistant, meaning it cannot be confiscated by any government. By practicing self-custody, individuals can maintain full control of their Bitcoin assets. Bitcoin also eliminates the high construction and maintenance costs associated with real estate investment, as well as the burden of property taxes. Furthermore, Bitcoin's portability allows for easy transfer of value across borders without incurring hefty fees or subjecting assets to hazards.
Conclusion
Real estate, originally intended to fulfill the basic human need for shelter, has transformed into a tool for wealth preservation due to the distortion caused by fiat currencies and their monetary policies. In this complex economic landscape, Bitcoin emerges as a revolutionary alternative, offering individuals a decentralized form of money and unparalleled wealth preservation opportunities. As fiat currencies continue to face inflation and debasement, Bitcoin stands strong, providing a means to navigate the pitfalls of an imperfect system.
Frequently Asked Questions
What are the advantages of a gold IRA
You can save money on retirement by putting your money into an Individual Retirement Account. It's tax-deferred until you withdraw it. You can decide how much money you withdraw each year. There are many types and types of IRAs. Some are better for those who want to save money for college. Others are made for investors seeking higher returns. For example, Roth IRAs allow individuals to contribute after age 59 1/2 and pay taxes on any earnings at retirement. But once they start withdrawing funds, those earnings aren't taxed again. This account may be worth considering if you are looking to retire earlier.
An IRA with a gold status is like any other IRA because you can put money into different asset classes. Unlike a regular IRA that requires you to pay taxes on the gains you make while you wait to access them, a gold IRA does not have to do this. This makes gold IRA accounts excellent options for people who prefer to keep their money invested instead of spending it.
An additional benefit to owning gold through an IRA, is the ease of automatic withdrawals. You won't have the hassle of making deposits each month. To ensure that you never miss a payment, you could set up direct debits.
Finally, gold is one the most secure investment options available. Because it isn’t tied to any specific country, gold’s value tends to stay stable. Even during economic turmoil the gold price tends to remain fairly stable. This makes it a great investment option to protect your savings from inflation.
What precious metals can you invest in for retirement?
Gold and silver are the best precious metal investments. They're both easy to buy and sell and have been around forever. Consider adding them to the list if you're looking to diversify and expand your portfolio.
Gold: One of the oldest forms of currency, gold, is one of mankind's most valuable. It's also very safe and stable. It is a good way for wealth preservation during uncertain times.
Silver: Investors have always loved silver. It's a great option for those who want stability. Silver is more volatile than gold. It tends to rise rather than fall.
Platinium: Another form of precious metal is platinum, which is becoming more popular. Like gold and silver, it's very durable and resistant to corrosion. It is however more expensive than its counterparts.
Rhodium: Rhodium can be used in catalytic convertors. It's also used in jewelry making. It's also relatively inexpensive compared to other precious metals.
Palladium – Palladium is an alternative to platinum that's more common but less scarce. It's also more accessible. This is why it has become a favourite among investors looking for precious metals.
What is a Precious Metal IRA (IRA)?
A precious metal IRA allows for you to diversify your retirement savings in gold, silver, palladium and iridium. These metals are known as “precious” because they are rare and extremely valuable. These metals are great investments and can help protect your financial future from economic instability and inflation.
Bullion is often used for precious metals. Bullion is the physical metal.
Bullion can be bought via various channels, such as online retailers, large coin dealers and grocery stores.
A precious metal IRA lets you invest in bullion direct, instead of purchasing stock. You'll get dividends each year.
Unlike regular IRAs, precious metal IRAs don't require paperwork or annual fees. Instead, you only pay a small percentage on your gains. You also have unlimited access to your funds whenever and wherever you wish.
How can you withdraw from an IRA of Precious Metals?
First decide if your IRA account allows you to withdraw funds. After that, you need to decide if you want to withdraw funds from an IRA account. Next, make sure you have enough money in order for you pay any fees or penalties.
Consider opening a taxable brokerage instead of an IRA if it is possible to pay a penalty if your withdrawal is made before the deadline. If you choose this option, you'll also need to consider taxes owed on the amount withdrawn.
Next, determine how much money you plan to withdraw from 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 permit you to withdraw your funds tax-free once you turn 59 1/2. Roth IRAs have income taxes upfront, but you can access the earnings later on 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. 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 can accept bullion bar, while others require you buy individual coins. You'll have to weigh the pros of each option before you make a decision.
Because you don't have to store individual coins, bullion bars take up less space than other items. However, each coin will need to be counted individually. On the flip side, storing individual coins allows you to easily track their value.
Some prefer to store their coins in a vault. Others prefer to store their coins in a vault. 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.
What are the pros and disadvantages of a gold IRA
An Individual Retirement Plan (IRA) has a major advantage over regular savings accounts. It doesn't tax any interest earned. An IRA is a good choice for those who want a way to save some money but don’t want the tax. 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% and 2.0% per year. Other providers may charge monthly management fees, ranging between $10 and $50.
Insurance is necessary if you wish to keep your money safe from the banks. Insurance companies will usually require that you have at least $500,000. Insurance that covers losses upto $500,000.
If you are considering a Gold IRA, you need to first decide how much of it you would like to use. Some providers restrict the amount you can own in gold. Some providers allow you to choose your weight.
It is also up to you to decide whether you want to purchase physical gold or futures. Physical gold is more costly than gold futures. However, futures contracts give you flexibility when buying gold. Futures contracts allow you to create a contract with a specified expiration date.
You'll also need to decide what kind of insurance coverage you want. The standard policy doesn’t provide theft protection or loss due fire, flood, or earthquake. It does include coverage for damage due to natural disasters. If you live near a high-risk region, you might want to consider additional coverage.
In addition to insurance, you'll need to consider the cost of storing your gold. Insurance doesn't cover storage costs. Banks charge between $25 and $40 per month for safekeeping.
Before you can open a gold IRA you need to contact a qualified Custodian. Custodians keep track of your investments and ensure compliance with federal regulations. Custodians can't sell 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. You must include information about what investments you would like to make (e.g. stocks, bonds and mutual funds). Your monthly investment goal should be stated.
After filling out the forms, you'll need to send them to your chosen provider along with a check for a small deposit. Once the company has received your application, they will review it and send you a confirmation email.
If you are thinking of opening a gold IRA for retirement, a financial professional is a great idea. A financial planner can help you decide the type of IRA that is right for your needs. They can also help you lower your expenses by finding cheaper alternatives to purchasing insurance.
Statistics
- (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 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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
External Links
investopedia.com
law.cornell.edu
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement accounts
forbes.com
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 1991 – WSJ
- Want to Keep Gold in Your IRA at Home? It's not legal – WSJ
How To
The best place online to buy silver and gold
To buy gold, you must first understand how it works. It is a precious metal that is very similar to platinum. It's very rare and is used as money because of its durability and resistance to corrosion. It's hard to use, so most people prefer buying jewelry made out of it to actual bars of gold.
There are two types of gold coins available today – one type is legal tender, while the other is called bullion. The legal tender coins are issued for circulation in a country. They usually have denominations such as $1, $5, $10, and so on.
Bullion coins should only be used for investment purposes. Inflation can cause their value to increase.
They aren't circulated in any currency exchange systems. For example, if a person buys $100 worth of gold, he/she gets 100 grams of gold with a value of $100. Each dollar spent earns the buyer 1 gram gold.
The next thing you should know when looking to buy gold is where to do it from. There are several options available if your goal is to purchase gold from a dealer. First, your local currency shop is a good place to start. You could also look into eBay or other reputable websites. You can also purchase gold through private online sellers.
Individuals who sell gold at wholesale and retail prices are called private sellers. Private sellers will charge you a 10% to 15% commission for every transaction. Private sellers will typically get you less than a coin shop, eBay or other online retailers. This is a great option for gold investing because you have more control over the item’s price.
The other option is to purchase physical gold. Physical gold is much easier to store than paper certificates, but you still have to worry about storing it safely. You need to make sure that your physical gold is safe by storing it in an impenetrable container like a vault or safety depositbox.
You can either visit a bank, pawnshop or bank to buy gold. A bank can give you a loan up to the amount you intend to invest in Gold. These are small businesses that let customers borrow money against the items they bring to them. Banks charge higher interest rates than those offered by pawn shops.
Finally, another way to buy gold is to simply ask someone else to do it! Selling gold can also be done easily. It is easy to sell gold by contacting a company like GoldMoney.com. You can create a simple account immediately and begin receiving payments.
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By: Emeka Ugbah
Title: Why Bitcoin Is a Better Choice for Wealth Preservation Than Real Estate in Africa
Sourced From: bitcoinmagazine.com/markets/the-volatility-of-nigerian-real-estate-and-why-bitcoin-makes-more-sense
Published Date: Tue, 12 Dec 2023 14:30:00 GMT
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