The Constitutional Framework
In recent weeks, there has been speculation in the Salvadoran media that President Nayib Bukele of Bitcoin Country will step down from his current role to pursue a second term in office. This move is dependent on obtaining a special license from the Salvadoran Legislative Assembly, which requires three-quarters approval from the body. Previously, it was widely believed that Salvadoran presidents were limited to a single five-year term. However, a landmark Supreme Court ruling has opened the door to the possibility of a second term, provided the incumbent steps down at least six months before the next presidential term commences on June 1, 2024.
The Race Against Time
As of now, President Bukele has not yet registered as a candidate for the upcoming elections. The Supreme Electoral Tribunal has set a deadline of October 26, 2023, for presidential candidates to submit their registrations. However, it is increasingly likely that Bukele will need to step away from the presidency in order to meet this crucial deadline. This adds an extra layer of complexity to an already intricate political process.
In a recent press conference, Bukele indicated that he would register as a candidate on October 24 or earlier, but definitely before the deadline and according to the law. What is unclear is whether he will step down before registering or not, and there may be two options for Bukele:
1. To step down from the presidency before the October 26 deadline and register as a candidate; or
2. To register as a candidate while still in the presidency by the October 26 deadline and step down later to meet the constitutional requirement. This scenario is only viable assuming that the Supreme Elections Tribunal would rule that Bukele's candidacy is provisional, provided that he does not campaign until he steps down, which must happen by November 30.
Implications for El Salvador
This development carries significant implications, particularly for the Bitcoin project in El Salvador, a flagship initiative of Bukele's administration. Additionally, it holds paramount importance for Salvadorans who have experienced notable gains in terms of security and overall improvements in their country. The upcoming elections, scheduled for February 4, 2024, will undoubtedly shape the future trajectory of El Salvador.
Bukele's Popularity and Controversies
President Bukele enjoys an overwhelming approval rating of over 90%, making him the clear frontrunner in the upcoming elections. However, not everyone agrees with his bid for a second term. Detractors and members of the political opposition argue that the Supreme Court ruling that enabled his candidacy is unconstitutional. This dissent has sparked heated debates on the legality and ethical implications of his potential second term.
The Road Ahead
As the presidential electoral campaign officially kicked off on October 3, 2023, all eyes are on Bukele and his next move. When he decides to temporarily vacate his post to seek a second term, the question of who will step in as interim president becomes vital. Both local and international observers will closely monitor this transition period.
The political landscape in El Salvador is undergoing a seismic shift as President Nayib Bukele readies himself for a bid for a second term. The Supreme Court ruling, the electoral deadlines, and the intricacies of Salvadoran politics converge in this pivotal moment. The outcome of these events will not only shape the future of El Salvador but will also have far-reaching implications for the region and beyond. As the nation stands at the precipice of this historic juncture, the eyes of the world remain fixed on Bitcoin Country.
This is a guest post by Jaime Garcia. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
Frequently Asked Questions
How much is gold taxed under a Roth IRA
A tax assessment for an investment account will be based on the current market value, and not what you paid initially. All gains, even if you have invested $1,000 in a mutual funds stock, are subject to tax.
However, if the money is deposited into a traditional IRA/401(k), the tax on the withdrawal of the money is not applicable. Taxes are only charged on capital gains or dividends earned, which only apply to investments longer than one calendar year.
Each state has its own rules regarding these accounts. Maryland's rules require that withdrawals be taken within 60 days after you turn 59 1/2. In Massachusetts, you can wait until April 1st. New York is open until 70 1/2. To avoid penalty fees, it is important to plan and take distributions in time to pay all your retirement savings.
Can I purchase gold with my self directed IRA?
You can purchase gold with your self-directed IRA, but you must first open an account at a brokerage firm like TD Ameritrade. You can also transfer funds from another retirement account if you already have 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 can be described as financial instruments that are determined by the gold price. They let you speculate on future price without having to own the metal. But physical bullion refers to real gold and silver bars you can carry in your hand.
What tax is gold subject in an IRA
The fair market value at the time of sale is what determines how much tax you pay on gold sales. If you buy gold, there are no taxes. It is not considered income. If you sell it after the purchase, you will get a tax-deductible gain if you increase the price.
Gold can be used as collateral for loans. When you borrow against your assets, lenders try to find the highest return possible. In the case of gold, this usually means selling it. However, there is no guarantee that the lender would do this. They may just keep it. They may decide to resell it. Either way you will lose potential profit.
If you plan on using your gold as collateral, then you shouldn't lend against it. Otherwise, it's better to leave it alone.
How much gold can you keep in your portfolio
The amount of capital required will affect the amount you make. A small investment of $5k-10k would be a great option if you are looking to start small. 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.
Also, you need to think about the type of business that you are going to run. In my case, I run a website-creation company. Our clients pay us between $1000-2000/month and depending on their 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. Therefore, you might only get paid one time every six months.
So you need to decide what kind of income you want to generate before you know how much gold you will need.
I would recommend that you start with $1k-2k worth of gold and then increase your wealth.
What are the pros and disadvantages of a gold IRA
An Individual Retirement Account (IRA), unlike regular savings accounts, doesn't require you to pay tax on interest earned. An IRA is a great option for those who want to save money, but don't want tax on any interest earned. However, there are also disadvantages to this type of investment.
You may lose all your accumulated savings if you take too much out of your IRA. The IRS may prohibit you from withdrawing funds from your IRA before you are 59 1/2 years of age. You will likely have to pay a penalty fee if you withdraw funds from an IRA.
You will also need to pay fees for managing your IRA. Many banks charge between 0.5% and 2.0% per year. Other providers charge monthly management charges ranging anywhere from $10 to $50.
Insurance will be required if you would like to keep your cash out of banks. A majority of insurance companies require that you possess a minimum amount gold to be eligible for a claim. Insurance that covers losses upto $500,000.
You will need to decide how much gold you wish to use if you opt for a gold IRA. Some providers restrict the amount you can own in gold. Others allow you to pick your weight.
It's also important to decide whether or not to buy gold futures contracts. Physical gold is more costly than gold futures. Futures contracts, however, allow for greater flexibility in buying gold. They enable you to establish a contract with an expiration date.
You'll also need to decide what kind of insurance coverage you want. The standard policy does not include theft protection or loss caused by fire, flood, earthquake. It does offer coverage for natural disasters. Additional coverage may be necessary if you reside in high-risk areas.
Additional to your insurance, you will need to consider how much it costs to store 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. A custodian maintains track of all your investments and ensures you are in compliance with federal regulations. Custodians don't have the right to sell assets. Instead, they must retain them for as long and as you require.
Once you've decided which type of IRA best suits your needs, you'll need to fill out paperwork specifying your goals. Information about your investments such as stocks and bonds, mutual fund, or real property should be included in your plan. Also, you should specify how much each month you plan to invest.
After filling in the forms, please send them to the provider. The company will then review your application and mail you a letter of confirmation.
You should consult a financial planner before opening a Gold IRA. Financial planners are experts in investing and will help you decide which type of IRA works best for your situation. You can also reduce your insurance costs by working with them to find lower-cost alternatives.
Statistics
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- 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 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)
- (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)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
External Links
irs.gov
bbb.org
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 1991 – WSJ
- Do you want to keep your IRA gold at home? It's Not Exactly Lawful – WSJ
law.cornell.edu
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement account
How To
Tips for Investing Gold
One of the most sought-after investment strategies is investing in gold. There are many advantages to investing in Gold. There are many ways to invest gold. Some people choose to purchase gold coins physically, while some prefer to invest with gold ETFs.
You should consider some things before you decide to purchase any type of gold.
- First, you must check whether your country allows you to own gold. If your country allows you to own gold, then you are allowed to proceed. You can also look at buying gold abroad.
- The second is to decide which kind of gold coin it is you want. You have options: you can choose from yellow gold, white or rose gold.
- 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. Diversifying your portfolio should be a priority, including stocks, bonds and real estate.
- Lastly, you should never forget that gold prices change frequently. You need to keep up with current trends.
—————————————————————————————————————————————————————————————–
By: Jaime García
Title: Bukele Likely To Step Down As President To Seek A Second Term
Sourced From: bitcoinmagazine.com/el-salvador-bitcoin-news/bukele-likely-to-step-down-as-president-to-seek-a-second-term
Published Date: Mon, 23 Oct 2023 13:00:00 GMT
Leave a Reply