Ricardo Salinas on the Benefits of Bitcoin
Mexican billionaire Ricardo Salinas believes that Bitcoin offers a solution to protect against inflation tax and preserve wealth. In an interview with Bitcoin Magazine, Salinas emphasized that people's savings are being taken away without their consent and knowledge. He stated that understanding the debasement of currency is crucial to avoid falling victim to fraudsters who use this tactic to evade taxes and create debt.
Salinas particularly highlighted the importance of Bitcoin in hyperinflationary economies, such as those found in Latin America. He explained that Bitcoin is resistant to taxation and offers various advantages in these economic conditions.
The Need for Awareness and Action in Mexico
When asked about the necessary steps for mass adoption of Bitcoin in Mexico, Salinas emphasized the importance of people realizing that they are being scammed and robbed by both criminals and the government. He called out the government for committing fraud and manipulating monetary policy to exploit the public.
Salinas stressed the importance of educating people about the fraudulent tactics used to debase currency. He urged individuals to understand how these tactics work so that they can protect themselves and take back their financial power.
Bitcoin ETF and Obstacles
Salinas discussed the potential impact of a Bitcoin exchange-traded fund (ETF) and its role in increasing Bitcoin adoption. He acknowledged that an ETF would create a new source of demand and make it easier for people to invest in Bitcoin. However, he pointed out that the government and regulatory bodies, such as the SEC and the Treasury, hinder the progress of Bitcoin ETFs to protect their own interests.
Salinas mentioned that Gary Gensler, the chairman of the SEC, is well aware of the situation. He concluded that the resistance against Bitcoin ETFs is not about safeguarding investors but about preserving the government's financing methods without raising taxes.
Final Thoughts
Ricardo Salinas' advocacy for Bitcoin stems from his belief that it serves as a safeguard against inflation tax and wealth confiscation. He urges individuals to educate themselves about the debasement of currency and the fraudulent tactics employed by governments. By understanding these tactics, people can protect their savings and regain control over their financial futures.
What are your thoughts on Ricardo Salinas' views? Let us know in the comments section below.
Frequently Asked Questions
What are the fees associated with an IRA for gold?
$6 per month is the Individual Retirement Account Fee (IRA). This includes the account maintenance fees and any investment costs associated with your chosen investments.
Diversifying your portfolio may require you to pay additional fees. These fees can vary depending on which type of IRA account you choose. Some companies offer checking accounts for free, while others charge monthly fees for IRA account.
Most providers also charge annual management costs. These fees can range from 0% up to 1%. The average rate is.25% annually. However, these rates are typically waived if you use a broker like TD Ameritrade.
Can I buy or sell gold from my self-directed IRA
Your self-directed IRA can be used to purchase gold, but first you need to open an account with a brokerage firm such as TD Ameritrade. You can also transfer funds from an existing retirement fund.
Individuals can contribute as much as $5,500 per year ($6,500 if married filing jointly) to a traditional IRA. Individuals can contribute up $1,000 per annum ($2,000 if they are married and jointly) directly to a Roth IRA.
If you do decide to invest in gold, you'll want to consider purchasing physical bullion rather than investing in futures contracts. Futures contracts can be described as financial instruments that are determined by the gold price. These contracts allow you to speculate on future gold prices without actually owning it. But, physical bullion is real bars of gold or silver that you can hold in one's hand.
How Much of Your IRA Should Include Precious Metals?
It's important to understand that precious metals aren't only for wealthy people. They don't require you to be wealthy to invest in them. There are many ways that you can make money with gold and silver investments, even if you don't have much money.
You may consider buying physical coins such as bullion bars or rounds. Shares in precious metals-producing companies could be an option. Another option is to make use of the IRA rollover programs offered by your retirement plan provider.
No matter what your preference, precious metals will still be of benefit to you. Although they aren’t stocks, they offer the possibility for long-term gains.
Their prices rise with time, which is a different to traditional investments. This means that if you decide on selling your investment later, you'll likely get more profit than you would with traditional investing.
How does a gold IRA account work?
People who wish to invest in precious metals can use Gold Ira accounts as a tax-free investment vehicle.
You can buy physical gold bullion coins at any time. To start investing in gold, it doesn't matter if you are retired.
The beauty of owning gold as an IRA is you can hold on to it forever. Your gold holdings won't be subject to taxes when you pass away.
Your gold will be passed on to your heirs, without you having to pay capital gains taxes. It is not required that you include your gold in the final estate report because it remains outside your estate.
You'll first have to set up an individual retirement account (IRA) to open a gold IRA. After you do this, you will be granted an IRA custodian. This company acts as a middleman between you and the IRS.
Your gold IRA custodian can handle all paperwork and submit necessary forms to IRS. This includes filing annual reports.
Once your gold IRA is established, you can purchase gold bullion coins. The minimum deposit required to purchase gold bullion coins is $1,000 You'll get a higher rate of interest if you deposit more.
Taxes will be charged on gold you have withdrawn from an IRA. If you are withdrawing your entire balance, you will owe income tax plus a 10% penalty.
Even if your contribution is small, you might not have to pay any taxes. There are some exceptions, though. For example, taking out 30% or more of your total IRA assets, you'll owe federal income taxes plus a 20 percent penalty.
You shouldn't take out more then 50% of your total IRA assets annually. A violation of this rule can lead to severe financial consequences.
Statistics
- 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)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.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)
- 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
bbb.org
wsj.com
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- Do you want to keep your IRA gold at home? It's not legal – WSJ
law.cornell.edu
- 7 U.S. Code SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement accounts
forbes.com
- Gold IRA: Add some sparkle to your retirement nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How To
Guidelines for Gold Roth IRA
The best way to invest for retirement is by starting early. Start saving as soon and as often as you're eligible (usually around 50 years old) and keep going until retirement. You must contribute enough each year to ensure that you have adequate growth.
You can also take advantage of tax-free savings opportunities like a traditional 401k (k), SEP IRA (or SIMPLE IRA). These savings vehicles enable you to make contributions while not paying any taxes on the earnings, until they are withdrawn. This makes them great options for people who don't have access to employer matching funds.
The key is to save regularly and consistently over time. You'll miss out on any potential tax benefits if you're not contributing the maximum amount allowed.
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By: Kevin Helms
Title: Mexican Billionaire Ricardo Salinas Advocates Bitcoin for Wealth Protection
Sourced From: news.bitcoin.com/mexican-billionaire-advocates-bitcoin-for-wealth-protection-people-need-to-realize-theyre-being-robbed/
Published Date: Tue, 24 Oct 2023 02:30:24 +0000
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