Ricardo Salinas, the billionaire owner of Mexican conglomerate Grupo Salinas, recently shared in an interview that he has allocated 70% of his investment portfolio to bitcoin and bitcoin-related assets.
Shift in Investment Portfolio
The prominent bitcoin advocate disclosed that the remaining 30% of his portfolio consists of gold and shares in his own companies. Salinas emphasized, "I don't have a single bond, and I don't have any other stocks except my own."
Increasing Bitcoin Exposure
Salinas, with a net worth estimated at $4.8 billion, has significantly increased his bitcoin exposure from 10% in 2020. The billionaire has been vocal in his support for bitcoin and aims to make his bank, Banco Azteca, the first in Mexico to accept the cryptocurrency.
Delisting Grupo Elektra
Salinas plans to delist his flagship firm, Grupo Elektra, from public markets, freeing himself from shareholders and giving him greater autonomy in running the business.
Challenges and Defiance
Despite facing challenges such as a 70% drop in Grupo Elektra's share price and legal disputes with the Mexican government over taxes, Salinas remains optimistic. He stated, "Despite all the problems in Mexico, our businesses are doing well. Now I'm free to do my thing."
Commitment to Bitcoin
Salinas reaffirms his commitment to Bitcoin as a fundamental component of his financial strategy, positioning himself as a key influencer in Latin America's Bitcoin community.
Bitcoin's Long-Term Potential
Salinas' unwavering support for bitcoin underscores its potential as a lasting store of value. Should his investment in bitcoin prove successful, Salinas could establish himself as an early corporate advocate for the cryptocurrency.
This article was originally published on Bitcoin Magazine and highlights Mexican billionaire Ricardo Salinas' significant investment in bitcoin.
Frequently Asked Questions
Are precious-metal IRAs a good option?
How willing you are to risk your IRA account losing value will decide the answer. As long as your assets don't grow very rapidly, these are a good option. These may not be the best option if you are looking to save for retirement over many decades and invest in assets that will increase in value (e.g. gold). They also involve fees which could eat into any gains.
Is it possible to take physical ownership of gold from my IRA
Many people want to know if gold can be physically owned in an IRA. This is a legitimate concern because it is illegal.
You can still own gold in an IRA if you look at the law.
The problem is that most people don't realize how much money they could save by putting their gold in an IRA instead of keeping it in their own homes.
It's easy to throw away gold coins but not so easy to put them in an IRA. If you decide that you want to keep your gold at home, you'll be responsible for two tax payments. Two taxes will be charged: one to the IRS, one to the state you live in.
It is possible to lose your gold and pay twice as much tax. Why would you want to keep your gold in your house?
You may argue that it is necessary to have the assurance that your gold safe in your home. To protect yourself from theft, store your gold somewhere that is more secure.
If you plan on visiting often, you shouldn't leave your precious gold at home. If you leave your gold unattended, thieves can easily steal it while you're out of town.
An insured vault is a better choice for gold storage. Then, your gold will be protected from fire, flood, earthquake, and robbery.
Another advantage to storing your gold in a vault is that you won't have to worry about paying property tax. Instead, you'll have to pay income tax on any gains you make from selling your gold.
If you prefer not to pay tax on your precious metals, an IRA may be a good option. With an IRA, you won't have to pay income tax even though you earn interest on your gold.
Capital gains tax is not required on gold. If you decide to cash it out, you will have full access to its value.
Because IRAs have federal regulation, it won't be difficult to transfer your gold to another bank if there is a move.
The bottom line is: You can own gold in an IRA. Fear of losing it is the only thing that will hold you back.
Can I have gold in my IRA.
The answer is yes You can add gold into your retirement plan. Gold is a great investment as it doesn't lose money over time. It is also immune to inflation. It also protects against inflation.
Before you invest in gold, make sure to understand its differences from other investments. You can't purchase shares in gold companies, unlike stocks and bonds. You cannot also sell them.
Instead, convert your precious metals to cash. This means that you must get rid of your gold. You cannot keep it.
This makes gold different from other investments. With other investments, you can always sell them later. This is not true for gold.
Worse, the gold cannot be used as collateral for loans. For example, if you take out a mortgage, you may give up some of your gold to cover the loan.
What does all this mean? Your gold can't be kept forever. You'll have to turn it into cash at some point.
However, there is no need to panic about it. All you have to do is open an IRA account. After that, you can start investing in gold.
Is a gold IRA worth it?
The answer is yes, but not as much as you think. It all depends on your willingness to take on risk. A $10,000 investment per year for 20 years could lead to $1 million by retirement age. However, if you have all your eggs in one place, you could lose everything.
You need to diversify your investments. Inflation is a problem for gold. You should invest in an asset that increases with inflation. Stocks do this well because they rise when companies increase profits. This is also true with bonds. They pay interest each and every year. So they're great during times of economic growth.
What happens if there is no inflation? Stocks fall more and bonds lose value during deflationary times. Investors should refrain from putting all their savings into one type of investment such as a mutual fund or bond.
Instead, they should invest in a mix of different funds. They could invest both in stocks and bonds, for instance. They could also invest in cash or bonds.
They are exposed to both sides of a coin. Both deflation and inflation. They will still experience a return with time.
Are gold and Silver IRAs a good idea or a bad idea?
This is a great option if you're looking for an easy way of investing in both silver and gold simultaneously. There are other options as well. Contact us anytime if you have questions about these types investment options. We're always glad to help!
Statistics
- SEP-IRA”Simplified employee pension” For self-employed people like independent contractors, freelancers, and small-business ownersSame tax rules as traditional IRASEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less4. (sltrib.com)
- The IRS also allows American Eagle coins, even though they do not meet gold's 99.5% purity standard. (forbes.com)
- The maximum yearly contribution to an individual's IRAs is currently $6,000 ($7,000 for those 50 years or older), or 100% of earned income, whichever is less. (monex.com)
- Same tax rules as traditional IRA SEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less Before setting up a Silver IRA, understand the fees and IRS restrictions. (sltrib.com)
External Links
investopedia.com
wsj.com
regalassets.com
en.wikipedia.org
How To
How to decide if a Gold IRA is right for you
Individual Retirement Account (IRA) is the most popular type. IRAs may be obtained from financial planners or banks as well as mutual funds and banks. The IRS allows individuals to contribute up $5,000 annually without worrying about tax consequences. You can contribute this amount to any IRA regardless of your age. However, there are limits on how much money you can put into certain IRAs. You cannot contribute to a Roth IRA if you are under 59 1/2 years of age. If you're under 50, you must wait until you reach age 70 1/2 before making contributions. Additional, employees who work for their employer might be eligible to receive matching contributions.
There are two types: Roth and Traditional IRAs. Traditional IRAs can be used to invest in stocks or bonds, as well other investments. Roth IRAs are only available for after-tax dollars. Roth IRA contributions are not subject to tax when they are made, but Roth IRA withdrawals are. Some people choose to use a combination of these two accounts. There are pros and cons to each type of IRA. What should you look at before deciding which type is best for you? Three things to bear in mind before you decide which type of IRA is best for you:
Traditional IRA pros:
- Companies have different options when it comes to contribution options
- Employer match possible
- More than $5,000 in savings per person
- Tax-deferred growth until withdrawal
- There may be restrictions based upon income level
- The maximum annual contribution limit is $5.500 (or $6.500 if married filing jointly).
- The minimum investment required is $1,000
- After the age of 70 1/2, mandatory distributions must be taken.
- Must be at least five years old to open an IRA
- You cannot transfer assets between IRAs
Roth IRA Pros:
- Contributions do not attract taxes
- Earnings increase tax-free
- There are no minimum distribution requirements
- Investment options are limited to stocks, bonds, and mutual funds
- There is no maximum allowed contribution
- There are no limitations on the ability to transfer assets between IRAs
- Open an IRA if you are 55 years or older
When opening a new IRA it's important to realize that not all companies offer identical IRAs. Some companies provide the choice of a Roth IRA as well as a traditional IRA. Some will let you combine them. There are different requirements for different types. Roth IRAs don't have a minimum capital requirement. Traditional IRAs only require a $1,000 minimum investment.
The bottom line
When choosing an IRA, the critical factor is whether you want to pay taxes now or later. If you plan to retire in the next ten years, a traditional IRA might be the best choice. A Roth IRA might be better suited to you. Whatever your situation, it's a good idea that you consult a professional about retirement planning. An expert can advise you on the best options and how to navigate the market.
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