The Constitutional Framework
In recent weeks, there has been speculation that President Nayib Bukele of Bitcoin Country, El Salvador, will step down from his current role in order to pursue a second term in office. This move, however, depends on obtaining a special license from the Salvadoran Legislative Assembly, which requires three-quarters approval from the body. Previously, it was 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 Supreme Court's ruling introduced a nuanced framework for seeking a second presidential mandate in El Salvador. It stipulated that a candidate can serve a maximum of two terms within a ten-year period, but crucially, they cannot hold the presidency and campaign simultaneously. This unique provision is designed to ensure that a candidate must "humble" themselves to the status of a citizen without a position of power within the government. This safeguards against the misuse of state resources for campaign purposes, an issue that has plagued many democracies around the world.
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:
- To step down from the presidency before the October 26 deadline and register as a candidate; or
- 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, which is 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 currently enjoys a staggering 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
With the presidential electoral campaign officially underway since 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 prepares 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
What Precious Metals Can You Invest in for Retirement?
Gold and silver are the best precious metal investments. Both are easy to sell and can be bought easily. Consider adding them to the list if you're looking to diversify and expand your portfolio.
Gold: Gold is one of man's oldest forms of currency. It's stable and safe. Because of this, it's considered a good way to preserve wealth during times of uncertainty.
Silver: Investors have always loved silver. It's an ideal choice for those who prefer to avoid volatility. Silver is more volatile than gold. It tends to rise rather than fall.
Platinium is another precious metal that is becoming increasingly popular. It's like silver or gold in that it is durable and resistant to corrosion. It is, however, more expensive than its competitors.
Rhodium: The catalytic converters use Rhodium. It is also used to make jewelry. It's also relatively inexpensive compared to other precious metals.
Palladium: Palladium, which is a form of platinum, is less common than platinum. It's also more affordable. Investors looking to add precious and rare metals to their portfolios love it for these reasons.
What is a Precious Metal IRA (IRA)?
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 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.
You can buy bullion through various channels, including online retailers, large coin dealers, and some grocery stores.
A precious metal IRA lets you invest in bullion direct, instead of purchasing stock. You'll get dividends each year.
Precious metal IRAs are not like regular IRAs. They don't need paperwork and don't have to be renewed annually. You pay only a small percentage of your gains tax. Additionally, you have access to your funds at no cost whenever you need them.
How can I withdraw from a Precious metal IRA?
First, decide if it is possible to withdraw funds from an IRA. Then make sure you have enough cash to cover any fees or penalties that may come with withdrawing funds from your retirement plan.
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 decide to go with this option, you will need to take into account the taxes due on the amount you withdraw.
Next, figure out how much money will be taken out of your IRA. This calculation depends on several factors, including the age when you withdraw the money, how long you've owned the account, and whether you intend to continue contributing to your retirement plan.
Once you determine the percentage of your total saved money you want to convert into cash, then you need to choose which type IRA you will use. While traditional IRAs are tax-free, Roth IRAs can be withdrawn at any time after you reach 59 1/2. However, Roth IRAs will charge income taxes upfront and allow you to access your earnings later without additional taxes.
Once these calculations have been completed you will need to open an account with a brokerage. Most brokers offer free signup bonuses and other promotions to entice people to open accounts. It is better to open an account with a debit than a creditcard in order to avoid any unnecessary fees.
When it's time to make withdrawals from your precious-metal IRA, you'll need a place to keep your coins safe. Some storage facilities will take bullion bars while others require you only to purchase individual coins. Before choosing one, consider the pros and disadvantages of each.
Because you don't have to store individual coins, bullion bars take up less space than other items. But, each coin must be counted separately. However, keeping individual coins in a separate place allows you to easily track their values.
Some people like to keep their coins in vaults. Some prefer to keep them in a vault. Whichever method you choose, make sure you store your bullion safely so you can enjoy its benefits for years to come.
Who holds the gold in a gold IRA?
The IRS considers an individual who owns gold as holding “a form of money” subject to taxation.
To be eligible for the tax-free status, you must possess at least $10,000 gold and have had it stored for at least five consecutive years.
The purchase of gold can protect you from inflation and price volatility. But it's not smart to hold it if your only intention is to use it.
If you plan to eventually sell the gold, you'll need a report on its value. This could impact the amount of capital gains taxes your owe if you cash in your investments.
To find out what options you have, consult an accountant or financial planner.
How is gold taxed within a Roth IRA
An investment account's tax rate is determined based upon its current value, rather than what you originally paid. If you invest $1,000 into a mutual fund, stock, or other investment account, then any gains are subjected tax.
The money can be withdrawn tax-free if it's deposited in a traditional IRA (or 401(k)). Only earnings from capital gains and dividends are subject to tax. These taxes do not apply to investments that have been held for more than one year.
These accounts are subject to different rules depending on where you live. In Maryland, for example, withdrawals must be made within 60 days of reaching the age of 59 1/2 in order to qualify. In Massachusetts, you can wait until April 1st. And in New York, you have until age 70 1/2 . To avoid penalties, plan ahead so you can take distributions at the right time.
Is gold a good choice for an investment IRA?
For anyone who wants to save some money, gold can be a good investment. It is also an excellent way to diversify you portfolio. But there is more to gold than meets the eye.
It has been used throughout history as currency and it is still a very popular method of payment. It is sometimes called the “oldest currency in the world”.
But gold is mined from the earth, unlike paper currencies that governments create. This makes it highly valuable as it is hard and rare to produce.
The supply and demand for gold determine the price of gold. If the economy is strong, people will spend more money which means less people can mine gold. The value of gold rises as a consequence.
On the other hand, people will save cash when the economy slows and not spend it. This means that more gold is produced, which reduces its value.
This is why investing in gold makes sense for individuals and businesses. You'll reap the benefits of investing in gold when the economy grows.
Also, your investments will earn you interest which can help increase your wealth. Plus, you won't lose money if the value of gold drops.
- 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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.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)
- 7 U.S. Code SS7 – Designation of boards for trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement funds
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- Want to Keep Gold in Your IRA at Home? It's Not Exactly Lawful – WSJ
How to hold physical gold in an IRA
An easy way to invest gold is to buy shares from gold-producing companies. But, this approach comes with risks. These companies may not survive the next few years. There is always the chance of them losing their money due to fluctuations of the gold price.
Alternative options include buying physical gold. This means that you will need to open an account at a bank, bullion seller online, or purchase gold from a trusted seller. This option has many advantages, including the ease of access (you don’t have to deal with stock markets) and the ability of making purchases at low prices. It is easier to view how much gold has been stored. You will receive a receipt detailing exactly what you paid. You are also less likely to be robbed than investing in stocks.
There are also some drawbacks. You won't be able to benefit from investment funds or interest rates offered by banks. It won't allow you to diversify any of your holdings. Instead, you'll be stuck with what's been bought. Finally, the tax man might ask questions about where you've put your gold!
BullionVault.com is the best website to learn about gold purchases in an IRA.
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
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