Ricardo Salinas, the billionaire owner of Mexican conglomerate Grupo Salinas, recently shared in an interview that a significant portion of his investment portfolio, 70%, is allocated to bitcoin and bitcoin-related assets.
Betting Big on Bitcoin
Salinas, a prominent bitcoin advocate, disclosed that the remaining 30% of his portfolio includes investments in gold and shares of his own companies. He boldly stated, "I don't hold any bonds, and the only stocks I own are in my own companies."
Increasing Bitcoin Exposure
Salinas, whose net worth is estimated at $4.8 billion, has substantially raised his bitcoin exposure from 10% in 2020. His unwavering support for bitcoin is evident as he aims to make his bank, Banco Azteca, the first in Mexico to accept the digital currency.
Strategic Business Moves
As part of his strategic business decisions, Salinas plans to delist his flagship firm, Grupo Elektra, from public markets. This action is intended to give him more control over the business and reduce shareholder influence.
Overcoming Challenges
Despite facing challenges such as a significant drop in Grupo Elektra's share price by 70% last year, resulting in a substantial loss of his fortune, Salinas remains resolute. Legal disputes with the Mexican government over alleged unpaid taxes have not deterred his commitment to his vision.
Bitcoin as a Core Strategy
Salinas remains steadfast in his support for Bitcoin, considering it a fundamental component of his financial strategy. His unwavering stance positions him as a key figure in advocating for Bitcoin adoption in Latin America.
Validating Bitcoin's Potential
Salinas' vocal endorsement serves as a validation of Bitcoin's long-term value proposition. If his bold investment in Bitcoin proves successful, he could solidify his position as one of the pioneering corporate figures to embrace the digital currency.
This article on Mexican Billionaire Salinas' significant Bitcoin investment was originally featured on Bitcoin Magazine.
Frequently Asked Questions
How much should I contribute to my Roth IRA account?
Roth IRAs allow you to deposit your money tax-free. You cannot withdraw funds from these accounts until you reach 59 1/2. You must adhere to certain rules if you are going to withdraw any of your contributions prior. First, you can't touch your principal (the initial amount that was deposited). No matter how much money you contribute, you cannot take out more than was originally deposited to the account. If you wish to withdraw more than you originally contributed, you will have to pay taxes.
The second rule says that you cannot withdraw your earnings without paying income tax. Withdrawing your earnings will result in you paying taxes. For example, let's say that you contribute $5,000 to your Roth IRA every year. Let's say you earn $10,000 each year after contributing. The federal income tax on your earnings would amount to $3,500. You would have $6,500 less. The amount you can withdraw is limited to the original contribution.
The $4,000 you take out of your earnings would be subject to taxes. You'd still owe $1,500 in taxes. In addition, 50% of your earnings will be subject to tax again (half of 40%). So even though your Roth IRA ended up having $7,000, you only got $4,000.
Two types of Roth IRAs are available: Roth and traditional. A traditional IRA allows for you to deduct pretax contributions of your taxable income. Your traditional IRA allows you to withdraw your entire contribution plus any interest. You can withdraw as much as you want from a traditional IRA.
A Roth IRA doesn't allow you to deduct your contributions. You can withdraw your entire contribution, plus accrued interests, after you retire. There is no minimum withdrawal limit, unlike traditional IRAs. You don't need to wait until your 70 1/2 year old age before you can withdraw your contribution.
How Much of Your IRA Should Include Precious Metals?
It's important to understand that precious metals aren't only for wealthy people. It doesn't matter how rich you are to invest in precious metals. You can actually make money without spending a lot on gold or silver investments.
You might also be interested in buying physical coins, such bullion rounds or bars. You could also buy shares in companies that produce precious metals. You may also be interested in an IRA transfer program offered by your retirement provider.
No matter what your preference, precious metals will still be of benefit to you. They offer the potential for long-term, sustainable growth even though they aren’t stocks.
And, unlike traditional investments, their prices tend to rise over time. This means that if you decide on selling your investment later, you'll likely get more profit than you would with traditional investing.
How is gold taxed within a Roth IRA
A tax assessment for an investment account will be based on the current market value, and not what you paid initially. Any gains made by you after investing $1,000 in a stock or mutual fund are subject to tax.
You don't pay tax if you have the money in a traditional IRA/401k. Dividends and capital gains are exempt from tax. Capital gains only apply to investments more than one years old.
These rules vary from one state to another. Maryland requires that you withdraw funds within 60 business days after reaching the age of 59 1/2. Massachusetts allows you to delay withdrawals until April 1. New York offers a waiting period of up to 70 1/2 years. To avoid penalties, you should plan ahead and take distributions as soon as possible.
Is gold buying a good retirement option?
Although it may not look appealing at first, buying gold for investment is worth considering when you consider the global average gold consumption per year.
The best form of investing is physical bullion, which is the most widely used. There are other ways to invest gold. The best thing to do is research all options thoroughly and then make an informed decision based on what you want from your investments.
If you don't want to keep your wealth safe, buying shares in companies that extract gold and mining equipment could be a better choice. If you are looking for cash flow from your investment, buying gold stocks will work well.
You can also invest your money in exchange-traded fund (ETFs), which give you exposure to the gold price by holding securities related to gold. These ETFs can include stocks of precious metals refiners and gold miners.
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)
- 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)
- 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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (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)
External Links
finance.yahoo.com
cftc.gov
investopedia.com
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- Are you interested in keeping gold in your IRA at-home? It's Not Exactly Lawful – WSJ
How To
Three Ways to Invest In Gold For Retirement
It's crucial to understand where gold fits in your retirement strategy. If you have a 401(k) account at work, there are several ways you can invest in gold. You may also be interested in investing in gold beyond your workplace. You could, for example, open a custodial bank account at Fidelity Investments if your IRA (Individual Retirement Account) is open. If precious metals aren't your thing, you may be interested in buying them from a dealer.
These are the rules for gold investing:
- You can buy gold with your cash – No need to use credit cards or borrow money for investment financing. Instead, invest in cash. This will protect you from inflation and help keep your purchasing power high.
- Physical Gold Coins to Own – Physical gold coin ownership is better than having a paper certificate. The reason for this is that physical gold coins are much more easily sold than certificates. Also, there are no storage fees associated with physical gold coins.
- Diversify your Portfolio – Don't put all your eggs in one basket. By investing in multiple assets, you can spread your wealth. This reduces risk and allows you to be more flexible during market volatility.
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By: Vivek Sen Bitcoin
Title: Mexican Billionaire Salinas Reveals 70% Bitcoin Investment Portfolio
Sourced From: bitcoinmagazine.com/uncategorized/mexican-billionaire-salinas-says-he-has-70-bitcoin-related-exposure
Published Date: Tue, 04 Mar 2025 16:46:52 +0000
