Bitcoin and Gold Price Appreciation Contribute to Tether's Record Profit
In the last quarter of 2023, Tether Holdings Limited achieved a remarkable milestone by registering a net profit of $2.85 billion, setting a new record for the stablecoin issuer. This outstanding performance contributed to Tether's overall net profit in 2023, which reached an impressive $6.2 billion. The company's secured loans, amounting to $4.8 billion, were fully covered by the undistributed accumulated profits known as excess reserves, which stood at $5.4 billion.
Strong Financial Performance Driven by Diverse Assets
According to Tether Holdings Limited's latest consolidated reserves report (CRR), the stablecoin issuer's net profit in the fourth quarter of 2023 was primarily fueled by the appreciation of its gold and bitcoin reserves. Of the $2.85 billion net profit, $1 billion was generated from interest on Tether's U.S. treasuries holdings. The remaining portion was derived from the increase in value of its gold and bitcoin assets.
Overall, Tether's net profit in 2023 amounted to $6.2 billion. Approximately $4 billion of this profit was generated through net operating profits from U.S. Treasuries, Reverse Repo, and Money market funds. The remaining $2.2 billion was derived from other asset classes, showcasing Tether's diversified investment strategy.
Excess Reserves Reach All-Time High
In addition to the impressive financial performance, Tether Holdings Limited also experienced a significant increase in excess reserves, which reached a record high of $5.4 billion. This surge in reserves further solidifies Tether's financial stability and ensures that the company's secured loans, valued at $4.8 billion, are fully backed by these undistributed accumulated profits.
Tether's CEO, Paolo Ardoino, commented on the company's financial achievements and the recent BDO attestation, emphasizing their commitment to transparency, stability, and responsible financial management. He also highlighted Tether's investments in sustainable energy, bitcoin mining, artificial intelligence, and peer-to-peer technology as evidence of their dedication to shaping an inclusive financial future.
Share your thoughts on Tether Holdings' remarkable financial performance in the comments section below.
Frequently Asked Questions
Can I purchase gold with 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. If you already have a retirement account, funds can be transferred to it.
The IRS allows individuals up to $5.500 annually ($6,500 if you are married and filing jointly). This can be contributed to a traditional IRA. Individuals are allowed to contribute $1,000 each ($2,000 if married or filing jointly) to a Roth IRA.
You should consider buying physical gold bullion if you decide to invest in it. Futures contracts, which are financial instruments based upon the price of gold, are financial instruments. 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.
How is gold taxed in Roth IRA?
The tax on an investment account is based on its current value, not what you originally paid. Any gains made by you after investing $1,000 in a stock or mutual fund are subject to tax.
If you place the money in a traditional IRA, 401(k), or other retirement plan, there is no tax when you take it out. 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. In Maryland, for example, withdrawals must be made within 60 days of reaching the age of 59 1/2 in order to qualify. Massachusetts allows you to delay withdrawals until April 1. New York has a maximum age limit of 70 1/2. To avoid penalties, you should plan ahead and take distributions as soon as possible.
Who has the gold in a IRA gold?
The IRS considers anyone who owns gold to be “a form money” and therefore subject to taxation.
To take advantage of this tax-free status, you must own at least $10,000 worth of gold and have been storing it for at least five 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 are planning to sell your gold someday, it is necessary that you report its value. This can affect the capital gains taxes that you owe when cashing in on investments.
A financial planner or accountant should be consulted to discuss your options.
Can I hold a gold ETF in a Roth IRA?
Although a 401k plan might not provide this option, you should still consider other options like an Individual Retirement Account (IRA).
An IRA traditional allows both employees and employers to contribute. Another way to invest in publicly traded companies is through an Employee Stock Ownership Plan.
An ESOP is a tax-saving tool because employees have a share of company stock as well as the profits that the business generates. The tax rate on money that is invested in an ESOP is lower than if it was held in the employees’ hands.
You can also get an Individual Retirement Annuity, or IRA. With an IRA, you make regular payments to yourself throughout your lifetime and receive income during retirement. Contributions to IRAs will not be taxed
Can the government steal your gold?
You own your gold and therefore the government cannot seize it. You earned it through hard work. It belongs exclusively to you. However, there may be some exceptions to this rule. You can lose your gold if you have been convicted for fraud against the federal governments. Also, if you owe taxes to the IRS, you can lose your precious metals. You can keep your gold even if your taxes are not paid.
How does a gold IRA account work?
The Gold Ira Accounts are tax-free investment options for those who want to make investments in precious metals.
You can purchase gold bullion coins in physical form at any moment. You don’t have to wait until retirement to start investing in gold.
An IRA lets you keep your gold for life. Your gold assets will not be subjected tax upon your death.
Your heirs will inherit your gold, and not pay capital gains taxes. You don’t need to include your gold in your final estate report, as it isn’t part of the estate.
To open a gold IRA, you will first need to create an individual retirement account (IRA). Once you’ve completed this step, an IRA administrator will be appointed to your account. This company acts in the role of a middleman between your IRS agent and you.
Your gold IRA custodian is responsible for handling all paperwork and submitting the required forms to the IRS. This includes filing annual returns.
Once your gold IRA is established, you can purchase gold bullion coins. Minimum deposit required is $1,000 However, you’ll receive a higher interest rate if you put in more.
Taxes will apply to gold that you take out of an IRA. You will be liable for income taxes and penalties if you take the entire amount.
Even if your contribution is small, you might not have to pay any taxes. However, there are some exceptions. You’ll owe federal income tax and a 20% penalty if you take out more than 30% of your total IRA assets.
You shouldn’t take out more then 50% of your total IRA assets annually. You could end up with severe financial consequences.
Should you Invest In Gold For Retirement?
The answer depends on how much money you have saved and whether gold was an investment option available when you started saving. Consider investing in both.
Gold is a safe investment and can also offer potential returns. It is a good choice for retirees.
Although most investments promise a fixed rate of return, gold is more volatile than others. This causes its value to fluctuate over time.
However, this does not mean that gold should be avoided. You should just factor the fluctuations into any overall portfolio.
Another benefit to gold? It’s a tangible asset. Gold is much easier to store than bonds and stocks. It’s also portable.
As long as you keep your gold in a secure location, you can always access it. Plus, there are no storage fees associated with holding physical gold.
Investing in gold can help protect against inflation. You can hedge against rising costs by investing in gold, which tends to rise alongside other commodities.
You’ll also benefit from having a portion of your savings invested in something that isn’t going down in value. Gold rises in the face of a falling stock market.
Investing in gold has another advantage: you can sell it anytime you want. As with stocks, your position can be liquidated whenever you require cash. You don’t even need to wait until retirement to liquidate your position.
If you do decide to invest in gold, make sure to diversify your holdings. Don’t place all your eggs in the same basket.
You shouldn’t buy too little at once. Start with just a few drops. Then add more as needed.
Remember, the goal here isn’t to get rich quickly. It’s not to get rich quickly, but to accumulate enough wealth to no longer need Social Security benefits.
Gold may not be the most attractive investment, but it could be a great complement to any retirement strategy.
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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- 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)
External Links
wsj.com
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- Want to Keep Gold in Your IRA at Home? It’s Not Exactly Legal – WSJ
bbb.org
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
irs.gov
How To
How to hold physical gold in an IRA
An easy way to invest gold is to buy shares from gold-producing companies. However, this method comes with many risks because there’s no guarantee that these companies will continue to survive. There is always the chance of them losing their money due to fluctuations of the gold price.
Another option is to purchase physical gold. You can either open an account with a bank, online bullion dealer, or buy gold directly from a seller you trust. These options offer the convenience of easy access, as you don’t need stock exchanges to do so. You can also make purchases at lower prices. It is also easier to check how much gold you have stored. You’ll get a receipt showing exactly what you paid, so you’ll know if any taxes were missed. 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. Also, you won’t be able to diversify your holdings – you’re stuck with whatever you bought. Finally, the tax man might ask questions about where you’ve put your gold!
Visit BullionVault.com to find out more about gold buying in an IRA.
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By: Terence Zimwara
Title: Tether Holdings Limited Registers Record-Breaking Net Profit in Q4 2023
Sourced From: news.bitcoin.com/tethers-record-breaking-q4-profit-partly-attributed-to-gold-and-btc-price-appreciation/
Published Date: Thu, 01 Feb 2024 14:30:31 +0000
