What to do when all that paper suddenly turns “green”?
Dream Big, however, be cautious! Don’t be in a hurry to go on a spending spree except taking your better half out for a great dinner (you owe them). Wild spending is a guarantee you will lose track of the funds you have spent. You are an expert at being patient! Use it to your advantage. Organize your future starting today.
I will try and keep this blog short. No guarantees.
For many of our fellow travelers here at Compumatrix, this is the question of the ages. Where do I start? We have all been dreaming of the many accomplishments that will be achieved through our generous souls. It’s time to begin formulating long and short-term strategies.
- What is the best way to transfer my new-found funds to my local bank or safe wallets?
- Should I pay tax on the funds or put it into a savings/tax account and, what will be my future obligations?
- How should I set aside a proper amount of funding to match the timeline for my projects?
- I understand the necessity of getting the advice of a competent accountant who understands Cryptos?
- Should I have a plan on how the funds will be allocated, daily or monthly?
The above is representative of only a handful of the many questions that are now part of your life all having the answers ahead of time will save you many headaches. Alleviate issues down the proverbial “yellow brick road” organize yourself. Many will feel pressure complying with all of this information. Fear not! If you take your time and build an organizational spreadsheet, you will find life much easier and manage your portfolio. You can create one from scratch or have your accountant construct one together for you.
Part of having your new green wealth has the ability to oversee your funds by creating a history that is useful for yourself and your accountant. A good spreadsheet can be very gratifying and does contribute to mental stability!
It goes to “back in the day” when you said to your significant other, “I just want to roll around in a big pile of $100-dollar bills” (clothing optional). It’s great fun to watch your dreams and that of your family finally coming to fruition. Now it is time to be more practical yet still have fun.
The following offers a few ideas on how to proceed. It is not advice, just trying to point you in the direction of a reasonable solution. Draw your personal conclusions.
Question 1 – Talk to your accountant first, don’t have one? Look for an accounting team familiar with Cryptos and more, importantly, tax laws for your state and country. Set up bank accounts with tight security protocols in place to protect your interests. A separate account for tax dollars is a good suggestion. Keep the majority of your funds in a private bank or wallet and move funds when needed. It is not a good idea to place all of your funds in one place for any length of time.
Research your best options to include a Trust, Foundation, or company before turning the Cryptos into fiat (money). Keep your wallets flush but not filled to the brim. Senior members suggest that it is best to keep only what you are going to use in our group. Avoid being hacked, use very long creative passwords (see the newest Password generating program on our Discord Page).
Question 2 – Avoid spending years fighting with taxing authorities in your country. Arrange to pay what is due early on in your relationship with them. Have a tax account (and do not attach a Debit card or an online payment program to your tax account). Allow the accountant to handle the payments. Utilizing a spreadsheet will make it easier to keep track of State, Local and, Federal taxes to be paid. There are many ways to utilize your assets while keeping track of values and seek proven advice from an acknowledged source. Uncle Joey is not one of them! Also, keep in mind the charities you will be involved with, use your ability, and research them. Your favorite taxing authority will know if you can take a deduction or not and also how much?
Just between us and you, our fellow travelers, arrange to pay all of those way overdue bills, look to clean up your credit quickly once you have the funds to do so. It will reduce the amount of “ugly mail” constantly filling your mailbox.
Question 3 – You already have a basic plan in your head and, like many of us, also on paper. An example would be a new house or your first big purchase. The house cost X now adds in the costs associated with a lawn service, a new pool, new furniture, a golf cart to drive down to the clubhouse or practice tee, new televisions, computers, dining room table and chairs, new pots and pans, etc. You want to keep a list of purchases, warranties, new golf clubs, and lots of clothes (unless you are moving to a warm climate, then it’s shorts, loud printed shirts, and a goofy hat). Did you know that those Pink golf pants are over $100+?
Purchases of big-ticket items, including property, a home, automobile, etc., should be discussed with your accountant or financial advisor regarding tax ramifications. Allowable deductions are to be part of the conversation. Trusts and foundations are a necessity to protect funds for your children. Be sure you understand the advice, and don’t hesitate to ask questions regardless of how dumb you think they are. The conversation should also include funding your purchase via a crypto loan (collateralized by your holdings).
A poor interpretation on your part could result in a costless mistake!
Question 4 – Pretty much answered above Q 1-3. All are necessary to provide a healthy and functioning security blanket for your family, foundation, and future investments. You earned that pile of money; it has been structured from day one with a few adjustments that can be made along the way.
Question 5 – Your basic plan started a long time ago with what you want to accomplish with your funds. Put it all on paper and watch it grow. Cover all of your bases. Stash a little away for a rainy day just in case. It never hurts to have a security blanket.
Case in point: many years ago, a friend of mine told his son and me that when he dies, dig up the back yard. It took us two days to dig it up. It was gratifying for his family, and a lesson learned for me. Keep your funds secure and, try not to forget where you buried them.
Good luck to everyone as we move forward with our new adventure. Thanks for looking in.
This is an opinion, not advice from Compumatrix, its members, staff, or Board of Directors. Please always seek the advice of professionals.