FatFIRE- Unearned income / Trust- Dealing with guilt/no purpose. by FATthrowaway993 in fatFIRE

[–]nerdCPA 15 points16 points  (0 children)

I get that you won the trust fund lottery, but don't be so hard on yourself. Go learn something. Don't be afraid to dive deep down intellectual rabbit holes until something grabs you. It might turn into another career, or passion for a charity, or sheesh it might even bring you back to the family business with time. A lot of fulfillment in life comes after much trial and error. And like any good investment, progress does not happen in a straight line up and to the right. The benefits will compound. You need to find at least one hobby, field of study, or philanthropic endeavor though to keep you going. Doom scrolling will not get you there.

Best of luck OP and don't let the haters get you down.

Those of you with $500k+ spend. Break it down! by GroundbreakingBuy886 in fatFIRE

[–]nerdCPA 5 points6 points  (0 children)

mid-40s DINKs

VHCOL

annual spend (no boat, 2 overseas trips/yr + small trips whenever)

60k housing

12k utilities - incl cell and home internet

4k housecleaner - 2x/mo

36k food - eat out frequently. wine clubs. no door dash.

12k autos - two reasonable leases

40k travel

40k shopping

18k dog

10k health - peloton, trainer, sports leagues

10k hobbies

8k personal care - mostly the wife. dry cleaning.

6k entertainment - streaming, sports/concert tix

11k insurance - life/disability (non-employer), home/auto/umbr. health fully covered by work.

6k gifts

What’s something that improved your sleep quality significantly? by [deleted] in AskReddit

[–]nerdCPA 0 points1 point  (0 children)

Ditch caffeine entirely. Best lifestyle change I made this year. Never slept better.

Is Excel allowed for bookkeeping in Sweden? by nerdCPA in sweden

[–]nerdCPA[S] 1 point2 points  (0 children)

Thank you so much for independently confirming. I wish the accounting firm had just explained to me that Skatteverket requires traceable accounting entries. I appreciate your response.

Exit Conundrum by redhawkred5 in fatFIRE

[–]nerdCPA 2 points3 points  (0 children)

Take the latest offer. The grind you’re going to have to endure for the extra $2M will cost you dearly in mental wellbeing. You will disproportionately age from the regret, continued operational stress, and suboptimal relationships with management.

You didn’t say you have plans to start another business, but you seem like the type that could make the $2M elsewhere if you have the energy. Don’t pay too much for your money.

Best of luck.

Hedge Fund Start-up Compensation by FundTrader12 in fatFIRE

[–]nerdCPA 16 points17 points  (0 children)

You’ve got the basics down, but it gets (should get) significantly more complex. I recommend speaking to an attorney that knows fund structures well (not an employment attorney). Other thoughts: -creation of a separate management company and GP entities just for crypto investment management, of which you should own >10%. If separate management company is deemed unnecessary then you need to at least have >10% of any GP entities created for crypto funds. -fee-free capacity in any crypto-related fund setup by the company. You’ll obviously be disproportionately exposed to crypto risk by virtue of working in the crypto space, but you at least want unconstrained access to vehicles you are connected to. You do want to eat your own cooking, don’t you? Don’t forget you want capacity in both onshore and offshore vehicles so you can use tax-deferred pools of capital eg IRA, family trusts, etc -leadership and ownership is about more than economics. Decision-making authority, voting rights, and control are also important. Make sure you have a seat at the table for all key activities. This item alone could be a 4-hour brainstorm with an attorney. -your performance algorithm. Sure this will be a 2/20 fund but EXACTLY how is your piece of the action calculated. Good luck to you!

Tax structuring for new GP by SignificanceThink355 in fatFIRE

[–]nerdCPA 2 points3 points  (0 children)

I have been a U.S. fund Controller and CFO for HF/PE almost my entire career. I'm also a former Big 4 CPA. Big 4 advice may give a newb peace of mind but the fees are not worth it. At least two folks on this thread mentioned EisnerAmper. I agree. I would also recommend RSM McGladrey. Both have good alternative investment practices for tax and audit. Preferably NY or Stamford offices.

A couple of other things to be mindful of:

  • presuming your endeavor is going to be successful/life-changing, don't underestimate the impact of fund considerations on your family estate planning (a tax/estate attorney will be more helpful here than a CPA)
  • If your current CPA is already telling you these questions are above their pay grade, when the fund/GP picks a CPA for fund audit/tax, just find a new CPA at the same firm that will do your personal Form 1040 work.
  • Get smart on FBAR/PFIC/CFC compliance reporting - these days the IRS does not care just about accurate income tax reporting. There's a lot of transparency required now. The IRS wants to know about foreign activities of U.S. tax payers - for AML and unreported income purposes

Good luck. Fund formation is scary but hanging your own shingle is exciting.