I plan on retiring here within the month if lucky.
(trying to wrap stuff up at work and make the move health care etc...a pain!)
But, trying to be a responsible adult...don't need crypto to retire but it is a nice 'backstop' even if never used...
I am still minng, though at the rate all flavors of crypto is going up..it MAY be unlikely I will get any mining equip
again this year, just because....makes no sense ..(even if the equip did have good roi and not expensive ...which is iffy)
Thus filling up the following buckets as best I can, and all can be taken off like equip and elec from gross income..(including any crypto cash out of coins)
1) solo 401k self-employed socked w/as much as allowed for 2017.
2) solo 401k self-employed socked w/as much as allowed for 2018. (estimated..kept in an account as cash till prudent to fill it up)
3) electric/rent/etc from data hall and miners in basement
4) all medical insurance can be taken off gross if you are self-employed...thus with mining...set aside 2 years for that (also in cash for use or full buy out yearly)
5) an emergency fund of as much as I can think of needed for House/Medical/etc
Now, most will say ...why not keep all that in crypto...the 2017 and solo 2018 plans you can put your assets in crypto (after they go in as cash) but as my CPA
says, likely that is the last crypto you ever want to cash out!)
The other stuff is just peace of mind...I have been in crypto since 2013...I was there when 10 days or so, before the 2014 April deadline of doing taxes...the IRS
dropped the 2013 guidelines bomb out of spite..and I had to go to CPA and do a correction....which was fine....all that nice equip deductions! NO taxes paid!
But still, that is NOT why the IRS waited till 10 days before..was just to screw with us...so best to be aware they can always still drop a shoe, before April...
As to the Coinbase demand, of 2017, we want ALL your info on all 15 million folks on Coinbase...including passwords, because we found 3 people cheating w/IRS
using coinbase....
well having an emergency fund, above and beyond the solo 401k retirement stuff of 2017 and 2018 ..and also have my health insurance paid up in full up until
I'm 65 years old> (2 years)...I plan on taking my Soc Sec at 66 and 3 months which is the full status on such...
All seems prudent
so
1) IF BTC does its past history of a 30% correction, I can pat myself on the back and have all this cleaned up and in place, and pat myself on the back.
2) IF BTC and other cryptos I have tripled in value or something, and I had this stuff out in cash too soon, on this me being cautious....well, that won't matter much
at those prices to me either...
win/win/win
time/backups/pump (or so I hope)
anyway, how I'm approaching mining in 2018 and free some crypto back to $$$.....
I used to do the above as a 'hedge' with equip ...betting like this...but with solo 401k and electric/data hall rent, now medical insurance all ACTING LIKE equipment
in being taken off my gross earnings in 2018.....why get dubious miners (at least until say June 2018..maybe for fun look around)
Again, beats...betting on March orders of L3+'s and other dubious cryptos for hardware stuff from Bitmain in 2018, esp with solo 401k and medical, being an IRS hedge
Just like, equip off my gross income
Anyway, times to buy equip and times not to buy equip, now is not the time for me and the above...but likely MAY crack on this around JULY 2018.....if/when some
product comes up that makes sense....but anyway, how I'm playing with the wealth...trying to be prudent in case 30-50% goes poof....
whatever you do for planning it is all about protecting the ego, don't ya know.....so even again if all crypto's pump 3-10x again.....
I have my reasons in place, for doing the above...
my 2 mbits worth!
later
brad
edit: solo 401k link....
https://www.checkbookira.com/Again, that above works for medical all off gross income too, IF you are setup as self-employed in USA, (ie mining) IT must come from Income...site has
on the solo401k has a calculator on how much you make 'self-employed' with a solo 401k you can put aside...anyway link is for details
