Should You Accept Crypto For Payment in Your Business?

If your business has clients that are likely to want to pay with crypto, should you allow it? Since cryptocurrency first hit the currency market, it has caused excitement, disappointment and finally relegation. Even governments around the world are now adopting cryptocurrency as an official form of currency. But is it right for your business? After all, there are inherent volatilities in a currency that is non-regulated and controlled by an admittedly complex system that few truly understand. Before jumping headlong into accepting crypto for payment in your business, there are pros and cons to consider.

Benefits of Accepting Crypto For Payment in Your Business

There are several potential benefits to accepting cryptocurrency as a form of payment in your business. For businesses that embrace innovation and want to expand their payment options, crypto may provide an advantage in specific markets.

1. Expanding Your Customer Base

Accepting cryptocurrency opens your business to a broader, global customer base. Many cryptocurrency users prefer businesses that accept digital currency because it offers them flexibility and the ability to make quick, anonymous transactions. By accepting crypto, your business could appeal to tech-savvy customers or international clients who may find traditional currency exchanges too expensive or cumbersome.

Certain industries—like technology, gaming, or e-commerce—have seen strong demand for cryptocurrency payments. If your business operates in one of these sectors, accepting crypto could be a competitive advantage. If all that’s relevant to your business, it may be worth considering. But if you operate a smaller, local business, the fact that you accept cryptocurrency may be almost meaningless.

2. Lower Transaction Fees

Traditional payment processors, like credit card companies, typically charge transaction fees ranging from 2% to 4%. These fees can add up quickly, especially for small businesses or companies that process large volumes of transactions. Cryptocurrency payments, by contrast, tend to have lower transaction fees because they bypass traditional banking networks. However, the exact fee structure depends on the type of cryptocurrency and the payment processor or exchange you use. Some blockchains, like Bitcoin’s, may incur higher fees when the network is congested, while others like Litecoin or Bitcoin Cash offer cheaper and faster transactions. If transaction fees are taking a huge bite out of your profits, this could be a significant benefit.

3. Faster Transactions

Cryptocurrency transactions can be faster than traditional banking processes, often allowing you to take possession immediately upon confirmation of the transaction. While credit card payments may take a few days to clear and international transfers can be delayed by banking regulations, cryptocurrency transactions generally settle within minutes or hours, regardless of where the customer is located. This speed can be particularly advantageous for businesses that deal with large international orders or those that need faster cash flow without waiting for funds to clear through banks.

4. Protection Against Chargebacks

One of the unique features of cryptocurrency is that transactions are irreversible once confirmed on the blockchain. This eliminates the risk of chargebacks, which can be a problem with credit card payments. A chargeback occurs when a customer disputes a charge and the payment is reversed, often leaving the business to shoulder the financial loss. With crypto, the payment is final, and disputes over transactions must be handled directly between the business and the customer.

Risks of Accepting Cryptocurrency

Despite its benefits, there are significant risks associated with accepting cryptocurrency for business payments that cannot be ignored. These risks stem primarily from regulatory issues, price volatility, and the complexities of integrating crypto into standard accounting practices.

1. Price Volatility

Perhaps the most significant risk of accepting cryptocurrency is its price volatility. The value of cryptocurrencies like Bitcoin and Ethereum can fluctuate wildly in a short amount of time. A customer might pay you in Bitcoin when it’s worth $40,000 per coin, but by the time you convert it to cash, the value could have dropped to $35,000 or lower, even if you do the conversion within hours of receiving payment. For businesses that operate with thin profit margins, this volatility can make accepting cryptocurrency risky.

2. Regulatory Uncertainty

Cryptocurrency is still a relatively new technology, and many countries have not yet fully established how to regulate it. Tax authorities may have specific requirements for reporting cryptocurrency income, and these rules can change quickly. In the U.S., the IRS treats cryptocurrency as property, meaning businesses must track the value of the currency at the time of the transaction and report any gains or losses when converting it to cash. CPAs can help businesses navigate these regulatory requirements, ensuring proper compliance and minimizing the risk of penalties. However, the lack of clear regulations in some countries can make accepting cryptocurrency more complicated than traditional payment methods.

3. Integration With Existing Systems

Many businesses have established systems for accepting and processing traditional payments. Integrating cryptocurrency into these systems may require significant changes, particularly when it comes to accounting and reporting. For example, cryptocurrency transactions must be recorded as property exchanges, and businesses will need to track the value of each crypto payment in real-time.

4. Security Concerns

Cryptocurrency wallets and exchanges can be vulnerable to hacking, and unlike traditional bank accounts, there’s often no recourse if funds are stolen. Businesses that accept cryptocurrency must ensure they have strong cybersecurity measures in place to protect against potential theft. This might involve using secure wallets, two-factor authentication, and partnering with reputable payment processors that offer crypto support.

5. IRS Attention

Cryptocurrency is still relatively new, so if you want to get the IRS’s attention, accepting it for payment is a great way to do it. You can be doing everything aboveboard, but since crypto is the favored currency for some nefarious organizations, it still raises red flags with regulatory authorities like the IRS. If you decide to accept crypto, just be sure to keep perfect records and work with a reputable CPA.

Whether you’re a small business looking to diversify or a tech company eager to attract crypto enthusiasts, understanding the pros and cons of cryptocurrency payments is key to making the right decision for your business.

 

by Kate Supino

 

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Protecting Your Parents From Financial Scams

With financial scams on the rise, it’s imperative to be on guard against all forms of potential financial threats. Unfortunately, some of the most vulnerable people may be your loved ones, especially elderly parents. This segment of the population is less likely to be savvy about scams involving money and about ways to prevent being a victim. Protecting your parents from financial scams is possible, though, with a few simple steps.

Keep Abreast of Trending Scams

In order to keep your parents from being victims, you need to keep abreast about the latest scams yourself. Stay informed by reading relevant articles online, especially those published by authority sites. For instance, the Consumer Financial Protection Bureau is an official website of the U.S. government. They are a verifiable source of reliable information about fraud and scams. Visit this site often to learn about the most recent trends in all kinds of financial scams. Other possible sources of reliable information regarding money scams include your bank or credit union, AARP, The National Council on Aging and certain financial sites such as Money and Investopedia. The more information you equip yourself with, the better you’ll be able to protect your parents.

Common Financial Scams to be Aware Of

This collection of common financial scams to be aware of will be incomplete, because new scams are always surfacing. It seems like scammers spend a lot of time devising new ways to cheat people out of their hard-earned money. Still, this list can form a basis from which you can begin to learn more about money scams.

Phishing 

Phishing is the term used when emails, texts or telephone calls are used to trick people into giving their personal financial information. For instance an email might pop up on your parents’ phone telling them that their social security number has been leaked. They might be tricked into clicking on a link, where they then need to enter their SSN. These messages often appear genuine and urgent, prompting quick action from unsuspecting older folks.

To Prevent: Teach parents never to give out personal information to callers or emailers unless they themselves initiated the call.

Timeshare Fraud

Recently, it’s been discovered that a massive timeshare fraud scheme has been used to steal millions of dollars from unsuspecting Americans. As older people are more likely to fall for this real estate scam, this is a good one to be aware of to protect your parents. In this scam, timeshare owners are offered a chance to sell their timeshare, but with a catch. A hefty “tax levy” would have to be paid first. In fact, that fee goes to Mexican cartels, and the timeshare is never sold.

To Prevent: Educate your parents about this new scam. If your parents are eager to sell their timeshare, find legitimate companies that will help sell the timeshare on behalf of your parents. 

Investment Fraud

Older folks seeking lucrative investment opportunities may fall prey to investment fraud. In this scenario, a “too good to be true” investment with little risk is the lure. In reality, the investment never pays out, and by the time the victims figure it out, it’s too late to recoup their losses.

To Prevent: Ask parents to loop you in on any new investments. Take the time to investigate investments thoroughly, together with your parents.

Grandparent Scams

In this particularly mean scam, a caller pretends to be a grandchild in distress, needing immediate financial help. The grandparent sends a money order or a gift card and, of course, loses out on all that money.

To Prevent: Give your children and your parents a secret word. Let your parents know to always ask for that secret word if anyone calls pretending to be a grandchild in distress. 

Sweepstakes and Lottery Scams

With this scam, victims are told that they’ve come into a great deal of money by winning a lottery or sweepstakes. One famous sweepstakes in particular is often cited. To claim the prize, the victim usually needs to pay a fee or disclose personal data.

To Prevent: Remind parents that no reputable lottery or sweepstakes organization would ask for a fee in order to collect winnings. Encourage parents to contact you if they do receive such a notification, so that you can investigate its authenticity.

Tech Support Scams

Scammers may pose as tech support representatives, claiming that the victim's computer is infected with a virus. This usually happens with a scam popup on the computer. They then ask for remote access to the computer or demand payment for fake repair services. Older folks might feel embarrassed about “breaking” their computer and pay money without telling anyone.

To Prevent: Work with parents online, helping them to successfully navigate their way on the web. Let parents know that they can’t break their computer, and also teach them how to spot the differences between a legitimate website and a fake popup urging them to click.

If Parents do Fall Victim

If, despite everyone’s best efforts, your parents do fall victim to a financial scam, take action immediately. Don’t wait until “Monday” or “tomorrow morning.” Contact the banks, credit unions, investment companies and other relevant institutions where your parents have their money. Call credit card companies, cancel cards and have new ones mailed out, after verifying the correct mailing address. Next, contact your local police department. They may not handle the complaint directly, but they will be able to tell you which agency you need to notify, based on the nature of the scam. 

Your parents spent their young lives taking care of you. Now it’s time to return the favor by watching your parents’ backs and protecting them from the clever financial scams sweeping the world. The more you and your parents discuss this risk, the better you can work together to keep them safe. For more information about safeguarding your parents’ financial future, get in touch with a CPA. 

by Kate Supino

 

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Are Annuities as Good as They’re Hyped Up to Be?

Annuities aren’t such a modern concept as you might think. Although many people are just now hearing about annuities, they’ve been around as far back as the Roman Empire. Citizens of Rome would make a lump sum payment into what they called an “annua” fund. They would then receive a payment each year until death. In the Middle Ages, annuities were used to raise money to pay for wars. In the U.S., the Presbyterian Church used annuities starting in 1720 to fund retirement accounts for ministers and their family. As of 1812, annuities became available to the general public. All goes to show that annuities are a proven asset, which is one of the reasons why they are so lauded today. But are they as good as their reputation?

Benefits of Fixed Annuities

Each type of annuity carries with it unique benefits. You’ll want to decide on the type of annuity you get by evaluating your needs and expectations. One of the most popular kinds of annuities are fixed annuities. These have a wide range of benefits that makes them appealing to people of all economic classes. Some—but not all—of the benefits listed here are also available with other annuity types.

Tax-deferred

Earnings on fixed annuities are tax-deferred, meaning you don’t pay taxes until you begin receiving payments. If you think you’ll be in a lower tax bracket by that time, this is an especially huge benefit.

Money is Safe From Creditors

No matter what kind of financial situation you find yourself in, your creditors can’t get to your annuity. In fact, your money is private from both creditors and lawsuits.

Your Heirs Can Benefit, Too

After your death, your fixed annuity can pay benefits to your heirs. free from the constraints of probate court. Your money will pass directly to your named beneficiary/ This cannot be contested by anyone, either.

Isn’t Included in Student Loan Applications
You aren’t required to include fixed annuity assets on your child’s student loan application, which can make the difference between qualifying and not qualifying.

Note that each state may have different rules regarding annuities, so it’s imperative to consult with your CPA regarding these benefits and benefits of other types of annuities.

Who Can Get an Annuity?

Everyone can get an annuity. There’s no accreditation needed as there is for some other large investment vehicles. You don’t need to have reserve funds in your bank account, or have a history showing that you’re a sophisticated investor. As long as you have the up front cash payment to deposit, you can set up an annuity.

Just know that once you hand over that money, you’ll be liable for surrender costs and other possible fees if you take your money out sooner than the contract terms allow. Therefore, the money you put in should be considered separate from other money and investments you have. This isn’t something you can change your mind about later without significant financial penalties.

Different Kinds of Annuities

Finally, another important thing to know is that not all annuities are the same. Annuities come in various forms, each with unique features and purposes. Here's a brief overview of the different types of annuities:

Fixed Annuities - These annuities provide a guaranteed fixed payment amount over a specified period or for the lifetime of the annuitant. The insurer guarantees both the principal and a fixed rate of interest. They are considered low risk and offer a stable, predictable income stream, making them suitable for risk-averse investors.

Variable Annuities - Unlike fixed annuities, the payments from variable annuities fluctuate based on the performance of investments chosen by the annuitant. These investments often include stocks, bonds, and money market funds. While they offer the potential for bigger returns compared to fixed annuities, they also come with higher risk due to their reliance on market performance.

Indexed Annuities - These are a type of fixed annuity, but their return is tied to a specific market index, like the S&P 500. Your returns are based on the performance of the index, although there's typically a maximum return amount, and a guarantee against loss of principal. They offer a balance between the chance for larger returns and the security of a guaranteed minimum return.

Immediate Annuities - These start paying out income almost immediately after a lump sum is invested. They are often used by retirees who need a steady income stream right away. The payout can be structured to last for a specific period or for the lifetime of the annuitant.

Deferred Annuities - With deferred annuities, the payout begins at a future date, often upon retirement. Contributions are made either as a lump sum or through a series of payments. The money invested grows tax-deferred until it is withdrawn.

Lifetime Annuities - These guarantee income for the lifetime of the annuitant, regardless of how long they live. This removes the risk of outliving one's savings. The downside is that if the annuitant dies early, the remaining value of the annuity may not be passed on to heirs, depending on the contract terms.

Fixed-Indexed Annuities - A hybrid of fixed and indexed annuities, these offer a base rate of return, plus potential additional interest based on the performance of a market index.

Joint and Survivor Annuities - Joint and survivor annuities continue to provide payments for as long as either you or your spouse is living. The payment amount may decrease after the first spouse's death, depending on the contract terms.

As you can see, there are lots of different variations on annuities, and this may not even be a complete list. Financial institutions often create proprietary or hybrid annuities that are tailored to their customers’ needs. Be sure to consult with your CPA before moving ahead with an annuity.

There are very few drawbacks to annuities. As long as you’re aware of early withdrawal penalties, this is an asset worth considering. But, as with other investments, be sure to consult with your CPA before making any moves.

by Kate Supino

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8 New Year’s Financial Resolutions

By now, you may have already given up on some of your New Year’s resolutions. Making huge changes all at once is often too much to sustain. Experts have said that small changes, made consistently over longer periods of time, can be just as transformative—and easier to maintain—than trying to force yourself to change overnight. Of all your New Year’s resolutions, financial resolutions could be the most important for your long-term security. Whether or not the following resolutions made it onto your list, here are eight financial moves worth making in 2024.

1. Track Spending

Many people can relate to the disappointing experience of wondering where all the money went. One minute they’re looking at a huge direct deposit from their employer in their bank account, and the next, it all seems to have dwindled away until there’s hardly anything left. 

Tracking your spending gives you insight into where all the money is going, as well as your own spending habits. Use an app that categorizes each expense, keep receipts or use a money management software on your computer; whatever works for you. Knowing where the money is going gives you power to control it.

2. Build Your Emergency Fund

Think of an emergency fund differently than a regular savings account. Your savings account helps you save for long-term goals, whereas an emergency fund will get you through those big surprise expenses that no one wants to think about. You need both. Use your emergency fund to pay for things like:

  • car repair bill

  • furnace repair/replacement

  • food, rent and utilities if you become sick and unable to work

  • emergency dentist visit

  • emergency veterinarian visit

Strive to accumulate an amount equal to one month’s salary, but keep contributing to your emergency fund even after this goal is reached.

3. Ask For a Raise

Increasing your income will help you to achieve all of your financial goals in 2024, plus help you to maximize your earning potential. If you’ve gone a long time without a pay increase, had scope creep, where your job responsibilities are slowly growing in number, or are simply underpaid in the market, it’s time to ask for a raise. For backup, visit Glassdoor, where you can see what your colleagues make in your same position or job title. Prepare for your meeting by making a list of all your job accomplishments, which prove your value to the company.

4. Pay Down Debt

Tackling debt is crucial for financial freedom. Start by listing all your debts, along with their interest rates and balances. Adopt a strategy: either the snowball method, where you pay off smaller debts first for quick wins, or the avalanche method, targeting debts with the highest interest rates. Consider consolidating debts into a single loan with a lower interest rate, making payments more manageable. Always pay more than the minimum to reduce interest accrual. Finally, cut back on non-essential expenses to allocate more funds towards debt repayment. Consistently reviewing and adjusting your strategy will keep you on track towards a mostly debt-free life.

5. Improve Your Credit Score

Enhancing your credit score is a pivotal financial goal that can jumpstart financial success throughout the year. Start by regularly checking your credit reports for errors and disputing any inaccuracies. Timely payment of bills is essential; set reminders or automate payments to avoid late fees and marks on your credit report. Reduce your credit utilization ratio by paying down credit card balances and keeping them well below the credit limits. Avoid opening new credit lines unnecessarily, as each inquiry can temporarily lower your score. If you have a thin credit file, consider a secured credit card or becoming an authorized user on a responsible person's account. Regular monitoring and responsible credit habits will gradually improve your credit score.

6. Educate Yourself

Financial literacy is something that many parents fail to teach their children. Still, there are plenty of free and paid resources available for you to educate yourself on areas where you may be lacking information. Your CPA is a valuable resource, who can explain the tax aspects of your financial dealings. The more you know about making, saving and investing, the better financial decisions you’ll make for yourself and your family. Make a point of either enrolling in an online course, reading finance-related books or watching instructional videos at least once a week.

7. Stop Paying Fees

Warren Buffet is notorious for penny-pinching. Do you think he’d pay petty fees without complaining? He once refused to do a deal when a potential partner quietly increased the share price by a few pennies. From bank fees to ATM fees, to small charges just for moving your money, stop letting money trickle through your fingers. With a little planning and foresight, you won’t have to pay extra just for paying a bill with a credit card instead of a debit card, or for buying gas with a card instead of cash. You could save all that money and stash it away in your emergency fund instead.

8. Start a Small Business

Turn a hobby or other interest into a small business and reap the rewards of dozens of business tax deductions. You could get credit for having a home office, using your personal car for work and using your cell phone for business phone calls. Your CPA will help you to learn how to set up a small business so you can maximize your tax savings while increasing your revenue streams. And who knows? There’s always the chance that your small business could grow into something where you can eventually work entirely for yourself someday!

Making and keeping these New Year’s resolutions is more than a one-time commitment. Done well, they can help you to achieve a lifetime of financial well-being and self-empowerment. And you don’t even have to do it alone. Your CPA doesn’t just crunch numbers; they can offer personalized advice, help you navigate through complex financial decisions, and develop strategies tailored to your unique financial goals. 

 

by Kate Supino

 

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The Impact of Inflation on Your Finances: Strategies for Protection and Growth

Inflation is a mystery for many. Unless you’re an economist, this economic phenomenon is elusive and mysterious. It’s also something that we have no control over. Yet, it wields an undeniable, powerful force over your finances. Because of this, it pays to try to understand what inflation is and its impact on your money.

What is Inflation?

Technically speaking, inflation is defined as the rate at which prices inflate and purchasing power declines. There’s a direct link between the two. When prices of goods and services go up, the value of your dollar goes down. To put it into simple language, if you have $10 and apples cost a dollar each, you can buy ten apples. When the price of apples inflates to $1.50, you can only buy six apples. The price went up, so your purchasing power went down. Think of it like a seesaw.

Inflation and the Economy

With inflation, it’s not just your personal finances that are affected. Sure, you can’t buy as many apples, but the dollar in general has less value in the market, and that holds true for all areas of the market, from the local fruit stand, to U.S. government purchases from foreign governments.

And, when the dollar falls in value, that means that other currencies are stronger than they were in relationship to the dollar. Someone using another currency, like euros, can buy more of an item that’s selling in U.S. dollars, because their currency value has become a little bit higher compared to our dollar.

So inflation in the U.S. impacts not just you and your household apple supply, but the entire world. That’s very overwhelming to think about, especially since there’s nothing you can personally do to control inflation.

Inflation and Your Investments

Inflation doesn’t just lower your purchasing power. It also hits home with your investments. A simple example would be a household with $1,000 in a savings account earning a modest 1% in interest. After a year, your $1,000 in savings will have grown to $1,010. But when inflation is at 2%, you lose 2% of your purchasing power. So even though you now have $1,010, it’s only worth $990. You actually lost value!

It gets worse. Inflation is cumulative. Over a period of ten years, with 2% inflation each year, the costs of goods and services will go up by about 22%, leaving you with that much less purchasing power.

How to Protect Your Finances Against Inflation

Hopefully, now you can see why you can’t just ignore inflation and how it impacts your money. And, while you can’t do anything to “cure” inflation, there are things you can do to mitigate its negative effects on your finances. Before making any major financial decisions, consult with your adviser of choice.

Consider Inflation-indexed Securities

Treasury Inflation-Protected Securities (TIPS) are inflation-indexed bonds. This means that they give you a fixed rate of return, but the principal value of the bond is adjusted for inflation, so you get some added protection. TIPS are available for purchase online at TreasuryDirect or through brokerage firms.

Avoid Getting Caught up in Purchasing Contracts

There are some home purchase programs where you can rent a property now, and then when you’re ready to buy a year or so later, you can purchase the property at its market value. In exchange for this “first right to purchase,” you pay a slightly higher rent rate than market value. But when the year comes for you to buy, odds are extremely high that the house price will have risen. So all you’re getting out of the deal is the “chance” to pay higher rent than you should have paid for an entire year. No matter what, you’ll have to pay more for the house at a later date. You would have been better off paying lower rent elsewhere and investing your accrued down payment money in something like TIPS bonds or another smart investment vehicle.

Keep Debt Low

With declining purchase power comes a reduced ability to repay debt. High levels of debt will be crippling in high inflation scenarios, especially if the debt interest rate is fixed. Keep your debt exposure to a minimum in order to help ensure your financial security when inflation rises.

Buy Now

If you’re planning on making major purchases that you can readily afford to buy now with cash, it might be smart to buy now before prices go up. Examples include a new roof on the house or a new addition on your home, since construction materials are some of the first to go up when inflation rises. Other examples include large home appliances like furnaces and water heaters. Remember, only consider this strategy if you can afford to pay cash.

Reduce Frivolous Spending

As much as possible, curb spending on non-essentials when inflation is high. You’ll end up paying more for things that won’t hold their value, or waste money that you may need for essentials like shelter, food, clothing or transportation. The government hopes you’ll consume more in order to boost the economy and keep inflation in check, but leave that up to wealthier folks who aren’t having to look for quarters in the couch at the end of the month. The economy will be just fine without you buying a new plasma screen this month.

When inflation is especially bad and you’re having to tighten your purse strings, it’s a good idea to check in with your CPA. Your CPA can help you to identify ways to better manage cash flow, find hidden tax deductions and advise on your financial moves in a difficult economic climate.

by Kate Supino

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Financial Literacy 101: The Key to Building a Secure Financial Future

The key to building a secure financial future is as much about knowledge as it is about having a lot of money. Lots of people with tons of money have squandered it away because they were financially illiterate. Many with very little have lifted themselves out of poverty by learning as much as they could about money and business matters. Whether you’re just starting out or trying to turn bad finances around, here are some of the basics you should know.

Start Saving as Soon as You Start Earning

Every time you get a paycheck, put a certain amount or a certain percentage into a savings account. If you start doing this as soon as you start earning, you’ll have a tidy sum by the time you hit the age of 21. Those who don’t make a habit of saving will find that they have nothing to show for the years of hard work, except maybe a handful of possessions. When you put money aside for later, life’s unpleasant surprises won’t upend your life. You’ll have security. You’ll have money to pay for the expensive car repair, that last minute flight to see an elderly relative one final time, or that out-of-pocket medical bill. You’ll also have cash on hand to take advantage of the opportunities that will come your way in life, which could be the ticket to lifting you into a more lucrative financial situation.

Your Credit Habits Are Being Tracked

Even if you don’t pay attention to your credit history, credit agencies are tracking it. Every time you make a payment on time, it gets noted on your credit file. The same thing happens when you’re late with a payment. It’s not just about your credit score; it’s about your credit history and how you use credit. When it comes time for you to borrow, apply for credit or a mortgage, all that history is going to be used either for you or against you. It’s worth every penny to subscribe to a credit monitoring service, where you can track your own credit on a weekly or even daily basis. Not only does it let you know where you stand, but it can be very motivating as far as trying to create the best credit history possible.

Understand the Differences Among Financial Experts

There are important distinctions among various financial experts. Knowing these differences will help you to get the right help you need from people you can trust to put your interests first.

Actuary

Actuaries primarily work within the context of pension plans, retirement funds, insurance and investments. They often work in the interest of companies, conducting due diligence and research into risk management and setting insurance premium rates.

CPA

CPAs, or Certified Public Accountants, are licensed professionals who offer individuals and businesses support around tax matters, financial planning, auditing, cash management and financial consulting. They may work in a CPA firm or another entity or for themselves. They do not represent any entity other than their clients.

Accountant

Accountants may or may not have formal education, and are a step above bookkeepers. They handle a broad range of general financial tasks, often in a support role for CPAs. They may work for a company or for themselves.

Financial Advisor

Financial advisors provide guidance on various aspects of personal finance and investment management for individuals. They may have interests other than their clients and may receive income, commissions or bonuses for bringing new business to particular investment funds or companies.

It’s Okay to Change Jobs For more Money

In the past, people stayed at the same company for 25 years or more. But what’s often forgotten is that “back then,” that long stint at one company often paid off with a pension well into old age. Today, pensions are very rare unless you work for an educational institution or government agency, so there’s no impetus to stay at the same job for decades at a time. You shouldn’t feel so loyal to a company that you forgo the opportunity to earn more money elsewhere. You don’t get a prize for staying in the same job. So keep trying to increase your salary, even if it means saying goodbye to a job you enjoy. The end result might just be a happier you, with less stress over money. In some cases, you might even be offered a raise at your current job if they feel they don’t want to lose you over money.

Work on Some Form of Passive Income as Soon as Possible

When you’re younger, it’s fine to spend 40 hours a week or more earning your salary. As time goes by, you’ll have less energy and may grow weary of getting yourself to the office everyday. As early on in life as you can, work on getting some kind of passive income. It doesn’t have to be the kind of income that allows you to buy a Bentley with a chauffeur; it can just be supplemental income that takes some of the pressure off later in life. Then, if something happens and you can’t work full-time or you want to supplement your social security in retirement, you’ll have a little something coming in to help pay for groceries or add some discretionary money to your budget.

Get Rich Slow

There are lots of recent examples of people becoming rich almost overnight. Bitcoin made lots of millionaires, but many of them lost their profits just as fast. NFTs are an inexplicable trend where we still have to see how they play out. Social media influencers make it seem like they’re making money hand over fist. But these examples aren’t reliable for a secure financial future. YouTube channels can be demonetized on a whim. Crypto is like playing Jenga. Focus on steady, educated financial moves, and you’ll get ahead no matter what the latest fads are.

For more help on building a secure financial future based on your individual resources and situation, consult with your CPA, who is on your side and no one else’s.

by Kate Supino

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