Categories ArchivesBusiness Insights

Just BDIT 🕺 image

First off, let me add a disclaimer that I'm not an estate planning attorney or CPA and that everyone should seek counsel from one for your own unique circumstances.  The information herein is for information purposes only.  As the election and 2021 nears, we are all aware there may be a change in administration and with that, a potential change in estate tax law (amongst other things).  Now, BDIT's (pronounced bee-dit), AKA 678 trusts, are currently very popular due to their flexibility to freeze the value of an asset or one's estate.  In most trusts, the person setting them up (grantor) typically gifts something of value for the benefit (beneficiary) of a spouse, children, charities and other people.  There are countless ...

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Q1 2020 Quarterly Update image

Quarter 1 Market Update

I made a decision in December to switch from monthly updates to quarterly ones and of course it's been one of the most active quarters I've ever experienced. I truly hope everyone is safe, healthy and most importantly finding productive ways to spend the time in quarantine. As I write this update on Saturday from my house in Austin TX, the virus continues to ravage our communities and the global economy. The Fed has embarked on an unlimited monetary stimulus while the government has passed a $2 Trillion stimulus package with likely more to come. There's a lot of pain out there in the world and while I do get a sense of camaraderie similar ...

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October 2019 Market Update & Outlook image

Monthly Recap After September's noisy month of being dominated by WeWork and a potential impeachment of President Trump, October was equally as busy with a Fed rate cut, continued impeachment discussions, a bailout of WeWork by Softbank and much much more. The markets continued their march higher as the economic expansion continues to break records with each passing month. But one must wonder how much longer can things continue on this path. Negative rates does not make much sense and is a very big experiment most of the developed world is engaged in. My hypothesis is it's not going to end well. A wise man once said that we often meet our destiny on the ...

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May 2019 Market Update & Outlook image

Monthly Recap Another busy month of data and dram with the markets dropping and trade war escalating. To recap, here are just some of the noteworthy events and stories from May: President Trump increased tariffs on Chinese goods to 25% which caught the markets off guard. China responded with their own set of tariffs on around $60B worth of US goods. This continued escalation adds uncertainty at a fragile time in the economy and will surely knock some growth off GDP. Beijing’s threat to use its dominance of rare earths in the trade war risks serious disruption to U.S. industry, by starving manufacturers of components commonplace in everything from cars to dishwashers and military equipmentWith the trade wars front ...

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February 2019 Market Update & Outlook image

Monthly Recap February we witnessed the same recurring themes and headlines in the US and abroad. The equity markets posted solid gains as the markets seem to believe that the Fed has got it's back once again. To recap, here are just some of the noteworthy events and stories from February: Amazon pulls out of NYC due to political backlashThe U.S.’s financial burden is growing despite a strong economy. Total public debt climbed to more than $22 trillion as of Feb. 11, according to a Treasury Department report. The US avoided another government shutdown, however, the President then declared national emergency to use funds to build the great wallBernie Sanders announced his candidacy for the presidency in 2020Trump met ...

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Cut Capital Gains Liability by Investing in Opportunity Zones image

What does it take to spur private capital to invest in areas that are struggling to create jobs and develop their communities? Would a tax break on capital gains realized by investors be enough to inspire them to reinvest those gains in low-income urban and rural communities across the country? Congress has decided to give that theory a try by creating something called Opportunity Zones: designated areas of the country that are crying out for long-term investments but which, until now, have offered little incentive for such speculation. The idea, established by Congress in the Tax Cut and Jobs Act of 2017 (TCJA), offers a mechanism that enables investors with capital gains tax liabilities across the country to receive favorable ...

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Founder Dilution: What It Is and How It Affects Founder Equity image


As a startup that is raising capital, the amount you own today of your company will decline depending on how much capital you raise, how many times you raise, your pre-money valuations and any investor preferences along the way. This is known as dilution and being able to map this out from day one and in multiple scenarios is important so that, as a founder you can protect your equity (possibly). As more funding rounds occur, early investors will also become diluted – not just the initial founders. There are key dilution definitions each founder needs to fully understand.   Keep in mind that there may not be anything you can do to prevent yourself from being diluted over time.  That ...

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A Complete Guide to Series A Funding image

After your business has shown some kind of a track record, Series A funding is useful in optimizing both your product and your user base. This may offer opportunities to scale your product across different markets, expanding your user base. In this round of funding, it’s critical to have a plan for developing a business model that will generate long-term profit. The investors involved in a Series A round of funding tend to come from more traditional venture capital firms. (Rather than the risk-takers who offer seed money, for example.) With all of that said, there are two important questions you must ask yourself as a founder seeking funding: When should I seek Series A funding? What is the process ...

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2017 Tax Cuts & Tax Strategies for Small Business image

It turns out that 2017 was a pretty good year for businesses in the US, at least in terms of tax cuts. In fact, regardless of your political leanings, it cannot be denied that the Tax Cuts and Jobs Act of 2017 included reducing tax rates for businesses and individuals. (There were also additional tax benefits for individuals, as we shared in a previous post). Of course, as with all things government and IRS-related, it would be something of an understatement to claim that interpretation and implementation tend to be somewhat complex. In an effort to provide a bit of clarity and guidance, we share this piece, published by financial planner and strategist Michael Kitces, at his blogsite, Proactive Section 199A ...

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Can you Really Sell Your Company and Not Pay Capital Gains Tax? image

Every now and then Congress gets something right; or, at least, half-right. One can certainly argue that such is the case whenever they provide incentives to encourage taxpayers to invest in qualified small business stock companies. Which Businesses Qualify? Of course, with the IRS being the IRS, understanding which small businesses qualify for such incentives can be a bit confusing. For non-corporate holders of QSB stock, that is, venture capitalists, angel investors, small business owners, and entrepreneurs, to benefit from this change, you must first understand the definition of a “qualified small business stock”. In an effort to keep this as simple as possible, to qualify as QSB stock under IRS Section 1202 a business is defined as: • The stock ...

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