#15 Financial Glory #15

  Capital Gains Exemption Strategies Using Qualified Small Business Stock (QSBS) If you're a founder, angel investor, or early-stage startup employee, the Qualified Small Business Stock (QSBS) exemption under Section 1202 of the U.S. tax code might be one of the most powerful tax strategies available to you. With the right planning, you could exclude up to 100% of capital gains on stock sales—potentially saving millions in taxes. In this post, we explore how QSBS works, who qualifies, and how to structure equity to unlock its benefits. 📌 Table of Contents What Is QSBS? Who Qualifies for Section 1202 Exemption? Exemption Amounts and Holding Period Advanced Planning Strategies Risks and Reporting Considerations What Is Qualified Small Business Stock (QSBS)? QSBS refers to shares in a C-corporation that meet certain IRS criteria under Section 1202 of the tax code. If eligible, gains from the sale of QSBS held for more than five years can be exclude...

  Creating a Personal Holding Company for Intellectual Property Income If you're a creator, inventor, or entrepreneur earning income from royalties, licensing deals, trademarks, or patents, you may benefit from creating a Personal Holding Company (PHC) . This strategic entity helps centralize intellectual property (IP) ownership, protect valuable assets, and potentially reduce overall tax liability — especially when structured thoughtfully. In this post, we’ll cover how PHCs work, how to set one up, and what to avoid to stay compliant with IRS rules. 📌 Table of Contents What Is a Personal Holding Company? Why Use a PHC for IP Income? How to Form a PHC: Step-by-Step IRS PHC Tax Rules and Traps Alternatives: IP LLC or Licensing Companies Further Resources 🏛️ What Is a Personal Holding Company? A Personal Holding Company (PHC) is a C corporation primarily created to hold passive income-generating assets, such as: - Royalties from copyrighted ...

  Series I Savings Bonds vs. TIPS: Inflation Protection Showdown 📌 Table of Contents Why Inflation-Protected Investments Matter What Are Series I Savings Bonds? What Are TIPS? Head-to-Head Comparison: I Bonds vs. TIPS Which Is Better for Your Strategy? Conclusion Why Inflation-Protected Investments Matter Inflation silently erodes your purchasing power, making fixed-income investments less effective over time. To protect your wealth, you need assets that adjust with inflation—like Series I Savings Bonds and TIPS (Treasury Inflation-Protected Securities). Both are backed by the U.S. government, but they function differently and fit different investment needs. What Are Series I Savings Bonds? Series I Bonds are savings bonds that earn interest based on a combination of a fixed rate and a variable inflation rate (adjusted every six months). You buy them directly from the U.S. Treasury and can hold them for up to 30 years. They can be redeemed a...

  Decentralized Finance (DeFi) Lending Protocols for Advanced Investors Decentralized Finance (DeFi) has revolutionized the way investors interact with financial services, enabling permissionless lending, borrowing, and yield generation without intermediaries. For advanced investors, DeFi lending protocols offer an opportunity to earn attractive yields, leverage crypto assets, and participate in an evolving ecosystem that challenges traditional finance. This article explains how DeFi lending works, its advantages, risks, and best practices to help sophisticated investors navigate this innovative space. Table of Contents What Are DeFi Lending Protocols? How DeFi Lending Works Benefits for Advanced Investors Risks and Challenges Best Practices and Tools What Are DeFi Lending Protocols? DeFi lending protocols are smart contract-based platforms that facilitate crypto borrowing and lending without centralized intermediaries. Examples include Aave, Compound, a...

  How to Maximize Returns with Target Date Funds for Millennials Target date funds (TDFs) have become a popular investment choice for millennials looking for a hands-off, diversified, and age-appropriate retirement solution. But to truly maximize their potential, it’s important to understand how they work and how to use them strategically. This guide will help millennials make the most of target date funds and secure a stronger financial future. Table of Contents What Are Target Date Funds? Why They Work for Millennials Maximizing Returns with TDFs Common Mistakes to Avoid Final Thoughts What Are Target Date Funds? Target date funds are mutual funds or ETFs that automatically adjust their asset allocation based on your expected retirement date. They typically start with a higher proportion of stocks for growth and gradually shift toward bonds and cash as the target date approaches. This makes them a “set it and forget it” option for retirement savers....