Jake Hughes, CFP®

Financial Advisor for Tech Leaders Who Believe in Math & Hate Taxes | Partner - Barnes Young Wealth Advisors | Tweets are NOT Advice

[Jake Hughes, CFP® @JakeHughesBYWA]

Our clients in the tech space are coming to us with many of the same questions:

1. My company stock has gone up like crazy, should I sell?

2. Won't diversifying cause a ton of tax?

3. XYZ Stock has been going up like crazy, why sell now!?

Let's discuss...

[Jake Hughes, CFP® @JakeHughesBYWA]

SpaceX IPO – Optimize your post-lockup plan https://t.co/AAw63QaeQ0 via @YouTube

[Jake Hughes, CFP® @JakeHughesBYWA]

@markcecchini baby blanket for new baby

[Thomas Kopelman 💵 @TKopelman]

For some time now, S Corps have been growing in popularity among small business owners.

Why?

Mostly because of self employment tax savings

I’ve read numerous comments and threads across social media suggesting that all small business owners should be S Corps

Of course, it might not surprise you that an absolute recommendation toward a particular corporate structure is silly

Not every business should be an S Corp

For some, it can be a really great move

For others, it can be horrible

How do you decide?

Well… you need to understand more about them

So I created the ultimate guide to S Corps for you

It is 19 pages long

It covers:
- The different types of entity structures
- How they are taxed
- The benefits of an S Corp
- How self employment taxes work
- The qualified business income deduction (QBID)
- PTET
- Accountable plans
- Tax planning moves to consider
- How S Corps can impact solo 401(k) contributions
- Downsides of them
- Why real estate typically should not go into S Corps
- How to set one up
- Selling your S Corp
- Etc.

If this interests you, just like and retweet this post and I will DM you the guide at the end of the day

These are things business owners need to be aware of and understand

This will also be the free download when you sign up for my newsletter

[Jake Hughes, CFP® @JakeHughesBYWA]

@TKopelman Will you look at adding a cash balance plan here?

[Jake Hughes, CFP® @JakeHughesBYWA]

Or you can just leave the poor cat😾alone & invest for growth like you should be doing

[Jake Hughes, CFP® @JakeHughesBYWA]

These mental exercises are important to help us overcome ownership bias & keep our portfolios correctly diversified based on our goals

[Jake Hughes, CFP® @JakeHughesBYWA]

Think of your RSUs like a cash bonus. 💵💵

Here’s what I mean:

[Jake Hughes, CFP® @JakeHughesBYWA]

If the answer is, $30K, then you should hold $30K, and sell the other $120K to fund other goals or move to diversified investments

[Jake Hughes, CFP® @JakeHughesBYWA]

Rubin - Great thread. One consideration to note might be to make sure they are investing toward when they will use the 401k funds, not necessarily always they’re planned retirement date.

A 29 y/o NFL player today might be planning to retire at 35. They wouldn’t want to 2030 TD fund as it would be much too conservative for actual use date. (as you know, just thought it would be good add-on here)

[Jake Hughes, CFP® @JakeHughesBYWA]

We see many whose portfolios are tech heavy (typically from RSUs/ESPP)

They’re often looking to diversify away from tech with future investments

We remind them it will take more than the SP500 index to do so effectively

[Jake Hughes, CFP® @JakeHughesBYWA]

Everyone wants to talk about strategies to reduce current tax

It makes us feel good to save now

We focus on reducing your LIFETIME tax bill

We do this by optimizing the 4 phases of tax:

1. Current (Taxes on Income / contributions)
2. Accumulation (Taxes as we build wealth)
3. Distribution (Taxes when we use our $)
4. Transfer (Taxes when we gift now or legacy at death)

[Jake Hughes, CFP® @JakeHughesBYWA]

⏳TIME IN ⌛️the market vs. 🚫TIMING 🚫 the market 💰

[Jake Hughes, CFP® @JakeHughesBYWA]

Don't miss out on your chance to build tax-free wealth for your future self! 💰💸

And always remember to consult a Tax Professional and/or CFP to ensure it's done properly! 🧠
#FinancialFreedom #TaxTwitter #financialplanning

[Jake Hughes, CFP® @JakeHughesBYWA]

⏳URGENT⏳: Max Fund Your Backdoor/Mega Roth IRA While You Can

Let Me Explain... 👇

[Jake Hughes, CFP® @JakeHughesBYWA]

No one knows for sure if/when, but more than likely they will come after this powerful strategy again soon 🚫

For the right client, we are recommending they max out as much as possible each year until that day comes ⌛️