Brooklyn Fi

Did you know the US is only 64% of the global market? Yet most Americans invest 100% domestically. While the US dominates today, it hasn't always been that way. In the 1990s, Japan represented 40% of the world market before their "lost decade." In today's Liquidity Event episode, Ed and AJ explore: ?? Why diversification beyond the S&P 500 matters right now ?? The real cost of trying to time market volatility ?? How to maintain perspective during market drops ?? Why the economy is not the stock market ?? Taco Bell's Apple-style product launch event (grilled cheese burrito, anyone?) ?? Dave Ramsey's jaw-dropping claim that his 20 rental properties are actually "managed for God" (interesting person to point the finger at when he raises the rent!) The recent market turbulence is making headlines, but long-term investors know this pattern well. Listen now for practical advice on staying the course while others panic: https://lnkd.in/gdZsZqxB #MarketVolatility #GlobalInvesting #FinancialPlanning #Diversification

When it comes to your IPO, getting the right numbers on your tax return isn't a given. ?? Cost basis reporting issues can mean you end up paying taxes TWICE on your long-term gains. AKA To avoid annoying mistakes, you need an advisor on your side that knows to look for your corrected 1099 and waits until all the numbers are in before filing your returns. I'm looking at you CoreWeave employees! Your IPO is imminent. Need more info on IPOs and taxes? Check out our How to Prepare for an IPO webinar on YouTube and/or send me a message!

Congrats ??James McDougal, CFP?, ECA ?on your promotion to Senior Financial Planner! The whole team is proud of your hard work and dedication. You Rock!

?? Going the Cheapest Route Isn’t Always the Best Route in Investing… I did a tax return review recently and was reminded how going the cheapest route isn't always the best route with investing... ?? Here's the context: The taxpayer isn't a fan of investment management fees or complexity in their portfolio, so they have relied on some Vanguard funds to keep things simple. A big chunk of their taxable portfolio is in VASGX – Vanguard LifeStrategy Growth Fund. Now, VASGX is a pretty low-cost way to access an 80/20 portfolio – with a 13bps expense ratio, not bad for an asset allocation fund. ?? The Problem: Capital Gains Distributions But it is a mutual fund, and it has to kick out capital gains distributions. It did that last year, on 12/31. And in this example, that distribution was over $130,000. ?? Yup. $130,000 capital gain. On the last day of the year. ?? The same year this person retired, was moving out of the city, and about to see their income drop significantly in 2025. ?? The Tax Hit That distribution cost about $31,000 in federal taxes and about $10,000 in state taxes on top of it. PLUS, because it happened on 12/31, there was no time left in the year to lose harvest and offset it. ?? A Better Alternative If, instead, the money was in an 80/20 allocation of ETFs, there would have been: ? $0 in distributions ? Complete control over the timing of gains ? Significant tax savings ?? Key Takeaway While I think that target date funds and asset allocation funds have their place, for the mass-affluent, they don’t belong in taxable brokerage accounts. Instead of saving money on fees, they can produce lower after-tax returns and some fun surprises in April. ?? What do you think? #Investing #TaxPlanning #FinancialFreedom #CapitalGains #WealthManagement

Had a blast talking about #QSBS with Ally Jane Ayers, CFP? and John Owens, CFP?, EA, ECA, CPWA? from Brooklyn Fi: https://lnkd.in/gr6FPHD6

??Here's your Brooklyn Fi Weekly Market Update (week of 3/17)??? ?? Stocks Slip, Bonds Hold Steady – The S&P 500 fell 2.23% last week, entering correction territory (down 10% from an all-time high), while small-cap stocks outperformed their larger peers. The 10-year Treasury yield stayed at 4.32%, and bond markets adjusted to expectations of 2-3 Fed rate cuts in 2025. ?? Inflation Data Softens, But Sentiment Sinks – CPI rose 0.2% MoM, bringing headline inflation to 2.8%. Despite this, consumer confidence fell to a 3-year low, signaling overall economic uncertainty. ?? Global Markets Show Strength – Germany and China outperformed last week and year-to date, both markets are up over 20% in 2025. The U.S. dollar weakened slightly, supporting international equity gains. ?? Key Event: Fed Meeting on Wednesday—The FOMC will update rate projections, and markets will watch for clarity on rate cuts. A more cautious Fed could pressure stocks and bonds. ?? Investor Takeaway: With high market valuations and more uncertainty ahead, staying diversified and focusing on the long run is key. Bonds offer attractive yields, and global equities may provide better risk-adjusted returns. 2025 has been a great reminder that we want to invest beyond our own borders. #MarketUpdate #Investing #Finance #Stocks #FedMeeting #BKFi

Made mistakes with your company structure when starting your business? There’s still hope for massive tax savings! In today's episode of The Liquidity Event, tax attorney Christopher Karachale joins Ally Jane Ayers, CFP? and John Owens, CFP?, EA, ECA, CPWA? to reveal how you can fix entity structure mistakes while preserving your QSBS benefits. Discover: ?? How to convert an LLC or S-Corp and still qualify ?? What timing matters fixing entity structure mistakes ?? Step-by-step strategies for fixing past mistakes ?? The critical timing elements for maximizing benefits For company founders, early employees, and investors, understanding these rules could mean $10+ million in tax-free gains. ?? Listen now: https://lnkd.in/gfq7MhPt #QSBS #TaxPlanning #StartupTax #BusinessAdvice

CoreWeave employees!? Your IPO is imminent.? And believe me, it's NEVER simple & stress-free for employees. Here's what you should be doing RIGHT NOW to prepare: ??? ???????????????? ????????????????????. Save monthly PDF statements of your equity grants, exercise prices, and vesting schedules before you lose access during the transition. ?? ???????????? ?????? ???????????????? ?????????? ?????? ??????????. Many CoreWeave employees will face significant AMT exposure given the company's valuation growth. We've seen exercise costs + tax bills exceed $300K for employees with similar equity structures. ?? ???????????????????? ???????? ???????????? ????????????????????????. Your ability to sell post-IPO will likely be restricted for 180 days, with possible exceptions for a small portion of shares on day one. ?? ?????????????? ?????? ?????????????????????? ??????????????????????. Your HR team, finance department, and custodian may be providing different (sometimes contradictory) guidance. Having an expert in your corner helps cut through the noise. ?? ?????? ???? ???????? ???????????????? ??????????. The S-1 is filed, and you should be able to open your stock plan accounts The decisions you make in the weeks before the IPO can have a huge impact on your financial outcome. At Brooklyn Fi, we've developed systematic approaches to navigating this process based on years of experience with tech IPOs. Check out our full 11-page whitepaper, designed specifically for CoreWeave employees prepping for the imminent IPO?? (DM me if you want to talk in detail about your situation) #AI #CoreWeave #IPO #ArtificialIntelligence #TechInnovation #AIInfrastructure #equitycomp

Business founders and startup entrepreneurs: Ever heard of the secret tax benefit that could save you millions in taxes? On tomorrow's Liquidity Event podcast, we dive deep with tax attorney Christopher Karachale on Qualified Small Business Stock (QSBS) - potentially the biggest tax benefit in the U.S. tax code. Learn who qualifies, including: -Early founders and employees who exercise options -Early investors and VCs -Requirements to meet before hitting the $50M threshold Plus, we explore advanced strategies like entity conversions, setting up trusts for family members, and planning considerations for spouses to maximize your tax benefits. ?? New episode drops tomorrow morning. Follow us to catch the latest!

Here’s to the rockstars behind the numbers—our amazing tax managers and preparers! Late last year, we took a break from tax code and spreadsheets to come together for our Tax Team Retreat. It was a chance to learn, collaborate, and recharge before another busy season of helping our clients make the most of their tax strategies. This team works tirelessly year-round to bring clarity, confidence, and a little peace of mind to the world of taxes. We couldn’t do it without them—huge appreciation for this hardworking crew! ????????