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What I Read This Week May 12th, 2025Billy Amberg4 days ago1 min readClick here to talk to Bloomwood about your finances.PodcastDoug Burgum, Secretary of the Interior | All-In DCBrooke Rollins, Secretary of Agriculture | All-In DCTrump's First 100 Days, Tariffs Impact Trade, AI Agents, Amazon Backs DownBlackstone's King of Hedge Funds on Alt Investing Right NowHow Andreessen Horowitz Disrupted VC & What’s Coming NextThe Hidden Globe: How Wealth Hacks the WorldTe Hidden Globe: How Wealth Hacks the World   

What I Read This Week (5/5)Billy AmbergMay 5, 20231 min readNever Split the Difference (Chris Voss) Improve your outcomes. Learn from former FBI lead hostage negotiator Chris Voss.Case Studies From Principles for Navigating Big Debt Crises (Ray Dalio)Icahn Enterprises: The Corporate Raider Throwing Stones From His Own Glass House The 10 most important questions you should discuss with potential co-founders before deciding to work together:   

What I Read This Week May 3rd, 2025Billy AmbergMay 51 min readClick here to talk to Bloomwood about your finances.XWho are the top companies that do LLM-SEOApple in willful violation of this Court’s 2021 InjunctionNorthern District of California court has ruled on the Epic v Apple anti-steering injunction’s contempt of court proceeding!Something is seriously wrong hereThe Hidden Globe: How Wealth Hacks the WorldTe Hidden Globe: How Wealth Hacks the World   

Click here to talk to Bloomwood about your finances. Bloomwood is happy to show you how to unlock massive wealth using this tactic and others completely free of charge with no obligation to become a client. One hour or less could set you on a path to 20-50% more income and wealth. Be curious. Don't settle. Make sure you're not missing out on anything to create and unlock wealth. Welcome back to another case study, where we dive deep into real client scenarios and the strategic planning that goes into achieving big financial wins. Today’s focus: a high-growth software implementation company and how strategic entity structuring and tax planning are projected to save the owner hundreds of thousands—potentially even millions—in taxes. Let’s start with the results, then break down how we got there. Case Overview: High-Growth Software Business with Big Goals Meet "John," the owner of a software implementation business generating $11 million in annual revenue (as of 2024), with similar or higher projections for 2025. The company’s net profit sits at around $1.2 million, with John taking home approximately $800,000 through a mix of salary and distributions from an S Corporation (S Corp). But here’s the thing—this isn't a lifestyle business. John wants to grow and eventually sell. That changes everything from a tax planning perspective. Key Results: $150,000+ in Immediate Savings in Taxes with C Corp & QSBS Strategy Through strategic planning, we’re projecting: $150,000 in income tax savings for 2025 alone $400,000–$500,000+ in savings in future years as the business grows Potential to sell the company with zero capital gains tax, thanks to Qualified Small Business Stock (QSBS) strategies Let’s unpack the journey that led to these impressive savings in taxes with the C Corp & QSBS strategy. Step 1: Choosing the Right Business Structure Business entity structure has massive implications for tax planning. Let’s review the main types and why we made a change. Here are some bonus articles we have written on this topic: LLC vs. S Corp: Choosing the Best Structure for Your Business Bloomwood Guide - When does it make sense to convert an LLC or S-Corp to a C-Corp? Bloomwood Guide - Maximizing Capital Gains Exemptions with Qualified Small Business Stock LLC (Limited Liability Company) An LLC offers liability protection, but for tax purposes, it’s a pass-through entity. All income flows through to the owner’s personal tax return. While it allows you to deduct legitimate business expenses, the full net income is taxed at personal income tax rates—often 40% or more for high earners. S Corporation (S Corp) An S Corp helps owners reduce self-employment taxes by splitting compensation into salary (subject to FICA taxes) and distributions (not subject to FICA). This is a popular move for service-based or lifestyle businesses, offering moderate tax savings. C Corporation (C Corp) A C Corp is often feared for “double taxation” —once at the corporate level, and again when dividends are distributed. But here’s the trick: If the owner doesn't need to withdraw all profits and plans to reinvest a significant portion back into the business, the lower corporate tax rate (typically 21%) becomes a powerful advantage. In John’s case, he didn’t need to take all profits home. By converting to a C Corp, he could leave money in the business and have it taxed at a lower rate—saving nearly $170,000 in year one. Step 2: Leveraging Qualified Small Business Stock (QSBS) One of the most underused tools in tax strategy is Qualified Small Business Stock, outlined under Section 1202 of the IRS Code. What Is QSBS? If a company qualifies and you hold stock for at least five years, you can sell the stock tax-free, avoiding capital gains on up to $10 million (or 10x basis, whichever is greater). QSBS Requirements: Must be a C Corporation Company must operate in a qualified industry (software companies generally qualify) Stock must be originally issued (not purchased on the secondary market) Stock must be held for five years We helped John convert his entity to a C Corp, and he now holds QSBS-eligible shares. If he sells after five years, he could potentially pay zero capital gains tax on the sale. Why This Strategy Worked John’s company was: Highly profitable ($1M+ net income) Not cash-hungry at the personal level (owner took less than full net income) Poised for future sale (5+ year horizon) Asset-light, making a stock sale more likely than an asset sale This made him the perfect candidate for C Corp conversion and QSBS planning. Final Thoughts: The Power of Integrated Planning Each of these strategies—entity structuring, tax deferral, and QSBS—offer individual benefits. But when combined strategically, they can deliver game-changing results. That’s why a holistic view of tax and business planning is critical. You don’t just want someone who knows one piece of the puzzle. You want a team that can see the big picture and assemble the optimal strategy for your goals. Disclosures Bloomwood does not make any representations as to the accuracy, timeliness, suitability, or completeness of any information prepared by any unaffiliated third party, whether linked to or incorporated herein. All such information is provided solely for convenience purposes and all users thereof should be guided accordingly. We are neither your attorneys nor your accountants and no portion of this material should be interpreted by you as legal, accounting, or tax advice. We recommend that you seek the advice of a qualified attorney and accountant. For additional information about Bloomwood, please request our disclosure brochure as set forth on Form ADV using the contact information set forth herein, or refer to the Investment Adviser Public Disclosure website ( www.adviserinfo.sec.gov ). Please read the disclosure statement carefully before you engage our firm for advisory services. The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your attorney or tax advisor. The views expressed in this commentary are subject to change based on the market and other conditions. These documents may contain certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Any projections, market outlooks, or estimates are based upon certain assumptions and should not be construed as indicative of actual events that will occur. All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability, or completeness of, nor liability for, decisions based on such information and it should not be relied on as such. Bloomwood is a registered investment advisor. Advisory services are only offered to clients or prospective clients where Bloomwood and its representatives are properly licensed or exempt from licensure. 730 Starlight Lane, Atlanta, GA 30342.

What I Read This Week Apr 21st, 2025Billy AmbergApr 211 min readClick here to talk to Bloomwood about your finances.XI think marijuana is the most insidious of drugsI had a child “diagnosed” with ADHD several years agoLinkedInIRA ALERT - TRUMP ADMIN FLOATS A 39.6% TOP INCOME TAX RATE VERSUS 37.0%PodcastMacroVoices #475 Simon White: The Dawn of A New Financial OrderThe Hidden Globe: How Wealth Hacks the WorldTe Hidden Globe: How Wealth Hacks the World   

What I Read This Week (4/17)Billy AmbergApr 21, 20231 min readOnly 7% of Harvard freshmen planned to major in the humanities, down from 20% in 2012, and nearly 30% during the 1970s. Tesla Q1 Earnings Call and Q&A AI Regulation. I think this is the right way to think about it, though I don't agree that it has to be the government. It could be self-regulatory....might be wishful thinking.The dark side of using AI to design drugs 20VC: Who Wins in AI; Startup vs Incumbent, Infrastructure vs Application Layer, Bundled vs Unbundled Providers | From 150 LP Meetings to Closing $230M for Fund I; The Fundraising Process, What Worked, What Didn't and Lessons Learned with Tomasz Tunguz MacroVoices #372: The Bear Market Bottom is Not In David Sacks on his intellectual and political journeyMarc Andreessen on his intellectual journey the past ten years    

What I Read This Week Apr 14th, 2025Billy AmbergApr 141 min readClick here to talk to Bloomwood about your finances.XI still don’t understand why no one is taking the social security buyout idea seriouslyLinkedInDon't Make the Mistake of Thinking That What's Now Happening is Mostly About TariffsArticlesRegulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade DeficitsGenerative AI use surging among consumers for online shoppingMitochondria transplants could cure diseases and lengthen livesPodcastDOGE updates + Liberation Day Tariff Reactions with Ben Shapiro and Antonio GraciasThe Hidden Globe: How Wealth Hacks the WorldTe Hidden Globe: How Wealth Hacks the World   

Click here to talk to Bloomwood about your finances. Bloomwood is happy to show you how to unlock massive wealth using this tactic and others completely free of charge with no obligation to become a client. One hour or less could set you on a path to 20-50% more income and wealth. Be curious. Don't settle. Make sure you're not missing out on anything to create and unlock wealth. A Real-World Case Study: Setting Up a Tax-Advantaged Strategy Meet Jim. He’s a business owner in his late 40s, newly married, and the father of 12-year-old twins. Jim owns a manufacturing company, and we helped him implement a tax-savvy strategy that benefits both his business and his children’s financial future. Here’s what we did: Jim pays his kids to clean the administrative building of his manufacturing plant (not the actual plant, which would be unsafe for minors). Each child earns $8,000 per year for their work. This setup allows them to build substantial wealth over time while benefiting from tax-free earnings. The result? Each child could accumulate around $2 million in today’s dollars by the time they reach retirement age— completely tax-free! Sounds great, right? Let’s break down how this works. Why Paying Your Kids Through Your Business Is a Smart Move Many business owners overlook this powerful strategy to build tax-free wealth for kids. Here’s why it works: Legitimate Work, Legitimate Pay Kids must perform real work —you can’t pay them $500 an hour for legal advice or a token chore. The work should have comparable market rates —for example, commercial cleaning rates adjusted for a 12-year-old’s skill level. Tax-Free Income for Your Kids Because their earnings fall below the standard deduction , they typically won’t owe federal income taxes. They receive earned income , allowing them to contribute to a Roth IRA . Tax Benefits for Business Owners Jim’s business gets a tax deduction for the wages paid to his kids (though minor, it’s still beneficial). Shifting income to lower tax brackets reduces overall tax liability. How to Build Tax-Free Wealth for Kids Properly To maximize the benefits and stay compliant with tax laws, follow these best practices: Document Everything: Keep records of work performed, hours worked, and wages paid. Issue proper tax forms (e.g., 1099 or W-2 , depending on business structure). Use Reasonable Pay Rates: Compare market rates and adjust for a child’s ability. Avoid excessive wages that could trigger IRS scrutiny. Work with a CPA: A knowledgeable tax professional ensures compliance and helps maximize benefits. The Power of Compound Growth in a Roth IRA One of the biggest advantages of this strategy is tax-free growth in a Roth IRA . Here’s a simple projection: $8,000 per year invested in a Roth IRA 8% average annual return (historical S&P 500 rate) Over 50+ years , this could grow to $2 million+ per child, completely tax-free ! This strategy leverages time and compound interest to build generational wealth. Is This Strategy Right for You? While this method worked well for Jim, it’s not a one-size-fits-all approach. Factors such as business structure, tax situation, and work eligibility vary. If you’re interested, I’d be happy to do a free analysis to see if this strategy works for you. Want to learn more about the power of Roth? Check out our article breaking down how a Roth Conversion is going to create generational wealth for a family. /post/how-a-smart-roth-conversion-strategy-can-build-tax-free-generational-wealth Disclosures Bloomwood does not make any representations as to the accuracy, timeliness, suitability, or completeness of any information prepared by any unaffiliated third party, whether linked to or incorporated herein. All such information is provided solely for convenience purposes and all users thereof should be guided accordingly. We are neither your attorneys nor your accountants and no portion of this material should be interpreted by you as legal, accounting, or tax advice. We recommend that you seek the advice of a qualified attorney and accountant. For additional information about Bloomwood, please request our disclosure brochure as set forth on Form ADV using the contact information set forth herein, or refer to the Investment Adviser Public Disclosure website ( www.adviserinfo.sec.gov ). Please read the disclosure statement carefully before you engage our firm for advisory services. The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your attorney or tax advisor. The views expressed in this commentary are subject to change based on the market and other conditions. These documents may contain certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Any projections, market outlooks, or estimates are based upon certain assumptions and should not be construed as indicative of actual events that will occur. All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability, or completeness of, nor liability for, decisions based on such information and it should not be relied on as such. Bloomwood is a registered investment advisor. Advisory services are only offered to clients or prospective clients where Bloomwood and its representatives are properly licensed or exempt from licensure. 730 Starlight Lane, Atlanta, GA 30342.

What I Read This Week (4/10)Billy AmbergApr 14, 20231 min readAll In 123 - Trump indictment, de-dollarization, should VCs back Chinese AI? RIP Bob LeeAll In 124 - AutoGPT's massive potential and risk, AI regulation, Bob Lee/SF updatePrinciples for Dealing with the Changing World Order, Ray Dalio Principles for Navigating Big Debt Crises, Ray Dalio San Francisco is Falling Apart BBC Embarrassed An Idea for Social Media Features Macrovoices 371 - Fed will be forced to cut by the end of the year.How The Best Investors Obsess Over Interest Rates (The Pomp Letter)The Gambler Who Beat Roulette (Bloomberg)Why journalists can't quit Twitter (Platformer)Industrial policy doesn't have to succeed right away (Noahpinion)How The Best Investors Obsess Over Interest Rates (The Pomp Letter)Google reveals its newest A.I. supercomputer, says it beats Nvidia (CNBC)Tim Cook on Shaping the Future of Apple (GQ)Jerry Brown Is Angry: Why Is America Barreling Into a Cold War With China? (Politico)In Croatia, U.S. Campaigned to Stop Chinese Bid on Key Port (WSJ)Downtown San Francisco Vacancies Hit Record High as City Nears Breaking Point (SF Standard)Clarence Thomas and the Billionaire (Pro Publica)How long does it take to build a nuclear reactor? (Hannah Ritchie)It’s raining seeds (Coral Carbon)Big If True: Quantum Computers (Cleo Abram)   

What I Read This Week Apr 7th, 2025Billy AmbergApr 71 min readClick here to talk to Bloomwood about your finances.LinkedInBREAKING - DOJs SEEKS INJUNCTION AGAINST MONETIZED INSTALLMENT SALEXSmall Modular Reactors will be crucial in powering sitesWe knew very little about how LLMs actually work...until now.The biggest SEO opportunity of this decade is invisibleThe Complete United States Reciprocal Tariffs ListThe Effects of Tariffs: How the Machine WorksBessent got his wish.Trump’s new tariffs aren’t a trade tweakThe Consequences of Liberation Day1996 Nancy Pelosi encourages all of Congress to back reciprocal tariffsThe language of Trumps post here is very importantPeople are yet to understand that we have a macro hedge fund manager running the TreasuryThe Hidden Globe: How Wealth Hacks the WorldTe Hidden Globe: How Wealth Hacks the World   

What I Read This Week Mar 31st, 2025Billy AmbergMar 311 min readClick here to talk to Bloomwood about your finances.Podcast"Bill Burr"White House BTS, Google buys Wiz, Treasury vs Fed, Space RescueHoward Lutnick | All-In in DC!Is There an Extremely Simple Fix for Affordable Housing?20VC: Why Traditional VC is Broken: How VCs Learned Nothing from 202120VC: Microsoft CTO on Where Value Accrues in an AI World | Why Scaling Laws are BS#922 - Naval Ravikant - 44 Harsh Truths About Human NatureThe Hidden Globe: How Wealth Hacks the WorldTe Hidden Globe: How Wealth Hacks the World