Foreword xiii
Preface xvii
Acknowledgments xxi
Introduction: The Generational Wealth Code: A Tax-smart Roadmap to Financial Independence 1
Financial Literacy and Why We Wrote This Book 2
The Move from Capitalism to Socialism in the United States 3
Point X: Our Fundamental Financial Goal 6
The Next Level of Financial Independence: The Generational Wealth Code 7
The 12 Critical Areas of Comprehensive Wealth Management 9
Our Biggest Expense 10
The Power of This Book 14
Chapter 1: Committing to Living Within Your Means 17
The American Dream Becomes the American Nightmare 17
Living Within Your Means: The Essential Step 18
A Simple Savings Plan 22
Chapter 2: Understanding Taxes 27
A Brief History of the US Tax System 28
Organizing and Retaining Your Records 32
Tax-preparation Services 33
Accumulating Wealth Through Tax Planning 35
The One Big Beautiful Bill Act of 2025 37
Chapter 3: Determining Your Financial Position 43
Calculating Your Financial Net Worth 44
Case Study: How One Couple Was Able to Accelerate Their Journey to Financial Independence and Position Themselves to Create Generational Wealth 44
Making Sense of Cash Flow 53
Establishing Your Financial Goals 76
Finding Trusted Advisors 80
Chapter 4: Managing Debt 89
Case Study: How Two Doctors Went Bankrupt in Only a Few Years, What Not to Do 89
Basic Principles for Managing Debt 93
Good Debt Versus Bad Debt 95
Credit Card Debt 97
Auto Loans 103
Student Loans 105
Home Mortgage Loans 105
Business and Investment Loans 112
Understanding Credit 112
Your Credit Report and Your Credit Score 114
Preventing Identity Theft 119
Analyzing Your Debt 121
Chapter 5: Insuring Your Health and Life 127
Choosing a Health Insurance Plan 128
Long-term Care Insurance 144
Disability Insurance 152
Life Insurance 157
Buying Insurance Policies 163
Chapter 6: Protecting Your Property with Insurance 167
Case Study: How a Lack of Insurance Wiped Out One Womanâs Life Savings 168
Homeowners Insurance 170
Automobile Insurance 176
Umbrella Liability Insurance 179
Buying Insurance Policies 182
Chapter 7: Paying for College 189
Is College the Best Choice for You and Your Child? 189
The Cost of College and What You Can Expect to Pay 192
Case Study: How Not Saving for Your Childâs Education Can Ruin Your and Your Childâs Finances 194
Conducting a âNeeds Analysisâ for Your Childrenâs College Education 199
Strategies for Saving Money for College 201
Government Grants and Loans 215
Education Tax Breaks and Credits 220
Chapter 8: Planning for Retirement 229
Case Study: Saving Versus Not Saving for Retirement, The $2.2 Million Difference 229
Retirement Equation: Calculating Your Personal Point X, Financial Independence 233
The High Cost of Waiting to Save for Retirement 234
What You Can Expect to Receive from Social Security 237
Qualified Retirement Plans 240
The Difference Between Traditional IRAs and Roth IRAs 243
Trump Accounts: A New Tool for Multigenerational Wealth 250
Fixed and Variable Annuities 251
Retirement Funding: âNeeds Analysisâ 254
Chapter 9: Managing Your Investments 265
Analyzing Your Ability and Willingness to Take Risk 266
Stocks, Bonds, Hybrid Securities, Mutual Funds, ETFs, and Private Investments 273
Diversification, Asset Allocation, and Rebalancing 283
Dollar-cost Averaging 292
Inflation and Taxes: The Biggest Drains on Investment Return 293
Medicare Surtax on Net Investment Income 294
Cryptocurrency and Its Tax Treatment 295
Chapter 10: Preserving Your Estate 301
The Federal Gift and Estate Tax System 302
Legal Documents to Consider for Estate Planning 302
The Probate and Administration Process: Why You May Want to Avoid It 308
Using a Planned Gifting Strategy 313
Ownership of Property and How Itâs Transferred After Death 314
Reasons for Creating a Trust 318
Benefit from a Family Limited Partnership 332
Irrevocable Life Insurance Trust 333
Spousal âPortabilityâ of the Exclusion 334
How to Estimate Your Expected Federal Estate Tax Liability 335
Paying Your Estate Tax Liability 336
Asset Protection and Long-term Care 337
Chapter 11: Investing in Real Estate 345
The Power of Leverage: Using Other Peopleâs Money to Build Wealth 346
Equity Recycling: Borrowing Against Equity to Expand Your Portfolio 348
Depreciation: The Phantom Deduction Driving Tax-deferred Growth 350
Estate Planning and Wealth Transfer: The Power of the Step-up in Basis 352
How Real Estate Builds Wealth Over Time: Proven Case Studies 353
Choosing the Right Entity to Hold Business or Investment Properties 356
1031 Exchanges: The Tax-deferred Transfer Tool 356
Drop and Swap Strategy 362
Delaware Statutory Trusts (DSTs) 364
Utilizing a DST with a 1031 Exchange 369
Utilizing a 1033 Exchange with Involuntary Conversions 371
Passive Income Generators: What They Are and When to Use Them 373
Qualified Opportunity Zone Funds 375
Private Real Estate Placements: Access to Institutional-grade Deals 378
Real Estate Investment Trusts 379
How the IRS Classifies Real Estate Investors 380
Best Practices and Pitfalls to Avoid as a Real Estate Investor 385
Real Estate Investment Checklists and Evaluations 387
Integrating Real Estate into Your Financial Planning and Generational Wealth Strategy 389
Chapter 12: The Time Value of Money 395
The Rule of 72 396
Trump Accounts and the Time Value of Money 397
Future Value Factor of a Sum Certain 398
FV of an Annuity Factor 404
Present Value Factor of a Sum 410
PV of an Annuity Factor 416
Summing Up the Time Value of Money and the Power of Compounding 416
Appendix A: Selecting a Trusted Advisor 423
Appendix B: 101 Ways to Save $20 or More per Day 435
Appendix C: Basic Concepts and Definitions of Various Types of Taxes 447
About the Authors 473
Index 483
