Today, we're breaking down the "House-Rich, Cash-Poor" epidemic. In the United States, a large number of retirees have most of their wealth tied up in their primary residence, with very little left in liquid savings like 401(k)s, Roth IRAs, or brokerage accounts. A big part of the issue comes from financial gurus, like Dave Ramsey, preaching that paying off your home early is the key to optimizing wealth.

If you own a home, have a mortgage, and are looking for ways to truly optimize and build your wealth, you won't want to miss today's episode.

This Episode is intended to be financial education only and is not intended to be specific tax, legal, or investment advice. Please consult a professional for specific advice. Subscribe to our weekly planning insights newsletter: ⁠⁠⁠⁠https://mdrnwealth.com/blog/⁠⁠⁠⁠

If you need specific advice, you can contact us at Advice@mdrnwealth.com or at: ⁠⁠⁠⁠https://www.mdrnwealth.com⁠⁠

I want you to take a moment to think about how you can generate tax-free wealth for your kids. For most people, two primary vehicles come to mind: the first is a Roth IRA, and the second is a 529 account.

But here’s the issue—most kids don’t have earned income, so they can’t contribute to a Roth IRA, which takes that option off the table.The second option, a 529 account, can only be used for qualified education expenses. If the funds are used for anything else, the earnings will be subject to ordinary income taxes and a 10% penalty.

As a financial planner who works closely with families of young children looking to build wealth, I’ve found that most parents want to generate tax-efficient wealth for their kids, but they don’t want to feel limited to education-related expenses.

Today, I’m going to break down how you can achieve this using a custodial brokerage account. Trust me—you don’t want to miss it!

Key Topics:

• Generating Tax-Free Wealth For Your Kids (00:00)
• Why People Often Ignore UTMA / UGMA Accounts and Understanding Kiddie Tax (01:50)
• Turning a Custodial Brokerage Account into a Tax-Free Vehicle (03:30)
• Customizing this Strategy for Your Own Financial Plan (05:03)
• Money in a Custodial Brokerage Account is Considered an Irrevocable Gift (07:07)

This Episode is intended to be financial education only and is not intended to be specific tax, legal, or investment advice. Please consult a professional for specific advice.

Subscribe to our weekly planning insights newsletter: ⁠⁠⁠https://mdrnwealth.com/blog/⁠⁠⁠

If you need specific advice, you can contact us at Advice@mdrnwealth.com or at: ⁠⁠⁠https://www.mdrnwealth.com⁠⁠

The Mega Backdoor Roth is one of the most powerful strategies you can use to potentially contribute over $69,000 into a Roth IRA. But did you know that you can set this up in a Solo 401(k)? This week, we are going to break down how someone who is self-employed can set up their Solo 401(k) to be Mega Backdoor Roth compatible.

Key Topics:

• Prerequisites to the Mega Backdoor Roth (00:00)
• Specialized Adoption Agreement (02:05)
• Setting Up a Custom Adoption Agreement (03:07)
• Setting Up the Proper Accounts (04:11)
• An Example Once Accounts Are Set Up (06:05)
• Frequently Asked Questions (08:07)
• Wrap-Up and Getting Help (10:16)

Resources:

• The Ultimate Solo 401k Guide + Setting Up the Mega Backdoor

• Roth FeatureSolo 401(k) Guide

This Episode is intended to be financial education only and is not intended to be specific tax, legal, or investment advice. Please consult a professional for specific advice.

Subscribe to our weekly planning insights newsletter: ⁠https://mdrnwealth.com/blog/⁠

If you need specific advice, you can contact us at Advice@mdrnwealth.com or at: ⁠https://www.mdrnwealth.com⁠

We’re going to break down the most optimal structure and system for managing your wealth. If you're wondering whether you should have trusts, LLCs, or what assets should be placed in these structures, we’ll cover it all in an easy-to-understand way. I promise, you don’t want to miss this.

Key Topics:

• The Center of the Wealth Structure: You (01:40)
• Retirement Assets (Assets in our name) (02:05)
• Revocable Living Trust (03:10)
• What Goes into the Living Trust? (04:52)
• Where Do LLCs Fit? (06:19)
• Wrap-Up and Final Thoughts (08:10)

This Episode is intended to be financial education only and is not intended to be specific tax, legal, or investment advice. Please consult a professional for specific advice.

Subscribe to our weekly planning insights newsletter: ⁠⁠⁠⁠⁠https://mdrnwealth.com/blog/⁠⁠⁠⁠⁠

If you need specific advice you can contact us at Advice@mdrnwealth.com or at: ⁠⁠⁠⁠⁠https://www.mdrnwealth.com

When the Tax Cut and Jobs Act imposed the 10k SALT deduction limit, states with high taxes, like California, were outraged. Their taxpayers faced significantly higher federal tax bills. As a workaround, the Pass-Through Entity Tax Election was created.

PTET is an elective tax that business owners pay at the entity level. Instead of business income passing through to their individual return, they pay a separate state tax on their business income.

This pass-through entity tax is 100% deductible at the federal level, and generally, you receive a dollar-for-dollar credit on your personal state tax return.

Key Topics:

• 10K SALT Deduction Limit and the Workaround: PTET (Pass-Through Entity Tax) (01:30)
• An Example of PTET in Action (02:52)
• A Few Important Issues and Limitations with PTET (04:00)
• Breaking Down How PTET Saves on Taxes (05:47)
• All Business Owners Must at least Consider and Explore PTET (07:27)

This Episode is intended to be financial education only and is not intended to be specific tax, legal, or investment advice. Please consult a professional for specific advice.

Subscribe to our weekly planning insights newsletter: ⁠⁠⁠⁠https://mdrnwealth.com/blog/⁠⁠⁠⁠

If you need specific advice you can contact us at Advice@mdrnwealth.com or at: ⁠⁠⁠⁠https://www.mdrnwealth.com

Short-Term Rentals (STRs) are one of the few ways to gain exposure to real estate as a non-real estate professional while taking advantage of some of the incredible tax benefits that real estate offers. However, getting into the business of investing in Short-Term Rentals can require a lot of work. This week, we're breaking down how to identify STR opportunities and how to optimize their returns with Real Estate Advisor Eric Ravenscroft. We'll also dive into the tax benefits and how to use them to your advantage.

Key Topics:

• 0:00 - Introduction to STRs
• 5:10 - Optimizing Your Investment
• 13:45 - Getting Started
• 17:34 - STR Case Studies
• 22:54 - Growing Your STR Business
• 34:36 - Tax Basics
• 37:12 - Introduction to Bonus Depreciation
• 38:25 - Cost Segregation Study
• 39:22 - Leveraging Bonus Depreciation
• 44:15 - Tax Case Study

This Episode is intended to be financial education only and is not intended to be specific tax, legal, or investment advice. Please consult a professional for specific advice.

⁠The Ravenscroft Group⁠

Subscribe to our weekly planning insights newsletter: ⁠⁠⁠https://mdrnwealth.com/blog/⁠⁠⁠

If you need specific advice you can contact us at Advice@mdrnwealth.com or at: ⁠⁠⁠https://www.mdrnwealth.com

First-round pick of the 2024 NFL Draft, Caleb Williams, makes headlines for wanting to do some "creative" tax planning with his NFL money. We're breaking it down!

Key Topics:

• Breaking Down the Caleb Williams LLC Proposal (01:26)
• Breaking Down the Forgivable Loan Element (02:53)
• How Rich People Use Loans to Avoid Taxes and How This is Different (03:52)
• LLCs and Their Benefits and Misconceptions (04:55)
• Wrap-Up (05:57)

MDRN Wealth Episode on All Things LLCs

This Episode is intended to be financial education only and is not intended to be specific tax, legal, or investment advice. Please consult a professional for specific advice.

Subscribe to our weekly planning insights newsletter: ⁠⁠https://mdrnwealth.com/blog/⁠⁠

If you need specific advice you can contact us at Advice@mdrnwealth.com or at: ⁠⁠https://www.mdrnwealth.com

Making money is one thing; building wealth is another. In this episode, we break down how high-income individuals can go from rich to wealthy. From the mental side of the game to how to approach saving, we've got you covered. I promise you, you don't want to miss it.

Key Topics:

• Gratitude and Finding Your Why (01:11)
• Lifestyle Creep (03:02)
• Take Advantage of the Fact That You’re Making this Amount of Money (04:52)
• The Issue with Rushing to Pay off Your Home (07:21)
• Play Defense: Protect Your Wealth (08:36)
• Knowing Your Why in Life (10:11)

Link to Episode Mentioned: https://youtu.be/e54hrMevTjI

This Episode is intended to be financial education only and is not intended to be specific tax, legal, or investment advice. Please consult a professional for specific advice.

Subscribe to our weekly planning insights newsletter: ⁠https://mdrnwealth.com/blog/⁠

If you need specific advice you can contact us at Advice@mdrnwealth.com or at: ⁠https://www.mdrnwealth.com