If you happen to be in a financial position where you’re planning to pass down generational wealth, congratulations! You’re in a great situation, compared to the bottom ⅔ of Americans who are living paycheck-to-paycheck (according to CNBC). But be sure your hard-earned nest egg is passed down in as tax-efficient manner as possible. That is to say, if you know your estate and gift taxes well, hopefully you can skirt around paying hefty estate taxes. Otherwise, your nest egg can be taxed as high as 40% at the federal level, plus any estate taxes you may have to pay at the state level! Luckily, today I will share some of my favorite ways to pass down that generational wealth without paying a single penny in taxes!

If you’re thinking about or already have turned a primary residence into a rental, you might want to rethink that. Even if your property is allegedly in a “high appreciation” market, it still may not make financial sense to hold on to it. To understand why, it all comes down to a numbers game, especially taxes. In this post, I will share why I decided to sell my very 1st primary residence instead of turning it into a rental, how I determined that was the best financial decision, and the numbers to back up my decision.

If you like your Roth IRA for its tax-free growth, you’re really going to like a mega backdoor Roth! Contributions to a Roth IRA are funded with after-tax dollars and earnings grow entirely tax-free. Similarly, a mega backdoor Roth is also funded with after-tax dollars and earnings grow tax-free but with a much higher contribution limit!