KMR Creations / Gil Family  ·  Prepared by Highland Private Office

The Path to
Generational Wealth

Built from your real numbers. Every dollar has a purpose. Every month has a target. 14 months to a fundamentally different balance sheet.

True Net Worth
$3,088,470
Incl. vehicle & boat equity · Mar 2026
Bank Cash — Still Idle
$623,636
Next tranche to deploy
Vehicle & Boat Debt
$775,267
7.60–7.99% APR
Monthly Surplus
$253,151
March: $658,106 gross deposits − $404,955 total cash out
The Diagnosis

Three things holding wealth back

High income doesn't automatically create wealth — it requires intentional structure. These three issues are quietly costing money every single month.

$624K
Bank cash still earning near-zero

Round two of cash deployment

March already moved $1M+ to Betterment — $500K to HYSA (goal hit) and $536K to taxable investing. The remaining $624K in Wells Fargo is the next tranche. Reallocating $300K–$400K into Treasuries or HYSA unlocks another $15K–$18K/year in yield while keeping full liquidity.

$775K
Vehicle & boat loans at 7.60–7.99% APR

Debt is a monthly drain

Four loans at 7.60–7.99% are costing an estimated $4,400–$5,200/month in interest alone. With the ~$253K monthly surplus, this entire load can be completely eliminated in under 10 months with aggressive payoff — or refinanced where the rate spread justifies it.

7.87%
$2.37M mortgage on 1635 Highland Rd

Mortgage rate is well above market

At 7.87%, interest alone is roughly $15,500/month — about $186K/year. A refinance to 6.5% would drop the payment by ~$7,800/month and save $90K+/year. Target: refinance as soon as 30-year rates settle into the mid-6s. Do not accelerate principal — fix the rate first.

$631K
Current investment portfolio balance

Now building — keep the momentum

Up from $124K in February — a 5× jump after the March Betterment deployment. The realistic 14-month target is $2.5M+ across invested assets (including HYSA and Treasuries), driven by continued $75K–$100K monthly contributions plus every freed-up debt payment.

Step One — In Motion

$1M deployed. $624K to go.

March executed the first wave — $500K to Betterment HYSA (goal hit) and $536K to Betterment taxable. The remaining bank cash is the next tranche.

Cash Deployment Status
✅ Betterment Taxable Investing (deployed March) $536,408
✅ Betterment HYSA (goal exceeded · 4.5% APY) $504,095
⏳ Bank Cash — pending next deployment $623,636
Total liquid position $1,664,139
HYSA passive income (already active) +$22,700 / yr
Monthly Surplus — $253,151 / Month
$253,151
March: $658,106 gross deposits − $404,955 total cash out
💳 Aggressive vehicle/boat payoff $120,000
📈 Betterment taxable — index funds $75,000
🏦 401(k) catch-up to annual max $40,000
🔒 Cash buffer / reserve $18,151
Total allocated monthly $253,151
Debt Elimination

$775,267 — gone in under 10 months

Highest interest rate first. $120K/month in extra payments applied in sequence. Each loan that clears accelerates the next one.

Priority Debt Balance Rate Min. Payment Payoff Action
01 — First
2026 Porsche 911 Carrera GTS
TT of Vineland · Highest APR · Currently underwater
$204,037 7.99% $3,722 Month 2 Months 1–2
02 — Second
2026 Sunsation 32CCX
Navigant Credit Union · Largest balance · Positive equity
$392,058 7.74% $3,271 Month 7 Months 3–7
03 — Third
2025 Ford F-250 Super Duty
Fifth Third Bank
$88,396 7.64% $1,635 Month 8 Month 8
04 — Fourth
2025 Ford Bronco Raptor
Truist Online Auto Loan
$90,776 7.60% $1,694 Month 9 Month 9
Total Consumer Debt $775,267 $10,322/mo 10 Months $0 by Dec '26
Refi Target
Mortgage — Shellpoint
1635 Highland Rd, Winter Park · Refinance when rates justify it — 7.87% is well above market
$2,374,048 7.87% $22,779 Watch Refi <6.5%
* $120K/month applied above minimums, highest rate first · Est. interest saved vs. minimum-only payments: ~$38,000 · Mortgage: do not accelerate principal — refinance the rate instead (see below)
The Execution

Four phases. Fourteen months.

Click each phase to expand the action items and see projected impact numbers.

1

Launch — Deploy the Cash & Start the System

March 2026 · Largely Complete ✅
✅ Betterment HYSA funded — $504,095 (goal hit)
Completed in March. Betterment Cash Reserve is now sitting at $504,095, exceeding the $500K target. Earning ~4.5% APY, FDIC insured. Generating ~$22,700/year in passive, zero-risk income — live now.
✅ Betterment Taxable deployed — $536,408
Completed in March. Betterment taxable account is now at $536,408 (up +$508,724 from February), running Betterment's 90/10 growth allocation with automatic rebalancing and tax-loss harvesting. Total invested assets jumped from $124K to $606K in a single month.
Max Kirsten's 401(k) — call ADP this week
2026 employee contribution limit: $23,500. With employer match, the total combined limit is $70,000. Current balance of $40,855 shows Kirsten is ~55% through the year already, so the remaining employee contributions can be front-loaded over April–December. Work with ADP to max both the employee deferral and the employer profit-sharing side. Reduces taxable income immediately and starts the tax-deferred compounding clock.
Update salaries to $184K for both Kirsten and JR
Formalize with the accountant. A reasonable W-2 salary optimizes the QBI deduction — 20% deduction on remaining pass-through business income — potentially saving $200K+ annually.
Deploy remaining $624K bank cash (next action)
Wells Fargo still holds $623,636 earning near-zero. Recommendation: move $300K–$400K into a Treasury ladder or top-up Betterment HYSA for immediate yield, leaving ~$225K–$325K as operating reserve. Then set up recurring monthly transfers per the allocation table: $120K debt payoff, $75K Betterment taxable, $40K 401(k).
Phase 1 Impact
Cash deployed productively$1,040,503 ✅
HYSA passive income (live)+$22,700/yr
Portfolio value$124K → $606K ✅
Bank cash remaining$623,636
Next tranche target$300K–$400K to Treasuries/HYSA
2

Eliminate All Vehicle & Boat Debt

April 2026 – January 2027 · Months 1–10
Porsche 911 — paid off by Month 3
$211,481 at 7.99%. Apply $120K/month extra + $3,722 minimum. Cleared in approximately 1.7 months. The moment it's gone, the full $123,722/month pivots to the boat.
Sunsation 32CCX — paid off by Month 8
$395,329 at 7.74%. Full $120K/month redirects here after the Porsche clears. Paid off Month 8. Frees up $3,271/month in minimum payments.
Ford F-250 — single-payment knockout at Month 8
$90,031 at 7.64%. One month of extra payments wipes it. $1,635/month freed.
Ford Bronco — final debt gone, Month 9
$92,470 at 7.60%. As of Month 9, zero consumer debt outside the mortgage. Monthly payment obligations drop from $33,101 to $22,779.
Refinance the 7.87% mortgage when rates permit
The $2.37M Shellpoint mortgage at 7.87% is the single largest interest drag on the household — about $186K/year in interest alone. A refinance to 6.5% would save ~$7,800/month ($93K/year); down to 6.0% would save ~$9,000/month ($108K/year). Start rate shopping now with a mortgage broker, lock when 30-year rates hit the mid-6s. Do not pay extra principal — fix the rate first, then decide.
Phase 2 Impact
Consumer debt cleared$775,267
Interest saved vs. minimums~$38,000
Monthly payments freed+$10,322/mo
Mortgage refi savings (at 6.5%)+$93,000/yr
Consumer debt by Jan '27$0
New monthly investable floor~$265,356/mo
3

2026 Tax Strategy — Warehouse & Depreciation

Q2–Q3 2026 · Operational by December 31 deadline
Execute LOI on warehouse or aircraft hangar by Q2
Target: Winter Park / Maitland (32789). Properties shortlisted: 2335 Temple Trail, 725 Formosa Ave, 1200 Alden Rd. Must close and be operational by December 31, 2026 to qualify for OBBBA 100% bonus depreciation.
Commission a Cost Segregation Study immediately after closing
Reclassifies 20–40% of the building into 5/7-year personal property. Under OBBBA, this creates a 100% year-one deduction — potentially $1.5M–$4.5M against KMR income on a $3–5M property.
Finance with SBA 504 — 10% down, preserve cash
As owner-occupant, SBA 504 requires only ~10% equity. Preserves capital while capturing the full depreciation benefit. Florida First Capital (FFCFC) is the #1 SBA 504 lender in Florida for 2026.
Section 179 — buy qualifying equipment before Dec 31
$2.56M limit in 2026. Content creation equipment, vehicles over 6,000 lbs, studio buildout all qualify. Document business use carefully. Coordinate with Tyler at Solutions Group.
Phase 3 Impact
Bonus depreciation (Year 1)$1.5M – $4.5M
Est. tax savings (37%)$555K – $1.67M
Section 179 ceiling$2.56M
Hard deadlineDec 31, 2026
SBA down payment~10%
4

Full Wealth Acceleration — Debt-Free Mode

January 2027 Onward · Maximum investing, zero consumer debt
Redirect all $10,322/month of freed payments to investments
Every loan that disappears moves directly to brokerage — no lifestyle inflation. $10,322/month at 10% for 5 years = $795,000 in additional wealth.
Lock in the $1M annual lifestyle budget + bonus structure
Proposal: $100K bonus for staying under $1M in spending for the year. $30K bonus per $1M investment milestone reached. Aligns incentives with building wealth, not spending it.
Oil & Gas investment — 90% year-one deduction
$100K invested yields a ~$90K tax deduction in Year 1 (~$33K in actual savings at 37%). Estimated 10-year return: $200K–$225K with favorable depletion allowance treatment. Discuss with Tyler (Solutions Group).
Fort Lauderdale condo + boat slip — Airbnb strategy
Intercostal property with boat slip used as short-term rental when not in use. Potential: $60K–$120K/year in rental income while appreciating. Pairs with RGB Experiences for boat charter operations.
Phase 4 Trajectory
New monthly investable floor$265,356
Portfolio target by end 2027$5M+
Passive income (HYSA + div.)$80K–$120K/yr
Consumer debt$0
Net worth target by 2028$7M+
⚠️

Important Assumptions

The $253,151 monthly surplus (March: $658,106 in gross deposits minus $404,955 in total cash out) assumes income stays consistent and lifestyle expenses remain stable. If income dips or a large purchase occurs, the timeline extends — but the math still works, it just takes longer. Note: Fenix pays weekly in arrears, so the Empower bank balance will often lag the accrued monthly figure by ~1 week of revenue (~$150K).

Three Non-Negotiables

(1) Deploy the cash this month — not next month. (2) Keep lifestyle spending flat while paying off debt. (3) Warehouse LOI by Q2 — the Dec 31 deadline for the tax benefit is immovable.

The Result

14 months from today

Same income. Same lifestyle. Completely different balance sheet.

Net Worth
$3,088,470
$5.6M+
+$2.5M in 14 months
Consumer Debt
$775,267
$0
Completely eliminated
Invested Assets
(incl. HYSA + Treasuries)
$631,719
$2.5M+
~4× increase
Monthly Surplus
$253,151
$265K+
Freed debt payments add to investing
2026 – 2027 Execution Timeline
Cash
Porsche
Porsche
Porsche ✓
Boat
Boat
Boat
Boat
Boat ✓
F-250 ✓
Bronco ✓
Debt Free
Invest
Invest
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan '27
Feb '27
Mar '27
Apr '27
Cash Deployment
Vehicle Payoffs
Boat Payoff
Debt-Free
Full Acceleration
Warehouse purchase runs parallel — Q2–Q3 2026
⚖️
Important Disclaimer

This document has been prepared by Highland Private Office for informational and planning purposes only. Highland Private Office is not a registered investment advisor, broker-dealer, or licensed financial planner. Nothing in this document constitutes investment advice, a solicitation, or a recommendation to buy or sell any security or financial product. All projections, timelines, and estimated returns are illustrative only and are not guarantees of future performance. Past performance of any investment strategy does not guarantee future results. Please consult a licensed financial advisor, CPA, and/or attorney before making any financial, investment, or tax decisions. All financial figures are based on information provided by the client and data from connected accounts as of March 2026.