The Power Of Zero Show

David McKnight explains how a lack of knowledge about Roth 401(k) distribution rules can lead to unexpected taxes and penalties. This episode dives into practical insights to help you steer clear of unwelcome surprises from the IRS. David illustrates what happens if you withdraw from your Roth 401(k) before age 59½, and how these rules differ from those of a traditional Roth IRA. He subsequently tackles the question of when post-59½ withdrawals of Roth 401(k) growth can be completely tax-free.  Roth 401(k) distributions can be confusing – especially if you’re planning to take funds before age 59½. And there’s an alternative you should consider. Planning to use your Roth 401(k) as an emergency fund? “Think again!,” says David. He goes over why this may not be the best choice (and what to do instead).      Mentioned in this episode: David’s upcoming book: The Guru Gap: How America’s Financial Gurus Are Leading You Astray, and How to Get Back on Track David's books: Power of Zero, Look Before You LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free 3-part video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com

In the past, David McKnight has been critical of gurus like Dave Ramsey. However, this episode looks at a video in which Ramsey seems to have slightly changed his views. Ramsey emphasizes that one key benefit of a Roth IRA is the potential to drastically reduce or even eliminate Required Minimum Distributions (RMDs). David explains that the decision to pursue a Roth conversion typically depends on whether you expect your future tax rate to be higher than it is today. David discusses a missed opportunity in Ramsey's advice to a caller, highlighting a critical point Ramsey seems to have overlooked. While David acknowledges a solid point made by Ramsey, he also identifies what he describes as "a huge blind spot in Ramsey’s worldview." David highlights a "right move" by Ramsey – whether it’s a deliberate policy shift or Ramsey unintentionally cornering himself remains to be seen… David praises Ramsey’s advocacy for Roth accounts, a sentiment he wholeheartedly agrees with.     Mentioned in this episode: David’s upcoming book: The Guru Gap: How America’s Financial Gurus Are Leading You Astray, and How to Get Back on Track David's books: Power of Zero, Look Before You LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free 3-part video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Dave Ramsey David M. Walker Ed Slott Tom Hegna Dr. Laurence Kotlikoff Brian Bolan Wade Pfau

In a recent video, real estate influencer Grant Cardone made some bold claims, advising against attending college, owning a home, and he even suggested that people should cash out their 401(k)s to invest in real estate. David McKnight calls this advice irresponsible, dangerous, and lawsuit-worthy. Far more Americans achieve millionaire status through consistent stock market investing than through real estate. David shares a more sustainable approach to building wealth through homeownership that directly counters Cardone's anti-homeownership stance. Cardone claims that 401(k) plans are designed to "imprison" people financially.  David digs deeper into the true purpose of retirement accounts and the importance of having an emergency fund. There is one point where both David and Cardone align: the likelihood that future tax rates will be higher than they are today. Finally, David touches upon the steep tax penalties of withdrawing from your 401(k) before age 59½ – an important consideration Cardone seems to overlook. Mentioned in this episode: David’s upcoming book: The Guru Gap: How America’s Financial Gurus Are Leading You Astray, and How to Get Back on Track David's books: Power of Zero, Look Before You LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free 3-part video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Grant Cardone

This episode explores the easiest and most hassle-free way to achieve millionaire status. According to Fidelity, the number of 401(k) millionaire accounts they manage has skyrocketed from 100,000 in 2017 to nearly 500,000 in 2024. “The slow and steady approach to building wealth is the best way to become a millionaire today,” says David McKnight. David explains why this method often outperforms owning real estate or running your own business when it comes to low-stress wealth accumulation.  He also delves into the stock market and the single greatest engine of wealth creation  Plus, David discusses one of the huge ways that makes 401(k)s a powerful wealth accumulation. There are different ways to build wealth – each with its own “hassle factor”. Directing your contributions to the Roth portion of your 401k is the best way to shield your 401k from the impact of taxes down the road.     Mentioned in this episode: David’s upcoming book: The Guru Gap: How America’s Financial Gurus Are Leading You Astray, and How to Get Back on Track David's books: Power of Zero, Look Before You LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free 3-part video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Fidelity

In this episode, Ben Shapiro shares his insights on the growing national debt and its potential trajectory under a Kamala Harris administration. Shapiro provides a historical overview of U.S. interest payments, starting from the 1960s. He highlights the alarming rise in the national debt, which has doubled in the last decade, and examines Harris’ proposed solutions to address it. According to Shapiro, there are only two viable paths to resolve the debt crisis: significant economic growth or substantial cuts in government spending. The primary drivers of the national debt, Shapiro explains, are interest payments, along with Medicare and Social Security obligations. A Wall Street Journal article by Phil Graham and Jodey Arrington is referenced, citing welfare programs as a major contributor to the federal budget strain. Shapiro argues that the U.S. economy would stagnate under a Kamala Harris presidency. David McKnight offers a different perspective, arguing that Social Security, Medicare, and Medicaid are not the root causes of the debt crisis. He outlines the true factors behind the ballooning debt. A recent study by Penn Wharton Business School challenges Shapiro’s views, suggesting that neither raising taxes nor cutting spending alone will prevent a financial collapse if the U.S. reaches 200% debt-to-GDP. David also shares strategies to protect your retirement savings from potential tax increases.   Mentioned in this episode: David’s upcoming book: The Guru Gap: How America’s Financial Gurus Are Leading You Astray, and How to Get Back on Track David's books: Power of Zero, Look Before You LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free 3-part video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Ben Shapiro Kamala Harris CNBC Federal Reserve Joe Biden Welfare Is What’s Eating the Budget (Wall Street Journal Article) by Phil Graham and Jodey Arrington David Walker Penn Wharton Business School

This episode answers the question, “How do I do a Roth conversion, and what forms do I need to fill out with the IRS?” David explains that there are three basic steps to convert your IRA to a Roth IRA. Carrying out these three steps will likely take a few weeks – the process could be slightly shorter if everything is handled by the same financial institution. Starting this process in December isn’t ideal because financial institutions are often overwhelmed with conversion requests.  If the conversion isn’t completed by December 31st, the Roth conversion window will close, and you won’t be able to reopen it for that tax year. David discusses when and why 100% of your IRA conversion may not be taxable. He also touches on the different forms you’ll need to fill out, including instances where you may want to use form 8606. As David puts it, “Double taxation is something you should avoid at all costs.”     Mentioned in this episode: David’s upcoming book: The Guru Gap: How America’s Financial Gurus Are Leading You Astray, and How to Get Back on Track David's books: Power of Zero, Look Before You LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free 3-part video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com

This episode is part of David McKnight’s interview with Mark Byelich, founder and owner of Attleboro Wealth Management. David and Mark discuss why the money inside a Life Insurance Retirement Plan (LIRP) "bucket" is treated differently for tax purposes and benefits from low fees. When it comes to life insurance, David recommends "having as little of it as the IRS requires, and stuffing as much money into it as the IRS allows." Remember: not all Indexed Universal Life (IUL) policies are created equal. Starting an IUL is like getting married – it only works if it’s 'til death do you part. Mark and David touch on the so-called IUL deal-breakers. David is firm in his view: for LIRPs and IULs, you must ensure a 0% loan is guaranteed in the contract. David also shares one of the biggest reasons his clients tend to favor an IUL. Mark Byelich highlights a significant risk that he and his team monitor closely. David and Mark discuss participating and variable loans, as well as interest in arrears – and David explains why he’s recently taken a step back from a particular approach. David is a fan of the COMDEX rating, and he explains why, along with one of the Achilles' heels of life insurance policies. Mark recommends reviewing your financial plan annually. David shares why they only do business with companies that conduct daily or weekly sweeps.     Mentioned in this episode: David’s upcoming book: The Guru Gap: How America’s Financial Gurus Are Leading You Astray, and How to Get Back on Track David's books: Power of Zero, Look Before You LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free 3-part video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Mark Byelich Genworth Cost of Long-Term Care  Dave Ramsey Suze Orman Moody’s S&P COMDEX rating

This episode looks at the recent IRS updates on the required minimum distributions due for 2024 and 2025.  David touches upon which accounts are and which aren’t subject to RMDs. Historically, when someone missed their RMD, they had to pay a 50% penalty on whatever they were supposed to withdraw but did not… David goes over what the new regulation for missing an RMD says.  David explains how SECURE Act 2.0 changed what was a popular policy in regards to RMDs and paying penalties. To avoid confusion over penalties and various statutes of limitation, David recommends ensuring that you’re taking your RMDs at the appropriate time. “If you consolidate all your IRAs into one account, it’s going to be a lot easier to make the correct RMD calculation,” says David. Mentioned in this episode: David’s upcoming book: The Guru Gap: How America’s Financial Gurus Are Leading You Astray, and How to Get Back on Track David's books: Power of Zero, Look Before You LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free 3-part video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Secure Act 2.0

Today’s episode addresses how to create multiple tax-free income streams that don’t show up on the IRS’s radar and that contribute to you being in the 0% tax bracket in retirement. Having some money in a tax-deferred account, like an IRA or 401k, is the first way high-income earners can create tax-free wealth for retirement. Contributing to your Roth 401k or Roth 403b, as well as leveraging a backdoor Roth, are a couple of additional ways to build tax-free wealth in retirement. David touches upon what CPA and retirement expert Ed Slott calls “the single greatest tax benefit in the IRS tax code.” David makes a comparison between Indexed Universal Life vs. a taxable brokerage account. David believes that “the higher your tax bracket, the more it makes sense to reposition surplus savings from your taxable account to indexed universal life.”     Mentioned in this episode: David’s upcoming book: The Guru Gap: How America’s Financial Gurus Are Leading You Astray, and How to Get Back on Track David's books: Power of Zero, Look Before You LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free 3-part video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Ed Slott

David starts the conversation by explaining what IRMAA is, if you should be worried about it when doing a Roth conversion, and whether there are ways around it. David defines the acronym IRMAA, Income-Related Monthly Adjusted Amount. This is an additional charge you could be required to pay on your Medicare Part B premiums. As your income goes up in retirement, your Medicare Part B premium increases with it. David explains why standard deductions do not apply when calculating IRMAA. What is the link between IRMAA and doing Roth conversions? Roth conversions are construed as part of your annual income in the IRMAA calculation. David explains why you could do a Roth conversion before ever getting on Medicare and still end up paying that increased premium. The IRS has a two-year look-back period when doing IRMAA calculations. So if you did a Roth conversion at age 63, for example, that would be included in the IRMAA income calculation at age 65 when you finally get on Medicare. If Roth conversions could potentially cause IRMAA, should you avoid them altogether?  According to David, the answer is no--and that's because of two reasons.  First, if you don't do a Roth conversion, you could risk growing and compounding your IRA or 401K to the point where RMDs at 73 are so large that you could get hit with IRMAA every year for the rest of your life. Secondly, tax rates will go up in the future. So you certainly don't want to forego a Roth conversion, only to pay much higher taxes on your IRA or 401k distributions down the road. According to David, if you get enough Roth conversions done by the time you reach 63, you could avoid IRMAA altogether. Why? Because distributions from Roth IRA are not included in the IRMAA income formula. By doing a Roth conversion and taking the IRMAA hit in the short term, you could put yourself in a position where you avoid IRMAA for the rest of your life and stay off the IRS's radar when it comes to Social Security taxation.     Mentioned in this episode: David’s upcoming book: The Guru Gap: How America’s Financial Gurus Are Leading You Astray, and How to Get Back on Track David's books: Power of Zero, Look Before You LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free 3-part video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com

This episode addresses Suze Orman’s epic IUL rant on her Women and Money podcast. Suze Orman begged her audience not to do Index Universal Life insurance policies. This very broad brush and no nuance approach of every financial guru is what David’s upcoming book The Guru Gap touches upon. David explains why the generic approach financial gurus tend to have is leading people astray. David brings up Orman’s advice to one of her listeners who has been investing $200/month into an IUL policy. David recreated this listener’s exact policy through one of the top IUL carriers in the industry – he shares his findings. Starting an IUL is like getting married: it only really works if you plan on keeping it until death do you part. David goes over the reason why IUL should be the last bucket to turn to for liquidity in the early years.  These days, most IUL carriers these days allow you to receive your death benefits in advance for the purpose of paying for long-term care. David believes that “an IUL can serve as a great volatility shield in retirement”. A recent Ernst & Young study showed how people can dramatically increase their sustainable levels of income in retirement in the context of IULs.     Mentioned in this episode: David’s upcoming book: The Guru Gap: How America’s Financial Gurus Are Leading You Astray, and How to Get Back on Track David's books: Power of Zero, Look Before You LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free 3-part video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Suze Orman’s Women and Money Podcast Ernst & Young

David and Mark Byelich talk about why people don’t want to pay a tax before the IRS absolutely requires it of them. David touches on the 2018 documentary The Power of Zero: The Tax Train is Coming. Mark Byelich explains that the longer someone hasa tail of the overage in their IRA hanging out there, the more risk they have. Mark discusses what happens in financial planning when people ease.  When it comes to people around the country, the initial tax payment is typically the thing that’s really hard to get over. David shares what tends to occur when people get over the “shock” of paying that initial tax.     Mentioned in this episode:  David’s upcoming book: The Guru Gap: How America’s Financial Gurus Are Leading You Astray, and How to Get Back on Track David's books: Power of Zero, Look Before You LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free 3-part video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Mark Byelich The Power of Zero: The Tax Train is Coming  Doug Orchard  George Shultz  Ed Slott

Today’s episode is part of David’s interview with Mark Byelich. David and Mark address Mark’s concept of “suddenly single”. David once met an Uber driver who had saved $1.5M. All financial advisors gave him the same advice “don’t change anything” but David had something different to share. A Roth conversion is something married couples should consider to avoid being automatically catapulted into the 22% or 24% tax bracket if one spouse dies. David breaks down the thought process behind considering a Roth conversion even if you feel like you’ve done everything right. Mark and David touch upon the potential challenges of inheriting an IRA from your parents – and the two types of people who typically inherit them. You may think “I’m never going to be in any bracket other than the 10% or 12%”. But think about what would happen to your heirs if you passed away, says David. David sees the Roth conversion as the single greatest tool that’s available to you today to be able to maximize the amount of money that your kids are going to be able to spend.     Mentioned in this episode: David’s upcoming book: The Guru Gap: How America’s Financial Gurus Are Leading You Astray, and How to Get Back on Track David's books: Power of Zero, Look Before You LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free 3-part video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Mark Byelich

This episode addresses the 8-step plan for a successful retirement plan that was recently shared by Dave Ramsey’s “sidekick,” George Kamel. Just like in any field of life, a good financial plan benefits from assessing where you are, where you want to be by a given date, and what needs to be done to get there. David dislikes the approach of painting everything with a broad brush and characterizing niche financial planning principles in broad, one-size-fits-all financial planning terms. That’s what, in his opinion, many so-called “financial gurus” like Dave Rasmey tend to do. David mentions his upcoming book, The Guru Gap: How America’s Financial Gurus Are Leading You Astray, and How to Get Back On Track. George Kamel has found that 8 out of 10 millionaires have reached their millionaire status by investing in their company’s 401k plan.  David shares his philosophy: “If you’re in a 24% bracket or lower, opt for the Roth 401k. If you’re in the 32% bracket or higher, stick with the traditional 401k.” David contradicts Kamel and explains that the reason you invest in a Roth IRA is because you think that your tax bracket in retirement is likely to be higher than it is today. For David, when it comes to millionaires who have paid off their homes, it’s important to distinguish between causation and correlation. A problem with Kamel’s view on Social Security is that Social Security is likely to never go away. What may happen, says David, is that the retirement age will be changed. Kamel and David are in agreement: investing is a marathon, not a sprint – and it isn’t for the faint of heart. According to an April 2024 study by Dalbar, investors continue to be their own worst enemies when it comes to saving for retirement. Except for step 5, David sees George Kamel’s 8-step plan as a pretty sound solution.     Mentioned in this episode: David’s upcoming book: The Guru Gap: How America’s Financial Gurus Are Leading You Astray, and How to Get Back on Track David's books: Power of Zero, Look Before You LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free 3-part video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Dave Ramsey George Kamel David M. Walker Dalbar’s QAIB

Today’s video comes from David’s interview with Dave Christy. They discuss how life insurance and annuities can help maximize your retirement.  They start by describing the three different ways cash value life insurance can positively impact your financial plan.  David reveals how IULs can be an excellent replacement for the bond portion of your portfolio.  David explains why most people get heartburn when they think about paying for traditional long-term care.  David goes over the unique aspects of cash value life insurance--if you ever need long-term care, the insurer will start paying your benefits in advance of your death to pay for long-term care.  David covers how cash value life insurance can extend the life of your investments when it comes to sustainable withdrawals in retirement.  According to David, the problem with the 4% Rule is that it's an expensive way of mitigating longevity risk.  David describes how cash-value life insurance works and why it's an excellent volatility shield in retirement. When you utilize cash value life insurance, annuities, and traditional investing together, you will yield higher income in retirement than any other alternative.  Dave defines prudent asset allocation and how to use it to protect your retirement. They both agree that the number one rule to being a successful investor is to not sell things when your investments are down.  For David, every investor should aim to accumulate three to five years worth of living expenses in their cash value life insurance by day one of retirement.  The IUL is not a stock market replacement. But it will give you more productive returns than a whole life policy.     Mentioned in this episode: David's books: Power of Zero, Look Before You LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free 3-part video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com

Today’s video is part three of David’s interview with Dave Hall. They discuss whether Trump will extend the tax cuts if re-elected.  David cites a recent report from the Committee for a Responsible Federal Budget that says that if they extend the tax cuts, the government will have to borrow $5 trillion to pay for those tax cuts.  David explains why he doesn’t see another tax cut happening without a commensurate reduction in spending.  David tackles people’s assumptions that tax cuts can stimulate enough economic growth to be able to pay for themselves. Dave and David agree that more people are starting to come to terms with the fact that taxes will go up in the future.  David explains why individual investors need to be realistic about the types of tax rates they're likely to pay down the road.  David shares his thoughts on whether the Inflation Reduction Act was successful in bringing inflation down and cutting government spending.  Why you need to take advantage of historically low tax rates today and protect your retirement before tax rates go up for good.  David covers the benefits of taking advantage of historically low tax rates while they're still around and why you need to get your savings systematically repositioned to tax-free. Dave talks about doubling taxes and how they could easily ruin retirements that would have otherwise worked out well. Politicians are in the business of getting re-elected. That is their number one job. You may think their number one job is to represent you, but their number one job is to get re-elected.     Mentioned in this episode: David's books: Power of Zero, Look Before You LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free 3-part video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com

Today’s episode is part 2 of David’s interview with Dave Hall. David shares his thoughts about moving the retirement age to what it currently is. Dr. Larry Kotlikoff has suggested raising taxes to 4% – 2% on the employee and 2% on the employer – as a way to solve the issues around Social Security. David sees the combination of pushing back the retirement date and increasing revenue as a valuable avenue to tackle the Social Security issue. Dave and David talk about the current and future state of Medicare.  Medicare is the largest of the three programs that constitute the $239 trillion underfunding. David touches upon David Walker’s answer to the question “Do you foresee a future in which they could raise income taxes to pay for that underfunding?” States like California and Washington are concerned about the future viability of their Medicare programs because of all the long-term care needs the country has. There’s a 70% chance that, among spouses, one will end up needing long-term care. David unpacks the potential repercussions of that.     Mentioned in this episode: David's books: Power of Zero, Look Before You LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free 3-part video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Dave Hall Dr. Laurence Kotlikoff Suze Orman David M. Walker

Today’s episode is part 1 of David’s interview with Dave Hall. David shares what he considers the fundamentals of his financial movement: “numbers don’t lie.” David cites a recent Penn Wharton study that illustrates two things that should be done by 2043 – and what will happen if these conditions aren’t met. Dave and David discuss the debt-to-GDP ratio, and why debt isn’t the problem. According to experts, when the debt-to-GDP gets past 75% it’s when there’s an eroding influence on your economic output over time. Dave and David go over when they started to track the $21 trillion dollar debt situation and related aspects. There’s a demographic “time bomb” and it will have an impact on Social Security, Medicaid, and Medicare.  David talks about the big inverted pyramid, its relation to benefits, and the increasing tax rate forecast. Medicare is five times more expensive than Social Security, making it a harder thing to fix.     Mentioned in this episode: David's books: Power of Zero, Look Before You LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free 3-part video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Dave Hall Comeback America and America in 2040: Still a Superpower? by David Walker Penn Wharton Bill Gates David Walker’s interview with David McKnight David Walker’s Interview on 60 Minutes

Today’s video is part four of David’s interview with the co-founder of Power of Zero, Larry DeLegge. They discuss whether AI will replace financial advisors and if Congress will take away the tax advantages of cash value life insurance. According to David, financial planning is more of an art than a science. This is why he is not all that convinced that AI has the capabilities to successfully handle people’s unique and complex financial situations.  2043 will be a big year for our country. Once we hit a 200% debt to GDP, no combination of increasing taxes or reducing spending will arrest the fiscal collapse of our nation. David breaks down the options and solutions we still have to put our country back on a sustainable fiscal path.  David shares his thoughts on whether Congress will change the rules on cash value life insurance.  The book, Power of Zero, works best for people who have already accumulated money and are looking for ways to wring the most efficiency out of their savings while shielding themselves from the impact of higher taxes.  David reveals that his next book will target the younger generation--the people in their 20s, 30s, and 40s.  David agrees with Harrison Young’s famous saying that the people who contribute 30 percent of their retirement savings to cash value life insurance take much more income in retirement than people who do investments alone.  David shares why he believes financial advisors need to redeem life insurance and tax-free planning principles by teaching the principles to the younger generation. If you're going to write a book, find some good stories and make those stories the centerpiece of what you're trying to drive home. That’s how you write a good book. David’s advice for people looking to write a book on finances: don't ever start a book with your own personal story. Start your book with a story that will grab your reader’s attention and then keep them for the rest of the book.     Mentioned in this episode: David's books: Power of Zero, Look Before You LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free 3-part video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Tom Hegna's Who Wants to Be a Millionaire? By Tom Hegna

Today’s video is part two of David’s interview with Larry DeLegge, the co-founder of Power of Zero. They discuss the tax bracket you should avoid when doing a Roth conversion. They start the conversation by describing why it’s a no-brainer to pay your taxes today at 22 or 24% marginal rates. Instead of rushing to complete Roth conversions by 2026 and potentially bumping into higher tax brackets, David suggests stretching the conversions over several years. After 2026, the tax brackets are expected to increase, with the 22% bracket becoming 25% and the 24% bracket becoming 28%. However, these brackets are still lower than the higher brackets (32%, 35%, 37%) that one might be forced into if they rush the Roth conversion. David reveals why he advises people to do Roth conversions but only follow a restrained approach to Roth conversions.  David talks about the ideal balance for saving money in taxable, tax-deferred, and tax-free buckets.  What will happen to standard deductions come 2026? David is not worried about the standard deduction. He explains that standard deductions will be around for the foreseeable future, and there are no indications of the government getting rid of them.  For David, it’s more prudent to plan for higher taxes than to speculate on the complete elimination of the standard deduction. All financial advisors agree that tax rates will be significantly higher in the future, which supports the strategy of paying taxes now at lower rates. Should people use cash to pay tax on Roth conversions now, or should they contribute it to a Roth 401(k) now? David’s advice is for people to go with the Roth 401K.      Mentioned in this episode: David's books: Power of Zero, Look Before You LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free 3-part video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com