The Power Of Zero Show Podcast Por David McKnight arte de portada

The Power Of Zero Show

The Power Of Zero Show

De: David McKnight
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 Tax rates 10 years from now are likely to be much higher than they are today. Is your retirement plan ready? Learn how to avoid the coming tax freight train and maximize your retirement dollars.The Power Of Zero Economía Finanzas Personales
Episodios
  • Can Republicans Actually Make the Trump Tax Cuts Permanent?

    Can Republicans Actually Make the Trump Tax Cuts Permanent?
    Jul 9 2025
    President Trump’s proposed Big Beautiful Bill (BBB), which has been getting everyone’s attention of late, is the topic of this episode of The Power of Zero Show. Host David McKnight points out that the “crown jewel” of the BBB is the extension of the 2017 Trump tax cuts. The 2017 Tax Cuts and Jobs Act (TCGA) brought about cuts to individual income taxes, corporate taxes, and a dramatic expansion of the estate tax exemption. While corporate tax cuts were made permanent – going from 35% to 21% – the tax cuts for individuals and estates had an expiration date. If the status quo stays unchanged, those tax rates will revert back to their 2017 levels on January 1st, 2026. David goes over how Republicans could make the tax cuts permanents through some outside the box accounting techniques. Since Republicans don’t have a supermajority in the House or Senate, they would have to rely on a special Senate process known as Budget Reconciliation. A few fiscal conservatives such as Representative Thomas Massie and David Schweikert, as well as Senator Susan Collins and Rand Paul may not be on board with such an approach… Their main concern? The fact that making these tax cuts permanent would add between 4.6 and 5.5 trillion dollars to the national debt over the next 10 years. David addresses the single greatest obstacle preventing Republicans from making the Trump tax cuts permanent: the Bird Roll. The Bird Roll states that budget reconciliation bills cannot increase the federal deficit beyond the budget window, which is typically 10 years. In other words, to make the tax cuts permanent, Republicans would have to find a way to pay for them. Cuts to Medicaid and the Supplemental Nutrition Assistance Program (SNAP, formerly known as the Food Stamps Program), as well as tariffs on imports are how Republicans are trying to go about things. Some Republicans suggest that the tax cuts won’t increase the national debt over the next decade and beyond, for the fact that they’ll actually spark economic growth. According to the Congressional Budget Office, the cost of the 2017 tax cuts was $1.9 trillion over an eight-year period, while the tax cuts themselves only increased revenue by about $400 billion. As David stresses, “The Tax Cuts and Jobs Act of 2017 ended up increasing the debt by about $1.5 trillion, meaning that the tax cuts were in no way self-financing.” If Trump tax cuts were to be made permanent, it will almost certainly increase the likelihood that taxes will have to skyrocket by the year 2035. According to a Penn Wharton study, when the country’s debt-to-GDP reaches 200%, we’ve passed the point of no return. If that were to happen, no combination of raising taxes or reducing spending would arrest the financial collapse of the nation. Former Comptroller General of the Federal Government, David M. Walker, has even suggested that tax rates could have to double to keep the U.S. solvent. This means that even if Republicans make the tax cuts permanent, they will have to raise taxes eventually… For David, this may lead to Congress being forced to raise taxes in dramatic fashion in 2035 in an effort to avoid a financial apocalypse in 2040. David believes that, if you have the lion’s share of your retirement savings swirling away in tax-deferred accounts like 401(k)s and IRAs, you should take advantage of what’s likely going to be 8 to 10 years more of historically low tax rates. Mentioned in this episode: David’s national bestselling book: The Guru Gap: How America’s Financial Gurus Are Leading You Astray, and How to Get Back on Track DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Donald Trump Tax Cuts and Jobs Act Representative Thomas Massie Representative David Schweikert Senator Susan Collins Senator Rand Paul Congressional Budget Office Penn Wharton David M. Walker
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    10 m
  • Doug Andrew: Consider Rolling Your IRA into an IUL (Good idea?)

    Doug Andrew: Consider Rolling Your IRA into an IUL (Good idea?)
    Jul 2 2025

    David McKnight addresses Doug Andrew’s recommendation of turning your IRA into an IUL.

    David agrees with some of Andrew’s views, including his objection to rolling a 401(k) into an IRA, and then leaving it there until you die.

    Given the exploding national debt, most experts predict that taxes 10 years from now will have to rise dramatically to keep the U.S. solvent…

    Doug Andrew lists Indexed Universal Life as his “favorite financial vehicle because of liquidity, safety, predictable rates of return, and tax-free growth”.

    David is skeptical of advice that denigrates every tax-free alternative within the IRS tax code in an attempt to glorify the IUL – which happens to be the product Andrew sells.

    While David recognizes some admirable qualities that are unique to IUL (and that no other financial tool has), he doesn’t recommend having an IUL as the only prong in your tax-free strategy.

    David’s preference is for you to opt for an approach that takes advantage of every tax-free nook and cranny within the IRS tax code.

    Many gurus are “married” to and recommend only one strategy. David, on the other hand, prefers “multiple streams of tax-free income, none of which show up on the IRS’ radar, that contribute to you being in the 0% tax bracket.”

    David lists the unique qualities of financial tools such as Roth IRAs, Roth 401(k)s, Roth Conversions, and IULs.

    If you’re someone who’s looking for advice, David recommends being careful whenever someone recommends you liquidate a retirement account you’ve been saving into your entire life and move it wholesale into an IUL!

    Your ideal goal should be to have multiple tax-free income streams that will land you in or near the 0% tax bracket in retirement.

    Why is that so important? Because even if tax rates were to double, two times zero is still ZERO.

    Mentioned in this episode:

    David’s national bestselling book: The Guru Gap: How America’s Financial Gurus Are Leading You Astray, and How to Get Back on Track

    DavidMcKnight.com

    DavidMcKnightBooks.com

    PowerOfZero.com (free video series)

    @mcknightandco on Twitter

    @davidcmcknight on Instagram

    David McKnight on YouTube

    Get David's Tax-free Tool Kit at taxfreetoolkit.com

    Doug Andrew
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    10 m
  • Financial Collapse in 3 Years?

    Financial Collapse in 3 Years?
    Jun 25 2025

    This episode of The Power of Zero Show revolves around a recent Ray Dalio video in which he issued warnings about the U.S. debt crisis.

    In the clip, Dalio appears to be giving America three years to get their act together and to right the fiscal ship of state.

    Dalio mentions the draft of his new book that goes through the mechanics of the debt – and highlights the supply-demand problem he believes will occur if the deficit doesn’t go from the current 7.2% of GDP to about 3% of GDP.

    Dalio touches upon what people should do when there isn’t an adequate supply-demand balance.

    He believes that looking back at history will show you that the current problems are the results of history repeating itself.

    A recession isn’t the one thing Dalio is afraid of… the breakdown of the monetary order is!

    Host David McKnight talks about the bid other countries may have on the U.S. fiscal debt, as well as the related crisis of confidence of sorts.

    According to a recent Penn Wharton study, if the U.S. doesn't right their fiscal ship of state by 2040, no combination of raising taxes and/or reducing spending will arrest the financial collapse of the nation.

    David believes that in the next 10 to 15 years, the U.S. is likely to need huge infusions of capital to avoid a financial collapse, the likes of which we haven’t seen since the Great Depression.

    What should you do? If you have the lion’s share of your Retirement Savings, IRAs or 401(k)s, you need to act now while tax rates are historically low.

    Since we’re on the cusp of Trump extending his tax cuts for another 8 years, it’s important to know that, if you count 2025, we’ll have historically-low tax rates for another 9 years.

    David is in favor of taking action before tax rates increase, also because he believes that, come 2034, tax rates aren't going to simply revert back to what they were in 2017.

    If the American fiscal ship doesn’t get right on time, we could go back to seeing high tax rates that were part of the past – such as 94% in the last two years of World War II, or 89% as it was throughout the entire decade of the 70s.

    Mentioned in this episode:

    David’s national bestselling book: The Guru Gap: How America’s Financial Gurus Are Leading You Astray, and How to Get Back on Track

    DavidMcKnight.com

    DavidMcKnightBooks.com

    PowerOfZero.com (free video series)

    @mcknightandco on Twitter

    @davidcmcknight on Instagram

    David McKnight on YouTube

    Get David's Tax-free Tool Kit at taxfreetoolkit.com

    Ray Dalio

    Penn Wharton
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    11 m
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Thank you so much for making this podcast available to listen to on Audible.

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David speaks clearly and is very helpful and entertaining. Small facts and helpful hints on retirement planning.

Clear communication amd knowledge

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