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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
  • The Roth Conversion Myth Most Financial Advisors Get Wrong

    The Roth Conversion Myth Most Financial Advisors Get Wrong
    Jan 14 2026

    David McKnight addresses a myth floating around the financial world: "For a Roth conversion to make sense, you need many years for the Roth to grow so you can recoup the taxes you paid to the conversion."

    David stresses why this way of thinking is fundamentally wrong – it's built on the wrong assumption that all the money in your IRA belongs to you… when it actually doesn't.

    Remember: your IRA isn't one pile of money but two piles sitting in the same account. One pile belongs to you, while the other to the IRS.

    What's unknown is how big the IRS' pile is going to be when you eventually take the money out of the account.

    David goes on to explain what happens as both piles grow and required minimum distributions kick in.

    You may end up with the IRS' pile being not just larger but taxed at a much higher rate too.

    With a Roth conversion, on the other hand, your conversion translates into you carving out the IRS' portion and handing it to them today – settling the bill while the balance is smaller and the rate may be lower.

    There's a key question David invites you to keep in mind when it comes to Roth conversions: "Is your tax rate lower today than it will be when you take the money out?"

    The exploding national debt of over $200 trillion dollars in unfunded obligations for Social Security, Medicare, and Medicaid are going to require spending cuts, higher taxes, or some combination of the two.

    Beware: the problem with most retirement plans is that they assume that tax rates will stay low forever!

    David points out that Roth conversions aren't about timing the market but about timing the tax code.

    In other words, they're about timing the advantage of known measurable tax rates today instead of gambling on unknown ones tomorrow.

    Mentioned in this episode:

    David's new book, available now for pre-order: The Secret Order of Millionaires

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

    Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight

    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
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    7 m
  • Trump: No Income Tax in 2026!

    Trump: No Income Tax in 2026!
    Jan 7 2026
    This episode revolves around President Donald Trump's claim that, due to the massive tsunami of tariff revenue that's flowing into the U.S. coffers, Americans won't have to pay income tax in 2026. David McKnight looks at the 2025 fiscal year: the Federal Government spent about $7 trillion and brought in about $5 and a quarter trillion in revenue. While breaking down the math related to the 2025 fiscal year, David points out that "Revenue from income taxes is the single largest source of Federal revenue", while "Tariffs, by contrast, are one of the smallest." Even Trump's own economic team, including Treasury Secretary Scott Bessent, has said that in an extremely optimistic scenario, tariff revenue might someday reach $500 billion a year – which is only about ⅕ of what gets collected in income taxes. By looking at the numbers, it's clear that the proposed tariff-funded $2,000 check for each of the 340 million Americans wouldn't work: it would cost roughly $680 billion against a tariff revenue that only amounts to $195 billion… David clarifies a key point about tariffs. They're not paid by foreign governments, they're paid by U.S. importers. In other words, tariffs are simply a tax on consumers. There's an additional problem that shouldn't be overlooked. Not only do tariffs not generate enough revenue, but they can also lead to retaliation by other countries imposing their own tariffs on American exports. This means that an American effort to try to raise trillions of dollars through tariffs could end up costing heavily on its own people. David is crystal clear: While these types of claims make for great sound bites, the federal budget still has to obey the mathematical laws of the universe, and the math makes it clear: There's no world in which tariffs could ever eliminate the need for an income tax. By the look of things, the U.S. is marching into a future where the federal government will soon need huge infusions of cash just to pay the interest on its exploding national debt. To forestall this, the U.S. government will have to double federal income taxes in or around 2035. That's why, David says, having a dialed-in strategy to get your retirement savings shifted from 401(k)s and IRAs to Roths is more important than ever. Mentioned in this episode: David's new book, available now for pre-order: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight 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 President Donald Trump Treasury Secretary Scott Bessent Wharton School of the University of Pennsylvania
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    9 m
  • Congress Just Proposed a Major Change to Roth IRA's—Here's What It Means for You

    Congress Just Proposed a Major Change to Roth IRA's—Here's What It Means for You
    Dec 31 2025
    David McKnight addresses a brand new proposal that could transform the way Americans use Roth IRAs and Roth 401(k) – and that could have serious implications for your retirement flexibility, liquidity, and long-term tax strategy. With the current status quo, if a person has money in a 401(k) or even a Roth 401(k), they can usually roll it out into an IRA when they retire or leave their job. However, money can't roll the other direction: you can't take a Roth IRA and move it into a Roth 401(k)... A new bipartisan bill introduced by Republican Representative Darin LaHood and Democrat Representative Linda Sánchez aims to change that. Under this proposal, you could roll your Roth IRA into an employer-sponsored Roth account like a Roth 401(k), a Roth 403(b) or even a Roth 457 plan. This change could mean less paperwork, potentially lower fees, and a simpler investment picture. David cites simplicity, cost and protection as a few of the reasons why lawmakers may want this bill to pass. One of the incentives for Washington may have to do with the fact that encouraging people to use Roth accounts – which are taxed up front – can generate more short-term tax revenue for the government. Everything isn't as good as it seems, though. David lists a few of the trade-offs involved with this potential change. Firstly, loss of control. When your money is in a Roth IRA, you can invest it wherever you want: Index funds, EFTs, individual stocks, and more. With an employer plan, your investment menu would be limited by the options the plan administrator offers. The so-called Five-Year Rule is another aspect worth considering. Typically, every Roth account has to be open for at least five years or until 59 ½, whichever is later, before earnings can be withdrawn tax-free. Here's the tricky part: Each different kind of Roth account has its own five-year clock. This could turn into a logistical nightmare for plan administrators. David shares some final considerations regarding who would benefit and who may get negatively affected by the proposed bill and points out that "Not all Roths are created equal." Mentioned in this episode: David's new book, available now for pre-order: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight 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 Darin LaHood Linda Sánchez Employment Retirement Income Security Act (ERISA)
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    8 m
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Wonderful episodes with right examples and importance of changing economy. Time for people to know more about right products.

Real time examples and explanations about current economics

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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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Thank you so much for making this podcast available to listen to on Audible.

Excellent!

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