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
  • Five Roth Conversion Myths Busted: What Most Americans Get Wrong

    Five Roth Conversion Myths Busted: What Most Americans Get Wrong
    Nov 26 2025

    David McKnight busts some of the most common Roth conversion myths that are costing retirees hundreds of thousands – if not millions – of dollars over the course of retirement.

    The "Don't worry about Roth conversion, you'll be in a lower tax bracket when you retire" myth is based on two flawed assumptions.

    The first one is that your lifestyle will drop significantly in retirement, while the second is the one related to future tax rates being the same or lower than they are today.

    David points out that, in retirement, people want to maintain their lifestyle. In some cases, they even spend more in early retirement (think travels, healthcare and helping with kids or grandkids).

    Let's remember that the U.S. national debt is projected to hit $63 trillion by 2035.

    The country has unfunded obligations in Social Security, Medicare, and Medicaid that total over $200 trillion, and interest on the debt is going to crowd out most of the national budget items by the mid 2030s…

    The primary value of a Roth conversion is that it pre-pays taxes at historically low rates to avoid paying them later when rates are likely to be higher.

    Roth conversions not being binary, and the fact that you can get massive tax benefits without having to convert your entire IRA is another big myth David debunks.

    David explains why you should voluntarily pay taxes instead of delaying that decision.

    Ever heard of "If you don't have cash to pay the tax, you shouldn't convert"? It's another myth David addresses in this episode.

    For the millions of Americans who have most of their savings in tax-affirmed accounts, strategic conversions are one of the best ways to insulate yourself from the tax freight train bearing down on America.

    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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    8 m
  • Two Experts Debate When You Should Take Social Security—But here's the TRUTH!

    Two Experts Debate When You Should Take Social Security—But here's the TRUTH!
    Nov 19 2025
    Today's episode revolves around one of the biggest financial debates among pre-retirees and retirees: When should you take Social Security? Host David McKnight touches upon the recent debate of two of the smartest voices in the field – Dr. Laurence "Larry" Kotlikoff and Dr. Derek Tharp – on this exact question. Dr. Tharp, out of the University of Southern Maine, notes that economists commonly recommend delaying social security benefits until age 70. Boston University's Dr. Kotlikoff agrees and explains that delaying can give you a 76% higher monthly benefit compared to taking it at age 62. Since Social Security is inflation-adjusted and guaranteed for life, it acts as longevity insurance. Hence, Dr. Kotlikoff thinks that waiting doesn't only help you but your loved ones too. Dr. Tharp isn't convinced: he points out that only about 10% of workers actually wait until age 70 to claim benefits. Overall, he sees studies that recommend delaying rely on overly conservative assumptions – they assume that retirees earn returns similar to Treasury inflation-protected securities. With this line of thinking, if your portfolio is earning 5% real returns instead of 2%, then delaying your benefits might not look as attractive mathematically… Dr. Kotlikoff cites Menahem Yaari's 1965 paper, which suggests looking at delaying social security like buying insurance. It protects you from the catastrophic risk of living too long and running out of money. The debate continues with Dr. Tharp talking about the sequence of return risk. If the market drops early in retirement and you're forced to withdraw more from your investments to delay Social Security, you can permanently damage your "nest egg". Even though he acknowledges Dr. Tharp's point, Dr. Kotlikoff points out that most retirees have options, such as continuing to work longer, cutting spending, downsizing, or borrowing temporarily instead of taking benefits early. Plus, he adds, the people most affected by sequence of returns risk are, generally, wealthier households… Dr. Tharp concludes the debate by citing a study showing that retirees tend to spend about 80% of predictable income streams like Social Security or pensions, but only about 50% of portfolio income. He also brings up Bill Perkins' book Die With Zero into the conversation. Perkins believes that Americans often focus too much on lifespan and not enough on health span. Dr. Kotlikoff responds by stressing that some people underspend, while others overspend… and that's exactly why there's a need for good planning software. For David, both Dr. Kotlikoff and Dr. Tharp make valid points, and it all boils down to a key question: how long are you going to live? If you're likely to die at 63, then you should probably take Social Security at 62. If you're going to live to age 100, it makes sense to wait until you're 70. While there's no accurate way to determine that, there's currently a group of people who are in the business of figuring that out: life insurance actuaries. David shares two reasons why you may want to consider the additional benefits of life insurance, especially Indexed Universal Life (IUL). 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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    11 m
  • What REALLY Happened with Kyle Busch's $8 Million Lawsuit against Pacific Life

    What REALLY Happened with Kyle Busch's $8 Million Lawsuit against Pacific Life
    Nov 12 2025

    David McKnight looks at what happened when NASCAR legend Kyle Busch reportedly lost $8+ million in what was supposed to be a tax-free retirement plan.

    The plan Busch relied on was built around an indexed universal life insurance policy.

    According to Kyle and Samantha Busch's lawsuit, they paid more than $10.4M into several IUL policies issued by Pacific Life Insurance between 2018 and 2022.

    While these policies were pitched as a safe, self-funding, tax-free retirement plan, things didn't go as promised…

    Poor design, unrealistic expectations, a delayed 1035 exchange, and poor oversight are the key reasons why the Busch's retirement plan ended up belly up.

    "If you're going to do a 1035 exchange, make sure you do it at the start of the policy, not years into it", warns David.

    David goes over the lessons that can be drawn from the Busch's case.

    For instance, you should never enter into a contract that you don't understand, nor should you do an IUL if you can't overfund it from day one.

    David believes that you shouldn't rely on the IUL alone…

    In his opinion, the Busch case is a cautionary tale about what happens when one strategy is positioned as a silver bullet retirement solution.

    In a balanced, comprehensive approach to tax-free retirement, which includes Roth IRAs, Roth 401(k)s, and Roth conversions, the IUL's purpose is not to carry the whole load, but rather to act as a shock absorber.

    A recent Ernst & Young study demonstrated that a retirement income strategy that incorporates IUL provides far more income than a strategy that calls for investments alone.

    David shares a few tips on how to avoid the IUL trap that the Busches unfortunately fell into.

    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

    NASCAR

    Kyle Busch

    Samantha Busch

    Pacific Life Insurance

    Ernst & Young
    Más Menos
    11 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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