The Power of Zero Podcast
hosted by David McKnight
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.
Suze Orman Says Roth IRAs Are Great — But Here’s What She’s Missing
This episode sees David McKnight look at Suze Orman, who, despite being one of the most widely recognized financial voices in America, shares what appears to be incomplete advice. David believes that Orman has done a lot of good for a lot of people thanks to her financial discipline-centered approach (in addition to being a big proponent of Roth IRAs). He agrees with Orman: “Roth IRAs are powerful, no doubt about it. You contribute after tax dollars, your money grows tax-free, and, provided you meet the requirements, you can withdraw those funds in retirement 100% tax-free”. The U.S. is […]
The 3 Questions You MUST Answer BEFORE Doing a Roth Conversion
David McKnight addresses three key questions you must be able to answer before executing a single Roth conversion. Too many people go for Roth conversions without a game plan – this is something that can lead to overpaying taxes and running out of money sooner than anticipated. David points out that if you can’t answer the three key questions, you should stop and reevaluate because guessing here can cost you big. “What’s the total amount I should convert from my IRA or 401(k) to tax-free?” is the first and most critical of the three questions. Remember, the goal of […]
Five Roth Conversion Myths Busted: What Most Americans Get Wrong
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
Two Experts Debate When You Should Take Social Security—But here’s the TRUTH!
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
What REALLY Happened with Kyle Busch’s $8 Million Lawsuit against Pacific Life
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 […]
The Financial Guru Hall of Shame–Who’s Leading You Off a Cliff?
David McKnight focuses on three of the biggest names in personal finance – Dave Ramsey, Suze Orman, and Ken Fisher – and why you should be careful with following their advice. David emphasizes that anyone trying to wring the most efficiency out of their retirement savings should focus on advice that’s backed by math… not soundbites. While David Ramsey is the right person for people who are making less than they are spending, the same can’t be said for his retirement planning advice. For instance, he claims that 100% of cash value life insurance sucks 100% of the time. […]
Suze Orman Says 3%, Bill Bengen Says 4.7%–Who’s Right on Sustainable Withdrawal Rates?
David McKnight compares the approach of some of the biggest names in personal finance: Suze Orman, and William “Bill” Bengen (the man who invented the 4% Rule). In a recent interview covered by MSN, Suze Orman declared flat out that the 4% Rule is dead since markets are volatile, interest rates fluctuate, and people are living longer. David shares the “origin story” of how the 4% Rule came to be – and its creator Bill Bengen. Interviewed by MSN, Bengen updated his research and concluded that, based on current data, a 4.7% withdrawal rate is now sustainable. David compares
Why Dave Ramsey’s Roth Conversion Advice Could Cost You a Fortune
Four Ways to Pay Tax on Your Roth Conversion
I’m 52 Years Old and Have No Bonds in My Portfolio (Smart or Dangerous?)
Dave Ramsey is Right About Bonds, but Not for the Reasons He Thinks
What is the Power of Zero Retirement Philosophy?
More Resources
Balancing Growth and Stability in Your Retirement Portfolio
Retirement planning is about more than just accumulating assets—it’s about managing those assets in a way that provides both growth and stability. While investing in higher-growth assets can help sustain long-term financial needs, excessive risk could lead to losses that are difficult to recover from later in life. Balancing growth and stability in your retirement portfolio requires a strategic approach that adapts to market conditions, inflation, and evolving financial goals. The right mix of investments can help you build a resilient retirement plan that provides income, mitigates risks, and maintains purchasing power over time.
Retirement Risks No One Warned You About
Many people focus on saving enough money for retirement, but few consider the risks that could derail their financial plans. While market downturns and inflation are well-known concerns, other risks—like tax increases, healthcare costs, and longevity—can have an equally significant impact. Understanding retirement risks can help you create a more resilient financial strategy, ensuring that your assets last throughout your lifetime.
Shielding Your Savings: Strategies to Protect Against Future Tax Increases
Many retirees assume that their tax burden will decrease in retirement, but that isn’t always the case. In the context of growing government debt and potential changes in tax policies, some financial analysts suggest that there could be a possibility of tax rate adjustments in the future. If most of your retirement savings are in tax-deferred accounts, those increases could significantly reduce the amount of income available for your expenses. A well-structured tax plan is essential to protecting retirement savings from tax increases. By taking proactive steps, you can create a more tax-efficient retirement strategy that helps preserve your […]
Why Traditional Retirement Income Plans May Not Be Enough
For decades, retirement planning has followed a conventional approach: save in tax-deferred accounts, rely on Social Security, and withdraw a fixed percentage annually. However, this strategy may not be enough for today’s retirees. Factors such as increasing longevity, rising healthcare costs, market volatility, and potential tax changes require a more adaptable plan. Relying solely on traditional retirement income plans can leave gaps in financial security and flexibility. A diversified strategy that incorporates tax efficiency, risk management, and alternative income sources may provide more stability.
The Power of Zero: Aiming for the 0% Tax Bracket in Retirement
Many retirees assume their tax burden will be lower in retirement, but that isn’t always the case. Tax rates fluctuate based on government policy, and if the national debt continues to rise, higher tax rates in the future could impact your retirement income. Aiming for the 0% tax bracket in retirement means structuring your finances so that your taxable income is low enough to avoid federal income taxes altogether. This strategy can help retirees manage tax risk, maintain control over their income, and extend the life of their savings.
Top 5 Financial Myths Perpetuated by Mainstream Gurus
Mainstream financial gurus have built massive followings by offering simplified, easy-to-digest advice on personal finance, investing, and retirement planning. While their guidance may work for some, it often promotes a one-size-fits-all approach that overlooks critical financial nuances. The truth is, some of the most commonly accepted financial myths from mainstream financial gurus can be misleading—or even harmful—to those with more complex financial needs. Let’s take a closer look at five financial myths that are widely accepted but don’t always hold up when applied to real-world financial planning.
Why Risk Isn’t Just About the Stock Market
When most people think about financial risk, they immediately picture the stock market. While market volatility is a significant concern, it’s far from the only factor that can disrupt a retirement plan. Unexpected healthcare costs, tax policy changes, inflation, and longevity risk all pose threats to long-term financial stability. By focusing only on investment risk, investors may leave themselves exposed to other financial challenges that can erode wealth just as quickly—if not more so—than a downturn in the market. Let’s explore the key financial risks beyond the stock market and strategies to help mitigate them.
Why Personalized Financial Planning Outperforms Generic Advice
Financial planning is not a one-size-fits-all process. Yet, many investors rely on generic advice that may not align with their specific goals, risk tolerance, or tax situation. While broad financial guidelines can provide a starting point, they often fail to address the nuances of individual circumstances. Personalized financial planning strategies focus on aligning financial decisions with an investor’s unique needs, providing a tailored approach to managing wealth.
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