The Power Of Zero Show

Today's episode is part 1 of David's interview with Power of Zero co-founder Larry DeLegge. The two talk about value life insurance policies, children, and whether life insurance can serve as a viable volatility shield in retirement. David shares his thoughts regarding the "IUL vs. whole life insurance policy" debate. For David, starting a life insurance policy is like getting married – he explains why. When it comes to life insurance policies, there are two key things David looks at. The first one is safe and productive growth, the second thing is a guaranteed 0% loan. David touches upon the 4% rule and the so-called volatility buffer. "The problem with the 4% rule is that it's a pretty expensive way to go about saving for retirement," says David. A recent Ernst & Young study looked at whether there is any reliable way to get an 8% distribution rate. David cites a study that said that bonds are much more correlated to the stock market than we previously thought and are much more volatile than previously thought.. David discusses precautions to take with the LIRP for your children to avoid unpleasant surprises. 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 MetLife Hancock Midland Dave Ramsey Ernst & Young Curtis Ray

This episode is part 3 of David's interview with Power of Zero co-founder Larry DeLegge. The two discuss the most dangerous retirement advice from Suzie Orman, Dave Ramsey, and Ken Fisher. Financial gurus in the business of dispensing one-size-fits-all financial planning advice is David's biggest pet peeve. Why do they do it? To appeal to a broader range of Americans. David explains what his so-called Dave Ramsey's circle of poverty is all about. Two out of three people who reach financial independence following Ramsey's advice will run out of money before they run out of life…two-thirds of the time! David believes that Dave Ramsey is good for bad investors, but bad for good investors – and cites a couple of examples to illustrate that. David talks about why he believes Ken Fisher is averse to bringing up Roth conversions to his clients and prospects. There's a key difference between Ken Fisher and the likes of Dave Ramsey – David tells it all. David opens up about something he's really excited about regarding his new 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 Dr. Wade Pfau Tom Hegna Graham Stephan Power of Zero YouTube Video Dave Ramsey Eviscerates Co-Host George Kamel for Preaching the 4% Rule Clark Howard

Today's video is part six of David's interview with financial advisor Chris Martens where they discuss the fatal flaw in Dave Ramsey and Suze Orman's retirement planning advice. They discuss David's new book, "The Guru Gap," and how America's financial gurus are leading people astray. David believes that Dave Ramsey and Suze Orman have done an incredible service helping many Americans get out of debt and even become rich--but they're not all that good at helping you stay rich or secure your retirement. According to David, the problem with most financial gurus is that they're trying to appeal to as broad an audience as possible. To do that they dispense one-size-fits-all financial advice. Unfortunately, because of this really broad un-nuanced approach, most financial gurus cannot stay behind products like permanent life insurance that require nuance. David reveals that his main goal is to uncover sustainable retirement strategies and help people wring the most efficiency out of their retirement plan. David and Chris agree that people should not take financial advice from advisors on TikTok. David further explains why TikTok is not his favorite place to get financial advice. 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 from David's conversation with CFP Adam Olson. They discuss why mega-CPA firm Ernst & Young is saying that if you want to maximize your income in retirement, you should put 30% of your retirement savings into a cash value life insurance. David reveals what percentage of your savings you should put into a life insurance retirement plan. David shares the benefits of accumulating three years worth of living expenses in your cash value life insurance–this is to pay for your living expenses in the year following a downturn in your stock market portfolio. According to David, the benefit of doing so is it gives your stock market portfolio a chance to recover before taking further distributions. If you're 50 years or younger, put 30% of your retirement savings towards cash value life insurance. This move alone will double your sustainable withdrawal rate in retirement. So, if you're saving 25% of your income for retirement, David recommends putting around 8% into a cash value accumulation product. 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

Show host Arturo Johnson shares his experience with coming across David's content – and how it has changed his perspective. David mentions a study that illustrates the benefits of putting 70% – and not 100% – of your retirement savings into a Roth 401k and the balance into cash value life insurance. Dave Ramsey is famous for stirring up a hornet's nest among CFPs all across the U.S. David unpacks a shortcoming with one of Ramsey's principles. David goes over what can happen when you utilize life insurance as a volatility shield/buffer. The only way to get an 8% distribution rate in retirement is by utilizing a financial tool that Dave Ramsey says is a hot pile of garbage: cash value life insurance. The reason why David likes IUL is because history shows that you can get five to seven percent net of fees over time in your IUL. David talks about something he dislikes in Ramsey's views on IUL and that many "gurus" such as Suze Orman, Clark Howard, and Ramit Sethi say it's a scam. "The IUL is not a stock market replacement, it's a bond alternative," says David. 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 Arturo Johnson Dave Ramsey Suze Orman Clark Howard Ramit Sethi George Kamel Tom Hegna

David talks about what tax brackets will look like starting from January 1st 2026. One of the things that will change in 2026 are the actual tax rates – with an increased percentage of tax attached to a given range of income. In 2026, tax rates will return to what they were in 2017. David points out that some people online mistakenly believe that, in 2026, things will simply revert back to the same tax rates of 2017, with the same income ranges attached to those rates. An important thing to note is the federal government will index the 2017 tax brackets for inflation, treating your 2026 tax bracket as if the tax cut had never happened. David shares a fairly accurate way of determining what your tax brackets are likely to be and what it will end up costing you. Those in the 24% tax bracket or lower will see a slight uptick in their taxes in 2026 – not because of tax bracket compression but due to their tax rate increasing. David sees doing a Roth conversion as a huge planning opportunity to protect yourself. The idea is to take advantage of the Trump tax cuts while they're still around so that, by the time they expire, you'll have safely transferred a portion of your retirement savings to Roth IRAs. David believes that, even though tax rates will go up in 2026, they'll increase even further in 2030 and 2031 to pay for interest on the national debt in Social Security, Medicare, and Medicaid. 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

David talks about the Power of Zero "philosophy," as well as a recent Penn Wharton study saying that, if all we do is continue on this same course, by 2043 there will be no arrest in the financial collapse of our country. 95% of Americans have the lion's share of their retirement savings sitting in what we call tax-deferred vehicles like 401(k)s and IRAs. A big problem most Americans face: every year the IRS gets a vote on what percentage of your profits they get to keep. David shares the Power of Zero origin story and he explains what someone should do to get as close as possible to someone else. David addresses the question "Where should we be investing our retirement dollars? $29,200 is the limit under which you'll get to experience the water. "A lot of people don't realize that their social security number can be taxed," says David. 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 Penn Wharton The Insurance Buzz

How much of your social security is getting taxed, at what rate, and is there anything you can do about it? Unfortunately, the IRS doesn't make it easy for people to understand how much of their social security is taxable and at what rate. David explains that the best way to understand social security taxation is to first know about provisional income--this is the income the IRS tracks to determine how much of your social security will be taxable. As you continue to increase your IRA distributions and, therefore, your total provisional income, the percentage of your social security that becomes taxable quickly begins to rise. The IRS says that if your provisional income is between $32,000 and $44,000, up to 50% of your social security can become taxable. Fortunately, there are some scenarios where you wouldn't pay any taxes, thanks to standard deductions. The most obvious thing to do if you don't want social security taxation is to do a Roth conversion. According to David, any income taken from a Roth IRA does not count as provisional income and, therefore, does not count against the thresholds that cause social security taxation. However, the only time it makes sense to do a Roth conversion is if you believe that your tax rate in the future is likely to be higher than it is today. 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

This episode addresses whether the mainstream financial planning community is justified in avoiding Indexed Universal Life. Lately, social media has been filled with videos praising the virtues of a financial tool known as Indexed Universal Life (IUL). David explains why the IUL has been taking such a beating from traditional financial planners. David discusses three different viewpoints against the IUL – including that of scammy salesmen on TikTok who often describe the IUL as "a stock market replacement on steroids." Financial gurus tend to be jack of all trades but masters of none with IUL critiques that are either plain wrong or far too simplistic, says David. As a result of these groups' cumulative efforts, IUL is widely viewed as a caricature of a financial product. David goes over how to objectively evaluate IUL on its merits and shares three of its positive utilizations as a dynamic financial tool. 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 Suze Orman Dave Ramsey George Kamel Ernst & Young

David discusses how much of your IRA you should convert, in what amounts and over what time frame. If you're not convinced by the possible dramatic increase in tax rates in 2031 to bump you into the 32% bracket, you're not alone… A whole battery of experts predict that tax rates will have to rise dramatically to help service the national debt and with the $200 trillion in shortfalls in Social Security, Medicare, and Medicaid. In Comeback America, former Comptroller General David Walker predicted that effective tax rates for all taxpayers need to double by 2030. David touches upon what would happen if the government doesn't increase its taxes by 2043. David mentions what your Roth conversion roadmap should look like in the next 10 years – and beyond – if you have the lion's share of your retirement savings in tax deferred accounts like IRAs and 401(k) plans. There's one thing that you shouldn't do before the "tax deadline." You should not bump into the 32% tax bracket or higher. David goes over what he refers to as a "wait-and-see approach." 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 Comeback America: Turning the Country Around and Restoring Fiscal Responsibility by David Walker Penn Wharton

David addresses Clark Howard's viewpoint that seems to want to invite people to never consider a fixed index annuity. Despite interacting with thousands of financial advisors who offer fixed index annuities every year, David has never heard one of them describe them the same way as Clark Howard. Since financial gurus have to get their points across in short three-minute segments, they don't have the luxury of nuance, says David. David explains how fixed index annuities actually work, and why you can't lose money in a fixed index annuity in its simplest form. David touches upon the role of surrender charges and how Howard is wrong about them. In traditional stock market investing, you're not supposed to withdraw more than 4% per year. 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 Clark Howard

Doug Andrew called the IUL a dream investment, but is it the silver bullet retirement account he claims it to be? David goes through Doug Andrew's controversial remarks about IULs, and explains why he politely disagrees with his one-size-fits-all approach to index universal life. David explains why the 4% rule is a very expensive way to pay for retirement. He reveals why it's much more economical to guarantee your living expenses with a lifetime income annuity. If you only utilize the IUL, you will dramatically underperform the stock market over time. Furthermore, you won't be taking advantage of all the unique benefits each of the tax-free alternatives the IRS tax code affords you. The IUL should only be used as a complement to all these other streams of tax-free income, not a replacement for them. David goes through the characteristics that make the IUL a unique investment avenue. Would you rather adopt a retirement approach where you put every last dime of your retirement savings into an indexed universal life insurance policy? Or would you prefer your IUL to be just one component of a balanced, comprehensive approach to tax-free retirement? For David, the IUL is not the only way to grow your money productively over the course of a lifetime. When you have an experienced financial advisor shepherding you through the process, you can get extremely productive returns from the stock market. If you're younger than age 50, David recommends earmarking 30% of your retirement savings towards an IUL. Why 30% and not 100%? Because 30% is a much more balanced, math-corroborated approach to using the indexed universal life policy. The IUL is not a dream in a dream. It's merely a financial tool. When utilized in concert with all of the other available alternatives in the IRS tax code, it can help you create a balanced, comprehensive approach to tax-free retirement planning. David reveals why Wall Street wants you to believe that the stock market is the only solution to stress-free retirement planning. Most financial experts agree that tax rates in the future are likely to be higher than they are today. But that doesn't mean that you must reflexively default to putting all your retirement savings into an IUL. If you want to make money in the stock market, you're supposed to buy low and sell high. Unfortunately, most do-it-yourself investors do the exact opposite. 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

This episode explores the two different five-year rules for Roth IRAs instituted by the IRS to prevent people from abusing them. The first five-year rule applies to earnings on Roth contributions and determines whether those distributions can be taken tax-free. The second rule concerns Roth conversions and lets you know whether conversion principles can be accessed penalty-free. David explains that, for the purposes of the five-year rule, the clock starts the first time any money is contributed to a Roth IRA by either contribution or conversion. Once the five-year rule has been met, it's been satisfied for good. Remember: any recent contribution to a Roth IRA can count as qualified tax-free distributions, even if they've been in the account for less than five years. David shares that Roth 401k plans have their own five-year rule, which is counted separately from a traditional Roth IRA. In case you're unable to make a Roth contribution due to income limitations, you can make a non-deductible contribution to an IRA and then do a Roth conversion. Don't forget that there aren't income limits for IRA contributions. Dave discusses the fact that "the ordering rules for Roth IRA stipulate that withdrawals of after-tax contributions are made first, then conversions, and finally, earnings." The Roth conversion five-year rule lets you know if you can access your converted principal penalty-free. The Roth contribution five-year period, on the other hand, lets you know if you can access your Roth earnings tax-free. 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

At a recent Berkshire Hathaway annual shareholder meeting, Warren Buffett shared his thoughts on why he sees financial advisors as the worst people to trust with your money. Buffett believes that financial professionals in aggregate can't do better than the aggregate of the people who just sit tight. David agrees with Buffett's view on active versus passive investing. According to David, Buffett's point of view and approach don't account for the high cost of investor behavior. The fact that 90% of investment decisions are driven by emotions is a big problem David sees in Buffett's line of thinking. David sheds light on what has become known as the Prospect Theory. What leads "DIY investors" to buy high and sell low, instead of buying low and selling high as logic would suggest? David shares his thoughts on the matter. Adopting an index-based, Do-It-Yourself, motion-driven approach to investing will make you less likely to remain invested during extreme market volatility. For David, one of the main purposes of a financial advisor is to hold your hand and keep you invested during jittery periods in the market. 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 Warren Buffett Berkshire Hathaway

George Kamel recently released a video on index universal life. On the surface, it looks like a ruthless exposé of a financial scam that millions of Americans are falling for. But when you scratch just below the surface, his critique of IUL is a steaming cesspool of half-truths and outright lies that are designed to sell you a term insurance policy through a Dave Ramsey-sponsored term insurance broker. According to Kamel, the IUL is a financial scam marketed as a secret wealth hack, yet in reality, it's a money-eating monster. Yes, IULs are marketed by pretty scammy people on social media. However, there is a big difference between scammy life insurance agents and scammy life insurance products. IUL products are not created equal. It all depends on your personal situation and needs. Some products can be fantastic tools for building and protecting wealth and others can be catastrophic to your retirement. For David, not only does the IUL serve as an extremely competitive bond alternative, but it's also a great volatility buffer in retirement. Financial gurus are not in the business of nuance. It's all about making sweeping black-and-white characterizations that fit neatly into their tiny box. According to David, recent studies demonstrate that bonds are much more volatile and much more correlated to the stock market than was previously thought. David explains that fees are only a problem in the absence of value. And when utilized in the right context, an IUL provides value that you simply can't get any other way. David explains how the IUL fees are a strength and not a liability that the uninformed life insurance critics make it out to be. When George says that the IUL is a money-eating monster, he's only fixating on the fees in the early years of the contract. If he were to look at the average fees over the life of the program, a much different picture would emerge--one that paints the IUL as lower than the most cost-effective 401K plan. David goes through the things George gets wrong about the death benefit options in an IUL. The entire purpose of George's video is not to educate you on the evils of an IUL. It's to get you to buy a term life insurance policy through Dave Ramsey's endorsed broker of choice. George's ultimate goal is to get you to take the money that you might otherwise have allocated towards an index universal life policy and redirect it towards a term insurance policy from which Ramsey himself ultimately benefits. 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

According to David, Ken Fisher's hate toward annuities is visible in what can be considered "one of the most successful attacks on any financial product in history". David discusses why, in his opinion, Ken Fisher sees annuities as the perfect marketing tool to build his own asset management firm. There are two things annuities can do that no other financial product can – David explains what they are. Academic studies that go back to the early 1960s seem to suggest that annuities are the best way to maximize retirement income. There appears to be a massive information gap facing a generation of retirees who are unaware of the value annuities can play in helping them spend more income in retirement. David shares an example by Dr. Michael Finke, one of the foremost experts on the benefits of guaranteed lifetime income. David touches upon whether what Ken Fisher is doing can be considered illegal. 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 Ken Fisher Richard Thaler's New York Times articles Peter Diamond "Ken Fisher Can't Have It All" by Dr. Michael Finke

Financial expert and author Ric Edelman has stated that, in his opinion, anyone following Dave Ramsey's 8% retirement withdrawal strategy is…doomed! The 4% rule has been the distribution rates' gold standard for over 30 years. However, Suze Orman said that she wouldn't use the 4% rule on any level. David touches upon what he considers a "massive unintended consequence" of adopting Suze Orman's 3% withdrawal rate in retirement. According to David, there isn't a winner between a 3%, a 4%, and an 8% retirement withdrawal strategy. He gives a couple of examples that illustrate why that's the case. David believes that, to get the best bang for your buck with the highest success rate over a 30-year retirement, a guaranteed lifetime income annuity is – almost always – the best way to go. 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 Ramsey Suze Orman Ric Edelman

A recent Penn Wharton study found that the federal government will have to dramatically raise taxes within the next 20 years to avoid sliding into a debt spiral of high interest rates and debt payments. Former comptroller General David Walker has stated several times that taxes would have to double by 2030 or the U.S. will go broke as a nation. When it comes to retirement savings accounts, the federal government typically gives people a choice between paying taxes at the time of contribution or paying them on your distribution years down the road. A big advantage of contributing to a Roth IRA is that you'd be paying taxes at today's historically low tax rates. David thinks that believing Walker and the Penn Wharton study means accumulating the lion's share of your retirement savings in tax-free vehicles like Roth IRAs and Roth 401ks. David shares the approach he recommends having when it comes to Roth Conversions. The Roth 401k is one of David's favorite tax-free investments – he explains why. For David, the real allure of the LIRP is that it provides a death benefit that you can receive in advance of your death for the purpose of paying for long-term care. David lists the pieces of the puzzle that make for a balanced and comprehensive approach to tax-free retirement. 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 David Walker Penn Wharton study: "When Does Federal Debt Reach Unsustainable Levels?"

Former comptroller general of the federal government, David Walker, believes that tax rates will have to double, in order to avoid a financial collapse. The U.S. Government should be helped in preventing their growth. David McKnight points out a potential course of action that should be followed to avoid a possible financial collapse. Permanent solutions to stabilize the debt outlook are needed now…not 20 years from now when the crisis is already upon us. David touches upon the role that higher federal taxes and lower spending may have. What's the best tool to shield yourself from the coming tax apocalypse? David knows and shares it on the show. 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 Jagadeesh Gokhale David Walker Penn Wharton Ken Smetters

Today's episode is part 4 of David's interview for Jesse Wright's podcast, and it addresses the best way to figure out how much money you'll need to be able to retire. David explains how to be able to identify what your retirement shortfall is going to be. There are different approaches and each one comes with its unique traits – David discusses his favorite. Citing Suze Orman, David shares his thoughts on what the new retirement age should be. Jesse and David touch upon living abroad while in retirement, what that actually entails, and Act 60. David shares his experience living in Puerto Rico, and shares his #1 actionable retirement planning tip for people in their 50s. 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 Suze Orman

Today's episode is part three of David's interview on Jesse Wright's podcast. They discuss the best way to ensure your savings last as long as you do. Jesse shares a shocking stat: 65-year-old married couples have an 18% chance that at least one person in the relationship will live to be 95 years old. This means that there is a very real chance that at least one of them will outlive their savings. For David, most Americans outlive their savings because they don't save or invest enough to fund a 30-year retirement. The majority of people who save enough are also at risk of running out of money because they're not managing their money well enough in retirement. David defines sequence of return risk and how market declines in the early years of retirement could significantly reduce the longevity of your savings. David talks about the benefits of owning annuities as well as the ones that work best for retirement planning. According to David, the biggest mistake people make in retirement is having all their savings in tax-deferred accounts by the time they retire. The name of the game is not just saving enough by the time you retire, but distributing in a way that your savings last through your actuarial life expectancy. The 4% rule is hard to follow because it only works if you can constrain yourself to 4% each and every year of retirement. If you can constrain yourself to 4% distributions adjusted for inflation in retirement, you have an 86% chance that your money will last through life expectancy. Every time you take out more than 4%, that success rate drops like a rock. The assumptions we use in our retirement plans are important and have real life implications if we use the wrong assumptions. 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 the second part of David's interview for Jesse Wright's podcast. Beware of what you see on social media, says David. A lot of that content is by wayward life insurance agents employing pretty despicable tactics. David shares an example of bad advice and highlights why this is advice you should stay away from. For David, 99% of TikTok videos misrepresent what the IUL can do and the role it should play in your retirement. David explains why an IUL is sort of like getting married, including the "until death do you part" side of things. It's important to get to the 0% tax bracket and to shield yourself from the impact of higher taxes…but getting help from someone who has experience is just as important. David points out two traits you would want your financial advisor to have as you plan for your retirement. David goes over what he considers a balanced and comprehensive approach to tax-free retirement planning. Many people forget that not all of the money that's growing in your 401k is accruing to your benefit. A portion of that belongs to the IRS. 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 David Walker

Today's episode is part 1 of David's appearance on Jesse Wright's podcast. Jesse asks David where one should start from when thinking about retirement. David points out that the types of accounts which one saves money for retirement really matter. According to David, there's essentially two ways to save money for retirement. The first is to get a tax deduction today. The second is to pay the tax today and invest your money so that, in the future, you'll be able to take that money out tax-free. David goes over why he wrote The Power of Zero back in 2014. One key question David believes people should ask themselves is whether their tax rate is likely to be higher today or in 20 years. For Former Comptroller General David Walker, the 20% of the income Americans are paying between federal, state, and local taxes, could go up to 40% by 2030. David believes that the farther out your investment horizon and retirement date, the more critical it is for you to invest in tax-free accounts like Roth IRAs, Roth Conversions, etc. David recommends planning for 50% tax rates and explains that there are three basic types of account to save money for retirement. These three buckets are: the so-called taxable bucket, the tax-deferred bucket, and the tax-free bucket. David goes over the characteristics of each bucket. 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 David Walker Comeback America: Turning the Country Around and Restoring Fiscal Responsibility by David Walker

David and Khalen Dwyer discuss HonestMath.com's research proposing a conservative 4% annual withdrawal for a 30-year retirement--contradicting Ramsey's long-standing advice of an 8% withdrawal rate. Khalen explains how Ramsey's assumptions defy both mathematical principles and historical data. He also reveals the financial instability retirees may face when following Ramsey's controversial 8% withdrawal rate. Khalen and David agree that the primary job of an advisor is to help investors set reasonable expectations. If doing that means the advisor is a hope stealer, then advisors can wear the hope stealer's badge with pride. The first three to five years of retirement are very important and can set the economic tone for the rest of your retirement. For Khalen, investors must realize that their risk appetite might change as they get closer to retirement. The closer you get to retirement, the more your need to protect accumulated savings becomes more critical, as there is less time to recover from significant market downturns. When you're 100% invested in stocks, the swings in the market tend to be much wider, and that exacerbates the sequence of return risk for the investor. David adds that poor investment performance during the initial years of retirement can deplete the portfolio more quickly than anticipated. Retirees who experience market downturns in the early years of their retirement and withdraw a higher percentage of their portfolio to cover living expenses might accelerate the depletion of the portfolio. Even if the market rebounds in later years, the portfolio may struggle to recover because the initial losses reduce the base from which subsequent returns are generated. Khalen highlights the substantial risk associated with an 8% withdrawal rate using real-life examples and historical data. David and Khalen question Ramsey's aversion to bonds and insistence on a 100% stock allocation. They discuss the psychological impact of market volatility in retirement, the importance of investing in bonds for portfolio stability, and why Ramsey's all-stock approach just doesn't make sense. According to Khalen, one of the most important aspects of retirement planning is addressing the sequence of return risk. The sequence of returns risk is the risk of experiencing poor investment performance, particularly negative returns, in the early years of retirement. 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 HonestMath.com @honest_math on Twitter Khalen Dwyer on LinkedIn

David makes a clear preface: "If anyone ever tells you to cash out your 401k and put it all into an IUL, you're to turn around and run the other way!" This episode addresses what David refers to as "the worst IUL TikTok video I've ever seen; a video that's so replete with manipulative sales tactics and lawsuit-worthy financial advice." David points out one of the manipulative sales strategies included in the video: making the prospect feel as if she needs help by making her feel confused and overwhelmed by the number of alternatives. "Cash now vs. an awesome retirement plan later" is another unethical tactic David discusses. Beware: if you don't liquidate your 401k prior to 59 and a half you'll incur a 10% penalty. Need to liquidate your 401k before then? Don't do it all in one year. Otherwise, all of that money would be realized as income and taxed at your highest marginal tax bracket – all in the same tax year. Remember: closing out your 401k and stopping contributions will lead to you no longer receiving the company match. Over the course of your retirement, this last point will end up costing you hundreds of thousands of dollars. David stresses the lack of relevant questions being asked by the financial advisor featured in the TikTok video. David deems the video to be one of the worst cases of IUL malfeasance he's ever seen on social media. Moreover, he believes that advisors like the one in the video should be outlawed and fined. 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

One of the things Dave Ramsey is famous for is telling his audience that they can take sustainable 8% distributions from their stock market portfolios in retirement. David has two issues with this recommendation: it ignores reams of academic data on sustainable withdrawal rates, as well as the concept of sequence of return. David points out the potential repercussions of following Ramsey's approach. According to the mainstream financial community, 4% is the actual "golden rule" for sustainable distribution rates in retirement. Ramsey has long complained about the 4% rule being a pretty expensive way to go… David illustrates a key problem with an 8% withdrawal rate and discusses the role of a volatility shield. David explains that the money you can put in a volatility shield has to grow tax-free and allow for tax-free distributions. It's possible to increase your sustainable withdrawal rate on your stock portfolio to as high as 8%, with a 95% chance of never running out of money – David explains how. On an apple-to-apples basis, guaranteed lifetime income annuities give you a much higher income than living by the 4% rule in retirement. Following this Dave Ramsey strategy? David believes that it's likely going to force you to run out of money 15-20 years in advance of life expectancy. 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

David talks to Tom Hegna, an economist, author, and popular industry speaker considered by many to be the retirement income expert. David reveals how he learned about the unstable fiscal trajectory of the U.S. and why he wrote the book, "The Power of Zero." The book emphasizes the importance of preparing for higher tax rates. It offers strategies to help you protect your retirement savings against the impact of potentially higher tax rates in the future. David talks about teaching financial principles to his children--tithe 10%, save 20%, spend the remaining 70%. Did you know Americans have 95% of their accumulated retirement dollars in IRAs and 401Ks? It's great that Americans are saving for retirement but the downside to this strategy is that traditional IRAs and 401Ks are tax-deferred. Taxes are deferred until the funds are withdrawn. Meaning you'll potentially pay more in taxes in retirement. David reveals why it's okay to preemptively pay taxes before the IRS absolutely requires it of you. Tips for individuals in their 20s and 30s on how to save and invest in tax-free accounts. Why it's never a good idea to spend most of your income on depreciating assets. David shares how his system for investing differs from mainstream financial advice. Tom and David agree that people cannot become wealthy by borrowing money to put into depreciating assets. David's investing principle is built on a simple formula: start saving money as early as today, put it in tax-free accounts, do it consistently for 40 years, wait, and you'll have a great retirement. According to David, whatever you decide to do in college, someone has to be willing to pay you money in exchange for the services you provide. The longer your investment horizon, the more likely your taxes will be higher in the future. Not only do you need to start investing early, you also need to invest tax-free. Remember, the longer your investment horizon, the more it makes sense for you to invest in tax-free accounts. We are marching into a future where the cost of servicing the national debt will consume the entire federal budget. When this happens, David believes the Federal Reserve will be forced to raise taxes or risk going bankrupt. So, how can Americans protect themselves from the risk of rising taxes? First, acknowledge that taxes will be higher in the future, invest early, and start investing in tax-free accounts. David and Tom share their thoughts on why permanent life insurance is by far the best tax benefit in the IRS tax code. David announces his upcoming book, "Guru: Why Financial Gurus Are Leading You Astray and How to Get Back on Track," which critiques mainstream financial advice and offers a more personalized approach to tax-free investing. 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

David talks to Jay Disberger, the caller on Dave Ramsey's viral 4% rule meltdown. They start the discussion by describing why the clip went viral and how people can get their questions answered live on the Dave Ramsey Show. Jay's motivation for the call: To get clarity on how best to withdraw your money in retirement and get Dave to take a stand on sustainable withdrawal in retirement. Jay shares his journey to finance coaching and saving for retirement. David and Jay discuss why George Kamel was right about the 4% withdrawal strategy and why Dave Ramsey's 8% withdrawal rate is misleading. Why Dave Ramsey is not a huge fan of the 4% rule or the people who preach it — He believes it's too low and unrealistic. You don't need to withdraw 4% of your savings for your nest egg to survive. According to Dave Ramsey, you're missing out on a big opportunity if you only withdraw 4% from an investment portfolio earning 12%. David and Jay agree that Dave Ramsey lives in a fantasy world where he thinks stratospheric distribution rates are sustainable in retirement. The biggest issue with an 8% withdrawal rate is that it doesn't account for market volatility. Just because you average 12% per year doesn't mean you're guaranteed 12% returns yearly. The only way to have a productive conversation with people who don't think they can be wrong is to ask them open-ended questions in the hope that they come to the conclusion themselves. According to David, we live in a world where anything you say that flies in the face of reason will be clipped and posted online. Dave Ramsey does a great job of motivating people to get out of debt and get on the path of financial independence. The problem lies in his absurd retirement planning advice. The biggest problem with Dave Ramsey is that he's not very nimble when it comes to changing his thoughts according to new research and data. Jay and David agree that the 4% rule is not for everyone, but it's also not sustainable to follow the 8% rule. Jay reveals what he would tell Dave Ramsey if he ever got the opportunity to talk to him again. 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 Jay Disberger on LinkedIn Jay Disberger at HopeFilledFinancial.com The HopeFilled Financial Podcast

Dave Ramsey recently eviscerated his co-host George Kamel for preaching the 4% rule. According to George, withdrawing only 4% of your savings is the easiest way to guarantee your money lasts throughout retirement. George further adds that the 4% rule is a math-based approach to sustainable withdrawals in retirement. For Dave Ramsey, the 4% is senseless and only geared toward stealing people's hope for a brighter retirement. He believes an 8% withdrawal rate is more sustainable since your savings will be growing at a rate of 12%; factor in 4% for inflation, and you're left with 8%. It's clear Dave Ramsey is oblivious to the sequence of return risk, which could force you to run out of money 15 to 20 years early if you experience a series of negative returns in the first decade of retirement. The fact is, even if you average 12% rates of return throughout retirement, you won't be getting 12% every single year. Some years, you'll get 20%, and other years you'll get -26%. David explains that the 4% rule gives you peace of mind that regardless of the swings in the market, you'll have a reasonably high chance of not outliving your money. Because Ramsey has millions of dollars, he has the license to utilize planning assumptions that are wildly at odds with history and academic research. If you'd like a stress-free retirement, ignore Dave Ramsey's advice and embrace strategies that are built on sustainable retirement planning principles like the 4% rule. 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

David talks about the three main types of tax-free retirement advisors and the one that will guarantee a hassle-free retirement. The first type of advisor is the TikTok advisor. This is the advisor who will preach the prospect of dramatically higher tax rates in the future. The only downside to their message is that they believe the only way to shield yourself from the rising tax rates is to put all your retirement savings into an IUL. If you believe in a balanced and comprehensive approach to retirement planning, steer clear of these types of advisors. It's unwise to build a retirement plan on the foundation of an IUlL and exclude every tax-free alternative in the tax code. The second type of advisor is the one who believes in tax-free retirement planning but is not acquainted with the data that proves tax rates will rise dramatically in the future. If you are interested in shielding your assets against the impact of higher taxes, avoid these types of advisors like your retirement depends on it. Because it does. The third type of advisor is knowledgeable on data that proves tax rates will dramatically rise in the future and advocates for a balanced, comprehensive approach to tax-free retirement. If you believe that tax rates in the future will be dramatically higher than they are today, then you also need to recognize that not all financial advisors are equally equipped to help shield your retirement savings from those higher taxes. Your job as an investor is to get an advisor who understands the unique fiscal challenges facing our country and understands that the best way to protect yourself from those challenges is to implement a balanced, comprehensive approach to tax-free retirement. 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

David breaks down a recent Dave Ramsey interview where he advised a 50-year-old widow on the best way to save, invest, and withdraw her retirement savings. According to Ramsey, if the lady invests $1000 every month for 15 years, she will have accumulated $500,000, which gives her permission to withdraw 10% of her savings every year for the rest of her life. The problem with this recommendation is that she will likely earn 9% returns per year, not 12%. She is also more likely to run out of money before running out of life if she withdraws 10% of her savings every year. The gaping hole in Dave Ramsey's investment approach is that he seems to have a limited understanding of the sequence of return risk. This is the order in which you experience investment returns in retirement. Generally, it's safe to show future returns based on a historical track record consistent with your future investment horizon. For example, if you want to know what rates of return you'll likely experience in the next 15 years in the S&P 500, you need to look at how the index performed in the past 15 years. According to David, Ramsey's overly inflated retirement variables are setting his listeners up for failure. By inflating his assumptions, Dave Ramsey gives his listeners an overly optimistic view of how much money they must save to reach their retirement goals. But why does Dave Ramsey have such a flawed view of retirement planning? David believes it comes down to two things: Dave Ramsey likes to portray himself as the retirement planning outsider who is at war with the mainstream financial planning community. He believes that if he can show his followers lucrative investment projections, more of them will sign up for his financial independence programs. Don't be seduced by Ramsey's inflated rates of return or his massive withdrawal rate assumptions. You're much better off using a 9% rate of return and a 4% sustainable distribution in retirement. 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 three of David's interview with Power of Zero Advisor Terry DuPont. Trump tax cuts were not permanent – David explains why 2026 is going to be a key year for that. In his book Comeback America, former Comptroller General David Walker predicted that, by 2023, tax rates would have to double – or more – to keep the U.S. solvent. David shares what he believes people should do in the next few years as the country approaches an "apocalyptic" scenario. Terry DuPont is amazed by the fact that families and individuals don't seem to understand the fact that the largest expense in their lifetime will continue to be the same. According to Terry, the main issue is that people don't calculate that expense into their future. Terry asks David about the one thing he knows now that he wishes he knew when he started. David opens up about the role David Walker has played in his journey as well as about his definition of success. David warns people against letting a year go by without taking advantage of historically-low tax rates. 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 Terry DuPont Comeback America: Turning the Country Around and Restoring Fiscal Responsibility by David Walker Bill Clinton David Walker on 60 Minutes Why Your Taxes Could Double (2009 CNN article by David Walker) I.O.U.S.A. (2008 documentary featuring David Walker)

Today's episode is part two of David's interview with Power of Zero Advisor Terry DuPont. David talks about the approach many major money management institutions follow, and how it differs from how David and Terry do things. There are situations where large money management institutions forbid their advisors from ever bringing up, for example, Roth conversions. David invites listeners to browse the web trying to find a Ken Fisher article discussing the benefits of a Roth conversion. David discusses what makes the Power of Zero approach stand out in the financial planning industry. People seem to be hungering for real solid strategies that can help insulate them from the impact of rising taxes, says David. David lists a few reasons why the advice people may get from gurus like Dave Ramsey or find on platforms like TikTok isn't useful. David recommends having a balanced and comprehensive approach to tax-free retirement that takes advantage of all the nooks and crannies in the IRS tax code. There are different things David likes about Roth IRAs, Roth 401ks, Roth Conversions, Life Insurance Retirement Plans, and tax-free social security – he touches upon them. 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 Terry DuPont Ken Fisher Fisher Investments Dave Ramsey Suze Orman

Today's episode features some of the highlights of David's appearance on the Your Money with David Hays podcast. David touches upon what he would focus on and how long he believes he would last if he were president of the U.S.. David's next book will probably have the title Guru. For a while, David Hays has half-jokingly said that he would accept the responsibility of mayor. David introduces two perspectives into the picture: the point of view of financial gurus like Dave Ramsey and Suze Orman, and that of Ed Slott – whom USA Today dubbed "America's IRA Expert." Many people underestimate the financial costs of long-term care for their parents, spouse, or partner, says David. David illustrates the traditional way to approach long-term care and what would make the most sense for those thinking about it for their loved ones. 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 Your Money with David Hays Dave Ramsey David M. Walker Bill Clinton George W. Bush Shark Tank Suze Orman Ed Slott USA Today

In a recent interview, Dave Ramsey claimed he beat the S&P 500 over the last 30 years because "it's not hard to do." The big question is, is it really that easy to beat the S&P 500 over time? According to David, it's not. In fact, most active fund managers fail to do it over time. A recent study revealed that 85% of fund managers underperformed in the S&P 500 in the last ten years - this underperformance caused the disappearance of mutual funds altogether. Based on these stats, how do we rate Dave Ramsey's claims that he outperformed the index by 12% and 13% in some years? David believes it's not advisable to collect all your money and move the index fund route. The first step should be seeking the services of a financial advisor. Good financial advisors will more than offset whatever fees they charge you in the form of enhanced returns that stem from sticking to your investment goals. Unfortunately, most investors let their emotions undermine their investment decisions. We're supposed to buy low and sell high, but most investors do the opposite. Fuelled by emotion, they buy high and sell low. For David, a good financial advisor will help protect you from yourself and remind you of the plan you created and why you need to stay on track toward your goals. It doesn't matter how much money you have. It only matters how much you actually get to spend after taxes. The three main takeaways from Dave Ramsey's claims about beating the S&P 500: Take everything Dave Ramsey says with a grain of salt. His entire business is built on making investing seem easier than it actually is. Beating the S&P 500 is not as easy as Dave Ramsey claims. You need a qualified financial advisor to help you yield much higher returns over time to increase the likelihood that your life savings will last through life expectancy. 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

David breaks down a recent article by financial advisor Brian Manderscheid on what insurance agents don't tell you about Indexed Universal Life (IUL). David talks about the risk of consuming financial content online without seeking professional advice when making significant financial decisions. David reveals how the claims made by financial influencers tend to be overly promissory and exaggerate what the IUL can actually do for your retirement portfolio. He further adds that IULs were never exclusively available to the wealthy, and you should not expect 10% plus returns. In Brian's article, he describes why you must have a life insurance need before investing in an IUL. If the IRS is willing to give you the benefit of a nearly unlimited bucket of tax-free dollars, you have to be willing to pay for life insurance and have the need for life insurance. According to Brian, you need to structure your IUL correctly if you are to enjoy all the perks that come with owning an IUL. David agrees with Brian's views on the proper way to structure an IUL. In order for the IUL to work, you must buy as little death benefit as the IRS requires and pump in as much money as the IRS allows. Your goal is to go after all the benefits of a Roth IRA without all the limitations of owning a Roth IRA. According to David, IULs only work when considered as part of a balanced, comprehensive approach to tax-free retirement. David talks about the lies peddled by financial influencers online - they focus less on creating reliable and accurate content and more on likes and views. As an investor, it's very important not to conflate actual historical returns with retro-engineered returns when considering an IUL. Anyone can create a retro-engineered index that looks great on paper. David is much more impressed with an actual track record, even if that track record nets you only 5 to 7% net of fees over time. One of the things not discussed in Brian's article is how most solid IUL carriers give you the ability to receive a death benefit in advance of your death to pay for long-term care. For David, Brian's piece is one of the more accurate IUL articles on the internet today. 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

David gives a 1-minute summary of all his books on retirement. The Power of Zero: How to Get to the 0% Tax Bracket and Transform Your Retirement. The book outlines a step-by-step plan for getting to the 0% tax bracket in retirement, because if tax rates double, as some experts predict, two times zero is still zero. Look Before You LIRP: Why All Life Insurance Retirement Plans Are Not Created Equal, and How to Find the Right One for You. David explains that while various LIRPs may help get you to the 0% tax bracket, not all will do so with the same efficiency or effectiveness. In fact, finding the right LIRP for your tax-free retirement plan can be just like finding the ideal spouse. Just as you likely had a list of qualities you were looking for in a life-long partner, you should have certain attributes and provisions in mind when looking for the ideal LIRP. The Volatility Shield: How to Vanquish the 4% Rule & Maximize Your Retirement Income. In this book, David breaks down financial truths that challenge conventional wisdom and reveal the gaping hole in people's retirement picture. He also reveals how you can open a volatility shield account that allows you to pay for your retirement living expenses in the year following a down market. Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement. David lays out a comprehensive, step-by-step roadmap for a secure retirement and how to shield yourself from longevity risk as well as the unintended consequences of higher taxes. The Infinity Code. This book speaks of the evils of the modern monetary theory, which says that we can print an unlimited amount of money to pay for our nation's burgeoning debt load. David shares insights from his upcoming book, Guru. Americans love charismatic gurus who dish out one-size-fits-all financial advice that is easy to digest and implement. However, the dumbed-down financial advice offered by Dave Ramsey and other gurus is good for bad investors but bad for good investors. David believes that while these financial gurus sometimes dispense good advice, it's nearly always at the expense of the best advice. 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 Comeback America: Turning the Country Around and Restoring Fiscal Responsibility by David M. Walker

David reviews an anti-IUL book, LAPSED, written by financial advisor Elan Moas, who believes IULs are designed to fail rather than succeed. According to David, the book is written with dramatic and highly-charged rhetoric around what will befall you if you make the mistake of purchasing an IUL. So the big question is, "Are IULs too good to be true?" For David, IULs do exactly what they're meant to do. Their true purpose is to give you stock market exposure up to a cap with a guarantee against market loss. IULs are not meant to be a stock market alternative. They are a bond alternative with returns of between 5% and 7% net of fees over the life of the program. Insurance companies don't make money on Cap Rates. Cap Rates are a function of two things. First is the cost of options, which is informed by the volatility of the stock market. And second, the carrier's options budget, which is a function of interest rates. David debunks Elan's theory on how IUL providers are intentionally and aggressively working to confiscate your money. David shares a chart showing return rates from real and highly-rated IUL carriers. Only when you see that the author is out to sell you a whole life insurance policy will you understand the motivation behind his misinformed book. David believes the author's goal is to scare people out of their perfectly adequate IULs into a whole life policy that he would be more than happy to facilitate. If you like whole life insurance, great. If you like IULs, great. But please don't waste everybody's time with intentionally misleading scare tactics. 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 revolves around whether Dave Ramsey is right – or wrong – in saying that people can take an 8% withdrawal rate in retirement. A group of fiduciary advisors recently confronted Dave Ramsey on Twitter. Just like David, they too thought that Dave Ramsey is living in a fantasy world because of the advice he shares with people. David points out a big flaw in Dave Ramsey's recommendation of staying 100% invested in stocks your entire lifetime: the approach doesn't account for investment volatility. Remember that just because you average 11.8% per year, it doesn't mean that you'll be getting precisely that result each and every year. That's because the order in which you experience returns in retirement is one of the biggest keys in determining whether your retirement assets will last through life expectancy. David emphasizes the fact that most people who retire at age 65 need their money to last a full 30 years. Ramsey's "one-size-fits-all" approach is the reason why, David believes, he takes positions even if they aren't supported by the data. 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 Ramsey Morningstar Ibbotson Associates Debunking the Myth of the 8% Return by Wade Pfau

David starts the conversation by describing why he's not a huge fan of Doug Andrew's retirement philosophy. David then talks about the differences between Doug's approach and the Power of Zero approach for funding your retirement. According to Doug, you risk jeopardizing your retirement if you have money in an IRA or a 401K. There's the danger of losing a sizable portion of your portfolio if the markets were to crash like they did in 2008. To protect your retirement, Doug believes it would be best to move all your money in the stock market into a Laser Fund/Indexed Universal Life Insurance. David interprets this to mean that Doug dislikes stock market investing. For David, the stock market is the single greatest engine of wealth creation the world has ever seen. What about risks and volatility? David explains that the longer you invest in the stock market, the more likely you won't lose money and grow your assets over time. David prefers a retirement strategy that views the IUL as one component of a balanced, comprehensive approach to tax-free retirement. David reveals why the Roth 401K is an extremely useful tool for funding tax-free retirement. David shares what his preferred tax-free investment strategy would look like - and why the zero percent tax bracket is so powerful. David goes through the 3 things that make IULs a unique tax-free investment route: A death benefit that doubles as long-term care. Serves as a great volatility shield in retirement. Safe and productive returns. Also functions extremely well as a bond alternative. If you believe tax rates will be higher in the future than they are today, you should adopt a strategy that takes advantage of all the benefits in the IRS tax code. 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

David starts the conversation by breaking down his book, Power of Zero, and the problem with America's ever-rising national debt. For David, the goal of the book is to guide people on how to move their assets into tax-free retirement vehicles - and how such a move is the only way to shield yourself from potentially higher tax rates in the future. David describes the difference between LIRPs and other life insurance products. All LIRPs are life insurance policies, but not all life insurance policies are LIRPs. David reveals why he believes HSAs(Health Saving Accounts) are the holy grail of financial planning - you get a deduction on the front end, let that money grow tax-free, and then take it out tax-free. Can you have too much money in your 401K? Yes. You want to ensure the balance in the IRA is low enough that RMDs (when you are finally forced to take them) are equal to or less than your standard deduction and low enough that they don't cause Social Security taxation. You can have a million dollars in your IRA, but unless you can accurately predict what tax rates are going to be in the year you take that money out, you don't really know how much money you have. David reveals why many financial planners detest tax-free investing. Life insurance is not a silver bullet for tax-free retirement. It only works as a complement to other tax-free streams of income. Is it a no-brainer to get life insurance? David believes it's not. It depends on your situation. Always remember that the IRS is looking at how much money you withdraw from your IRA and 401k. If you take out too much, they'll tax a portion of your social security. David talks about the benefits of having 4 to 6 different streams of tax-free income. According to David, we are in the tax sale of a lifetime because taxes in the next three years will never be as low as they are today. 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 Comeback America: Turning the Country Around and Restoring Fiscal Responsibility by David M. Walker

David starts the conversation by describing why he believes Dave Ramsey is wrong about Fixed Indexed Annuities. In a recent live call, Dave Ramsey revealed why he is not a fan of annuities and what you should consider doing instead. Dave Ramsey's thoughts on Fixed Indexed Annuities - They have a floor that cannot go below a specific number, say 6%. Fees are double what you might get in a mutual fund and the advisor commissions are four times as high. David's response to Dave Ramsey's thoughts on Fixed Indexed Annuities. Indexed annuities don't have a 6% floor. If an index ever goes down in a given year, they simply credit you a zero. The floor is zero percent. Technically speaking, Fixed Indexed Annuities don't have fees. You cannot lose money to fees or end up with less than your original contribution. David goes through the benefits of investing in Fixed Indexed Annuities. One of the dangers of being a financial guru is you have to project to your listeners that you're an expert on every financial topic. For David, fixed Indexed Annuities are not a stock market alternative. They're a bond alternative. David believes that if you're a disciplined investor and want to purge longevity risk from your retirement picture, you should consider Fixed Indexed Annuities. It's clear that Dave Ramsey knows far less about annuities, and it's troubling that he consistently gives investment advice on subjects he's not familiar with. 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

David starts the conversation by describing how a financial guru, Derek Sall, allegedly lost $400k in an ill-advised Roth conversation. According to Sall, you're way more likely to have a lower income in retirement than you have today, so you'll likely be in a lower tax bracket in the future. But as we all know, tax rates must go up as early as 2026 to pay for unfunded government obligations. David made 3 observations to counter Derek's claims: Your income in retirement is not likely to be way lower than it is today. This is one of the huge myths foisted on a generation of baby boomers. The single largest factor that should determine whether you do a Roth conversion is whether you believe the taxes you pay will be higher now than in the future. You're not necessarily guaranteed to be in a lower tax bracket in retirement. More and more experts are beginning to predict that tax rates in the future will have to rise dramatically to pay for unfunded obligations. David explains that Derek might have unknowingly made a wise financial decision by making a Roth conversation at the 22% tax bracket. You should always consider doing a Roth conversion, especially when young. Chances are, you will make a lot of money in your later years, so it makes sense to pay taxes now since taxes will likely go up in the future. For David, Derek Sall did not make the wrong move by converting his 401K into a Roth. In fact, he didn't go far enough. He should have taken advantage of the 24% tax bracket as well. David reveals whether there are certain times it doesn't make sense for some people to do a Roth conversation. 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

Jeremy Schneider is a financial guru who claims to have retired at the age of 36 with four million dollars. He recently shared an anecdote about a young millionaire who owned around $90,000 in cash value life insurance. The reaction of the host was quite interesting, as none of the other millionaires interviewed for the show brought up life insurance as a means of building or holding their wealth. If you scroll around on social media though, there is a huge number of financial gurus recommending investing in Indexed Universal Life Insurance because of lax legislation that allows the conflation of the insurance product as an investment vehicle. The trouble with Jeremy's dismissal of the IUL product is that he fails to distinguish between the deceptive practices of unscrupulous insurance salesmen and the product itself. He also makes the incorrect comparison by saying indexed funds outperform the IUL over time, but that's like comparing stocks to bonds. They aren't the same thing. If he were to acknowledge that IULs had a proven track record of between 5%-7% net of fees over time without taking any more stock market risk than you are accustomed to in your savings account, then he would undermine his anti-IUL narrative. His gimmick only really works when he compares the IUL to a portfolio entirely composed of stocks, but when you consider bonds, an entirely different narrative emerges. Jeremy Schneider also fails to acknowledge the reason that 70% of all people over the age of 50 buy the IUL is for the long-term care advantage. IUL plans with a chronic illness rider give you the opportunity to access up to 25% of your death benefit to pay for long-term care. In the event you die without ever having the need to use the long-term care coverage, your heirs still get the death benefit, so there isn't that sensation of paying for something you hope you never have to use. As for his claim that no financial advisors would ever recommend an IUL, there are a number of experts and advisors that support the recommendation of the IUL. Ed Slott, America's IRA expert, is a big fan of cash value life insurance as a part of retirement planning. What Jeremy is really addressing is the number of financial gurus on TikTok claiming that historically only the rich used cash value life insurance to build their wealth. The narrative is clearly false, and it's important to realize that the IUL is not in competition with stock market investments and has some unique features that make it an attractive compliment to tax-free investment strategies. For almost all the millionaires mentioned, there is a case to be made for the IUL in their retirement strategies. 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

Regardless of your age, proximity to retirement, or financial profile, Dave Ramsey recommends the exact same investment allocation: divided equally among four types of funds; growth, growth and income, aggressive growth, and international. Dave's philosophy essentially boils down to investing in the stock market. The Money Guy show did a recent comparison between the Ramsey portfolio and the S&P 500. When the overall market was performing well, they both fared similarly, but the worst periods were considerably worse for the Ramsey portfolio because it's inherently more risky without the surplus returns that would justify the extra risk. The S&P 500 outperformed the Ramsey portfolio in the last 1 year, 3 year, 5 year, and 10 year time periods. Another glaring error is that the Ramsey portfolio does not contain bonds, no matter how far you are from retirement. One tried and true investment approach is to take your age and subtract it from 100. That's how much you should be allocating to the bond portion of your portfolio. Data supports this approach, but Dave feels they don't perform as well as stocks. When examined closely, the statistics don't support that conclusion. The Money Guy show did another comparison showing that the two different approaches have very different results. A 60/40 portfolio doesn't have the highs of an all-stockportfolio, but the lows are where the real risk lies. A bond portfolio ends up taking less risk but earning a greater return over a 22-year timeframe. If you are relying on your investments to support you in your golden years, one bad year in the market can completely derail your retirement. A 100% stock market portfolio exposes you to sequence of return risk that could send your retirement portfolio into a death spiral that it can't recover from. Dave Ramsey's might have some merit if he didn't unequivocally advise against guaranteed lifetime income annuities. With a bit of planning, an annuity when paired with a company pension and Social Security can completely cover your living expenses in retirement. This allows you to earmark your stock market portfolio for extra expenses and also take more risk in the stock market portion of your portfolio. With your lifestyle needs taken care of with this method, you could even remove the bond portion of your portfolio. By allocating 100% of your portfolio to higher yield stocks, you dramatically increase the likelihood your portfolio will last through your life expectancy. Dave Ramsey's one-size-fits-all anti-bond investment approach is contradicted by years and years of academic studies and empirical data. The question is why? The unfortunate truth is that as a financial guru, Dave Ramsey does not have the luxury of nuance and has to dispense one-size-fits-all advice. 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 Come Back America by David Walker

The national debt is fast approaching $32 trillion dollars, nearly double from only a few short years ago. Neither parties are blame-free for the situation we find ourselves in as of 2023. That $32 trillion does not include the unfunded liabilities and obligations that we will be paying for over the next ten years. We got to this point without including the added costs of Social Security, MediCare, and Medicaid. Politicians are facing a situation where they either cut those programs, which is a surefire way to get kicked out of office, or dramatically raise taxes. David Walker predicted that effective tax rates for Americans will rise to 45% by 2030. Right now, the effective tax rate for Americans on average is only 18%. Rising tax rates aren't just speculation, it's in the tax code. The tax rates are scheduled to rise already unless the law is altered. In 2026, the steps between tax rate tiers are going to get much less steep. The trust fund for MediCare is scheduled to go bust by 2027. The trust fund for Social Security is scheduled to go bust in 2032. Many people think we can print our way out of our problems, but that's not going to work with entitlement programs. Rising inflation due to printing money will ensure that we never really catch up with the problem. Historically, the highest tax rate in America was 94%. There is historical precedent for both raising taxes dramatically and cutting expenses. The trouble is that politicians haven't had the backbone in the past to deal with these issues before they become crippling to the economy and average Americans. Further trouble is due to the different circumstances in how we spend money. Unlike in the past, the debt-to-GDP ratio is worse and we are living beyond our means by a considerable margin. We are spending money like drunken sailors and there doesn't seem to be any willpower in Washington to change the direction. Politicians also have the tendency to avoidtelling people what they really need to hear. The Power of Zero strategy is basically the idea of systemically positioning your retirement savings to the tax-free bucket and protecting yourself from the ebb and flow of future tax rates. We could see tax rates rival the 1970's. The Trump Tax Cuts are the tax sale of a lifetime. Most people that David works with are good at saving and find themselves in the 22% tax bracket. By converting up to the 24% tax bracket, those people have much better odds of converting the majority of their savings to tax-free before tax rates rise, possibly for good, once 2030 comes around. 2026 is an important date, but not as important as 2030. People should take advantage of historically low tax rates while they are still around and get their houses in order by 2030. It can be especially challenging for widows in retirement when you factor in how the loss of a Social Security payment can impact cash flow and taxes. Recent changes to inheritance laws are also making legacy planning more difficult. If you delay required minimum distributions from an IRA, there's a good chance you can end up paying way more in taxes than expected. Now is the time to look at your tax plan. The antidote to all these issues is the Roth Conversion. If you die and your spouse inherits your Roth IRA, whatever the tax rates are at the time will no longer be an issue. Roth Conversions aren't the silver bullet. There are other strategies within the Power of Zero that allow you to truly reach the zero-percent tax bracket. Things like the Life Insurance Retirement Plan, Roth IRAs and 401(k)s, annuities, and multiple streams of tax-free income. 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 Come Back America by David Walker 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

There are a number of popular finance YouTube personalities like Graham Stephan talking about how you can be a millionaire by simply contributing $18 a day into a Roth IRA, but that doesn't tell the whole story. Not only is that advice too simple, it doesn't take into account the value of a million dollars thirty years in the future. Inflation will approximately reduce the spending power of that million into $250,000. The 4% Rule says that if you constrain yourself to only taking 4% of your day one retirement balance, adjusted for inflation as income, you have an 86% chance of your money lasting through your life expectancy. When you crunch the numbers, this would mean surviving on $10,000 a year in today's dollars in retirement. You have to be much more aggressive with your investing and saving as a 30 year old person. Instead of just fully funding your Roth IRA as a 30 year old, you could also befully funding your Roth 401(k). By investing $82 a day, your final balance after thirty years would be over $4 million, or roughly $1 million after you factor in inflation. According to a recent Ernst & Young study, if you were to earmark 30% of your retirement savings to cash-value life insurance you could as much as double your sustainable withdrawal rate in retirement. It gives your stock market balance a chance to recover from any down years during the crucial first decade of retirement. Even when you factor in that your Roth IRA and 401(k) will have lower balances, your ability to pay your lifestyle expenses allows you to take 8% distributions from your portfolio in retirement. Because your cash value life insurance is growing safely and productively, it effectively replaces the bond portion of your portfolio. This gives you a permission slip to take more risk in your stock market portfolio and yield a higher overall return on investments. When you factor all that in, with the 8% distribution rate, even with inflation, your distributions in retirement would be closer to the equivalent of $80,000 a year in today's cash value. If you heed these YouTuber's advice, it's a good start but you will end up with very little spendable cash flow in retirement. If you instead up your savings rate and fully fund your Roth IRA and 401(k), while allocating 30% to your cash value life insurance, you can supercharge to your tax-free retirement plan. 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 Come Back America by David Walker 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

Step one of the Power of Zero strategy is to realize that due to unfunded obligations for Social Security, Medicare, and Medicaid and interest on the exploding national debt, tax rates in the future are going to be dramatically higher than they are today. Step two is to understand that in a rising tax rate environment there is an ideal amount of money to have in your taxable and tax-deferred buckets. For your taxable bucket, that's around six months of living expenses. For your tax-deferred bucket, the amount should be low enough that your RMDs in retirement are equal to or less than your standard deduction and low enough that it doesn't cause Social Security taxation. For married couples, that amount is around $350,000, and for single filers, it's half that amount. If you have a sizable pension, the amount could be zero. Step three is to calculate how much time it will take to shift your balances to tax-free in order to achieve those balances. Preferably slow enough that you don't rise into a tax rate that will give you heartburn, but quickly enough that you get all the heavy lifting done before tax rates rise for good. 2030 is currently the target date. Step four is to see if you qualify for the Life Insurance Retirement Plan. With the LIRP, it gives you a death benefit that counts as long-term care and it can greatly extend the life of your stock market portfolio. One of the primary reasons you are paying for your LIRP is being able to access your death benefit if you need long-term care, but if you die peacefully in your sleep your heirs still get the death benefit. Step five is calculating your income shortfall in retirement. Figure out your after-tax needs in retirement that subtract any sources of guaranteed income like Social Security or a pension. Step six is to contribute a portion of your IRA to an annuity in the form of a fixed indexed annuity with the piecemeal internal Roth conversion feature. You want to contribute enough today so that by the time you have finished your Roth conversion it will produce enough tax-free guaranteed lifetime income that it will bridge the shortfall in your after-tax shortfall. 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 Come Back America by David Walker 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

Your LIRP functions as the ideal volatility buffer because it grows safely and productively in a tax-free way. According to a recent study by Ernst & Young, investors that contribute 30% of their retirement savings to a LIRP will have their savings last longer than people who put 100% of their savings into investments alone. This seems to fly in the face of every financial guru who has ever opined about cash value life insurance like Dave Ramsey and Suzy Orman. It's commonly understood that with an investment-only approach to retirement, you build up a large pile of money and take a modest distribution rate each year adjusted for inflation. If you take out higher than 4% per year, you drastically increase the odds of sending your portfolio into a death spiral during down years in the market. The most critical time is the first 10 years in retirement where you can expect two or three down years, any of which can cause your retirement portfolio survival odds to plummet. The LIRP serves as a volatility shield during those first ten years by allowing you to take tax-free loans from the policy during those first ten years of retirement. The LIRP has a few features that make it the ideal volatility shield. You can't combat market risk with an account that is exposed to market risk. LIRPs grow safely and productively. LIRPs in the form of universal indexed life insurance have a historical track record of 5% and 7% net over fees over time, making it easy to accumulate the amount of capital you need to shield yourself from volatility. LIRPs are tax-free. If you don't have to pay taxes during the accumulation and distribution phase, your money will grow more efficiently and you won't have to save as much money along the way. If you can take distributions tax-free, you aren't exposing yourself to tax rate risk and those distributions don't count as provisional income. If your LIRP is fully funded from day 1 of retirement, you will be in a position to pay for lifestyle expenses during the years following a down year in your stock market portfolio. According to the study, if you contribute 30% of your retirement savings to an LIRP you will find that your sustainable distribution rate skyrockets to as high as 8%. The study made a statistical case that shows the LIRP can extend the life of all your other investments significantly. The most viable retirement strategy is the one that gives you the highest likelihood that your retirement savings will last through life expectancy. 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

The biggest issue with Dave Ramsey's view on Roth Conversions, and most of his advice in general, is his one-size-fits-all approach which costs his listeners hundreds of thousands of dollars. Dave starts off on the right foot by recommending people pay the taxes up front for a Roth Conversion but then veers off the track pretty quick. Dave breaks down a hypothetical married couple filing in 2020 doing a Roth Conversion, but makes the mistake of conflating the 24% tax bracket as a trap of the Roth Conversion strategy. If you have more than a million dollars in your IRA, you will never convert to Roth before tax rates go up for good without taking advantage of the 24% bracket. Dave then goes on to say that you should never do a Roth Conversion unless you have money sitting in cash to pay the taxes. If Dave's advice were taken by everyone, only 5% of people would realistically be able to take advantage of the Roth Conversion. Some scenarios require you to pay cash for your Roth Conversion, but that's not the only choice you have. If you don't have the cash to pay the taxes on your Roth Conversion, there is no harm in having the IRS withhold the tax from the Roth Conversion itself. It's not optimal, but it's far better than the alternative of leaving your money in your IRA and watching tax rates double over time. Dave identifies the Five Year Rule on the Roth Conversion, but he fails to tell people that if you are older than 59 ½, the penalty won't apply to you. This leads people to believe the rule of thumb is everyone should avoid the Roth Conversion unless you are five years or more away from retirement. Dave Ramsey's explanation of Roth Conversions is disastrous at every turn. All three of his recommendations are almost completely backwards. When it comes to making important decisions about your retirement plans you should avoid financial gurus like Dave Ramsey at all costs. 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