The Power Of Zero Show

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