The Power Of Zero Show

Today’s video comes from David’s interview with Dave Christy. They discuss how life insurance and annuities can help maximize your retirement.  They start by describing the three different ways cash value life insurance can positively impact your financial plan.  David reveals how IULs can be an excellent replacement for the bond portion of your portfolio.  David explains why most people get heartburn when they think about paying for traditional long-term care.  David goes over the unique aspects of cash value life insurance--if you ever need long-term care, the insurer will start paying your benefits in advance of your death to pay for long-term care.  David covers how cash value life insurance can extend the life of your investments when it comes to sustainable withdrawals in retirement.  According to David, the problem with the 4% Rule is that it's an expensive way of mitigating longevity risk.  David describes how cash-value life insurance works and why it's an excellent volatility shield in retirement. When you utilize cash value life insurance, annuities, and traditional investing together, you will yield higher income in retirement than any other alternative.  Dave defines prudent asset allocation and how to use it to protect your retirement. They both agree that the number one rule to being a successful investor is to not sell things when your investments are down.  For David, every investor should aim to accumulate three to five years worth of living expenses in their cash value life insurance by day one of retirement.  The IUL is not a stock market replacement. But it will give you more productive returns than a whole life policy.     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 video is part three of David’s interview with Dave Hall. They discuss whether Trump will extend the tax cuts if re-elected.  David cites a recent report from the Committee for a Responsible Federal Budget that says that if they extend the tax cuts, the government will have to borrow $5 trillion to pay for those tax cuts.  David explains why he doesn’t see another tax cut happening without a commensurate reduction in spending.  David tackles people’s assumptions that tax cuts can stimulate enough economic growth to be able to pay for themselves. Dave and David agree that more people are starting to come to terms with the fact that taxes will go up in the future.  David explains why individual investors need to be realistic about the types of tax rates they're likely to pay down the road.  David shares his thoughts on whether the Inflation Reduction Act was successful in bringing inflation down and cutting government spending.  Why you need to take advantage of historically low tax rates today and protect your retirement before tax rates go up for good.  David covers the benefits of taking advantage of historically low tax rates while they're still around and why you need to get your savings systematically repositioned to tax-free. Dave talks about doubling taxes and how they could easily ruin retirements that would have otherwise worked out well. Politicians are in the business of getting re-elected. That is their number one job. You may think their number one job is to represent you, but their number one job is to get re-elected.     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 2 of David’s interview with Dave Hall. David shares his thoughts about moving the retirement age to what it currently is. Dr. Larry Kotlikoff has suggested raising taxes to 4% – 2% on the employee and 2% on the employer – as a way to solve the issues around Social Security. David sees the combination of pushing back the retirement date and increasing revenue as a valuable avenue to tackle the Social Security issue. Dave and David talk about the current and future state of Medicare.  Medicare is the largest of the three programs that constitute the $239 trillion underfunding. David touches upon David Walker’s answer to the question “Do you foresee a future in which they could raise income taxes to pay for that underfunding?” States like California and Washington are concerned about the future viability of their Medicare programs because of all the long-term care needs the country has. There’s a 70% chance that, among spouses, one will end up needing long-term care. David unpacks the potential repercussions of that.     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 Hall Dr. Laurence Kotlikoff Suze Orman David M. Walker

Today’s episode is part 1 of David’s interview with Dave Hall. David shares what he considers the fundamentals of his financial movement: “numbers don’t lie.” David cites a recent Penn Wharton study that illustrates two things that should be done by 2043 – and what will happen if these conditions aren’t met. Dave and David discuss the debt-to-GDP ratio, and why debt isn’t the problem. According to experts, when the debt-to-GDP gets past 75% it’s when there’s an eroding influence on your economic output over time. Dave and David go over when they started to track the $21 trillion dollar debt situation and related aspects. There’s a demographic “time bomb” and it will have an impact on Social Security, Medicaid, and Medicare.  David talks about the big inverted pyramid, its relation to benefits, and the increasing tax rate forecast. Medicare is five times more expensive than Social Security, making it a harder thing to fix.     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 Hall Comeback America and America in 2040: Still a Superpower? by David Walker Penn Wharton Bill Gates David Walker’s interview with David McKnight David Walker’s Interview on 60 Minutes

Today’s video is part four of David’s interview with the co-founder of Power of Zero, Larry DeLegge. They discuss whether AI will replace financial advisors and if Congress will take away the tax advantages of cash value life insurance. According to David, financial planning is more of an art than a science. This is why he is not all that convinced that AI has the capabilities to successfully handle people’s unique and complex financial situations.  2043 will be a big year for our country. Once we hit a 200% debt to GDP, no combination of increasing taxes or reducing spending will arrest the fiscal collapse of our nation. David breaks down the options and solutions we still have to put our country back on a sustainable fiscal path.  David shares his thoughts on whether Congress will change the rules on cash value life insurance.  The book, Power of Zero, works best for people who have already accumulated money and are looking for ways to wring the most efficiency out of their savings while shielding themselves from the impact of higher taxes.  David reveals that his next book will target the younger generation--the people in their 20s, 30s, and 40s.  David agrees with Harrison Young’s famous saying that the people who contribute 30 percent of their retirement savings to cash value life insurance take much more income in retirement than people who do investments alone.  David shares why he believes financial advisors need to redeem life insurance and tax-free planning principles by teaching the principles to the younger generation. If you're going to write a book, find some good stories and make those stories the centerpiece of what you're trying to drive home. That’s how you write a good book. David’s advice for people looking to write a book on finances: don't ever start a book with your own personal story. Start your book with a story that will grab your reader’s attention and then keep them for the rest of the 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 Tom Hegna's Who Wants to Be a Millionaire? By Tom Hegna

Today’s video is part two of David’s interview with Larry DeLegge, the co-founder of Power of Zero. They discuss the tax bracket you should avoid when doing a Roth conversion. They start the conversation by describing why it’s a no-brainer to pay your taxes today at 22 or 24% marginal rates. Instead of rushing to complete Roth conversions by 2026 and potentially bumping into higher tax brackets, David suggests stretching the conversions over several years. After 2026, the tax brackets are expected to increase, with the 22% bracket becoming 25% and the 24% bracket becoming 28%. However, these brackets are still lower than the higher brackets (32%, 35%, 37%) that one might be forced into if they rush the Roth conversion. David reveals why he advises people to do Roth conversions but only follow a restrained approach to Roth conversions.  David talks about the ideal balance for saving money in taxable, tax-deferred, and tax-free buckets.  What will happen to standard deductions come 2026? David is not worried about the standard deduction. He explains that standard deductions will be around for the foreseeable future, and there are no indications of the government getting rid of them.  For David, it’s more prudent to plan for higher taxes than to speculate on the complete elimination of the standard deduction. All financial advisors agree that tax rates will be significantly higher in the future, which supports the strategy of paying taxes now at lower rates. Should people use cash to pay tax on Roth conversions now, or should they contribute it to a Roth 401(k) now? David’s advice is for people to go with the Roth 401K.      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 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