The Power Of Zero Show

David and Mark Byelich talk about why people don't want to pay a tax before the IRS absolutely requires it of them. David touches on the 2018 documentary The Power of Zero: The Tax Train is Coming. Mark Byelich explains that the longer someone hasa tail of the overage in their IRA hanging out there, the more risk they have. Mark discusses what happens in financial planning when people ease. When it comes to people around the country, the initial tax payment is typically the thing that's really hard to get over. David shares what tends to occur when people get over the "shock" of paying that initial tax. Mentioned in this episode: David's upcoming book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track 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 Mark Byelich The Power of Zero: The Tax Train is Coming Doug Orchard George Shultz Ed Slott

Today's episode is part of David's interview with Mark Byelich. David and Mark address Mark's concept of "suddenly single". David once met an Uber driver who had saved $1.5M. All financial advisors gave him the same advice "don't change anything" but David had something different to share. A Roth conversion is something married couples should consider to avoid being automatically catapulted into the 22% or 24% tax bracket if one spouse dies. David breaks down the thought process behind considering a Roth conversion even if you feel like you've done everything right. Mark and David touch upon the potential challenges of inheriting an IRA from your parents – and the two types of people who typically inherit them. You may think "I'm never going to be in any bracket other than the 10% or 12%". But think about what would happen to your heirs if you passed away, says David. David sees the Roth conversion as the single greatest tool that's available to you today to be able to maximize the amount of money that your kids are going to be able to spend. Mentioned in this episode: David's upcoming book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track 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 Mark Byelich

This episode addresses the 8-step plan for a successful retirement plan that was recently shared by Dave Ramsey's "sidekick," George Kamel. Just like in any field of life, a good financial plan benefits from assessing where you are, where you want to be by a given date, and what needs to be done to get there. David dislikes the approach of painting everything with a broad brush and characterizing niche financial planning principles in broad, one-size-fits-all financial planning terms. That's what, in his opinion, many so-called "financial gurus" like Dave Rasmey tend to do. David mentions his upcoming book, The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back On Track. George Kamel has found that 8 out of 10 millionaires have reached their millionaire status by investing in their company's 401k plan. David shares his philosophy: "If you're in a 24% bracket or lower, opt for the Roth 401k. If you're in the 32% bracket or higher, stick with the traditional 401k." David contradicts Kamel and explains that the reason you invest in a Roth IRA is because you think that your tax bracket in retirement is likely to be higher than it is today. For David, when it comes to millionaires who have paid off their homes, it's important to distinguish between causation and correlation. A problem with Kamel's view on Social Security is that Social Security is likely to never go away. What may happen, says David, is that the retirement age will be changed. Kamel and David are in agreement: investing is a marathon, not a sprint – and it isn't for the faint of heart. According to an April 2024 study by Dalbar, investors continue to be their own worst enemies when it comes to saving for retirement. Except for step 5, David sees George Kamel's 8-step plan as a pretty sound solution. Mentioned in this episode: David's upcoming book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track 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 George Kamel David M. Walker Dalbar's QAIB

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