Podcasts about secure retirement

Sitting-in for Thom Hartmann is guest-host Alex Lawson, Executive Director of Social Security Works Alex talks with Jeff Cruz, Executive Director of Latinos for a Secure Retirement, about ensuring the Latino community is fully informed on benefits they are entitled to. Also Brock Butler, Musician and Progressive Activist brings inspiration to politics.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

David McKnight discusses the Woman's World article Suze Orman Reveals When to Buy an Annuity - and the One Question You Must Answer First. For years, Orman has warned investors away from annuities, often lumping them into the category of expensive financial products that enrich salespeople at the expense of consumers. David has been surprised by what the current views of Orman appear to be, completely in line with what David has been preaching for years. Orman's analysis begins with a key consideration: annuities can be a helpful tool in retirement, but whether they make sense for you depends on one key factor: your income needs. In the Woman's World article, Orman writes that the first step is to figure out how much money you need each month to cover your essential expenses. Next, you should look at your guaranteed income sources like Social Security, a pension, rental properties, interest, or dividends. David paints out the scenario in which you get permission to take more risk in the stock market portion of your portfolio. A recent BlackRock study showed that people whose living expenses are guaranteed spend 22% more than those who rely on their stock market portfolio alone in retirement. David talks about what he refers to as a "piecemeal internal Roth conversion feature" and why it may be a beneficial asset. David sees Orman's approach as short-sided for the fact that guaranteed lifetime income isn't the only mathematically appropriate use of annuities. True, most retirees own bonds because they want stability, but bonds do come with reinvestment risks, interest rate risks, inflation risks, and often low long-term returns. David explains what would happen if you reached into your portfolio, removed bonds, and replaced them with an annuity. According to David, the conversation needs more nuance because "not all annuities are created equal". Remember: retirement planning isn't about one-size-fits-all financial advice; it's about creating a customized approach that will help you wring the most efficiency out of your retirement savings.     Mentioned in this episode: David's new book: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Suze Orman Woman's World article - Suze Orman Reveals When to Buy an Annuity - and the One Question You Must Answer First  BlackRock Ken Fisher

In this episode, David McKnight addresses one of the biggest myths in retirement planning: once you retire, you need to dramatically reduce your exposure to stocks. The reason why most financial advisors recommend reducing stock exposure in retirement has very little to do with stocks and everything to do with sequence of returns risk. Sequence of returns risk is what happens when you're forced to withdraw money from your investment portfolio during a market downturn. If the market falls 30% and you're simultaneously taking withdrawals to pay for your living expenses, you're locking in losses and permanently impairing your portfolio's ability to recover. According to David, the way to solve this problem is by ensuring that your essential expenses are covered before you ever retire. When you're at least five years out from retirement, David believes that one of the most important decisions you can make is to create the so-called income floor. An income floor is a guaranteed stream of income that covers your basic living expenses regardless of what the stock market is doing. The volatility shield adds a second layer of protection that has to do with discretionary expenses (e.g., a trip around the world, taking the grandchildren to Disney World, etc.). Suze Orman has controversially recommended that retirees keep 3-5 years' worth of living expenses in a savings account, so they don't have to sell investments during a market downturn. While David agrees with the concept, he doesn't see savings accounts as the most efficient place to put that money in. Instead, he'd rather have retirees accumulate that money in a completely separate account (a volatility shield) – which, unlike a savings account, has the potential to grow 5-7% net fees over time. Looking for an alternative volatility shield? Look at cash value life insurance in the form of indexed universal life (IUL), says David. An Ernst & Young study found that retirees who included the volatility shield strategy and a guaranteed lifetime income annuity in the retirement plan were able to dramatically increase the sustainable withdrawal rate on their investment portfolio. Since the early 1990s, the gold standard on sustainable withdrawal rates has been 4%. The 4% Rule says that if you withdraw approximately 4% of your portfolio each year, there's a reasonably high chance that your money will last a full 30-year retirement. However, when retirees had access to a volatility buffer and could avoid taking distributions following market downturns, sustainable withdrawal rates increased dramatically (in some scenarios, up to 8%). David is a believer of the fact that the portfolio that got you into retirement can also take you through retirement – with a recommended 70% in U.S. stock market index funds and 30% in international stock market index funds. For David, the reason why this approach works well is that, with it, you solve the two biggest issues in retirement: income and volatility. Moreover, if you can position these assets inside tax-free accounts through strategic Roth contributions and Roth conversions, you gain protection against yet another threat, tax rate risk. David concludes by stressing that it is not that the buy-and-hold strategy doesn't work, it's that most retirees don't have the protection tools necessary to stay committed to the strategy when markets become turbulent.     Mentioned in this episode: David's new book: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Suze Orman Ernst & Young

David McKnight kicks this episode off by explaining how, for decades, conventional financial wisdom has been saying that, as you approach retirement, you should begin dialing down your stock exposure and increasing your bond allocation. A 60-year-old, for example, would have 40% of their portfolio in stocks and 60% in bonds.  Historically, bonds served three primary functions: They provided income, they reduced portfolio volatility, and they protected retirees from so-called sequence of returns risk. David touches upon how the sequence of returns risk works. Retirees who get hit early often run out of money earlier – in some cases, even 15 years prior to life expectancy. The old approach to retirement planning assumes that bonds could provide meaningful returns while still acting as a stabilizer. However, recent years have shown that bonds are not risk-free. Back in 2022, for instance, the Bloomberg U.S. Aggregate Bond Index lost 13%. Long-term treasuries did even worse, as many lost between 25 to 30% due to rapidly rising interest rates. David stresses that an annuity can do something bonds cannot do: It can guarantee income that you cannot outlive. It's important to realize that whenever your basic living expenses are covered, something profound happens psychologically: You stop depending on your investment portfolio to solve every problem. Furthermore, you feel as if you now have permission to spend. Studies show that those who have guaranteed lifetime income spend 22% more than those who rely strictly on a stock bond portfolio. A properly funded IUL can create a pool of tax-free money that's insulated from stock market loss and available during downturns. David unpacks a strategy that can increase the sustainable withdrawal rate on your stock portfolio from 4% to as high as 8% with a 95% success rate. When you combine guaranteed lifetime income from annuities with a volatility shield in the form of IUL, you are no longer reliant on bonds, says David. He also touches upon why retirees who adopt the no-bond power of zero approach begin to take a lot more risk in their stock market allocations. David wraps things up by sharing insights on what retirees should think about and do to increase the likelihood that, in retirement, their money will last as long as they do.     Mentioned in this episode: David's new book: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Bloomberg U.S. Aggregate Bond Index

A recent landmark study from BlackRock caught David McKnight – he shares what it was all about and why you should care in this new episode of the Power of Zero Show. For decades, Americans were told that if they simply contributed faithfully to their 401(k) and avoided emotional decisions during market downturns, they would have enough money in retirement. According to the BlackRock study, retirees who incorporated guaranteed lifetime income in the form of an annuity into their retirement portfolio experienced an average increase of 22% in potential retirement spending. That number became approximately a 25% increase for lower income retirees! The increase came primarily from giving retirees greater confidence to spend money because a portion of their retirement income was guaranteed for life. David explains that, while 30 or 40 years ago retirees could rely on company pensions that provided predictable monthly income for life, the modern retirement system has shifted enormous responsibility onto the shoulders of ordinary Americans. Employers used to bear the responsibility for generating the income stream and ensuring that retirees did not outlive their money.  Today, however, pensions have all but disappeared, and most Americans now rely on 401(k) or other tax-qualified retirement plans. One of the big problems is the fact that such tax-affirmed accounts can help you build wealth, but don't come with instructions on how to make sure your money lasts a full 30-year retirement. The BlackRock study echoes something that David has stressed several times on the show: retirees spend more when at least a portion of their retirement income is guaranteed. David clarifies that when he talks about guaranteed lifetime income, he does not suggest retirees place all of their assets into annuities or eliminate market exposure altogether. David talks about 100% stock allocation and why you can be much more aggressive in your stock market allocation once you create an income floor in retirement. The current status quo of the American fiscal system – and exploding national debt – appears to be painting a picture where future tax rates will be significantly higher than they are today. David is a strong advocate for tax-free investment accounts in retirement. In particular, he points to six different tax-free income streams: Roth IRAs, Roth 401(k)s, Roth conversions, RMDs up to standard deductions, certain types of cash value life insurance as a volatility shield in retirement and, if you can keep your provisional income low enough, your Social Security can be 100% tax-free. David touches upon a strategy that can give you guaranteed tax-free income for life. The old retirement model gave Americans confidence through company pensions. The modern model requires retirees to create their own personal private pension in the form of an annuity. It's important to understand that retirement isn't just about accumulating wealth, but also about creating a stream of lifetime income that's guaranteed to last as long as you do. David concludes by explaining what retirement planning should accomplish beyond merely maximizing account balances.     Mentioned in this episode: David's new book: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com BlackRock BlackRock's paper Who Benefits From Guaranteed Lifetime Income?

Today's episode of The Power of Zero Show revolves around a question host David McKnight gets asked all the time: "Should I still be doing Roth conversions in my 60s, even if I'm already retired?" In short, David believes that you should not only do a Roth conversion in your 60s, it's actually one of the most optimal times in your entire life to do it. When doing a Roth conversion, you're choosing to pay the IRS its portion of your IRA now, on your terms, instead of paying it a much larger portion later, on their terms. That's why Roth conversions don't only make sense for younger people but for retired folks too. Remember: with Roth conversions, you're not catching up because you're not behind. You're locking in a lower tax rate today to avoid a much higher tax rate down the road. David explains why the so-called "retirement income valley" is a strategically perfect time to do a Roth conversion. The 32% tax bracket is David's least favorite tax bracket, which he recommends avoiding at all costs when doing Roth conversions. David touches upon the Penn Wharton Budget Model and why 2040, or so, will be the do-or-die date for these matters. What if you don't have extra cash sitting around? Would you still need to pay the taxes on your Roth conversion out of pocket? David illustrates what you can do if you find yourself in that situation. David goes over why you should want to get as much of your IRA into Roth as you possibly can – and what's the beauty of doing that in your 60s.     Mentioned in this episode: David's new book: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Congressional Budget Office Penn Wharton Budget Model

David McKnight unpacks the five most common objections to Roth conversions and why they simply don't hold up under scrutiny.  The first objection has to do with people not wanting to voluntarily pay taxes before the IRS requires them to. While on the surface, postponing this may sound logical, it ignores a fundamental aspect: the state of the U.S. national debt. It has just passed $39 trillion, and it's slated to grow by $2 trillion per year for the next 10 years, and $3 trillion after that. In other words, interest on the national debt is becoming one of the largest line items in the federal budget.  That means that by refusing to pay taxes today, you're making an insanely risky bet that taxes in the future will be lower than they are right now. All, while your IRA keeps growing and compounding over time. Thus, 10 years from now, not only could tax rates be higher, but your required minimum distributions could be dramatically larger. The second most common objection to Roth conversions revolves around people saying, "If I do Roth conversions, that additional income will force me to pay increasingly higher levels of IRMAA or cause my Social Security to be taxed." David points out that Roth conversions do increase your taxable income, which can trigger those additional expenses during the conversion period.  However, while it's true that you'll pay IRMAA and Social Security taxation in the short term, you'll get rid of those additional expenses for the rest of your life once your conversion period is over. Objection #3 is "There's too much opportunity cost, I won't have time to make up for the taxes I paid".  David explains that, despite sounding sophisticated, this objection is based on a flawed premise. Your IRA is a "business partnership" with the IRS – and every year they get to vote on what percentage of your profits they get to keep. So, when you do a Roth conversion, you're not losing money. You're simply buying out your "silent business partner" at today's historically low tax rates. David highlights that, if taxes double in the future, you'll be glad you bought them out while taxes were still on sale. The fourth objection – "In retirement, I'll be in a lower tax bracket" – is actually one of the most dangerous assumptions in all of retirement planning. People assume that when they retire, their taxes automatically go down. For many Americans, the exact opposite happens, though. Once required minimum distributions kick in, they can force huge amounts of taxable income onto your tax returns. David touches upon an additional issue almost nobody talks about: the so-called widow's penalty. The fifth objection to Roth conversions revolves around the question, "Won't the federal government tax Roth IRAs sometime down the road?" People don't realize that the government loves Roth IRAs because they generate tax revenue today – unlike traditional IRAs, which delay tax revenue. That's why, every time Congress needs money, they tend to pass legislation that makes Roth accounts even more attractive. Remember: Roth conversions are about taking advantage of the tax sale of a lifetime before catastrophic levels of debt force tax rates higher.     Mentioned in this episode: David's new book: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com

Most business owners are doing one of two things at tax time, and both are costing them. Either they are leaving real deductions on the table, or they are chasing every write-off they see online and putting their business at risk. In this episode of CEO Numbers Network, I walk through the tax strategy mindset shift that separates business owners who feel ready at tax time from the ones who scramble. I share the story of a client whose previous accountant told her to spend down her cash to lower her tax bill, which left her taking on massive debt right before opening a new store. I cover what actually counts as a deduction, the categories most owners forget, and the strategies that get abused online. You will walk away with a clear filter for every business expense and a better understanding of how tax decisions impact the long-term value of your business. You will learn what makes a business expense ordinary and necessary, how to spot the tax advice that puts your business at risk, and the strategic deductions most owners overlook. If you have ever felt unsure about what you can deduct, worried you are missing something, or pressured to spend money just to lower your tax bill, this episode will help you take ownership of your tax strategy and build a business that holds its value.  

Most business owners are doing one of two things at tax time, and both are costing them. Either they are leaving real deductions on the table, or they are chasing every write-off they see online and putting their business at risk. In this episode of CEO Numbers Network, I walk through the tax strategy mindset shift that separates business owners who feel ready at tax time from the ones who scramble. I share the story of a client whose previous accountant told her to spend down her cash to lower her tax bill, which left her taking on massive debt right before opening a new store. I cover what actually counts as a deduction, the categories most owners forget, and the strategies that get abused online. You will walk away with a clear filter for every business expense and a better understanding of how tax decisions impact the long-term value of your business. You will learn what makes a business expense ordinary and necessary, how to spot the tax advice that puts your business at risk, and the strategic deductions most owners overlook. If you have ever felt unsure about what you can deduct, worried you are missing something, or pressured to spend money just to lower your tax bill, this episode will help you take ownership of your tax strategy and build a business that holds its value.  

David McKnight dissects a topic that causes a lot of confusion for retirees and pre-retirees: How  Roth conversions affect social security taxation and Medicare premiums (IRMAA). Some warn against Roth conversions in retirement as they can cause your Social Security to become taxable and could also raise your Medicare premiums. While that's true, David believes that the long-term benefits of Roth conversions can far outweigh the temporary, short-term pain they can cause. In order to determine whether your Social Security benefits will be taxed, the IRS tracks the so-called provisional income. If you perform a Roth conversion after you begin collecting Social Security, that additional income can push you above certain thresholds that cause your Social Security benefits to become taxable. Medicare premiums are also influenced by your income through IRMAA (Income-Related Monthly Adjustment Amount), and they look at your income from two years earlier to determine your IRMAA bracket, Remember: A Roth conversion today could trigger higher Medicare premiums two years from now.  David also explains that Roth withdrawals are not included in provisional income. Not only do they not cause your Social Security benefits to become taxable, but they also do not count towards the income thresholds that trigger higher Medicare premiums. As David points out, with the approach discussed in this episode, you're essentially compressing the tax pain into a few years, so you can enjoy decades of tax-free income later on. The national debt continues to spiral out of control to the point where economists are now predicting massive tax increases within the next 10 to 20 years. If such predictions are accurate, the people who will benefit most are those who have already shifted large portions of their retirement savings into tax-free accounts like Roth IRAs. By performing Roth conversions today – while tax rates are historically low – you're effectively locking in today's tax rates and protecting yourself from the possibility of much higher rates down the road. When talking about Roth conversions affecting Social Security taxation and IRMAA, we have to remember that those impacts are temporary, while the tax-free benefits can last for the rest of your life. David touches upon two reasons why it may make sense to delay taking Social Security while you're performing Roth conversions. Increasing the likelihood that your money will last as long as you do should be the #1 goal of every retirement plan.     Mentioned in this episode: David's new book: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com

David McKnight addresses one of the biggest threats to your retirement plan: sequence of returns risk. Are you retired or within 10 years of retirement? Sequence of returns risk may be the single most important concept you need to understand if you want to ensure your money lasts as long as you do. Sequence of returns risk refers to the danger of experiencing a market downturn early in retirement while you're simultaneously taking withdrawals from your portfolio. David explains why this risk is most dangerous during your first 10 years of retirement. Early in retirement, your money still needs to last 20 to 30 years – an early blow to your portfolio can significantly impact its ability to do so. To defend yourself in the most dangerous decade of retirement, you need an account that allows you to avoid touching your stock portfolio until the market has recovered. The reason for that is that, historically, most market downturns take 3-5 years to recover back to their previous peak. David discusses the 4% Rule and the "catch" that comes along with it. Some experts, like Suze Orman, recommend having 3-5 years' worth of expenses accumulated in an emergency fund. David goes over why it may not be a good idea.  David brings Indexed Universal Life insurance (IUL) and the concept of volatility buffer into the conversation. Remember: if you're within 10 years of retirement, now is the time to start thinking seriously about how you'll create a volatility buffer.     Mentioned in this episode: David's new book, available now for pre-order: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Suze Orman

Marty discusses essential retirement planning strategies, tax considerations, legacy transfer, and adapting to new retirement realities. Learn how to optimize your finances for a secure and fulfilling retirement. Reach Marty at 888-519-9096 Smart Money SolutionsSee omnystudio.com/listener for privacy information.

David McKnight breaks down the approach he would follow if he were to invest a $2 million 401(k) in retirement. David points out that when you retire, you're no longer just investing for growth; you're investing for income.  Remember: If you get this wrong, you don't get a do-over. In the case David discusses, many financial advisors would recommend investing the $2 million in the market and withdrawing whatever your lifestyle requires. The problem with that way of doing things, however, is the exposure to the sequence of returns risk. If the market crashes early in retirement and you're pulling money out at the same time, your portfolio could go into a death spiral from which it never recovers. The main trap those planning their retirement and retirees should avoid is running out of money before running out of life. David touches upon the role that a guaranteed lifetime income annuity plays in retirement planning. As far as annuities are concerned, he's in favor of annuities that have what he refers to as "piecemeal internal Roth conversion feature." That means being able to gradually convert that annuity from tax-deferred to tax-free during the annuity's deferral period. David recommends investing discretionary funds with the following ratio: 70% in a total U.S. stock index, 30% in a total international stock index. He would automatically rebalance if his allocations ever got more than about 5% out of alignment. The reason why David's approach lacks bonds is simple: if your portfolio goes down in your retirement years, your guaranteed lifetime income gives you the luxury of watching it recover before you take further distributions. Long-term care is a piece of the strategy that most advisors completely ignore – David explains why it shouldn't be overlooked. Moreover, the cash value inside that policy can also act as a volatility buffer. David brings up a move that can increase the sustainable withdrawal rate on your stock portfolio from 4% to as high as 8% with a 95% confidence rate. "I believe we're currently experiencing the lowest tax rates we're likely to see in our lifetime," says David. Many experts believe that by 2035, when the debt-to-GDP ratio will hit about 150%, the Federal Government would have to begin phasing in tax increases over time to avoid an all-out economic crisis. That's why David would like to convert his IRA to Roth, little by little, over the next 10 years in the most tax-efficient way possible. David provides a bird's eye view of the entire strategy, which by his own admission, "checks every single box." An Ernst & Young study looked at this type of strategy combining investments with insurance-based solutions like annuities and life insurance – David discusses its findings. "I'm proposing a strategy that gives you certainty where you need it most, your income and tax-free flexibility everywhere else," he adds.  Such an approach allows you to neutralize longevity risk and tax rate risks all in one cohesive strategy.     Mentioned in this episode: David's new book, available now for pre-order: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Ernst & Young

David McKnight explores the so-called "22% Roth conversion mistake," which he considers a common and costly mistake when it comes to Roth conversions. He points out that, despite Trump tax cuts being made permanent with the passage of the One Big Beautiful Bill Act in July 2025, tax rates can change at any time with a simple act of Congress. That's why he refers to this as a "temporary permanent tax cut." The $200 trillion underfunding of entitlement programs and the exploding interest on the national debt makes it clear that tax rates are unlikely to stay this low for long. Many Americans currently find themselves in the 22% bracket and refuse to bump into the 24% bracket for Roth conversion purposes – because they've been told to stay in their current bracket. However, if you stay in the 22% bracket, you are unlikely to be able to convert a meaningful amount of your IRA to Roth before tax rates go up for good. David shares an example that illustrates why, by trying to save a little bit on taxes today, you actually set yourself up for a massive tax bill down the road. The other scenario – where you allowed yourself to rise into the 24% bracket – buys you the ability to convert a lot more money every single year. Even though most people would be willing to pay 2% more in taxes today if it meant avoiding potentially much higher tax rates in the future, most people don't consider this option.  That's because they have been conditioned to believe that any move into a higher tax bracket during the Roth conversion period is inherently bad… 10 years from now, you are probably going to look back at the 24% tax bracket as a good deal of historic proportions… Remember: you are not trying to minimize taxes this year, you are trying to minimize taxes over the rest of your life. For David, you shouldn't let the 22% Roth conversion mistake keep you from fully insulating your hard-earned retirement savings from the impact of future higher taxes. The goal, he reminds everyone, should be to get to the 0% tax bracket in retirement.     Mentioned in this episode: David's new book, available now for pre-order: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com One Big Beautiful Bill Act

Paul Merriman sits down with Larry Swedroe — author of 22 books and one of the most respected voices in evidence-based investing — for a conversation that covers everything from the five factors that actually matter to why Bitcoin might go to zero.Larry explains why judging your investment decisions by their outcomes is one of the most dangerous mistakes you can make, lays out the academic criteria he uses to separate real factor premiums from data mining, and reveals that he's made only three tactical moves in 30 years of investing. He and Paul use three eye-opening slides to show why chasing recent winners almost guarantees you'll underperform.They also dig into why growth stocks don't deliver the returns most people expect (hint: the growth rate is already in the price), why traditional index funds are "dumb traders" bleeding money to hedge funds, and how AI will make markets harder to beat — not easier.The audience Q&A covers emerging markets, the updated "Larry Portfolio," crypto, private equity, and which fund families Larry actually trusts with his own money.Part of the Spring Financial Education Series hosted by the Bainbridge Community Foundation in partnership with the Merriman Financial Education Foundation.LINKS & RESOURCES:  "Enrich Your Future" — Larry Swedroe  "Your Complete Guide to Factor-Based Investing" — Larry Swedroe & Andrew Berkin  "Your Complete Guide to a Successful and Secure Retirement" — Larry Swedroe  Larry Swedroe on Substack: https://larryswedroe.substack.com  The Hidden Flaw in Style Index FundsThe Hidden Costs of Index Replication: What Every Investor Needs to Know AboutAdverse Effects of Index ReplicationWatch the video here.Coming up in this series: Christine Benz (Morningstar), Mike Piper, and Bill Bernstein.

David McKnight discusses the three biggest retirement planning mistakes that show up over and over again. Avoiding them will dramatically increase the likelihood that your retirement savings will last as long as you do.  Mistake #1 pertains to over-accumulating in tax-deferred accounts like 401(k)s and IRAs – a mistake that surprises many people as they feel they're doing everything right. The problem here is that you're taking a deduction at historically low tax rates only to postpone the payment of those taxes to a point in the future where tax rates are likely to be much higher than they are today. The moment you hit age 73 or 75, Required Minimum Distributions (RMDs) kick in. In other words, the IRS is forcing you to take money out, whether you need it or not. Those RMDs get combined with all your other sources of income: The taxable portion of your social security, your pension(s), and your investment income. David notes that, before long, you can find yourself in a higher tax bracket in retirement than you were during your working years. Remember, RMDs count as provisional income, which can cause up to 85% of your social security to become taxable – plus, it can trigger IRMAA surcharges on your Medicare premiums too. Building a retirement plan that is almost entirely tax-deferred looks good on paper but leaves you entirely exposed to the impact of higher taxes in the future. The second mistake is waiting too long to execute Roth conversions. David touches upon the so-called "retirement income valley," the ideal window within which to fully execute your Roth conversion. Many people ignore it. They're hesitant, reluctant to pay a tax to the IRS before it's absolutely required of them. Failing to take advantage of the "retirement income valley" puts you at risk of having your social security become taxable, while also paying higher Medicare premiums for the rest of your life. When it comes to Roth conversions, David recommends having a "rip the band-aid off" approach.  It may hurt a little during the conversion period but once that money is in the Roth bucket, it's tax-free for the rest of your life. The third big mistake David sees over and over again is underestimating future tax rates and overestimating your control over them. Most retirement plans today are built on the dangerous assumption that tax rates in the future will look a lot like they do today. However, David stresses that looking at the fiscal trajectory of our country paints a different picture. The national debt will grow by $2 trillion per year over the next 10 years, and $3 trillion per year after that. With the rising interest costs and $200 trillion in unfunded obligations for Social Security, Medicare and Medicaid, there will be a financial day of reckoning where tax rates will be forced higher. David predicts that to be around 2035 – which gives you around 10 years to plan and execute on your plan. People spend their entire lives focusing on building as big a retirement nest egg as possible, but they give almost no thought to the type of accounts within which that nest egg is being built. The lack of consideration for the tax implications upon distributions is a huge oversight, says David.  At the end of the day, the only thing that really matters in retirement is how much money you get to spend after taxes. David concludes by highlighting that the best way to regain control over your after-tax income retirement is to pay taxes on it preemptively at historically low tax rates and on your terms (rather than on the IRS' terms).     Mentioned in this episode: David's new book, available now for pre-order: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com

Sleep soundly knowing your future is bright. These affirmations focus on long-term prosperity and retirement security, helping you release fear about the years to come. Unwind now with our positive sleep affirmations podcast. Our soothing affirmations relax the mind and prepare the body for rest. Hit play, and drift into Good Sleep... Listen to more positive sleep affirmations by subscribing to the audio podcast in your favorite podcast app:  Apple Podcasts: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://podcasts.apple.com/us/podcast/good-sleep-positive-affirmations/id1704608129⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Spotify: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://open.spotify.com/show/3OuJvYoprqh7nPK44ZsdKE⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ And start your morning with Optimal Living Daily! Apple Podcasts: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://podcasts.apple.com/us/podcast/optimal-living-daily-mental-health-motivation/id1067688314⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Spotify: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://open.spotify.com/show/1hygb4nGhNhlLn4pBnN00j?si=ca60dcfd758b44b4⁠⁠ Learn more about your ad choices. Visit megaphone.fm/adchoices

Sleep soundly knowing your future is bright. These affirmations focus on long-term prosperity and retirement security, helping you release fear about the years to come. Unwind now with our positive sleep affirmations podcast. Our soothing affirmations relax the mind and prepare the body for rest. Hit play, and drift into Good Sleep... Listen to more positive sleep affirmations by subscribing to the audio podcast in your favorite podcast app:  Apple Podcasts: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://podcasts.apple.com/us/podcast/good-sleep-positive-affirmations/id1704608129⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Spotify: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://open.spotify.com/show/3OuJvYoprqh7nPK44ZsdKE⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ And start your morning with Optimal Living Daily! Apple Podcasts: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://podcasts.apple.com/us/podcast/optimal-living-daily-mental-health-motivation/id1067688314⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Spotify: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://open.spotify.com/show/1hygb4nGhNhlLn4pBnN00j?si=ca60dcfd758b44b4⁠⁠ Learn more about your ad choices. Visit megaphone.fm/adchoices

David McKnight explores a retirement planning phenomenon that almost nobody discusses, but that has been documented repeatedly in academic research. It's the idea that when retirees convert some of their savings into guaranteed lifetime income through an annuity, they actually spend more money and enjoy retirement more than those who rely on their liquid retirement savings alone. Even though many people assume that doing so would make retirees more conservative with their spending, research actually shows the opposite. According to academic studies, when retirees have reliable lifetime income, they actually feel more comfortable spending money. Moreover, when retirees rely purely on investment accounts for income, they often underspend even when they have more than enough money to support their lifestyle. One of the findings of David Blanchett's and Michael Finke's License to Spend research has found that retirees treat guaranteed income very differently than they treat investment portfolios. In some cases, those who have money sitting in investment accounts – rather than guaranteed income – spend about 40 to 50% of what financial models say they could safely withdraw from their portfolios. Behavioral economics, and the so-called loss aversion, more specifically, highlight the fact that human beings are wired to fear loss more than they value gain. David notes that guaranteed lifetime income annuities can actually increase the amount retirees spend and enjoy during retirement. David breaks down the concept of the Retirement Consumption Puzzle. People are comfortable spending income but are terrified of spending principle. In other words, if you give someone a monthly payment, they treat it as income and spend it freely.  On the other hand, if you give them a large investment account and tell them to withdraw money from it each year, they all of a sudden become cautious and tighten up the purse strings. When it comes to the stock portfolio, David suggests allocating 70% to a total U.S. stock market index and 30% toward a total international stock market index – and rebalance every time that allocation gets more than 5% out of whack.     Mentioned in this episode: David's new book, available now for pre-order: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com David Blanchett Michael Finke Fidelity  The Urban Institute Ken Fisher

David McKnight touches upon what he considers the most overlooked tax-free income stream. What he's referring to is to leave enough money in your traditional IRA so that your required minimum distributions can be completely offset by your standard deduction in retirement. David believes that focusing on tax-free retirement strategies is more crucial than ever, since it's becoming increasingly clear that taxes are likely to rise dramatically in the future. The United States is $39 trillion in debt and, as interest on that debt continues to grow and compound, the Government will eventually have to find ways to service it. Historically, when Governments face massive debt burdens, they typically do a combination of two things: cut spending or raise taxes. David lists what he considers the best tools for tax-free income in retirement – and why you can justify their inclusion in your balanced, comprehensive tax-free retirement plan. The first resource is Roth IRAs, which allow your money to grow tax-free and be distributed tax-free in retirement. Plus, they provide tremendous liquidity too. Then there are Roth 401(k)s. They have many of the same tax-free benefits as Roth IRAs, but also have an additional advantage.  Many employers provide matching Roth 401(k)s contributions in their retirement plans. Hence, you can receive free money from your employer while still building tax-free retirement income. When it comes to Roth conversions, they're beneficial in that they allow you to convert money from tax-deferred accounts like traditional IRAs or 401(k)s into Roth accounts. Additionally, Roth conversions don't have limits on how much money you can convert each year – as long as you're willing to pay the taxes today, you can shift large amounts of money into the tax-free bucket. When designed correctly, cash value life insurance policies allow money to grow tax-deferred and to be accessed tax-free through policy loans. Moreover, they also provide a death benefit that you can receive in advance of your death for the purpose of paying for long-term care. In case you need a volatility buffer, you can use cash value life insurance to draw money from the policy after a down year on the market instead of selling stocks at depressed prices.  Leaving enough money in your traditional IRA so that your required minimum distributions can be completely offset by your standard deduction in retirement is the most overlooked tax-free income stream – David illustrates "the Holy Grail of financial planning". HSAs, health saving accounts, are the only other financial tool that allows contributions to be tax-deductible, the growth is tax-deferred, and withdrawals can be tax-free if used for qualified medical purposes. However, HSAs come with certain restrictions on how the money must be spent… David notes that, in a perfect retirement plan, you may have as many as six different streams of tax-free income. The idea behind it is to take advantage of every nook and cranny in the IRS tax code instead of relying on just one tax-free account.     Mentioned in this episode: David's new book, available now for pre-order: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Mitt Romney

David McKnight addresses an issue he sees more and more in his conversations with retirees and pre-retirees: the so-called Roth over-conversion trap.  The problem stems from converting too much money with the result of shortening the lifespan of your retirement savings. David believes that the reason why many Americans are racing to convert everything they have in their IRAs and 401(k)s has to do with the fear about where the country is headed financially. Penn Wharton has warned repeatedly that, if we don't right our fiscal ship by 2043, no combination of raising taxes or reducing spending will arrest the financial collapse of the country. According to former Comptroller General of the U.S. Government David M. Walker tax rates could have to double to pay for the country's massive $200 trillion unfunded obligations for Social Security, Medicare, and Medicaid. The debt-to-GPD ratio, which is one of the simplest measures of a nation's financial health, keeps climbing higher: By 2035 it will be at 150%, while by 2043 at nearly 200%. David warns that what most people don't realize is that in their zeal to avoid higher taxes, they may actually be marching straight into an over-conversion trap – which is just as dangerous as not converting enough money into tax-free. If you end up not having taxable income left to be offset by your standard deduction, you'll end up having a tax shield with nothing to protect. In other words, your deduction will sit idle, completely unused, and will go to waste every single year. That's why David suggests leaving a small, strategic amount of money in your tax-deferred bucket. The idea is to want enough in your IRA or 401(k) so that when required minimum distributions begin at age 73 or 75, those distributions are offset by your standard deduction.  David touches upon what he refers to as the "Holy Grail of retirement planning:" You got a deduction on the way in, you grew your money tax-deferred and then you took the money out 100% tax-free by offsetting it with a standard deduction. The million dollar question is how much should you leave in your IRA or 401(k) to make everything work? That's roughly $400,000 for married couples, around $200,000 for single retirees. If you aren't strategic with your retirement planning approach, you may have up to 85% of your Social Security taxable at your highest marginal tax bracket. David sees ensuring your money lasts as long as you do as the #1 retirement planning goal.  Remember: you shouldn't reflexively convert 100% of your tax-deferred retirement savings to tax-free. You want to be aware of how the standard deduction in retirement works and execute your Roth conversion strategy accordingly.     Mentioned in this episode: David's new book, available now for pre-order: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Penn Wharton David M. Walker

In this episode of the Power of Zero Show David McKnight gives you a blueprint with the key steps to follow for a successful and stress-free retirement if you're about five years away. The first step is figuring out your retirement income shortfall, the income you'll need every month in retirement, as well as how much of that will be covered by sources like Social Security and pensions. The retirement income shortfall represents the amount of income your retirement assets need to produce in order to fund your lifestyle. One strategy many retirees rely on is taking a portion of their liquid retirement savings, often from a traditional IRA or 401(k), and rolling it into an annuity designed to produce inflation-adjusted lifetime income. The second pillar of the blueprint discussed by David are investments: Roughly 70% to a total U.S. stock market index fund, and 30% to a total international stock market index fund. While things like paying the electric bill or putting food on the table are covered by your guaranteed income sources, this portfolio is designed to fund discretionary expenses (e.g. taking the grandkids to Disneyland, traveling, etc.) and unexpected shock expenses. David emphasizes that, by investing this discretionary bucket entirely in stocks rather than bonds, you increase the likelihood that the portfolio will last through your actuarial life expectancy. "When properly structured and funded, an index universal life policy or IUL can serve as a volatility buffer within your retirement plan", says David. Furthermore, a IUL policy can also provide a death benefit that can be accessed in advance of your death for the purpose of paying for long-term care… Remember: Retirement planning isn't about guessing what the market will do, it's about building a system where your basic needs are guaranteed, your growth assets continue compounding and you have the tools in place to manage volatility and unexpected risks.     Mentioned in this episode: David's new book, available now for pre-order: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free 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 of the Power of Zero Show sees David McKnight address one of the most important decisions you'll ever make in retirement: where you should withdraw money from first. It's important to note that the sequence in which you draw down your retirement dollars can dramatically affect how long your money lasts and how much of it you get to keep. Since the Trump tax cuts were permanently extended on July 4th, 2025, retirees have been presented with one of the most significant tax planning windows they may ever see. The national debt continues to grow – with Social Security and Medicare obligations expanding every year, and interest on the national debt taking up a larger and larger share of the federal budget. Analysts at the Congressional Budget Office and several independent economists agree that, although the 2025 extension has delayed the inevitable, it has not solved the underlying math… In or around 2035, the Government will have to raise revenue to keep pace with rising expenditures. Every dollar you withdraw from tax-deferred accounts – like IRAs, 401(k)s, 403bs, 457s – is a dollar tax rate that may be the lowest you're likely to see in your lifetime. "The goal isn't to eliminate RMDs entirely but to shrink your tax-deferred bucket to the point where these distributions are completely absorbed by your standard deduction", says David. "That means tax-free distributions from IRAs and 401(k)s. Many experts have warned people: if the U.S. doesn't right its fiscal ship of state by 2043, no combination of raising taxes or reducing spending will arrest the financial collapse of the country. You're living in a decade where taxes are as low as you've seen in your lifetime… …and even though the tax cuts were extended indefinitely, the long-term fiscal math still points in one clear direction.     Mentioned in this episode: David's new book, available now for pre-order: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com

David McKnight discusses the allocation of $1M if he had it to invest in 2026.  David sees a taxable brokerage account as the least efficient investment account you could possibly own – since it's taxed every year and it's exposed to both short- and long-term capital gains. While this type of account is liquid and can serve as an excellent emergency fund, it's the most tax-unfriendly of all the investment alternatives. The goal, says David, isn't to grow wealth within this type of account, rather to use it as a funding source to systematically build multiple tax-free income streams for retirement. Roth IRAs, which can be funded for a combined $17,200 per year (for your and your spouse's Roth IRA) is the first place David believes the money should go. Next, you should aim at maxing out your Roth 401(k)s – which is $24,500 a person for people under 50 and $32,500 per person. David explains how you can convert taxable money into tax-free money without triggering a massive taxable event and without disrupting your lifestyle. 70% total U.S. stock market index fund, 30% total international stock market index fund is the only allocation you'll ever need, says David. Having to properly structure and fully fund an indexed universal life policy (IUL) is the most misunderstood piece of the strategy discussed by David. The idea is to see an IUL as a way to grow a portion of the $1M portfolio safely and productively, and not to use it as an investment replacement or stock alternative… Historically, IULs have grown 5-7% in net fees over time – with zero stock market risks. The goal of day one of retirement is to have 3-5 years of living expenses sitting in your IUL's cash value, tax-free. This is your volatility buffer. According to a recent Ernst & Young study, the strategy discussed in this episode provides far more income, a far greater likelihood that your money will last through life expectancy and far more money to the next generation compared to the investment-only approach. Suze Orman recommends the exact same strategy but with a difference: Instead of using an IUL she suggests using a savings account that has rock bottom taxable rates of return. However, an IUL is a more effective tool, as it grows far more productively as tax-free, protects your principal, and the death benefit can double as long-term care protection. David's strategy doesn't include bonds as an IUL is safer: No sequence of returns risk early in retirement, not being forced to sell stocks in a down market. "I generally don't ever recommend bonds. There are far better instruments that are safer, more productive, and more tax-efficient tools, with IUL being one of them", illustrates David.  Many experts expect tax rates to rise dramatically by 2035 to pay interest on the national debt, bail out Social Security, and bail out Medicare and Medicaid. When that happens, you just don't want to be sitting on a massive taxable account..! The goal is to shift as much as possible from the $1M portfolio into tax-free accounts before 2035 – you want to have them in your Roth IRAs, Roth 401(k)s, and IUL cash value. Conversely, you only want about six months' worth of living expenses sitting in your taxable account.     Mentioned in this episode: David's new book, available now for pre-order: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Dave Ramsey Ernst & Young Suze Orman

This episode of The Power of Zero Show sees David McKnight discussing the single most hated retirement strategy in America: annuities. Interestingly enough, annuities are also one of the most powerful tools you can use to protect yourself from the biggest financial risk you face in retirement. Longevity risk, a retirement danger most retirees never fully grasp, is the reason why this topic matters so much. As David explains, "Longevity risk is the risk of living longer than you expected, running out of money before you run out of life."  While some people shrug longevity risk off as a good problem to have, it's actually the biggest risk in retirement (from a financial standpoint), as it is a risk amplifier. In other words, it magnifies everything else that can go wrong – such as inflation, long-term care, withdrawal risk, and sequence of returns risk. The reasons why many people hate annuities are legitimate, while others are propaganda. For more than 20 years, Kenneth Fisher has led a massive anti-annuity crusade. Remember: there's only one way to truly eliminate longevity risk from your retirement, and that's through a guaranteed lifetime stream of income in the form of an annuity. Research on annuities – something that has been ongoing for the last four decades – has shown that people with a guaranteed lifetime income tend to spend more freely in retirement than people living solely off an investment portfolio. David touches upon Richard Thaler's concept of the Annuity Puzzle. Annuities solve a problem that no stock portfolio ever can: a portfolio can't guarantee lifetime income you cannot outlive. With the American national debt exploding, which would probably lead to higher tax rates, an internal Roth conversion allows you to get ahead of that.     Mentioned in this episode: David's new book, available now for pre-order: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Kenneth "Ken" Fisher Richard Thaler

Deciding when to claim Social Security is one of the most significant financial choices you will make. The right strategy can mean a more secure and comfortable retirement, while the wrong one could leave you with less than you deserve. In this episode, we explore the nuances of Social Security and retirement planning to help you make the best decision for your future.Host Gary Heldt sits down with Bruce G. Kaserman, President of BGK Financial, to demystify Social Security. They discuss the factors that should inform your decision on when to start receiving benefits, the impact of working in retirement, and how to create a financial plan aligned with your life goals. This conversation is essential for anyone approaching retirement age seeking clarity and confidence in their financial future.Here are six key takeaways from the conversation: - Your Social Security claiming strategy should be tailored to your individual circumstances, including your health, marital status, and other sources of income. - Working while receiving Social Security benefits can impact the amount you receive, so it is important to understand the income thresholds. - Delaying Social Security benefits until age 70 can significantly increase your monthly payments. - Proper tax planning is crucial to minimizing the taxes you pay on your Social Security benefits and other retirement income. - For business owners, the way you structure your salary can have long-term consequences for your Social Security benefits. - A comprehensive financial plan can help you navigate the complexities of retirement and ensure you do not outlive your savings.If you are looking for expert guidance on your retirement strategy, this episode offers valuable insights. Listen to the full conversation to gain a deeper understanding of how to make your money work for you in retirement. Subscribe to our podcast for more insightful conversations and share this episode with anyone who could benefit from this valuable information.To learn more about Bruce G. Kaserman and his work, you can visit his website at bgkfinancial.com. As a fiduciary and National Social Security Advisor, Bruce is dedicated to helping professionals and business owners make informed decisions to secure their financial futures. You can also connect with him to learn more about his upcoming seminars on Social Security and retirement planning.

David McKnight dissects Elon Musk's recent claims that, because of AI robotics and automation, the future will have such hyperabundance that ordinary people may no longer need to save for retirement.  In Musk's future, robots are going to do all the work, AI will create prosperity, and society will provide everything you need at a little or no – cost. While David likes Musk's vision for the future, he doesn't agree with him on this one. When examined through the lens of economics, government obligations, and retirement realities, Musk's idea of the future collapses. David identifies five specific reasons why that will happen. The first reason, and perhaps the biggest flaw in Musk's argument, is that AI productivity doesn't automatically translate into personal wealth.  David points out that, during major technological revolutions, productivity increases faster than wages, capital investors capture most of the gains, and wealth becomes more concentrated at the top. In the most optimistic AI scenarios, economists say that it takes decades for productivity gains to spread to the entire population; if they ever do. The second reason why Musk's predictions won't probably come true has to do with the fact that AI won't fix the U.S. national debt or entitlement crisis. The U.S. has $40 trillion in national debt, which is projected to grow $2 trillion per year over the next 10 years (with annual interest payments already over $1 trillion per year). Furthermore, the Social Security Trust Fund is forecasted to run out in 2033, while the Medicare Trust Fund in 2031, and 10,000 baby boomers retire every day. Yet, no rapid explosion of AI innovation will change any of this. The third pet peeve David has with Elon Musk's predictions is that AI has no built-in mechanism for sharing wealth.  "Musk's argument hinges on the idea that AI abundance will automatically be shared, but it won't. Here's how this will likely go down: the profits of AI companies will flow to shareholders, and governments will collect very little from that activity", says David. The fourth reason why David disagrees with Musk's views for the future is that universal basic income is NOT a retirement plan. The final reason why Musk is wrong about the need to save for retirement is that AI increases lifespans which, in turn, increases retirement costs. Any major economist studying debt trajectories seems to agree: tax rates in the future are likely to be much higher than they are today. The current status quo is where the power of your retirement strategy becomes indispensable.  Remember: if tax rates in the future are higher than they are today, then every dollar you withdraw from a taxable 401(k) or IRA is going to be worth a lot less than you ever thought possible. David's solution consists of, over time, repositioning your money into tax-free vehicles – primarily Roth IRAs and Roth 401(k)s.     Mentioned in this episode: David's new book, available now for pre-order: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com

David McKnight explores one of the most fascinating and misunderstood topics: Retirement planning annuities. In the article Annuitization Puzzles, Economics Nobel Prize winner Richard Thaler tries to answer a deceptively simple question: If annuities are so good at protecting retirees from outliving their money, why don't more people buy them? Thaler, one of the founding fathers of behavioral economics, coined the phrase "the annuity puzzle" to describe a striking contradiction between theory and real life. According to traditional economic models, the rational choice would be for retirees to annuitize at least some portion of their wealth – yet, only very few Americans go out and buy a pure life annuity. The answers to this contradiction are almost entirely psychological. Loss aversion, loss of control, complexity and distrust, fear of disinheriting errors, underestimating longevity risks are the key reasons why that happens. David points out that most retirees believe they won't live as long as they actually will;they underestimate the probability of living into their 90s. "The Annuity Puzzle exists because economics assumes we're rational, while real retirees behave like human beings. They're  driven by emotions, fears, and biases, not economic data," says David. Remember not all annuities are created equal. David touches upon the key differences between immediate and fixed index annuities. Did you know that, while they aren't stock market replacements, fixed index annuities (FIAs) make for excellent bond alternatives? Furthermore, FIAs do resolve the flexibility and liquidity concerns many retirees face.   In his book Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement, David discusses what he considers the most powerful innovation in the annuity space today – he shares more about it in this episode. What he discusses isn't the old single premium immediate annuity you may be familiar with… rather, he illustrates a modern retirement income engine that blends the science of risk pooling with the tax-free advantages of Roth planning.     Mentioned in this episode: David's new book, available now for pre-order: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Annuitization Puzzles by Richard Thaler, Shlomo Benartzi, and Alessandro Previtero S&P 500 Penguin Random House

Stop worrying about getting older and broke. These affirmations build trust in your future prosperity, helping you feel secure and confident about your long-term retirement plans. Unwind now with our positive sleep affirmations podcast. Our soothing affirmations relax the mind and prepare the body for rest. Hit play, and drift into Good Sleep... Listen to more positive sleep affirmations by subscribing to the audio podcast in your favorite podcast app:  Apple Podcasts: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://podcasts.apple.com/us/podcast/good-sleep-positive-affirmations/id1704608129⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Spotify: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://open.spotify.com/show/3OuJvYoprqh7nPK44ZsdKE⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ And start your morning with Optimal Living Daily! Apple Podcasts: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://podcasts.apple.com/us/podcast/optimal-living-daily-mental-health-motivation/id1067688314⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Spotify: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://open.spotify.com/show/1hygb4nGhNhlLn4pBnN00j?si=ca60dcfd758b44b4⁠⁠ Learn more about your ad choices. Visit megaphone.fm/adchoices

Stop worrying about getting older and broke. These affirmations build trust in your future prosperity, helping you feel secure and confident about your long-term retirement plans. Unwind now with our positive sleep affirmations podcast. Our soothing affirmations relax the mind and prepare the body for rest. Hit play, and drift into Good Sleep... Listen to more positive sleep affirmations by subscribing to the audio podcast in your favorite podcast app:  Apple Podcasts: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://podcasts.apple.com/us/podcast/good-sleep-positive-affirmations/id1704608129⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Spotify: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://open.spotify.com/show/3OuJvYoprqh7nPK44ZsdKE⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ And start your morning with Optimal Living Daily! Apple Podcasts: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://podcasts.apple.com/us/podcast/optimal-living-daily-mental-health-motivation/id1067688314⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ Spotify: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://open.spotify.com/show/1hygb4nGhNhlLn4pBnN00j?si=ca60dcfd758b44b4⁠⁠ Learn more about your ad choices. Visit megaphone.fm/adchoices

David McKnight discusses the three assets he believes you really need for a stable, predictable tax-efficient retirement.  Getting them right will dramatically reduce the risks that derail most retirements: Market risks, sequence of returns risks, longevity risks, tax risks, and long-term care risks. Stock market investments, with a 70% total US stock market index and a 30% total international stock market index, are the first thing David recommends. He defines them as "Your growth engine, the one that pays for your discretionary expenses in retirement."  David goes over aspirational and shock expenses. A Fixed Index Annuity (or FIA) is the second asset you'll need in retirement. A FIA is the one asset that eliminates the longevity risk, the risk of living so long that you deplete all your other assets.  Then there's Index Universal Life Policy (or IUL). A recent Ernst & Young study found that retirement plans that included IULs, as well as FIAs, provided more income in retirement, a higher likelihood of money lasting through life expectancy, and more money to heirs over the investment-only approach to retirement." Remember: If you withdraw money from your stock portfolio in a down market, you lock in losses and your portfolio has a much harder time recovering.  In other words, the IUL acts as your retirement shock absorber. Did you know that, because of its safe and productive growth, the IUL can serve as what we call a "volatility buffer" in retirement?  And there's more! In fact, an IUL can also serve as a bond alternative during the accumulation years – but without the interest rate risk or bond price volatility. David sees IULs as the most dynamic asset of them all – it's your volatility buffer, your bond alternative, and your long-term care safety net.     Mentioned in this episode: David's new book, available now for pre-order: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Ken Fisher Ernst & Young

David McKnight explores the five biggest retirement mistakes people make. When it comes to retirement "traps", the obvious things such as picking the wrong stock, missing the next bull market or retiring at the wrong time are what typically comes to mind… The first mistake people tend to make when it comes to their retirement is believing that tax diversification is good enough. "Having the bulk of your wealth in tax-deferred accounts is like going into a business partnership with the IRS: every year, they get to vote on what percentage of your profits they get to keep. Not a very good business partnership, if you ask me," says David. The next mistake is one of the most subtle and expensive mistakes retirees make: ignoring the standard deduction when doing Roth conversions. The third big retirement mistake people make is trying to time the market instead of timing the tax code. Remember: "Markets move up and down, but when a country is in a debt crisis, tax rates only move in one direction: Up!"  Are you using bonds as safe money in retirement? That's what the fourth retirement planning mistake David has encountered often in his busy work schedule.  David suggests to time the tax code, instead of timing the market… Replacing your bonds with annuities that have a guaranteed lifetime income feature is something you should consider. The fifth and final mistake to stay away from is not taking enough risk in retirement. David explains that your annuities can provide income in the year after a down year in your stock portfolio. That gives your stocks a chance to recover before you take further distributions. Don't forget, the stock portion of the portfolio has one job and one job only: Make sure your money lasts a full 30-year retirement.     Mentioned in this episode: David's new book, available now for pre-order: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Tom Hegna

The focus of this episode is on what Dave Ramsey refers to as the only three investments he owns. "I have three investments: my business, paid-for real estate with no mortgages, and mutual funds," says Ramsey.  He goes on to emphasize that he doesn't play single stock, doesn't screw around with gold or Bitcoin, and that he doesn't need your stock tip from your "broke golfing buddy with an opinion." Host David McKnight wonders whether Ramsey's investment model actually works in principle, and if parts of it can be replicated by everyday investors… Ramsey's business functions in two powerful ways: it provides current cash flow so he doesn't have to draw down investments, and it represents a large future liquidity event – this alone dramatically reduces the pressure on the rest of his portfolio. David highlights the fact that Ramsey doesn't pick individual stocks. Instead, he spreads his money across the entire global stock market using mutual funds. Ramsey famously advocates an even split: 25% in growth and income funds, 25% in aggressive growth funds, and 25% in international funds. David's recommendation is to "Invest 70% in a total U.S. stock market index, 30% in a total international stock market index, and 0% in bonds."  By doing that, you'll own the entire market instead of trying to outsmart it. It is possible to adopt a 100% stock portfolio even if you don't own a business or don't have a paid off real estate throwing off residual income – David explains how. You could have a guaranteed lifetime income annuity have the same role played by real estate in Dave Ramsey's approach.     Mentioned in this episode: David's new book, available now for pre-order: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Dave Ramsey

David McKnight addresses a myth floating around the financial world: "For a Roth conversion to make sense, you need many years for the Roth to grow so you can recoup the taxes you paid to the conversion." David stresses why this way of thinking is fundamentally wrong – it's built on the wrong assumption that all the money in your IRA belongs to you… when it actually doesn't. Remember: your IRA isn't one pile of money but two piles sitting in the same account. One pile belongs to you, while the other to the IRS. What's unknown is how big the IRS' pile is going to be when you eventually take the money out of the account. David goes on to explain what happens as both piles grow and required minimum distributions kick in. You may end up with the IRS' pile being not just larger but taxed at a much higher rate too. With a Roth conversion, on the other hand, your conversion translates into you carving out the IRS' portion and handing it to them today – settling the bill while the balance is smaller and the rate may be lower. There's a key question David invites you to keep in mind when it comes to Roth conversions: "Is your tax rate lower today than it will be when you take the money out?"  The exploding national debt of over $200 trillion dollars in unfunded obligations for Social Security, Medicare, and Medicaid are going to require spending cuts, higher taxes, or some combination of the two. Beware: the problem with most retirement plans is that they assume that tax rates will stay low forever!  David points out that Roth conversions aren't about timing the market but about timing the tax code. In other words, they're about timing the advantage of known measurable tax rates today instead of gambling on unknown ones tomorrow.     Mentioned in this episode: David's new book, available now for pre-order: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com

Today on The Blue View, we're joined by leaders from the Alliance for Prosperity and Secure Retirement (APSR)—a national coalition dedicated to protecting retirement security and keeping politics out of public pension investments. Our guests include Tim Hill, APSR President, retired Phoenix firefighter, and longtime advocate for pension integrity, and O'Brien Atkinson, Anne Arundel County Police Corporal, President of his local Fraternal Order of Police, and APSR Board Member. Together, we discuss: • Why public employee pensions are increasingly under political pressure • The importance of fiduciary duty and pension board independence • How political agendas threaten long-term retirement stability • Why police, firefighters, and public employees must have a voice in pension governance • How coalitions strengthen pension protection efforts nationwide Hosted by Patrick Yoes, National President of the Fraternal Order of Police, this conversation is essential viewing for anyone counting on a secure and dignified retirement after public service. Chapters (00:00:00) - Leaders from the Alliance for Prosperity and Secure Retirement(00:03:15) - Coalition to Protect Public Employee Pensions(00:05:22) - Pension Security: A Political Battleground(00:07:43) - Does the Pension System Board Be Political?(00:15:56) - What do police officers need to do to become a member of the(00:20:21) - The Need for a Coalition(00:20:59) - The Public Employee Retirement Systems Coalition

Ready to take control of your retirement? Start your Retirement TEAM Action Plan at ARHQ.com or call 419-794-3030 to speak with a retirement planning specialist today! Hidden Risks Could Derail Your Retirement. Are You Prepared? In this episode, Nolan Baker uncovers the silent threats that can jeopardize financial security for retirees in 2026. We explore why relying solely on market performance for income can leave you vulnerable and how a structured income plan creates stability. You’ll also learn why proactive tax planning matters more than ever, given recent legislative changes, and how strategic adjustments can protect your wealth. Tune in for practical insights that help you navigate uncertainty and build confidence in your retirement journey. About America's Retirement Headquarters: We are dedicated to helping retirees achieve the retirement they deserve. From crafting personalized retirement income strategies to providing a single location for all your retirement solutions, our goal is to guide you every step of the way. Let us help you navigate the complexities of retirement, so you can enjoy financial confidence and peace of mind. Visit Us: 1700 Woodlands Drive, Maumee, OH 43537 Call Us: 419-794-3030 Learn More: ARHQ.comSee omnystudio.com/listener for privacy information.

This episode revolves around President Donald Trump's claim that, due to the massive tsunami of tariff revenue that's flowing into the U.S. coffers, Americans won't have to pay income tax in 2026. David McKnight looks at the 2025 fiscal year: the Federal Government spent about $7 trillion and brought in about $5 and a quarter trillion in revenue. While breaking down the math related to the 2025 fiscal year, David points out that "Revenue from income taxes is the single largest source of Federal revenue", while "Tariffs, by contrast, are one of the smallest." Even Trump's own economic team, including Treasury Secretary Scott Bessent, has said that in an extremely optimistic scenario, tariff revenue might someday reach $500 billion a year – which is only about ⅕ of what gets collected in income taxes. By looking at the numbers, it's clear that the proposed tariff-funded $2,000 check for each of the 340 million Americans wouldn't work: it would cost roughly $680 billion against a tariff revenue that only amounts to $195 billion… David clarifies a key point about tariffs. They're not paid by foreign governments, they're paid by U.S. importers. In other words, tariffs are simply a tax on consumers. There's an additional problem that shouldn't be overlooked. Not only do tariffs not generate enough revenue, but they can also lead to retaliation by other countries imposing their own tariffs on American exports. This means that an American effort to try to raise trillions of dollars through tariffs could end up costing heavily on its own people.  David is crystal clear: While these types of claims make for great sound bites, the federal budget still has to obey the mathematical laws of the universe, and the math makes it clear: There's no world in which tariffs could ever eliminate the need for an income tax. By the look of things, the U.S. is marching into a future where the federal government will soon need huge infusions of cash just to pay the interest on its exploding national debt. To forestall this, the U.S. government will have to double federal income taxes in or around 2035.  That's why, David says, having a dialed-in strategy to get your retirement savings shifted from 401(k)s and IRAs to Roths is more important than ever.     Mentioned in this episode: David's new book, available now for pre-order: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com President Donald Trump Treasury Secretary Scott Bessent  Wharton School of the University of Pennsylvania 

David McKnight addresses a brand new proposal that could transform the way Americans use Roth IRAs and Roth 401(k) – and that could have serious implications for your retirement flexibility, liquidity, and long-term tax strategy. With the current status quo, if a person has money in a 401(k) or even a Roth 401(k), they can usually roll it out into an IRA when they retire or leave their job. However, money can't roll the other direction: you can't take a Roth IRA and move it into a Roth 401(k)... A new bipartisan bill introduced by Republican Representative Darin LaHood and Democrat Representative Linda Sánchez aims to change that. Under this proposal, you could roll your Roth IRA into an employer-sponsored Roth account like a Roth 401(k), a Roth 403(b) or even a Roth 457 plan. This change could mean less paperwork, potentially lower fees, and a simpler investment picture. David cites simplicity, cost and protection as a few of the reasons why lawmakers may want this bill to pass. One of the incentives for Washington may have to do with the fact that encouraging people to use Roth accounts – which are taxed up front – can generate more short-term tax revenue for the government. Everything isn't as good as it seems, though. David lists a few of the trade-offs involved with this potential change. Firstly, loss of control. When your money is in a Roth IRA, you can invest it wherever you want: Index funds, EFTs, individual stocks, and more. With an employer plan, your investment menu would be limited by the options the plan administrator offers. The so-called Five-Year Rule is another aspect worth considering. Typically, every Roth account has to be open for at least five years or until 59 ½, whichever is later, before earnings can be withdrawn tax-free.  Here's the tricky part: Each different kind of Roth account has its own five-year clock. This could turn into a logistical nightmare for plan administrators. David shares some final considerations regarding who would benefit and who may get negatively affected by the proposed bill and points out that "Not all Roths are created equal."     Mentioned in this episode: David's new book, available now for pre-order: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Darin LaHood Linda Sánchez Employment Retirement Income Security Act (ERISA)

In today's episode, David McKnight breaks down the creditor protection rules for Roth IRAs and Roth 401(k)s, as well as why more and more Americans are turning to tax-free accounts to insulate themselves from creditors… and the Government itself. In theory, under Federal Law, all IRAs traditional or Roths receive a certain level of bankruptcy protection under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. However, that protection is specifically tied to bankruptcy proceedings. If you're sued in civil court, the Federal bankruptcy statute doesn't automatically apply, state law takes over… By pointing out differences between states like Texas, Arizona and Florida on one end, and California and Montana on the other, David explains that whether your Roth IRA survives a potential lawsuit intact depends largely on the state in which you reside. Roth 401(k)s play by a different set of rules, as they fall under the 1974 Employee Retirement Income Security Act (ERISA). David notes that "ERISA is the big Federal law that governs most employer-sponsored retirement plans, and it comes with some of the strongest creditor  protection available anywhere in the financial world."  According to David, it's not hard to see why the Federal Government is going to need huge infusions of new revenue in the very near future. Wondering how they will be raising that capital? By targeting the nearly $45 trillion in tax-deferred retirement accounts like IRAs and 401(k). In other words, while your retirement accounts may indeed be largely immune to lawsuits, they're entirely exposed to the impact of rising tax rates. David points out that contributing to 401(k)s or IRAs is like going into a business partnership with the IRS – every year, they get to vote on what percentage of your profits they get to keep. Remember: a well-planned Roth strategy doesn't just shield you from tomorrow's higher tax rates, it can also serve as a fortress protecting your wealth from outside claims.     Mentioned in this episode: David's new book, available now for pre-order: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 Employee Retirement Income Security Act of 1974 (ERISA)

This episode features David McKnight sharing the top five reasons why a Roth 401(k) is far superior to a traditional 401(k). Something important to keep in mind: the decision you make today will determine how much of your retirement money your future self actually gets to keep. David touches upon the fact that choosing the wrong 401(k) could cost you hundreds of thousands of dollars in unnecessary taxes in retirement. Tax rate risk is the first big reason why you should consider investing in a Roth 401(k) over a traditional 401(k). David lists a series of key questions people who invest in a traditional 401(k) often fail to ask themselves. The second reason to consider a Roth 401(k) over a traditional 401(k) is Social Security taxation. Most people believe that Social Security is tax-free…but it's not. 50% of your Social Security, plus wages, pensions, and interest, as well as all withdrawals from traditional IRAs and traditional 401(k)s, are what the IRS counts as provisional income. The third reason for choosing a Roth 401(k) and not a traditional 401(k) has to do with something that most retirees never plan for: Income-Related Monthly Adjustment Amount (IRMAA). Remember: "When you control your taxable income, you control your Medicare costs." Required Minimum Distributions (or RMDs) are the fourth reason for opting for a Roth 401(k). The fifth reason for going for a Roth 401(k) instead of a traditional 401(k) has to do with your heirs. When they inherit a traditional 401(k), it becomes a tax bomb. So, why choose a Roth 401(k) over a traditional 401(k)? Because a Roth 401(k) helps you eliminate tax rate risk, avoid Social Security taxation traps, prevent Medicare premium explosions, stay in control of withdrawals, and leave tax-free income to your heirs.     Mentioned in this episode: David's new book, available now for pre-order: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com

Ready to take control of your retirement? Start your Retirement TEAM Action Plan at ARHQ.com or call 419-794-3030 to speak with a retirement planning specialist today! Think Social Security will cover your retirement? Think again. In this episode, we explore the tough realities of relying on government benefits and why establishing a dependable income stream is more crucial than ever. You’ll learn practical strategies for managing taxes, investments, and long-term care, without falling into common traps. Retirement isn’t just about saving; it’s about planning for the unexpected and making informed choices that protect your financial future. Tune in for insights that help you take control of your retirement reality. About America's Retirement Headquarters: We are dedicated to helping retirees achieve the retirement they deserve. From crafting personalised retirement income strategies to providing a single location for all your retirement solutions, our goal is to guide you every step of the way. Let us help you navigate the complexities of retirement so that you can enjoy financial confidence and peace of mind. Visit Us: 1700 Woodlands Drive, Maumee, OH 43537 Call Us: 419-794-3030 Learn More: ARHQ.comSee omnystudio.com/listener for privacy information.

This episode sees David McKnight look at Suze Orman, who, despite being one of the most widely recognized financial voices in America, shares what appears to be incomplete advice. David believes that Orman has done a lot of good for a lot of people thanks to her financial discipline-centered approach (in addition to being a big proponent of Roth IRAs). He agrees with Orman: "Roth IRAs are powerful, no doubt about it. You contribute after tax dollars, your money grows tax-free, and, provided you meet the requirements, you can withdraw those funds in retirement 100% tax-free".  The U.S. is currently at historically low income tax rates and, thanks to the One Big Beautiful Bill Act, they have been permanently extended. However, David shares that, when it comes to the IRS tax code, there's no such thing as a permanent extension. David's pet peeve with Orman: getting money into Roth IRAs now (while tax rates are low) isn't something that will truly protect you from rising tax rates in retirement. That's because a Roth IRA by itself isn't enough. In his book The Power of Zero, David advocates for a balanced, comprehensive approach to tax-free retirement that draws from six different streams of tax-free income. David goes through the six strategies and explains why you need each and every one of them if you want to land in the 0% tax bracket in retirement.     Mentioned in this episode: David's new book, available now for pre-order: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Suze Orman OBBBA (One Big Beautiful Bill Act)

David McKnight addresses three key questions you must be able to answer before executing a single Roth conversion. Too many people go for Roth conversions without a game plan – this is something that can lead to overpaying taxes and running out of money sooner than anticipated. David points out that if you can't answer the three key questions, you should stop and reevaluate because guessing here can cost you big. "What's the total amount I should convert from my IRA or 401(k) to tax-free?" is the first and most critical of the three questions. Remember, the goal of a Roth conversion isn't to get your tax-deferred bucket to zero at all costs. It's to get to the right amount of tax-deferred dollars shifted to tax-free, the amount that allows you to stay in the 0% tax bracket in retirement. "How much should I convert each year?" is the second question and is about pacing your conversion so as to avoid unnecessary exposure to higher tax brackets. The goal is to convert to Roth slowly enough that you don't rise into a tax bracket that gives you heartburn. "Over what time frame should I complete my Roth conversions?" is the third question you should address before executing a Roth conversion. Addressing each of the three questions helps you shift from Roth conversion guesswork to Roth conversion strategy. Be careful. Most financial gurus will say "Roth conversions are great, just pay the tax and move on!"     Mentioned in this episode: David's new book, available now for pre-order: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com OBBBA (One Big Beautiful Bill Act) Donald Trump David Walker

David McKnight busts some of the most common Roth conversion myths that are costing retirees hundreds of thousands – if not millions –  of dollars over the course of retirement. The "Don't worry about Roth conversion, you'll be in a lower tax bracket when you retire" myth is based on two flawed assumptions. The first one is that your lifestyle will drop significantly in retirement, while the second is the one related to future tax rates being the same or lower than they are today. David points out that, in retirement, people want to maintain their lifestyle. In some cases, they even spend more in early retirement (think travels, healthcare and helping with kids or grandkids). Let's remember that the U.S. national debt is projected to hit $63 trillion by 2035. The country has unfunded obligations in Social Security, Medicare, and Medicaid that total over $200 trillion, and interest on the debt is going to crowd out most of the national budget items by the mid 2030s… The primary value of a Roth conversion is that it pre-pays taxes at historically low rates to avoid paying them later when rates are likely to be higher. Roth conversions not being binary, and the fact that you can get massive tax benefits without having to convert your entire IRA is another big myth David debunks. David explains why you should voluntarily pay taxes instead of delaying that decision. Ever heard of "If you don't have cash to pay the tax, you shouldn't convert"? It's another myth David addresses in this episode. For the millions of Americans who have most of their savings in tax-affirmed accounts, strategic conversions are one of the best ways to insulate yourself from the tax freight train bearing down on America.     Mentioned in this episode: David's new book, available now for pre-order: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free 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 one of the biggest financial debates among pre-retirees and retirees: When should you take Social Security? Host David McKnight touches upon the recent debate of two of the smartest voices in the field – Dr. Laurence "Larry" Kotlikoff and Dr. Derek Tharp – on this exact question. Dr. Tharp, out of the University of Southern Maine, notes that economists commonly recommend delaying social security benefits until age 70. Boston University's Dr. Kotlikoff agrees and explains that delaying can give you a 76% higher monthly benefit compared to taking it at age 62.  Since Social Security is inflation-adjusted and guaranteed for life, it acts as longevity insurance. Hence, Dr. Kotlikoff thinks that waiting doesn't only help you but your loved ones too. Dr. Tharp isn't convinced: he points out that only about 10% of workers actually wait until age 70 to claim benefits. Overall, he sees studies that recommend delaying rely on overly conservative assumptions – they assume that retirees earn returns similar to Treasury inflation-protected securities. With this line of thinking, if your portfolio is earning 5% real returns instead of 2%, then delaying your benefits might not look as attractive mathematically… Dr. Kotlikoff cites Menahem Yaari's 1965 paper, which suggests looking at delaying social security like buying insurance. It protects you from the catastrophic risk of living too long and running out of money.  The debate continues with Dr. Tharp talking about the sequence of return risk.  If the market drops early in retirement and you're forced to withdraw more from your investments to delay Social Security, you can permanently damage your "nest egg". Even though he acknowledges Dr. Tharp's point, Dr. Kotlikoff points out that most retirees have options, such as continuing to work longer, cutting spending, downsizing, or borrowing temporarily instead of taking benefits early. Plus, he adds, the people most affected by sequence of returns risk are, generally, wealthier households… Dr. Tharp concludes the debate by citing a study showing that retirees tend to spend about 80% of predictable income streams like Social Security or pensions, but only about 50% of portfolio income. He also brings up Bill Perkins' book Die With Zero into the conversation. Perkins believes that Americans often focus too much on lifespan and not enough on health span. Dr. Kotlikoff responds by stressing that some people underspend, while others overspend… and that's exactly why there's a need for good planning software. For David, both Dr. Kotlikoff and Dr. Tharp make valid points, and it all boils down to a key question: how long are you going to live? If you're likely to die at 63, then you should probably take Social Security at 62. If you're going to live to age 100, it makes sense to wait until you're 70. While there's no accurate way to determine that, there's currently a group of people who are in the business of figuring that out: life insurance actuaries. David shares two reasons why you may want to consider the additional benefits of life insurance, especially Indexed Universal Life (IUL).       Mentioned in this episode: David's new book, available now for pre-order: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com

David McKnight looks at what happened when NASCAR legend Kyle Busch reportedly lost $8+ million in what was supposed to be a tax-free retirement plan. The plan Busch relied on was built around an indexed universal life insurance policy. According to Kyle and Samantha Busch's lawsuit, they paid more than $10.4M into several IUL policies issued by Pacific Life Insurance between 2018 and 2022. While these policies were pitched as a safe, self-funding, tax-free retirement plan, things didn't go as promised…  Poor design, unrealistic expectations, a delayed 1035 exchange, and poor oversight are the key reasons why the Busch's retirement plan ended up belly up. "If you're going to do a 1035 exchange, make sure you do it at the start of the policy, not years into it", warns David. David goes over the lessons that can be drawn from the Busch's case. For instance, you should never enter into a contract that you don't understand, nor should you do an IUL if you can't overfund it from day one. David believes that you shouldn't rely on the IUL alone…  In his opinion, the Busch case is a cautionary tale about what happens when one strategy is positioned as a silver bullet retirement solution. In a balanced, comprehensive approach to tax-free retirement, which includes Roth IRAs, Roth 401(k)s, and Roth conversions, the IUL's purpose is not to carry the whole load, but rather to act as a shock absorber. A recent Ernst & Young study demonstrated that a retirement income strategy that incorporates IUL provides far more income than a strategy that calls for investments alone. David shares a few tips on how to avoid the IUL trap that the Busches unfortunately fell into.     Mentioned in this episode: David's new book, available now for pre-order: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com NASCAR Kyle Busch Samantha Busch Pacific Life Insurance  Ernst & Young

David McKnight focuses on three of the biggest names in personal finance – Dave Ramsey, Suze Orman, and Ken Fisher – and why you should be careful with following their advice. David emphasizes that anyone trying to wring the most efficiency out of their retirement savings should focus on advice that's backed by math… not soundbites. While David Ramsey is the right person for people who are making less than they are spending, the same can't be said for his retirement planning advice. For instance, he claims that 100% of cash value life insurance sucks 100% of the time.  For David, whenever someone gives you advice that claims it should be applied 100% of the time, you should run the other way! Remember: there's no financial strategy that works for everyone all the time. According to an Ernst & Young study, by contributing 30% of your retirement savings to an IUL, you'll dramatically increase your income in retirement over a stock market investing alone.  Citing E&Y, David explains an approach that shields you from the sequence of returns risk and that has a 95% chance of your money lasting as long as you do. David points out that most Americans don't have thousands of dollars lying around in savings accounts just to pay the taxes on a Roth conversion… David sees Dave Ramsey as someone who gives basic advice for people with basic problems and whose advice could potentially be catastrophic if you want to shield your retirement from higher taxes. When it comes to Suze Orman, David looks at her recent advice of keeping 3-5 years worth of living expenses in an emergency fund in retirement. While Orman is trying to safeguard against sequence of returns risk, she seems to be forgetting about inflation eating away at your purchasing power. As David shares his dislike of Orman's advice, he touches upon a resource that can double your sustainable withdrawal rate from 4 to as high as 8%. Ken Fisher, on the other hand, has become the face of the "anti-annuity crusade". The problem with Fisher's approach? He's primarily referring to variable annuities, completely disregarding fixed indexed annuities (which are a totally different animal). David discusses how replacing bonds with fixed annuities "can increase your returns, lower your risks, and give you a better outcome over time." Beware of financial gurus saying "I hate annuities", "100% of life insurance sucks 100% of the time", or "never pay taxes from your IRA"! In his latest book The Guru Gap, David takes a deep dive into the flawed logic of financial gurus, and gives the full story with the math, the context, and the strategies they conveniently leave out in their content and speeches.     Mentioned in this episode: David's new book, available now for pre-order: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free 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 Ken Fisher Ernst & Young

David McKnight compares the approach of some of the biggest names in personal finance: Suze Orman, and William "Bill" Bengen (the man who invented the 4% Rule). In a recent interview covered by MSN, Suze Orman declared flat out that the 4% Rule is dead since markets are volatile, interest rates fluctuate, and people are living longer. David shares the "origin story" of how the 4% Rule came to be – and its creator Bill Bengen. Interviewed by MSN, Bengen updated his research and concluded that, based on current data, a 4.7% withdrawal rate is now sustainable. David compares Orman's views on the 4% Rule with those of Bengen. As explained by David, when you purchase a guaranteed lifetime income annuity, you're transferring a portion of your retirement savings to an insurance company in exchange for a guaranteed paycheck for life. Remember: not all annuities are created equal – that's why you need to understand fees, credit ratings, inflation writers and surrender periods. Mentioned in this episode: David's new book, available now for pre-order: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Suze Orman William Bengen

Bill Geiger, President and CEO of Geiger Wealth Management, joins Jon Hansen, filling in for John Williams, to talk about National Retirement Security Month, the importance of creating a secure retirement plan, and the three most important jobs to do to prepare for retirement.

Is the fog of uncertainty clouding your vision of retirement? On the most recent episode of Your Money Map, our weekly show with the Alliance for Lifetime Income, Jean Chatzky sits down with Roger Whitney, a financial planner, podcast host, and founder of the Rock Retirement Club, to clear the air. Roger shares his game-changing “Four Pillars” framework for a confident retirement and explains how starting with your values — not just the number in your bank account — leads to a more fulfilling life. If you like this episode and want more, check out all of our Your Money Map episodes at protectedincome.org/your-money-map/ or tune in live every Wednesday at 12 PM ET on Facebook or LinkedIn. If more financial confidence sounds good to you, then you might want to try our… 4-Week Coaching Program: Identify and understand your spending, build a strategic plan, and take control of your money. 6-Week Pre-Retirement Program: We'll help you prepare financially and emotionally for this exciting milestone.