The Power Of Zero Show

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...

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 fi...

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. Howeve...

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 Co...

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...

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...

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 c...

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 secon...

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 reco...

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...

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...

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 –...

David McKnight discusses one of the most destructive pieces of retirement advice he has ever heard: that you should never do a Roth conversion in retirement or within five years of retiring. Dave Ramsey believes you should forego doing a Roth conversion if you're within five years of retirement or are already retired – because of the so-called Five-Year Rule. The problem with this approach, accord...

David McKnight addresses something that can make or break your Roth conversion strategy: how you actually pay the tax. David kicks things off by sharing that Federal and state estimated tax payments are usually made in four equal installments: April 15th, June 15th, September 15th, and January 15th of the following year.  Did you know that doing a Roth conversion in December, like many people do,...

David McKnight explains why he has chosen to avoid bonds entirely and why you might want to rethink how you protect your portfolio as you approach retirement. David kicks things off by illustrating the so-called sequence of returns risk. According to conventional wisdom, bonds tend to be less volatile, so they help smooth out the rough years in the stock market.  However, bonds aren't the safety n...

David McKnight addresses something Dave Ramsey has been saying for years: "You should NEVER own bonds in retirement!" David points out that the tool that actually solves the problem Ramsey has been trying to avoid is the same one he spent years mocking on his call-in show: the Fixed-Indexed Annuity. Ramsey's argument is that stocks outperform bonds over time – hence, bonds should be avoided as the...

David McKnight walks you through what he believes to be the retirement strategy of the future: the Power of Zero approach. Congress recently passed the One Big Beautiful Bill Act, which makes the Trump tax cuts permanent. The brackets were set to expire in 2026, but now we're told they're here to stay… By 2035, the U.S. will need massive infusions of cash just to cover the interest on the debt of...

While on the golf course with his son, David McKnight got asked a question, by a couple of men in their early 70s, every pre-retiree and retiree wonders at some point: "What's the biggest mistake people make when preparing for retirement?" Many people spend their entire career saving money in tax-deferred accounts like 401(k)s and IRAs. As that balance grows larger every year, it's easy to get the...

For many people, an approach that incorporates whole life insurance has become part of their broader retirement strategy. Is that a good way to go? That's what David McKnight addresses in this episode. While Whole Life has some legitimate applications, especially for people who are risk-averse and are looking for guaranteed steady accumulation, there's an option that does the job more effectively:...

In this episode of The Power of Zero Show, host David McKnight discusses why it may make sense to replace the bonds in your retirement portfolio with a Fixed Index Annuity, and how doing so could lead to a much better outcome for your retirement. For decades, financial advisors have followed the conventional wisdom of the 60-40, 60% stocks, 40% bonds. As you approach retirement, that ratio shifts...

David sits down with John Manganaro to unpack the advice of financial gurus like Dave Ramsey and Suze Orman. While their guidance has helped countless Americans get out of debt, David explains why their cookie-cutter approach to retirement income planning can fall short. Why "hope over math" is a dangerous foundation for retirement planning—David explains why advice built on optimistic return assu...

David explains why A.I. could make Universal Basic Income (UBI) a reality sooner than you think. As machines take over more jobs—especially white-collar ones—we may need a new safety net just to keep society stable. Why UBI is no longer a fringe idea but a serious policy being considered in Washington. It promises monthly cash payments to every adult, regardless of their job or income. David highl...

David starts by talking about the apocalyptic headwinds facing Social Security and Medicare and what it means for your retirement plan. The Social Security and Medicare trust funds are projected to be insolvent by 2033, with the combined Social Security trust fund gone by 2034. David explains why this isn't just a distant problem: Without intervention, roughly 70 million Americans will face major...

How could postponing your retirement by just five years transform your retirement picture? David McKnight shares mathematical reasons that could help.  Reason #1 is compounding. As David explains, "When you delay retirement, your money has more time to grow." The second reason for considering the postponement of your retirement has to do with the fact that an extra 5 years would give you more time...

In this episode of the Power of Zero Show, David McKnight looks at headlines, such as those from Vanguard, BlackRock or Morningstar, that have predicted a dismal forecast for stock market returns over the next decade. Since such articles predict 4-5% annual growth for the next decade, many investors are pondering whether they should take some chips off the table. Back in 2015, those same instituti...