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
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
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