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 $37 trillion, not to mention Social Security, Medicare, Medicaid, and defense.
When the Government needs money and no one else will loan it the money, it does the one thing it's always done in the past: raise taxes.
Remember: even though tax rates are low today, they won't stay that way forever. Congress can change the rules anytime it needs more revenue.
David illustrates the main goal of the Power of Zero approach and how it works: it's all about creating multiple streams of tax-free income, none of which show up on the IRS' radar, but all of which contribute to you being in the 0% tax bracket.
Beware: this idea that we've locked in low tax rates forever is an illusion. Just because Congress called these tax cuts permanent doesn't mean they won't reverse them the minute they need more revenue.
According to Dr. Larry Kotlikoff of Boston University, the unfunded obligations for Social Security, Medicare, Medicaid, interest on the national debt, and the general cost of running the Federal Government over the next 75 years, are over $200 trillion.
Right now, you have a chance to strategically reposition your retirement savings to be tax-free. Shift that money slowly enough that you don't rise into a tax bracket that gives you heartburn, but quickly enough that you get all the heavy lifting done before tax rates go up for good.
David believes that you have a chance to strategically reposition your retirement savings tax-free.
Mentioned in this episode:
David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track
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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