The Power Of Zero Show

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 direc...

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.

Howe...

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...

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...

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 ...

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 ...

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 bene...

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 sa...

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 sa...

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.

Inter...

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, according to David, is that Ramsey is mis...

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, will lead to the IRS pretending tha...

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 net they used to be. And over long p...

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 they're "slow, underperforming, and ri...

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...

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 illusion that all that money belon...

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: Indexed Universal Life (IUL).

Davi...

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 even further in favor of bonds…

…ho...

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 assumptions leaves disciplined savers e...