Complete Your Roth Conversion by THIS Date or LOSE!
11/01/23 • 12 min
1 Listener
Today’s episode is part three of David’s interview with Power of Zero Advisor Terry DuPont.
Trump tax cuts were not permanent – David explains why 2026 is going to be a key year for that.
In his book Comeback America, former Comptroller General David Walker predicted that, by 2023, tax rates would have to double – or more – to keep the U.S. solvent.
David shares what he believes people should do in the next few years as the country approaches an “apocalyptic” scenario.
Terry DuPont is amazed by the fact that families and individuals don’t seem to understand the fact that the largest expense in their lifetime will continue to be the same.
According to Terry, the main issue is that people don’t calculate that expense into their future.
Terry asks David about the one thing he knows now that he wishes he knew when he started.
David opens up about the role David Walker has played in his journey as well as about his definition of success.
David warns people against letting a year go by without taking advantage of historically-low tax rates.
Mentioned in this episode:
David's books: Power of Zero, Look Before You LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code
PowerOfZero.com (free 3-part video series)
@mcknightandco on Twitter
@davidcmcknight on Instagram
David McKnight on YouTube
Get David's Tax-free Tool Kit at taxfreetoolkit.com
Comeback America: Turning the Country Around and Restoring Fiscal Responsibility by David Walker
Why Your Taxes Could Double (2009 CNN article by David Walker)
I.O.U.S.A. (2008 documentary featuring David Walker)
Today’s episode is part three of David’s interview with Power of Zero Advisor Terry DuPont.
Trump tax cuts were not permanent – David explains why 2026 is going to be a key year for that.
In his book Comeback America, former Comptroller General David Walker predicted that, by 2023, tax rates would have to double – or more – to keep the U.S. solvent.
David shares what he believes people should do in the next few years as the country approaches an “apocalyptic” scenario.
Terry DuPont is amazed by the fact that families and individuals don’t seem to understand the fact that the largest expense in their lifetime will continue to be the same.
According to Terry, the main issue is that people don’t calculate that expense into their future.
Terry asks David about the one thing he knows now that he wishes he knew when he started.
David opens up about the role David Walker has played in his journey as well as about his definition of success.
David warns people against letting a year go by without taking advantage of historically-low tax rates.
Mentioned in this episode:
David's books: Power of Zero, Look Before You LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code
PowerOfZero.com (free 3-part video series)
@mcknightandco on Twitter
@davidcmcknight on Instagram
David McKnight on YouTube
Get David's Tax-free Tool Kit at taxfreetoolkit.com
Comeback America: Turning the Country Around and Restoring Fiscal Responsibility by David Walker
Why Your Taxes Could Double (2009 CNN article by David Walker)
I.O.U.S.A. (2008 documentary featuring David Walker)
Previous Episode
What your Financial Advisor Is NOT Telling You About Roth Conversions
Today’s episode is part two of David’s interview with Power of Zero Advisor Terry DuPont.
David talks about the approach many major money management institutions follow, and how it differs from how David and Terry do things.
There are situations where large money management institutions forbid their advisors from ever bringing up, for example, Roth conversions.
David invites listeners to browse the web trying to find a Ken Fisher article discussing the benefits of a Roth conversion.
David discusses what makes the Power of Zero approach stand out in the financial planning industry.
People seem to be hungering for real solid strategies that can help insulate them from the impact of rising taxes, says David.
David lists a few reasons why the advice people may get from gurus like Dave Ramsey or find on platforms like TikTok isn’t useful.
David recommends having a balanced and comprehensive approach to tax-free retirement that takes advantage of all the nooks and crannies in the IRS tax code.
There are different things David likes about Roth IRAs, Roth 401ks, Roth Conversions, Life Insurance Retirement Plans, and tax-free social security – he touches upon them.
Mentioned in this episode:
David's books: Power of Zero, Look Before You LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code
PowerOfZero.com (free 3-part video series)
@mcknightandco on Twitter
@davidcmcknight on Instagram
David McKnight on YouTube
Get David's Tax-free Tool Kit at taxfreetoolkit.com
Next Episode
How to Get Rich the Dave Ramsey Way! (Hint: 10% Withdrawals in Retirement)
David breaks down a recent Dave Ramsey interview where he advised a 50-year-old widow on the best way to save, invest, and withdraw her retirement savings.
According to Ramsey, if the lady invests $1000 every month for 15 years, she will have accumulated $500,000, which gives her permission to withdraw 10% of her savings every year for the rest of her life.
The problem with this recommendation is that she will likely earn 9% returns per year, not 12%.
She is also more likely to run out of money before running out of life if she withdraws 10% of her savings every year.
The gaping hole in Dave Ramsey’s investment approach is that he seems to have a limited understanding of the sequence of return risk. This is the order in which you experience investment returns in retirement.
Generally, it’s safe to show future returns based on a historical track record consistent with your future investment horizon.
For example, if you want to know what rates of return you’ll likely experience in the next 15 years in the S&P 500, you need to look at how the index performed in the past 15 years.
According to David, Ramsey’s overly inflated retirement variables are setting his listeners up for failure. By inflating his assumptions, Dave Ramsey gives his listeners an overly optimistic view of how much money they must save to reach their retirement goals.
But why does Dave Ramsey have such a flawed view of retirement planning?
David believes it comes down to two things:
- Dave Ramsey likes to portray himself as the retirement planning outsider who is at war with the mainstream financial planning community.
- He believes that if he can show his followers lucrative investment projections, more of them will sign up for his financial independence programs.
Don’t be seduced by Ramsey’s inflated rates of return or his massive withdrawal rate assumptions. You’re much better off using a 9% rate of return and a 4% sustainable distribution in retirement.
Mentioned in this episode:
David's books: Power of Zero, Look Before You LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code
PowerOfZero.com (free 3-part 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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