This episode is based on David McKnight’s recent interview for Stephen Gallo’s podcast. David explains how the advice shared by gurus tends to work – and the role financial advisors play. David touches upon his concept of “Dave Ramsey’s circle of poverty.” According to Wade Pfau, adopting the approach shared by Dave Ramsey will lead to you running out of money in advance of actuarial life expectancy 63% of the time. To avoid falling in league with financial gurus, financial advisors should stay ...
Dec 04, 2024•20 min•Season 1Ep. 318
This episode is part of David McKnight’s guest interview with Kyle Solon. David talks about the importance of math when it comes to decisions related to using cash value, life insurance, and annuities. A recent Ernst & Young study showed a surprising stat about who had the highest income in retirement and passed the most money on to the next generation. David illustrates the concept of the volatility shield, also known as volatility buffer. The #1 concern of Americans all across the country ...
Nov 27, 2024•11 min•Season 1Ep. 317
David McKnight describes the Trump tax cuts situation before Trump’s victory at the 2024 presidential elections. There’s likely going to be changes under a new Trump administration – something that David sees as great news. When it comes to Roth conversion strategy, David is a believer in two things. The first is to convert your money slowly to avoid rising into a tax bracket that gives you heartburn. The second is to convert your money quickly enough to get all the heavy lifting done before tax...
Nov 20, 2024•6 min•Season 1Ep. 316
This episode is a critique of a recent video by George Kamel on the supposed benefits of paying off your house in 10 years. David McKnight examines Kamel’s viewpoint on early mortgage payoff and whether it’s truly beneficial – do you really come out ahead by eliminating your mortgage as fast as possible? A major point David sees as a disadvantage is the fact that by paying off your mortgage early, you may lose access to the equity in your home. David highlights the opportunity cost of using fund...
Nov 13, 2024•7 min•Season 1Ep. 315
Today’s episode looks at the top 6 reasons why doing a Roth conversion may be the right move for you. The disastrous fiscal condition of the U.S. is the first reason why you should consider doing a Roth conversion. David explains why debt in and of itself isn’t the issue – and what the real problem with it is. Doing a Roth conversion with today’s low tax rates can be a way for you to shield your retirement savings from the impact of higher taxes down the road. Not sure what tax rates could doubl...
Nov 06, 2024•7 min•Season 1Ep. 314
David McKnight explains how a lack of knowledge about Roth 401(k) distribution rules can lead to unexpected taxes and penalties. This episode dives into practical insights to help you steer clear of unwelcome surprises from the IRS. David illustrates what happens if you withdraw from your Roth 401(k) before age 59½, and how these rules differ from those of a traditional Roth IRA. He subsequently tackles the question of when post-59½ withdrawals of Roth 401(k) growth can be completely tax-free. R...
Oct 30, 2024•5 min•Season 1Ep. 313
In the past, David McKnight has been critical of gurus like Dave Ramsey. However, this episode looks at a video in which Ramsey seems to have slightly changed his views. Ramsey emphasizes that one key benefit of a Roth IRA is the potential to drastically reduce or even eliminate Required Minimum Distributions (RMDs). David explains that the decision to pursue a Roth conversion typically depends on whether you expect your future tax rate to be higher than it is today. David discusses a missed opp...
Oct 23, 2024•11 min•Season 1Ep. 312
In a recent video, real estate influencer Grant Cardone made some bold claims, advising against attending college, owning a home, and he even suggested that people should cash out their 401(k)s to invest in real estate. David McKnight calls this advice irresponsible, dangerous, and lawsuit-worthy. Far more Americans achieve millionaire status through consistent stock market investing than through real estate. David shares a more sustainable approach to building wealth through homeownership that ...
Oct 16, 2024•13 min•Season 1Ep. 311
This episode explores the easiest and most hassle-free way to achieve millionaire status. According to Fidelity, the number of 401(k) millionaire accounts they manage has skyrocketed from 100,000 in 2017 to nearly 500,000 in 2024. “The slow and steady approach to building wealth is the best way to become a millionaire today,” says David McKnight. David explains why this method often outperforms owning real estate or running your own business when it comes to low-stress wealth accumulation. He al...
Oct 09, 2024•7 min•Season 1Ep. 310
In this episode, Ben Shapiro shares his insights on the growing national debt and its potential trajectory under a Kamala Harris administration. Shapiro provides a historical overview of U.S. interest payments, starting from the 1960s. He highlights the alarming rise in the national debt, which has doubled in the last decade, and examines Harris’ proposed solutions to address it. According to Shapiro, there are only two viable paths to resolve the debt crisis: significant economic growth or subs...
Oct 02, 2024•12 min•Season 1Ep. 309
This episode answers the question, “How do I do a Roth conversion, and what forms do I need to fill out with the IRS?” David explains that there are three basic steps to convert your IRA to a Roth IRA. Carrying out these three steps will likely take a few weeks – the process could be slightly shorter if everything is handled by the same financial institution. Starting this process in December isn’t ideal because financial institutions are often overwhelmed with conversion requests. If the conver...
Sep 25, 2024•5 min•Season 1Ep. 308
This episode is part of David McKnight’s interview with Mark Byelich, founder and owner of Attleboro Wealth Management. David and Mark discuss why the money inside a Life Insurance Retirement Plan (LIRP) "bucket" is treated differently for tax purposes and benefits from low fees. When it comes to life insurance, David recommends "having as little of it as the IRS requires, and stuffing as much money into it as the IRS allows." Remember: not all Indexed Universal Life (IUL) policies are created e...
Sep 18, 2024•30 min•Season 1Ep. 307
This episode looks at the recent IRS updates on the required minimum distributions due for 2024 and 2025. David touches upon which accounts are and which aren’t subject to RMDs. Historically, when someone missed their RMD, they had to pay a 50% penalty on whatever they were supposed to withdraw but did not… David goes over what the new regulation for missing an RMD says. David explains how SECURE Act 2.0 changed what was a popular policy in regards to RMDs and paying penalties. To avoid confusio...
Sep 11, 2024•6 min•Season 1Ep. 306
Today’s episode addresses how to create multiple tax-free income streams that don’t show up on the IRS’s radar and that contribute to you being in the 0% tax bracket in retirement. Having some money in a tax-deferred account, like an IRA or 401k, is the first way high-income earners can create tax-free wealth for retirement. Contributing to your Roth 401k or Roth 403b, as well as leveraging a backdoor Roth, are a couple of additional ways to build tax-free wealth in retirement. David touches upo...
Sep 04, 2024•9 min•Season 1Ep. 305
David starts the conversation by explaining what IRMAA is, if you should be worried about it when doing a Roth conversion, and whether there are ways around it. David defines the acronym IRMAA, Income-Related Monthly Adjusted Amount. This is an additional charge you could be required to pay on your Medicare Part B premiums. As your income goes up in retirement, your Medicare Part B premium increases with it. David explains why standard deductions do not apply when calculating IRMAA. What is the ...
Aug 28, 2024•6 min•Season 1Ep. 304
This episode addresses Suze Orman’s epic IUL rant on her Women and Money podcast . Suze Orman begged her audience not to do Index Universal Life insurance policies. This very broad brush and no nuance approach of every financial guru is what David’s upcoming book The Guru Gap touches upon. David explains why the generic approach financial gurus tend to have is leading people astray. David brings up Orman’s advice to one of her listeners who has been investing $200/month into an IUL policy. David...
Aug 21, 2024•10 min•Season 1Ep. 303
David and Mark Byelich talk about why people don’t want to pay a tax before the IRS absolutely requires it of them. David touches on the 2018 documentary The Power of Zero: The Tax Train is Coming . Mark Byelich explains that the longer someone hasa tail of the overage in their IRA hanging out there, the more risk they have. Mark discusses what happens in financial planning when people ease. When it comes to people around the country, the initial tax payment is typically the thing that’s really ...
Aug 14, 2024•8 min•Season 1Ep. 302
Today’s episode is part of David’s interview with Mark Byelich. David and Mark address Mark’s concept of “suddenly single”. David once met an Uber driver who had saved $1.5M. All financial advisors gave him the same advice “don’t change anything” but David had something different to share. A Roth conversion is something married couples should consider to avoid being automatically catapulted into the 22% or 24% tax bracket if one spouse dies. David breaks down the thought process behind consideri...
Aug 07, 2024•14 min•Season 1Ep. 301
This episode addresses the 8-step plan for a successful retirement plan that was recently shared by Dave Ramsey’s “sidekick,” George Kamel. Just like in any field of life, a good financial plan benefits from assessing where you are, where you want to be by a given date, and what needs to be done to get there. David dislikes the approach of painting everything with a broad brush and characterizing niche financial planning principles in broad, one-size-fits-all financial planning terms. That’s wha...
Jul 31, 2024•10 min•Season 1Ep. 300
Today’s video comes from David’s interview with Dave Christy. They discuss how life insurance and annuities can help maximize your retirement. They start by describing the three different ways cash value life insurance can positively impact your financial plan. David reveals how IULs can be an excellent replacement for the bond portion of your portfolio. David explains why most people get heartburn when they think about paying for traditional long-term care. David goes over the unique aspects of...
Jul 24, 2024•13 min•Season 1Ep. 299
Today’s video is part three of David’s interview with Dave Hall. They discuss whether Trump will extend the tax cuts if re-elected. David cites a recent report from the Committee for a Responsible Federal Budget that says that if they extend the tax cuts, the government will have to borrow $5 trillion to pay for those tax cuts. David explains why he doesn’t see another tax cut happening without a commensurate reduction in spending. David tackles people’s assumptions that tax cuts can stimulate e...
Jul 17, 2024•13 min•Season 1Ep. 298
Today’s episode is part 2 of David’s interview with Dave Hall. David shares his thoughts about moving the retirement age to what it currently is. Dr. Larry Kotlikoff has suggested raising taxes to 4% – 2% on the employee and 2% on the employer – as a way to solve the issues around Social Security. David sees the combination of pushing back the retirement date and increasing revenue as a valuable avenue to tackle the Social Security issue. Dave and David talk about the current and future state of...
Jul 10, 2024•11 min•Season 1Ep. 297
Today’s episode is part 1 of David’s interview with Dave Hall. David shares what he considers the fundamentals of his financial movement: “numbers don’t lie.” David cites a recent Penn Wharton study that illustrates two things that should be done by 2043 – and what will happen if these conditions aren’t met. Dave and David discuss the debt-to-GDP ratio, and why debt isn’t the problem. According to experts, when the debt-to-GDP gets past 75% it’s when there’s an eroding influence on your economic...
Jul 03, 2024•13 min•Season 1Ep. 296
Today’s video is part four of David’s interview with the co-founder of Power of Zero, Larry DeLegge. They discuss whether AI will replace financial advisors and if Congress will take away the tax advantages of cash value life insurance. According to David, financial planning is more of an art than a science. This is why he is not all that convinced that AI has the capabilities to successfully handle people’s unique and complex financial situations. 2043 will be a big year for our country. Once w...
Jun 26, 2024•11 min•Season 1Ep. 295
Today’s video is part two of David’s interview with Larry DeLegge, the co-founder of Power of Zero. They discuss the tax bracket you should avoid when doing a Roth conversion. They start the conversation by describing why it’s a no-brainer to pay your taxes today at 22 or 24% marginal rates. Instead of rushing to complete Roth conversions by 2026 and potentially bumping into higher tax brackets, David suggests stretching the conversions over several years. After 2026, the tax brackets are expect...
Jun 19, 2024•8 min•Season 1Ep. 294
Today’s episode is part 1 of David’s interview with Power of Zero co-founder Larry DeLegge. The two talk about value life insurance policies, children, and whether life insurance can serve as a viable volatility shield in retirement. David shares his thoughts regarding the “IUL vs. whole life insurance policy” debate. For David, starting a life insurance policy is like getting married – he explains why. When it comes to life insurance policies, there are two key things David looks at. The first ...
Jun 12, 2024•15 min•Season 1Ep. 293
This episode is part 3 of David’s interview with Power of Zero co-founder Larry DeLegge. The two discuss the most dangerous retirement advice from Suzie Orman, Dave Ramsey, and Ken Fisher. Financial gurus in the business of dispensing one-size-fits-all financial planning advice is David’s biggest pet peeve. Why do they do it? To appeal to a broader range of Americans. David explains what his so-called Dave Ramsey’s circle of poverty is all about. Two out of three people who reach financial indep...
Jun 05, 2024•18 min•Season 1Ep. 292
Today’s video is part six of David’s interview with financial advisor Chris Martens where they discuss the fatal flaw in Dave Ramsey and Suze Orman's retirement planning advice. They discuss David’s new book, “The Guru Gap,” and how America’s financial gurus are leading people astray. David believes that Dave Ramsey and Suze Orman have done an incredible service helping many Americans get out of debt and even become rich--but they’re not all that good at helping you stay rich or secure your reti...
May 29, 2024•7 min•Season 1Ep. 291
Today’s episode is from David’s conversation with CFP Adam Olson. They discuss why mega-CPA firm Ernst & Young is saying that if you want to maximize your income in retirement, you should put 30% of your retirement savings into a cash value life insurance. David reveals what percentage of your savings you should put into a life insurance retirement plan. David shares the benefits of accumulating three years worth of living expenses in your cash value life insurance–this is to pay for your li...
May 22, 2024•6 min•Season 1Ep. 290
Show host Arturo Johnson shares his experience with coming across David’s content – and how it has changed his perspective. David mentions a study that illustrates the benefits of putting 70% – and not 100% – of your retirement savings into a Roth 401k and the balance into cash value life insurance. Dave Ramsey is famous for stirring up a hornet’s nest among CFPs all across the U.S. David unpacks a shortcoming with one of Ramsey’s principles. David goes over what can happen when you utilize life...
May 15, 2024•12 min•Season 1Ep. 289
