The Power of Zero channel was created with the express purpose of helping 1,000,000 Americans get on the road to the 0% tax bracket in retirement within the next 10 years.
David McKnight has made frequent appearances in Forbes, USA Today, New York Times, Fox Business, CBS Radio, Bloomberg Radio, Huffington Post, Reuters, CNBC, Yahoo Finance, Nasdaq.com, Investor’s Business Daily, Kiplinger’s, and MarketWatch. His bestselling book The Power of Zero has sold over 350,000 copies and the updated and revised version was published by Penguin Random House. When it was launched in September of 2018, it finished the week as the #2 most-sold business book in the world. For two consecutive years Forbes Magazine has ranked The Power of Zero as a top 10 financial resource in the country. This book was recently made into a full-length documentary film entitled The Power of Zero: The Tax Train Is Coming. David and his wife Felice have seven children.
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Only five trillion Reichsmarks? That should be easy.
We could extend if the Democrats quit spending like drunken sailors to buy votes from illegal aliens.
Taxes are a cost to business and individuals. Raising any taxes creates inflation. What we need is to keep taxes rates at the same level but decrease government spending to live within the revenue collected. Modify tax codes to eliminate deductions and going to a flat tax for business based on revenue would be a necessary improvement
Agreed. But some politicians are going to have to be willing to be voted out of office along the way.
This dude wants to sell you on an infinite banking scam...
I’ve never done infinite banking and wouldn’t even know how to tell you to get started.
My bad. A "Life Insurance Retirement Plan". Good returns those collecting commissions from selling policies, that's about it.
It mostly favors the rich so of course. Whether we can afford it or not is only relevant when it comes to spending that could help the common man
The countries who loan us the money don’t care what we spend it on. But they do want their interest.
@@DavidMcKnight They can't buy bonds unless they find a way to earn dollars. And dollars only come from the government. So is it really accurate to say they're lending us the money?
At 7:36 are you saying that my higher income at age 50 means I shouldn't convert traditional IRA funds to a Roth IRA because I'm already paying a high 32% income tax and shouldn't add the conversion tax to that? I should wait until after 59 1/2 when I'm retired with a lower income and then do a Roth IRA conversion?
Sure am.
1) Orman is a crook and fraud. Her opinion should never be sought on any topic. She should be in jail. 2.) Ramsey's baby step 3 in a full 3-6 month emergency fund long before and aside from you investing for retirement. 3.) ANNUITIES ARE NEVER TO BE USED FOR ANYTHING EVER. ALSO CROOKERY & FRAUD.
Why should Suze Orman be in jail?
Facts...doing conversions in 2024 & 2025....hoping they will expect the current tax brackets....
I’ve been Fisher client for 18 years. Quite happy. But I do have annuity and have converted many Ira $s to Roth. Diversification in all ways!
Curious, did they bring up the idea of a Roth conversion to you or did you bring it up to them?
Here's the thing - Annuities and permanent/cash value life insurance are not scams, but they are usually (but not always) suboptimal ways to structure your finances and they way they are sold contributes to their scammy reputation. For example - An agent will sell a whole life insurance policy to a 30 year old with a family saying it will protect his income stream, plus be his retirement, plus be his own bank, yada yada. The policy is very expensive compared to his income, he can barely afford it. If this same person had bought a term policy and actually invested the money instead he would be far, far better off in the long run. The person will eventually find out that he's been suckered and cash it in, for negative gains. The agent does just fine, but the customer would have been better off never having met this agent. This story plays out thousands of times every day across the USA. Anyway, sure if you are going to have estate tax issues, an ILIT makes sense. Annuities could make sense instead of bonds in the right scenarios (AND AT THE RIGHT AGES). Anyway the insurance industry is capitalizing on the lack of financial education in this country instead of being part of the solution, and that is the problem in a nutshell.
I largely agree. Though there are a few applications of permanent insurance for younger ages that might surprise you.
Guru
The answer to saving Social Security is to increase everyone's contribution rate to 8% for both employee and employer, raising the full retirement age to 70 and increasing or eliminating the contribution wage cap. All three need to be done in order to truly save Social Security. Removing the contribution wage cap alone, which is what most people call for, is not enough.
Agreed. Which politician has the political fortitude to recommend it?
He said to take 8% if you are making 12% on your money. You took out of context or just looking for comments to build algorithm
You missed the point. Who makes 12% linearly year over year? No one. Therefore in no context would this advice be applicable or relevant.
Why is nobody saying this: You can withdraw 8% but not spend every penny? How about withdraw 8% and spend half? Have a little "money in the mattress"
Why would you withdraw 8% if you don’t need it? Particularly if it incurs a tax and you then lose the tax deferral on that money?
You can name the Trust as the beneficiary of your retirement plan. Upon death all assets in the retirement plans get distributed to the trust. I would also argue is just because you can put in unlimited money into the "non investment" whole life insurance, doesn't mean its a good idea. Just because something is non taxable doesn't mean its a good investment (or an investment at all, whice life insurance us not allowed to be called).
This could resolves itself, if Congress would stop dipping into people's Social Security trust fund, and using these funds for their own agenda.
At some point the person should take responsibility, do the research, seek advice, use critical thinking, take ownership. Can't make one person responsible for the decision of others right? :$
Tax rate have to double?? YEAH RIGHT !!!
Have you done any research of your own. I have. And this is what the experts are saying.
@@DavidMcKnightOh yes I have. I've been hearing this is the lowest taxes can go since Reagan. Most financial advisors and accountants will end their meetings this way. it's kind of low hanging fruit. I generally don't find (taxes MIGHT go up) to be a good strategy for long term planning.
@@MARCMOEYhow about taxes HAVE to go up or the country goes broke? This is the consensus of most experts familiar with our country’s fiscal landscape. Seems like this would be an important detail in a financial plan.
@@DavidMcKnight Of course, but the country is not going to go broke because of me. All I'm saying is. I was always told you don't make investments because of taxes. You make investments because it's a good investment. You really have no control over taxes.
Taxes shouldn't go up at all, they're already too high; THE GOVERNMENT SPENDS TOO MUCH G-D MONEY! If they confiscated *100%* of the wealth from everyone that was worth 1 million or more they would run out of money in about 4 months again.... These "elected" officials need to be held accountable for this defrauding of the american people.
Man Dave really crashed out
You can live off the dividends your investments generate and never touch the principal. that's true financial independence.
When working, I maxed out my Roth 401K. The company match was in pre-tax so it automatically had multiple buckets.
Dave is out of line here. 3-4% withdrawal rate is true and proven.
Ramsey seems to ignore a run of down years?
Exactly! Assuming you will consistently get 12% each year is insane! That is not a return you will get from low-medium risk portfolios, or with any consistency even with higher risk investments. And you don't want to be in higher risk investments when that is your only source of income.
Does this guy sell life insurance?
Yes
One of the more honest ones
As part of a balanced, comprehensive approach to tax-free retirement.
Can you talk about the possible penalties on withdrawals from the Roth IRA, given the differences betwwen 1)contributions, 2) conversions, and 3) earnings. Please factor in the holding periods and the age of ROTH IRA owner. Thanks.
I did a video on this a few months back where I break it all down. Check out my channel.
Dave lacks humility and George lacks a spine. But we're all lacking something. I could go for a bowl of fruity pebbles, but I don't have any.
Dave is smart enough to understand the math. The fact that he won't concede, I think, is just a symptom of his ego. He's already invested too much public attention to his 8% for him to back off of it with his ego intact.
And people would start questioning his other advice as well.
He acts like he average rate of return over many years means the same thing as a steady rate of return every year. If you have a year or two of losses in the years immediately after retirement, you're not going to be able to sustain 8% withdrawal every year.
Several of the biggest market experts have been voicing their opinions on exactly how awful they think the next downturn would be, and how far equities may have to go, as recession draws closer and inflation continues.. well above the Fed's 2% objective. I'm trying to build a portfolio of at least $850k by the time I'm 60. I need suggestions on what investments to make..
I'll suggest you find a mentor or someone with experience guide you especially in this recession. especially for your 401K, IRA and portfolio diversification.
I agree, that's the more reason I prefer my day to day invt decisions being guided by a init-coach, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using a init-coach for over 2years+ and I've netted over 2.8million.
I just started few months back, my grandson helps me but I'm going for long term, I'm still trying to figure it out honestly.. Which advisor do you work with?
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Aileen Gertrude Tippy’’ for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
Get facts straight
Completely missrepesent the math George put out. Good job
I am 53 and retired at 50. 1 thing I did do to retire early was to get out of the 401K and IRA programs. Bought rental real-estate and I am now a Limited Partner in about 1500+ units from collabrative efforts in the fund my estate planner has me invested in. I do not work.
I only contribute 5% to get full company match, that’s it. The 401K plan is designed for you to work until you are about dead. Also, the government does not have their hands on it yet either.
My wife and I live off of our 401K. We don't work. I recommend highly to everyone to build your 401K or Roth IRA's as an alternate revenue stream in retirement to your Social Security. An observation on 401K's is when it gets over 300K it starts to accelerate. When you get over 500K it can really accelerate as the stock market grows.
If I may ask, as in withdrew all of the money from the 401K and IRA programs? If so, what was your strategy behind that decision? Thank you.
I learned about govt actions from cfp in ny by name ‘’Aileen Gertrude Tippy’’ . Ms. Aileen explained the benefits of long-term Treasuries and alternative investments, which the govt doesn't disclose.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
Anyone who listens to the Dave Ramsey about how to control their finances probably listen to Jim Cramer on investing in the stock market.
Dave Ramsey is a scam artist himself! He does not have a life insurance license or securities license, but to listen to him, you would think he is a financial god. He gives advice on finance, but he filed for bankruptcy. He prays on the 'Church Crowd' and sells his programs primarily to churches and labels himself as a Christian that does the right thing. By the way...By term and invest the difference....Zander insurance? Research who is part owner.....
Rase taxes on the rich.
I'm new to trading, and I've lost a good sum trying out strategies I found in online tutorials. I would sincerely appreciate any recommendations you have.
I suggest Miss Stephanie Aaron Trentham is extremely good on that. She is really good on what she does, Now I can pay so many bills because of her help.
This is correct, Stephanie strategy has normalized winning trades for me also, and it's a huge milestone for me looking back to how it all started..
The first step to successful investment is figuring your goals and risk tolerance either on your own or with the help of a financial professional but it's very advisable you make use of professional
Yes, I agree with you. Her platform is wonderful, and her strategies are exceptional
Please educate me. I've come across this name before. Now I am interested. How can I reach her?
So, here is the key. Your portfolio needs to be so big that after taking out your expenses, your portfolio keeps growing at least above the inflation rate. Otherwise it will end up eventually running out. Example. You have expenses of 2000€ per month. You only do index investing so S&P500. Thats 9% per year. Inflation or money supply expansion is 7% per year. So, your expenses must fit into the 2%. That means your portfolio needs to be 1,2 mil€ in size in todays money. Ofc, I'm currently excluding taxes, for the sake of simplicity.
Stop spending so much money. Problem solved
CONGRESS CREATED THE LAW.
Sure but Joe Biden pledged to not raise taxes on anyone making less than $400k and the expiration of the Trump tax cuts does precisely that.
@@DavidMcKnight The expiration of the tax cuts happens no matter who is in the White House. Congress can make a change or not make a change. Blaming this on Biden is silly - as you apparently know Congress needs to act. So let's point the finger at them as is appropriate.
Biden had ample opportunity to rally Congress and extend the tax cuts for those making less than $400k. Republicans would have been game. But he’s letting them expire for those income levels, in violation of his campaign promise.
@@DavidMcKnight We constantly deflect from Congress and blame the White House. Congress has the ability to take action without the President and they're not interested right now. Congress creates the budget -- Not the President. If he fails to sign it they can override him. If you're going to make claims then please share the whole picture, not just that part which fits your narrative. Do we see the Republicans members of congress jumping up and down about extending this? NOPE.
@@burtking4270 It’s a completely apolitical statement and I have no narrative. It’s beyond dispute that Biden promised to not raise taxes on those making less than $400k yet in 2026 their taxes WILL go up. In the meantime he made no effort to honor this promise. I said the same thing about Trump when he went back on his campaign promises.
I like how you cleverly avoided calling him a flat out “ liar “ 😄
So 8% is fine if you have a few million in the pot ? Therefore. Should be a table or graph showing the percent you can withdraw based on age and pot size
There is definitely not a 15% chance you run out of money before live expectancy using 4% rule man cmon.
So what’s the number?
@@DavidMcKnight the only issue i took with your comment was when you said “by life expectancy” According to the life expectancy tables, a 60 year old man has a life expectancy of 20 years. There is a near zero chance of running out of money after 20 years in a 60/40 portfolio. Over 40+ years is when the number starts to creep up north of 15% if you get a bad sequence
So then don't do the 2nd part and you won't have that prob. Is it his fault for people making their own bad decisions?
I mean, the people he helped, believe in him, then they will listen to his advice.
You're not telling the whole story about the 4% rule compared to annuity @ about 2:40. The annuity that I suspect that you're talking does not have any inflation adjustment, where as the 4% rule does.
Who made more millionaires? You or Dave?
Hi David, I just finished reading "Look Before You LIRP" and really enjoyed the "laundry list" approach for finding the right IUL. I have a couple of quick questions: 1. I noticed you used the term "Long Term Care" instead of the more commonly seen "Living Benefits" in policy wording. Is there a specific reason for this choice? 2. In your opinion, which three carriers best comply with the "laundry list"? Regards, AJ
Ramsey is too aggressive for me. I want to enjoy my retirement $$$, but not at the cost of moving in with one of my children when I’m 80. Cautiously spending and planning works for me.
How is Dave going to be mad at this claiming that it makes people feel like the goal is unattainable when he preaches buying a home with 20% down on a 15 year fixed? Isn’t that also unattainable for the majority of Americans making them feel like they’ll never be able to buy a home? Seems a bit hypocritical.
Great point.