The Power Of Zero Show David McKnight

David talks about what tax brackets will look like starting from January 1st 2026. 
One of the things that will change in 2026 are the actual tax rates – with an increased percentage of tax attached to a given range of income.
In 2026, tax rates will return to what they were in 2017.
David points out that some people online mistakenly believe that, in 2026, things will simply revert back to the same tax rates of 2017, with the same income ranges attached to those rates.
An important thing to note is the federal government will index the 2017 tax brackets for inflation, treating your 2026 tax bracket as if the tax cut had never happened.
David shares a fairly accurate way of determining what your tax brackets are likely to be and what it will end up costing you. 
Those in the 24% tax bracket or lower will see a slight uptick in their taxes in 2026 – not because of tax bracket compression but due to their tax rate increasing.
David sees doing a Roth conversion as a huge planning opportunity to protect yourself.
The idea is to take advantage of the Trump tax cuts while they’re still around so that, by the time they expire, you’ll have safely transferred a portion of your retirement savings to Roth IRAs.
David believes that, even though tax rates will go up in 2026, they’ll increase even further in 2030 and 2031 to pay for interest on the national debt in Social Security, Medicare, and Medicaid.
 
 
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
DavidMcKnight.com
DavidMcKnightBooks.com
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

David talks about the Power of Zero “philosophy,” as well as a recent Penn Wharton study saying that, if all we do is continue on this same course, by 2043 there will be no arrest in the financial collapse of our country.
95% of Americans have the lion’s share of their retirement savings sitting in what we call tax-deferred vehicles like 401(k)s and IRAs.
A big problem most Americans face: every year the IRS gets a vote on what percentage of your profits they get to keep.
David shares the Power of Zero origin story and he explains what someone should do to get as close as possible to someone else.
David addresses the question “Where should we be investing our retirement dollars?
$29,200 is the limit under which you’ll get to experience the water.
“A lot of people don’t realize that their social security number can be taxed,” says David.



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
DavidMcKnight.com
DavidMcKnightBooks.com
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
Penn Wharton
The Insurance Buzz

Today’s video is from David’s conversation with financial advisor Bruce Hosler.
They discuss why financial advisors like Ken Fisher don't want you to do Roth conversions.
David reveals why there is a lot of incoming resistance from financial "Gurus" about moving to tax-free and using the tools necessary to get to the 0% tax bracket.
David talks about his new book, Guru, and all of the interference he’s facing in trying to get the Power of Zero message out to the American people.
Most of these gurus believe that tax rates in the future are likely to be higher than they are today. But when you go to their websites, there are no practical strategies on exactly how you should arrange your assets to best shield yourself from the impact of higher taxes.
David highlights why Dave Ramsey is against any form of permanent life insurance. He even has a famous quote, “Permanent life insurance is 100 % crap, 100 % of the time.”
If you can fund your lifestyle out of your cash value life insurance in the year following a down year in the stock market, it gives your stock market portfolio a chance to recover before you take further distributions.
David explains how this act alone can increase the sustainable withdrawal rate on your stock portfolio from 4 % to 8%.
David and Bruce agree that people need to find ways to create multiple streams of tax-free income from multiple sources. 
David reveals that conflict of interest is what prevents fee-based advisors from promoting the power of zero message. 
David and Bruce talk about the unfunded obligation for Social Security, Medicare, and Medicaid--and the amount of money the government needs to have to pay for Medicare over the next 75 years.
Financial advisors are not educated enough about the reality of future higher tax rates. If they were, David believes they would be more familiar with the ways to mitigate against rising taxes down the road.
 
 
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
DavidMcKnight.com
DavidMcKnightBooks.com
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

How much of your social security is getting taxed, at what rate, and is there anything you can do about it?
Unfortunately, the IRS doesn't make it easy for people to understand how much of their social security is taxable and at what rate.
David explains that the best way to understand social security taxation is to first know about provisional income--this is the income the IRS tracks to determine how much of your social security will be taxable.
As you continue to increase your IRA distributions and, therefore, your total provisional income, the percentage of your social security that becomes taxable quickly begins to rise.
The IRS says that if your provisional income is between $32,000 and $44,000, up to 50% of your social security can become taxable.
Fortunately, there are some scenarios where you wouldn't pay any taxes, thanks to standard deductions. 
The most obvious thing to do if you don’t want social security taxation is to do a Roth conversion. 
According to David, any income taken from a Roth IRA does not count as provisional income and, therefore, does not count against the thresholds that cause social security taxation.
However, the only time it makes sense to do a Roth conversion is if you believe that your tax rate in the future is likely to be higher than it is today.
 
 
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
DavidMcKnight.com
DavidMcKnightBooks.com
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

This episode addresses whether the mainstream financial planning community is justified in avoiding Indexed Universal Life.
Lately, social media has been filled with videos praising the virtues of a financial tool known as Indexed Universal Life (IUL).
David explains why the IUL has been taking such a beating from traditional financial planners.
David discusses three different viewpoints against the IUL – including that of scammy salesmen on TikTok who often describe the IUL as “a stock market replacement on steroids.”
Financial gurus tend to be jack of all trades but masters of none with IUL critiques that are either plain wrong or far too simplistic, says David.
As a result of these groups’ cumulative efforts, IUL is widely viewed as a caricature of a financial product.
David goes over how to objectively evaluate IUL on its merits and shares three of its positive utilizations as a dynamic financial tool.
 
 
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
DavidMcKnight.com
DavidMcKnightBooks.com
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
Suze Orman
Dave Ramsey
George Kamel
Ernst & Young

David discusses how much of your IRA you should convert, in what amounts and over what time frame.
If you’re not convinced by the possible dramatic increase in tax rates in 2031 to bump you into the 32% bracket, you’re not alone…
A whole battery of experts predict that tax rates will have to rise dramatically to help service the national debt and with the $200 trillion in shortfalls in Social Security, Medicare, and Medicaid.
In Comeback America, former Comptroller General David Walker predicted that effective tax rates for all taxpayers need to double by 2030.
David touches upon what would happen if the government doesn’t increase its taxes by 2043.
David mentions what your Roth conversion roadmap should look like in the next 10 years – and beyond – if you have the lion’s share of your retirement savings in tax deferred accounts like IRAs and 401(k) plans.
There’s one thing that you shouldn’t do before the “tax deadline.” You should not bump into the 32% tax bracket or higher.
David goes over what he refers to as a “wait-and-see approach.”



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
DavidMcKnight.com
DavidMcKnightBooks.com
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
Penn Wharton