The Power Of Zero Show David McKnight

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 independence following Ramsey’s advice will run out of money before they run out of life…two-thirds of the time!
David believes that Dave Ramsey is good for bad investors, but bad for good investors – and cites a couple of examples to illustrate that.
David talks about why he believes Ken Fisher is averse to bringing up Roth conversions to his clients and prospects.
There’s a key difference between Ken Fisher and the likes of Dave Ramsey – David tells it all.
David opens up about something he’s really excited about regarding his new book.



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
Dr. Wade Pfau
Tom Hegna
Graham Stephan
Power of Zero YouTube Video Dave Ramsey Eviscerates Co-Host George Kamel for Preaching the 4% Rule
Clark Howard

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 retirement.
According to David, the problem with most financial gurus is that they're trying to appeal to as broad an audience as possible. To do that they dispense one-size-fits-all financial advice.
Unfortunately, because of this really broad un-nuanced approach, most financial gurus cannot stay behind products like permanent life insurance that require nuance.
David reveals that his main goal is to uncover sustainable retirement strategies and help people wring the most efficiency out of their retirement plan.
David and Chris agree that people should not take financial advice from advisors on TikTok.
David further explains why TikTok is not his favorite place to get financial advice. 
 
 
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

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 living expenses in the year following a downturn in your stock market portfolio.
According to David, the benefit of doing so is it gives your stock market portfolio a chance to recover before taking further distributions.
If you’re 50 years or younger, put 30% of your retirement savings towards cash value life insurance. This move alone will double your sustainable withdrawal rate in retirement.
So, if you’re saving 25% of your income for retirement, David recommends putting around 8% into a cash value accumulation product.



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

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 insurance as a volatility shield/buffer.
The only way to get an 8% distribution rate in retirement is by utilizing a financial tool that Dave Ramsey says is a hot pile of garbage: cash value life insurance.
The reason why David likes IUL is because history shows that you can get five to seven percent net of fees over time in your IUL.
David talks about something he dislikes in Ramsey’s views on IUL and that many “gurus” such as Suze Orman, Clark Howard, and Ramit Sethi say it’s a scam.
“The IUL is not a stock market replacement, it’s a bond alternative,” 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
Arturo Johnson
Dave Ramsey
Suze Orman
Clark Howard
Ramit Sethi
George Kamel
Tom Hegna

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