David starts by talking about the apocalyptic headwinds facing Social Security and Medicare and what it means for your retirement plan.

The Social Security and Medicare trust funds are projected to be insolvent by 2033, with the combined Social Security trust fund gone by 2034.

David explains why this isn’t just a distant problem: Without intervention, roughly 70 million Americans will face major benefit cuts—23% for Social Security, 11% for Medicare.

How this impacts you personally: If you're 59 today, you’ll reach full retirement age right as the trust fund runs dry. If you’re already retired, you may be affected in the next 8 years.

David outlines the government’s dilemma: Once the trust funds are depleted, benefits must be paid from incoming payroll taxes alone—which won’t be enough to cover promised amounts.

David shares why printing money isn’t a fix. Social Security and Medicare are tied to inflation, so printing more money only drives costs up.

Why taxing the rich is not the answer. Even if the government confiscated 100% of billionaire wealth, it would only fund the federal government for 11 months—not solve the long-term problem.

David reveals what you can do now. Start saving as much as you can today. Even a small increase—automated every 6 months—can plug the future gap in your benefits.

How to use tax-free accounts strategically. Roth IRAs, Roth 401(k)s, and properly structured life insurance can help shield your retirement from rising taxes.

David explains that Roth withdrawals don’t count as provisional income—keeping your Social Security potentially 100% tax-free.

How to soften the blow of benefit cuts: Keeping your Social Security tax-free preserves more of your income and helps offset reductions in government programs.

With Trump’s tax cuts possibly extended, you could have until 2033 to shift your retirement savings while tax rates remain historically low.

How to avoid future tax pain: David recommends shifting to tax-free accounts slowly enough to avoid “tax bracket heartburn,” but fast enough to finish before tax rates rise.

Why aiming for the 0% tax bracket matters: If tax rates double in the future, two times zero is still zero. The less taxable income you have, the more secure your retirement.

 

 

Mentioned in this episode:

David’s national bestselling book: The Guru Gap: How America’s Financial Gurus Are Leading You Astray, and How to Get Back on Track

DavidMcKnight.com

DavidMcKnightBooks.com

PowerOfZero.com (free video series)

@mcknightandco on Twitter 

@davidcmcknight on Instagram

David McKnight on YouTube

Get David's Tax-free Tool Kit at taxfreetoolkit.com