David McKnight discusses the three assets he believes you really need for a stable, predictable tax-efficient retirement.

Getting them right will dramatically reduce the risks that derail most retirements: Market risks, sequence of returns risks, longevity risks, tax risks, and long-term care risks.

Stock market investments, with a 70% total US stock market index and a 30% total international stock market index, are the first thing David recommends.

He defines them as "Your growth engine, the one that pays for your discretionary expenses in retirement."

David goes over aspirational and shock expenses.

A Fixed Index Annuity (or FIA) is the second asset you'll need in retirement.

A FIA is the one asset that eliminates the longevity risk, the risk of living so long that you deplete all your other assets.

Then there's Index Universal Life Policy (or IUL).

A recent Ernst & Young study found that retirement plans that included IULs, as well as FIAs, provided more income in retirement, a higher likelihood of money lasting through life expectancy, and more money to heirs over the investment-only approach to retirement."

Remember: If you withdraw money from your stock portfolio in a down market, you lock in losses and your portfolio has a much harder time recovering.

In other words, the IUL acts as your retirement shock absorber.

Did you know that, because of its safe and productive growth, the IUL can serve as what we call a "volatility buffer" in retirement?

And there's more! In fact, an IUL can also serve as a bond alternative during the accumulation years – but without the interest rate risk or bond price volatility.

David sees IULs as the most dynamic asset of them all – it's your volatility buffer, your bond alternative, and your long-term care safety net.

Mentioned in this episode:

David's new book, available now for pre-order: The Secret Order of Millionaires

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

Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight

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

Ken Fisher

Ernst & Young

David McKnight explores the five biggest retirement mistakes people make.

When it comes to retirement "traps", the obvious things such as picking the wrong stock, missing the next bull market or retiring at the wrong time are what typically comes to mind…

The first mistake people tend to make when it comes to their retirement is believing that tax diversification is good enough.

"Having the bulk of your wealth in tax-deferred accounts is like going into a business partnership with the IRS: every year, they get to vote on what percentage of your profits they get to keep. Not a very good business partnership, if you ask me," says David.

The next mistake is one of the most subtle and expensive mistakes retirees make: ignoring the standard deduction when doing Roth conversions.

The third big retirement mistake people make is trying to time the market instead of timing the tax code.

Remember: "Markets move up and down, but when a country is in a debt crisis, tax rates only move in one direction: Up!"

Are you using bonds as safe money in retirement? That's what the fourth retirement planning mistake David has encountered often in his busy work schedule.

David suggests to time the tax code, instead of timing the market…

Replacing your bonds with annuities that have a guaranteed lifetime income feature is something you should consider.

The fifth and final mistake to stay away from is not taking enough risk in retirement.

David explains that your annuities can provide income in the year after a down year in your stock portfolio. That gives your stocks a chance to recover before you take further distributions.

Don't forget, the stock portion of the portfolio has one job and one job only: Make sure your money lasts a full 30-year retirement.

Mentioned in this episode:

David's new book, available now for pre-order: The Secret Order of Millionaires

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

Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight

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

Tom Hegna

The focus of this episode is on what Dave Ramsey refers to as the only three investments he owns.

"I have three investments: my business, paid-for real estate with no mortgages, and mutual funds," says Ramsey.

He goes on to emphasize that he doesn't play single stock, doesn't screw around with gold or Bitcoin, and that he doesn't need your stock tip from your "broke golfing buddy with an opinion."

Host David McKnight wonders whether Ramsey's investment model actually works in principle, and if parts of it can be replicated by everyday investors…

Ramsey's business functions in two powerful ways: it provides current cash flow so he doesn't have to draw down investments, and it represents a large future liquidity event – this alone dramatically reduces the pressure on the rest of his portfolio.

David highlights the fact that Ramsey doesn't pick individual stocks. Instead, he spreads his money across the entire global stock market using mutual funds.

Ramsey famously advocates an even split: 25% in growth and income funds, 25% in aggressive growth funds, and 25% in international funds.

David's recommendation is to "Invest 70% in a total U.S. stock market index, 30% in a total international stock market index, and 0% in bonds."

By doing that, you'll own the entire market instead of trying to outsmart it.

It is possible to adopt a 100% stock portfolio even if you don't own a business or don't have a paid off real estate throwing off residual income – David explains how.

You could have a guaranteed lifetime income annuity have the same role played by real estate in Dave Ramsey's approach.

Mentioned in this episode:

David's new book, available now for pre-order: The Secret Order of Millionaires

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

Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight

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

Dave Ramsey

David McKnight addresses a myth floating around the financial world: "For a Roth conversion to make sense, you need many years for the Roth to grow so you can recoup the taxes you paid to the conversion."

David stresses why this way of thinking is fundamentally wrong – it's built on the wrong assumption that all the money in your IRA belongs to you… when it actually doesn't.

Remember: your IRA isn't one pile of money but two piles sitting in the same account. One pile belongs to you, while the other to the IRS.

What's unknown is how big the IRS' pile is going to be when you eventually take the money out of the account.

David goes on to explain what happens as both piles grow and required minimum distributions kick in.

You may end up with the IRS' pile being not just larger but taxed at a much higher rate too.

With a Roth conversion, on the other hand, your conversion translates into you carving out the IRS' portion and handing it to them today – settling the bill while the balance is smaller and the rate may be lower.

There's a key question David invites you to keep in mind when it comes to Roth conversions: "Is your tax rate lower today than it will be when you take the money out?"

The exploding national debt of over $200 trillion dollars in unfunded obligations for Social Security, Medicare, and Medicaid are going to require spending cuts, higher taxes, or some combination of the two.

Beware: the problem with most retirement plans is that they assume that tax rates will stay low forever!

David points out that Roth conversions aren't about timing the market but about timing the tax code.

In other words, they're about timing the advantage of known measurable tax rates today instead of gambling on unknown ones tomorrow.

Mentioned in this episode:

David's new book, available now for pre-order: The Secret Order of Millionaires

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

Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight

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

This episode revolves around President Donald Trump's claim that, due to the massive tsunami of tariff revenue that's flowing into the U.S. coffers, Americans won't have to pay income tax in 2026.

David McKnight looks at the 2025 fiscal year: the Federal Government spent about $7 trillion and brought in about $5 and a quarter trillion in revenue.

While breaking down the math related to the 2025 fiscal year, David points out that "Revenue from income taxes is the single largest source of Federal revenue", while "Tariffs, by contrast, are one of the smallest."

Even Trump's own economic team, including Treasury Secretary Scott Bessent, has said that in an extremely optimistic scenario, tariff revenue might someday reach $500 billion a year – which is only about ⅕ of what gets collected in income taxes.

By looking at the numbers, it's clear that the proposed tariff-funded $2,000 check for each of the 340 million Americans wouldn't work: it would cost roughly $680 billion against a tariff revenue that only amounts to $195 billion…

David clarifies a key point about tariffs. They're not paid by foreign governments, they're paid by U.S. importers. In other words, tariffs are simply a tax on consumers.

There's an additional problem that shouldn't be overlooked. Not only do tariffs not generate enough revenue, but they can also lead to retaliation by other countries imposing their own tariffs on American exports.

This means that an American effort to try to raise trillions of dollars through tariffs could end up costing heavily on its own people.

David is crystal clear: While these types of claims make for great sound bites, the federal budget still has to obey the mathematical laws of the universe, and the math makes it clear: There's no world in which tariffs could ever eliminate the need for an income tax.

By the look of things, the U.S. is marching into a future where the federal government will soon need huge infusions of cash just to pay the interest on its exploding national debt.

To forestall this, the U.S. government will have to double federal income taxes in or around 2035.

That's why, David says, having a dialed-in strategy to get your retirement savings shifted from 401(k)s and IRAs to Roths is more important than ever.

Mentioned in this episode:

David's new book, available now for pre-order: The Secret Order of Millionaires

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

Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight

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

President Donald Trump

Treasury Secretary Scott Bessent

Wharton School of the University of Pennsylvania

David McKnight addresses a brand new proposal that could transform the way Americans use Roth IRAs and Roth 401(k) – and that could have serious implications for your retirement flexibility, liquidity, and long-term tax strategy.

With the current status quo, if a person has money in a 401(k) or even a Roth 401(k), they can usually roll it out into an IRA when they retire or leave their job.

However, money can't roll the other direction: you can't take a Roth IRA and move it into a Roth 401(k)...

A new bipartisan bill introduced by Republican Representative Darin LaHood and Democrat Representative Linda Sánchez aims to change that.

Under this proposal, you could roll your Roth IRA into an employer-sponsored Roth account like a Roth 401(k), a Roth 403(b) or even a Roth 457 plan.

This change could mean less paperwork, potentially lower fees, and a simpler investment picture.

David cites simplicity, cost and protection as a few of the reasons why lawmakers may want this bill to pass.

One of the incentives for Washington may have to do with the fact that encouraging people to use Roth accounts – which are taxed up front – can generate more short-term tax revenue for the government.

Everything isn't as good as it seems, though. David lists a few of the trade-offs involved with this potential change.

Firstly, loss of control. When your money is in a Roth IRA, you can invest it wherever you want: Index funds, EFTs, individual stocks, and more. With an employer plan, your investment menu would be limited by the options the plan administrator offers.

The so-called Five-Year Rule is another aspect worth considering.

Typically, every Roth account has to be open for at least five years or until 59 ½, whichever is later, before earnings can be withdrawn tax-free.

Here's the tricky part: Each different kind of Roth account has its own five-year clock. This could turn into a logistical nightmare for plan administrators.

David shares some final considerations regarding who would benefit and who may get negatively affected by the proposed bill and points out that "Not all Roths are created equal."

Mentioned in this episode:

David's new book, available now for pre-order: The Secret Order of Millionaires

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

Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight

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

Darin LaHood

Linda Sánchez

Employment Retirement Income Security Act (ERISA)

In today's episode, David McKnight breaks down the creditor protection rules for Roth IRAs and Roth 401(k)s, as well as why more and more Americans are turning to tax-free accounts to insulate themselves from creditors… and the Government itself.

In theory, under Federal Law, all IRAs traditional or Roths receive a certain level of bankruptcy protection under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.

However, that protection is specifically tied to bankruptcy proceedings. If you're sued in civil court, the Federal bankruptcy statute doesn't automatically apply, state law takes over…

By pointing out differences between states like Texas, Arizona and Florida on one end, and California and Montana on the other, David explains that whether your Roth IRA survives a potential lawsuit intact depends largely on the state in which you reside.

Roth 401(k)s play by a different set of rules, as they fall under the 1974 Employee Retirement Income Security Act (ERISA).

David notes that "ERISA is the big Federal law that governs most employer-sponsored retirement plans, and it comes with some of the strongest creditor protection available anywhere in the financial world."

According to David, it's not hard to see why the Federal Government is going to need huge infusions of new revenue in the very near future.

Wondering how they will be raising that capital? By targeting the nearly $45 trillion in tax-deferred retirement accounts like IRAs and 401(k).

In other words, while your retirement accounts may indeed be largely immune to lawsuits, they're entirely exposed to the impact of rising tax rates.

David points out that contributing to 401(k)s or IRAs is like going into a business partnership with the IRS – every year, they get to vote on what percentage of your profits they get to keep.

Remember: a well-planned Roth strategy doesn't just shield you from tomorrow's higher tax rates, it can also serve as a fortress protecting your wealth from outside claims.

Mentioned in this episode:

David's new book, available now for pre-order: The Secret Order of Millionaires

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

Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight

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

Bankruptcy Abuse Prevention and Consumer Protection Act of 2005

Employee Retirement Income Security Act of 1974 (ERISA)

This episode features David McKnight sharing the top five reasons why a Roth 401(k) is far superior to a traditional 401(k).

Something important to keep in mind: the decision you make today will determine how much of your retirement money your future self actually gets to keep.

David touches upon the fact that choosing the wrong 401(k) could cost you hundreds of thousands of dollars in unnecessary taxes in retirement.

Tax rate risk is the first big reason why you should consider investing in a Roth 401(k) over a traditional 401(k).

David lists a series of key questions people who invest in a traditional 401(k) often fail to ask themselves.

The second reason to consider a Roth 401(k) over a traditional 401(k) is Social Security taxation.

Most people believe that Social Security is tax-free…but it's not.

50% of your Social Security, plus wages, pensions, and interest, as well as all withdrawals from traditional IRAs and traditional 401(k)s, are what the IRS counts as provisional income.

The third reason for choosing a Roth 401(k) and not a traditional 401(k) has to do with something that most retirees never plan for: Income-Related Monthly Adjustment Amount (IRMAA).

Remember: "When you control your taxable income, you control your Medicare costs."

Required Minimum Distributions (or RMDs) are the fourth reason for opting for a Roth 401(k).

The fifth reason for going for a Roth 401(k) instead of a traditional 401(k) has to do with your heirs. When they inherit a traditional 401(k), it becomes a tax bomb.

So, why choose a Roth 401(k) over a traditional 401(k)? Because a Roth 401(k) helps you eliminate tax rate risk, avoid Social Security taxation traps, prevent Medicare premium explosions, stay in control of withdrawals, and leave tax-free income to your heirs.

Mentioned in this episode:

David's new book, available now for pre-order: The Secret Order of Millionaires

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

Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight

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

This episode sees David McKnight look at Suze Orman, who, despite being one of the most widely recognized financial voices in America, shares what appears to be incomplete advice.

David believes that Orman has done a lot of good for a lot of people thanks to her financial discipline-centered approach (in addition to being a big proponent of Roth IRAs).

He agrees with Orman: "Roth IRAs are powerful, no doubt about it. You contribute after tax dollars, your money grows tax-free, and, provided you meet the requirements, you can withdraw those funds in retirement 100% tax-free".

The U.S. is currently at historically low income tax rates and, thanks to the One Big Beautiful Bill Act, they have been permanently extended.

However, David shares that, when it comes to the IRS tax code, there's no such thing as a permanent extension.

David's pet peeve with Orman: getting money into Roth IRAs now (while tax rates are low) isn't something that will truly protect you from rising tax rates in retirement.

That's because a Roth IRA by itself isn't enough.

In his book The Power of Zero, David advocates for a balanced, comprehensive approach to tax-free retirement that draws from six different streams of tax-free income.

David goes through the six strategies and explains why you need each and every one of them if you want to land in the 0% tax bracket in retirement.

Mentioned in this episode:

David's new book, available now for pre-order: The Secret Order of Millionaires

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

Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight

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

Suze Orman

OBBBA (One Big Beautiful Bill Act)

David McKnight addresses three key questions you must be able to answer before executing a single Roth conversion.

Too many people go for Roth conversions without a game plan – this is something that can lead to overpaying taxes and running out of money sooner than anticipated.

David points out that if you can't answer the three key questions, you should stop and reevaluate because guessing here can cost you big.

"What's the total amount I should convert from my IRA or 401(k) to tax-free?" is the first and most critical of the three questions.

Remember, the goal of a Roth conversion isn't to get your tax-deferred bucket to zero at all costs. It's to get to the right amount of tax-deferred dollars shifted to tax-free, the amount that allows you to stay in the 0% tax bracket in retirement.

"How much should I convert each year?" is the second question and is about pacing your conversion so as to avoid unnecessary exposure to higher tax brackets.

The goal is to convert to Roth slowly enough that you don't rise into a tax bracket that gives you heartburn.

"Over what time frame should I complete my Roth conversions?" is the third question you should address before executing a Roth conversion.

Addressing each of the three questions helps you shift from Roth conversion guesswork to Roth conversion strategy.

Be careful. Most financial gurus will say "Roth conversions are great, just pay the tax and move on!"

Mentioned in this episode:

David's new book, available now for pre-order: The Secret Order of Millionaires

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

Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight

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

OBBBA (One Big Beautiful Bill Act)

Donald Trump

David Walker