Dave Ramsey recently eviscerated his co-host George Kamel for preaching the 4% rule.

According to George, withdrawing only 4% of your savings is the easiest way to guarantee your money lasts throughout retirement.

George further adds that the 4% rule is a math-based approach to sustainable withdrawals in retirement.

For Dave Ramsey, the 4% is senseless and only geared toward stealing people’s hope for a brighter retirement.

He believes an 8% withdrawal rate is more sustainable since your savings will be growing at a rate of 12%; factor in 4% for inflation, and you’re left with 8%. 

It’s clear Dave Ramsey is oblivious to the sequence of return risk, which could force you to run out of money 15 to 20 years early if you experience a series of negative returns in the first decade of retirement. 

The fact is, even if you average 12% rates of return throughout retirement, you won’t be getting 12% every single year. Some years, you’ll get 20%, and other years you’ll get -26%. 

David explains that the 4% rule gives you peace of mind that regardless of the swings in the market, you’ll have a reasonably high chance of not outliving your money.

Because Ramsey has millions of dollars, he has the license to utilize planning assumptions that are wildly at odds with history and academic research.

If you’d like a stress-free retirement, ignore Dave Ramsey’s advice and embrace strategies that are built on sustainable retirement planning principles like the 4% rule.

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 three main types of tax-free retirement advisors and the one that will guarantee a hassle-free retirement.

The first type of advisor is the TikTok advisor. This is the advisor who will preach the prospect of dramatically higher tax rates in the future.

The only downside to their message is that they believe the only way to shield yourself from the rising tax rates is to put all your retirement savings into an IUL.

If you believe in a balanced and comprehensive approach to retirement planning, steer clear of these types of advisors.

It’s unwise to build a retirement plan on the foundation of an IUlL and exclude every tax-free alternative in the tax code.

The second type of advisor is the one who believes in tax-free retirement planning but is not acquainted with the data that proves tax rates will rise dramatically in the future.

If you are interested in shielding your assets against the impact of higher taxes, avoid these types of advisors like your retirement depends on it. Because it does. 

The third type of advisor is knowledgeable on data that proves tax rates will dramatically rise in the future and advocates for a balanced, comprehensive approach to tax-free retirement. 

If you believe that tax rates in the future will be dramatically higher than they are today, then you also need to recognize that not all financial advisors are equally equipped to help shield your retirement savings from those higher taxes.

Your job as an investor is to get an advisor who understands the unique fiscal challenges facing our country and understands that the best way to protect yourself from those challenges is to implement a balanced, comprehensive approach to tax-free retirement. 

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 breaks down a recent Dave Ramsey interview where he advised a 50-year-old widow on the best way to save, invest, and withdraw her retirement savings.

According to Ramsey, if the lady invests $1000 every month for 15 years, she will have accumulated $500,000, which gives her permission to withdraw 10% of her savings every year for the rest of her life. 

The problem with this recommendation is that she will likely earn 9% returns per year, not 12%. 

She is also more likely to run out of money before running out of life if she withdraws 10% of her savings every year. 

The gaping hole in Dave Ramsey’s investment approach is that he seems to have a limited understanding of the sequence of return risk. This is the order in which you experience investment returns in retirement.

Generally, it’s safe to show future returns based on a historical track record consistent with your future investment horizon.

For example, if you want to know what rates of return you’ll likely experience in the next 15 years in the S&P 500, you need to look at how the index performed in the past 15 years. 

According to David, Ramsey’s overly inflated retirement variables are setting his listeners up for failure. By inflating his assumptions, Dave Ramsey gives his listeners an overly optimistic view of how much money they must save to reach their retirement goals.

But why does Dave Ramsey have such a flawed view of retirement planning?

David believes it comes down to two things:

1. Dave Ramsey likes to portray himself as the retirement planning outsider who is at war with the mainstream financial planning community.
2. He believes that if he can show his followers lucrative investment projections, more of them will sign up for his financial independence programs. 

Don’t be seduced by Ramsey’s inflated rates of return or his massive withdrawal rate assumptions. You’re much better off using a 9% rate of return and a 4% sustainable distribution in retirement.

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 part three of David’s interview with Power of Zero Advisor Terry DuPont. 

Trump tax cuts were not permanent – David explains why 2026 is going to be a key year for that.

In his book Comeback America, former Comptroller General David Walker predicted that, by 2023, tax rates would have to double – or more – to keep the U.S. solvent.

David shares what he believes people should do in the next few years as the country approaches an “apocalyptic” scenario.

Terry DuPont is amazed by the fact that families and individuals don’t seem to understand the fact that the largest expense in their lifetime will continue to be the same.

According to Terry, the main issue is that people don’t calculate that expense into their future.

Terry asks David about the one thing he knows now that he wishes he knew when he started.

David opens up about the role David Walker has played in his journey as well as about his definition of success.

David warns people against letting a year go by without taking advantage of historically-low tax rates.

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

Terry DuPont

Comeback America: Turning the Country Around and Restoring Fiscal Responsibility by David Walker

Bill Clinton

David Walker on 60 Minutes

Why Your Taxes Could Double (2009 CNN article by David Walker)

I.O.U.S.A. (2008 documentary featuring David Walker)

Today’s episode is part two of David’s interview with Power of Zero Advisor Terry DuPont. 

David talks about the approach many major money management institutions follow, and how it differs from how David and Terry do things.

There are situations where large money management institutions forbid their advisors from ever bringing up, for example, Roth conversions.

David invites listeners to browse the web trying to find a Ken Fisher article discussing the benefits of a Roth conversion.

David discusses what makes the Power of Zero approach stand out in the financial planning industry.

People seem to be hungering for real solid strategies that can help insulate them from the impact of rising taxes, says David.

David lists a few reasons why the advice people may get from gurus like Dave Ramsey or find on platforms like TikTok isn’t useful.

David recommends having a balanced and comprehensive approach to tax-free retirement that takes advantage of all the nooks and crannies in the IRS tax code.

There are different things David likes about Roth IRAs, Roth 401ks, Roth Conversions, Life Insurance Retirement Plans, and tax-free social security – he touches upon them.

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

Terry DuPont

Ken Fisher

Fisher Investments

Dave Ramsey

Suze Orman

Today’s episode features some of the highlights of David’s appearance on the Your Money with David Hays podcast.

David touches upon what he would focus on and how long he believes he would last if he were president of the U.S..

David’s next book will probably have the title Guru.

For a while, David Hays has half-jokingly said that he would accept the responsibility of mayor.

David introduces two perspectives into the picture: the point of view of financial gurus like Dave Ramsey and Suze Orman, and that of Ed Slott – whom USA Today dubbed “America’s IRA Expert.” 

Many people underestimate the financial costs of long-term care for their parents, spouse, or partner, says David.

David illustrates the traditional way to approach long-term care and what would make the most sense for those thinking about it for their loved ones.

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

Your Money with David Hays

Dave Ramsey

David M. Walker

Bill Clinton

George W. Bush

Shark Tank

Suze Orman

Ed Slott

USA Today

In a recent interview, Dave Ramsey claimed he beat the S&P 500 over the last 30 years because “it’s not hard to do.”

The big question is, is it really that easy to beat the S&P 500 over time?

According to David, it’s not. In fact, most active fund managers fail to do it over time.

A recent study revealed that 85% of fund managers underperformed in the S&P 500 in the last ten years - this underperformance caused the disappearance of mutual funds altogether. 

Based on these stats, how do we rate Dave Ramsey’s claims that he outperformed the index by 12% and 13% in some years?

David believes it’s not advisable to collect all your money and move the index fund route. The first step should be seeking the services of a financial advisor.

Good financial advisors will more than offset whatever fees they charge you in the form of enhanced returns that stem from sticking to your investment goals.

Unfortunately, most investors let their emotions undermine their investment decisions. We’re supposed to buy low and sell high, but most investors do the opposite. Fuelled by emotion, they buy high and sell low.

For David, a good financial advisor will help protect you from yourself and remind you of the plan you created and why you need to stay on track toward your goals.

It doesn’t matter how much money you have. It only matters how much you actually get to spend after taxes.

The three main takeaways from Dave Ramsey’s claims about beating the S&P 500:

Take everything Dave Ramsey says with a grain of salt. His entire business is built on making investing seem easier than it actually is.

Beating the S&P 500 is not as easy as Dave Ramsey claims.

You need a qualified financial advisor to help you yield much higher returns over time to increase the likelihood that your life savings will last through life expectancy. 

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 breaks down a recent article by financial advisor Brian Manderscheid on what insurance agents don’t tell you about Indexed Universal Life (IUL).

David talks about the risk of consuming financial content online without seeking professional advice when making significant financial decisions.

David reveals how the claims made by financial influencers tend to be overly promissory and exaggerate what the IUL can actually do for your retirement portfolio.

He further adds that IULs were never exclusively available to the wealthy, and you should not expect 10% plus returns.

In Brian’s article, he describes why you must have a life insurance need before investing in an IUL.

If the IRS is willing to give you the benefit of a nearly unlimited bucket of tax-free dollars, you have to be willing to pay for life insurance and have the need for life insurance.

According to Brian, you need to structure your IUL correctly if you are to enjoy all the perks that come with owning an IUL.

David agrees with Brian’s views on the proper way to structure an IUL. 

In order for the IUL to work, you must buy as little death benefit as the IRS requires and pump in as much money as the IRS allows. Your goal is to go after all the benefits of a Roth IRA without all the limitations of owning a Roth IRA. 

According to David, IULs only work when considered as part of a balanced, comprehensive approach to tax-free retirement. 

David talks about the lies peddled by financial influencers online - they focus less on creating reliable and accurate content and more on likes and views. 

As an investor, it’s very important not to conflate actual historical returns with retro-engineered returns when considering an IUL. Anyone can create a retro-engineered index that looks great on paper. 

David is much more impressed with an actual track record, even if that track record nets you only 5 to 7% net of fees over time. 

One of the things not discussed in Brian’s article is how most solid IUL carriers give you the ability to receive a death benefit in advance of your death to pay for long-term care.

For David, Brian’s piece is one of the more accurate IUL articles on the internet 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

David gives a 1-minute summary of all his books on retirement. 

The Power of Zero: How to Get to the 0% Tax Bracket and Transform Your Retirement.

• The book outlines a step-by-step plan for getting to the 0% tax bracket in retirement, because if tax rates double, as some experts predict, two times zero is still zero.

Look Before You LIRP: Why All Life Insurance Retirement Plans Are Not Created Equal, and How to Find the Right One for You. 

• David explains that while various LIRPs may help get you to the 0% tax bracket, not all will do so with the same efficiency or effectiveness. In fact, finding the right LIRP for your tax-free retirement plan can be just like finding the ideal spouse. Just as you likely had a list of qualities you were looking for in a life-long partner, you should have certain attributes and provisions in mind when looking for the ideal LIRP.

The Volatility Shield: How to Vanquish the 4% Rule & Maximize Your Retirement Income. 

• In this book, David breaks down financial truths that challenge conventional wisdom and reveal the gaping hole in people’s retirement picture. He also reveals how you can open a volatility shield account that allows you to pay for your retirement living expenses in the year following a down market. 

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

• David lays out a comprehensive, step-by-step roadmap for a secure retirement and how to shield yourself from longevity risk as well as the unintended consequences of higher taxes. 

The Infinity Code. 

• This book speaks of the evils of the modern monetary theory, which says that we can print an unlimited amount of money to pay for our nation’s burgeoning debt load. 

David shares insights from his upcoming book, Guru. 

• Americans love charismatic gurus who dish out one-size-fits-all financial advice that is easy to digest and implement. 
• However, the dumbed-down financial advice offered by Dave Ramsey and other gurus is good for bad investors but bad for good investors. David believes that while these financial gurus sometimes dispense good advice, it’s nearly always at the expense of the best 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

Comeback America: Turning the Country Around and Restoring Fiscal Responsibility by David M. Walker

David reviews an anti-IUL book, LAPSED, written by financial advisor Elan Moas, who believes IULs are designed to fail rather than succeed.

According to David, the book is written with dramatic and highly-charged rhetoric around what will befall you if you make the mistake of purchasing an IUL.

So the big question is, “Are IULs too good to be true?”

For David, IULs do exactly what they're meant to do. Their true purpose is to give you stock market exposure up to a cap with a guarantee against market loss.

IULs are not meant to be a stock market alternative. They are a bond alternative with returns of between 5% and 7% net of fees over the life of the program. 

Insurance companies don't make money on Cap Rates. Cap Rates are a function of two things. First is the cost of options, which is informed by the volatility of the stock market. And second, the carrier's options budget, which is a function of interest rates.

David debunks Elan's theory on how IUL providers are intentionally and aggressively working to confiscate your money.

David shares a chart showing return rates from real and highly-rated IUL carriers. 

Only when you see that the author is out to sell you a whole life insurance policy will you understand the motivation behind his misinformed book.

David believes the author's goal is to scare people out of their perfectly adequate IULs into a whole life policy that he would be more than happy to facilitate. 

If you like whole life insurance, great. If you like IULs, great. But please don't waste everybody's time with intentionally misleading scare tactics.

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