The Power Of Zero Show

Thinking about doing a Roth Conversion? Beware: many people compare the wrong tax rates… a mistake that can lead to the wrong decision in retirement.

Join David McKnight to learn which of the two numbers you should be comparing instead and when paying the IRS today makes sense, and when it doesn't.

In this episode, David McKnight explains why a lot of people get the math wrong when deciding on a Roth conversion (hint: they compare the wrong tax rates).

The common approach is to compare your tax bracket today with the bracket yo...

When the stock market crashes, most people freeze.

Today, David McKnight explains why a Roth conversion may be one of the smartest retirement moves you can make while prices are down.

Find out how to turn a market downturn into a chance to build tax-free income for the rest of your life.

In this episode, David McKnight asks whether a stock market crash is really a better time to do a Roth conversion.

Every time the market crashes, you hear the same advice from financial advisors: this is a great opportunity...

Most retirees are told to spend one account at a time, but a smarter retirement planning strategy treats every account as part of a single income system.

David McKnight shows how to use the quiet early years of retirement to your advantage, and why the order you draw your income may matter less than you think.

One of the most common pre-retirement questions is which account to spend first: brokerage, IRA, or Roth IRA.

Conventional advice says spend taxable money first, then tax-deferred, and Roth last – David agrees with the first pa...

Financial planning expert Rob Berger says the biggest challenge in retirement planning is one that no one can solve, since nobody knows how long retirement will last.

David McKnight shares his disagreement, and explains why a financial product designed for exactly this problem – annuities – may be the answer.

In this episode, David McKnight responds to Rob Berger's video The Retirement Problem No One Can Solve.

Rob compares retirement to entering a race without knowing how long it is, how fast you can safely run, or when someone will tell you that you...

Viral TikTok "finfluencer" Tyler Gardner claims his 76-year-old father can stay 100% in stocks.

David McKnight breaks down exactly where that approach falls apart. Additionally, he reveals the retirement planning strategy that actually makes a 100% stocks allocation safe, so a market downturn doesn't force you to sell at the worst possible time.

In this episode, David McKnight fact-checks a viral TikTok video from "finfluencer" Tyler Gardner explaining why his 76-year-old father is still invested 100% in stocks.

David stresses that he doesn't have a problem with being invested 100% in stocks under the right...

The five years before retirement are what David McKnight calls the Retirement Danger Zone, a window where a stock market crash could trigger Sequence of Returns Risk and even derail a well-designed plan.

In this episode, he breaks down the retirement planning strategies that build an income floor, create a Volatility Shield, and protect your tax rate before it's too late.

In this episode, David McKnight talks all things "Retirement Danger Zone", the 5-year time window that precedes your retirement.

When you're 20 years from retirement and the stock market crashes, it...

If you've built up $1M in your IRA and $1M in taxable investments, David McKnight has a warning: every year that money stays put, the IRS gets to vote on your tax rate.

He breaks down a retirement planning strategy for gradually converting your IRA to Roth – fast enough to beat rising rates, slow enough to avoid painful brackets.

In this episode, David McKnight looks at what you should do if you have accumulated $1M in taxable investments, and $1M in traditional IRAs and are concerned about the possibility of higher taxes in retirement.

When is a good time to start your Social Security?

David McKnight reveals why smart retirement planning means waiting until age 70 for reasons that have nothing to do with a bigger check… and everything to do with the years in between being your best window for Roth conversions.

In this episode, David McKnight addresses one of the most common questions he gets from people approaching retirement: "When should I start taking Social Security?"

David believes that there's a compelling reason for having 70 as your default Social Security claiming age – and that isn't so that...

Should you stop your Roth conversions at the 22% tax rate, or push into the 24% bracket?

David McKnight responds to a viewer's detailed case for stopping early, revealing why optimizing this year's tax bill can be the wrong retirement planning move over a 30-year horizon. You'll discover his "rip the band-aid off" approach and why saving money on taxes today isn't a victory if it costs you more tomorrow.

In a recent video, David McKnight explained why he believes the 24% tax bracket is the sweet spot in the current tax code for Roth conversions.

...

Is putting your entire retirement planning strategy into 30-year treasuries really the safe bet it seems?

David McKnight reveals why this approach could expose you to two hidden risks, and explains how the stock market and annuities might hold the real key to protecting your income.

In this episode, David McKnight looks at whether putting your entire retirement portfolio into 30-year treasuries is the way to go.

While it may seem like a pretty compelling argument, there's a major problem with this strategy – and it comes down to two things: taxes and inflation.

Dave Ramsey says retirees can safely withdraw 8% a year from the stock market, but does his retirement planning math actually hold up?

David McKnight breaks down why Ramsey's approach overlooks a critical risk, and why annuities may be the missing piece to sustainably boosting your retirement income beyond the traditional 4% Rule.

In this episode, David McKnight examines Dave Ramsey's 8% withdrawal rate claim and why retirement planning may need annuities, and not just the stock market.

For Ramsey, you can take 8% per year out of your stock market portfolio in retirement, despite what other...

Most Americans hate annuities and would tell you to avoid them… But what if the version you've been warned about isn't the only option for retirement planning?

David McKnight breaks down a strategy that's quietly helping retirees sleep better at night and safeguard themselves against the 3 biggest annuities-related problems.

In this episode, David McKnight looks at three perfectly legitimate reasons why Americans have been reluctant to embrace annuities, as well as a solution.

The first problem is liquidity.

David points out that one of the biggest fears in retirement is running ou...

Should every dollar go into a Roth 401(k) if taxes will be higher?

David McKnight reveals why that instinct could actually be one of the most expensive tax decisions a high-income earner can make when it comes to retirement planning.

In this episode, David McKnight addresses two frequently asked questions: "If tax rates are going to be higher in the future, should I be putting every dollar into a Roth 401(k)?" and "Should I be converting as much of my IRA to Roth as quickly as possible?".

David believes that the current tax...

Should you stop doing Roth conversions as part of your retirement planning after Senator Ron Wyden's new legislation targeting specific retirement accounts? David McKnight breaks down the key aspects of the proposal and what it actually means for the average American (and their retirement).

In this episode, David McKnight looks at whether you should stop doing Roth conversions following Senator Ron Wyden's introduction of legislation for taxing Roth IRAs.

For David, 99.9% of Americans should continue investing in Roth accounts with a high degree of confidence.

One of the biggest misconceptions floating...

One spouse passes away, and suddenly the survivor is filing alone, pushed into tax brackets they never saw coming. David McKnight explains why a Roth conversion, done now through smart retirement planning, could spare your loved ones the painful surprise known as Widow's Penalty.

Show Notes

In this episode, David McKnight discusses something that could cause your taxes to rise dramatically even if Congress never raises taxes by a single percentage point!

That's the so-called Widow's Penalty, and it's a critical piece of retirement planning that too many people overlook.

The...

David McKnight addresses one of the biggest fears people have as they approach retirement: "What if I retire right into a market crash?".

Not only this represents one of the biggest challenges in retirement planning but it's also one of the reasons why David advocates for protecting yourself from sequence of returns risk.

When it comes to long-term stock market investing, it's important to understand the difference between retirement years and accumulation years.

Sequence of returns is the order in which market returns occur in your portfolio.

That order, David stresses...

In this episode, David McKnight walks you through the five biggest Roth conversion traps, and how to avoid them.

He is a big believer in Roth conversions. 

Because of the apocalyptic fiscal trajectory of the U.S., taxes in the future are likely to be dramatically higher than they are today.

Hence, every dollar you reposition from tax-deferred to tax-free at these historically low tax rates may be one of the smartest financial decisions you ever make.

However, while many people understand Roth conversions in theory, they still get them wrong i...

David McKnight addresses one of the most common questions he gets: "If tax rates are going to be dramatically higher in the future, shouldn't I be putting every dollar into a Roth 401(k)?".

Moreover, people often wonder whether they should be converting as much of their IRA to Roth as quickly as possible.

David is a firm believer that the current tax rates are as low as we're likely to see in our lifetime.

The U.S. has over $39 trillion in debt and it's going to increase by two trillion per year over...

In today's episode, David McKnight discusses what many people don't get about the IRS and what happens to their IRA and what their children are supposed to get at some point.

Many people spend decades building up tax-affirmed retirement accounts without fully appreciating what happens when those accounts pass to the next generation.

When a spouse inherits an IRA, they get the most favorable treatment under the tax code. In fact, they have options that nobody else gets - like the spousal rollover.

David touches upon the so-called Stretch IRA, which he considers...

David McKnight kicks off this Power of Zero Show episode by stressing that, in his opinion, tax rates in the future are likely to be much higher than they are today.

Why? Because the U.S. has a national debt that continues to grow at an alarming rate. It has hundreds of trillions of dollars in unfunded obligations for programs like Social Security, Medicare, and Medicaid.

At some point, the Government is going to need huge infusions of cash to meet such obligations.

The so-called "Widow's Penalty" is a very compelling reason, David...

David McKnight discusses the Woman's World article Suze Orman Reveals When to Buy an Annuity - and the One Question You Must Answer First.

For years, Orman has warned investors away from annuities, often lumping them into the category of expensive financial products that enrich salespeople at the expense of consumers.

David has been surprised by what the current views of Orman appear to be, completely in line with what David has been preaching for years.

Orman's analysis begins with a key consideration: annuities can be a helpful tool in retirement, but whether...

In this episode, David McKnight addresses one of the biggest myths in retirement planning: once you retire, you need to dramatically reduce your exposure to stocks.

The reason why most financial advisors recommend reducing stock exposure in retirement has very little to do with stocks and everything to do with sequence of returns risk.

Sequence of returns risk is what happens when you're forced to withdraw money from your investment portfolio during a market downturn.

If the market falls 30% and you're simultaneously taking withdrawals to pay for your living expenses, you're locking in...

David McKnight kicks this episode off by explaining how, for decades, conventional financial wisdom has been saying that, as you approach retirement, you should begin dialing down your stock exposure and increasing your bond allocation.

A 60-year-old, for example, would have 40% of their portfolio in stocks and 60% in bonds.

Historically, bonds served three primary functions: They provided income, they reduced portfolio volatility, and they protected retirees from so-called sequence of returns risk.

David touches upon how the sequence of returns risk works.

Retirees who get hit early often run out of...

A recent landmark study from BlackRock caught David McKnight – he shares what it was all about and why you should care in this new episode of the Power of Zero Show.

For decades, Americans were told that if they simply contributed faithfully to their 401(k) and avoided emotional decisions during market downturns, they would have enough money in retirement.

According to the BlackRock study, retirees who incorporated guaranteed lifetime income in the form of an annuity into their retirement portfolio experienced an average increase of 22% in potential retirement spending.

That number became approximately a...

Today's episode of The Power of Zero Show revolves around a question host David McKnight gets asked all the time: "Should I still be doing Roth conversions in my 60s, even if I'm already retired?"

In short, David believes that you should not only do a Roth conversion in your 60s, it's actually one of the most optimal times in your entire life to do it.

When doing a Roth conversion, you're choosing to pay the IRS its portion of your IRA now, on your terms, instead of paying it a much larger portion later...

David McKnight unpacks the five most common objections to Roth conversions and why they simply don't hold up under scrutiny.

The first objection has to do with people not wanting to voluntarily pay taxes before the IRS requires them to.

While on the surface, postponing this may sound logical, it ignores a fundamental aspect: the state of the U.S. national debt.

It has just passed $39 trillion, and it's slated to grow by $2 trillion per year for the next 10 years, and $3 trillion after that.

In other words, interest on the national...

David McKnight dissects a topic that causes a lot of confusion for retirees and pre-retirees: How Roth conversions affect social security taxation and Medicare premiums (IRMAA).

Some warn against Roth conversions in retirement as they can cause your Social Security to become taxable and could also raise your Medicare premiums.

While that's true, David believes that the long-term benefits of Roth conversions can far outweigh the temporary, short-term pain they can cause.

In order to determine whether your Social Security benefits will be taxed, the IRS tracks the so-called provisional income.

...

David McKnight addresses one of the biggest threats to your retirement plan: sequence of returns risk.

Are you retired or within 10 years of retirement? Sequence of returns risk may be the single most important concept you need to understand if you want to ensure your money lasts as long as you do.

Sequence of returns risk refers to the danger of experiencing a market downturn early in retirement while you're simultaneously taking withdrawals from your portfolio.

David explains why this risk is most dangerous during your first 10 years of retirement.

Early...

David McKnight breaks down the approach he would follow if he were to invest a $2 million 401(k) in retirement.

David points out that when you retire, you're no longer just investing for growth; you're investing for income.

Remember: If you get this wrong, you don't get a do-over.

In the case David discusses, many financial advisors would recommend investing the $2 million in the market and withdrawing whatever your lifestyle requires.

The problem with that way of doing things, however, is the exposure to the sequence of returns risk.

If...

David McKnight explores the so-called "22% Roth conversion mistake," which he considers a common and costly mistake when it comes to Roth conversions.

He points out that, despite Trump tax cuts being made permanent with the passage of the One Big Beautiful Bill Act in July 2025, tax rates can change at any time with a simple act of Congress.

That's why he refers to this as a "temporary permanent tax cut."

The $200 trillion underfunding of entitlement programs and the exploding interest on the national debt makes it clear that tax rates are unlikely to...

David McKnight discusses the three biggest retirement planning mistakes that show up over and over again.

Avoiding them will dramatically increase the likelihood that your retirement savings will last as long as you do.

Mistake #1 pertains to over-accumulating in tax-deferred accounts like 401(k)s and IRAs – a mistake that surprises many people as they feel they're doing everything right.

The problem here is that you're taking a deduction at historically low tax rates only to postpone the payment of those taxes to a point in the future where tax rates are likely to be...

David McKnight explores a retirement planning phenomenon that almost nobody discusses, but that has been documented repeatedly in academic research.

It's the idea that when retirees convert some of their savings into guaranteed lifetime income through an annuity, they actually spend more money and enjoy retirement more than those who rely on their liquid retirement savings alone.

Even though many people assume that doing so would make retirees more conservative with their spending, research actually shows the opposite.

According to academic studies, when retirees have reliable lifetime income, they actually feel more comfortable...

David McKnight touches upon what he considers the most overlooked tax-free income stream.

What he's referring to is to leave enough money in your traditional IRA so that your required minimum distributions can be completely offset by your standard deduction in retirement.

David believes that focusing on tax-free retirement strategies is more crucial than ever, since it's becoming increasingly clear that taxes are likely to rise dramatically in the future.

The United States is $39 trillion in debt and, as interest on that debt continues to grow and compound, the Government will eventually have...

David McKnight addresses an issue he sees more and more in his conversations with retirees and pre-retirees: the so-called Roth over-conversion trap.

The problem stems from converting too much money with the result of shortening the lifespan of your retirement savings.

David believes that the reason why many Americans are racing to convert everything they have in their IRAs and 401(k)s has to do with the fear about where the country is headed financially.

Penn Wharton has warned repeatedly that, if we don't right our fiscal ship by 2043, no combination of raising...

In this episode of the Power of Zero Show David McKnight gives you a blueprint with the key steps to follow for a successful and stress-free retirement if you're about five years away.

The first step is figuring out your retirement income shortfall, the income you'll need every month in retirement, as well as how much of that will be covered by sources like Social Security and pensions.

The retirement income shortfall represents the amount of income your retirement assets need to produce in order to fund your lifestyle.

One strategy many retirees...

Today's episode of the Power of Zero Show sees David McKnight address one of the most important decisions you'll ever make in retirement: where you should withdraw money from first.

It's important to note that the sequence in which you draw down your retirement dollars can dramatically affect how long your money lasts and how much of it you get to keep.

Since the Trump tax cuts were permanently extended on July 4th, 2025, retirees have been presented with one of the most significant tax planning windows they may ever see.

The national debt...

David McKnight discusses the allocation of $1M if he had it to invest in 2026.

David sees a taxable brokerage account as the least efficient investment account you could possibly own – since it's taxed every year and it's exposed to both short- and long-term capital gains.

While this type of account is liquid and can serve as an excellent emergency fund, it's the most tax-unfriendly of all the investment alternatives.

The goal, says David, isn't to grow wealth within this type of account, rather to use it as a funding source to systematically build mu...

This episode of The Power of Zero Show sees David McKnight discussing the single most hated retirement strategy in America: annuities.

Interestingly enough, annuities are also one of the most powerful tools you can use to protect yourself from the biggest financial risk you face in retirement.

Longevity risk, a retirement danger most retirees never fully grasp, is the reason why this topic matters so much.

As David explains, "Longevity risk is the risk of living longer than you expected, running out of money before you run out of life." 

While s...

David McKnight dissects Elon Musk's recent claims that, because of AI robotics and automation, the future will have such hyperabundance that ordinary people may no longer need to save for retirement.

In Musk's future, robots are going to do all the work, AI will create prosperity, and society will provide everything you need at a little or no – cost.

While David likes Musk's vision for the future, he doesn't agree with him on this one.

When examined through the lens of economics, government obligations, and retirement realities, Musk's idea of the future collapses.

David McKnight explores one of the most fascinating and misunderstood topics: Retirement planning annuities.

In the article Annuitization Puzzles, Economics Nobel Prize winner Richard Thaler tries to answer a deceptively simple question: If annuities are so good at protecting retirees from outliving their money, why don't more people buy them?

Thaler, one of the founding fathers of behavioral economics, coined the phrase "the annuity puzzle" to describe a striking contradiction between theory and real life.

According to traditional economic models, the rational choice would be for retirees to annuitize at least some portion...