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114: How To Retire in the 0% Tax Bracket with David McKnight

David McKnight is a champion for the American people. He’s not only warned us all about why we should expect taxes to get higher in the future, he’s also taught people how to be in the 0% tax bracket when you retire. It may sound impossible, but today, David’s going to walk you through exactly how to do it.

David has appeared in Forbes, USA Today, the New York Times, and on CNBC. His bestselling book, The Power of Zero, has sold over 140,000 copies. The updated edition, published in September of 2018, is now the number two most sold business book in the world. It’s even been turned into a full-length documentary film also entitled The Power of Zero, which we’re going to spend some time talking about today. 

Today, David joins the podcast to talk about why tax rates may double after you retire (and what you can do about it), how to protect your assets from future legislative changes, and the whens, whys, and hows of Roth conversions. 

In this podcast interview, you’ll learn:

  • What made David so passionate about telling Americans about looming tax increases – and how drastically things have changed since the national deficit was zero in 1997.
  • Why having less income in retirement doesn’t necessarily mean paying less taxes – and how much drastically higher tax rates were before Ronald Reagan’s presidency.
  • Why David thinks taxes are all but guaranteed to go up on January 1, 2026 – and what you should be doing before then to safeguard your money.
  • The reason so many CPAs are unwilling to have proactive conversations about tax rates – and the times it can be advantageous to shift temporarily into a higher tax bracket.
  • How to enter the so-called 0% tax bracket by proactively and preemptively paying taxes in a higher tax bracket – preferably 24% – now. 
  • How to use a Life Insurance Retirement Plan to complement other streams of tax-free income, no matter how much you earn.

Inspiring Quotes

  • “We have this window of opportunity during which to take advantage of historically low tax rates. We finally have some certainty dispelling the doubt around the future of tax rate, so why not take advantage of it?” – David McKnight
  • “The true purpose of a retirement account is not to save you money in taxes. It’s to increase. It’s to maximize your retirement income at a period in your life, when you can least afford to pay the taxes. That’s the true purpose of retirement income.” – David McKnight

Interview Resources

Read The Transcript