The Vindication of Indexed Universal Life and Fixed Indexed Annuities: What the Ernst & Young Study Finally Proves
Release Date: 07/16/2025
The Only Three Investments Dave Ramsey Owns (Is This Smart?)
The Power Of Zero Show
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...
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The Roth Conversion Myth Most Financial Advisors Get Wrong
The Power Of Zero Show
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...
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Trump: No Income Tax in 2026!
The Power Of Zero Show
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...
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Congress Just Proposed a Major Change to Roth IRA’s—Here’s What It Means for You
The Power Of Zero Show
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...
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What Are the Creditor Protection Rules for Roth IRAs and Roth 401(k)s?
The Power Of Zero Show
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...
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Top Five Reasons to Pick a Roth 401(k) Over a Traditional 401(k)
The Power Of Zero Show
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...
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Suze Orman Says Roth IRAs Are Great — But Here’s What She’s Missing
The Power Of Zero Show
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....
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The 3 Questions You MUST Answer BEFORE Doing a Roth Conversion
The Power Of Zero Show
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...
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Five Roth Conversion Myths Busted: What Most Americans Get Wrong
The Power Of Zero Show
David McKnight busts some of the most common Roth conversion myths that are costing retirees hundreds of thousands – if not millions – of dollars over the course of retirement. The “Don’t worry about Roth conversion, you’ll be in a lower tax bracket when you retire” myth is based on two flawed assumptions. The first one is that your lifestyle will drop significantly in retirement, while the second is the one related to future tax rates being the same or lower than they are today. David points out that, in retirement, people want to maintain their lifestyle. In some cases,...
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Two Experts Debate When You Should Take Social Security—But here’s the TRUTH!
The Power Of Zero Show
Today’s episode revolves around one of the biggest financial debates among pre-retirees and retirees: When should you take Social Security? Host David McKnight touches upon the recent debate of two of the smartest voices in the field – Dr. Laurence “Larry” Kotlikoff and Dr. Derek Tharp – on this exact question. Dr. Tharp, out of the University of Southern Maine, notes that economists commonly recommend delaying social security benefits until age 70. Boston University’s Dr. Kotlikoff agrees and explains that delaying can give you a 76% higher monthly benefit compared to taking...
info_outlineErnst & Young recently came out with a new updated study, which is likely to scandalize mainstream financial experts like they did with their 2021 study.
Back then, they asked the question, “Is the stock market-only retirement approach really the strategy that gives you the highest levels of income and the best outcomes over a 30-year retirement?”
In their new study, on the other hand, they substituted Indexed Universal Life for Whole Life, and Fixed Index Annuities for Deferred Income Annuities – a move that led to unexpected and spectacular results.
Host David McKnight explains that by going beyond the investment-only playbook and by integrating tools like Whole Life and Deferred Income Annuities into your retirement strategy, you get higher levels of income and a higher likelihood of your money lasting through life expectancy and beyond.
For years, Indexed Universal Life and Fixed Index Annuities have been misrepresented by many (inexperienced) insurance agents, have been vilified by media personalities using a “one-size-fits-all” approach, and have been ignored by investment-only advisors.
In the latest iteration of their study, Ernst & Young ran three case studies: one featuring a 35-year-old couple just starting their financial journey, one involving a 45-year-old couple, and the last one looking at a 65-year-old couple on the doorstep of retirement.
David asks why, if the E&Y case studies show that IULs and FIAs can dramatically improve income levels and the likelihood of money lasting through life expectancy and wealth to heirs, they have been so frequently demonized?
David touches upon three distinct reasons why he believes the critiques occur.
“Together, the IUL and FIA act as the stabilizers on your retirement journey,” says David.
Utilized in conjunction with your investment portfolio, IUL and FIA increase your income, the likelihood your money lasts through life expectancy, and they increase the money that gets passed on to your heirs.
For David, data proves that cash value life insurance and annuities work whether you’re just getting started or are stepping into 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
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