Two Experts Debate When You Should Take Social Security—But here’s the TRUTH!
Release Date: 11/19/2025
The Five Biggest Roth Conversion Traps
The Power Of Zero Show
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 in practice – David has seen some very costly...
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High Earners: Stop Making This Roth vs. Traditional Tax Mistake!
The Power Of Zero Show
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 the next 10 years and over $200 trillion in unfunded obligations for Social...
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What REALLY Happens When Your Kids Inherit Your IRA
The Power Of Zero Show
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 one of the greatest estate...
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The Hidden Reason Married Couples Need Roth Conversions
The Power Of Zero Show
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 believes, to consider doing Roth conversions while...
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Did Suze Orman Just Endorse Annuities?
The Power Of Zero Show
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 they make sense for you...
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The Truth About Buy-and-Hold Investing in Retirement
The Power Of Zero Show
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...
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The New Case Against Bonds in Retirement
The Power Of Zero Show
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...
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This Small Trick Could Increase Your Retirement Income by 22%
The Power Of Zero Show
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...
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Should I Do a Roth Conversion in my 60s?
The Power Of Zero Show
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, on their terms. That’s why Roth conversions don’t only make sense for...
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The 5 Most Common Objections to Roth Conversions (and Why They’re Wrong)
The Power Of Zero Show
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 debt is becoming one of the largest line items in the...
info_outlineToday’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 it at age 62.
Since Social Security is inflation-adjusted and guaranteed for life, it acts as longevity insurance.
Hence, Dr. Kotlikoff thinks that waiting doesn’t only help you but your loved ones too.
Dr. Tharp isn’t convinced: he points out that only about 10% of workers actually wait until age 70 to claim benefits.
Overall, he sees studies that recommend delaying rely on overly conservative assumptions – they assume that retirees earn returns similar to Treasury inflation-protected securities.
With this line of thinking, if your portfolio is earning 5% real returns instead of 2%, then delaying your benefits might not look as attractive mathematically…
Dr. Kotlikoff cites Menahem Yaari’s 1965 paper, which suggests looking at delaying social security like buying insurance. It protects you from the catastrophic risk of living too long and running out of money.
The debate continues with Dr. Tharp talking about the sequence of return risk.
If the market drops early in retirement and you’re forced to withdraw more from your investments to delay Social Security, you can permanently damage your “nest egg”.
Even though he acknowledges Dr. Tharp’s point, Dr. Kotlikoff points out that most retirees have options, such as continuing to work longer, cutting spending, downsizing, or borrowing temporarily instead of taking benefits early.
Plus, he adds, the people most affected by sequence of returns risk are, generally, wealthier households…
Dr. Tharp concludes the debate by citing a study showing that retirees tend to spend about 80% of predictable income streams like Social Security or pensions, but only about 50% of portfolio income.
He also brings up Bill Perkins’ book Die With Zero into the conversation.
Perkins believes that Americans often focus too much on lifespan and not enough on health span.
Dr. Kotlikoff responds by stressing that some people underspend, while others overspend… and that’s exactly why there's a need for good planning software.
For David, both Dr. Kotlikoff and Dr. Tharp make valid points, and it all boils down to a key question: how long are you going to live?
If you’re likely to die at 63, then you should probably take Social Security at 62. If you’re going to live to age 100, it makes sense to wait until you’re 70.
While there’s no accurate way to determine that, there’s currently a group of people who are in the business of figuring that out: life insurance actuaries.
David shares two reasons why you may want to consider the additional benefits of life insurance, especially Indexed Universal Life (IUL).
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
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