Two Experts Debate When You Should Take Social Security—But here’s the TRUTH!
Release Date: 11/19/2025
How to Protect Against a Market Crash in the First Ten Years of Retirement
The Power Of Zero Show
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 in retirement, your money still...
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How I’d Invest $2 Million Right Now
The Power Of Zero Show
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 the market crashes early in retirement and...
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What Is the 22% Roth Conversion Mistake?
The Power Of Zero Show
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 stay this low for long. Many...
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The Three Biggest Retirement Planning Mistakes I See All the Time
The Power Of Zero Show
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 much higher...
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Why Retirees with Guaranteed Income Spend More (and Are Happier!)
The Power Of Zero Show
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...
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The Best Tax-Free Account for Retirement
The Power Of Zero Show
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...
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Convert to Roth… But Not TOO Much: The $400,000 Rule Explained
The Power Of Zero Show
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 taxes or reducing...
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5 Years from Retirement? Here’s Your Planning Blueprint
The Power Of Zero Show
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 rely on is taking a portion of their liquid...
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Which Retirement Accounts Should You Draw from First?
The Power Of Zero Show
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 continues to grow – with Social Security and...
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How I’d Invest $1,000,000 in 2026
The Power Of Zero Show
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 multiple tax-free income...
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