For many people, an approach that incorporates whole life insurance has become part of their broader retirement strategy. Is that a good way to go? That’s what David McKnight addresses in this episode.

While Whole Life has some legitimate applications, especially for people who are risk-averse and are looking for guaranteed steady accumulation, there’s an option that does the job more effectively: Indexed Universal Life (IUL).

David touches upon why you may want to opt for IUL instead of Whole Life, including the fact that, with IUL, you can access your cash value in retirement without having to pay loan interest.

That gives you more flexibility and more efficiency when using IUL as a source of income.

David compares Whole Life and Indexed Universal Life.

If your goal is to shield your retirement portfolio from market downturns, then Whole Life is like taking the scenic route: You’ll get there. but it will cost you more time, fuel, and money.

IUL, by contrast, is like taking the express lane: Same destination, just faster, cheaper, and more efficient.

“If efficiency matters to you, and you’re trying to increase the likelihood that your money will last as long as you do, then Indexed Universal Life is the superior alternative”, says David.

David goes over what happens when you borrow money from your Whole Life policy vs. from your IUL.

It’s good to know that some IUL policies have wash loans or zero-cost loans that make accessing your money more predictable and sustainable.

David believes that, when it comes to retirement income and the volatility buffer concept, the IUL is more efficient and effective, as it gives you higher growth potential and more favorable loan features.

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

DavidMcKnight.com

DavidMcKnightBooks.com

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

In this episode of The Power of Zero Show, host David McKnight discusses why it may make sense to replace the bonds in your retirement portfolio with a Fixed Index Annuity, and how doing so could lead to a much better outcome for your retirement.

For decades, financial advisors have followed the conventional wisdom of the 60-40, 60% stocks, 40% bonds.

As you approach retirement, that ratio shifts even further in favor of bonds…

…however, the problem is that today’s bond market isn’t built like it used to be, and bond yields are still below their historical averages.

David touches upon the Fixed Indexed Annuity or FIA.

Remember: when you replace the bonds in your portfolio with Fixed Index Annuities, you’re not just getting similar safety. You’re actually improving your outcomes across the board.

David stresses that, in retirement, it’s not all about rates of return. It’s about how consistent that return is.

Something good to keep in mind: bonds can and do lose value. If interest rates spike, bond prices fall. If inflation spikes, bond purchasing power falls.

Are you 5-10 years away from retirement or already retired? If so, it’s time to reevaluate the role of bonds in your portfolio.

The reason for that is that bonds aren’t offering the returns they once did, carry more risk than most people, and they may no longer be the best way to reduce volatility or protect your portfolio.

David puts it bluntly: “If you aren’t using Fixed Index Annuities as a bond alternative, you could be missing out on one of the most powerful safe money strategies available today.”

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

DavidMcKnight.com

DavidMcKnightBooks.com

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

Dave Ramsey

Suze Orman

Ken Fisher

S&P 500

David sits down with John Manganaro to unpack the advice of financial gurus like Dave Ramsey and Suze Orman. While their guidance has helped countless Americans get out of debt, David explains why their cookie-cutter approach to retirement income planning can fall short.

Why “hope over math” is a dangerous foundation for retirement planning—David explains why advice built on optimistic return assumptions leaves disciplined savers exposed to massive disappointment later.

Learn how Dave Ramsey’s 8% withdrawal and 12% return claims mislead investors and why following them could drain your retirement accounts too quickly.

David explains why saving $1,000 a month isn’t realistic for most families and how financial gurus use overly rosy scenarios to make the math appear more approachable.

David shares how gurus water down complex retirement math into sound bites that might inspire beginners, but fail those with real assets at stake.

Why one-size-fits-all advice collapses under scrutiny. For example, what works for paying down credit card debt doesn’t translate to sustainable retirement income.

David highlights the power of guaranteed lifetime income annuities and why they’re often a more efficient way to purge longevity risk than relying only on the stock market.

Learn how combining annuities with traditional investments can actually increase income while improving the odds that your portfolio lasts through life expectancy.

David shares how cash value life insurance can be used as a volatility shield—giving your stock portfolio time to recover after downturns instead of locking in losses.

Why guaranteed income changes retiree behavior. Research shows people with guaranteed income tend to spend more, worry less, and even live longer.

Why longevity risk is often underestimated by retirees—David reveals the benefits of planning for a 30–35 year retirement.

David explains how tax-free planning integrates with Social Security and why keeping provisional income below thresholds can keep benefits 100% tax-free.

Why the investing “holy grail” is leaving just enough in an IRA so RMDs are offset by the standard deduction—allowing tax-deferred money to come out tax-free.

How to build six different streams of tax-free income so none show up on the IRS radar, putting you effectively in the 0% tax bracket.

David highlights the fiscal reality ahead—with debt-to-GDP ratios soaring, he warns that tax rates are likely to be dramatically higher within the next decade.

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

DavidMcKnight.com

DavidMcKnightBooks.com

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

David explains why A.I. could make Universal Basic Income (UBI) a reality sooner than you think. As machines take over more jobs—especially white-collar ones—we may need a new safety net just to keep society stable.

Why UBI is no longer a fringe idea but a serious policy being considered in Washington. It promises monthly cash payments to every adult, regardless of their job or income.

David highlights the staggering cost of UBI if implemented today. At $12,000 per adult annually, the total price tag would hit $3.1 trillion a year—equal to all Social Security and Medicare spending combined.

How to wrap your head around what that means for taxes. To fund UBI, the government would need to raise taxes by at least seven percentage points across the board.

David shares what that looks like in real life. If you’re in the 22% tax bracket now, that could jump to 29%—even before you factor in state taxes or future hikes.

With rising national debt and shrinking tax bases due to A.I., David believes higher taxes may become the new normal.

David explains how this affects your retirement plan. If you're deferring taxes in a traditional IRA or 401(k), you may be setting yourself up for a bigger tax hit down the road.

How to avoid that painful surprise later. Today's low tax rates could be the best deal you'll ever get—so delaying taxes could mean missing the window.

David shares the smart move more Americans should be making right now. Start shifting money into tax-free accounts like Roth IRAs while the current tax laws still work in your favor.

David covers a powerful example to bring this to life. Imagine you’re 55 with $1 million in a traditional IRA and expect to pay 22% in taxes. If taxes go up by 20 points in the next decade, you could lose hundreds of thousands more to the IRS than you need to.

Why waiting for retirement to convert to Roth might be a big mistake. The longer you wait, the larger your account grows—and the more you’ll owe when rates are higher.

How to protect yourself from what David calls a “perfect storm” of higher taxes and shrinking benefits. You can’t control what Congress does—but you can control where and how your money grows.

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

DavidMcKnight.com

DavidMcKnightBooks.com

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

David starts by talking about the apocalyptic headwinds facing Social Security and Medicare and what it means for your retirement plan.

The Social Security and Medicare trust funds are projected to be insolvent by 2033, with the combined Social Security trust fund gone by 2034.

David explains why this isn’t just a distant problem: Without intervention, roughly 70 million Americans will face major benefit cuts—23% for Social Security, 11% for Medicare.

How this impacts you personally: If you're 59 today, you’ll reach full retirement age right as the trust fund runs dry. If you’re already retired, you may be affected in the next 8 years.

David outlines the government’s dilemma: Once the trust funds are depleted, benefits must be paid from incoming payroll taxes alone—which won’t be enough to cover promised amounts.

David shares why printing money isn’t a fix. Social Security and Medicare are tied to inflation, so printing more money only drives costs up.

Why taxing the rich is not the answer. Even if the government confiscated 100% of billionaire wealth, it would only fund the federal government for 11 months—not solve the long-term problem.

David reveals what you can do now. Start saving as much as you can today. Even a small increase—automated every 6 months—can plug the future gap in your benefits.

How to use tax-free accounts strategically. Roth IRAs, Roth 401(k)s, and properly structured life insurance can help shield your retirement from rising taxes.

David explains that Roth withdrawals don’t count as provisional income—keeping your Social Security potentially 100% tax-free.

How to soften the blow of benefit cuts: Keeping your Social Security tax-free preserves more of your income and helps offset reductions in government programs.

With Trump’s tax cuts possibly extended, you could have until 2033 to shift your retirement savings while tax rates remain historically low.

How to avoid future tax pain: David recommends shifting to tax-free accounts slowly enough to avoid “tax bracket heartburn,” but fast enough to finish before tax rates rise.

Why aiming for the 0% tax bracket matters: If tax rates double in the future, two times zero is still zero. The less taxable income you have, the more secure your 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

DavidMcKnight.com

DavidMcKnightBooks.com

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

How could postponing your retirement by just five years transform your retirement picture? David McKnight shares mathematical reasons that could help.

Reason #1 is compounding. As David explains, “When you delay retirement, your money has more time to grow.”

The second reason for considering the postponement of your retirement has to do with the fact that an extra 5 years would give you more time to save.

Reason #3: Worried that your money won’t last as long as you do? Just remember that it doesn’t need to last as long.

If you retired at 65 and lived to 95, you’ll need your retirement savings to last 30 years.

In case you were to retire at 70, then you’d only need your savings to last 25 years.

The fourth reason for postponing retirement is a potentially higher withdrawal rate.

David touches upon the 4% Rule.

The rule states that if you’d like to have a higher chance of lasting a full 30-year retirement, you should never take more than 4% of your day #1 retirement balance, adjusted every year thereafter for inflation.

Studies show that your new sustainable withdrawal rate would be closer to 5%.

The final mathematical reason to delay retirement is to “boost your Social Security benefit.” It’s important to know that every year you delay Social Security after full retirement age, your benefit increases by about 8% until age 70.

Since Social Security is guaranteed, and inflation-adjusted, that becomes a reliable, predictable stream of income that complements all of your other streams of 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

DavidMcKnight.com

DavidMcKnightBooks.com

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