This episode addresses the 8-step plan for a successful retirement plan that was recently shared by Dave Ramsey’s “sidekick,” George Kamel.

Just like in any field of life, a good financial plan benefits from assessing where you are, where you want to be by a given date, and what needs to be done to get there.

David dislikes the approach of painting everything with a broad brush and characterizing niche financial planning principles in broad, one-size-fits-all financial planning terms.

That’s what, in his opinion, many so-called “financial gurus” like Dave Rasmey tend to do.

David mentions his upcoming book, The Guru Gap: How America’s Financial Gurus Are Leading You Astray, and How to Get Back On Track.

George Kamel has found that 8 out of 10 millionaires have reached their millionaire status by investing in their company’s 401k plan.

David shares his philosophy: “If you’re in a 24% bracket or lower, opt for the Roth 401k. If you’re in the 32% bracket or higher, stick with the traditional 401k.”

David contradicts Kamel and explains that the reason you invest in a Roth IRA is because you think that your tax bracket in retirement is likely to be higher than it is today.

For David, when it comes to millionaires who have paid off their homes, it’s important to distinguish between causation and correlation.

A problem with Kamel’s view on Social Security is that Social Security is likely to never go away. What may happen, says David, is that the retirement age will be changed.

Kamel and David are in agreement: investing is a marathon, not a sprint – and it isn’t for the faint of heart.

According to an April 2024 study by Dalbar, investors continue to be their own worst enemies when it comes to saving for retirement.

Except for step 5, David sees George Kamel’s 8-step plan as a pretty sound solution.

Mentioned in this episode:

David’s upcoming book: The Guru Gap: How America’s Financial Gurus Are Leading You Astray, and How to Get Back on Track

David's books: Power of Zero, Look Before You LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code

DavidMcKnight.com

DavidMcKnightBooks.com

PowerOfZero.com (free 3-part video series)

@mcknightandco on Twitter

@davidcmcknight on Instagram

David McKnight on YouTube

Get David's Tax-free Tool Kit at taxfreetoolkit.com

Dave Ramsey

George Kamel

David M. Walker

Dalbar’s QAIB

Today’s video comes from David’s interview with Dave Christy.

They discuss how life insurance and annuities can help maximize your retirement.

They start by describing the three different ways cash value life insurance can positively impact your financial plan.

David reveals how IULs can be an excellent replacement for the bond portion of your portfolio.

David explains why most people get heartburn when they think about paying for traditional long-term care.

David goes over the unique aspects of cash value life insurance--if you ever need long-term care, the insurer will start paying your benefits in advance of your death to pay for long-term care.

David covers how cash value life insurance can extend the life of your investments when it comes to sustainable withdrawals in retirement.

According to David, the problem with the 4% Rule is that it's an expensive way of mitigating longevity risk.

David describes how cash-value life insurance works and why it's an excellent volatility shield in retirement.

When you utilize cash value life insurance, annuities, and traditional investing together, you will yield higher income in retirement than any other alternative.

Dave defines prudent asset allocation and how to use it to protect your retirement.

They both agree that the number one rule to being a successful investor is to not sell things when your investments are down.

For David, every investor should aim to accumulate three to five years worth of living expenses in their cash value life insurance by day one of retirement.

The IUL is not a stock market replacement. But it will give you more productive returns than a whole life policy.

Mentioned in this episode:

David's books: Power of Zero, Look Before You LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code

DavidMcKnight.com

DavidMcKnightBooks.com

PowerOfZero.com (free 3-part video series)

@mcknightandco on Twitter

@davidcmcknight on Instagram

David McKnight on YouTube

Get David's Tax-free Tool Kit at taxfreetoolkit.com

Today’s video is part three of David’s interview with Dave Hall.

They discuss whether Trump will extend the tax cuts if re-elected.

David cites a recent report from the Committee for a Responsible Federal Budget that says that if they extend the tax cuts, the government will have to borrow $5 trillion to pay for those tax cuts.

David explains why he doesn’t see another tax cut happening without a commensurate reduction in spending.

David tackles people’s assumptions that tax cuts can stimulate enough economic growth to be able to pay for themselves.

Dave and David agree that more people are starting to come to terms with the fact that taxes will go up in the future.

David explains why individual investors need to be realistic about the types of tax rates they're likely to pay down the road.

David shares his thoughts on whether the Inflation Reduction Act was successful in bringing inflation down and cutting government spending.

Why you need to take advantage of historically low tax rates today and protect your retirement before tax rates go up for good.

David covers the benefits of taking advantage of historically low tax rates while they're still around and why you need to get your savings systematically repositioned to tax-free.

Dave talks about doubling taxes and how they could easily ruin retirements that would have otherwise worked out well.

Politicians are in the business of getting re-elected. That is their number one job. You may think their number one job is to represent you, but their number one job is to get re-elected.

Mentioned in this episode:

David's books: Power of Zero, Look Before You LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code

DavidMcKnight.com

DavidMcKnightBooks.com

PowerOfZero.com (free 3-part video series)

@mcknightandco on Twitter

@davidcmcknight on Instagram

David McKnight on YouTube

Get David's Tax-free Tool Kit at taxfreetoolkit.com