Excellent content. Very easy and clearly explained. Thanks 🙏 just bought your book the power of zero David!
@DavidMcKnight
12 күн бұрын
Thank you!!
@christopherhemmert3890
Жыл бұрын
Why don’t these videos have hundreds of thousands of views?! It’s such valuable info!
@DavidMcKnight
Жыл бұрын
Thanks Christopher.
@davidbrooks8809
8 ай бұрын
Probably people don't know about this site
@TheDealHunter
2 жыл бұрын
I was going to post that you forgot the HSA, but you dropped that one in at the end in the form of a question! I also think a HECM Line of Credit is a great source of tax free income.
@DavidMcKnight
2 жыл бұрын
Absolutely.
@ricrubeo1265
2 жыл бұрын
Mike beat me to it. Keep up the great work DM!
@DavidMcKnight
2 жыл бұрын
Thanks!
@davidbrooks8809
8 ай бұрын
RMD.. never heard of it please give me more information
@DavidMcKnight
8 ай бұрын
Are you trolling?
@dmoon9037
2 жыл бұрын
I series and EE series bonds when saving for future educational expenses.
@DavidMcKnight
2 жыл бұрын
Nice.
@michaeln2386
2 жыл бұрын
I just bought the max I series for my wife an myself. Good call.
@DallinBunnell
Ай бұрын
HSA! I love this concept of tax-deduction up front, tax-deferred growth, and tax-free withdrawals :)
@DavidMcKnight
Ай бұрын
Yes very solid. Just a few strings attached if spent on non medial expenses.
@georgefielderthe2ndaccount955
3 ай бұрын
Can you talk about the possible penalties on withdrawals from the Roth IRA, given the differences betwwen 1)contributions, 2) conversions, and 3) earnings. Please factor in the holding periods and the age of ROTH IRA owner. Thanks.
@DavidMcKnight
3 ай бұрын
I did a video on this a few months back where I break it all down. Check out my channel.
@michaeln2386
2 жыл бұрын
HSA? Thanks David.
@DavidMcKnight
2 жыл бұрын
Got it!
@dc5540
2 жыл бұрын
The LIRP is my favorite because of the high amounts of premium contributions and protection of principle as well as it’s liquidity and annual lock in & reset features. Truly a unique wealth creation tool.
@DavidMcKnight
2 жыл бұрын
Great points!
@Mrsjojomt53
6 ай бұрын
At the present time, I like the Roth coversion best. I'm hoping to get the RMD tax free soon!
@DavidMcKnight
6 ай бұрын
Nice!
@TONYCARROLL-z6f
Жыл бұрын
what is the second tax free income investment with strings attached??
@DavidMcKnight
Жыл бұрын
Not sure exactly what portion of the video you’re referring to but generally I recommend Roth IRAs, Roth 401(k)s, Roth Conversions and cash value life insurance.
@davidbrooks8809
8 ай бұрын
Health Savings Account how did you forget that one
@DavidMcKnight
8 ай бұрын
I’ve done other videos on it. It has some strings attached and not everyone qualifies.
@SeanDIY
Ай бұрын
One problem with the standard deduction is that it is likely going down in 2026 and beyond.
@DavidMcKnight
Ай бұрын
But they’re bringing back the personal exemptions.
@SeanDIY
Ай бұрын
@@DavidMcKnight I agree, I just wouldn't count on $26k or more.
@w33bwhacker
14 күн бұрын
Can't you withdraw from an IUL completely tax-free?
@DavidMcKnight
14 күн бұрын
Just your basis.
@w33bwhacker
14 күн бұрын
Meaning the amount put in?
@dmoon9037
2 жыл бұрын
Roth 401(k) with a high dollar-for-dollar Roth match is the best.
@DavidMcKnight
2 жыл бұрын
I like it!
@scottlouis1064
Жыл бұрын
Pretty sure all matches have to be in tax deferred account versus a "Roth match". SO your matches by your employer are put in a tax deferred not a tax free match account.
@dmoon9037
Жыл бұрын
@@scottlouis1064 have some positive news for you, SECURE 2.0 Section 604 - if this bill was indeed passed in 2022, you can find the text here (604 is on pdf p. 18): www.help.senate.gov/imo/media/doc/secure_20sectionbysection.pdf plan sponsor’s discretion to allow post-tax i.e. Roth matching
@Unicorn-Black
2 жыл бұрын
100% agree this should be the default for everyone, For high earners, that pay a step tax % today I think we can even optimize a bit more , so lets say that to get to the 25k RMD you need to put 6k of your own money in 401k IRA + get 6K from your employer (this depend of course on your job + age etc, everyone will have different numbers here) and lets say your tax bracket today is 40% (rounded) if you implement the power of zero across all your other courses of income/saving / investment, and you plan to not have any taxable income at retirement apart from that 401k IRA, then with the above situation you will pay zero tax, but further optimization is possible (with a risk) lets decide (each will do its risk calculation) that taxes will double by that time, i.e if I pay 40% now I will pay 80% , and if now taxable income of up to 40k is 12% , then by that time it will be 24% adjusted for inflation (add the impact on social security) then if my current tax bracket is 40% and with an income of 40K (above the 25K from previously) I will only pay 24% (in the extreme situation of taxes double) then I can contribute more to tax differed tools (like 401K IRA if you believe in that tool) up to the point that my RMD will be 40k (+25k ) right ? or am I missing something?
@DavidMcKnight
2 жыл бұрын
I think I understand what you’re driving at and if so it’s sound.
@Jewtopia79
6 ай бұрын
What about investing in municipal bonds?
@DavidMcKnight
6 ай бұрын
It’s ok. It does count as provisional income so could end up causing your SS to be taxed.
@Jewtopia79
5 ай бұрын
@@DavidMcKnight Hi David, is investing in municipal bonds the same as investing in a municipal bond ETF? For example, MUB or VTEB.
@matthewwallace9280
4 ай бұрын
@@Jewtopia79 Muni bonds from your home state should be tax-free. But muni bond ETFs will hold bonds from many states, and your state could tax the income from those bonds from outside of your state. In MUB for example, the first four holdings in weight were from California, New York, Georgia, and Texas. So muni ETF income would be "partially" state tax free. There are state specific muni ETFs. Hope that helps...
@lionmangolf
Жыл бұрын
Is it too late to begin a roth 401k at 55?
@DavidMcKnight
Жыл бұрын
Sure isn’t!
@lionmangolf
Жыл бұрын
@@DavidMcKnight I've been told that I don't have enough time
@DavidMcKnight
Жыл бұрын
@@lionmangolf hogwash! You have plenty of time. Plus, tax rates when you retire are likely to be much higher than they are today. That’s what matters.
@shondalyons7352
8 ай бұрын
Can I convert my sep Ira to a Roth ira
@DavidMcKnight
8 ай бұрын
Sure can.
@Inyourpowero1
14 күн бұрын
Roth I401K no income limit
@DavidMcKnight
14 күн бұрын
It’s very powerful. Plus the match.
@donnasides6884
9 ай бұрын
Most people who have saved all their lives into pretax retirement accounts will never be below the standard deduction on RMDs.
@DavidMcKnight
9 ай бұрын
Not without doing a Roth conversion.
@maxshiraz3447
8 ай бұрын
Tax rates will rise because of democrat's infinite spending fantasy. But it is totally possible that they will intoduce new taxes on these previously tax paid retirement investments.
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