[The Power of Zero Books ] Free Read as DOC ✓ David McKnight
Forgetful of Their Sex: Female Sanctity and Society, ca. 500-1100 eOr instance in his Social Securityxample in the tax deferred chapter
The Hypothetical Couple With hypothetical couple with in taxable income would have an average tax rate "OF 15% NOT 22% ACCORDING TO "15% not 22% according to rate calculatorsHe also talked xtensively about how the current tax brackets will xpire in 2026 but fails to mention that the standard deduction will also drop in half at that time He ven talks in later chapters about how a couple could safely take out RMDs of 37000 and have it be tax free thanks to an inflation adjusted standard deduction But assuming the tax law sunsets as scheduled we will never see a 37000 standard deduction2 He completely ignores certain planning strategies such as Health Savings Accounts to pay for health care xpenses or relocating to a state with no income tax that can help people minimize taxes in retirement 3 McKnight never mentions Roth 401k accounts4 He promotes LIRPs heavily without providing much detail Vague descriptions tend to always raise a red flag and I left wondering what it is about these plans that is being left unsaid Exactly how much higher are feesinsurance premiums at the start vs other retirement vehicles Does the cash value disappear into the pockets of the insurance company at death as is the case with most permanent life insurance plans And so onWhile I like the concept behind the book it felt vague and hyperbolic and so it was only ok for me This book focuses on strategies used to shift taxable income and tax deferred income into tax free income The logic being that with tax brackets at historically low levels today and with the huge deficits our government is incurring and its need to someday pay the bill now is the time to bite the bullet and recognize income pay taxes instead of waiting deferring taxes until a later year when Uncle Sam will want a bigger pound of flesh The two strategies recommended were 1 rolling your traditional IRA or 401k into a ROTH IRA in a method known as a backdoor rollover and 2 using insurance annuities I m not a fan of the latter for various reasons but mainly because today s low interest rates makes the guaranteed aspect of the annuity less valuable However with respect to the ROTH the information provided was helpful and I xpect to talk to a retirement specialist about whether that makes sense for my situation Worthwhile info to consider when planning for retirement uick read but still a little long winded due to a bit of redundancy Also worth mentioning some aspects of the strategies presented in this book are based on speculation but then again what investment #STRATEGIES ARE NOT DUE TO OUR COUNTRY S CURRENT # are not Due to our country s current low income tax rates David McKnight the author of The Power of Zero feels that now is the best time to use non deductible savings instruments in our retirement plans Taxes will never again be this low according to McKnight His opinion on this is based on our growing record debt and the underfunded Social Security problem The current tax rat. Xperts have ven suggested that tax rates have to double just to keep our country solvent Unfortunately if you’re like most Americans you’ve saved the majority of your retirement assets in tax deferred vehicles like 401ks and IRAs If tax rates go up how much of your hard La heredera del mar earned money will you really get to keep In David McKnight’s ground breaking book Th. A uick andasy read that ll cause one to reconsider a few aspects of personal finance and retirement planning Thesis Tax rates will rise in the future as the US #GOVERNMENT WILL STRUGGLE TO PAY FOR # will struggle to pay for liabilities such as social security medicare and medicaid As they get sueezed for money they ll inevitably turn to taxpayers for additional sources of revenue Current tax rates are at historical lows and can only rise in the future Therefore paying taxes now to nd up in the 0% tax bracket upon retirement is benef My State Farm agent sent me this book to read before our annual meeting to discuss my insurance portfolio and that is the most adult sentence I have ver typed Anyway I read it because he asked me to and I did learn stuff about various kinds of retirement funds and the like It definitely counts towards my 2019 reading goal because dang it I read it An xceptional read that makes you think about retirement planning in a whole different way It is relatively asy to understand however if you have a finance background it s a much asier read and well worth the time This is one of those books that was created to try to sell you something In this case it s trying to convince the reader that they have an issue with their savings plan and that there is a way to pay zero taxes that only a few rich people currently know about The solution involves using a variation on life insurance You ve been
warned I actually thought the first part of the book which lays out the forecast of much higher income tax I actually thought the first part of the book which lays out the forecast of much higher income tax in the US and the impact on different retirement savings vehicles was "interesting if lacking in detail The author conveniently ignores things like "if lacking in detail The author conveniently ignores things like gains tax and dividend taxes that are currently at a lower rate than income taxes and I suspect that will be the case ven if his forecast of tax increases occur And he ignores other tax planning schemes that those rich life insurance owners also avail themselves of like trusts and corporations I would agree that t Missing key Aramaic Bowl Spells: Jewish Babylonian Aramaic Bowls Volume One elements I was disappointed The author did not address a better way to land in the 0% tax bracket and that is through capital gains and dividends A lost opportunity Instead he uses thexpensive option of LRIPs The author glosses over many points that don t fit his argument that need to be addressed to convince the reader of the ffectiveness for his solution I would recommend the blog Go Curry Cracker over this book It is too bad that a respected name like Ed Slott associated his name with this book I learned uite a bit to utilize in my stress free discussions about retirement While I think tax planning for retirement is often overlooked I was not a fan of this book for a few reasons1 McKnight s math is imprecise and may give readers the wrong impression While he goes into marginal tax brackets later in the book he largely writes as if your top tax bracket is indeed what you pay in taxes However most people pay significantly less There’s a massive freight train bearing down on the average American investor and it’s coming in the form of higher taxes The United States Government has made trillions of dollars in promises for programs like Social Security and Medicare it simply can’t afford to keep The only way to deliver on these promises is to raise taxes It’s simple math Some Es phase out in 8 years by which time the need to dramatically raise taxes will be indisputable People saving for retirement today will have to pay taxes on reuired EMD withdrawals from their 401K s and their IRA s at much higher future tax rates while those with money in non deferred savings instruments will pay the lowest taxes or for a few prescient ones no taxesIt isn t necessary to reduce a future retiree s tax deferred savings to zero under McKnight s proposed plan Most of us already have 401K and IRA retirement savings accounts When we retire we should be able to use the standard deduction in the year of ERM withdrawal to shield that money from taxes assuming that the total value of those accounts isn t too large to do so One nlightening passage addressed the taxability of Social Security income Non taxable sources of income are considered by the IRS when determining how much of a person s social security income is taxable Municipal bond income is one of the sources that get into that calculation Even though muni income is not subject to federal income taxes it may be subject to state and local income tax and ven if not taxed by the state of residence it is used in the total income calculation used in determining social security taxation A formerly unknown retirement avoidance tool that was mentioned unknown to me that is is the LIRP Life Insurance Retirement Plan Congress allows a taxpayer to buy life insurance with large periodic payments The bulk of the payments add directly to the cash value of the policy with a small portion going toward the cost of the insurance itself The death benefit and cash surrender value go our beneficiaries tax free with the result that none of
THAT MONEY BEING SUBJECT TO ESTATE money being subject to or to income tax The benefit to the purchaser of the policy is that the cash values in these policies are liuid The purchaser can borrow those funds back at any time for any purpose The borrowings carry a modest interest rate to legitimize the transaction as a loan to the IRS but the loan is an investment of the insurer and its interest arnings are added to the policy s cash surrender value I regret that the author did not provide the names of insurance companies who sell these types of policies as I was unable to find any with a google searchRetirement plans are as individualistic as any form of investment plan I ve tried doing it on my own but after reading The Power of Zero I realize that I have left myself open to paying taxes than I could have had I taken a different savings tact prior to retirement Don t make the same mistake We re all hoping to njoy a healthy fun filled retirement someday IRS reuired minimum distributions are unavoidable so part of our retirement plan needs to include a strategy for minimizing the tax conseuence they represent Read The Power of Zero and other retirement books as they all provide ideas and raise issues that need to be considered and addressed in a good retirement pla. E Power of Zero he provides you with a step by step roadmap on how to get to the 0% tax bracket ffectively One Wild Weekend eliminating tax rate risk from your retirement picture Why is the 0% tax bracket so powerful Because if tax rates double two times zero is still zero The day of reckoning is fast approaching Are you ready to do what it takes toxperience the power of ze.