David suggests avoiding the shift of everything out of your IRA or 401k into the tax-free bucket because, by doing so, you would then have a standard deduction in retirement that sort of sits idle.
$25,900/year is the standard deduction for a married couple.
According to David, what you want to do is to be very careful about not converting too much money from the tax-deferred bucket.
Most retirement savings are in tax-deferred vehicles, says David.
Roth IRAs are the one thing that both consumers and the Federal Government like because they lead to you using after-tax dollars and it gives more revenue to the Federal Government – and it does so today, not in 20 years.
For David, the Federal Government has several tools to deal with inflation. Raising interest rates as a possible solution can create a scenario where both interest rates and the cost of servicing the national debt go up.
Mentioned in this episode:
David's books: Power of Zero, Look Before Your LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code
DavidMcKnight.com
PowerOfZero.com (free video series)
@mcknightandco on Twitter
@davidcmcknight on Instagram
David McKnight on YouTube
The Wealth & Freedom Nexus Podcast
David Walker
Stephanie Kelton
The Fatal Flaw in Suze Orman and Dave Ramsey's Retirement Planning Advice
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What Dave Ramsey DOESN’T Want You to Know About Indexed Universal Life
First Glimpse at Your Tax Bracket in 2026 (And What It Will Cost You)
How Gen Z Should Save for Retirement
Why Ken Fisher Does NOT Want You to Do a Roth Conversion
How Much of Your Social Security is REALLY Getting Taxed? (and At What Rate?)
Why Don't More Financial Advisors Recommend Indexed Universal Life?
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Clark Howard Says Fixed Indexed Annuities Stink! (My Response)
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Is a 100% Tax-Free Retirement Really Possible?
A Recent Penn Wharton Study Says that the U.S. has 20 Years to Fix Debt or Face Cataclysm
How to Figure Out How Much Money to Save for Retirement
The Best Way to Make Sure Your Money Lasts as Long as You Do
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