- Paperback: 104 pages
- Publisher: Acanthus Publishing (January 22, 2014)
- Language: English
- ISBN-10: 0989000192
- ISBN-13: 978-0989000192
- Product Dimensions: 6 x 0.2 x 9 inches
- Shipping Weight: 7.5 ounces (View shipping rates and policies)
- Average Customer Review: 357 customer reviews
Amazon Best Sellers Rank:
#137,365 in Books (See Top 100 in Books)
- #292 in Retirement Planning (Books)
Enter your mobile number or email address below and we'll send you a link to download the free Kindle App. Then you can start reading Kindle books on your smartphone, tablet, or computer - no Kindle device required.
To get the free app, enter your mobile phone number.
Other Sellers on Amazon
+ $3.99 shipping
+ $4.73 shipping
The Power of Zero: How to Get to the 0% Tax Bracket and Transform Your Retirement Paperback – January 22, 2014
Inspire a love of reading with Prime Book Box for Kids
Discover delightful children's books with Prime Book Box, a subscription that delivers new books every 1, 2, or 3 months — new customers receive 15% off your first box. Sign up now
Frequently bought together
Customers who viewed this item also viewed
About the Author
David McKnight graduated from Brigham Young University with Honors in 1997. He is a nationally recognized speaker and his popular workshop “The Power of Zero” has been seen by thousands of Americans from coast to coast. This workshop was recently showcased at Forum 400, an annual gathering of the top 1% of financial advisors in the nation. In 2014, David will be a Focus Speaker at the world wide annual conference for Million Dollar Roundtable in Toronto, Canada. David has trained thousands of advisors on the power of the zero percent tax bracket and currently serves as mentor to an exclusive group of financial advisors from across the country. He is the President of David McKnight & Company located in Mequon, Wisconsin. David is very involved with his family, church and community. He currently resides in Grafton, Wisconsin with his wife Felice and their six children. For bulk discounts, go to thepowerofzerobook.com. Learn more at www.thepowerofzeropercent.com
357 customer reviews
Review this product
Showing 1-8 of 357 reviews
There was a problem filtering reviews right now. Please try again later.
If your ETF is worth $1,000,000 and it consists of $500,000 of long term capital gains you could do this for 5 years all at 0% tax rate! Should you sell $200,00 of your ETF even if you don’t need that much income for the year? YES! By doing so you will never pay taxes on those long term capital gains. Let’s say you don’t need any income for the year. You still sell $200,000 of the ETF so you can get 0% tax rate on $101,200 of long term capital gains and you immediately go out and buy $200,000 of the same ETF to continue deferring. This effectively raises your cost basis on this $200,000. Some will say what about the wash sale rule? That ONLY applies to losses not gains. If you doubt what I am saying then enter this tax information that I have presented into a 2018 tax software program and let it tell you the answer. I am sure you will trust it more than me.
A large portion of the book tells you that if you are going to have more income than your standard deduction/exemption in retirement you do not want to have any tax deferred money like a 401K. He explains that when it comes to the money you want to invest, if you are paying a 25% Federal tax rate now, you will likely be paying at least a 25% rate in the future and when you do the math both a 401K and a Roth IRA would come out the same. Thus he says you should generally choose a Roth type of investment because taxes are likely to be higher in the future and if they are even 1% higher you will come out better off.
I pulled out the actual tax tables and materials from last year. I quickly realized that for many people the money you are currently investing in a 401K may in fact be taxed at the 25% federal rate like the book provides in most of its examples. However, I also quickly realized that for many people when they go to take distributions in future years they will never go above the 15% rate. Thus, if tax rates did not go up a person in this situation should be better off with the 401K. Even if they did go up, they could go up from 15% to 25% and just make it back to the rate currently being paid.
In all fairness the author does say that whether or not you should invest in a Roth over a 401K comes down completely to whether or not you will be paying a higher tax rate in the future. The problem is that all the examples and illustrations are situations where you are paying as high or higher a tax rate in retirement. He never talks about the fact that a tax rate exists that is lower than the 25% but higher than 0%. But I believe a lot people in retirement will end up in one of these brackets when they were in a higher bracket while working.
I do also have to add that in some cases it might be better accepting the higher 25% rate now with a Roth rather than paying 15% in the future on a 401K distribution if that allowed you to avoid paying any taxes on your social security. He explains in the book how you could do this if you do not have much regular or deferred income in retirement. I did not try to go through all those calculation to see when that would pay off because if you have any significant pension or other income it throws you out of that possibility.
I originally started to give it one star because I felt it left out very critical information needed to understand. However, I changed it to two because it does give you a lot of information that is good...you just have to remember there is a 10% and 15% rate and figure out for yourself how those rates affect your situation.
In all fairness,