BOOK REVIEW: THE POWER OF ZERO How to Get to the 0% Tax Bracket and Transform Your Retirement (by David McKnight)

Book Reviewed by Patrick Blair on November 16, 2018

First Impression Versus Lasting Impression: The title portends an in-depth, long-term strategic analysis of how to shelter your wealth from taxes.  That’s exactly what the book is!

The Book in a Word: Taxes.

Summary: The author, David McKnight, explains why he believes individual taxes in the U.S. will be sharply rising in the long-term future.  He breaks down our savings into three buckets: taxable, tax-deferred, and tax free.  By carefully balancing how we put our money into these three buckets, we can minimize (or even eliminate) the tax we pay in retirement.

What I Liked the Most: was the straightforward, sensible explanation of what could otherwise be a complex topic.  I enjoyed the discussion of macroeconomics but wish there was more.

What I liked the least: was that the book is a little boring, but not because it isn’t well written (it isn’t pleasure reading).  It’s a persuasive, how-to piece on tax planning for your retirement.

Recommended for: those 45 and over or younger readers who have started to build up significant retirement savings who want to know how to maximize their retirement dollars.

Not Recommended for: those seeking basic investment insights.  Reading The Power of Zero will not help you with basic wealth building or investment concepts.  It is an advanced book that helps you understand long-term tax planning.

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Reading Level: Basic … Intermediate … Advanced to Scholarly.

Interesting Concept: The Catch-22 reality of tax-deferred retirement plans.  The Power of Zero exposes the onerous taxes that await many unsuspecting senior citizens due to: reduced deductions, required minimum distributions, social security provisional income tax, and poor mathematics.

Great Quotes: “You see Social Security was never intended to be a retirement program.  It was merely insurance against living too long.” (p. 3, after explaining the history of the program).

Spiritual Content: None.  The book is purely practical.

Book Citation: McKnight, David C. The Power of Zero /: How to Get to the 0% Tax Bracket and Transform Your Retirement. New York: Currency, 2018.

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