The Power of Zero, Revised and Updated: How to Get to the 0% Tax Bracket and Transform Your Retirement by David McKnight

(New York: Currency, 2014, 2018), 140

  • "The best way to insulate yourself from the impact of rising tax rates is to put yourself in the 0% tax bracket." (81)
  • We have some of the lowest tax rates in history (chart on 10 and 2018 tax chapter on 67).
  • The Taxable Bucket: keep 6 months of living expenses here for liquidity (checking/savings, CD, stocks, bonds, etc.)
  • The Tax-Deferred Bucket: contribute enough to get any employer 401(k) match but not much if any more
    • If taxes are the same, it doesn't matter. But if taxes go up, you would rather pay them now.
  • The Tax-Free Bucket: maximize remaining contributions into the tax-free bucket (Roth IRA and LIRP) to have as much income as possible not taxed in retirement.

Chapter 1: A Gathering Storm

Chapter 2: The Taxable Bucket

Chapter 3: The Tax-Deferred Bucket

Chapter 4: The Tax-Free Bucket

Chapter 5: The LIRP

Chapter 6: The Tax Sale of a Lifetime

Chapter 7: Putting It All Together

Chapter 8: Pensions and the 0% Tax Bracket

Chapter 9: The Tax-Free Road Map

Chapter 10: Frequently Asked Questions

Topic: Financial Planning

Source

Bibliography

file:(2019-01-01-The Power of Zero)

New Words

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Created: 2019-06-17-Mon
Updated: 2023-03-16-Thu