{"version":1,"type":"rich","provider_name":"Libsyn","provider_url":"https:\/\/www.libsyn.com","height":90,"width":600,"title":"High Earners: Stop Making This Roth vs. Traditional Tax Mistake!","description":"David McKnight addresses one of the most common questions he gets: \u201cIf tax rates are going to be dramatically higher in the future, shouldn\u2019t I be putting every dollar into a Roth 401(k)?\u201d. Moreover, people often wonder whether they should be converting as much of their IRA to Roth as quickly as possible. David is a firm believer that the current tax rates are as low as we\u2019re likely to see in our lifetime. The U.S. has over $39 trillion in debt and it\u2019s going to increase by two trillion per year over the next 10 years and over $200 trillion in unfunded obligations for Social Security, Medicare, and Medicaid. Many people make the critical mistake of thinking that every retirement plan contribution should be immediately redirected into Roth accounts. However, David stresses, if you\u2019re a high-income earner contributing heavily to a Roth 401(k) today may actually be one of the most expensive tax decisions you can make. David explains why he has long argued that 24% is the sweet spot. The so-called Retirement Income Valley is the window of opportunity that opens up immediately after retirement and before social security required minimum distributions kick in. David touches upon IUL and why he doesn\u2019t suggest that it should replace your 401(k) or serve as a stock market alternative\u2026 Remember: your 401(k) should remain the primary engine driving your retirement plan.  Once you\u2019ve maximized that tax deduction, an IUL can serve a very important supporting role, though. An Ernst & Young study examined what happens when retirees allocate a portion of their retirement savings to a maximum-funded index universal life policy. Researchers found that if you could divert 30% of your retirement contributions to an IUL with the goal of saving 3-5 years of living expenses by day one of retirement, it helps shield you from stock market volatility. \u201cThe IUL isn\u2019t designed to replace the investment portion of your portfolio, it\u2019s there to protect it\u201d, clarifies David. The best retirement strategy isn\u2019t the one that sounds the most compelling, it\u2019s the one that maximizes the likelihood that your money lasts as long as you do. Mentioned in this episode: David\u2019s national bestselling book: The Guru Gap: How America\u2019s Financial Gurus Are Leading You Astray, and How to Get Back on Track DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Ernst & Young    ","author_name":"The Power Of Zero Show","author_url":"http:\/\/davidmcknight.com\/","html":"