How will the debt crisis affect Bank On Yourself?
May 13, 2010 by Pamela Yellen · 22 Comments
A question we are getting frequently right now is how safe is your money in a Bank On Yourself plan if the debt crisis in Europe continues and spreads to the United States?
Let’s start by answering the question…
Life insurance companies are highly regulated and required to maintain sufficient reserves to ensure they can pay all future claims.
They are regularly audited by the state insurance commissioners’ offices, and sometimes by dozens of states, to ensure they are on solid financial ground. And a multi-layer safety net exists to assure your money in a life insurance policy is secure.
You may be wondering, “What about AIG?” Many people missed the fact that AIG’s problems were caused by a holding company, not its life insurance subsidiaries. Their insurance companies were walled off from the problems, have always been solvent and did not receive a bailout.
The companies recommended by Bank On Yourself Authorized Advisors are among the financially strongest life insurance groups in the world.
They enjoy some of the strongest surplus positions in the industry, approximately double the industry average.
These companies are, in essence, owned by policyowners, rather than stockholders, which allows them to focus on the long-term interests of policy holders, rather than the short-term demands of Wall Street.
Here’s what the companies used for Bank On Yourself invest in:
The truth about investing in mutual funds
May 5, 2010 by Pamela Yellen · 6 Comments
Investors earn returns over time that are far lower than those quoted by mutual fund firms. In fact, it’s not even a close race.”
This is the conclusion of DALBAR, Inc., the well-respected independent investment research firm.1
For the past 20 years ending December 31, 2009, “the average equity investor managed to eke out an annualized return that outpaced inflation.” The average return was 3.17% per year – just slightly more than the inflation rate for that period!
Asset allocation and fixed income investors weren’t so lucky (if you can call that “luck”); they lost ground after adjusting for inflation.
Why most investors don’t come close to getting the returns touted in mutual fund prospectuses…
There are plenty of reasons for this. For starters…
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