Comments on: 7 Really Scary Facts about Your 401(k)

By: Pamela

Pamela — Wed, 05 May 2010 23:59:11 +0000

Something we know about dividends is that they will change and can’t be predicted. And since the Bank On Yourself method encourages using your policy to become your own source of financing, I prefer companies that are NON-direct recognition, because they pay you the same exact dividend regardless of any loans.

I also prefer companies that have a FLEXIBLE Paid-Up-Addition Rider – very few do, though.

And finally, and I discussed in my book and website, advisors “don’t know what they don’t know” about Bank On Yourself.

They THINK they know, but only approximately 200 have been accepted into the Bank On Yourself Authorized Advisor training program and taken the rigorous advanced training to qualify to be an Authorized Advisor.

I encourage you to learn more about what it takes to qualify and the nature of the advanced training they have.

By: James L Tyree II

James L Tyree II — Wed, 05 May 2010 23:58:21 +0000

I spoke with an advisor. I also spoke to 2 other people who know how to do this. One of them has said that he prefers to use policies which are recognition policies( referring to loans taken out and being recognized and then affecting dividends) over non recognition policies because there is a higher dividend than those with non recognition polices. He said it is my choice and I could even do some policies of each type and compare them. Please explain this finer distinction. I already know what you recommend and how you feel, but want your idea on this.

By: Tony

Tony — Sat, 31 Oct 2009 18:49:38 +0000

I work for a large corporation and our 401K investment choices do not offer where I want to put my money. They promote the “before tax” “benefits” yet, the direction the current administration is headed scares the hell out of me – tax, tax, tax and redistribution of “MY” hard earned money and sacrifices. The current administration and socialist congress are doing everything they can to destroy the American economy. There is absolutely no common sense or knowledge of what made our country so wealthy in the first place – free markets.

I have already written off social (in)security – it is broke. Common sense again shows simple numbers – money in and money out – does not compute. Other countries are looking far more profitable than our ever increasing taxed and regulated (by people that broke every government system put in place). Now they want to screw up our medical system! God help us!

By: Pamela

Pamela — Fri, 30 Oct 2009 01:58:51 +0000

I’ve made it very clear that Bank On Yourself is NOT a magic pill. It takes some patience and discipline – traits that are in somewhat short supply.

Furthermore, this method has a proven track record of growing people’s nest-eggs safely and predictably for over 100 years. The problem is that many people are looking for something that will make them rich overnight and the consequences of that have been disastrous.

What sounds “too good” is the promise that saving for retirement in 401(k)s invested primarily in the stock market is a sure-fire method for achieving financial security.

The reality is that it’s anything but safe, proven or predictable. All you have to do is open your eyes and look around you for proof.

By: Michael Shaughnessy

Michael Shaughnessy — Fri, 30 Oct 2009 01:57:04 +0000

if it sounds to good than it is

By: Pamela

Pamela — Fri, 30 Oct 2009 00:45:28 +0000

Hey Jason, Thanks for your well-thought out, thoroughly documented comment. I’m guessing you’re an investment advisor. The “facts” of the matter are that you’d be hard-pressed to find a reputable source that does NOT agree that the 401(k) is an experiment that has failed miserably. I only had space in my blog post to quote from a small percentage of sources and experts who have weighed in on this, ranging from AARP, Bloomberg.com, MSN.com, CNNMoney.com, Fortune Magazine, the Center for Retirement Research at Boston College... to the New School for Social Research, Time Magazine, Worth Magazine, CBS’ 60 Minutes and the Wall Street Journal. I showed you my meticulously documented proof. Now you show me yours. I also challenge readers to compare your BEST savings or investing method against Bank On Yourself. I have a standing Challenge to pay $100,000 to the first person who uses a financial product or vehicle that can match or beat the many advantages and guarantees of Bank On Yourself. You can take the $100,000 Challenge here.

By: Jason

Jason — Fri, 30 Oct 2009 00:44:10 +0000

Nice hack piece, nearly every “fact” is incorrect. Unimpressed!

By: Pamela

Pamela — Thu, 29 Oct 2009 21:55:50 +0000

Even if Americans spent hours every day “reading up on investing”, they would never become experts. Especially when you consider that four out of five “experts” – whether investment advisors or mutual fund managers – underperform the overall market, according to The Hulbert Financial Digest and The Motley Fool. When you Bank On Yourself, your nest-egg grows safely, predictably and guaranteed every single year – with no luck, skill, or guesswork needed to make that happen. Like most people, I’d rather spend that time enjoying my life and family, than wasting it trying to become an investing expert.

By: Jim

Jim — Thu, 29 Oct 2009 21:54:12 +0000

All relevant points. Target dated should be picked according to your asset allocation not the date you retire. All your assest should be taken into consideration. If you stay with Vanguard, T Rowe Price, Fidelity the have some very good funds with low expense ratios. Problem is most Americans are too darned lazy to read up on investing and keeping expenses low and keeping taxes low.

By: Pamela

Pamela — Thu, 29 Oct 2009 21:17:14 +0000

When you pay cash for major purchases, as you’re doing, you’re half-way there. But it sounds like you may have missed a couple key chapters in my book that explain in detail how running large purchases through a Bank On Yourself policy can beat directly paying cash by a long shot. I suggest you review chapters 2, 5 and 6. One reason you are ”not becoming wealthy” using the paying cash directly approach, is that when you take your money out of your savings or money market accounts to pay cash for something, you’re now earning ZERO interest on that money. You’ll only start earning interest again incrementally, as you start saving money again. When you Bank On Yourself, you can borrow the equity in your policy to pay cash for things – or even to invest elsewhere if you wish – and your money in the plan can continue to grow as though you hadn’t touched a dime of it! How this works is explained in detail on page 68 and 69 of my book, so please review those pages closely. Note: Only a handful of companies offer a product that has this feature and meets all the other requirements are needed to maximize the power of Bank On Yourself. When you request a FREE Bank On Yourself Analysis, you’ll get a referral to a Bank On Yourself Authorized Advisor (one of approximately 200 life insurance agents with advanced training and certification in the Bank On Yourself method), who knows the best companies to use for this.