Will the Government’s new plan to increase Americans’ retirement security work?
January 28, 2010 by Pamela Yellen · 12 Comments
With much fanfare, the White House has announced the highlights of what they are recommending to help you save for a secure retirement. Will it help you… or hurt you?
Let’s take a look at the major provisions…
1. More Americans will be herded into a retirement plan system that most experts agree is broken
According to a newly released White House Fact Sheet, the administration wants to force many of the 78 million working Americans not currently covered by employer-based retirement plans into them. They will do this by requiring employers to enroll their employees in automatic direct-deposit IRAs, unless the employee opts out.
Experience shows most employees do not opt out. The result? Many more people will be relying on the same investment strategies that have lined the pockets of Wall Street and dashed the retirement hopes and dreams of millions of Americans.
On the other hand, those who use the Bank On Yourself method have been able to move closer to their financial goals and dreams each and every single year. To find out how you could turn your back on the stomach-churning ups and downs of stocks, real estate, and other investments, request a free, no-obligation Analysis today.
2. Proposed tax credits for retirement savings contributions mean you will be paying for other people’s investment mistakes!
Even millions of Americans who pay no taxes will receive these credits, under the administration’s proposal.
3. Employers will be expected to do what even the experts can’t
Employers who offer so-called “target-date” mutual funds will be expected to “evaluate their suitability for their workforce.”
These funds, which automatically shift assets over the individual’s lifetime to lower risk as the person approaches retirement age, failed miserably to accomplish that goal during the 2008 crash.
In addition, studies consistently show that 80% of all investment advisors and 80% of all mutual funds underperform the overall market1. Yet employers with no training or experience will somehow be expected to determine which funds will do well.
4. The government wants to “promote” the availability of annuities and other forms of guaranteed lifetime income in 401(k) plans
Unfortunately, the growth and returns of some of these products may not even keep up with inflation.
5. Beleaguered small business owners will face new costs and administrative burdens
According to the National Small Business Association, 64 percent of small business owners surveyed said revenues declined in the past 12 months.
When small businesses are struggling to stay afloat, we oppose mandates such as this that stand to create a new administrative burden”
- Molly Brogan, vice president of public affairs for the NSBA
6. The government controls your money in retirement plans, not you
The government determines when and how much you can take out of your retirement plan, and can change the rules any time they want.
Proposals to do just that have already been floated through Congress.
And if the government wants to force you to buy Treasury debt with part or all of their retirement plan money, because China and Brazil won’t take the risk any more, they can do it.
7. While expert after expert agree that the current systems of saving for retirement are broken, few offer any viable alternatives
Yet hundreds of thousands of people who use the Bank On Yourself method did not lose a penny during the market crash of 2008, or during the “lost decade” of the 2000’s.
Their plans have all continued growing – safely and predictably, and without the risk or volatility of stocks, real estate and other investments. Which may explain why my offer to pay $100,000 to the first person who uses a different strategy that can match or beat Bank On Yourself remains unclaimed.
Bank On Yourself isn’t a magic pill. It takes a little patience and discipline. But if you have those traits, it pays a lifetime of benefits.
To find out what your bottom-line numbers and results could be, and how much income you could count on at retirement, just request your free, no-obligation Analysis.
There's no obligation on your part
If you take the first step now, you could start taking back control of your money and your future financial security in as little as 60 days!
1 Hulbert Financial Digest, The Motley Fool
Lessons from a lost decade
January 15, 2010 by Pamela Yellen · 4 Comments
I’ve lost a bet. I’ve lost my keys. But I’ve never lost a decade – until now.”
- Sam Stovall, S&P’s chief strategist
The S&P 500 ended the past decade down almost 25 percent below where it was ten years earlier. And that doesn’t even factor in the 29% inflation we experienced during the decade.
In fact, since the end of 1999, the S&P 500 stock index has lost an average of 3.3% a year, on an inflation-adjusted basis, even after including dividends, according to the data compiled by Charles Jones, finance professor at North Carolina State University.1
Hmmm… so what does that mean to the typical family in dollars and cents?
You may want to grab a bottle of Pepto-Bismol, because it isn’t very pretty…
Here’s what inflation and negative returns have done to a nest egg invested in an S&P 500 index fund (the way most Americans’ retirement savings are), over the past decade…
You now need a 39.9% increase just to get back to where you were ten years ago!
Given that the stock market has just experienced its fastest climb since 1933, how likely do you think it is that we’ll have another 39.9% rise this year? Especially given soaring government spending, stubbornly high unemployment, and looming tax hikes.
Bank On Yourself: A financial plan you can count on
December 11, 2009 by Pamela Yellen · 18 Comments
Oh what a roller-coaster year this has been! Our entire financial system and economy almost fell off a cliff.
And while there are some hopeful signs of new life in the economy, this year has also brought us:
- Massive bailouts
- A tripling of an already-bloated federal deficit
- A falling dollar
- Rising foreclosures (and likely to spike as billions of dollars in ARM’s are now coming up for adjustment)
- Major banks and investment houses taking on three times (!) the risk they were before the collapse
So what do you think next year has in store for us?
No one really knows for sure. (Well, except maybe the folks at the Psychic Hotline.) So how do you prepare for a very uncertain future?
Here’s a quick quiz that may reveal an answer for you…
What’s the one financial asset that increased in value during the market crash of 2008? And in 1929? And in every period of economic boom and bust in between?
Answer: The product used for Bank On Yourself: Cash-value life insurance.
As I’ve mentioned, my husband Larry and I now have 18 Bank On Yourself policies. I’ve picked one of them to show you how a dividend-paying whole life policy like this can grow over time – even when the markets are plummeting. It’s a great example of how Bank On Yourself gives you the peace of mind that lets you sleep at night.
Here’s how much this plan has grown each year since the beginning of 2000, a period that includes not one, but TWO devastating market crashes. In four of these years, the S&P 500 was down for the year, as you can see in this side-by-side comparison:
If you had put $10,000 into an S&P 500 Index fund at the beginning of 2000, how much do you think it would be worth today?
Take a guess before you read on.
Bank On Yourself success story video
December 2, 2009 by Pamela Yellen · 9 Comments
In my best-selling book on Bank On Yourself, a number of folks shared the personal and intimate details of how they’ve been using Bank On Yourself to reach a variety of short-term and long-term personal and financial goals and dreams.
Perhaps one of the most inspiring stories was shared by Greg and Christy Gammon. Since I interviewed them, their lives have taken some interesting twists and turns, and their Bank On Yourself policies have come to the rescue in surprising ways.
This short video update, filmed during my national book tour, reveals the details. Just click the play button below…
There's no obligation on your part
No two Bank On Yourself plans (policies) are alike. Each is custom-tailored, so yours would be uniquely suited to your goals and dreams. It’s easy to find out what your bottom-line numbers and results could be. Simply request your free Analysis here… and take the first step towards taking back control of your financial future. Why not do it now, while it’s fresh on your mind?
Six Frequently Asked Questions about Bank On Yourself
November 13, 2009 by Pamela Yellen · 6 Comments
I thought you might find it helpful to have the answers to the six questions about Bank On Yourself 
we’re most often asked – right at your fingertips.
How many of these questions have you been wondering about?
FAQ #1: 
How does Bank On Yourself compare with traditional investing and savings strategies?
You can compare the Bank On Yourself method to traditional investments here, including stocks and mutual funds, a 401(k), a ROTH plan, real estate, gold, commodities and several other investments.
If there’s a different financial product or strategy that you think can match or beat the Bank On Yourself method, I encourage you to take the $100,000 Challenge. If you’re right, you could pick up an easy $100K!
FAQ #2: 
How does Bank On Yourself let you recapture every penny you pay for major purchases like cars, vacations, business equipment or a college education?
I’ve summarized this in a short video overview of how Bank On Yourself works.
However, for a more detailed explanation, you’ll want to review Chapters 2, 6, and pages 52-54 of my best-selling book, Bank On Yourself. If you don’t have the book, we offer a 35% discount on it.
FAQ #3: I’ve heard people like Dave Ramsey and Suze Orman say whole life insurance is a lousy place to put your money. Is a Bank On Yourself-type policy different from the kind they’re talking about?
Videos reveal how Bank On Yourself turns dreams into reality
November 5, 2009 by Pamela Yellen · Leave a Comment
I think you’ll find the two short videos I’ve posted here of special interest, if you’ve been wondering how you’re going to reach your financial goals in today’s challenging environment.
The first video (filmed during my national book tour) reveals how the Corey Family is using Bank On Yourself to accomplish a number of goals and dreams, including:
- Funding their kids’ college educations without going broke
- Getting back their real estate taxes… and the cost of custom-made furniture they bought for their home
- Being on track to a six-figure-a-year retirement income they can predict and count on
Just click the play button below to find out how the Corey’s are doing all this…
Please enable Javascript and Flash to view this Viddler video.No two Bank On Yourself plans (policies) are alike. Each is custom-tailored, so yours would be uniquely suited to your goals and dreams. It’s easy to find out what your bottom-line numbers and results could be. Simply request your free Analysis here… and take the first step towards taking back control of your financial future. Why not do it now, while it’s fresh on your mind?
Now find out how the Bowsher Family used Bank On Yourself to help raise $100,000 for their church
7 Really Scary Facts about Your 401(k)
October 29, 2009 by Pamela Yellen · 10 Comments
Before you put another penny in a 401(k), find out what the government and your employer aren’t
telling you that will scare the living daylights out of you! Here are seven frightening facts you should
know about 401(k)s…
Frightening 401(k) Fact #1:
Your employer can – and probably is – making risky decisions on how to invest your money for you – without your knowledge or approval.
Many employers are now automatically directing more of your pay into your 401(k)… and automatically moving it into more risky investments – even if you had previously chosen your own investments!
And most of that money is being re-directed into “target-date” funds, which lost so much money last year, it sparked scrutiny from lawmakers and regulators. Many funds for people who pinned their hopes on retiring in one year had losses far exceeding 20%, and some funds suffered losses of 32 to 41 percent, according to Morningstar.
Shockingly, stock allocations among those funds were found to be 26 to 72% of assets!
Not to mention that the fees charged by target-date funds are “significantly higher than those charged by other funds on plans’ investment menus”.
(Source: “Companies take reins of workers’ 401k’s”, MoneyCentral.msn.com, October 10, 2009)
The growth in a Bank on Yourself policy is both guaranteed and exponential. You can predict the minimum guaranteed value of the plan, the minimum guaranteed income you can take from the policy, and for how long you could take it.
Frightening 401(k) Fact #2:
The important decisions about your 401(k) are made by someone with no training or education in most companies.
Smartest financial move ever made?
October 15, 2009 by Pamela Yellen · 1 Comment
Recently, a senior editor of the respected personal finance publication, Kiplinger, described the best financial move he’s ever made:
My wisest move was buying whole life insurance in the 1990s, precisely when countless books and articles mocked whole life as obsolete. My wife, Debbie, did the same. In the ten-plus years that we’ve paid $5,000 a year combined into our policies, both from extremely sound mutual-insurance companies, we’ve built substantial five-figure cash values, can borrow from them instantly at virtually no cost and haven’t paid a cent of tax on the earnings.”*
Like most people who have Bank On Yourself plans, Jeff’s only regret is probably that he didn’t put more into the policies!
It’s a virtual certainty that Jeff and Debbie’s policies are traditional dividend-paying whole life policies, rather than the specially-designed, super-charged variation used for the Bank On Yourself method.
Had Jeff and Debbie’s policies been designed the Bank On Yourself way, they’d have significantly more cash value now.
As the Dow moved through the 10,000 mark this week, a dose of reality is in order…
Read more
Video Overview: Bank On Yourself in a Nutshell
October 2, 2009 by Pamela Yellen · 81 Comments
We just completed a short, fast-paced video explaining what Bank On Yourself is and how it works, that I think you’ll find very helpful.
Click on the play button to discover…
- How Bank On Yourself grows your savings both predictably and guaranteed… even when stocks, real estate and other investments tumble
- How it can beat the pants off your best saving or investing method
- How the kind of policy used for Bank On Yourself is different from the ones Suze Orman, Dave Ramsey and 99.9% of all financial advisors talk about
- Why it’s an excellent alternative to traditional retirement plans
- How you can use it to get back what you pay for major purchases
- Where to find the money to get started
After you watch the video, I’d love to hear your thoughts and feedback – so please speak your mind below.
Dow 36,000? What were they smoking?
September 25, 2009 by Pamela Yellen · Leave a Comment
Ten years ago this week, the book, “Dow 36,000: The New Strategy for Profiting from the Coming Rise in the Stock Market” was published.
It became a best-seller. And, according to a recent article in the Wall Street Journal titled “Lessons of a Bull Market That Never Happened” (9/20/09):
Back then, the only people subject to sustained derision on Wall Street were those who dissented. Anyone who warned that shares might disappoint was ignored. The few predicting a crash — let alone two — were considered cranks.
Yet, in spite of the current stock market rally – one of the steepest in history – the Dow is STILL below where it stood in September 1999!
How many times during those years were your hopes raised, only to be dashed again and again?
Wall Street has some “dirty little secrets” they don’t want you to know about, but I reveal them all here.
Interestingly, one of the authors of that book recently said he still believes the Dow will hit 36,000. Meanwhile, there’s some guy now predicting the Dow will go down to 1,000!
What do YOU think will happen… and why? You can voice your thoughts below…