Comments on: Bank On Yourself: A financial plan you can count on

By: Pamela

Pamela — Mon, 14 Mar 2011 20:15:55 +0000

It's explained in depth in Chapter 6 of my book. You wouldn't typically plan or expect to repay loans or withdrawals when taking retirement income.

By: lauren

lauren — Mon, 14 Mar 2011 20:14:07 +0000

Pamela, can you explain more about”not repaying policy” when drawing retirement income….thanks

By: Pamela

Pamela — Sun, 10 Oct 2010 20:04:35 +0000

Every situation is different, as is every policy, but, yes - it is possible to do what you propose. And, in fact, my best-selling book profiles people who used Bank On Yourself to accomplish similar things. But you should speak to a knowledgeable Bank On Yourself Authorized Advisor, who can show you your options and go through the pros and cons. You’ll get a referral to one when you request a free, Bank On Yourself Analysis.

By: bill

bill — Sun, 10 Oct 2010 20:03:38 +0000

I never read the book but am signing up as it sounds good to get rid of interest to car and house loans. to be able to get a boy loan faster can you put up say 15-20,000 to start? asking cause would like to save on my car loan which I owe 6,000 on.
plus, still have a home loan I could pay extra per month to reduce the overall cost till I can pay it off as well. The money I would use to pay it off is in an old 401k but the car loan interest is high so it would be more then good to take the penalty on the 401k as would save more from the car loan interest saved.

By: Pamela

Pamela — Fri, 16 Apr 2010 17:32:34 +0000

Yes, Bank On Yourself makes life a lot easier. When they sell you on these government-sponsored retirement plans, the tax-deferral is a great carrot.

But they never tell you about all the strings attached to it or discuss an “exit plan.”

You’re going to pay taxes if you take money out of your profit sharing plan at your age. But read chapter 7 of my book for ideas of how other people have handled this.

And get a referral to a Bank On Yourself Authorized Advisor to discuss your unique situation.

By: Keith

Keith — Fri, 16 Apr 2010 17:31:49 +0000

So that I understand correctly, I could use money from my pension(profit sharing) to fund BOY hopefully without tax penalties(I’m 40), continue making premiums from the same account without tax consequences(hopefully) and take out loans from BOY to be paid back by my same profit sharing account? That’s like too easy?!

I have oodles of debt(credit cards), car payments, rent, etc, but a profit sharing plan that if I touch comes with additional penalties. BOY would make life so much easier…

By: Pamela Yellen

Pamela Yellen — Wed, 17 Mar 2010 22:28:03 +0000

Hi Peggy, People do this up into their 70's and 80's. If you're in "pretty good" health, there's an excellent chance you could live another 30 years, so you want to make sure your money doesn't run out before you do. To find out how you could benefit from a custom-tailored program, request a Free, no-obligation Analysis to take the next step.

By: peggy

peggy — Wed, 17 Mar 2010 22:27:40 +0000

What are the age restrictions?? I am 62.

What about health conditions restrictions?? I have no major diseases and am in pretty good health.

By: Pamela Yellen

Pamela Yellen — Mon, 15 Mar 2010 00:49:40 +0000

Hi Junhui,

Keep in mind that dividends can be used to pay premiums, if you should be unable to pay them out of your own cash flow.

If you rely on this way of paying your base premium too much during the first year or so, it could cause the policy to lapse. (If a policy lapses, you’d receive the cash “surrender” value of the policy.)

The idea is that you don’t repay your policy loans when you’re drawing retirement income.

Hope this helps!

By: Junhui

Junhui — Mon, 15 Mar 2010 00:48:26 +0000

Pamela,

After reading your book, I still have several questions regarding B.O.Y investment strategy:
1.) What would it happen if someone is not able to pay the basic premium due to some difficulties along the road? Will the plan lapse and you lose all the money you put in before?

2.) If I have to pay back the loan with interest every time I take money out of my plan, how can I use it as my retirement income since I have no other financial source at that time?

Thanks.

Junhui