The contest even inspired one reader to write a poem!

I’ve been studying these topics full time for nearly a decade now, and even I learned some new things.  So, whether you use the Bank On Yourself method or not, or you consider yourself to be an expert or a novice at understanding money and finances, you should read this!

You will undoubtedly learn some things you didn’t already know!

There were so many great contest entries, it was really tough for our team to single out only the five best entries, and the winners of the iPod Touch, Amazon.com gift certificate and more are listed below.

The contest question was:  How is dividend-paying whole life insurance different from a savings account, besides the death benefit?

Our readers gave a dozen or so distinct, key differences between the two, and I’ll summarize a number of them in a moment.

However, I think one really critical advantage of a dividend-paying whole life policy wasn’t mentioned…

Many retirees today can’t stomach the volatility or unpredictability of investing in stocks and other traditional investments and were counting on their interest income from CD’s, money markets and savings accounts.

Most Americans today have NO clue when or even if they'll ever be able to retire!

Unfortunately, they made their plans based on assumptions, NOT guarantees.

Few retirees anticipated interest rates being around 1% for an extended period of time, which is the reality they’re facing today.  And the impact is catastrophic…

Let’s say you have $500,000 saved up, and your plan was to live off the interest when you’re retired, so you don’t have to draw down your savings.  And, like many people, you may have based your assumptions on being able to get an average of 5% interest per year.  That means you anticipated your savings throwing off $25,000 a year.

But “reality” didn’t live up to your best-laid plans.  Now you’re 70, and, at 1% annual interest, you’re only getting $5,000 a year, NOT the $25,000 you had planned on.

Unfortunately, you’re faced with several choices, none of them very pleasant – give up any luxuries and probably some things you consider necessities, go back to work, and/or cash in some of your savings.

If you need to eat into your principal and you have to withdraw $20,000 to make up the difference, well, that’s $20,000 you’ll NEVER be able to earn a dime on again!

It wasn’t “supposed” to work out this way, but you never had any guarantees!  Just like you  have no guarantees when you’re investing your retirement savings in stocks, real estate and other traditional investments.

As a result, most Americans today have NO clue when or even if they’ll ever be able to retire!

Shockingly, the average family headed by a person between 60 and 70 years old has only 25% of the amount they’ll need for retirement saved up! (Source:  October 2011 AARP Bulletin)

So, how does a dividend-paying whole life policy solve this dire problem?

These policies provide you guaranteed, predictable annual increases that are the largest when you need it most – retirement!

If you use the Bank On Yourself method, then you know – right now – what your guaranteed annual increase will be when you’re 75.  And when you’re 80, 95, or 100 – or in ANY given year.

In addition, you KNOW that your guaranteed increase gets larger each year, which also gives you some protection from inflation.

And this critical difference between Bank On Yourself and EVERY other savings or investing product or strategy changes absolutely everything for you between now and the end of your life!

And that’s a big part of the reason so many of the contest entrants also expressed such gratitude for their Bank On Yourself plans.

Many of the contest entries pointed out other key differences between dividend-paying whole life (“DPWL”) and a savings account, including…

1. Savings accounts pay a variable (read:  unpredictable) interest rate.

To keep it very simple, DPWL policies pay you a guaranteed interest rate (typically 4% or so) on your cash value.  PLUS, you have the potential to receive dividends.  Dividends aren’t guaranteed, but the Bank On Yourself Authorized Advisors only recommend companies that have paid dividends every single year for at least 100 years.

DPWL dividends aren’t calculated like any other kind of dividends.  They are credited based on the death benefit of your policy.

Key Concept:  The ONLY way you could receive just the guaranteed annual increase is if the insurance company stopped paying dividends now and never paid you a single dividend until the day you die.

2. You can spend or invest the equity in your policy and the policy keeps growing as though you never touched a dime of it! With a savings account, when you withdraw funds, they no longer earn any interest.

NOTE – only a handful of insurance companies offer policies with this feature, in addition to all the other features required to maximize the power of this concept – another reason to be sure to work with a Bank On Yourself Authorized Advisor who knows which companies to use and can structure your policy to maximize the growth and minimize your taxes.

To get a referral to one of only 200 advisors who have met the rigorous requirements to be an Authorized Advisor, request your free Analysis now.

3. You can borrow your equity in the policy without having to apply or qualify for it, and you can’t be turned down for a loan!  Plus, you can pay it back on your own schedule, not someone else’s.

If you borrow from a savings bank using your account as collateral, you have to go through an approval process, and you must pay it back on a pre-arranged schedule.  You’ll be charged a penalty if you’re late making a payment.  Many banks will only allow you to borrow up to 50% of your account value, and they can seize your money to cover your loan in full, if you miss a payment.

4. You can immediately withdraw 100% of the money you put into a savings account.  As noted by one contest entrant, Dan Proskauer, “This is not true for dividend-paying whole life.  It’s a long-term commitment, and if you liquidate it early, you will lose capital.”  (Dan isn’t a financial advisor, but he knows more about this than most experts do.  Dan shared his fascinating story on this blog, and I encourage you to check it out.)

And that is what I’m referring to when I say that Bank On Yourself isn’t a “get-rich-quick” scheme.  It takes some patience and discipline.  But for those who have those traits, it pays a lifetime of rewards and provides you with more advantages and guarantees than any other financial product or strategy.

5. Interest you earn from a savings account is taxable at the federal and usually state level, too.

It’s possible to access the growth in a DPWL policy with no taxes due, under current tax law.  This happens through the proper combination of dividend withdrawals and loans against your cash value.

6. Life insurance companies are far more regulated than savings banks.  Unlike banks, which can loan out every dollar ten times, life insurance companies can’t do that.  They are legally required to maintain sufficient reserves to pay future claims.

Learn more about the multi-layer safety net for life insurance companies here.

7. DPWL provides asset protection benefits for both your cash value and death benefit in many states.  (Check with a professional on the rules for your state.)

And that sums up the biggest differences listed by subscribers between dividend-paying whole life and a savings account.

You may also be interested in learning what the rate of return is on a properly designed Bank On Yourself-type policy.

For these reasons – and many more – I know of no better place to park your money than in a properly designed Bank On Yourself-type policy.

And I’ll pay you $100,000 to prove me wrong!

That’s right!  My offer to pay $100K to the first person who can show they use a different strategy that can match or beat Bank On Yourself still stands – nearly three years after I first threw out the gauntlet!

Go ahead – I dare you to take the Challenge!

Bank On Yourself is the best sleep-through-the-night financial security blanket I’ve come across after researching over 450 different financial products and strategies over the past 20 years.

Don’t you owe it to yourself and your family to at least find out what your bottom-line numbers and results could be if you added Bank On Yourself to your financial plan?

Stop hoping and start knowing what your financial future will be!

It’s easy to find out when you request your FREE Analysis.  Please do it today, if you haven’t already!

And now for our contest winners…

As I mentioned, there were so many terrific entries, it was hard to pick out only five winners.

But here they are (all are being notified by email that they have won)…

1.  The iPod Touch winner is Michael S.  Michael brought out some of the advantages business owners can get by financing business purchases with Bank On Yourself.

Michael also confessed to occasionally forgetting all the advantages he’s getting from his three policies (something other readers can relate to, I’m sure) and how reading this blog and reviewing his policy statements and information “reminds me of all the benefits to stay with the plan.”

2.  The $100 Amazon.com Gift Certificate winner is Craig Yenni, who was inspired to write this delightful poem!

Here are the three winners who will each receive their choice of a $25 Dining Gift Certificate or a personally autographed copy of my best-selling book:

1.  Rose Hillbrand, who made several helpful comments not only in this contest, but also on other blog posts over the last several years.

Rose was an “early adopter” of the Bank On Yourself wealth-building method.   Her story – captured on video – is very moving.  Check it out here.

2.  Gentry Eddings, who pointed out the problems with the reserve requirements for banks and the pitfalls of FDIC insurance for banks.

3.  Kevin C. also wins for figuring out that he could search this website for comments I’ve made comparing DPWL to a savings account.  (I didn’t even remember saying the quote he found.  And I’ve now tweaked it in this blog post.  Thanks, Kevin!)

And thanks so much to everyone who participated!

Did you learn something new from this contest and post?  Let us know in the comments box below…

These “experts” promote the concept as if it makes perfect sense to make up for your gambling losses by doubling your bets.

To me, it’s appalling that anyone would advise those who are already retired to gamble their life’s savings on the volatile, risk-filled world of Wall Street.

But my message – that Wall Street is unstable and potentially as explosive as nitroglycerin – is really not age specific. The stock market can (and will) blow up in your face at any age.

For most Americans – and Wall Street goes to great lengths to hide this truth – the stock market is a promise unmet.

The success myth hyped by the financial services industry is like a casino showcasing its big winners, without mentioning that the prize pool derives from the much larger pool of losers who generate huge profits for the operators, but who themselves walk away worse off than if they had stayed at home.

Money isn’t the only price that the Wall Street casino extracts from most investors

Peace of mind is surely as much a toll. When it comes to steep ups-and-downs and hairpin curves, the stock market is unrivaled by even the most infamous amusement park rollercoasters.

Yet the rollercoaster metaphor only goes so far. For while both Wall Street and theme park thrill rides will set your head spinning and sometimes rocket your stomach into your mouth, only one guarantees a safe, predictable, rapid landing back where you began. The other never does.

The Wall Street propaganda machine is so mighty and so effective, that most Americans continue to buy into the myth that the stock market – over the long-term – is the best place to grow personal wealth. That’s the case, amazingly, even for the tens of millions of Americans whose own money-losing experiences repeatedly prove otherwise.

It’s time to let the “Big Secret” out of the bag: You Are Not Alone. Your eyes, and your personal experience, are not deceiving you. King Wall Street really is not wearing any clothes. Those who say it is are too afraid to admit that they too have been snookered by the promoters who always manage to get paid, whether you win or lose.

There are loads of numbers and statistics to validate my point. (Although I’ll bet that most people reading this column don’t need me to reaffirm what their own stock market misadventures have already proven.)

Here’s an example of the reality versus hype facts that Wall Street wants you to overlook:

The stock market has plunged more than 45% – TWICE – over the past decade. You may not vividly remember the sting of the last crash, but don’t fool yourself into thinking it isn’t going to happen again.

Even in bull markets, if you are like the average investor, you will wait too long to buy and then compound your misery by selling after the bubble has inevitably burst. What money you do manage to preserve could very well be subject to fees and taxes that will chew up a hefty chunk of what should have been yours. What’s left, the scraps, will be your only financial legacy.

So why do so many Americans continue to cling to the notion that Wall Street offers them the best hope of wealth creation?

The main reason is that no safe, non-volatile alternative has yet been able to penetrate the fortress that Wall Street and its promoters have successfully built around the collective consciousness of the American public.

Put another way: There may be a better mousetrap, but it won’t do you much good if you are prevented from knowing it exists.

After investigating more than 450 different financial products and strategies, I know a better way does exist – it’s called Bank On Yourself and it works for old and young alike. It works for those who start out rich and those who start out wanting to be rich. And, best of all, it has worked flawlessly for more than 160 years.

My research led me to conclude that Wall Street has brainwashed the American public into believing we must accept risk and volatility in order to grow a sizeable nest-egg.

Of course, I’ve taken a lot of flak for taking on the financial fat cats. But the $100,000 cash reward I’ve offered to the first person who can show they have a better strategy remains unclaimed after nearly three years.

As Benjamin Franklin noted…

You will observe with concern how long a useful truth may be known and exist, before it is generally received and practiced on.”

Make no mistake: If you don’t know what your retirement account will be worth in 10 or 30 years, you don’t have a financial plan. And if you don’t know how much income you can count on from your investments in retirement, you don’t have a plan. You are gambling.

So whether you are in or nearing retirement, or just starting out on your career path, I urge you to do your research and leave the rollercoaster rides to the amusement parks. Let Wall Street grow even richer using someone else’s hard-earned savings.

• Why she’s so passionate about the Bank On Yourself Method
• Why she created the $100,000 Challenge – a cash reward for the first person who can show they use a different strategy that can match or beat the advantages and guarantees of Bank On Yourself
• Three tips you can use today to take back control of your money and finances

So, relax and enjoy this “Skype” video interview:

James Rick, also known as “Mr. Full Potential,” is the founder of FullPotential.com and author of  “Unleash Your Full Potential.” James is a lifestyle strategist for living your best life, cutting costs and building wealth through what you love! So check out his other terrific interviews!

Individual investors are moving into stocks and riskier investments

Since the financial crisis, and until very recently, individual investors (that’s you and me) largely avoided stocks.  But now, as the stock market continues on a sharp rise that is already one of the steepest in history, people begin to fear they will miss out.  According to a recent article in the Wall Street Journal¹….

Stock-market fever is one of your biggest enemies as an investor… It’s pure instinct.  We’re hard-wired to run with a stampeding herd and to seek safety in numbers.”

The article advises that you shouldn’t trust the crowd, because, “they’re usually wrong.  Time and time again, studies show the public invests at the wrong time – they get bullish and buy after shares have risen, and then panic and sell after they have fallen.”

Just as they did before the housing bubble burst and just like they did before the dot.com crash.  And just like they have done throughout history.

The article notes that, “too many TV market pundits talk like they’re on ESPN.  It gives the stock market a phony air of urgency and excitement.”  And it reminds us that, “if you’re buying, higher stock prices are bad, not good.”

Wall Street lost more than 40% of our money -TWICE – in the past decade

How can you be sure they’re not about to do it again?

Dow 12,000 has been greeted with glee, even though the market first closed above that level on October 19, 2006.  And I recently explained why the Dow would have to be at 27,000 – TODAY! – to give you just a 5% annual return since 1999!

The Wall Street Journal article points to four obvious reasons why the recent rise is “on thin ice”:

1. The government continues to print money and is borrowing $1.3 trillion a year from the future to jump-start the economy now

2. Debt – including government, household and corporate – is already at record levels

3. Housing prices are still falling and the jobs picture remains gloomy

4. China and emerging markets are experiencing raging inflation and fears are rising of another debt crisis in Europe

And here’s one more I’ll add that’s very frightening:

5. Consumer spending is up – which is helping to propel the stock market rally.  The problem is that consumers are doing that by dipping into their savings.  In fact, according to another Wall Street Journal article, Americans have dipped deeper into their savings over the past two years than at any point in the past six decades!

And, according to Bloomberg.com², the saving rate in December decreased from 5.5% to 5.3% to support the buying frenzy.  Only 35% of Americans have enough emergency savings to cover 3 months of living expenses according to a recent survey³.

So, it would appear that…

Many people have already forgotten the lessons learned over the past 3 years…

And even if you consider yourself a disciplined, intelligent investor, the reality is that you still suffer from the sins of the “stampeding herd” described above.  The key to a secure financial future is to first build a financial foundation that is not dependent on risky, unpredictable, volatile investments.

That gives you the ability to weather life’s ups and downs and know you’ll still have a retirement income you can predict and count on.

The Bank On Yourself method gives you the peace of mind and predictability missing from so many people’s financial plan.  And a $100,000 cash reward still awaits the first person who can show they use a different financial product or strategy that can match or beat the advantages and guarantees of Bank On Yourself.

If you haven’t already taken advantage of a free Analysis that will show you how you could have a nest egg that grows at a guaranteed and predictable rate and that never has a losing decade – or even a single losing day – request a free Analysis now, while it’s fresh on your mind!

What’s the biggest lesson you’ve learned from the financial crisis?

I know many subscribers have changed their behavior as a result of their experiences over the past 3 (or 10) years.  We want to hear from you!

Tell us in the comments box below what’s the biggest lesson you’ve learned from the financial crisis and how you’ve changed your behavior as a result…

1. “Don’t Get Carried Away by the Market Rally”, Brett Arends, The Wall Street Journal, January 16, 2011
2. “U.S. Economy: Consumer Spending Increased in December”, Shobhana Chandra, Bloomberg.com, January 31, 2011
3. “Number of the Week: Americans Dipping Into Savings”, Mark Whitehouse, The Wall Street Journal, January 22, 2011

This is an inspiring story of how people are using the Bank On Yourself method to be in a position to take advantage of some amazing opportunities…

Here’s a new reality: You need cash now more than ever. Not credit. Not equity. Cash.”

- “Why Cash is King,” Men’s Health, November, 2010 issue

"Bank On Yourselfers" Joni and Dave Schultz

Take Joni and Dave Schultz, who just happen to be my sister- and brother-in-law.  Joni is a hospital department supervisor and Dave just retired from his job in construction.

They came to visit us recently, and Joni’s first comment when she walked in the door was, “Now I get it!  I understand why Bank On Yourself is so much better than using a credit card or finance company, and why it’s even better than paying cash for stuff!”

Joni and Dave started a Bank On Yourself policy about five years ago, in order to supplement their retirement income and add predictability to their financial plan.

But they’d never used it to finance any purchases… until now.

Opportunity knocks…

Joni figured it would be a smart move to convert their home’s electric system to a solar-powered system.  It would save them thousands of dollars every year on their electric bills, which would come in handy, now that Joni is hoping to retire in five years and Dave’s already retired.

Plus, they wanted to make a contribution to a greener planet.

But converting to solar can be an expensive proposition.  Fortunately, Joni discovered that their electric company was offering a 50% credit to anyone putting in a qualifying solar system… but only for a limited time.  So she borrowed $23,500 from her Bank On Yourself policy in order to pay for the system, in full.

A portion of the money went towards something that had long been on their wish list – landscaping and paving their patio and installing an outdoor grill.  (“You know, food really does taste better when cooked on a high-quality grill,” Joni says.)

But Joni and Dave will also qualify for very generous federal and state tax credits for the solar system when they file their tax return, bringing their out-of-pocket cost for it to close to ZERO!

Their electric bill will fall from hundreds of dollars a month, to just under $15 a month, saving them thousands of dollars every single year, for as long as they live in the house!

Joni borrowed the money from her policy without an application, without the approval of a loan committee, and she can’t be turned down for a loan!

She set her own loan payback schedule, and when she finishes paying it off, she’ll have the solar system, a great patio to relax on and entertain, AND all the money she paid for it will be back in her policy, where it will then help fund her retirement.

Want to find out how much guaranteed income you could take in retirement – regardless of what happens in the stock and real estate markets?  Request a free Analysis and find out.

Additional benefits of using the Bank On Yourself method to finance purchases include…

You do pay interest on policy loans, however, that interest ultimately ends up in your policy, as I explain in detail on pages 100-102 of my best-selling book, Bank On Yourself: The Life-Changing Secret to Growing and Protecting Your Financial Future

Some companies – like the one Joni’s policy is from – offer a feature that lets you continue earning the exact same guaranteed annual increase, plus any dividends, on the money you borrowed! Which means you can use your money and it keeps growing for you just the same!

If you used a savings or money market account or CD to save up enough to pay cash for a big purchase, you earn ZERO interest on the money you take out to buy something, of course.  Not to mention that the interest rates on these accounts are ridiculously low. The growth in a Bank On Yourself policy beats these other accounts by a mile

If you ever need to reduce the amount you pay back, or even skip it for a few months if you run into a tight spot, you can do that, and no bill collectors will call, you won’t pay any late fees or get a black mark on your credit report

You have the advantage of having a “rainy-day/opportunity fund” that doubles as your retirement fund – growing consistently and predictably every single year – even when stocks, real estate, and other investments tumble!

Unlike Joni’s 401(k) plan, which she had contributed to for decades with little to show for it other than sleepless nights, you can know the minimum guaranteed income you can take in retirement from a Bank On Yourself policy.  And you can access the money with little or no tax consequences, under current tax law

For these reasons – and many more – financing things through a Bank On Yourself-type policy beats traditional financing, leasing, or even directly paying cash for things!

Opportunities come in all shapes and sizes…

For example…

• The Bowsher Family used Bank On Yourself to help raise $100,000 for their church.  This is a very creative way to raise funds for your church, temple or favorite charity that almost anyone can use

Watch the video to learn how

• Greg and Christy Gammon used their Bank On Yourself policies to get the funds to be able to adopt a baby girl when that opportunity came up unexpectedly.  They’ve also used it to finance some real estate investments

Watch the video of the Gammon’s inspiring story here

The ways you can use Bank On Yourself are limited only by your imagination!

But to be in a position to take advantage of these opportunities, you need to get your Bank On Yourself plan in place now, if you haven’t already.

Being a good financial citizen requires that you first build that great wall of cash.” ¹

And we challenge you to find a better place to “store” that cash than in a Bank On Yourself policy.

A wall of cash protects us from everything.” ¹

If you want a better financial life, “small steps, taken consistently over times, are truly the road to success,” according to financial behavior researcher, Sara Wedeman, Ph.D.¹

So, if you haven’t already added Bank On Yourself to your financial plan, why not take the first step now, and request a free analysis that will show you how a program tailored to your unique situation can help you reach both your long-term and short-term goals as quickly as possible?

Don’t know where you’ll find the money to fund your plan?  A Bank On Yourself Authorized Advisor can show you at least eight places to free up funds –  and sometimes that can happen with no additional out-of-pocket cost to you.

Not sure how a Bank On Yourself policy is different from the ones the financial gurus talk about? Learn the difference and see the proof here.

1. “Why Cash Is King,” Mike Zimmerman, Men’s Health, November 2010

The Dow has dropped below 10,000 several times recently – a level it first reached more than eleven years ago and has since bounced over and back an astonishing 63 times!

Millions of people who were counting on their homes to help fund their retirement now have no equity to count on, because they owe more than their homes are worth.

Credit is still extremely tight for both businesses and consumers, underscoring just how little control we have when we have to rely on other people’s money.

As we face continuing economic challenges, many people are wondering… what does the future hold?

Ever hear the old saying, “Change is the only constant?”  Today that is clearly true more than ever!  Stephen Covey, author of the run-away best seller, Seven Habits of Highly Effective People, tells the following story:

A night watchman on a huge battleship alerted the captain that their ship was headed directly towards a light in the distance.  The captain immediately sent the message, “Change your course 10 degrees south.”  A few minutes later came the reply, “Change your course 10 degrees north.”

Perturbed, the captain signaled back, “I am the captain.  Change your course 10 degrees south!”  Five minutes later came the reply, “I am a seaman first class.  Change your course north.”

Fuming, the captain sent one final message, “I demand you change your course.  I’M ON A BATTLESHIP!”

I strongly recommend you change your course,” came the response.  “I am a lighthouse.”

The moral of the story is pretty clear, isn’t it?  The new economic realities are the lighthouse, and it’s insane for us to demand that everything in our way move over so that we can keep cruising straight ahead in our comfort zone.

If you were the captain of the battleship, what would you do?  Hold your course… or change your course?

Well, each of us is the captain of our lives.  We have a choice of changing our course and surviving… even flourishing, for that matter.  Or staying our course and plunging head first into disaster.

So my question to you is, are you staying the course, hoping and praying that somehow things will magically work out?  Or, are you becoming the captain of your ship and taking back control of your financial future?

Wall Street wants you to believe that if you just keep hanging in there long enough (paying them fees and fattening their wallets), you’ll be okay.

And they have the audacity to call this a financial or retirement “plan”!

I can promise you they won’t remind you that over the last 80 years, the Dow was in a stall that lasted from 12-25 years 65% of the time!

They are praying you don’t find out about the stock market study¹ that revealed…

During the 20th century, there was a 77-year span with no price appreciation in U.S. stocks, after adjusting for inflation

Out of the past 207 years, stocks have spent 173 years – more than 80% of the time! – either faltering from old highs or clawing back to recover past losses

The study’s author, Robert Arnott, concluded:

As investors become increasingly aware that conventional wisdom of modern investing is largely myth and urban legend, there will be growing demand for new ideas and more choices”

Yet, the “experts” and talking heads have no better solutions to offer, do they?

It’s all the “same old, same old,” and maybe they’ll throw in some new twist.

Pfui!

You’ve probably heard that old chestnut, “Fool me once, shame on you.  Fool me twice, shame on me.”

How many times have you already been fooled, only to keep coming back for more?

The ultimate financial security blanket in both good times and bad…

While the “experts” lament that there’s been “no place to hide,” none of the hundreds of thousands of people who use Bank On Yourself lost a penny in their plans when the markets crashed.  Their plans have never skipped a beat and continue growing every year by a guaranteed and predictable amount.

However, no two policies or plans are alike – each is tailored to the client’s unique situation.  To find out how much your financial picture could improve if you added Bank On Yourself to your financial plan, how much income you could take in retirement (guaranteed) and to get a referral to a Bank On Yourself Authorized Advisor (a life insurance agent with advanced training in this method), request a free, no-obligation Analysis.

When tough financial challenges and family emergencies arise, those who use the Bank On Yourself method have been able to gain access to capital to see them through by answering just one question:

How much do you want?

But please understand – Bank On Yourself isn’t a magic pill – there aren’t any.  It does take a little patience and discipline.  but for those who have those traits, it pays a lifetime of benefits, including:

The Bank On Yourself concept is based on an asset class that has increased in value during every stock market decline and every period of economic boom and bust for more than a century.  That asset is dividend-paying whole life insurance

Your money in one of these policies grows by a guaranteed and preset amount every year.  In addition, the growth is exponential, meaning it gets better (more efficient) every single year you have the policy – with no luck, skill or guesswork needed to make that happen

A properly structured Bank On Yourself-type policy incorporates little-known riders which turbo-charge the growth of your equity (“cash value”) in the policy, especially during the early years of the policy. This enables you to use your policy as a powerful financial management tool from Day One

Once credited to your policy, both your guaranteed annual cash value increase, plus any dividends you may receive, are locked in.  They don’t vanish due to a market correction

Can you imagine how much brighter your financial picture would be if you still had every penny of principal you put in AND all the growth you’d received?

You control the money in your policy, not the government.  You can use it when and how you choose, without the restrictions or penalties common to 401(k)’s and other government-sponsored retirement plans

You have peace of mind for retirement planning, because you could know the minimum guaranteed income you can take in retirement, and for how long you could take it

You can take an income from the policy with little or no tax consequences, under current tax law.  If you believe tax rates are going to go up over the long term, keep in mind that when you defer your taxes in a 401(k) or other government-sponsored plan, you’ll only pay higher taxes on a bigger number!

When you pass on, you have the peace of mind of knowing your loved ones could receive a death benefit many times greater than the value of your plan

I haven’t even listed all the advantages and guarantees of Bank On Yourself here.  But this gives you an idea why Bank On Yourself can give you the peace of mind and solid financial foundation that are missing from most people’s financial plan.

And I’d like to point out that no one has stepped up to the plate and offered a different financial product or strategy that can match or beat the advantages and guarantees of a properly structured Bank On Yourself policy.

My offer to pay a $100,000 cash reward to the first person who can do that still stands.

There’s no cost or obligation to receive an Analysis that will show you how a program custom tailored to your unique situation could improve your financial picture and help you turn your back on the stomach-churning twists and turns of traditional investments.

If you haven’t already started to Bank On Yourself, please take the first step today and take back control of your financial future!

1. “Bonds – Why Bother?” by Robert Arnott, Journal of Indexes (May/June 2009 issue)

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:

Over 90% of their portfolio is invested in investment-grade fixed-income assets

Less than 1% is invested in U.S. Treasury or other government debt

Their bond portfolios are well diversified across many industries and companies, with no investment representing more than 1% of assets

Due to their financial strength and reserves, they have the ability to hold on to any assets that may decline in value for many years until they recover

They had virtually no exposure to the risky investments that caused the market meltdown of 2008

They have NEVER missed paying an annual dividend to policyowners for more than 100 years, including during the Great Depression!

Both your principal and gains are locked in – they don’t vanish due to a market correction

You can know the minimum guaranteed value of your policy in any year and also the minimum guaranteed income you can take from your policy

To find out what your bottom-line numbers and results could be with Bank On Yourself, request a free Analysis here

For these reasons – and many more – we know of no better or safer place to store your money!

The bottom line is that you have to park your money somewhere.

That could be in stocks, mutual funds, bonds, CD’s, money markets, real estate, currency, commodities… or under your mattress.

How many people have lost money in these financial vehicles, including you?

Many families’ nest-eggs have been lost in every one of these conventional investing and saving methods, dashing their hopes and dreams for a secure financial future.

As most people are aware, even putting your money into “insured” saving accounts and CD’s isn’t a sure thing; the FDIC’s insurance fund was almost $21 billion dollars in the red at the end of 2009 and the number of banks at risk of collapsing is growing daily!

Putting your money in your mattress also has its risks – it can be stolen or catch on fire.  And inflation will surely make it worth less every year.

And now, we can’t even be confident that U.S. treasury bonds are a safe place to put our money.

But we challenge you to find any credible proof that anyone has lost money in a life insurance policy in the last 100 years!

For the record, the $100,000 cash reward I’ve offered to the first person to show they use a different product or strategy that can match or beat the advantages and guarantees of a properly structured dividend-paying whole life policy still remains unclaimed.

Go ahead and take the $100,000 Challenge! Because if there is a better strategy than Bank On Yourself, I want to know about it, so I can use it for my family and share it with others.

One more thing.  I know some people are going to ask which companies the Bank On Yourself Authorized Advisors recommend, as discussed above.

Please understand I’m not going to list them.  First, because I’m not in the business of referring any specific company.  And also because it’s not enough to know which companies are the strongest and have the best product for the Bank On Yourself concept.

You also need the help and coaching of a financial advisor who has advanced training in this method and knows how to structure the policy properly and how to use it to maximize your lifetime wealth.

It takes even an experienced advisor at least a year of full-time training and experience to become proficient at this.

Experience has shown that without the guidance of a knowledgeable advisor, there’s an excellent chance your policy will be structured wrong. As a result, it won’t grow nearly as fast, you could lose the tax advantages, or both.

That’s what led to the creation of the Authorized Advisor training program, and only around 200 advisors across the country have passed the rigorous requirements.

You can get a referral to one of these specialists when you request a free, no-obligation Analysis that will show you how much your financial picture could improve if you added Bank On Yourself to your financial plan.

If you haven’t already started to Bank On Yourself, please take the first step today and take back control of your financial future!

And please tell us what’s on your mind below!

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?

This is one of my favorite questions! Why? Because it’s so darn easy to PROVE that this type of dividend-paying whole life policy is a totally different “animal,” and that most financial advisors and “gurus” don’t even know the first thing about it!

Don’t take my word for it! You can see proof of how a Bank On Yourself policy is different here.

FAQ #4: How much does it cost to start a Bank On Yourself policy? Is there a minimum amount I have to start with? Is there a maximum amount I can put in?

There is no cost for a Bank On Yourself Analysis that will show you all the bottom-line results you could get with Bank On Yourself.

Should you then choose to start a Bank On Yourself policy, the Bank On Yourself Authorized Advisors do not charge fees to design and implement your plan. They receive a commission from the insurance company, which has already been taken into account in the bottom-line numbers you’ll see.

Much like buying a TV or a couch, the costs of manufacturing and sales are already included in the price, or in the premium, in the case of a Bank On Yourself policy.

These Advisors also take a 50-70% pay cut when they design your policy this way. You can learn more about the specialized training the Bank On Yourself Authorized Advisors receive, and why they take such a big pay cut.

However, Bank On Yourself is not a one-size-fits-all plan. There’s no pre-set amount a person would put into a plan, because the policy would be customized to YOUR unique situation, goals and dreams.

If you’d like to see how a custom-tailored program could improve your financial picture, it’s easy to find out when you take advantage of a free, no-obligation Bank On Yourself Analysis here.

You can start at whatever level is comfortable for you. The upper limit is determined by your income and assets.

FAQ #5: I don’t have a single dime left over at the end of the month. Where do I find the funds to start a Bank On Yourself plan?

Bank On Yourself Authorized Advisors are masters at helping people restructure their finances to free up seed money to fund a plan designed to help you reach as many of your short-term and long-term goals as possible – and as quickly as possible. Sometimes this can be done without impacting your lifestyle at all. Here are eight of the most common ways to find the money to Bank On Yourself.

FAQ #6: How do I know if Bank On Yourself will work for me? And how do I get started?

Bank On Yourself is not 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 (free and without obligation), just click this button:

You can also learn more about the step-by-step process involved once you’ve requested your free Analysis.

If you take the first step now, you could start to Bank On Yourself in as little as 60 days!

I hope this helps! If you still have a question or concern that hasn’t been answered, let us know below.

1913 Form 1040 Tax Return

I recently came across a copy of the very first IRS Income Tax Form 1040 our forefathers were required to file and wanted to share it with you.

But BEFORE I show you the rest of it, take a guess at the answers to these four questions:

1. What percentage of taxable income do you think the average family paid back then?
2. What was the top percentage paid by the very wealthiest Americans?
3. How many pages long do you think that first tax return was?
4. How many pages were the instructions needed to complete the form?

The answers to these questions may shock you!

Did you take your best guess at the answers?

Good! Now take a look at how close you came to the correct answers here.

What direction do you think taxes will go long-term?

Most people I’ve talked to say that’s a no-brainer- they’re going to go up.

Many people love the ability to tax-defer income that comes with IRA’s and 401(k)s. But they forget that if you’re successful building your savings in one of those plans, you’re probably just going to end up paying higher taxes on a bigger number!

One of the many advantages of Bank on Yourself is that the income you take from the policy is taxed like a Roth IRA. You fund the plan with after-tax dollars and can then take retirement income from the plan with potentially no taxes due, if you follow certain rules.

That’s according to current tax law, which, of course, could change (just like they could change the tax laws on IRA’s and 401K’s, etc).

But the beauty of Bank on Yourself is that even if the tax laws changed, you would still get 17 other major advantages and guarantees!

And that’s why I have a standing offer to pay $100,000 to the first person who can show they use any other financial product or strategy that can be match or beat Bank on Yourself.

If you’re skeptical, I encourage you to take the $100,000 Challenge. You could pick up an easy $100K if you can beat Bank of Yourself.