Wall Street Journal Exposes Stock Market Myths!
July 27, 2010 by Pamela Yellen · 1 Comment
A very revealing article appeared in this past Sunday’s Wall Street Journal entitled, “Ten Stock-Market Myths that Just Won’t Die.”
Maybe you don’t quite believe what I’ve been saying for years. This article confirms exactly what I’ve been trying to tell you…
This article is must-reading for anyone who’s been scratching their head and wondering…
If what they say about the long-term returns you should be able to get in the stock market is true, how come I’m not rich?!?”
Please pay particular attention to…
Myth #1: “This is a good time to invest in the stock market”
Myth #2: “Stocks on average make about 10% a year”
And the article author’s insight into Myth #10: “Stocks outperform over the long term” is priceless.
I’ve quoted many sources confirming what this Wall Street Journal article says. How many more sources do you need to hear it from, before you request a free Analysis that will show you how much your financial picture could improve if you added Bank On Yourself to your financial plan?
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…
Does money buy happiness?
April 28, 2010 by Pamela Yellen · 3 Comments
There is probably nothing in the world that people spend more time discussing than money.
Countries go to war because of money. People marry and divorce because of money. And we spend the biggest part of our waking hours working to earn it.
The age-old question, of course, is, does money buy happiness?
While writing a fascinating book, John Stossel, the highly regarded former anchor of the investigative TV show, 20/20, did some research into the answer to this question.
Dow 11,000: Déjà vu all over again?
April 12, 2010 by Pamela Yellen · 13 Comments
Bill Clinton was President, the world awaited the potentially disastrous consequences of the Y2K computer bug, and – oh, yeah – the Dow closed above 11,000 for the first time in history.
The date was May 3rd, 1999, and to quote Yogi Berra, nearly eleven years later,
The Wall Street spin-makers are pointing out what a “big accomplishment it is for a measure that was below 7,000 only a year ago” to recapture the 11,000 level.
Before we pop the cork on a bottle of champagne, here’s a few sobering questions to ask yourself…
What’s the rate of return on a Bank On Yourself plan?
March 18, 2010 by Pamela Yellen · 55 Comments
A recent comment made by a reader of this blog inspired this post. I’ve never gone into detail on the question of how the rate of return on a Bank On Yourself policy compares with investing in stock market and mutual funds.
And is it really true that if you simply hold on long enough, investing in stocks and mutual funds will out-perform just about anything else?
So, I’ve decided to lay those questions to rest – once and for all – right here. Here’s the comment by a reader who calls himself “Tob” that sparked this post:
This is a ridiculous attempt to compare whole life insurance to the “stock market” after the worst decade. I can show you how investing blows the pants off whole life using investing basics. Balanced Funds. How many funds do you want that have produce 10% per year compounding average to convince you?”
So, has “Tob” really found that elusive investment that gives you a 10% average return, and still lets you sleep at night?
We’ll get to the answer to that question in a moment.
First, let me address the question,
“What the heck is the rate of return on a typical Bank On Yourself policy?”
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 · 3 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.
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?
7 Really Scary Facts about Your 401(k)
October 29, 2009 by Pamela Yellen · 12 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.
Pamela Yellen interviewed on Sky Radio
October 22, 2009 by admin · Leave a Comment
Sky Radio recently did a 3-minute interview with Pamela Yellen on Bank On Yourself, and why it’s a more dependable, worry-free approach to saving for the future than conventional methods.
The interview will play on all audio-equipped flights on Virgin America and US Airways early next year, but you can listen to a sneak preview of it here.
Pamela Yellen and Bank On Yourself will also be featured in January in a video series on “The Innovators” that will be broadcast in prime time on the CNN Airport Network in 44 of the busiest U.S. airports.
We’ll post a preview of that video here as soon as it’s ready.
Enjoy! And please tell us what you think…
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