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…

But he still got blindsided several times by the totally unpredictable ups and downs of the stock market.

Derek Logan with his newborn granddaughter

As a corporate accountant for more than 30 years, Derek realized he had set – and achieved – all of the goals he set for himself… except for the goal of being able to retire at a specific age with a specific amount of money.

Disheartened and frustrated because he was closing in on his hoped-for retirement age, but his retirement account had been decimated several times, he began to do a lot of soul searching.  He was willing to be open to other alternatives.

Fortunately, my best-selling book landed on his kitchen table as a Father’s Day gift… and the rest, as they say, is history.

Derek started a Bank On Yourself-type policy just a little over two years ago and couldn’t be more thrilled, now that he’s stopped feeding the insatiable Wall Street Casino with his hard-earned dollars.

When the market recently experienced historic levels of volatility, Derek sent me this grateful note…

As the market went down, I smiled.  Not at the anguish so many must have been feeling, but at the joy of knowing I wasn’t being affected – this time, or ever again.  I printed Thursday’s headlines (512 point plunge on the Dow) and included them in my Bank On Yourself portfolio notebook that will serve as a reminder of the best financial decision I’ve ever made, two years ago this month!”

Derek is an enthusiastic champion of the Bank On Yourself method, having shared it with over 50 friends, relatives and colleagues.  So he was thrilled when I asked him if he would share his fascinating story with you.  Whether you already use Bank On Yourself, or you’ve been considering adding it to your financial plan, I know you’ll get immense value from this fast-paced interview.  And you’ll probably identify with Derek’s frustration.

You can listen to the interview by pressing the play button below, or you can download the entire interview as an MP3 and listen on your own player or iPod…

You can also download a transcript of the interview here.

In the fast-paced and fascinating interview, you’ll discover…

• The five lies Derek realized we’ve been fed about investing (this will blow you away)
• The myth of investing in the market “for the long haul”… and why Derek now demands his savings and investing strategies give him guarantees and assurances both now and for the long term
• How Derek has already used his policy to become his own source of financing three times in the first two years of starting his plan – once again confirming how these policies are different from the ones Suze Orman, Dave Ramsey and others talk about
• Where Derek found the money to fund his plan
• Why “buy term insurance and invest the difference” is really “buy term and spend the difference”
• Why requesting a free Analysis and getting a referral to a Bank On Yourself Authorized Advisor was one of the best moves Derek ever made

You can listen to the interview by pressing the play button below, or you can download the entire interview as an MP3 and listen on your own player or iPod…

Download the transcript here

Check out these other Bank On Yourself success stories that may also be of interest to you:

• Bank On Yourself under the microscope (a Vice President of technology engineering for a major health care company shares his findings of hundreds of hours he’s spent analyzing Bank On Yourself)
• What side of the debt line are you on? (how Bank On Yourself can help people who’ve accumulated debt – as long as they are ready to change their habits)

We want your feedback!

Tell us what YOU think of Derek’s interview in the comments box below…

Spilling the beans on the myth that financial advisors only sell whole life policies because they receive large commissions

One of the most commonly parroted myths is that financial advisors only sell whole life policies because they receive large commissions for doing so.

As I’ve often explained, when a Bank On Yourself Authorized Advisor helps design and implement a Bank On Yourself-type policy for a client, their commission is slashed by 50-70%.  (And, yes, that’s one reason most financial advisors won’t tell you about this, or will try to steer you to another more profitable product.)

But if you’ve been wondering exactly how much commission a Bank On Yourself Authorized Advisor makes on one of these policies, you needn’t wait any longer!

I just recorded a short Podcast spilling the beans on this.

You can learn the surprising truth by clicking on the play arrow below, or you can download the recording as an mp3 and listen to it on your own player or iPod now at:

Often, the accusation that agents and advisors only sell these policies for the high commissions comes from investment advisors and money managers who want you to invest in the stock market, instead.

When you listen to this Podcast, you’re going to be shocked to discover that the advisor who manages your money in the stock market is making at least ten times more than the Bank On Yourself advisor, if the same amount of money is contributed each year!

Maybe that’s the kind of thing Mark Twain had in mind when he said…

A lie can circle the globe in the time it takes truth to put on its shoes”

In this Podcast, I also touch on:

• Why the cash value in a Bank On Yourself-designed policy grows up to 40 times faster than the policies Suze Orman, Dave Ramsey and others talk about
• Why the death benefit in these policies keeps growing and the company does NOT “confiscate” your savings when you die (blasting yet another oft-repeated myth about this)

So check it out right now by downloading the recording or listening to it here:

Have you had enough of the roller-coaster stock market?

Today a lot of people were breathing a sigh of relief that the year-to-date loss in the Dow was just erased.

But the unpleasant reality is that the S&P 500 is STILL almost 11% BELOW where it was 12 years ago today.  And inflation during those 12 years has taken another 34.5% bite out of your nest-egg!

The housing market continues to worsen, consumer confidence dropped to a two-year low this week, and the Fed is now threatening to do more of the same thing that got us into this mess in the first place.

All of which means stocks are now as vulnerable as toy balloons in a room full of razor blades!

Meanwhile, hundreds of thousands of Americans are bypassing banks and Wall Street altogether, and growing their nest eggs by a guaranteed and predictable amount every single year using the Bank On Yourself method.

They haven’t lost a penny during the last 12 years.  In fact, they’ve never had a losing year for the past 160 years!

Nobody is going to twist your arm, and you won’t even be asked to buy anything at your first meeting with your Authorized Advisor.

But at least you’ll know whether Bank On Yourself makes sense for you and your family. So please request your free Analysis today.

What kind of driver is Pamela?

In this interview, you’ll learn…

• Pamela’s early investing mistakes
• How she first learned about the Bank On Yourself method of wealth building
• How Walt Disney, J.C. Penney and other influential people have used this method
• Why Banks use this to meet their Tier One (safe and liquid) Capital reserves requirement
• Why Bank On Yourself Advisors earn much lower commissions than other forms of life insurance sales
• Why this concept is not included on insurance licensing exams
  

  Pamela & her husband Larry

• Bank On Yourself “Inc.” doesn’t sell insurance or charge consumers anything…so how does it make money?
• Introducing the Bank On Yourself Nation…soon to be the center of the universe when it comes to financial literacy education and learning to be self-reliant

So checkout this fast-paced interview now by pressing the play button below, or you can download the interview as an Mp3 and listen on your own player or iPod…

And if you still have any unanswered questions about Bank On Yourself or Pamela Yellen, please tell us in the comments box below…

After much deliberation, five members of the Bank On Yourself team each picked their favorite entry – each of these winners will receive their choice of a $25 dining gift certificate or a personally autographed copy of my best-selling book, Bank On Yourself, for themselves or to give as a gift to someone they care about.

And together, the team picked their favorite entry and that person won a $100 American Express Gift Certificate.  (All winners will soon be receiving an email letting them know how to claim their prizes.)

Read on to be inspired by the winning entries…

Karen, who designs all of our blog posts, chose Sidney Bostian’s entry as her favorite, because, “it strikes a personal chord for me and it’s short, sweet and inspirational”:

I save for three reasons: 1) To build financial resources to make myself and my family to be independent with respect to future life choices, 2) To empower myself and my family members to work for the ‘joy of working’, not just to pay bills, and 3) To create resources for charitable activities which would be equal to my charitable impulses.”

Lynn, who heads up the Bank On Yourself Customer Service team, found it “really tough” to pick her favorite, “because there were so many good, genuine expressions in the entries.” But she chose Tom Barry’s comment, “because it sounds like he has such a good heart and is on a mission to help as many people as he can”…

I have children – 2 girls and 2 boys.  They are my life – my inspiration! I also have a deep desire to help children, whether they be sick or homeless or in unhealthy and unloving families, and I have a strong desire to help parents that have been affected by the economy that has caused them to be unable to care for their loved ones. It’s a tall order, and there are many of those that I speak of in this situation, so I pray that the Lord blesses me with the ability to help these people… not just my own but all of God’s children, young and old. Finding a way to grow assets to the extent that I could help as many as possible would make me feel that I have fulfilled God’s purpose for me in this life.”

Brian’s entry was Drew’s favorite (Drew is part of our public relations team).  Brian’s philosophy to be lenders, not borrowers, inspired Drew:

I am determined to provide a solid financial future for my wife and kids. Currently my wife is a stay at home mom and I need to make sure that we show a positive example to other young families. Our family motto is ‘we shall be lenders and not borrowers’ and Bank On Yourself lends itself directly to this motto.”

My exceptionally talented publicist, Michelle, chose Dory’s entry because, “it captures what I feel about savings and it follows the ‘KISS’ theory (Keep It Simple, Stupid), which is what Bank On Yourself is all about.”

What inspires me to save is personal FREEDOM. To have or do what I want, when I want, with whom I want.”

Shannon, who heads up our Social Media team, chose Ryan Dunn’s entry because “it’s the classic ‘would’ve, should’ve, could’ve’ story of opportunities lost – but it’s touching and we’ve all been there”…

“Ever since I was a little boy, my grandpa – who was product of the Great Depression – told me that I should give. ‘Ryan,’ he would tell me, ‘to be successful you need to give 10% to the Lord and 10% to yourself. If you do that all your life, you will be safe and successful in all that you do.’ I have thought a lot about his advice, especially as I have grown older. It made sense to be ready for ‘rainy days’ – and even in my limited experience, those I have weathered in comfortable form, largely because of my ‘banks’.

One day, I met a single gal at the other end of life’s experience from me and my then 22-year-old self. She told me I was wise for working hard and to get myself established while I was young.  She also shared with me a story that ever echoes in my ears, because it ‘dangles’ one of those proverbial ‘carrots’ as to why I set my dollar’s dime aside. She told me how one day when she was young, like me, a salesman had come knocking door to door – much like I had that day.  He was selling stock ownership in a local company and wanted to know if she wanted to participate by giving him $5,000. Well in the 30’s & 40′s, that was a considerable amount of money – and something she did not have available to tender, so she had to pass on the opportunity.  She said, ‘That company was Portland Gas and Electric, and had I given him the $5,000, I would never have wanted for money again.’ But, she hadn’t saved the $5,000, so it wasn’t even an option to begin with.

Savings aren’t just for tight times like grandpa passed through in the depression – they aren’t just for some future retirement plan. They are also for opportunities and possibilities – but those possibilities are only available if there are savings to tender when opportunities ‘knock.’  Come rain or shine, I know that one or the other (or both) will meet me at the front door each day, and I am ready to take advantage of whatever the situation because I give that 10% (and oft times more) to myself that grandpa taught me I ought to, so that I might be safe and successful.”

David – promise us you’ll send us pictures from your wedding in a year… and enjoy your $100 American Express Gift Certificate!

And here’s a runner-up entry…

I really like Craig Yenni’s entry, because it has some important messages, so I’m also giving Craig his choice of an autographed book or $25 dining gift certificate from his very thoughtful post:

“Over the course of the last few years, I have reprogrammed my financial mind. The old programming told me to work hard, fund my traditional investments (401k, stocks, and mutual funds) and buy some term insurance. If I could stomach the ups and downs of the market, I would one day be set and have financial security in my retirement years.

This approach was indeed building wealth in a fantastic way!  Unfortunately, I wasn’t building wealth for my family, but for the stock brokers, mutual fund managers and the tax man. Sadly, they didn’t even send me a birthday card on my birthday.

I realized after seeing failure after failure with this approach, there must be a better way. I started researching, digging, and talking to various people to find this better way. A few years ago, I came across the Bank On Yourself approach and found it to be the most compelling way to achieve what I was after. During all of this research, the reprogramming was well underway.

As part of the reprogramming of my financial mind, I started to separate the concepts of savings and investment. It seems to me, most people are turned up side down with investing before saving. If you don’t have savings, I don’t believe you should be investing. Savings first, then investing is my approach. It is critical that my savings remain predictable and safe. The investments on the other hand are more risky and if it is lost, my plan still works in the end. Savings are the foundation of my financial health and if my investments do well, then it’s icing on the top.

Savings to me is the concept of building capital that I can use to fund college, generate a passive income, borrow for major purchases, and then easily pass on wealth to my family. I not only wish to pass on money to my family but true wealth consisting of the peace and security that comes with saving in a Bank On Yourself policy.

I’ve played the Cashflow game (Robert Kiyosaki – author of Rich Dad, Poor Dad) with my children. The way to win the game is to have a passive income that exceeds your liabilities. Although this is just a game, I am playing it in real life and Bank On Yourself is a huge part of how I will win. By funding my two Bank On Yourself policies, I’m building capital. That capital will one day generate a passive income for me to use when I determine the time is right. Along the way, I can use that capital to fund the major purchases of life. As I’m using the capital, it keeps working in my account unlike taking it out of a traditional bank account or mutual fund.

My new financial mind is programmed to work hard to generate an income, save, share and then invest.”

After reading the winning entries, I’m sure you can see why it was so hard to pick the winners from so many deserving entries.

We encourage you to read them all for inspiration!  And thank you to every one who shared their personal story!

Dr. Bryan Kuns

A family and occupational medicine practitioner for 25 years, the doctor realized that, at age 50, he and his wife might only have one more chance to get it right.  “I need some more guarantees than taking a chance and gambling again with my retirement,” Bryan realized.

A little over one year ago, he heard about Bank On Yourself.  Intrigued, he began reading everything he could get his hands on about the concept.  Then he requested a referral to a Bank On Yourself Authorized Advisor and a Free Analysis.

It’s an answered prayer.  I’m sleeping a lot better at night, now.  The guarantees that this program has are what I was looking for.” –Dr. Bryan Kuns

Bryan offered to share his story with you.  Whether you already use Bank On Yourself, or you’ve been considering adding it to your financial plan, you’ll learn something of value from this interview.  You can listen to the interview by pressing the play button below, or you can download the entire interview as an Mp3 and listen on your own player or iPod…

You can also download a transcript of the interview here.

In this interview, you’ll discover…

• Why Bryan felt that that the financial advisors he’d been working with were more concerned with their retirement plan than his

• What Bryan learned about good debt versus bad debt… and why paying cash for things isn’t the best answer
• How Bryan is using his policies to become his own source of financing for his personal needs, as well as for his practice – and why he won’t miss filling out those nosy, lengthy loan applications
• How Bryan is using his policies to become his own source of financing for his personal needs, as well as for his practice – and why he won’t miss filling out those nosy, lengthy loan applications
• Why the guaranteed and exponential growth of the death benefit gives you peace of mind knowing your loved ones will be taken care of if you pass away before fully funding your policy
• The value of leaving a legacy for your family that ensures financial security for generations to come
• Why the asset protection provided by life insurance was an added incentive for Bryan
• How Bryan introduced this concept to his daughter… and why he feels it’s important to teach children how to fish for a lifetime
• The difference between a financial plan based on hope and one based on guarantees

You can listen to the interview by pressing the play button below, or you can download the entire interview as an MP3 and listen on your own player or iPod…

You can also download a transcript of the interview here.

If you haven’t started to Bank On Yourself yet, it’s free and there’s no-obligation to request an Analysis and find out what your bottom line numbers and results could be if you added Bank On Yourself to your financial plan.

When you request your Analysis, you’ll also get a referral to one of only 200 financial advisors in the country who have taken the rigorous training and meet the requirements to be a Bank On Yourself Authorized Advisor, like the one Bryan is working with.

I only have one chance at having a really, really good retirement, and because of this whole concept and program, I am now very excited about retirement and the future and my children’s lives and future.” – Dr. Bryan Kuns

Request your free Analysis now, so you can have the peace of mind that comes with knowing your financial future will be one you can predict and count on!

Since AAII said they would not publish my response or correction of the misinformation contained in their review, I told them I would publish it here and let YOU be the judge of whether AAII was twisting and omitting things… or being fair and unbiased.

The response was swift, surprising and universal.  There were so many insightful comments made that I couldn’t pick only three to award prizes to, as was my original plan.

So I picked ten (the winners are listed at the end of this post – check to see if your comment was one that was chosen).  And I’ve excerpted from a number of the comments here, so I can share some of the highlights with you.

Jeffrey summarized the thinking of many commenters about AAII this way:

AAII naturally committed the typical strategic blunders essential to the charade proposed by the investment industry (Wall Street) and financial professionals (a.k.a. traders, gamblers, speculators, etc.). Any attempt to allow people an opportunity to truly grow wealth, reduce risk, and prepare for a more stable environment challenges the status quo of buy and lose (commonly referred to as buy and hold) and then industry pundits (AAII) start the negative attacks in order to establish fear of finances and preserve their base of profits. AAII omitted important aspects of your plan, distorted facts of your plan to promote obfuscation, and blatantly twisted all aspects of your plan in order to destroy your credibility.

Thank you for presenting people with an opportunity to actually prepare, plan, and realize a better financial picture.”

Reuben echoed that by saying…

Is anyone really surprised, it’s the fox guarding the chicken house, the blind leading the blind, the king has no clothes.”

And Daniel summed it up in one sentence…

Bank on Wall Street or Bank on yourself…a very simple decision.”

One thing we know for sure about life is that it’s unpredictable – stuff happens

The only actual reason or “excuse” given in the AAII review for why Bank On Yourself is “too good to be true”  had to do with policy loans.  But the ability to take loans from your life insurance policy has proven to be a real boon, and sometimes a life saver, for several commenters…

James wrote about how his wife Verna broke her wrist a few months ago.  Even though they had only been participating in Bank On Yourself for less than a year, they were “able to borrow enough to get us through surgery, the therapy, and all the physicals that were needed to allow my wife to get back to work.”

Deana says her Bank On Yourself policy “saved me a lot of hassle, frustration and money when I needed a loan to replace a transmission on my car, pay off medical bills, purchase a much needed storage shed and buy a used car.” It also helped her after her income from work was reduced.

“Unlike a bank loan, I set up my own payment schedule and set up how much I can afford to pay back every month and when I want to pay it back,” wrote Deana, who notes she did a lot of research into the concept before moving forward.  Now she says, “as with many other people (Bank On Yourself) is the best money investment I have ever made in my life.”

Troy says “Bank On Yourself is a life saver” and “we use our policy to buy every thing from our boats to repairs for our rentals – it’s a great way to borrow money when needed, pay it back, borrow it again, and watch the cash value continue to grow.” He ends by saying, “Keep up the fight, Pam, and thank you for educating all of us.”

Rik just started his Bank On Yourself policy six months ago, but “just took a loan out for $29,000 for a down payment on a new condo.  Compare that with the hassle of taking money out of a 401k.”

Bank On Yourself saves businesses, too

Allen wrote, “I, too, used my policy to expand my business in the last few months when no banks were (and still aren’t) lending money and have had similar results with my return on investment.”

And David Brimhall started a policy in 2004, “after losing 80% of my retirement account.” His money is now doing double duty for him and he has taken 9 loans, investing some of those funds.  As a result, “I have real retirement now,” and investments making money for him.

As I noted in my rebuttal to AAII, you do not have to sell assets to use your equity in a Bank On Yourself policy to invest it elsewhere or to make purchases.  And some companies will even pay you the exact same guaranteed cash value increase and dividend as though you hadn’t borrowed a dime.

This is true for “non-direct recognition” policies, which don’t “recognize” you have taken a loan when crediting dividends.  The policies recommended by the Bank On Yourself Authorized Advisors meet the requirements that maximize the power of the concept.  These advisors also have advanced training in how to structure policies to maximize the growth of your cash value and minimize the taxes.  To get a referral to an Authorized Advisor, simply 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.

And Will posed the question…

How can you tell the difference between a Bank On Yourself user and an ordinary person?  The BOY user can buy a business with the BOY policy loan, and the non-Bank On Yourselfer can work for that business.”

Bank On Yourself lets you have a retirement income you can predict and count on

“Ahhhh – let AAII say what they may… but I know what my retirement will look like… I cannot wait to start another policy.  Keep up the great work, Pam,” wrote David.

“My hard-earned dollars have always lost money with any commodity/stock/bond type investment.  I have never had a gain except with a CD and that barely kept up with inflation,” noted Ang. “My Bank On Yourself policy gives me such security.  I can sleep at night.  It reminds me of  (the movie) ‘It’s a Wonderful Life’ – we are all banking on each other (instead of padding corporate executives’ lifestyles).”

I am thankful I found Bank On Yourself, otherwise, I may never see retirement in my future,” wrote Karen, who is starting her first policy now, at the age of 59. “Yes, I have a financial advisor and am a very disciplined investor in my 403(b) and, yes, I rode out the downturns and have not nearly recovered to this point… If I had known about this even 10 years ago, I might be looking at retirement, instead of working an additional 8-10 years.”

And William bemoaned how he lost 30% in his 401(k) between 1999 and 2001, and then another 40% in 2008 – after he had retired, because “I followed the advice of those who are paid to know and each time ‘rode it out.’ I do not want to go through any more of these ‘cycles.’”

Paul made some excellent points with this comment:

How easily people forget the lessons of history.  Our ancestors survived the Great Depression by using Cash Value Life Insurance and fixed annuities.  They didn’t use the investment vehicles touted by so many.  They relied on… the asset class so often overlooked today when all else is in flux.”

Paul also made a point I hadn’t even thought of when I wrote my AAII rebuttal – that…

Other loans must be repaid with taxable and probatable cash from elsewhere in the estate.  Death doesn’t cancel (other) debt.”

One of my favorite comments was this tongue-in-cheek response from Jim Vana…

WOW! After reading all the glowing posts about the Bank On Yourself system, I’m afraid I may have a different viewpoint. I set up plans for me and my wife and we recently received our first annual reports. But I hate to inform you, it’s no dang different!! Yes the policy loans need to be paid back. Yes interest is paid as well. And just like those typical “FAT CAT” bankers, my B.O.Y. banker is using MY MONEY to buy fancy cars, take exotic vacations and do all the other fun stuff at MY EXPENSE.  And he’s probably socking away tons of MY MONEY for HIS RETIREMENT!!!!!!! Oh wait a minute. THAT’S ME!!!!!!!! Never mind.

As for AAII, GO GET EM, TIGER!!!”

And Steve summed up the beauty and simplicity of Bank On Yourself this way: ”My Bank On Yourself plan consolidates my emergency fund, liquid savings, retirement and life insurance into a single flexible vehicle. This makes it really easy to manage my money!”

AAII gets poor marks from former members

“I joined AAII a few years back because their publicity made it sound simple and profitable.  But when I got their newsletters with investment recommendations, they left me in a fog,” wrote Val.  Park echoed that with, “I subscribed to AAII several years ago, but my eyes always glazed over trying to submerse myself into their data.”

I will confess that I delighted in JC’s comment: “I’m glad you revealed this about AAII – I had a membership application sitting on our table, and was intending to join. Due to the ‘contrarian indicator’ effect of AAII’s member surveys mentioned, and to the closed-mindedness of the organization to even print your response and let its members decide, I have decided AAII is not for me.”

I believe they call that “pay back”!

Steve may have summed it up best with this insight:

The AAII comments sound like they were drawn from the good ole’ boy tank of sour grapes.  I’m excited about Bank On Yourself, which has provided a much needed transition to a vehicle that is safe, predictable and provides not only a solid nest-egg for retirement, but also a funding pool over which I have complete control. I’ve seen nothing else that allows you to have your cake and eat it too.”

Now for the list of prize winners…

As I mentioned, there were so many thoughtful and entertaining comments to my AAII rebuttal blog post that I simply couldn’t narrow it down to just three winners. So, I decided to award 10 commenters their choice of a $25 dining gift certificate or a personally autographed copy of my best-selling book.  Those 10 winners are listed below and if your name is on the list, you should already have received an email asking you which prize you prefer.

And I want to thank everyone who commented from the bottom of my heart for your support.  I will keep fighting the good fight with your help!

We want to hear from you, too!  Just enter your comment in the box below…

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

Dan is a vice president of technology engineering, very analytical, and he has spent hundreds of hours investigating .

His conclusion?  “The more I look into Bank On Yourself, the better it looks,” says Dan.  And he has implemented it for his family in a big way.

Dan shared the findings and conclusions of his research in a fast-paced interview.  I encourage you to check it out now, if you haven’t already done so.

But what if you’re in debt?

Dan told me he was talking to a friend who was complaining that he and his wife were always in debt and confessed, “There are things we want to do – we don’t want to deprive ourselves of life.  We can’t really afford them, but we do them anyway.”

Maybe you can relate to Dan’s friend’s situation.  It’s a seemingly endless cycle of living beyond your means, using high-cost borrowing, which means you have interest to pay – leaving that much less for everything else.

Perhaps surprisingly, it has little to do with how much you make – people of all income levels suffer from this.  After all, as the late British economist, C. Northcote Parkinson noted…

C. Northcott Parkinson

Expenses rise to equal income”

It’s part of “Parkinson’s Law.” He also said that, “a luxury, once enjoyed, becomes a necessity.”  I can definitely relate to that, can’t you?

When Dan described to his friend how Bank On Yourself could be used to become his own source of financing and help free him from the endless cycle of debt, his friend’s first reaction was, “Yeah, it sounds great, but we could never do it – we have to get ourselves out of debt first.”

But as Dan explained more about it, his friend realized he didn’t have to wait.  He could start now and reduce or eliminate debt while at the same time increasing savings.  He realized Bank On Yourself could help his family “move to the right side of the line.”

What side of the “line” are you on now?

If you’re on the “wrong” side of the line, you know it.  You’ve probably tried to get to the other side of the line, but it’s not an easy journey to make.

The good news is that if you’re truly fed up with your situation and ready to make a change, Bank On Yourself can help you get there. My New York Times best-selling book, is filled with stories of folks of all ages and incomes who have done just that.

One woman who shared her story in the book is Rose Hillbrand (Chapter 8). Rose knew the feeling of hopelessness that came with the crushing debt she had incurred.  The video below updates her inspiring story of how Bank On Yourself helped her move to the other side of the line.  It was filmed when I was in Ohio speaking to a standing-room-only crowd of over 250 people…

And, if you’d like to get a no-obligation Analysis and a referral to a knowledgeable Bank On Yourself Authorized Advisor like the one Rose got referred to, who can show you how much your financial picture could improve if you added Bank On Yourself to your financial plan, simply request a free Analysis here.

Better than debt free?

Most financial experts say that the way to avoid getting into debt is to save up and pay cash for things.

They are wrong! There is actually a better way to purchase things.  I call it the “better than debt-free” method, and it actually beats paying cash.

How is that possible?!?  The conventional wisdom says that paying cash for things is the answer.  But this ignores an important, but little-known principle of finance…

What do I mean by that?  Let’s say you’ve decided you’re going to beat the financing and leasing rackets by paying cash for major purchases.  So you start putting money aside into a savings or money market account.  When you hit your savings target, you pull your money out to pay cash for that item.

Now how much interest are you earning on that money?

You’re earning ZERO interest, of course.  Which is why financing, leasing and paying cash are all losing scenarios.

Fact:  You’re either going to pay interest to others to finance things, or you’re going to lose the interest or investment income you could have earned, had you kept your money invested instead.

When you Bank On Yourself, you do pay interest on your policy loans.  But the interest you pay ends up in your policy, as I explain in detail on pages 100-102 of my book.

But far more important, as Dan Proskauer puts it…

The Bank On Yourself method offers something you truly deserve, but may not have – financial security and peace of mind.  With Bank On Yourself, you can sleep well knowing your savings can only grow, never shrink.  With Bank On Yourself, you know, rather than hope.”

Bonus:  Some companies have a feature that allows you to continue to earn the exact same interest and dividends – even on the money you’ve borrowed!

However, only a handful of companies offer a dividend-paying whole life policy that meets all the requirements to maximize the power of this concept AND pay you the same interest and dividends, regardless of whether you’ve borrowed from your policy .

And if your policy isn’t structured properly, your cash value won’t grow nearly as fast, you could lose the tax advantages, or both.

When you request a free Analysis, you’ll get a referral to one of only 200 financial advisors in the country who have met all the rigorous requirements to be a Bank On Yourself Authorized Advisor.

So, whether you’re on the side of the line that Dan Proskauer is on, and you want to strengthen your financial position and have predictability and peace of mind… or you want to be on that side of the line, chances are excellent that Bank On Yourself can help!

Why not find out today, if you haven’t already started to Bank On Yourself?

Dan Proskauer

It was almost two years ago that Dan Proskauer – a Vice President of technology engineering for a major health care company who holds three U.S. patents – first heard of Bank On Yourself.

Dan lives below his means, has significant savings discipline, and is a sophisticated investor.  But when the financial crisis hit, Dan realized he had nothing to show for decades of saving and investing his hard-earned money and “doing all the right things” we’ve been taught to do.

He felt angry, betrayed… and willing to open his mind and find out if there was something better out there.

Dan is very analytical and has since spent literally hundreds of hours investigating Bank On Yourself.  He has already started seven Bank On Yourself-type policies because, as he puts it, “the more I look into Bank On Yourself, the better it looks.”

Dan recently contacted me and generously offered to share his findings with you.  Whether you already use Bank On Yourself, or you’ve been considering adding it to your financial plan, you’ll learn something of value from this interview. You can listen to the interview by pressing the play button below, or you can download the entire interview as an MP3 and listen on your own player or iPod…

You can also download a transcript of the interview here.

In this fascinating interview, you’ll discover…

• Why Dan has cut back his 401(k) contribution to what his employer matches… and why he’s considering stopping funding it altogether
• What he discovered were the problems with traditional college savings plans, and why he believes Bank On Yourself is a better option
• The surprising result of Dan’s research into the rate of return of a Bank On Yourself-type policy – and why he feels the additional “intangible” benefits make it the best way to build a financial foundation in both good times and bad
• Why Dan has seven different policies – and is getting ready to start more
• Where Dan found the money to fund his policies
• Why Bank On Yourself will hold its own against things people worry about – including inflation, deflation and fluctuating interest rates
• The two downsides to Bank On Yourself that Dan found
• Why Dan believes it’s critical to use a Bank On Yourself Authorized Advisor to set-up your policy… and how getting knowledgeable, on-going coaching and advice can result in your having far more wealth over your lifetime, while ensuring you don’t lose the tax advantages of Bank On Yourself
• Why Dan – like hundreds of thousands of others who use the Bank On Yourself method – says the only regret he has is that he didn’t know about this sooner
• Dan’s advice to anyone who’s still sitting on the fence and hasn’t started yet

You can listen to the interview by pressing the play button below, or you can download the entire interview as an MP3 and listen on your own player or iPod…

You can also download a transcript of the interview here.

The more I look into Bank On Yourself, the better it looks.”
~Dan Proskaur

We want your feedback! Tell us what below what YOU think of Dan’s interview below…