Because of this, most baby boomers have been forced to postpone retirement an average of five years.¹

I’m often asked how using the Bank On Yourself method to save for retirement compares to traditional plans, so I put together this short video that reveals seven reasons Bank On Yourself makes an excellent retirement plan alternative.

Click the play button in the video below and see how many of these seven advantages you’d like to have in your financial plan…

1.  Bankers Life and Casualty Center for a Secure Retirement, May 2011

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…

So, I thought you may find it helpful to have the answers to these seven commonly asked questions…

1. How safe is my money in a Bank On Yourself policy?
2. What do the companies that offer Bank On Yourself-type policies invest in to protect and grow my money even in volatile times?
3. How would a decline in the dollar affect this strategy?
4. How will Bank On Yourself policies hold up if we have high inflation?
5. How will Bank On Yourself be affected if deflation becomes a problem?
6. Will I miss out if I put money in a Bank On Yourself policy and the stock market booms?
7. What if I lose my job and can’t pay my premiums?

Here are the answers to these timely questions:

1. How safe is my money in a Bank On Yourself policy?

The companies recommended by Bank On Yourself Authorized Advisors are among the financially strongest life insurance groups in the world. They are, in essence, owned by the policy owners, which lets them focus on the long-term best interests of the policy owners, rather then the short-term demands of Wall Street.

They’ve paid dividends every single year for more than 100 years, including during the Great Depression.

Life insurance companies are strictly regulated and have four layers of protection:

• They are audited regularly by the state insurance commissioner’s office (sometimes by dozens of states), to ensure they maintain sufficient reserves to pay future claims and are on solid financial ground
• If a company gets into financial difficulty, the state insurance commissioners office can take over and run the company in the interests of policy holders – usually a failed insurer’s business is then taken over by another company
• Most insurance companies are audited regularly by several independent rating companies
• Additional policy owner protections may be available on a state-by-state basis
  • 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!
  • Bank On Yourself gives you an advantage over traditional investments, where you may not only lose the purchasing power of your money, you could also lose some or all of your hard-earned dollars, if the value of your investment tanks.
  • Bank On Yourself policies are designed to become more efficient every single year. The growth of both your cash value and the death benefit is guaranteed AND exponential, which in itself gives you some protection against inflation.
  • Your premium in a Bank On Yourself-type policy is fixed for life – it will never increase. So if inflation does become a factor, you’ll be paying premiums with ever cheaper dollars

2. What do the companies that offer Bank On Yourself-type policies invest in to protect and grow my money even in volatile times?

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

3. How would a decline in the dollar affect this strategy?

No one knows for sure what direction the dollar will go. The current economic environment can change any time, and it can turn on a dime, as it has in the past. We are a global economy, and the actions of other nations impact us, as well.

In an article from MoneyCentral when the dollar was taking a beating in 2009 (MSN.com, on October 13, 2009), it was reported that central banks in numerous Asian countries were “actively buying dollars to check its fall against their currencies.”

Why do you think they would do that?

The reason given is that their exporters “can’t handle a drop in profitability and competitiveness,” if the dollar drops too far. Their prosperity has been in part due to a strong dollar, and “they aren’t going to give up all that easily.”

And, as Bloomberg.com reported on August 24, 2011, “a weak dollar may be one of the bright spots in the U.S. economy, and it could be the gift that keeps giving.” The article spelled out several ways the U.S. benefits from a declining dollar.

The point being that it’s not a black-and-white issue and no one can accurately predict what will happen, except that it probably won’t be what you imagine.

Since you must “park” your money SOMEPLACE, you would be hard pressed to find a safer, more advantageous place to put your dollars – in good times or bad – than in a Bank On Yourself-type policy. These policies have survived and even thrived for over 160 years in virtually every economic situation imaginable!

If you still think you have a better solution than Bank On Yourself, why not test it out by taking the $100,000 Challenge? If you’re right, you could pocket an easy $100K.

4. How will Bank On Yourself policies hold up if we have high inflation?

The insurance companies recommended by Bank On Yourself Authorized Advisors have most of their assets in long-term investment-grade corporate bonds. When inflation drives up interest rates, bond interest rates typically increase, which can increase policy dividends as well. This is precisely what has happened during high inflation periods in the past.

In addition:

One value of having money in a policy is that you HAVE the money, it is guaranteed to continue to grow, and it will be available for you to use when you need or want it.

(Note – I am referring to the mathematical definition of “exponential growth.”)

Compare that with the term insurance policies so many financial “gurus” recommend – your death benefit stays level, which means it loses real value every single year.

Example: If you buy a $250,000 20-year term policy at age forty, and inflation averages only 4% a year during that time, your policy would lose 56% of its value. Your family would get less than half of what you signed on for!

Plus, you have nothing at all to show for the premiums you paid, unless you happen to die during the term of the policy (and studies shows only 1% of term polices ever pay a claim).

Would you like to see what “guaranteed, exponential growth” would look like if you added a custom-tailored Bank On Yourself policy to your financial plan? Simply request a free, no-obligation Analysis to find out.

5. How will Bank On Yourself be affected if deflation becomes a problem?

In a deflationary environment, income is king. So, investors would be struggling to find safe, dependable sources of income. Which means top-quality bonds which provide that income – and which make up a major portion of an insurers portfolio – would boom.

Bonds do well in a deflationary environment because as interest rates decline, the higher interest being credited on existing bonds become more valuable. The companies used by Bank On Yourself Authorized Advisors are some of the financially strongest life insurance groups in the world.

They have the reserves to be able to hold bonds until maturity, if necessary. So (older) bonds with a higher interest rate help offset (new) bonds that may be purchased at a lower interest rate.

Key Point: It’s important to remember that the guaranteed cash values will continue to grow – and the growth gets better every year, and there’s nothing you can do about it!

6. Will I miss out if I put money in a Bank On Yourself policy and the stock market booms?

If you crave the adrenalin rush you get from the volatile roller coaster ride of stocks and other investments, the safe and predictable growth of Bank On Yourself may bore you silly.

We live in an instant gratification society and some people are looking for a quick fix or magic bullet – they want something they can put under their pillow before they go to sleep at night and wake up rich in the morning.

Well, for most of us, it ain’t gonna’ happen. How many more investment bubbles have to burst before we (really) learn that lesson?

Take a look at this side-by side comparison of the growth in the stock market versus Bank On Yourself over the long-term:


The chart on the right, showing the growth in a typical Bank On Yourself–type policy, is based on the actual growth I’ve received in one of my own polices so far, along with the projected growth based on the current dividend scale.

Remember that dividends aren’t guaranteed, but the companies recommended by Bank On yourself Authorized Advisors have paid them every single year for more than 100 years.

Once credited to your plan, both your guaranteed annual increase and any dividends you received are locked in. They don’t vanish due to a market correction. Your principal is locked in, too.

On the other hand, the chart above of the Dow over the past 38 years reveals long periods during which the market went nowhere and then a lengthy period of extreme volatility. There’s also the fact that the market can (and does) tank when you least expect it, ruining your best laid plans for a secure financial future.

When you Bank On Yourself, there may be times when you feel “left out” – like when your friends start bragging about the killing they’re making in the latest “hot” investment that everyone’s jumping on – real estate, tech or oil stocks, commodities, currency, gold – you name it.

But Bank On Yourself is all about building a solid financial foundation and a secure future. You’re not going to see those thrilling spikes, but you’re also not going to have those unpredictable, heart-stopping losses that inevitably follow.

And that’s when you’ll thank your lucky stars for your Bank On Yourself plan

Besides, if an investment opportunity comes up that you want to take advantage of, you can do that by using equity from your Bank On Yourself policy. Chapters 7, 8 and 11 of my best-selling book are loaded with examples of people who did just that. And at least you’ll know you’ll get the same guaranteed annual increase and dividends on the money you borrowed, even if the “hot” investment doesn’t pan out.

Note: Not all companies offer a policy that has this feature, which is another reason to work with a Bank On Yourself Authorized Advisor who knows how to properly structure your plan for maximum growth and knows which companies offer the policies that maximize the power of this concept. You’ll get a referral to one of only 200 advisors in the U.S. who have met the rigorous requirements when you request a free Analysis.

Let’s take a closer look at the typical growth pattern of a Bank On Yourself-type policy. This chart is from one of my own policies, and shows the growth I’ve already received, plus the projected growth, based on the current dividend scale.



No two policies are alike, because each is custom-tailored to the client’s unique situation and goals, so your growth curve will look different. But did you know that you can see what your growth would look like before you make a decision about whether to move forward? You’ll find out when you request a free Analysis here.

7. What if I lose my job and can’t pay my premiums?

The design of a Bank On Yourself-type policy gives you great flexibility. That’s because typically at least 50% of your premium will be directed into a “Paid Up Additions Rider” (PUAR), with the rest going towards your “base” premium. The PUAR is the little-known option that significantly turbo-charges the growth of your cash value. You could have up to 40 times more cash value, especially in the early years, when your policy includes this rider.

The kind of policies most financial “gurus” and advisors talk about grow much more slowly because they do not include this rider.

Because paying the premium that goes into your Paid Up Additions Rider is optional, in a pinch, you can cut back on or stop paying that premium. Some companies will even allow you to catch up on that premium later, as your financial situation improves.

You can also use your cash value and dividends to pay your base premium, when cash flow is tight.

However, in the first year or so, if you are unable to pay your base premium and you don’t have enough cash value to cover it, your policy could lapse, and you wouldn’t get back every dollar you put in.

Do you suffer from “paralysis by analysis”?



I hear from people every day who tell me they want to add Bank On Yourself to their financial plan, but they haven’t quite been able to make the leap yet.

They worry about what direction the economy is going. They want to see what the political climate will be. They want to have some kind of certainty in an uncertain world.

You’ve probably heard of “The Serenity Prayer” and this excerpt from it, which seems particularly appropriate today:



There are some things we simply can’t control. Not taking action is actually deciding to let chaos and uncertainty rule our lives.

There may never be a “perfect” time to take the steps that can enable you to take back control of your financial future.

Bank On Yourself is not a magic pill, as I’ve said many times. I don’t believe there are any magic pills.

But what I do know is that Bank On Yourself provides a long-term solution to a long-term problem. And the only regret expressed by most people who use it is that they didn’t know about it sooner.

If you haven’t already started to Bank On Yourself, request your free Analysis now – and start taking back control of your financial future today.

As I’ve said numerous times, I know Suze and Dave have helped many people get out of debt and get their financial act together.  However, there are two critical areas we strongly disagree on.

Neither of them has taken me up on the offer to debate me – yet. But I can’t help but wonder if they’ve ever actually checked into Bank On Yourself.

What would it be like to be a fly on the wall as Suze and Dave discuss Bank On Yourself? No need to wonder any longer, as our hidden video camera captured it all. Click the play button below…

In case you’re wondering, the statements made by Suze and Dave in the video about why you should invest in mutual funds and why you should avoid whole life insurance are direct quotes from their books.

And Suze really did tell the New York Times she doesn’t follow her own advice about investing in the market.

And yes, John Bogle, the founder of Vanguard – the largest mutual fund company in the country – really has written a stunning exposé about the smoke and mirrors mutual fund companies use to pull the wool over your eyes regarding the real returns you’re getting…

The conventional rates of return (we rely on) to measure performance reflect performance that is higher, and in many cases much higher, than returns earned by shareholders.”

- John Bogle¹

So why don’t Suze, Dave and most other financial gurus know about Bank On Yourself-type policies?

The three main reasons for this are:

1. Very few insurance companies even offer the kind of policy that maximizes the power of the Bank On Yourself concept
2. Insurance agents and financial advisors who help their clients implement this strategy take a 50-70% cut in commissions to do so
3. Probably because of reasons #1 and #2, this kind of policy is not even covered in most (and maybe all) of the training programs insurance agents take to get their licenses. It’s also not covered in the training they take to receive advanced designations, like CLU, ChFC, etc.

In fact, advisors who pride themselves on their 30+ years of experience and the “alphabet soup” behind their names often admit they’ve never heard of these kinds of policies!

That’s a big part of the reason why the Bank On Yourself Authorized Advisor Training Program was created.

To receive a free Analysis and get a referral to one of only 200 advisors throughout the U.S. who have met the rigorous qualifications, simply request it here. There’s no obligation to find out what your bottom-line numbers and results could be if you added Bank On Yourself to your financial plan.

Many people have been willing to keep an open mind and look into the facts about Bank On Yourself, and people have been flocking to it, in order to have peace of mind and financial security.

But if you’re reading this, and you still have a few questions holding you back, you can find the answers here:

• What’s the rate of return of a Bank On Yourself-type policy?
• What do the companies used for Bank On Yourself invest in?
• How are these policies different from the ones the financial “gurus” talk about?
• Where do I find the money to fund a plan?
• I have good savings habits and little debt – how will Bank On Yourself help?
• How do I get started?

¹Common Sense on Mutual Funds, by John C. Bogle – 2010 (updated 10th Anniversary Edition)

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.

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.

90% of the country’s employees’ 401(k) plans are watched over by people who “need no special qualifications and no investing expertise or experience”, according to the November, 2009 issue of SmartMoney Magazine (“The Accidental 401(k) Planner”).

While many managers hire brokers to suggest funds, brokers are not legally required to pick funds with low fees, so “401(k) plan managers who sign off on pricey funds could cost their workers tens of thousands of dollars over the long haul”.

Frightening 401(k) Fact #3:

The impact of 401(k) fees is hidden and colossal.

Many fees are not required to be disclosed to you in the 401(k) prospectus, and “can eat up half the income in some 401(k) plans over a 30-year span,” according to an exposé on 60 Minutes. (“The 401(k) Fallout,” April 19, 2009)

Paying even an extra 1% in expenses “can reduce your nest egg by about 17%, assuming a 6.5% annual average return.” (Source: “It’s time to fix the 401(k)”, CNNMoney.com, February 16, 2009)

With a Bank on Yourself plan, like buying a couch or TV, all costs are already included in the price – in this case, the premium. There are no extra, additional or surprise fees. Which means that when you request a free, no-obligation Analysis, you will see the bottom-line numbers and results you could get, if you added Bank on Yourself to your financial plan.

Frightening 401(k) Fact #4:

The closer you get to retirement, the more your money is at risk.

According to a recent cover story in Time Magazine (“Why It’s Time to Retire the 401(k)”, October 9, 2009):

During the market downturn, the 401(k)’s of 55-to-65-year-olds lost a quarter more than those of their 35-to-45-year-old colleagues. That’s because in your early years, your 401(k)’s growth is driven mostly by contributions. But the longer you hold a 401(k), the more market-exposed it becomes. It’s a twist that breaks the most basic rule of financial planning.”

Frightening 401(k) Fact #5:

Don’t try using the money in your 401(k) as an emergency source of funds in a tough job market!

If you borrow money from your 401(k), and you lose your job or leave your company for any reason (and you’re not age 59½  yet), in most cases, you’re required to pay any loans back in full – with interest – in 30 to 60 days, or you’ll have to pay income taxes on it, plus a 10% penalty.

There are no such restrictions when you Bank On Yourself. A very unique feature of this kind of policy is that when you borrow your equity, your money in the policy can continue growing as though you never touched a dime of it.

Only a few companies offer this feature, in addition to meeting all the other requirements for a Bank On Yourself-type policy.  You can get a referral to a Bank On Yourself Authorized Advisor who has advanced training and certification in this method, and who works with the companies that offer the best products, when you request a free Analysis here.

Added Bonus: You can pay back your loans to a Bank On Yourself policy on your own schedule. And, if you use the equity in your plan to finance major purchases yourself, you could recapture every penny you pay for those items, as outlined in Chapters 2 and 6 of my best-selling book.

The average family could increase their lifetime wealth by $500,000 to $1,000,000 or more using this method, without the risk or volatility of traditional investments.

Frightening 401(k) Fact #6:

Income taxes will take a huge bite out of your 401(k) withdrawals.

Many people believe they’ll come out ahead tax-wise by deferring taxes.  However, deferring taxes could actually result in your paying a whopping 118% more tax – and that’s assuming the tax rates don’t increase at all.

It’s possible to take an income from a Bank On Yourself policy with little or no tax consequences, under current tax law.

Frightening 401(k) Fact #7:

The government controls how much you can put into your 401(k) or IRA, and when and how much you can take out. And they can change the rules any time they want.

If they want to make you wait until you’re 68 or 75 to be able to take withdrawals without paying a penalty, they can do it.

When you Bank On Yourself you’re in control. You can take an income from your plan when and how you want, without penalty or restrictions.

Is it any wonder so many people are redirecting money they were putting into 401(k) plans that they can’t count on or control into Bank On Yourself plans that they can?

The 401(k): Trick or Treat?

Tell us what you think below.

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…

My wisest move was buying whole life insurance in the 1990s, precisely when countless books and articles mocked whole life as obsolete. My wife, Debbie, did the same. In the ten-plus years that we’ve paid $5,000 a year combined into our policies, both from extremely sound mutual-insurance companies, we’ve built substantial five-figure cash values, can borrow from them instantly at virtually no cost and haven’t paid a cent of tax on the earnings.”¹

Like most people who have Bank On Yourself plans, Jeff’s only regret is probably that he didn’t put more into the policies!

It’s a virtual certainty that Jeff and Debbie’s policies are traditional dividend-paying whole life policies, rather than the specially-designed, super-charged variation used for the Bank On Yourself method.

Had Jeff and Debbie’s policies been designed the Bank On Yourself way, they’d have significantly more cash value now.

As the Dow moved through the 10,000 mark this week, a dose of reality is in order…

1. The Dow first closed above 10,000 on March 29, 1999 – more than a decade ago!

It’s just now catching up to where it was then.

By contrast, a Bank On Yourself-type policy grows by a guaranteed and predictable amount EVERY single year. It never takes a ten-year vacation… or even a one-year vacation! (For the record, the stock market takes a 10-year or longer “vacation” pretty often, as any glance at a stock market timeline reveals.)

Both your principal and gains are locked in – they don’t vanish in a market crash.

The growth is not only guaranteed, it’s exponential - it gets more efficient every year you have it. That gives you some built-in protection against inflation.

2. The typical mutual fund investor has actually been LOSING money every single year for the past TWENTY years, after adjusting for inflation!

That’s because most investors – and even most investment “experts” – continually buy and sell at precisely the wrong time.

(Source: DALBAR’s 2008 Quantitative Analysis of Investor Behavior)

3. For the past forty years, ordinary long-term treasury bonds have outpaced investing in the stock market!

That means the only “rewards” investors have received for taking the extra risk of stocks and equity mutual funds are sleepless nights and broken retirement dreams (Source: “Bonds Why Bother?” Journal of Indexes, May/June 2009 Issue)

Sheesh! Is this the best Wall Street has to offer us?

You’ve probably heard the old saying,

Fool me once, shame on you, Fool me twice, shame on me.”

How many times have you already been fooled and had your hopes raised, only to be dashed again and again?

If you’ve had enough of that, and want a financial plan that never takes a vacation, never goes backward, and never disappoints, why not take a step in a positive direction and request a free Bank On Yourself Analysis that will show you how much brighter your financial picture could be when you Bank On Yourself?

1. “Our Best And Worst Financial Moves,” www. finance.yahoo.com, September 22, 2009

One of my most influential mentors (Dan Kennedy) says,

If you don’t offend somebody by noon each day, you’re not doing much.”

So I want to thank Danny Snyder, whose post to this blog you’ll find below (exactly as he submitted it), for confirming that I am indeed doing something:

First of all using the words “money on steroids” immediatly puts you in the liar and non-trustworthy catagory. If you put in $5314.44 and your cash value is $2937.18 you need some ritilin, you are A.D.D. Dave Ramsey (who is in a catagory way above the likes of you and Suze Boreman) knows of what he speaks. Millions of people have changed their lives due to Dave’s advice. You need to tread very lighlty, if you want to succeed and prove yourself. Think… before you tear down people you do not know. I do actually Bank on Myself.

Your a scam!

Danny Snyder

On this website, I have stated that I agree with many of the basic principles taught by the financial “gurus” like Dave Ramsey and Suze Orman.  And I know they have helped turn around the financial lives of many.

However, there are two critical areas we differ on…

1.  That you must risk your money in the stock market to grow a substantial nest-egg

2.  That any kind of whole life insurance should be avoided

Dave and Suze (and many others) insist that investing in mutual funds is the road to wealth.  Suze insists in her latest book that “only stocks offer the potential for inflation-beating gains over the long term.”  However, research shows that’s actually the road to financial insecurity.

The reality is that the typical equity mutual fund investor managed a 3.83% annual return for the past 20 years, outpacing inflation by only about 1% per year!” ¹

Suze neglects to mention that investing this way also has the potential to dash your dreams of retirement and financial security, as so many Americans have discovered.  Suze wants you to do what she says, not what she herself does.  She has admitted to the New York Times (and elsewhere), that she only has 4 percent of her $25 million of liquid assets in the stock market, because, “If I lose a million dollars in the stock market, I don’t personally care.”

Dave and Suze – and most other “experts” – insist whole life is a horrible product.  But what fries me is that, when asked about Bank On Yourself-type policies, most of them typically dismiss it with some variation of, “Oh, that’s just another way for life insurance agents to try to put a sexy wrapper around something that’s a waste of your money,” without even taking the time to learn the facts.

Anyone who takes two minutes to look at the policy statement examples on my post challenging Dave and Suze to a debate will realize that Bank On Yourself policies are a totally different animal from the kind they know about.

I supposed it’s not really their fault that they don’t know how a Bank On Yourself policy works or how it’s different from the ones they know about.  Out of more than 1,500 life insurance companies, only a handful even offer a product that meets all the requirements and has all the features needed to maximize the power of the Bank On Yourself concept.

As a result, this type of specially-designed type of dividend-paying whole life policy isn’t even covered in the training programs advisors are required to take to get licensed.

Also, advisors who design and implement Bank On Yourself-type policies have their commission slashed by 50-70% to do so.  Many aren’t willing to do that.  Which is another reason most financial advisors won’t tell you about this, or will try to steer you to another more profitable product.

But don’t you think these experts should get the facts before pronouncing judgment?

Regarding Danny’s comment above that I need some “ritilin” if I paid $5,314 into one policy in the first year and only had $2,937 of cash value at the end of the year:  You missed the point.

I showed that statement to demonstrate that Dave, Suze, et al., are talking about a totally different policy from a Bank On Yourself plan.  They talk about whole life policies that have no cash value at all in the first few years.  But due to little-known riders that are added onto the policy, a Bank On Yourself policy has cash value in the first year (and even in the first month), and can have up to 40 times more cash value you can use, especially in the early years of the plan.

And, as I noted, no – you don’t get back every penny of premium in the first year, because there are no magic pills, folks.  There’s a cost for all the benefits, advantages and guarantees you get with a Bank On Yourself plan (including the fact that the company will pay out the full death benefit of the policy, even if the policy owner dies after making only one premium payment).

Think of it as a start-up phase.  It’s a one-time requirement that pays a lifetime of benefits.

And I wonder why Danny ignored the other (older) policy statement that shows how much one of my policies went up during the same period that the S&P 500 plunged by 40%?

All my principal and all my previous gains were locked in!

The plan grew by a guaranteed amount plus I received a dividend.  Just as has happened every year for more than 160 years.  More than 400,000 Americans already use Bank On Yourself for true financial peace of mind. And famous people including Walt Disney and J.C. Penney have used this method, too.

The fact of the matter is that if it weren’t for Bank On Yourself, we’d be in he same boat as most Americans, wondering if we’d ever be able to retire, and what we’d have to give up in order to do that.

As the philosopher Arthur Schopenhauer noted,

All truth goes through three stages:  It is ridiculed; then it is radically opposed; and only much later will it be accepted as self-evident.”

To find out how adding Bank On Yourself to your financial plan can help you reach your goals and dreams, and for a referral to a Bank On Yourself Authorized Advisor (a life insurance agent with advanced training in this concept) who knows how to structure your policy correctly and can show you how to use it to become your own source of financing for all your major purchases, while growing a nest-egg you can predict and count on, request your free Analysis today.

1. DALBAR’s 2011 Quantitative Analysis of Investor’s Behavior