Top Five Recent Stories from Bank On Yourself

Judging by the questions we’ve been getting from subscribers, there’s a good chance you may have missed some of these 5 important recent stories…

1. New Wealth-Killing Revelations About Your 401(k) and IRA I'm going to retire and live off my savings...

While doing research for my new book (The Bank On Yourself Revolution, due out on February 11), I came across four stunning new revelations about 401(k)s and IRAs. If you have money in one of these plans, I urge you to read this exposé to find out how to protect yourself from making costly mistakes.

 2. Is Bank On Yourself “Snake Oil”? 

[Read more…]

Bank On Yourself Round-Up for week of July 13, 2011

Here are short summaries of three of the most interesting and thought-provoking items that have crossed my desk this week.  Enjoy… and tell us what you think!roundup

Would you be prepared if you suffered a 30% pay cut?

A shocking new report reveals that the average person’s pay levels off when they’re in their 40’s.  After that, about all you’ll be likely to count on will be cost-of-living adjustments to keep pace with inflation.

That will come as a real surprise to many people who assume their pay will continue to rise as they get older.

And if you lose your job while in your 50’s, you’re likely to remain jobless longer than when you were younger, according to the report.

Salary CutRead this sobering and well documented article from the Wall Street Journal.1

What’s your best self-defense?  When planning for retirement, assume the only salary increases you’ll get will be cost-of-living adjustments.  And identify a worse-case scenario – such as a 20% pay cut during your final ten years in the workforce – and try living on that income and putting the rest into savings.

[Read more…]

Bank On Yourself Round-Up for week of June 23, 2011

Here are short summaries of three of the most interesting and thought-provoking items that have crossed my desk this week.  Enjoy!roundup

What would it be like to retire on $260 a month?

Have you ever thought about what kind of lifestyle you would have if your retirement plan only threw off $260 a month?

It’s a question a lot of Americans are going to have to start asking themselves.

A shocking article appeared this week on SmartMoney.com 1 revealing how much money the typical person approaching retirement actually has saved in their 401(k) and/or IRA.  And it’s not a pretty picture…

What would it be like to retire on $260 a month?

A typical pre-retiree taking withdrawals the way most people actually do would only be able to take $260 a month.

Oh, yeah – the article didn’t even mention you gotta pay the taxes you deferred all those years on that money!

How much do you think is going to be left for food, housing, utilities, car expenses, medical expenses not covered by Medicare, etc.? You’ll be lucky if you can scrape by at all, let alone enjoy even the smallest of life’s luxuries.

Of course, maybe you’ll have Social Security and Medicare to rely on.  Or maybe not…
[Read more…]

Bank On Yourself Round-Up for Week of June 9, 2011

I hope you enjoy these short summaries of three of the most interesting and thought-provoking items that have crossed my desk this week…

roundup

Brave new world of financial planning?

Can a new blood test tell you how long you’ll live?  And if you knew how long you would live, would you change your financial life?

A blood test showing how fast people are aging will go on sale over the counter in Britain later this year.  It measures the length of your “telomeres,” structures at the tips of your chromosomes.  Scientists now believe these are the most accurate measure of how quickly you’re aging.

Financial planners say the test could add more science to their practice.1

As one financial planner noted…

From a financial point of view, it would be great information to have.  But from a psychological standpoint – that’s a hard question.  I don’t think I would want to know.  I think it would make me depressed.”

How would you feel about knowing when you’re likely to die?  And how would your financial decisions change as a result?

Tell us in the comments box below…

New Research:  Most Americans in deep financial hole

The financial status of American households may be even darker than we thought, according to a new study by the National Bureau of Economic Research.2

Some of the highlights (or should we say “lowlights”) include:

Bank On Yourself Round-Up for Week of June 3, 2011

roundupHere are summaries of four of the most interesting and thought-provoking items that have crossed my desk this week…

Forbes Magazine Shocker:  Why your 401(k) isn’t what it’s cracked up to be!

A stunning article appeared in this week’s Forbes.1 Here are a few of the revelations you absolutely must know about, if you participate in a 401(k):

  • On average, participants in small plans (which includes 90% of all employees) pay 1.9% in fees annually!
  • Even paying fees of just 1.5% could wipe out one-third of your nest-egg
  • In spite of all the noise about “fixing” the 401(k) through new disclosure rules that will be going into effect, they “could cause some 401(k) services to get even more costly.”

 

Why you need an 8-10% annual return just to break even in your 401(k)…

It’s all documented in this 401(k) exposé I co-wrote with Pulitzer Prize-nominated journalist Dean Rotbart. You owe it to yourself to have the facts!

[Read more…]

Bank On Yourself Round-Up for Week of May 25, 2011

Here are summaries of four of the most interesting and thought-provoking items that have crossed my desk this week…roundup

Is a “look out below” stock market crash looming?

By some key measures it is – corporate profits have only commanded as large a share of national income twice before – in 1929 and 2006, and those years preceded the past century’s two worst  financial collapses.

Knowledge is power, so I encourage you to read this article on The Invisible Stock Bubble1 from SmartMoney.com.

Want to eliminate market risk from your financial plan?

It’s easier to do than you might think. Find out more about an asset class that has increased in value every single year for over 160 years.

Pamela Yellen interviewed on NPR:  Teach teens how to manage money

[Read more…]

Bank On Yourself Round-Up for Week of May 18, 2011

I hope you enjoy these short summaries of four of the most interesting and thought-provoking items that have crossed my desk this week…Bank On Yourself in the News

401(k) savings reach a 12-year high

However, half of all workers aren’t confident about their retirement future. No wonder, considering 56% say they’ve saved less than $25,000.1

According to an article in USA Today2, many 401(k) participants increased their contribution some this past year.  If you’re one of them, or are considering doing that, here are some things to think about:

  • After a “lost” decade for stocks, before the market turned around in 2009, the 10-year returns of the S&P 500 were negative. Even after a near-record recovery, the 10-year returns remain meager – just 2.7% on an annualized basis for the ten years ending in April.3

That just about equals the inflation rate for that period, wiping out any real gain you might have had for the decade.  It also assumes you have no fees or costs (401(k)’s have some of the highest costs) AND assumes you’ll pay no taxes!

  • And speaking of taxes… what direction do you think tax rates are going over the long term?

If you think they’re going up, as most people we’ve surveyed do, and you’re successful in growing a nest-egg in your 401(k), you’re only going to pay higher taxes on a bigger number!
[Read more…]