Funding Your Plan

Okay. We know how you’re feeling: “This Bank On Yourself stuff sounds pretty darn impressive, but I don’t have a pile of cash laying around at the end of each month. Where can I find the money to get started?”

Fair enough. We understand. But you may be surprised to learn just how easy it is for you to find the dollars to begin to Bank On Yourself, including these eight most common ways:

1. Restructure debt
2. Reduce funding of your 401(k) or other retirement plans
3. Raid your IRA or 401(k)
4. Tap your savings
5. Rethink that tax refund
6. Make lifestyle changes
7. Convert existing life insurance policies
8. Manage your home equity wisely

How much does it cost?

Funding Your Bank On Yourself Plan

Your policy will be custom tailored to your unique situation, goals and dreams.

There is no set amount a person must put in. You can begin at whatever level is comfortable for you.

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

Bank On Yourself Authorized Advisors (life insurance agents with advanced training in this concept) do not charge fees to prepare an Analysis or to design your policy. If you decide to implement it, the Advisor would receive a commission from the insurance company, which has already been taken into account in the bottom-line numbers you will see when you request your no-obligation Analysis.

Much like buying a flat-screen TV or a couch, all
the costs of “manufacturing and sales” are already
included in the price – or, in this case, in the insurance premium. There are no hidden fees (unlike the many undisclosed fees you have with a 401k plan).

Also keep in mind that Authorized Advisors take an average of a 50 to 70 percent pay cut, because at least 50 percent of your premium is typically directed into a paid-up additions rider that turbo-charges the growth of your cash value in the policy, but pays the Advisor virtually no commission.

And Bank on Yourself Advisors are masters at finding creative ways in which you may be able to fund a bigger policy than you thought possible…sooner than you thought possible, sometimes with little or no increase in your out-of-pocket cost. There are many real-life examples of this in chapters 7 through 12 of Pamela Yellen’s best-selling book. Here are eight of those ways:

1. Restructure debt

In some situations, cleverly reducing debt will allow you to use the dollars freed up for your policy. There are a half dozen ways to do this, which can free up a significant amount of monthly cash flow to help fund a policy that could help you achieve your goals as quickly as possible. Bank On Yourself is even better than debt free.

2. Reduce funding of your 401(k) or other retirement plans

Many people find money to finance their policy by backing off on funding their 401(k) or other retirement accounts, and continuing to pay only the amount that their employer matches. This brings them the guarantees, tax advantages, and flexibility Bank on Yourself provides, that their traditional, government-sponsored 401(k), IRA or pension plan may not. It lets them stop playing retirement-plan poker and have the peace of mind that a predictable retirement income stream brings.

Raid Your IRA or 401(k)
3. Raid your IRA or 401(k)

You can use a federal rule, the 72(t), to pull money out of your traditional retirement plan, which could then be used to fund your policy. This enables you to avoid the usual premature distribution penalty anyone younger than 59½ would otherwise be required to pay. (Be sure to consult with a qualified advisor and tax professional before considering this option.)

4. Tap your savings

If you have been building an emergency fund in a savings or money market account, a policy designed to maximize the power of the Bank on Yourself concept can also serve as an emergency fund, so you may want to consider opening a policy and moving some of your current savings into it.

Moving some of your “safe” money can result in your dollars working much harder for you, without losing sleep

5. Rethink that tax refund

Some people love getting a big tax refund check in the mail every year. But that’s your own money you’re getting back. You’re giving the government an interest-free loan, while getting a zero rate of return on your money. It’s fast and easy to adjust your withholding, immediately increasing your monthly cash flow (in some cases by hundreds of dollars a month), and you could then use those dollars to fund your policy.

To learn more about how Bank On Yourself works, request our FREE Special Report, How to Safely Grow and Protect Your Wealth, Even When Stocks, Real Estate and Other Investments Tumble.

6. Make lifestyle changes

One option to consider that could enable you to start a plan sooner is holding onto your car a few years longer than you normally would and holding off on buying a new one. It’s also easy to cut monthly costs by simple changes like eating out less, and bundling your Internet, cable TV, and phone services. Take the first step today and take back control of your financial future!

7. Convert existing life insurance policies

Transferring cash value from existing policies may be an option. In some situations, taking a withdrawal from the old policy and using that to fund a policy that meets the requirements for Bank On Yourself may be an option. (A word of caution: Giving up an old insurance policy is not always in your best interest. A Bank On Yourself Advisor can explain the pros and cons and show you the impact of doing this.)

Managing Your Home Equity8. Manage your home equity wisely

Many people like the feeling of security that comes with building up equity in their home, or owning it free and clear. Some people make extra mortgage payments, or refinance to a 15-year mortgage, even if it makes them feel financially pinched. But there are hidden dangers to the belief that you can’t have too much equity in your home:

  • Payments of principal you make into your home do not make money for you
  • The equity in your home is not liquid
  • The equity in your home is not guaranteed (a fact which came as a shock to many when the real estate market crashed)
  • There is no tax benefit to having equity in your home

Unfortunately, many people never discover these pitfalls until it’s too late.

You may find that you can restructure your mortgage, or stop making extra payments of principal, and free up more seed money to help fund a policy, so you can move closer to a secure financial future.

That is not to suggest that you use your home equity to directly finance your lifestyle, or that you use your home as an ATM, as it’s been referred to in recent years. This will not get you the desired result.

But if you put those dollars into the kind of policy recommended for the Bank on Yourself concept, you could then borrow your equity in the plan to make major purchases, paying your loans back to your plan, so you recapture those costs. In the process, you can use those recaptured dollars to fund a worry-free retirement.

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

More than 100,000 people are enjoying these benefits today because they have rejected the conventional financial “wisdom” and are now in control of their financial well-being. Bank on Yourself was established in 2002 to educate Americans about this powerful way to have a rock-solid financial plan, with no luck, skill or guesswork required.

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