That makes a lot of sense. The pieces are really falling in place for me. Thanks again.

In deflationary times, income is king. So, investors would be struggling to find safe, dependable sources of income, which means top quality bonds which provide that income (a major portion of an insurer’s portfolio) would boom.

As interest rates decline (in deflationary cycles), the higher interest being credited on existing bonds becomes more valuable.

The insurance companies used by the Bank On Yourself Authorized Advisors invest for the long term and have enough assets/reserves to be able to hold on to assets until the mature, if necessary. Because companies tend to hold bonds, (older) bonds with a higher interest rate return in their portfolio help offset bonds that are currently being purchased at a lower interest rate.

As you have probably guessed, I talk a lot about BOY and the financial opportunities it can provide because the best way to lean something is to teach it. I’m still amazed at how many people like to point out the real possibilities that the dollar will decrease in value. Even in the posts I’ve read here, this is an issue for many. So for those people I remind them of something my physics teacher used to preach:

“Everything is relative”!

If the dollar does devalue as the “gurus” predict doesn’t it make even more sense to have your money in a financial vehicle that grows faster than conventional vehicles? Again, if the dollar devalues all dollars devalue even the ones in conventional financial vehicles like mutual funds, 401Ks and the like. The only difference is those vehicles don’t lock in equity like BOY does. In a way, and please correct me on this Pamela if I’m wrong. When the value of a dollar does decrease, conventional financial investments will lose their value just like a BOY plans increase equity… exponentially!!! Why? Both the dollars going in are worth less AND the equity already gained decreases too because the equity is still influenced by the market until you take it out of that account which removes it from the risk. Of course that money taken out is no longer “working” for you (like it ever was very much).

In BOY, as Pamela always reminds us, our equity is locked in. It’s earned without risk, a multi-layer safety net, and once earned it is still not influenced by market risks. If the dollar does drop, doesn’t it make sense to have it in a vehicle like BOY? It does to me and I’m starting my second plan in November. I’m also very proud of my daughter, Randi who started her first BOY plan this last Spring.

Thanks for everything you do Pamela. Keep preaching and keep inspiring, we’re listening.

I would strongly urge you and your daughter to take advantage of a free Analysis and get a referral to a Bank On Yourself Authorized Advisor who can review her situation and make appropriate recommendations.

Regards,
Sten

Since much of the insurance company’s portfolio is in fixed income assets, that makes sense.

The other way you receive some protection against inflation is because the growth of both the cash value and death benefit is exponential. And, since your premium is fixed, you are paying it with continuously deflated dollars.

We found BOY very randomly and I investigated it thoroughly, reading both Pamela’s and Nelson Nash’s books as well as speaking with an authorized advisor. Fortunately, our advisor was very patient with all my detailed questions! To Bill’s experience above, I can state firmly that our BOY advisor is constantly in contact with us and I know he will always be there for us. I have been happily recommending BOY to others.

I understand your concern about lack of follow-up among financial advisors. Bank On Yourself Authorized Advisors typically review your situation with you every six months, to ensure you’re getting the maximum benefit from your plan.

And yes, there is a real difference in the way a Bank On Yourself policy is structured.

To get a referral to a Bank On Yourself Authorized Advisor, simply request a free analysis.