Comments on: Suze Orman and Dave Ramsey: Let’s debate!

By: Pamela Yellen

Pamela Yellen — Fri, 16 Dec 2011 21:38:49 +0000

At age 70, if you haven't saved enough, you will need to take out a new policy - at a much higher rate, assuming you even qualify for it at that point. (And most 70 year olds today have managed to save only 25% of what they'll need for retirement, according to AARP.) All the premiums you paid into it are gone, too, of course. There is no comparison between term and dividend-paying whole life, which is a policy you don't have to die to win. These policies grow your nest-egg safely and predictably, allow you to become your own source of financing, and much more. Yes, they have a death benefit, too, but it's the living advantages that make Bank On Yourself unbeatable. That's why the $100,000 cash reward I've offered to the first person who has a strategy that can match or beat it remains unclaimed after 3 years.

By: Harry

Harry — Wed, 14 Dec 2011 09:10:38 +0000

What I’d like to know is what happens to the death benefit for this example after age 65. In my case, I took out a 30 year level term policy at age 40 with a premium of $558 per year that does not increase, for a death benefit of $500,000 (that does not decrease during the 30 year term) so up to age 70 I have a $500,000 death benefit for a cost of $16,780 in total premiums. The man in the example had nearly double the death benefit for his beneficiaries at age 65, but had to pay $125,000 ($350,000 less $225,000 loaned back to him) for it. It seems to me that I have the better deal here.

By: Tyler

Tyler — Mon, 26 Sep 2011 20:29:04 +0000

Do you have one of her policies? I do. I have banked out of that policy for years, and love it! It is set up different that regular life policies. You need to understand riders before you bag on her plans. I have multiple BOY plans and they are kicking butt. I love being my own bank while the nay sayers continue to get slaughtered. Good luck

By: Patricia

Patricia — Thu, 15 Sep 2011 17:43:52 +0000

Thanks to Pamela and Rose for their explanation and examples to clarify what “BOY” is and how it works. My question is, do you open just one account to service a college fund and other expenditures as given as examples here?

By: Admin

Admin — Thu, 01 Sep 2011 16:12:02 +0000

Bill, There are lots of advantages and guarantees the Bank On Yourself method has that no other financial product or strategy can beat. Learn about them here and keep in mind that if you use a strategy that really can match or beat the advantages of Bank On Yourself, we'll pay you $100,000 cash!

By: Bill

Bill — Thu, 01 Sep 2011 15:23:15 +0000

So to Rose’s response,
how is that different than if i just put $10,000 in any other investment for 35 years. At 4% i would have $765,000. Is there another advantage that i am missing here?
thanks, this is really interesting.
Bill

By: Pamela

Pamela — Tue, 16 Aug 2011 18:07:09 +0000

Depending on the situation, qualified plan monies are often used to fund a Bank On Yourself policy. At your age, many people are moving the funds from their retirement accounts as a lump sum into a type of whole life policy specifically used for older folks. I'll be writing about this more soon, but in the meantime, you can find out how much predictable, guaranteed income the policy would throw off for you when you request a free Bank On Yourself Analysis. For the record, there IS a better alternative to funding a qualified plan while you are working - fund a Bank On Yourself policy with those dollars instead, even the employer match isn't worth it for most people - based on actual results over the past two decades. And Bank On Yourself gives you 18 powerful advantages and guarantees. No other financial product, strategy or vehicle can match it - or even come close.

By: Fred

Fred — Mon, 15 Aug 2011 05:15:13 +0000

I must be missing somthing here in comparing qualified plans to BOY, at my age (72) my whole nest egg(90%) is in qualified plans (there isn’t much choice when you are working except to contribute to a qualified plan or lose big time to taxes). If qualified plans and BOY cannot work together there is no other source to fund BOY.

By: Pamela

Pamela — Wed, 22 Jun 2011 15:22:17 +0000

Thank you Catherine! It definitely can be frustrating. Thanks for your kind feedback.

By: Catherine C.

Catherine C. — Tue, 21 Jun 2011 05:48:53 +0000

Pamela, you have the patience of Job! Explaining a different way of investing can be frustrating and time-consuming, yet your responses are calm, clear and concise. I’m really enjoying your website.