Fire Your Banker Video Contest Results

Wow! We received more than 150 terrific entries when we invited readers to tell us what you think about our unusual new video on “How to Fire Your Banker and Become Your Own Source of Financing”.

Prizes-neon

We want to thank everyone who took the time to give us such detailed and honest feedback, which is exactly what we need to be able to communicate the benefits of Bank On Yourself more effectively.

Five people on the Bank On Yourself team – myself included – poured through every single response, not just to pick the contest winners, but to also learn what questions and concerns you have about the Bank On Yourself concept.

At $1,000 per finished minute to film this kind of video, I was really glad no one said what they liked most about it was when it ended! Most people really liked the unusual video style and felt that it helped them better understand one of the most intriguing advantages of the Bank On Yourself method: How it lets you bypass banks, credit cards and finance companies and become your own source of financing.

If you haven’t watched the video yet, I encourage you to do that now…

 

There were many terrific insights and questions in the contest entries. It was tough to pick just five winning entries (we actually picked six), but you’ll find the winners listed below.

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Video: How to fire your banker!

We’re always looking for entertaining, easy-to-understand ways to explain key concepts of the Bank On Yourself method.  So we just completed a new – and very unusual – video that explains one of the most powerful features of Bank On Yourself – how it lets you bypass banks, finance and credit card companies altogether and become your own source of financing.

This video also addresses how purchasing things like cars, vacations, business equipment, or a college education through a Bank On Yourself plan beats financing, leasing and even directly paying cash for them.

Click the play button on the video below, then scroll down to the comments box and give us your feedback…

HOW MUCH MONEY COULD YOU HAVE BY BECOMING YOUR OWN FINANCING SOURCE?

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To find out how much more money you could have when you fire your banker and become your own financing source, request a FREE, no-obligation  Analysis.

We’d really love to get your feedback on this new video and video “style”.  (You’ve probably never seen a video like this before.)

Here are questions we’d love to get your feedback on in the comments box below…

1. Do you currently use Bank On Yourself?

2. What was the best part of the video?

3. What is still unclear about the Bank On Yourself concept?

4. What topics could we address that you think would give people more confidence to consider Bank On Yourself?

5. If you do not currently use Bank On Yourself, did this video make you more likely or less likely to request a free Analysis and get a referral to one of the Bank On Yourself Authorized Advisors?

6. If you are currently using Bank On Yourself, do you feel that this type of video is something you could share with family, friends and colleagues to help them understand this method of managing your finances? Why or why not?

7. Is there any other feedback you’d like to give us?

Singer Karyn White Seizes the Day with Bank On Yourself

I just recorded an inspiring interview with Grammy-nominated contemporary/pop and rhythm and blues recording star – and Bank On Yourself client – Karyn White.

Grammy-Nominated Singer Karyn White Seizes the Day with Bank On Yourself

Grammy-Nominated Singer Karyn White Seizes the Day with Bank On Yourself

Karyn was in her early 20’s when she became the first female artist to have her first three solo releases hit #1 on the R&B charts.  She collaborated with industry legends including Babyface and L.A. Reid, before devoting herself full-time to raising a family.

After an 18-year hiatus, and a fan base that never forgot her, Karyn decided to record again.  Only this time she decided to produce her new CD album, Carpe Diem, herself – and pocket the profits the record companies used to make off of her.

In this interview, Karyn reveals:

  • How she used her Bank On Yourself plan to finance her new CD herself (and why she probably wouldn’t have been able to do it otherwise)
  • How making the right choices about money puts you in the position of being able to take advantage of opportunities that will inevitably come your way
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How to become your own source of financing

What if you could bypass banks, finance and credit card companies altogether and become your own source of financing?

It’s easier to do than you might think and hundreds of thousands of people are already doing it!

To show you how it works, we’ve created a fast-paced video. This video reveals…

  • A way to make major purchases that beats financing, leasing or even paying cash for them!
  • How the Bank On Yourself method lets you use your money to buy things…  but still have it earning interest and dividends for you
  • Six ways this method beats using traditional financing
  • How famous people like Walt Disney and J.C. Penney used this method – when no banker would lend them a dime
  • How the average family can add $500,000 – or more – to the their lifetime wealth, simply by running their car and vacation purchases through a Bank On Yourself plan

Click the play button below to watch the video…

Would you like to find out how much more wealth you could have when you become your own source of financing?

No two Bank On Yourself plans are alike. Each is custom tailored to your unique situation, goals and dreams. To find out what your bottom-line, guaranteed numbers and results would be if you added Bank On Yourself to your financial plan, request a free, no-obligation Analysis today, if you haven’t already done so.
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If you’re wondering where you’ll find the money to fund your plan, keep in mind the Bank On Yourself Authorized Advisors are masters at helping people restructure their finances to free up money to fund a plan. Here are the eight most common places they look.

Here’s another video you may be interested in…

Would you like to see a specific example showing how much guaranteed and predictable income you could have in retirement, using the Bank On Yourself method?

Click the play button in the video below to see a fascinating example:

Money and Investing IQ Contest Results

The results of our “Test Your Money and Investing IQ” blog contest are in – once again proving that we have a lot of smart subscribers!

But some of these questions about key money and finance basics tripped up some of our readers – almost no one got all five answers right. Making financial decisions without knowing the correct answer to even one of these questions can easily shave six figures or more off your lifetime wealth.

So I urge you to pay close attention to the correct answers below. You’ll also find a list of our six contest winners at the end of this post.

Here are the correct answers given by readers to the five questions…

Question #1: If you finance a $30,000 car through a finance company, your actual cost for the car is the money you spend on it, plus the interest you pay, less the value of your trade-in at the end of your loan repayment period.

If you pay cash for a car, what’s your actual cost for the car?
Finance major purchases like cars through Bank on Yourself method to save and make money

Answer: Joe Goldsmith pointed out what many people with alphabet soup after their name don’t get – that “paying cash for the car is just another form of financing.”

John Nicholson summed it up succinctly: “If you pay $30,000 cash for a car, your actual cost is the money you spent on the car, less the trade-in value at the end of the period, plus the opportunity cost – the loss of interest that the $30,000 could have earned.”

Perry Blouin went on to calculate the enormity of the total loss you could have over 40 years because of this “opportunity cost.” And Valerie Coffman noted, “If you use a Bank On Yourself policy (to pay for the car), you make money as if you never took it out, and you make money on yourself when you pay it back. Awesome!”

As Eric pointed out, “with Bank On Yourself, you accumulate the $30,000 and when it comes time for your vehicle purchase, request a check from the insurance company, receive it within 48-72 hours and then be ready to negotiate with the car dealership.”

Using your Bank On Yourself policy to pay for major purchases also gives you access to money on your terms rather than someone else’s. You can pay it back on your own schedule without worrying about bill collectors, late fees or black marks on your credit report. It beats financing, leasing or even directly paying cash for things by a long shot.

To find out how much more lifetime wealth you could enjoy – simply by using the Bank On Yourself method to make major purchases versus the other options available to you, request a FREE no-obligation Analysis that will show you your bottom-line results. I think you’ll be amazed!

Unlike stock marketing, Bank on Yourself method does not rely on sale of asset to deliver profits

Question #2: If you have a $20 stock and it goes up by 40%, how much money did you make on that stock? (Hint: This is about a key financial principle, not a math question.)

Answer: The talking heads on Wall Street NEVER get this one and do their best to make sure you don’t figure out the blindingly obvious answer to this question!

As Ruth noted,

You don’t make any money until you actually sell your stock.”

Likewise, it makes me crazy when people talk about how much value their home has lost since the real estate bubble burst. You don’t have a REAL gain (or loss) until you sell an asset and lock your profits in.

Which is in stark contrast to the Bank On Yourself method. The gains you receive each year (guaranteed and predictable) are locked in the moment they’re credited to your policy. As for losses… well, there aren’t any. This is based on an asset class that has increased in value every year for over 160 years!

Question #3: According to Morningstar, Inc., the top-performing mutual fund for the last decade (ending December 31, 2009) enjoyed an 18% annual return.

However, the typical investor in that fund wasn’t so fortunate.

What was the annual return of the typical investor in that top-performing fund? And why was their return so different from the return reported by the fund?

Answer: Only one person – Raymond Trembath – nailed the shocking correct answer to this question (no one else came even close), and he also noted the reasons why:

“The typical investor in the best performing mutual fund of the last decade lost 11% annually, even though the fund itself rose by more than 18% annually. The reason this could happen is that all mutual funds are legally allowed only to advertise the results of their ‘buy and hold’ investors, in spite of the fact that long-term mutual funds tend to be held for less than half a decade!”

Doesn’t this typify the smoke and mirrors that the Wall Street Casino uses to pull the wool over our eyes?

If you find it hard to believe that the results mutual funds report could be so different than the results the investors in those funds get, I urge you to read the article supporting this from the Wall Street Journal.

The ultimate financial security blanket

Did you know that the Bank On Yourself wealth-building method has NEVER had a losing year? Used by Walt Disney and J.C. Penney, it has stood the test of time for more than 160 years.

To find out how you can grow your nest-egg safely and predictably, even when stocks real estate and other investments tumble… and how much money you could have – GUARANTEED – on the day you plan to retire, request your FREE no-obligation Analysis and Recommendations now.

You’ll also get a referral to a Bank On Yourself Authorized Advisor who can help you find money you didn’t know you had to fund your plan.

	mutual funds and investment experts are human too and sometimes make mistakesQuestion #4: What percentage of mutual funds, financial advisors and investment advisory services underperform the overall market? And why?

Answer: Nick H. hit this one spot on when he said, “80% per Hulbert Financial Digest.”

And it’s not just because of the fees they charge. It’s because all the “experts” are humans, too, and are “predictably irrational,” buying and selling at the wrong times.

Question #5: You could have $10,000 in a mutual fund that reports an average annual return of 25% for four years… and at the end of the fourth year end up with only the $10,000 you started with.

How is that possible?

Answer: Doc Youngblood’s little story was such a great, entertaining explanation of this, I decided to include his response in full:

“How is it possible to have $10,000 in a mutual fund that reports an average annual return of 25% for four years… and at the end of the fourth year you end up with only the $10,000 you started with?

The key to the question’s answer is hidden in this short, simple story, but hidden in plain sight for those willing to see.

And the story? You’ll like this I promise—no animals were hurt during its filming.

rubber duck in a sea of cashImagine we are duck hunting and I shoot. I miss by a foot behind the duck. So I quickly aim and shoot again. I miss by a foot in front of the duck.

By the law of averages, I hit a bulls eye. By the law of dinner, my plate is still empty.

So, if your mutual fund reports an average annual return of 25% for four years, does that mean you’ve got more money in your account?

Let’s play:

Year One: Year Two: Year Three: Year Four:
Starting balance: $10,000 Starting balance: $20,000 Starting balance: $10,000 Starting balance: $20,000
Change: +100% Change: -50% Change: +100% Change: -50%
Ending Balance: $20,000
(woo-hoo!)
Ending Balance: $10,000
(ah well, at least I didn’t lose my initial investment)
Ending Balance: $20,000
(hmm. . .it’s like déjà vu)
Ending Balance: $10,000
(can anyone say, “spinning my wheels”?)

Four years later you still have a $10,000 balance. But not once did the rate of return equal 25%. Here’s the percent change for each year: 100-50+100-50. So we add that up (100%) and then we divide that by four years to show our average rate of return is 25% for four years.

Wait! A 25% average rate of return is supposed to be a great thing, right?

Follow the cash in the example above—did the cash increase? The numbers above show one scenario with a 25% average rate of return and ending up with exactly the same money you started with.investor hiding from reality

However, 25% annual compound interest is a great thing. Take a look:

Year One: $10,000 becomes $12,500 at 25% compound interest.
Year Two: $12,500 becomes $15,625
Year Three: $15,625 becomes $19,531.25
Year Four: $19,531.25 becomes $24,414.06

Were you like me and confused about the two definitions? It’s very common to confuse them AND to assume that the average rate of return is a linear type of activity, one year after the next being the same. Average rate of return and compound interest are not the same.”

(For the record, you’ll find no smoke and mirrors when you see the bottom line numbers and results you could get when you add Bank On Yourself to your financial plan.)

Now for the list of our six contest winners…

There were so many insightful answers that it was hard to pick out only six winners. (All are being notified by email.)

The best entry, picked by our Bank On Yourself team, is Doc Youngblood, who wins a $100 Amazon Gift Card! (Doc – I guess you can tell your wife she was right!)

And the two runners up, who’ll get their choice of a $25 Dining Gift Certificate or a personally autographed copy of my best-selling book, Bank On Yourself: The Life Changing Secret to Growing and Protecting Your Financial Future, are:

1. Eric

2. Raymond Trembath

k on Yourself Test Your Money and Investment IQ contest winners and their prizesThere were also three winners who got at least one question right, who were randomly chosen to win prizes. The winner of the second $100 Amazon Gift Card is Robert N.

And the two randomly chosen winners who’ll get their choice of a $25 Dining Gift Certificate or a personally autographed copy of my book are:

1. Carl Schoner

2. Rita

Thanks to everyone who participated in this blog contest. You are all winners for thinking – and seeing – through the conventional wisdom about money and finances that has cost so many people so much in lost money, lost time and broken dreams.

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.

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Sure-Fire Results: How Old Sensibilities Are Proving a Potent Balm for Modern Personal Finance Ailments

The ’10/10/10′ Formula of Savings Rescues Many Overstretched Family Budgets

Executive Summary: Most modern Americans overspend, assume too much debt, and fail to invest wisely for retirement.  Tim Austin, a leading proponent of ‘old-fashioned’ spending and savings strategies, recommends a time-tested 10/10/10 financial formula: saving 10% of gross income for the near-term; 10% for the mid-term; and setting aside 10% for the long-term.  Austin’s favorite savings tool is specially-designed dividend-paying whole life insurance policies such as those structured by Bank On Yourself’s specially trained and authorized advisors.

Love_and_death.jpg‎ (233 × 358 pixels, file size: 34 KB, MIME type: image/jpeg)

By Pamela Yellen and Dean Rotbart

Even back in 1975, the year comedian Woody Allen wrote, directed and starred in the movie Love and Death, the perception of whole life insurance as a savings instrument designed for fuddy-duddies and masochists was already commonplace.

There are some things worse than death”

…deadpans the film’s protagonist, Boris Grushenko, played by Allen…

If you’ve ever spent an evening with an insurance salesman, I’m sure you know what I mean”

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When opportunity knocks, will you be ready?

In every economy – whether boom or bust – opportunities arise.  Unfortunately, most people don’t have the financial resources to take advantage of them.

This is an inspiring story of how people are using the Bank On Yourself method to be in a position to take advantage of some amazing opportunities…

Here’s a new reality: You need cash now more than ever. Not credit. Not equity. Cash.”

- “Why Cash is King,” Men’s Health, November, 2010 issue

joni-schulz-and-dave

"Bank On Yourselfers" Joni and Dave Schultz

Take Joni and Dave Schultz, who just happen to be my sister- and brother-in-law.  Joni is a hospital department supervisor and Dave just retired from his job in construction.

They came to visit us recently, and Joni’s first comment when she walked in the door was, “Now I get it!  I understand why Bank On Yourself is so much better than using a credit card or finance company, and why it’s even better than paying cash for stuff!

Joni and Dave started a Bank On Yourself policy about five years ago, in order to supplement their retirement income and add predictability to their financial plan.

But they’d never used it to finance any purchases… until now.

Opportunity knocks…

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Small Business Owners Turn to Whole Life Insurance and Other Alternative Financing Options to Overcome Tight Credit

Now is the Best Time to Prepare for the Next Economic Downturn

By Pamela Yellen and Dean Rotbart

Executive Summary: Among the best non-conventional or alternative financing options for small businesses are loans taken against the owners’ or business’s whole life insurance policies.  Correctly structured, policies such as those that conform with the Bank On Yourself strategy, are tax-advantaged and readily accessible sources of the cash that every small business owner requires to survive harsh economic times.

DENVER – Small business owner Terry Hauschulz recently needed a $15,000 loan so that he could pay the tab on his October 15th federal tax return.

Clients of Hauschulz’s 10-year-old medical equipment repair business have been dallying when it comes to paying him.  “Great receivables, no cash,” Hauschulz laments.

The 55-year-old proprietor mulled asking his commercial bank to help tide him over.  “You know what that would be,” he says of the iffy and laborious process of winning a loan approval these days even for those borrowers with good credit.

rejected creditInstead, Hauschulz, like tens of thousands of other self-reliant entrepreneurs, professionals and small business operators, looked to non-conventional finance options.

The solution he selected – borrowing against his individual whole life insurance plan – allowed him to promptly receive the necessary funds without a credit check, without having to submit financial statements, without needing the approval of a loan committee and without any bureaucratic hassles.

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