Because of this, most baby boomers have been forced to postpone retirement an average of five years.¹

I’m often asked how using the Bank On Yourself method to save for retirement compares to traditional plans, so I put together this short video that reveals seven reasons Bank On Yourself makes an excellent retirement plan alternative.

Click the play button in the video below and see how many of these seven advantages you’d like to have in your financial plan…

1.  Bankers Life and Casualty Center for a Secure Retirement, May 2011

Many readers of this blog have asked to see more specific examples showing how much guaranteed and predictable income you could have in retirement, using the Bank On Yourself method. So I’ve included a fascinating example on this video.

If you have the feeling your financial plan has been treading water (or going backwards) for far too long, you’ll want to be sure to watch this video now. It’s got some pretty cool animation in it, too!

Enter below to win these prizes!

You could win an iPod Touch, $100 Amazon.com gift certificate, a $25 dining Certificate and more!

In case you missed last week’s contest, I had posted a podcast discussing some of the internet forums where people anonymously debate the merits of Bank On Yourself and discuss whether or not it’s a scam.

On one of those threads that comes up very high in the search results, one of my toughest, potty-mouthed critics has slowly come around and admitted I’m right about many of the points I’ve been making.

When challenged by another poster about the actual returns people get in the stock market, he dragged out 29 years of records of his own investing accounts, and was shocked to discover what his returns had actually been.

The contest was simple to enter – just listen to the podcast where I revealed what my critic discovered was his actual annual rate of return BEFORE accounting for inflation and taxes… and then tell us what the percentage was.

Since the contest has ended, I can reveal the answer now.  My critic averaged a 4.5% annual return over the past nearly three decades of investing in the stock market.

That’s BEFORE accounting for inflation, which averaged more than 3% per year, bringing his real return down closer to 1% per year.

And since much of his investing has been in tax-deferred accounts, he has yet to pay taxes on that money.  Of course, he doesn’t know what the tax rates will be during his retirement, when he’s taking income from those accounts.

But what direction do you think tax rates will be going over the long term?  (If you said “down,” I’ve got a Rolex watch I’ll sell you for $20.)

When you account for inflation and taxes, the question that ought to hit you over the head is…

Was it worth it?!?

Was it worth all the roller-coaster ups and downs and the sleepless nights to get 4.5% per year before taxes and inflation?

As I pointed out in the podcast, Bank On Yourself can beat that with a stick.   And without the risk or volatility of traditional investments.

My critic’s experience wasn’t unique, although I’ll commend him for actually looking at his statements and then being willing to admit publicly – if anonymously – his disappointing results.

One subscriber to the Bank On Yourself blog made a similar discovery and posted this comment on last week’s blog:

Wow. I had the exact same experience when investigating Bank On Yourself before starting my own plans (have multiple policies and am LOVING the results – exactly as predicted or better, no surprises and I sleep well at night). I made the same Google search and spent hours poring over the posts. What struck me was that nobody ever presented any evidence of any kind of scam. Some folks disagreed with the assumptions or touted their wildly inaccurate assumptions about equities as a more attractive alternative, but never did anyone have anything remotely scam-ish to report.”

This comment came from Dan Proskauer, a very analytical man who has spent literally hundreds of hours researching Bank On Yourself, running spreadsheets and crunching the numbers.

He says the Bank On Yourself method looks better the more he studies it.  Dan revealed the conclusions of his research in an interview I did with him last year.  I’d encourage you to read or listen to it.

And this concise comment made last week by a subscriber named John really summed up what a lot of people are (finally) figuring out…

I LOVE my Bank On Yourself plan, it does everything I was promised and more. I’ve not borrowed a penny from a bank or credit card in over a year. Why should I? I lend it to myself! And if you want a scam, I have two words for you … Wall Street”

Now for the details of our NEW contest…

A comment was made on the same thread that debates the merits of Bank On Yourself that it essentially works the same as a savings account, but with the added advantage of having a death benefit.  This statement really got me thinking.

While there certainly are some ways in which Bank On Yourself-type policies function like a savings account, I can think of a lot of major, critical differences.

But rather than me telling you what those differences are, I’d rather hear what you believe they are.  And some of our subscribers are a whole bunch smarter than I am.

So, I’m holding another contest, and our team will pick the five best answers and award a top prize of an iPod Touch (a $229.00 value), a second prize of a $100 Amazon.com gift certificate, and three runner-up prizes that will give you a choice of a $25 dining gift certificate or a personally autographed copy of my best-selling book for you or to give to someone you care about.

Just answer the following question in the comments box below no later than midnight, Monday, October 3:

The contest question is:  How is dividend-paying whole life insurance different from a savings account (besides the death benefit)?

You can address one or more differences, or comment on someone else’s response to qualify.

And if you think I’m “full of it,” feel free to tell us that, too.  (Some of our subscribers don’t seem to need any encouragement to do that…)

We’ll circle back here next week to report on the contest results and winners.

To qualify, just type in your response in the comments box at the end of this post no later than midnight, Monday, October 3rd.  Please note that all comments are moderated, so there will be some delay before it appears.  (Sorry – open to U.S. residents only.)

And now for the winners of last week’s contest.  As I mentioned, we received hundreds of entries with the correct answer by both email and via the blog comments.  These five randomly chosen winners have all been notified by email:

$100 Amazon.com gift certificate – Sheri Browning

The four winners of the $25 dining gift certificate or autographed book – Jeannie Fisher, Kevin Caldwell, Lynne, and Rich Rhoads

Okay!  Scroll down to the comments box and enter the contest…

One such thread that comes up high in the search results has nearly 200 posts spanning the last year and a  half.

On this lively audio podcast, Bank On Yourself founder Pamela Yellen discusses how her toughest anonymous critic on that thread has slowly been coming around.

He now (grudgingly) admits that Pamela is right about many of the points he has been contesting.  And, when challenged by another poster about the actual returns people get in the stock market, he even dragged out 29 years of records of his own investing accounts, only to conclude that he is “just an average investor.”

To listen to this fast-paced, surprising interview, click on the play button below, or you can download the recording as an mp3 and listen to it on your own player or iPod now at:

Near the end of this 15-minute interview, you’ll also discover a fast and simple experiment you can try to determine if Bank On Yourself really is a scam… or if it’s the ultimate financial security blanket in both good times and bad.

We really want to hear your comments and feedback!  Tell us what you think in the comments box below.  Please note that any comments containing the answer to the question of what was Pamela’s critics rate of return will be posted after September 24th, so as not to give away the answer…

For so many people, that principle seems unrealistic, especially considering how very hard it is most months just to stay afloat – paying for necessities such as groceries, medicines, utilities, transportation, insurance and the like.  Oh yes, let’s not forget the always hungry tax monster!

Seems to so many of us that our paychecks are swallowed whole by our obligations before we ever get the chance to even sample the flavor of having some accumulated cash in our pockets and bank accounts.

To which we can only respond… how wonderful!

Wonderful? Really? Paying Bills! And Taxes?”

Absolutely.

If you haven’t done so already, it is time to come to view your monthly financial obligations in a fresh, new light.

In fact, it will prove most helpful if you consider your recurring expenses with two questions in mind:

1. What benefits do I actually receive in return for my monthly outlays?

2. What is my return on investment for the dollars spent?

Let’s begin by examining the second question first.

What would you guess is the better long-term investment?

Your monthly grocery bill or your monthly contribution to a 401(k) or other retirement plan?

Most people don’t view their grocery bill as an investment, so they automatically assume the answer is a long-term savings or investment fund.

But the correct answer is – in fact – a matter of perspective.

The money you contribute to a 401(k) or similar plan is locked in place for many years, even decades.  What you have to show for it are some numbers on a monthly or quarterly portfolio statement that might give you a sense – often undeserved – of financial security.

You really can’t enjoy the money in the present or the near future.  Moreover, funds in a 401(k) are subject to market fluctuations, management fees, inflation and eventually taxes.   For tens of millions of Americans, when those numbers on their fund statements implode, as they did during the market dive in 2008-2009 (and many times prior to that), then their retirement investments not only fail to bring them pleasure or satisfaction, but actually cause great pain and anguish.

Strictly in terms of numbers, 401(k) plans hardly stack up to the value we all receive from our monthly grocery expenditures.

Here’s our thinking…

For every $1,000 you place in a 401(k) or similar plan – not factoring in a matching contribution from your employer* – you can expect to earn a reasonable return that might over the long term average 4% to 7% a year (far above what you are likely earning now).

In essence, you tie up all of your principal for a full year, at the end of which you have earned perhaps $40 to $70 in return for allowing some financial institution to utilize your money for 12 months.

Go ahead and tie up the same original $1,000 for a second full year, at the end of which you will have – roughly – between $81.06 and $144.90 in income on paper, before subtracting fees, taxes, and any decrease in purchasing power due to inflation.

And this assumes your investment portfolio actually grows – which is a generous assumption given how often retirement plans actually bleed money.

Stick to the plan, as do most wage earners, and your $1,000 may sit in a retirement account for 20 years (or more).  After two whole decades of confinement, your original $1,000 deposit would generate between $1,191.12 and $2,869.68 in growth (before you deduct fees, taxes, and inflation.)

That is 20 years that some financial institution – but not you– reaps the benefits of YOUR money.

Now let’s compare that with your monthly grocery bill…

The United States Department of Agriculture each year estimates the monthly costs of food at home for an average family of four.  The USDA’s calculation for 2011 runs between $663.60 for a low-cost meal plan to $1,184.50 for a liberal plan.

Let’s call it $1,000 and see how those groceries stack up as an “investment” against laying away the same $1,000 in a retirement plan.

At the end of the first month, assuming you consume all of the food you’ve purchased, you have zero left to show for your money (or at least that is the faulty perception many people hold).

That said, you owe no taxes on the $1,000 in groceries (other than the sales tax already included in the tab).  There are no management fees.  And there is zero chance the supermarket will come to you and ask for more money, even if the groceries you purchased subsequently rise in price.  (Translation: No supermarket “crash” will ever cause you anxiety and the loss of principal.)

One thousand dollars in groceries buys you goods worth a full thousand dollars in value regardless of any Wall Street misbehavior or greed.

It’s when you step back and ask yourself what the groceries, in turn, enable, that you realize their true investment value.

Given that you and your family can’t very well fast for a month, the groceries you purchase are the core fuel of your family’s income-generating and lifestyle machine.  If you bring home $65,000 a year in total household income, then the $1,000 you spend in monthly groceries is a vital cog in generating the $5,417 ($65k divided by 12 months) you earn in return for your labors.

Your $1,000 monthly grocery outlay produces a fabulous return – in just 30 days – actually dwarfing the 20-year yield you might receive placing the food money in a retirement plan.

Grocery bills… when viewed in the context of what they make possible, can be truly loveable.”

The same frame of reference should be applied to housing costs, gas and electricity, transportation, medical bills, etc.

Once you cast your financial obligations in the correct light, paying those monthly bills will take on a whole new positive meaning.

Dollar for dollar, these expenses, rather than being the economic balls and chains that most Americans label them, actually return some of the best values in the investment universe.

Once you cast your financial obligations in the correct light, paying those monthly bills will take on a whole new positive meaning.

Now let’s return to the first question we raised above: What benefits do you actually receive in return for your monthly outlays?

As Americans, we are blessed with an abundance that has no historic or even present-day equal.  As citizens, who pass much of our lives pursuing even better lifestyles, we often fail to pause and conduct a full and candid inventory of the uncountable blessings we already receive.

Reflect upon your present blessings, of which every man has plenty; not on your past misfortunes of which all men have some.”
~Charles Dickens

The true secret to enjoying our bills and applauding our taxes is to appreciate what they buy for us. Most people throughout history – and far too many people living elsewhere today – would consider themselves life’s lottery winners if only they could “suffer” our hardships.

Here are the sober facts of life…

There is no right to housing, much less a safe home that is equipped with clean, running water; electricity, and heat.  Phones, cars and household appliances are not mandatory, nor are computers, paid television services and the Internet essentials.

Yes, health care is expensive and getting more so all the time, especially emergency care and medication for chronic illnesses.

But really, have you got a better use for your money than staying alive? It hardly matters how much you’ve squirreled away for retirement if you are long dead before you ever reach your golden years.

And what about taxes?  How do we ever adopt a mindset that allows us to applaud them?

Simple.

Freedom, in the form of national defense, isn’t free.  Nor is crime fighting, fire fighting, road construction and maintenance, schooling, and a million and one other services and benefits provided to us by local, county, state and federal governments.

Are most politicians wasteful?  You bet.  Could they be better stewards of our public funds.  Duh!  Need you really ask?

We dislike and rail against wasteful spending that means higher taxes and less money in our own pockets.  And all of us can point to dozens of government programs that never benefit us and aren’t worthy of anyone’s tax dollars.

But the exceptions do not disprove the rule.

When we pay our taxes, we are rewarding ourselves and future generations with the greatest investment ever offered to mankind – shares in America and the American Dream

As a rule, there is no finer government, and has never been a better political system, than that enjoyed by the current citizens and residents of the United States.

When we pay our taxes, we are rewarding ourselves and future generations with the greatest investment ever offered to mankind – shares in America and the American Dream.

Those shares pay and have paid huge uninterrupted dividends for more than 235 years, without which our lives could never be as satisfying or great.

* We consider the employer match on your 401(k) as part of your salary – not an investment return.  If you put in $1,000 a month and your employer puts in $30 a month, really you’ve put in $1,030 a month.  Your return on that total remains somewhere between 4% and 7% annually on average.

After much deliberation, five members of the Bank On Yourself team each picked their favorite entry – each of these winners will receive their choice of a $25 dining gift certificate or a personally autographed copy of my best-selling book, Bank On Yourself, for themselves or to give as a gift to someone they care about.

And together, the team picked their favorite entry and that person won a $100 American Express Gift Certificate.  (All winners will soon be receiving an email letting them know how to claim their prizes.)

Read on to be inspired by the winning entries…

Karen, who designs all of our blog posts, chose Sidney Bostian’s entry as her favorite, because, “it strikes a personal chord for me and it’s short, sweet and inspirational”:

I save for three reasons: 1) To build financial resources to make myself and my family to be independent with respect to future life choices, 2) To empower myself and my family members to work for the ‘joy of working’, not just to pay bills, and 3) To create resources for charitable activities which would be equal to my charitable impulses.”

Lynn, who heads up the Bank On Yourself Customer Service team, found it “really tough” to pick her favorite, “because there were so many good, genuine expressions in the entries.” But she chose Tom Barry’s comment, “because it sounds like he has such a good heart and is on a mission to help as many people as he can”…

I have children – 2 girls and 2 boys.  They are my life – my inspiration! I also have a deep desire to help children, whether they be sick or homeless or in unhealthy and unloving families, and I have a strong desire to help parents that have been affected by the economy that has caused them to be unable to care for their loved ones. It’s a tall order, and there are many of those that I speak of in this situation, so I pray that the Lord blesses me with the ability to help these people… not just my own but all of God’s children, young and old. Finding a way to grow assets to the extent that I could help as many as possible would make me feel that I have fulfilled God’s purpose for me in this life.”

Brian’s entry was Drew’s favorite (Drew is part of our public relations team).  Brian’s philosophy to be lenders, not borrowers, inspired Drew:

I am determined to provide a solid financial future for my wife and kids. Currently my wife is a stay at home mom and I need to make sure that we show a positive example to other young families. Our family motto is ‘we shall be lenders and not borrowers’ and Bank On Yourself lends itself directly to this motto.”

My exceptionally talented publicist, Michelle, chose Dory’s entry because, “it captures what I feel about savings and it follows the ‘KISS’ theory (Keep It Simple, Stupid), which is what Bank On Yourself is all about.”

What inspires me to save is personal FREEDOM. To have or do what I want, when I want, with whom I want.”

Shannon, who heads up our Social Media team, chose Ryan Dunn’s entry because “it’s the classic ‘would’ve, should’ve, could’ve’ story of opportunities lost – but it’s touching and we’ve all been there”…

“Ever since I was a little boy, my grandpa – who was product of the Great Depression – told me that I should give. ‘Ryan,’ he would tell me, ‘to be successful you need to give 10% to the Lord and 10% to yourself. If you do that all your life, you will be safe and successful in all that you do.’ I have thought a lot about his advice, especially as I have grown older. It made sense to be ready for ‘rainy days’ – and even in my limited experience, those I have weathered in comfortable form, largely because of my ‘banks’.

One day, I met a single gal at the other end of life’s experience from me and my then 22-year-old self. She told me I was wise for working hard and to get myself established while I was young.  She also shared with me a story that ever echoes in my ears, because it ‘dangles’ one of those proverbial ‘carrots’ as to why I set my dollar’s dime aside. She told me how one day when she was young, like me, a salesman had come knocking door to door – much like I had that day.  He was selling stock ownership in a local company and wanted to know if she wanted to participate by giving him $5,000. Well in the 30’s & 40′s, that was a considerable amount of money – and something she did not have available to tender, so she had to pass on the opportunity.  She said, ‘That company was Portland Gas and Electric, and had I given him the $5,000, I would never have wanted for money again.’ But, she hadn’t saved the $5,000, so it wasn’t even an option to begin with.

Savings aren’t just for tight times like grandpa passed through in the depression – they aren’t just for some future retirement plan. They are also for opportunities and possibilities – but those possibilities are only available if there are savings to tender when opportunities ‘knock.’  Come rain or shine, I know that one or the other (or both) will meet me at the front door each day, and I am ready to take advantage of whatever the situation because I give that 10% (and oft times more) to myself that grandpa taught me I ought to, so that I might be safe and successful.”

David – promise us you’ll send us pictures from your wedding in a year… and enjoy your $100 American Express Gift Certificate!

And here’s a runner-up entry…

I really like Craig Yenni’s entry, because it has some important messages, so I’m also giving Craig his choice of an autographed book or $25 dining gift certificate from his very thoughtful post:

“Over the course of the last few years, I have reprogrammed my financial mind. The old programming told me to work hard, fund my traditional investments (401k, stocks, and mutual funds) and buy some term insurance. If I could stomach the ups and downs of the market, I would one day be set and have financial security in my retirement years.

This approach was indeed building wealth in a fantastic way!  Unfortunately, I wasn’t building wealth for my family, but for the stock brokers, mutual fund managers and the tax man. Sadly, they didn’t even send me a birthday card on my birthday.

I realized after seeing failure after failure with this approach, there must be a better way. I started researching, digging, and talking to various people to find this better way. A few years ago, I came across the Bank On Yourself approach and found it to be the most compelling way to achieve what I was after. During all of this research, the reprogramming was well underway.

As part of the reprogramming of my financial mind, I started to separate the concepts of savings and investment. It seems to me, most people are turned up side down with investing before saving. If you don’t have savings, I don’t believe you should be investing. Savings first, then investing is my approach. It is critical that my savings remain predictable and safe. The investments on the other hand are more risky and if it is lost, my plan still works in the end. Savings are the foundation of my financial health and if my investments do well, then it’s icing on the top.

Savings to me is the concept of building capital that I can use to fund college, generate a passive income, borrow for major purchases, and then easily pass on wealth to my family. I not only wish to pass on money to my family but true wealth consisting of the peace and security that comes with saving in a Bank On Yourself policy.

I’ve played the Cashflow game (Robert Kiyosaki – author of Rich Dad, Poor Dad) with my children. The way to win the game is to have a passive income that exceeds your liabilities. Although this is just a game, I am playing it in real life and Bank On Yourself is a huge part of how I will win. By funding my two Bank On Yourself policies, I’m building capital. That capital will one day generate a passive income for me to use when I determine the time is right. Along the way, I can use that capital to fund the major purchases of life. As I’m using the capital, it keeps working in my account unlike taking it out of a traditional bank account or mutual fund.

My new financial mind is programmed to work hard to generate an income, save, share and then invest.”

After reading the winning entries, I’m sure you can see why it was so hard to pick the winners from so many deserving entries.

We encourage you to read them all for inspiration!  And thank you to every one who shared their personal story!

Dr. Bryan Kuns

A family and occupational medicine practitioner for 25 years, the doctor realized that, at age 50, he and his wife might only have one more chance to get it right.  “I need some more guarantees than taking a chance and gambling again with my retirement,” Bryan realized.

A little over one year ago, he heard about Bank On Yourself.  Intrigued, he began reading everything he could get his hands on about the concept.  Then he requested a referral to a Bank On Yourself Authorized Advisor and a Free Analysis.

It’s an answered prayer.  I’m sleeping a lot better at night, now.  The guarantees that this program has are what I was looking for.” –Dr. Bryan Kuns

Bryan offered to share his story with you.  Whether you already use Bank On Yourself, or you’ve been considering adding it to your financial plan, you’ll learn something of value from this interview.  You can listen to the interview by pressing the play button below, or you can download the entire interview as an Mp3 and listen on your own player or iPod…

You can also download a transcript of the interview here.

In this interview, you’ll discover…

• Why Bryan felt that that the financial advisors he’d been working with were more concerned with their retirement plan than his

• What Bryan learned about good debt versus bad debt… and why paying cash for things isn’t the best answer
• How Bryan is using his policies to become his own source of financing for his personal needs, as well as for his practice – and why he won’t miss filling out those nosy, lengthy loan applications
• How Bryan is using his policies to become his own source of financing for his personal needs, as well as for his practice – and why he won’t miss filling out those nosy, lengthy loan applications
• Why the guaranteed and exponential growth of the death benefit gives you peace of mind knowing your loved ones will be taken care of if you pass away before fully funding your policy
• The value of leaving a legacy for your family that ensures financial security for generations to come
• Why the asset protection provided by life insurance was an added incentive for Bryan
• How Bryan introduced this concept to his daughter… and why he feels it’s important to teach children how to fish for a lifetime
• The difference between a financial plan based on hope and one based on guarantees

You can listen to the interview by pressing the play button below, or you can download the entire interview as an MP3 and listen on your own player or iPod…

You can also download a transcript of the interview here.

If you haven’t started to Bank On Yourself yet, it’s free and there’s no-obligation to request an Analysis and find out what your bottom line numbers and results could be if you added Bank On Yourself to your financial plan.

When you request your Analysis, you’ll also get a referral to one of only 200 financial advisors in the country who have taken the rigorous training and meet the requirements to be a Bank On Yourself Authorized Advisor, like the one Bryan is working with.

I only have one chance at having a really, really good retirement, and because of this whole concept and program, I am now very excited about retirement and the future and my children’s lives and future.” – Dr. Bryan Kuns

Request your free Analysis now, so you can have the peace of mind that comes with knowing your financial future will be one you can predict and count on!

Since AAII said they would not publish my response or correction of the misinformation contained in their review, I told them I would publish it here and let YOU be the judge of whether AAII was twisting and omitting things… or being fair and unbiased.

The response was swift, surprising and universal.  There were so many insightful comments made that I couldn’t pick only three to award prizes to, as was my original plan.

So I picked ten (the winners are listed at the end of this post – check to see if your comment was one that was chosen).  And I’ve excerpted from a number of the comments here, so I can share some of the highlights with you.

Jeffrey summarized the thinking of many commenters about AAII this way:

AAII naturally committed the typical strategic blunders essential to the charade proposed by the investment industry (Wall Street) and financial professionals (a.k.a. traders, gamblers, speculators, etc.). Any attempt to allow people an opportunity to truly grow wealth, reduce risk, and prepare for a more stable environment challenges the status quo of buy and lose (commonly referred to as buy and hold) and then industry pundits (AAII) start the negative attacks in order to establish fear of finances and preserve their base of profits. AAII omitted important aspects of your plan, distorted facts of your plan to promote obfuscation, and blatantly twisted all aspects of your plan in order to destroy your credibility.

Thank you for presenting people with an opportunity to actually prepare, plan, and realize a better financial picture.”

Reuben echoed that by saying…

Is anyone really surprised, it’s the fox guarding the chicken house, the blind leading the blind, the king has no clothes.”

And Daniel summed it up in one sentence…

Bank on Wall Street or Bank on yourself…a very simple decision.”

One thing we know for sure about life is that it’s unpredictable – stuff happens

The only actual reason or “excuse” given in the AAII review for why Bank On Yourself is “too good to be true”  had to do with policy loans.  But the ability to take loans from your life insurance policy has proven to be a real boon, and sometimes a life saver, for several commenters…

James wrote about how his wife Verna broke her wrist a few months ago.  Even though they had only been participating in Bank On Yourself for less than a year, they were “able to borrow enough to get us through surgery, the therapy, and all the physicals that were needed to allow my wife to get back to work.”

Deana says her Bank On Yourself policy “saved me a lot of hassle, frustration and money when I needed a loan to replace a transmission on my car, pay off medical bills, purchase a much needed storage shed and buy a used car.” It also helped her after her income from work was reduced.

“Unlike a bank loan, I set up my own payment schedule and set up how much I can afford to pay back every month and when I want to pay it back,” wrote Deana, who notes she did a lot of research into the concept before moving forward.  Now she says, “as with many other people (Bank On Yourself) is the best money investment I have ever made in my life.”

Troy says “Bank On Yourself is a life saver” and “we use our policy to buy every thing from our boats to repairs for our rentals – it’s a great way to borrow money when needed, pay it back, borrow it again, and watch the cash value continue to grow.” He ends by saying, “Keep up the fight, Pam, and thank you for educating all of us.”

Rik just started his Bank On Yourself policy six months ago, but “just took a loan out for $29,000 for a down payment on a new condo.  Compare that with the hassle of taking money out of a 401k.”

Bank On Yourself saves businesses, too

Allen wrote, “I, too, used my policy to expand my business in the last few months when no banks were (and still aren’t) lending money and have had similar results with my return on investment.”

And David Brimhall started a policy in 2004, “after losing 80% of my retirement account.” His money is now doing double duty for him and he has taken 9 loans, investing some of those funds.  As a result, “I have real retirement now,” and investments making money for him.

As I noted in my rebuttal to AAII, you do not have to sell assets to use your equity in a Bank On Yourself policy to invest it elsewhere or to make purchases.  And some companies will even pay you the exact same guaranteed cash value increase and dividend as though you hadn’t borrowed a dime.

This is true for “non-direct recognition” policies, which don’t “recognize” you have taken a loan when crediting dividends.  The policies recommended by the Bank On Yourself Authorized Advisors meet the requirements that maximize the power of the concept.  These advisors also have advanced training in how to structure policies to maximize the growth of your cash value and minimize the taxes.  To get a referral to an Authorized Advisor, simply request a free Analysis that will show you how much your financial picture could improve if you added Bank On Yourself to your financial plan.

And Will posed the question…

How can you tell the difference between a Bank On Yourself user and an ordinary person?  The BOY user can buy a business with the BOY policy loan, and the non-Bank On Yourselfer can work for that business.”

Bank On Yourself lets you have a retirement income you can predict and count on

“Ahhhh – let AAII say what they may… but I know what my retirement will look like… I cannot wait to start another policy.  Keep up the great work, Pam,” wrote David.

“My hard-earned dollars have always lost money with any commodity/stock/bond type investment.  I have never had a gain except with a CD and that barely kept up with inflation,” noted Ang. “My Bank On Yourself policy gives me such security.  I can sleep at night.  It reminds me of  (the movie) ‘It’s a Wonderful Life’ – we are all banking on each other (instead of padding corporate executives’ lifestyles).”

I am thankful I found Bank On Yourself, otherwise, I may never see retirement in my future,” wrote Karen, who is starting her first policy now, at the age of 59. “Yes, I have a financial advisor and am a very disciplined investor in my 403(b) and, yes, I rode out the downturns and have not nearly recovered to this point… If I had known about this even 10 years ago, I might be looking at retirement, instead of working an additional 8-10 years.”

And William bemoaned how he lost 30% in his 401(k) between 1999 and 2001, and then another 40% in 2008 – after he had retired, because “I followed the advice of those who are paid to know and each time ‘rode it out.’ I do not want to go through any more of these ‘cycles.’”

Paul made some excellent points with this comment:

How easily people forget the lessons of history.  Our ancestors survived the Great Depression by using Cash Value Life Insurance and fixed annuities.  They didn’t use the investment vehicles touted by so many.  They relied on… the asset class so often overlooked today when all else is in flux.”

Paul also made a point I hadn’t even thought of when I wrote my AAII rebuttal – that…

Other loans must be repaid with taxable and probatable cash from elsewhere in the estate.  Death doesn’t cancel (other) debt.”

One of my favorite comments was this tongue-in-cheek response from Jim Vana…

WOW! After reading all the glowing posts about the Bank On Yourself system, I’m afraid I may have a different viewpoint. I set up plans for me and my wife and we recently received our first annual reports. But I hate to inform you, it’s no dang different!! Yes the policy loans need to be paid back. Yes interest is paid as well. And just like those typical “FAT CAT” bankers, my B.O.Y. banker is using MY MONEY to buy fancy cars, take exotic vacations and do all the other fun stuff at MY EXPENSE.  And he’s probably socking away tons of MY MONEY for HIS RETIREMENT!!!!!!! Oh wait a minute. THAT’S ME!!!!!!!! Never mind.

As for AAII, GO GET EM, TIGER!!!”

And Steve summed up the beauty and simplicity of Bank On Yourself this way: ”My Bank On Yourself plan consolidates my emergency fund, liquid savings, retirement and life insurance into a single flexible vehicle. This makes it really easy to manage my money!”

AAII gets poor marks from former members

“I joined AAII a few years back because their publicity made it sound simple and profitable.  But when I got their newsletters with investment recommendations, they left me in a fog,” wrote Val.  Park echoed that with, “I subscribed to AAII several years ago, but my eyes always glazed over trying to submerse myself into their data.”

I will confess that I delighted in JC’s comment: “I’m glad you revealed this about AAII – I had a membership application sitting on our table, and was intending to join. Due to the ‘contrarian indicator’ effect of AAII’s member surveys mentioned, and to the closed-mindedness of the organization to even print your response and let its members decide, I have decided AAII is not for me.”

I believe they call that “pay back”!

Steve may have summed it up best with this insight:

The AAII comments sound like they were drawn from the good ole’ boy tank of sour grapes.  I’m excited about Bank On Yourself, which has provided a much needed transition to a vehicle that is safe, predictable and provides not only a solid nest-egg for retirement, but also a funding pool over which I have complete control. I’ve seen nothing else that allows you to have your cake and eat it too.”

Now for the list of prize winners…

As I mentioned, there were so many thoughtful and entertaining comments to my AAII rebuttal blog post that I simply couldn’t narrow it down to just three winners. So, I decided to award 10 commenters their choice of a $25 dining gift certificate or a personally autographed copy of my best-selling book.  Those 10 winners are listed below and if your name is on the list, you should already have received an email asking you which prize you prefer.

And I want to thank everyone who commented from the bottom of my heart for your support.  I will keep fighting the good fight with your help!

We want to hear from you, too!  Just enter your comment in the box below…

When do you think the Dow will go to 27,000?

Does that seem like a crazy or dumb question?

It’s not.  In fact, it may hold the key to your financial future.

Here’s why…

The Dow has recently been flirting with the 11,500 level, and many people are becoming hopeful that the worst is over and that maybe they’re right when they say that if you just hold on for the long term, you’ll come out ahead.

But did you know that the Dow first closed above 11,000 on May 3, 1999! And since then inflation has taken nearly a 32% bite out of your money’s purchasing power.

Which means that just to get even with where you were 11-1/2 years ago, the Dow would have to jump to just over 14,500 – 3,000 points above where it is today!

What do you consider to be a minimum acceptable annual return on your money, for taking on the nerve-wracking risk and volatility of the stock market?

Five percent? Seven percent?  Maybe even 10 percent?

Let’s say you’d insist on a 5%-per-year return. That means the Dow would have to be at almost 27,000 right now – TODAY! – to give you just a 5% cumulative annual return, after adjusting for inflation!

What if your minimum acceptable return is 7% a year?  The shocking reality is that the Dow would have to be at almost 34,000 - NOW – to give you that.  See the numbers and proof for yourself.

And that takes us back to my first question…

How long do you think it will take the Dow to hit 27,000… or 34,000?”

There’s more bad news: I didn’t even take into account any investment or retirement account fees, or any taxes, all of which will take another huge bite out of your nest egg.

Can you see why relying on the stock market for your financial security and retirement is a losing battle?

And are you really willing to “bet the family farm” on it?

It’s a decision only you can make. But it helps to have the facts at hand to counter the endless babble and brainwashing that Wall Street and financial planners spew.

As a new year approaches, many people take stock of their situation and decide how they want their lives to improve.

If you’re determined to take back control of your financial future, and you haven’t already started to Bank On Yourself, I urge you to take the first step - not later, not “when the time is right,” but now.

You can request a free Analysis that will show you how you could have a nest egg that grows at a guaranteed and predictable rate, and that never has a losing decade – or even a losing day.

And if you’re one of the more than 400,000 Americans who already use this method, congratulations! You can give yourself another pat on the back for the courage and foresight to buck the conventional wisdom.

-$62,734.06. That’s the “unrealized” loss we’ve had in one of the mutual funds in our retirement account, according to the statement we just received.

A $62,734.06 unrealized loss.

I keep staring at the statement, hoping that number will somehow magically turn positive.  After all, we’ve had a nice run-up in the stock market recently, and that mutual fund has one of the best long-term track records of any fund.

What the heck is an unrealized loss, anyway?

I realize I’ve lost a whole bunch of money.  And I remember working my butt off to make that money!”

A $62,734 “unrealized loss.”  Is that an oxymoron, like “Great Depression,” “small fortune,” “accurate forecast” and “quickly reboot”?

I dunno if it qualifies as an oxymoron.  But I do know it’s moronic that we pin our hopes and plans for financial and retirement security on things we can’t predict or count on!

My husband Larry is 61 and theoretically four years away from retirement.  He probably won’t retire when he’s 65 because he says he’d get bored.  But if we were relying on the conventional wisdom about saving for retirement, it wouldn’t even be an option for him.

Did you know that 40% of retirees were forced to retire sooner than planned, due to health problems, job layoffs and other factors beyond their control?

Of course, none of us want to think that could happen to us… but what would you do if it did?

Another mutual fund in our retirement account shows an $8,012.16 “unrealized” gain.

And there lies the rub:  You don’t actually lock in a gain or loss until you sell an investment.

(November 22, 2011 Update:   Our most recent retirement account statement shows our “unrealized loss” is virtually unchanged since I wrote this blog post almost a year ago.  And looking at the Dow’s ups and downs over the past year makes a day on the roller coasters at Six Flags look tame.)

Unfortunately, studies and history show that most of us are far more successful at locking in our losses than our gains.

Can you tell me what your retirement account will be worth on the day you plan to tap into it?  (Not what you hope it will be.)  If your answer is “no,” how can you even call it a plan? And what will you do if the market plunges by 50% – again – right before you planned to retire?

Contrast that with Bank On Yourself.

Last year around this time, I showed you how one of my Bank On Yourself policies had grown from the beginning of 2000 through the end of 2008, a period that included not one, but TWO devastating market crashes.

I did a side-by-side comparison with the growth of the S&P 500 over the same period.

Now I can  give you an update for 2009 and 2010 on that comparison:

Bank On Yourself-type policies get better (more efficient) every single year, simply because they are engineered to do so!

The graph below shows the typical growth pattern in a Bank On Yourself-type policy.  It’s based on one of my policies and shows the growth I’ve had so far, along with the growth I would have if the dividends stay where they are today.  Right now, dividends – like interest rates – are at historic lows.  If they increase, the growth will be greater.  Keep in mind that dividends aren’t guaranteed, however, the companies preferred by the Bank On Yourself Authorized Advisors have paid dividends every single year for over 100 years.

So, will your policy growth look like the graph above?

If you’re referring to that growth curve that just keeps increasing every year at a steeper pace, the answer is “yes.”  Because, as I noted above, that’s how these policies are designed to grow.

If you’re wondering if your actual numbers will be similar to the ones in the examples of my policies above, the answer is no.  Because Bank On Yourself isn’t an off-the-shelf product.

Every policy is custom tailored to help you reach as many of your financial goals and dreams as possible, in the shortest time possible, given your situation today.  This process is illustrated in Chapters 3-6 of my best-selling book.

If you haven’t already started to Bank On Yourself, you can take the first step now by requesting a free, no-obligation Analysis.

Do you make New Year’s resolutions?

If one of your New Year’s resolutions is to get your financial house in order, you need to do more than just think about it and write it down.  You need to take action.

You need to lay the foundation down now that can ensure you never again suffer a “lost decade”… or even another lost year.

And when stocks, real estate and other investments continue on their endless roller-coaster ride, you can pull out your Bank On Yourself policy statements and sleep well knowing you have taken back control of your financial future.