Bank On Yourself: A financial plan you can count on
December 11, 2009 by Pamela Yellen · 24 Comments
Oh what a roller-coaster year this has been! Our entire financial system and economy almost fell off a cliff.
And while there are some hopeful signs of new life in the economy, this year has also brought us:
- Massive bailouts
- A tripling of an already-bloated federal deficit
- A falling dollar
- Rising foreclosures (and likely to spike as billions of dollars in ARM’s are now coming up for adjustment)
- Major banks and investment houses taking on three times (!) the risk they were before the collapse
So what do you think next year has in store for us?
No one really knows for sure. (Well, except maybe the folks at the Psychic Hotline.) So how do you prepare for a very uncertain future?
Here’s a quick quiz that may reveal an answer for you…
What’s the one financial asset that increased in value during the market crash of 2008? And in 1929? And in every period of economic boom and bust in between?
Answer: The product used for Bank On Yourself: Cash-value life insurance.
As I’ve mentioned, my husband Larry and I now have 18 Bank On Yourself policies. I’ve picked one of them to show you how a dividend-paying whole life policy like this can grow over time – even when the markets are plummeting. It’s a great example of how Bank On Yourself gives you the peace of mind that lets you sleep at night.
Here’s how much this plan has grown each year since the beginning of 2000, a period that includes not one, but TWO devastating market crashes. In four of these years, the S&P 500 was down for the year, as you can see in this side-by-side comparison:
If you had put $10,000 into an S&P 500 Index fund at the beginning of 2000, how much do you think it would be worth today?
Take a guess before you read on.
Video Overview: Bank On Yourself in a Nutshell
October 2, 2009 by Pamela Yellen · 116 Comments
We just completed a short, fast-paced video explaining what Bank On Yourself is and how it works, that I think you’ll find very helpful.
Click on the play button to discover…
- How Bank On Yourself grows your savings both predictably and guaranteed… even when stocks, real estate and other investments tumble
- How it can beat the pants off your best saving or investing method
- How the kind of policy used for Bank On Yourself is different from the ones Suze Orman, Dave Ramsey and 99.9% of all financial advisors talk about
- Why it’s an excellent alternative to traditional retirement plans
- How you can use it to get back what you pay for major purchases
- Where to find the money to get started
After you watch the video, I’d love to hear your thoughts and feedback – so please speak your mind below.
Think you have to risk your money to get big returns? Hogwash!
April 28, 2009 by Pamela Yellen · 1 Comment
According to a recent comment on this blog, I’m full of it. Apparently, the author thinks I 
pulled the following statement out of my butt: “The reality is that the typical mutual fund investor has actually been losing 1 percent per year over the last 20 years, after adjusting for inflation.”
The statistic comes from the respected research firm, Dalbar, Inc., in its 15th annual study of mutual fund investor behavior. The study measures the returns investors actually get, not the returns they wished they got.
According to Lou Harvey, the president of Dalbar, the study once again revealed that
“investor returns lag what performance reports and prospectuses would lead one to believe is achievable. While those returns are theoretically achievable, the reality is that investors are not rational, and make buy and sell decisions at the worst possible moments.”
Let me paint a picture of how this happens: Lets say you do what the author (who calls himself “David K.”) of the rather nasty blog comment suggests and buy “simple index funds” and hold them for twenty years.
Stock Market Investors: Are Ya feelin’ lucky?
March 3, 2009 by Pamela Yellen · Leave a Comment
The major stock market indexes have fallen to levels not seen for 12 years – since 1997.
Of course, inflation during that period has reduced the value of your dollars by at least 36%.
The reality is that most Americans have been digging themselves deeper into a financial hole every year, with no way of knowing how long it will take to crawl out.
How financially secure are you? Take the 3 question test…
February 17, 2009 by Pamela Yellen · Leave a Comment
I often get asked by subscribers if they should sell some of their investments and put those funds in a Bank On Yourself plan.
Of course, everyone’s situation is different, and I can’t make that call for you.
But I can suggest a few questions to ask yourself, that can help guide you to a decision:
How to stay safe and sane during the financial crisis…
February 8, 2009 by Pamela Yellen · Leave a Comment
How are folks who use Bank On Yourself faring today, during the greatest destruction of household wealth in history?
I just heard from the Wilder family, who told me how they “stayed sane” during the market crash:
“We have had Bank On Yourself plans for about three and a half years. They were what kept us sane during the stock market crash of 2008. Everything that was not in Bank On Yourself policies lost 32%,
but all of our Bank On Yourself policies grew. Our goal with it is to be free of all interest payments to lenders and to secure a retirement income stream we can count on. We have used the plans to purchase a new car and pay off our mortgage. It’s a pleasure to know our car cannot be repossessed and our home cannot be foreclosed on.”
Find out how people of all ages, incomes and backgrounds have taken back control of their financial future in my New York Times, Wall Street Journal, USA Today and Business Week best-selling book, Bank On Yourself: The Life-Changing Secret to Growing and Protecting Your Financial Future
Wall Street fails those planning to retire next year…
February 1, 2009 by Pamela Yellen · 2 Comments
Have you noticed that every day it seems we get a new reminder of just how badly Wall Street has failed us? One of the latest reminders is simply astonishing.
Do you know what a “Target Fund” is? This increasingly popular choice for 401(k) plans is a mutual fund billed as a one-stop solution for investors saving for retirement. You put your money in a single fund linked to the year in which you plan to retire, and the fund company does the rest.
The idea is that the company invests your nest-egg more conservatively every year, so that when you’re ready to retire, your money will be there for you.
So how well do you think that strategy worked last year, for investors who pinned their hopes on retiring next year? Read more
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