Watch the Video above to see proof of the return of Bank On Yourself (then click on the icon in the lower right to enlarge)
I’m pretty sure you’d wonder what I’ve been smoking!
But I’m going to prove to you how you would have to get a 9.94% return every year in a tax-deferred account like a 401(k) or IRA to equal the return of a Bank On Yourself Plan over the last half century.
Watch the Video above to see proof of the return of Bank On Yourself
To quickly recap, Bank On Yourself relies on a super-charged variation of an asset that has increased in value every single year for more than 160 years – dividend-paying whole life insurance. It’s never had a losing year – EVER – including during the Great Depression.
It’s not subject to the ups and downs of volatile investments like stocks, real estate, gold, currencies or commodities.
And while you’d think that would be enough of a reason to include it in your financial plan…
Wall Street has brainwashed us into believing we have to risk our money in order to get decent growth
I’ve often said that Bank On Yourself isn’t about the rate of return you get. It’s about the unbeatable combination of advantages it gives you, which include safety, predictability, guarantees, liquidity, control of your money, plus some juicy tax advantages. Download our FREE Special Report and a chapter of my latest New York Times best-selling book here to learn more.
As Will Rogers noted, “The return of your money is more important than the return on your money.” However, the long-term return of a properly structured dividend-paying Bank On Yourself-type policy is nothing to sneeze at.
To prove our point, we invited one of the Bank On Yourself Authorized Advisors to share a recent annual statement for a policy his father purchased in March of 1969 – a few months before the advisor was born.
Dad paid the annual premium of $1,054 out of his pocket for the first 19 years. After that, he let the policy “self-fund,” meaning he let the policy’s dividends pay the premiums.
That meant Dad paid in a total of just over $20,000, and the annual statement you’ll see in the video shows the cash value had grown to over $153,000.
The advisor then uses a calculator to demonstrate that the annual return on that policy to date was 6.19%. And Dad enjoyed it without the risk or volatility or sleepless nights of stocks, real estate and other traditional investments.
Now I know a lot of people who would happily bypass the heart-stopping roller-coaster ride of the Wall Street Casino for a return like that. You may even be in that camp yourself.
But That’s Only HALF of the Story, Because…
… We’re not even close to comparing apples to apples!
You see, when Wall Street and investment advisors tout the return of mutual funds or the market, they typically (and conveniently) neglect to mention the impact of fees and taxes. But the numbers you see in a Bank On Yourself plan projection or annual statement are net AFTER all fees, commissions and taxes have been deducted.
Much like buying a TV or a couch, the costs of manufacturing and sales are already included in the price – or in the premium, in the case of a Bank On Yourself-type policy. So you’re always seeing your true bottom-line numbers.
That’s very different from mutual funds, investment accounts, 401(k)s and IRAs, where the fees are tacked on every year and compound against you.
So the question you need to answer is… what return would you have to get elsewhere to equal the return of a Bank On Yourself plan?
Let’s say you’re investing inside of a tax-deferred 401(k) or IRA (which is where the bulk of our savings is, according to the Federal Reserve). When you start taking withdrawals, you have to pay taxes on every penny you take out.
So we then demonstrate – using a calculator so you can see it right on the video – that you’d actually have to get 8.84% in a taxable account to equal the return of the Bank On Yourself policy.
That’s because it’s possible to access both your principal AND growth in a Bank On Yourself-type policy with NO taxes due, under current tax law. (That’s just one tax advantage the Bank On Yourself method enjoys. Learn about five tax advantages of Bank On Yourself here.)
But We’re STILL Not Comparing Apples to Apples, Because…
… All those accounts have fees that are going to reduce the value of your account – and those fees will almost always total at least 1%.
So in the video, we then demonstrate that, once you take into account the fees, you would actually have to get a 9.94% return – every year – in a tax-deferred 401(k), IRA or similar account to equal the return of the Bank On Yourself policy that’s been giving Dad financial peace of mind for the past 46 years.
This ought to shut up the financial “gurus” who moan that whole life insurance is a lousy place to put your money. (It probably never will, though, because as Mark Twain noted, “Most people’s egos prefer THEIR facts to THE facts.”)
But the good news about Bank On Yourself just keeps on coming…
Towards the end of the video, you’ll hear how when Dad had an unexpected business expense of $81,000 come up, he simply borrowed against his cash value to cover it – no questions asked. (Try doing that with your 401(k) or IRA!)
You’ll also see how the advisor who sold Dad this plan made only a $1,400 total commission, while the investment advisor would grab more than $22,000 in fees, given the same annual contribution!
And the only guarantee an investment advisor will give you is that he or she will get paid whether you win or lose. However, a Bank On Yourself Advisor will be able to tell you the minimum guaranteed value of your policies on the day you plan to tap into them, and at any point along the way. (Learn how to find a Bank On Yourself Authorized Advisor.)
No Two Bank On Yourself Plans Are Alike…
Yours would be custom-tailored to your unique situation, goals and dreams. To find out what your bottom-line numbers and results could be if you added Bank On Yourself to your financial plan, request your FREE, no-obligation Analysis.
Find out how you can have it all – safety, liquidity, predictability, guarantees, tax advantages, access and control. You have nothing to lose and a world of financial peace of mind to gain.
The alternative is to worry and wonder when the next market crash will wipe out 50% or more of your life’s savings… again. It’s your choice.