Personal Finance Blog for Retirement and Investment Advice

What Fairy Tales and Myths is Your Financial Advisor Feeding You?

I’ve spent the last two decades proving there are many investing and retirement planning myths, lies, and fairy tales that most people and financial representatives blindly accept as fact.

It’s really not their fault. Wall Street spends billions of dollars every year to brainwash us.

As the late President John F. Kennedy observed…

The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth – persistent, persuasive, and unrealistic. Belief in myths allows the comfort of opinion without the discomfort of thought.”

Here are 3 fairy tales you’ve probably heard from your financial advisor and the facts about each:

Fairy Tale #1: You Must Risk Your Money in Order to Grow an Adequate Nest-Egg

This is undoubtedly Wall Street’s BIGGEST lie.

And have you noticed how they conveniently leave out the part about how, since you’re throwing your retirement savings on a craps table, the market could tank when you near or are in retirement… you could lose 50% or more of your life’s savings… and your dreams of retirement will turn into a nightmare you may suffer through until the day you die?

Nooooooo, they always seem to forget to mention that.

But there is a little-known but proven strategy that should be part of everyone’s financial foundation. It lets you know the minimum guaranteed value of your savings on the day you plan to tap into them… and at any point along the way.

That’s because this strategy bypasses Wall Street and has experienced positive growth every single year for nearly two centuries!

The growth has historically beaten savings accounts, CDs, and money market accounts by a country mile.

This strategy is a supercharged variation of a dividend-paying whole life insurance policy. Options are added that make your equity or cash value in the policy grow significantly faster than the traditional kind of whole life policies financial advisors know about and love to trash.

However, adding these riders also results in slashing the advisor or representative’s commission by 50-70%.

So most financial advisors tell you that you should never buy that kind of life insurance. Instead, put your life savings in the Wall Street Casino… where you’ll have absolutely no idea whatsoever how much money you’ll actually have for retirement!

Want proof this strategy doesn’t work? The average 65-year-old today will live almost 10 years AFTER their savings run out! (Source: World Economic Forum)

Fairy Tale #2: Whole Life Insurance is a Lousy Investment

Your financial advisor will tell you whole life insurance is a “lousy investment”… but life insurance is not an investment at all! In fact, in many states, it’s actually illegal to call life insurance an investment.

Why would calling life insurance an investment be illegal?

According to the Texas Department of Insurance,

Life insurance isn’t an investment. An investment is a financial risk – you might make money, but you also might lose some or all of your money.”

In contrast, whole life insurance comes with many guarantees, and more guarantees than any other life insurance product, including:

  • Your premium is guaranteed never to increase
  • You receive a guaranteed pre-set annual cash value increase – and your gains don’t vanish when the market crashes
  • Your costs are guaranteed never to increase
  • You’re guaranteed to have access to up to 90% of your cash value in the policywhenever and for whatever you want – no questions asked!
  • Your policy has a guaranteed death benefit… and your cash value is guaranteed to be equal to the death benefit when the policy matures

The only thing that’s not guaranteed in a Bank On Yourself-type high-cash-value, dividend-paying whole life policy is the size of your annual dividend.

You aren’t guaranteed to receive annual dividends, which are credited to policy owners in years when the company’s profits exceed their expenses. However, the Bank On Yourself Professionals work with the financially strongest companies in the country that have paid dividends every single year for at least 100 years, including during the Great Depression, Great Recession, the Spanish flu pandemic, and yes, the Coronavirus pandemic… and every single economic bust in between.

To get a referral to one of only 200 financial representatives in the US and Canada who have met the rigorous training requirements to receive the title of “Bank On Yourself Professional,” along with a free, no-obligation Analysis and custom-tailored recommendations, just click this button today:

Fairy Tale #3: Oh, I Can Do That for You

Say you send your advisor one of our newsletters or a copy of one of my best-selling books, and he or she realizes you really don’t want to put all of your eggs in the “hope-and-pray-it-all-works-out” basket they’re pushing.

The next thing you’re likely to hear is, “Well, I can help you set up that strategy.”

If you do hear that, then you might want to ask them, “If you could have done this for me before, why didn’t you?”

CAUTION! If a financial advisor doesn’t structure your policy properly or uses the wrong company or product, your policy could grow much more slowly, lose its phenomenal tax advantages, or both.

It happens more often than you’d think. It happened to the policies my husband and I started when we first learned about this. (I’m an educator and investigator, not a licensed financial professional.)

And that’s why I championed the creation of the Bank On Yourself Professional training program. It’s sponsored by a separate company I have no ownership in, which has decades of experience in this area.

NOTE: Read this if you’re a licensed life insurance agent and you have at least one year of experience in financial services…

You may be interested to know that Bank On Yourself is looking for a few good men and women who have a desire to help their clients reach their financial goals and dreams without taking any unnecessary risks.

You can work with clients “virtually” to provide a safe and convenient experience. It’s a challenging but very rewarding career for those who qualify to be accepted into the program. Not everyone has what it takes to be successful with this concept, and not everyone is accepted into the training program. If you’d like to offer your clients more guarantees and predictability and less financial stress – especially in these very challenging times – you might be a good fit for this program.

Go here to learn more and to see if you qualify for the program.

To apply for the program, go here.

Take Action Today to Ensure Your Retirement Dreams Don’t Turn Into a Nightmare…

If you’re ready to speak with a highly trained and knowledgeable Bank On Yourself Professional who can help you with a variety of safe wealth-building and guaranteed lifetime income strategies, just request a referral and free Analysis here now, while it’s fresh on your mind.

If you take action now, you could soon be experiencing the financial peace of mind you’ve been searching for. So do yourself a favor and act TODAY! Click this button now:


The 5 Biggest Threats to Your Retirement Security Today

Recent studies and surveys show that pre-retirees and retirees fear these five threats to their retirement finances most – and with good reason. Which of these keep you up at night?

Retirement Security Threat #1: Outliving Your Money

This is such a big and scary threat that some people say they would rather die before their time than run out of money.

Unfortunately, the likelihood of outliving your money is all too real. The average 65-year-old will outlive their savings by almost a decade, according to a recent study by the World Economic Forum.

To determine how much money you’ll need to have saved by the time you retire, a good guideline is the “Rule of 25,” which says you should multiply your total annual expenses by 25. By that measure, to have $100,000 per year (don’t forget to adjust for inflation) to spend in retirement, you’ll need to save $2.5 million.

It’s also important to consider that you may well live longer than you imagine, and studies show people tend to underestimate their life expectancy.

Retirement Security Threat #2: Market Risk

[Read more…] “The 5 Biggest Threats to Your Retirement Security Today”

Why the Best Way to Get Cash Fast is a Bank On Yourself Policy Loan

When the Coronavirus pandemic and shutdown hit, millions of people found themselves out of a job, and many others had their hours and pay cut.

The government stepped in to provide stimulus, but many people had to wait weeks or even months to receive it.

And just when many people needed fast access to cash, charge card limits were reduced or even canceled without warning.

As Mark Twain wryly noted…

A banker is a fellow who lends you his umbrella when the sun is shining, but wants it back the minute it begins to rain.”

Bank On Yourself Comes to the Rescue…

When you need fast access to cash, what’s the fastest and easiest way to get it? A Bank On Yourself policy loan because it’s money you can get your hands on: [Read more…] “Why the Best Way to Get Cash Fast is a Bank On Yourself Policy Loan”

Why More Experts Are Now Saying It’s Time to Ditch Your 401(k)

A growing number of retirement planning experts are joining the chorus of people saying 401(k) plans no longer make sense for savers in recent articles on Motley Fool, Bloomberg, MarketWatch, and other major publications.

They’re lamenting that one of the biggest appeals of the 401(k) – the ability to make contributions with untaxed dollars in exchange for tax-deferred growth and withdrawals – is disappearing.

The national debt was already skyrocketing before the pandemic spurred the biggest fiscal stimulus programs in history. And a surge in unemployment has lowered tax revenue for federal and state governments.

What do governments typically do to counter budget deficits?

They raise taxes, of course!

And as taxes rise, deferring them in a 401(k) or IRA means you’ll pay more later – potentially a lot more.

Even before the pandemic, the Center for Retirement Research said people lose 25%-33% of the value of their 401(k) to taxes… and most people are shocked when it happens because they forget they’ll owe the IRS taxes on every penny they’ve put in and every penny of growth they’ve deferred.

Do you know what the tax rates will be in 20 or 30 years from now? For that matter, do you know what they’ll be next year or in two years?

[Read more…] “Why More Experts Are Now Saying It’s Time to Ditch Your 401(k)”

72% of Americans Are Stressed About Money – Here’s How to Break Free of It

If you’re feeling stressed about money thanks to the Coronavirus pandemic and shutdown, you’re not alone.

72% of Americans report feeling stressed about money within the last month, according to a new survey by the American Psychological Association. It doesn’t help that 35% of Americans can’t last even one month on their savings, according to the July 2020 Retirement Confidence Index.

So how did we get here… and what can you do about it?

Among the many bits of wealth-killing conventional financial “wisdom” is the recommendation that you have an emergency fund equal to 3 to 6 months of your household expenses.

Almost every financial “expert” parrots this advice, even though millions of Americans were out of work for more than a year in the last major recession!

So here’s a 3-step plan to move towards a financially stress-free life…

Step #1: Start Working Towards a Safe and Liquid Emergency Fund Equal to Two Years of Your Household Expenses

[Read more…] “72% of Americans Are Stressed About Money – Here’s How to Break Free of It”

From “Bank On Yourself is a Scam” to “This Can Work for Everyone!”

Dan Proskauer is a technology executive for a major health care company who heard a radio ad for Bank On Yourself in 2009 that caught his attention. At that time, the economy was in a deep recession, and the stock market was plunging.

For several years, Dan had felt frustrated because he’d been doing all the “right things” he’d been taught to do with his finances… but those “right things” were failing him – and most other Americans – miserably.

Having been burned numerous times by following the conventional financial “wisdom,” Dan was understandably very skeptical of Bank On Yourself. It sounded “too good to be true.” In fact, it sounded like it must be a scam!

(I recently interviewed Dan about his 11-year journey with Bank On Yourself, and you can click here to skip to hear the interview and/or read a transcript of it.) [Read more…] “From “Bank On Yourself is a Scam” to “This Can Work for Everyone!””

Coronavirus Pandemic Exposes Cracks in 401(k) Plans

I’ve written extensively about why more and more experts are warning that the 401(k) is an experiment that’s failed, and why the man considered to be the “father” of the 401(k) says it’s a monster that should be destroyed.

But the pandemic, shutdown and resulting economic downturn have exposed dangerous cracks in the 401(k) system. I’ll explain three of them here and show you how to protect yourself…

New 401(k) Problem #1: Companies are Suspending Matching Contributions

Tens of millions of workers have already been affected, and more companies have announced their plans to suspend the 401(k) match.

That’s a real blow for employees who’ve come to think of the match as “free money” and assumed it’s a perk that won’t be yanked with little warning.

But the reality is that the employer match isn’t really “free money” at all. According to a study by the Center for Retirement Research, for every dollar an employer contributes to your 401(k) match, they pay 90 cents less in salary to men and 99 cents less to women!

Translation: For every matching dollar you’re given, you really only receive 10 cents or less in total compensation. [Read more…] “Coronavirus Pandemic Exposes Cracks in 401(k) Plans”

How to Be Financially Prepared for Any Emergency or Black Swan Event

By definition, an “emergency” is an unexpected and difficult or dangerous situation which happens suddenly and requires quick action to deal with it.

The unexpected doesn’t wait around for you to get your act together. But does that mean you can’t be prepared for an emergency… even one as devastating as the coronavirus pandemic and lockdown?

Are you willing to play a little game of the imagination and find out?

What if you were forewarned two years ago that in March of 2020…

  • We’d be in the grips of a pandemic and there would be a shutdown of virtually the entire economy
  • Tens of millions of people would lose their jobs and you could be one of them. And many others would have their hours and pay cut
  • The government would step in and provide stimulus, but it could take a month or two or more until you receive it
  • Your charge card limits could be reduced or even canceled without warning
  • Stock market volatility would return with a vengeance and your plans for retirement could be upended for years or even a decade to come
  • People of any age could be debilitated or even die after being infected with the virus

If You Had Been Warned of This Two Years Ago, What Would You Have Done Differently?

[Read more…] “How to Be Financially Prepared for Any Emergency or Black Swan Event”

How to Avoid the Pitfalls of 401(k)s and IRAs: Pamela Yellen’s Interview on Beyond 50 Radio

I was just interviewed on Beyond 50 Radio about the wealth-killing traps of 401(k)s and IRAs and how to avoid them.

When you listen to the replay of this interview by clicking on the play arrow below, you’ll discover:

  • How the pandemic has exposed the shortcomings of traditional retirement accounts
  • Why the 401(k) employer match isn’t really “free money” at all
  • Why you should never let your employer choose where to invest your 401(k) contribution – most employers now automatically invest your money, and almost no one questions it!
  • Why you’re likely to retire in the highest tax brackets of your life – and how to legally slash your tax bill
  • How the fees hidden in 401(k)s can devour 40% or more of your hard-earned money
  • The critical difference between saving and investing for retirement
  • Why you need an emergency fund equal to two years of your household expenses
  • How to have quick and easy access to the money you need to weather the challenges life unexpectedly throws at you – and how you can get the exact same growth on that money as though you never touched it
  • The real reason many financial representatives will steer you away from the Bank On Yourself strategy
  • What the Bank On Yourself strategy is in a nutshell

You can listen to the interview by pressing the play arrow below…

[Read more…] “How to Avoid the Pitfalls of 401(k)s and IRAs: Pamela Yellen’s Interview on Beyond 50 Radio”

Bank On Yourself – a Financial Bunker for Scary Times

These are unprecedented times we find ourselves in, and there is no historical playbook for navigating them.

The Coronavirus has turned the financial markets upside down, and the experts are bemoaning the fact that there’s “been no place to hide,” including the traditional “safe havens.”

However, none of the hundreds of thousands of people who use the Bank On Yourself strategy lost a penny as the markets careened out of control. Their plans haven’t skipped a beat and continue growing by a guaranteed, predictable amount, just as has happened every year for the last two centuries.

Their annual increases are guaranteed to get larger every year, and all of their principal and ALL of the gains they have ever received are locked in. These plans do not go backward.

They also have access to the equity in their plans to help them weather the extraordinary challenges they face today – with no restrictions, no penalties, no taxes due… and no questions asked!

Let’s take a look at three ways Bank On Yourself is your best financial bunker in scary times:

Bank On Yourself Has a 200-Year Track Record of Positive, Guaranteed, Competitive Growth

[Read more…] “Bank On Yourself – a Financial Bunker for Scary Times”