Personal Finance Blog for Retirement and Investment Advice

When Will the Next Market Crash Occur… and What Will Cause It?

I recently promised to answer two questions we’ve been getting…

When will the next market crash happen? And what will cause it

As the physicist Niels Bohr noted,

Prediction is very difficult, especially if it’s about the future.”

But here are five things we do know…

  1. Last month we entered the longest-running bull market in history, at 9½ years
  2. No bull market has ever made it to its 10th birthday
  3. The second-longest bull market was the dot-com-fueled rally of the 1990s which caused investors losses of nearly 80% when it flamed out
  4. While there’s no guarantee this bull market will crash before it hits its 10th birthday in early 2019, we do know that, historically, the longest-running bull markets go out “with a bang, not a whimper”
  5. As the experts who study behavioral finance note again and again, we humans have an enormous capacity for forgetting the lessons and pain of past crashes, and most people will be as woefully unprepared for the next crash as they were for the previous ones

Let’s Look at What Will Cause the Crash…

There are a number of things brewing that might trigger the next collapse. Take your pick:

Interest Rates Jump – Thanks to extraordinarily low interest rates for longer than ever before, risk-taking and leveraging have exploded. Interest rate increases that are faster than expected could push down stocks and commodities and trigger a domino effect.

Certifiably Crazy World Leaders with Their Finger on the Trigger – The threats posed by countries like North Korea and Iran are very real… and very unpredictable.

Cyber Attacks and Disruptions to the Power Grid – These attacks by countries like China, North Korea, Russia, and Iran are becoming more common and more debilitating. They’ve hit major companies and governments, both local and Federal. They have unimaginable power to paralyze the country and cripple our economy.

Emerging Markets in Distress or Chaos – Countries from Turkey to Argentina and South Africa are experiencing market and currency plunges, along with interest rate and recession woes which could spread to other countries. We easily forget how economically connected we are to other countries around the globe.

China Could Crack – China has so far weathered the threats of a trade war and a rising dollar. But a real-estate crash or defaults of local government-owned financing vehicles could be the breaking point and would impact our economy.

Trump Might Be Impeached – Although he would likely stay in office, confidence in the bull market that really took off when Trump got elected could be undermined.

Very Tight Labor Market – Wait a minute! Isn’t record-low employment supposed to be a good thing?

There are always unintended consequences. In this case, an incredibly tight labor market has resulted in 911 emergency call centers not being able to get enough people to answer the phones. And prisons are now training inmates to be coders.

What could possibly go wrong with that?

The bad news is this is just a partial list of potential causes of the next financial crisis

The bottom line is that the current bull market isn’t going to last forever.

If you don’t have a “Plan B” and a significant portion of your savings portfolio in safe and liquid financial vehicles, you are in for some serious pain that could last for many years.

The Very Best Place to Put Money You Need to Keep Safe and Liquid is in a Bank On Yourself Plan

A Bank On Yourself-type high-cash-value dividend-paying whole life policy comes with an unbeatable combination of advantages, which include:

  • Guaranteed, predictable growth every year – even when the markets are crashing
  • It’s a supercharged variation of an asset that has never had a losing year in more than 160 years
  • Liquidity and control of your money – get access to it when and for whatever you want, no questions asked
  • It’s backed by a five-layer safety net
  • The Bank On Yourself strategy comes with numerous tax advantages, including tax-deferred growth and tax-free withdrawals, under current tax law

It’s easy to find out what your bottom-line numbers and results could be if you added the Bank On Yourself safe wealth-building method to your financial plan. Just request your free, no-obligation Analysis here.

Do it today, and you could soon be enjoying an unprecedented level of financial security and peace of mind:


3 Key Ways You’re Underestimating Your Retirement Costs

Take a moment and think about how much savings you’ll need in retirement.

Write that number down.

Now here’s a reality check: That number is probably low.

Not because of your math skills, but because most people underestimate what their costs will be in three critical ways.

A new study found that 37% of retirees say their overall retirement cost estimates turned out to be low.

And when it comes to healthcare, 44% of retirees said they’re facing higherx costs than they expected. (Source: 2018 Retirement Confidence Survey by Employee Benefit Research Institute)

Three Ways You’re Probably Underestimating Your Retirement Expenses…

#1. Assuming you’ll spend less in retirement than when working

The majority of people have never really sat down and calculated what they’ll need every month. You need to be comprehensive in listing out all expenses. And keep in mind you’ll typically spend more in the early years of retirement when you’re likely to be more active.

Would you like to travel? Enjoy hobbies? Visit grandkids? Add those costs in, too, because you aren’t working hard all your life to have to scrimp and sacrifice in retirement, are you?

Then throw in those major and often unexpected expenses that most people forget to account for, like a car repair, major dental work, a home remodel, needing to help out a child, a roof or major appliance that needs to be replaced… the list goes on and on, doesn’t it?

#2. Underestimating the impact of inflation

We’ve been the beneficiaries of historically low inflation rates in recent years. It’s easy to forget that inflation has been a lot higher over the years – in some years it’s been 10% a year and even higher.

But even low rates of inflation eat away at the value of your savings.

From 1913 to 2013, inflation averaged 3.22% a year, so factor in at least 3% inflation per year – 4% if you want to be on the safe side. (And that’s the government’s “official” calculation, which many believe to be low.)

Scary fact: If inflation averages just 3% per year, it will swallow more than $117,000 of the average Social Security benefit over 20 years, according to the LIMRA Secure Retirement Institute!

#3: Underestimating health care expenses in retirement

Out-of-pocket medical expenses in retirement is an area where many people are significantly underestimating their costs. And many assume most costs will be covered by Medicare, which is not true.

A 65-year-old couple retiring now will need $275,000 to cover out-of-pocket health care costs during retirement, according to a study by Fidelity.

And that number does not include the cost of nursing home or home health care.

At least 70% of people over age 65 will require long-term care services, and more than 40% will need nursing home care, according to the U.S. Department of Health and Human Services.

If you or your spouse require a stay in a nursing home, you would need over $250,000 to cover the typical average stay. And Medicare does not cover these expenses.

What Steps Should You Take if You’ve Underestimated Your Costs in Retirement?

There are several steps you can take to make up a retirement savings shortfall…

Is There a Way to Have True Lifetime Financial Security?

There is when you Bank On Yourself.

With the Bank On Yourself safe wealth-building strategy, you’ll know the guaranteed minimum value of your plan on the day you need to tap into it… and at every point along the way.

You’ll enjoy liquidity, control, numerous tax advantages, and a competitive return without the risk or volatility of stocks and other investments.

And you’ll receive some built-in protection against inflation because a Bank On Yourself policy grows by a guaranteed and annually increasing amount.

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 Analysis here.

You’ll get a referral to one of only 200 advisors in the U.S. and Canada who have met the rigorous training and requirements to be an Authorized Advisor and who can answer your questions and design a plan custom tailored to your unique situation, goals and dreams.

If you take this step today, you could soon be enjoying an unprecedented level of financial security and peace of mind:

Is There A Good Alternative for Retirement Savings? See What These Bank On Yourself Reviews Say

Navy Commander … physician … salesman … retired NFL record-holder … what do they all have in common?

They are all happily using the Bank On Yourself safe wealth-building method to either beef up or even serve as the foundation of their retirement savings plans. And these are just four of the hundreds of thousands of satisfied Bank On Yourselfers.

The Bank On Yourself strategy uses specially-designed dividend-paying whole life insurance to create a secure savings plan. The policies grow by a guaranteed and pre-set amount every year. The growth is exponential, meaning it gets more efficient every year the policy is held, providing peak growth at the time many people need it most – retirement.

And what’s not to like about Bank On Yourself? Guaranteed growth … accounts that never go down in value … incomparable tax benefits … and no government restrictions on putting money in or taking money out. Read on for the straight truth from actual Bank On Yourself clients …

Bank On Yourself Reviews, in Their Own Words

Here are the stories of Bob Chambers (Navy commander), Dr. Bryan Kuns (physician), Lowell Warner (sales professional), and Glyn Milburn (retired football star) …

Bank On Yourself Retirement Planning Is About More Than Money … It’s About Financial Independence … Lifestyle … and Legacy

[Read more…] “Is There A Good Alternative for Retirement Savings? See What These Bank On Yourself Reviews Say”

More Reviews About Bank On Yourself Changing Lives!

The Bank On Yourself strategy is much more than just another way to save for retirement. Think about it: If you’re firing your banker, bypassing Wall Street, and taking back control of your own financial future – you’re literally changing your life!

You can see Bank On Yourself video reviews on YouTube. Bank On Yourself really does continue to change lives, as folks of all ages and incomes have discovered.

More than half a million families and businesses use the Bank On Yourself strategy – based on using super-charged dividend-paying whole life insurance – to reach their short-term and long-term financial goals, without taking any unnecessary risk. Read what real people are saying about this strategy in these Bank On Yourself reviews.

Drew Wilder Reviews Bank On Yourself

Drew Wilder’s family has been using the Bank On Yourself safe wealth-building strategy since 2006. In this review of the Bank On Yourself method, Drew shares how he’s relying on Bank On Yourself as a safe way to build financial stability … providing a source of funds for needs ranging from home repair to paying for college. See why Drew trusts dividend-paying whole life insurance to safely grow his nest egg.

Phil and Marge Owens Recommend Bank On Yourself

[Read more…] “More Reviews About Bank On Yourself Changing Lives!”

Have You Seen This Amazing Amazon.com Review of The Bank On Yourself Revolution Book?

I’ve seen hundreds of reviews of my latest book, The Bank On Yourself Revolution, since its publication in 2014. And they’re fascinating to read because they’re all over the map. Most readers praise the strategy, although a few have damned it. (I could be mistaken, but I don’t believe anyone who has actually used the strategy for themselves has written a review saying they are unhappy.)

In any case, you can see some of the Bank On Yourself reviews here.

As you can imagine, the Amazon reviews for The Bank On Yourself Revolution are highly opinionated!

On the day I wrote this post, there were 138 reviews of The Bank On Yourself Revolution on Amazon.com. I’m thrilled that Amazon customers are giving us their two cents’ worth about the book.

A Very Unusual Review of The Bank On Yourself Revolution on Amazon.com

[Read more…] “Have You Seen This Amazing Amazon.com Review of The Bank On Yourself Revolution Book?”

Wall Street Journal Study: 40% of Pre-Retirees Will Have to Reduce Their Lifestyle

A new study by the Wall Street Journal confirms it: Many Americans will have to trade their “golden years” for a retirement filled with scrimping and sacrifice.

Pre-retirees aged 55 through 70 today are the first generation that was “left on their own” to prepare for retirement, according to Alicia Munnell, Director of the Boston College Center for Retirement Research.

As pension plans that provide a guaranteed income for life disappeared, 401(k)s, 403(b)s, IRAs and similar government and employer-sponsored plans replaced them.

It’s an experiment that has failed many. According to the Wall Street Journal, for Americans approaching retirement age…

“Their median incomes, including Social Security and retirement fund receipts, haven’t risen in years, they have high debt, are often paying off children’s educations and are dipping into savings for aging parents.

“Their paltry 401(k) retirement funds will bring in a median income of under $8,000 a year for a household of two.” [Read more…] “Wall Street Journal Study: 40% of Pre-Retirees Will Have to Reduce Their Lifestyle”

How Your Credit Score Affects Your Life – Another Reason to Fire Your Banker

I just got something in the mail that made me madder than a mosquito in a mannequin factory.

It ought to tick you off, too, and give you some really good reasons to fire your banker. Here’s the scoop…

I just got a bill from our auto insurance company – one of the biggies which shall remain nameless, for now.

They informed us that our premium was jacked up because of information they got from consumer reports.

Specifically, they cited information they obtained on li’l ole me (gasp!) about my “percent balance to high credit for bank revolving accounts reported in the last 6 months.”

Yeah, I know it sounds like gibberish, but here’s what really ticked me off…

I show people how to fire banks and finance companies and become their own banker! [Read more…] “How Your Credit Score Affects Your Life – Another Reason to Fire Your Banker”

Read These Bank On Yourself Reviews from Actual Clients

These Bank On Yourself reviews aren’t based merely on theory. They report the actual results of Bank On Yourself clients.

Bank On Yourself is a financial strategy based on high cash value dividend-paying whole life insurance. Bank On Yourself-type policies enjoy guaranteed growth and are carefully designed to create maximum cash value and flexibility. This allows policy owners to take loans against their life insurance policies while still experiencing the same growth on their money – just as if they hadn’t touched a dime of it!

Here are the Bank On Yourself reviews of two of our hundreds of thousands of happy Bank On Yourself clients …

Steady Growth of His Savings Replaces a Rocky Ride for Bank On Yourself Reviewer

Dan Proskauer is an engineer with a graduate degree from Cornell University, the highest-rated engineering school in the Ivy League. Dan works for a major healthcare company, and he holds three U.S. patents.

Dan is a sophisticated investor. He lives below his means, and he’s disciplined about saving for the future. But after the financial crashes of 2000 and 2008, Dan realized he had nothing to show for decades of saving and investing his hard-earned money and “doing all the right things.” [Read more…] “Read These Bank On Yourself Reviews from Actual Clients”

The Financial Shock that Can KILL You

Middle-aged Americans who experience a major economic blow are more likely to die during the years that follow than those who don’t.

That’s according to a new study published in the Journal of the American Medical Association.

Shockingly, those who experienced a devastating financial loss – called a “wealth shock” – have a 50% greater risk of dying early. And it doesn’t matter how much money you had to start.

How likely are you to experience a wealth shock?

About 1 in 4 people in the study have had a wealth shock, averaging a loss of about $100,000. Often it was a result of a drop in the value of retirement investments or a home foreclosure.

Some shocks happened during the Great Recession of 2007-2009. Some happened before or after that.

But it didn’t matter if the economy was good or bad – a wealth shock still increased the chance of dying early.

The findings suggest a wealth shock is as dangerous as a new diagnosis of heart disease, says Dr. Alan Garber of Harvard University. Another expert noted that,

We should be doing everything we can to prevent people from experiencing wealth shocks.”

[Read more…] “The Financial Shock that Can KILL You”

See Testimonials and Reviews About Bank On Yourself on Our YouTube Playlist

In their own personal YouTube reviews of Bank On Yourself, actual users of the Bank On Yourself strategy describe the different ways they use this flexible tried-and-true financial resource. We’ve collected some of these reviews in our YouTube Bank On Yourself Reviews Playlist.

Perhaps you want to be able to seize an unexpected opportunity that requires ready cash, or pay off student and credit card debt, take a once-in-a-lifetime vacation, finance the purchase of an automobile, or even underwrite the crowdsourcing of a church major fundraising campaign. These Bank On Yourself reviewers tell you how they did it.

And just as they did, you’ll find that borrowing against the cash value of your permanent life insurance policy is a quick, affordable, and simple way to get the cash you need in just a few short days, with no questions asked.

Bank On Yourself Reviewer Uses a Policy Loan to Help Fund a Last-Minute Adoption

[Read more…] “See Testimonials and Reviews About Bank On Yourself on Our YouTube Playlist”