Personal Finance Blog for Retirement and Investment Advice

Success Tips from Sir Richard Branson

Last week I was fortunate to spend some time with mega-successful entrepreneur Sir Richard Branson and 100 other top entrepreneurs.

Pamela Yellen & Sir Richard Branson
Pamela Yellen & Sir Richard Branson

Branson conceived the Virgin Group in 1970 and it has gone on to grow very successful businesses (Virgin Mobile & Virgin Airlines to name a few) in numerous sectors.1

We had a chance to ask Sir Richard questions and here are five Success Tips he shared:

Success Tip #1…

Your business life starts at home – pick a good partner and respect them for who they are.

Success Tip #2…

The biggest challenge business owners run up against is being risk averse.  At some point, you have to just say, “Screw it, let’s do it!”

Success Tip #3…

It’s important to keep fit – you’ve only got one body.  Try to find fun ways to do it.

Success Tip #4…

Praise your team/employees – never criticize them.  Treat them right and they’ll do anything for you.

Success Tip #5…

Don’t take yourself too seriously!

I found it fascinating that when one of us asked a question of Sir Richard, he would often respond by asking a question back; he seemed genuinely interested in us as individuals and it tied right into Success Tip #4.  Sir Richard simply makes you feel that you matter.  And he always looks for the best in people.

Sounds like a blueprint for a life well-lived!

Food for thought…

Number of times the DOW has crossed 11,000 – up or down – since first breaking it on May 3, 1999: 65!2  For the record, Bank On Yourself plans have NEVER gone backwards – they only have one direction: UP!
If you haven’t already started to Bank On Yourself, please take the first step today by requesting your FREE Analysis and discover how you can take back control of your financial future!

REQUEST YOUR
FREE ANALYSIS!
1. http://www.virgin.com/about-us/
2. “How to Play a Market Rally”, The Wall Street Journal, November 15, 2010 (The DOW has since crossed 11,000 at least two more times)

When opportunity knocks, will you be ready?

In every economy – whether boom or bust – opportunities arise.  Unfortunately, most people don’t have the financial resources to take advantage of them.

This is an inspiring story of how people are using the Bank On Yourself method to be in a position to take advantage of some amazing opportunities…

Here’s a new reality: You need cash now more than ever. Not credit. Not equity. Cash.”
– “Why Cash is King,” Men’s Health, November, 2010 issue

joni-schulz-and-dave
“Bank On Yourselfers” Joni and Dave Schultz

Take Joni and Dave Schultz, who just happen to be my sister- and brother-in-law.  Joni is a hospital department supervisor and Dave just retired from his job in construction.

joni-schulz-and-dave
“Bank On Yourselfers” Joni and Dave Schultz

They came to visit us recently, and Joni’s first comment when she walked in the door was, “Now I get it!  I understand why Bank On Yourself is so much better than using a credit card or finance company, and why it’s even better than paying cash for stuff!

Joni and Dave started a Bank On Yourself policy about five years ago, in order to supplement their retirement income and add predictability to their financial plan.

But they’d never used it to finance any purchases… until now.

Opportunity knocks…

[Read more…] “When opportunity knocks, will you be ready?”

Small Business Owners Turn to Whole Life Insurance and Other Alternative Financing Options to Overcome Tight Credit

Now is the Best Time to Prepare for the Next Economic Downturn

By Pamela Yellen and Dean Rotbart

Executive Summary: Among the best non-conventional or alternative financing options for small businesses are loans taken against the owners’ or business’s whole life insurance policies.  Correctly structured, policies such as those that conform with the Bank On Yourself strategy, are tax-advantaged and readily accessible sources of the cash that every small business owner requires to survive harsh economic times.

DENVER – Small business owner Terry Hauschulz recently needed a $15,000 loan so that he could pay the tab on his October 15th federal tax return.

Clients of Hauschulz’s 10-year-old medical equipment repair business have been dallying when it comes to paying him.  “Great receivables, no cash,” Hauschulz laments.

The 55-year-old proprietor mulled asking his commercial bank to help tide him over.  “You know what that would be,” he says of the iffy and laborious process of winning a loan approval these days even for those borrowers with good credit.

rejected creditInstead, Hauschulz, like tens of thousands of other self-reliant entrepreneurs, professionals and small business operators, looked to non-conventional finance options.

The solution he selected – borrowing against his individual whole life insurance plan – allowed him to promptly receive the necessary funds without a credit check, without having to submit financial statements, without needing the approval of a loan committee and without any bureaucratic hassles.

[Read more…] “Small Business Owners Turn to Whole Life Insurance and Other Alternative Financing Options to Overcome Tight Credit”

Six scary facts affecting your finances

A number of items have come across my desk recently that should spook the living daylights out of you…

Scary Fact #1: 40 percent of all workers plan to delay retirement

61% blamed the decline in their 401(k) for this.  And a majority said they’re prepared to spend less in retirement according to a new survey by Towers Watson.

Scary Fact #2: Nation’s retirement shortfall exceeds $4.6 trillion!

A recent study revealed Boomers and Generation X’ers are coming up frighteningly short on their retirement savings.

And when nursing home and home health care costs are added in, that shortfall doubles, according to a study released this month by the Employee Benefit Research Institute (EBRI).

Nearly half of both Baby Boomers and Gen X’ers won’t have enough funds to cover living expenses, according to an EBRI report released earlier this year.

Scary Fact #3: New 401(k) disclosure rules don’t put a lid on fees

New regulations announced this month by the Department of Labor will require better disclosure of all the hidden fees you’ve been paying in your 401(k), starting in January, 2012.

scary bat

But, for all the noise on Capitol Hill about this horrifying issue, NO regulations have been proposed or even discussed to reduce the confiscatory fees you pay!

scary bat

Even a one percent higher fee can cost an employee $64,000 or more in realized savings by age 65, according to the DOL’s own estimates.

The 401(k) situation is so bad that you will probably need to get an average annual return of 8% to 10% – just to break even!

Not convinced?  Check out the shocking exposé Pulitzer Prize-nominated journalist Dean Rotbart and I recently co-wrote on this.

Scary Fact #4: Hope is not a strategy

We’re headed for a retirement train wreck, and it’s going to get really ugly over the next 15 years”
– Rob Arnott, a widely respected market strategist

In a well-researched article in this month’s Fundamentals Index Newsletter, the authors point out that the return assumptions built into pension and retirement plans today assume that “everything will go right.”  They’ve relied on unrealistic assumptions.  The authors also go on to demonstrate why returns are likely to be much lower in the future.

We’re relying on hope.  But hope is not a strategy; hope will not fund secure retirements.  We’re planning for the best and denying that worse can happen.  It makes far more sense to hope for the best, with plans for realistic outcomes – and contingency plans for worse ones.”1

Scary Fact #5: 40 percent of retirees were forced out of work early

Remember the scene from the 1983 movie classic, “The Big Chill,” where the character played by Jeff Goldblum asks…

Have you ever gone a week without a rationalization?”

Well, many boomers today are trying to rationalize away the fact that they won’t be able to retire when and how they had planned by trying to convince themselves that retirement is overrated.  They now talk about continuing to work in some capacity as long as they can.

While there’s no question that this can give you more of a sense of purpose and fulfillment and keep you from dying of boredom, the reality is that many people are being forced to retire earlier than they can afford to.  Job layoffs and health issues are the primary reasons for this.

I love what I do, and I hope to be doing it for a long time.  But shouldn’t the decision to retire – or not – be a matter of choice, not necessity?

The reality is that you may not have a choice.  Nearly four in ten retirees say they were forced out of work earlier than they’d planned because of layoffs, poor health or the need to take care of a loved one, according to EBRI.

Scary Fact #6: All Bank On Yourself policy owners received a guaranteed increase and a dividend – again

I was just checking to see if you were paying attention! That’s not a scary fact (unless you’ve been procrastinating on starting to Bank On Yourself).

Halloween CashWhole life insurance is an asset class that has increased in value during every stock market decline and every period of economic boom and bust for more than a century.

A dividend-paying whole life policy grows by a guaranteed and pre-set amount every year.  In addition, the growth is exponential, meaning it gets better every single year with no luck, skill, or guesswork required to make that happen.

This gives you some protection against inflation and provides peak growth when you need it most (retirement).

A Bank On Yourself-type policy includes an option that turbo-charges the growth of your cash value in the policy.

You can know (rather than hope) the minimum guaranteed income you can take from the policy in retirement.

And, you can access the money in retirement with little or no tax consequences, under current tax law.

You can also have access to capital when you want it and for whatever you want.  No nosey credit apps or pledging your first born.

So, if you haven’t added Bank On Yourself to your financial plan yet, doesn’t it make sense to request a free Analysis and find out what your bottom-line numbers and results could be?

There’s no obligation, it’s not scary, and no one’s going to twist your arm!  If you haven’t already started to Bank On Yourself, please take the first step today and take back control of your financial future!
REQUEST YOUR
FREE ANALYSIS!

1. “Hope is Not a Strategy,” Fundamentals Index Newsletter, October 2010 Issue

Introducing the Bank On Yourself Nation

What started in 2002 as a quest to educate Americans and help them achieve financial security and peace of mind using the Bank On Yourself method came to uncover an all-American treasure more exquisite than I ever imagined.

Pamela Yellen

The revelation was gradual.

Pamela Yellen

At first, my concentration was tightly focused on helping people reach their savings and retirement planning goals and objectives using a seldom-trumpeted, but proven variety of whole life insurance.  After laborious and extensive research, a system was created that would permit almost anyone – rich and poor, young and old – to wean themselves from dependence on banks, credit cards, auto leases, mortgage companies and the risks and volatility of the stock and real estate markets and traditional retirement plans.

People could sleep well at night knowing that their savings were growing – safely and predictably – even when the markets tumbled.

Soon, the American public began to come around to my way of thinking – or at least that’s what I believed at the time.  People from all walks of life made initial inquiries, read up on Bank On Yourself materials, met with the specially trained financial representatives and then made the choice to bank on themselves.

Clients became our most potent marketing tool, as they began sharing the Bank On Yourself concept with their family, friends, neighbors and colleagues, as well as increasing their own commitment to this proven savings and money management philosophy.

I’ll admit I was pretty pleased with myself…

To be honest, I was pretty self-satisfied both by the consistent growth in the number of folks who were using the concept, and by what we professed to be our innovation.  There was no question that our Bank On Yourself precepts were changing how people viewed investing and financial planning.

Little did we know…

[Read more…] “Introducing the Bank On Yourself Nation”

What side of the debt line are you on?

A couple months ago, I interviewed Dan Proskauer.  Dan lives below his means and has significant savings discipline.  But after decades of saving and investing and “doing all the right things” we’ve been taught to do, he realized he had nothing to show for it.

Bank On Yourself under a microscope

Dan is a vice president of technology engineering, very analytical, and he has spent hundreds of hours investigating .

His conclusion?  “The more I look into Bank On Yourself, the better it looks,” says Dan.  And he has implemented it for his family in a big way.

Dan shared the findings and conclusions of his research in a fast-paced interview.  I encourage you to check it out now, if you haven’t already done so.

But what if you’re in debt?

Dan told me he was talking to a friend who was complaining that he and his wife were always in debt and confessed, “There are things we want to do – we don’t want to deprive ourselves of life.  We can’t really afford them, but we do them anyway.”

Maybe you can relate to Dan’s friend’s situation.  It’s a seemingly endless cycle of living beyond your means, using high-cost borrowing, which means you have interest to pay – leaving that much less for everything else.

"Expenses rise to equal income"
C. Northcott Parkinson
Perhaps surprisingly, it has little to do with how much you make – people of all income levels suffer from this.  After all, as the late British economist, C. Northcote Parkinson noted…

Expenses rise to equal income”

It’s part of “Parkinson’s Law.” He also said that, “a luxury, once enjoyed, becomes a necessity.”  I can definitely relate to that, can’t you?

When Dan described to his friend how Bank On Yourself could be used to become his own source of financing and help free him from the endless cycle of debt, his friend’s first reaction was, “Yeah, it sounds great, but we could never do it – we have to get ourselves out of debt first.”

But as Dan explained more about it, his friend realized he didn’t have to wait.  He could start now and reduce or eliminate debt while at the same time increasing savings.  He realized Bank On Yourself could help his family move to the right side of the line.”

What side of the “line” are you on now?

What side of the line are you on?

If you’re on the “wrong” side of the line, you know it.  You’ve probably tried to get to the other side of the line, but it’s not an easy journey to make.

The good news is that if you’re truly fed up with your situation and ready to make a change, Bank On Yourself can help you get there. My New York Times best-selling book, is filled with stories of folks of all ages and incomes who have done just that.

One woman who shared her story in the book is Rose Hillbrand (Chapter 8). Rose knew the feeling of hopelessness that came with the crushing debt she had incurred.  The video below updates her inspiring story of how Bank On Yourself helped her move to the other side of the line.  It was filmed when I was in Ohio speaking to a standing-room-only crowd of over 250 people…

And, if you’d like to get a no-obligation Analysis and a referral to a knowledgeable Bank On Yourself Professional like the one Rose got referred to, who can show you how much your financial picture could improve if you added Bank On Yourself to your financial plan, simply request a free Analysis here.

REQUEST YOUR
FREE ANALYSIS!

Better than debt free?

Most financial experts say that the way to avoid getting into debt is to save up and pay cash for things.

They are wrong! There is actually a better way to purchase things.  I call it the “better than debt-free” method, and it actually beats paying cash.

How is that possible?!?  The conventional wisdom says that paying cash for things is the answer.  But this ignores an important, but little-known principle of finance…

you finance everything you buy

What do I mean by that?  Let’s say you’ve decided you’re going to beat the financing and leasing rackets by paying cash for major purchases.  So you start putting money aside into a savings or money market account.  When you hit your savings target, you pull your money out to pay cash for that item.

Rose on vacation in croatia

Now how much interest are you earning on that money?

You’re earning ZERO interest, of course.  Which is why financing, leasing and paying cash are all losing scenarios.

Fact:  You’re either going to pay interest to others to finance things, or you’re going to lose the interest or investment income you could have earned, had you kept your money invested instead.

When you Bank On Yourself, you do pay interest on your policy loans.  But the interest you pay ends up in your policy, as I explain in detail on pages 100-102 of my book.

But far more important, as Dan Proskauer puts it…

The Bank On Yourself method offers something you truly deserve, but may not have – financial security and peace of mind.  With Bank On Yourself, you can sleep well knowing your savings can only grow, never shrink.  With Bank On Yourself, you know, rather than hope.”

Bonus:  Some companies have a feature that allows you to continue to earn the exact same interest and dividends – even on the money you’ve borrowed!

However, only a handful of companies offer a dividend-paying whole life policy that meets all the requirements to maximize the power of this concept AND pay you the same interest and dividends, regardless of whether you’ve borrowed from your policy .

And if your policy isn’t structured properly, your cash value won’t grow nearly as fast, you could lose the tax advantages, or both.

When you request a free Analysis, you’ll get a referral to one of only 200 financial representatives in the country who have met all the rigorous requirements to be a Bank On Yourself Professional.

So, whether you’re on the side of the line that Dan Proskauer is on, and you want to strengthen your financial position and have predictability and peace of mind… or you want to be on that side of the line, chances are excellent that Bank On Yourself can help!

Why not find out today, if you haven’t already started to Bank On Yourself?REQUEST YOUR
FREE ANALYSIS!

More than 15 Million ‘Zombie Investors’ Unwittingly Allow Others to Feed Off Their Retirement Savings

By Pamela Yellen and Dean Rotbart

SANTA FE, NM  – Officially, neither the U.S. government nor the retirement planning industry keeps count of how many American employees entrust others to decide for them how and where to invest their hard-earned retirement savings.

Nonetheless, there is evidence that the number of these so-called ‘zombie investors’ – those who shuffle forward without using their brains – may already exceed 15 million individuals and is on a sharp upward trajectory.

The march has been fueled by a Greek chorus of government regulators, Wall Street executives, financial planners and media commentators who regularly opine that only by delegating the task of retirement investment to others can individuals assure the optimal long-term preservation and appreciation of their nest eggs.

“Effective management of a retirement portfolio can be a challenging task, requiring significant knowledge and commitment of time,” cautions the Securities and Exchange Commission.

Thus the SEC and the Department of Labor have instructed employers to offer their workers a variety of defined contribution retirement plans, most commonly 401(k)s, “designed to make it easier for investors” to avoid the headaches and inherent risks of managing their own retirement monies.

Easier, indeed!  But wiser and less risky?  Often not

Such full-faith reliance on administrators and funds managers is propagating gargantuan portfolio losses that could billow to hundreds of billions of dollars during the lifetimes of the current generation of U.S. workers.

Already many Americans believe that by the time they retire the Social Security system will be bankrupt

Already many Americans believe that by the time they retire the Social Security system will be bankrupt.

But what wage-earners have yet to comprehend is that many of the personal retirement accounts they are paying into annually at work will – regardless of how the markets perform over the
coming decadesstealthfully bleed each employee of tens of thousands, even hundreds of thousands of dollars that could remain theirs

[Read more…] “More than 15 Million ‘Zombie Investors’ Unwittingly Allow Others to Feed Off Their Retirement Savings”

Bank On Yourself, A Strategy for Any Economy?

With so much uncertainty in the economy and the stock market, people have been asking us how the Bank On Yourself method will hold up under various economic scenarios.

So, I thought you may find it helpful to have the answers to these seven commonly asked questions…

Questions:

  1. How safe is my money in a Bank On Yourself policy?
  2. What do the companies that offer Bank On Yourself-type policies invest in to protect and grow my money even in volatile times?
  3. How would a decline in the dollar affect this strategy?
  4. How will Bank On Yourself policies hold up if we have high inflation?
  5. How will Bank On Yourself be affected if deflation becomes a problem?
  6. Will I miss out if I put money in a Bank On Yourself policy and the stock market booms?
  7. What if I lose my job and can’t pay my premiums?

Here are the answers to these timely questions:

1. How safe is my money in a Bank On Yourself policy?

The companies recommended by Bank On Yourself Professionals are among the financially strongest life insurance groups in the world. They are, in essence, owned by the policy owners, which lets them focus on the long-term best interests of the policy owners, rather then the short-term demands of Wall Street.

They’ve paid dividends every single year for more than 100 years, including during the Great Depression.

Life insurance companies are strictly regulated and have four layers of protection:

    • They are audited regularly by the state insurance commissioner’s office (sometimes by dozens of states), to ensure they maintain sufficient reserves to pay future claims and are on solid financial ground
    • If a company gets into financial difficulty, the state insurance commissioners office can take over and run the company in the interests of policy holders – usually a failed insurer’s business is then taken over by another company
    • Most insurance companies are audited regularly by several independent rating companies
    • Additional policy owner protections may be available on a state-by-state basis
      • Over 90% of their portfolio is invested in investment-grade fixed-income assets
      • Less than 1% is invested in U.S. Treasury or other government debt
      • Their bond portfolios are well diversified across many industries and companies, with no investment representing more than 1% of assets
      • Due to their financial strength and reserves, they have the ability to hold on to any assets that may decline in value for many years until they recover
      • They had virtually no exposure to the risky investments that caused the market meltdown of 2008
      • They have NEVER missed paying an annual dividend to policyowners for more than 100 years, including during the Great Depression!
    • Bank On Yourself gives you an advantage over traditional investments, where you may not only lose the purchasing power of your money, you could also lose some or all of your hard-earned dollars, if the value of your investment tanks.
    • Bank On Yourself policies are designed to become more efficient every single year. The growth of both your cash value and the death benefit is guaranteed AND exponential, which in itself gives you some protection against inflation.
    • Your premium in a Bank On Yourself-type policy is fixed for life – it will never increase. So if inflation does become a factor, you’ll be paying premiums with ever cheaper dollars

2. What do the companies that offer Bank On Yourself-type policies invest in to protect and grow my money even in volatile times?

To find out what your bottom-line numbers and results could be with Bank On Yourself, request a free Analysis here

3. How would a decline in the dollar affect this strategy?

Answer:

No one knows for sure what direction the dollar will go. The current economic environment can change any time, and it can turn on a dime, as it has in the past. We are a global economy, and the actions of other nations impact us, as well.

In an article from MoneyCentral when the dollar was taking a beating in 2009 (MSN.com, on October 13, 2009), it was reported that central banks in numerous Asian countries were “actively buying dollars to check its fall against their currencies.”

Why do you think they would do that?

The reason given is that their exporters “can’t handle a drop in profitability and competitiveness,” if the dollar drops too far. Their prosperity has been in part due to a strong dollar, and “they aren’t going to give up all that easily.”

And, as Bloomberg.com reported on August 24, 2011, “a weak dollar may be one of the bright spots in the U.S. economy, and it could be the gift that keeps giving.” The article spelled out several ways the U.S. benefits from a declining dollar.

The point being that it’s not a black-and-white issue and no one can accurately predict what will happen, except that it probably won’t be what you imagine.

Since you must “park” your money SOMEPLACE, you would be hard pressed to find a safer, more advantageous place to put your dollars – in good times or bad – than in a Bank On Yourself-type policy. These policies have survived and even thrived for over 160 years in virtually every economic situation imaginable!

If you still think you have a better solution than Bank On Yourself, why not test it out by taking the $100,000 Challenge? If you’re right, you could pocket an easy $100K.

4. How will Bank On Yourself policies hold up if we have high inflation?

Answer:

The insurance companies recommended by Bank On Yourself Professionals have most of their assets in long-term investment-grade corporate bonds. When inflation drives up interest rates, bond interest rates typically increase, which can increase policy dividends as well. This is precisely what has happened during high inflation periods in the past.

In addition:

One value of having money in a policy is that you HAVE the money, it is guaranteed to continue to grow, and it will be available for you to use when you need or want it.

declining dollar

(Note – I am referring to the mathematical definition of “exponential growth.”)

declining dollar

Compare that with the term insurance policies so many financial “gurus” recommend – your death benefit stays level, which means it loses real value every single year.

Example: If you buy a $250,000 20-year term policy at age forty, and inflation averages only 4% a year during that time, your policy would lose 56% of its value. Your family would get less than half of what you signed on for!

Plus, you have nothing at all to show for the premiums you paid, unless you happen to die during the term of the policy (and studies shows only 1% of term polices ever pay a claim).

Would you like to see what “guaranteed, exponential growth” would look like if you added a custom-tailored Bank On Yourself policy to your financial plan? Simply request a free, no-obligation Analysis to find out.
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5. How will Bank On Yourself be affected if deflation becomes a problem?

Answer:

In a deflationary environment, income is king. So, investors would be struggling to find safe, dependable sources of income. Which means top-quality bonds which provide that income – and which make up a major portion of an insurers portfolio – would boom.

shrinking dollars

Bonds do well in a deflationary environment because as interest rates decline, the higher interest being credited on existing bonds become more valuable. The companies used by Bank On Yourself Professionals are some of the financially strongest life insurance groups in the world.

shrinking dollars

They have the reserves to be able to hold bonds until maturity, if necessary. So (older) bonds with a higher interest rate help offset (new) bonds that may be purchased at a lower interest rate.

Key Point: It’s important to remember that the guaranteed cash values will continue to grow – and the growth gets better every year, and there’s nothing you can do about it!

6. Will I miss out if I put money in a Bank On Yourself policy and the stock market booms?

Answer:

If you crave the adrenalin rush you get from the volatile roller coaster ride of stocks and other investments, the safe and predictable growth of Bank On Yourself may bore you silly.

We live in an instant gratification society and some people are looking for a quick fix or magic bullet – they want something they can put under their pillow before they go to sleep at night and wake up rich in the morning.

Well, for most of us, it ain’t gonna’ happen. How many more investment bubbles have to burst before we (really) learn that lesson?

Take a look at this side-by side comparison of the growth in the stock market versus Bank On Yourself over the long-term:

The chart on the right, showing the growth in a typical Bank On Yourself–type policy, is based on the actual growth I’ve received in one of my own polices so far, along with the projected growth based on the current dividend scale.

Remember that dividends aren’t guaranteed, but the companies recommended by Bank On Yourself Professionals have paid them every single year for more than 100 years.

Once credited to your plan, both your guaranteed annual increase and any dividends you received are locked in. They don’t vanish due to a market correction. Your principal is locked in, too.

hot investment

On the other hand, the chart above of the Dow over the past 38 years reveals long periods during which the market went nowhere and then a lengthy period of extreme volatility. There’s also the fact that the market can (and does) tank when you least expect it, ruining your best laid plans for a secure financial future.

hot investment

When you Bank On Yourself, there may be times when you feel “left out” – like when your friends start bragging about the killing they’re making in the latest “hot” investment that everyone’s jumping on – real estate, tech or oil stocks, commodities, currency, gold – you name it.

But Bank On Yourself is all about building a solid financial foundation and a secure future. You’re not going to see those thrilling spikes, but you’re also not going to have those unpredictable, heart-stopping losses that inevitably follow.

And that’s when you’ll thank your lucky stars for your Bank On Yourself plan

Besides, if an investment opportunity comes up that you want to take advantage of, you can do that by using equity from your Bank On Yourself policy. Chapters 7, 8 and 11 of my best-selling book are loaded with examples of people who did just that. And at least you’ll know you’ll get the same guaranteed annual increase and dividends on the money you borrowed, even if the “hot” investment doesn’t pan out.

Note: Not all companies offer a policy that has this feature, which is another reason to work with a Bank On Yourself Professional who knows how to properly structure your plan for maximum growth and knows which companies offer the policies that maximize the power of this concept. You’ll get a referral to one of only 200 advisors in the U.S. who have met the rigorous requirements when you request a free Analysis.

Let’s take a closer look at the typical growth pattern of a Bank On Yourself-type policy. This chart is from one of my own policies, and shows the growth I’ve already received, plus the projected growth, based on the current dividend scale.

No two policies are alike, because each is custom-tailored to the client’s unique situation and goals, so your growth curve will look different. But did you know that you can see what your growth would look like before you make a decision about whether to move forward? You’ll find out when you request a free Analysis here.
Request Your Analysis Button

7. What if I lose my job and can’t pay my premiums?

Answer:

The design of a Bank On Yourself-type policy gives you great flexibility. That’s because typically at least 50% of your premium will be directed into a “Paid Up Additions Rider” (PUAR), with the rest going towards your “base” premium. The PUAR is the little-known option that significantly turbo-charges the growth of your cash value. You could have up to 40 times more cash value, especially in the early years, when your policy includes this rider.

The kind of policies most financial “gurus” and advisors talk about grow much more slowly because they do not include this rider.

Because paying the premium that goes into your Paid Up Additions Rider is optional, in a pinch, you can cut back on or stop paying that premium. Some companies will even allow you to catch up on that premium later, as your financial situation improves.

You can also use your cash value and dividends to pay your base premium, when cash flow is tight.

However, in the first year or so, if you are unable to pay your base premium and you don’t have enough cash value to cover it, your policy could lapse, and you wouldn’t get back every dollar you put in.

Do you suffer from “paralysis by analysis”?

Paralysis by Analysis

I hear from people every day who tell me they want to add Bank On Yourself to their financial plan, but they haven’t quite been able to make the leap yet.

Paralysis by Analysis

They worry about what direction the economy is going. They want to see what the political climate will be. They want to have some kind of certainty in an uncertain world.

You’ve probably heard of “The Serenity Prayer” and this excerpt from it, which seems particularly appropriate today:

serenity prayer quote

There are some things we simply can’t control. Not taking action is actually deciding to let chaos and uncertainty rule our lives.

There may never be a “perfect” time to take the steps that can enable you to take back control of your financial future.

Bank On Yourself is not a magic pill, as I’ve said many times. I don’t believe there are any magic pills.

But what I do know is that Bank On Yourself provides a long-term solution to a long-term problem. And the only regret expressed by most people who use it is that they didn’t know about it sooner.

If you haven’t already started to Bank On Yourself, request your free Analysis now – and start taking back control of your financial future today.

What If Suze Orman and Dave Ramsey Discussed Bank On Yourself?

It seems like every week now, someone writes us to let us know they forwarded one of my blog posts to Suze Orman and Dave Ramsey, or urged them to take me up on my standing offer to debate them about Bank On Yourself.

As I’ve said numerous times, I know Suze and Dave have helped many people get out of debt and get their financial act together.  However, there are two critical areas we strongly disagree on.

Neither of them has taken me up on the offer to debate me – yet. But I can’t help but wonder if they’ve ever actually checked into Bank On Yourself.

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What would it be like to be a fly on the wall as Suze and Dave discuss Bank On Yourself? No need to wonder any longer, as our hidden video camera captured it all. Just click on the play button…

In case you’re wondering, the statements made by Suze and Dave in the video about why you should invest in mutual funds and why you should avoid whole life insurance are direct quotes from their books.

And Suze really did tell the New York Times she doesn’t follow her own advice about investing in the market.

[Read more…] “What If Suze Orman and Dave Ramsey Discussed Bank On Yourself?”

Dust off your Dow 10,000 cap again

As I write this, the Dow is flirting yet again with the 10,000 level – something it has done dozens of times since it first closed above that threshold more than 11 years ago!

Dow 10,000 Commorative Hat

People are understandably nervous, as evidence abounds that the economic recovery is faltering.

An astonishing fact was revealed in a cover story in “The Hulbert Financial Digest” July issue, titled, “Slow and steady wins the race.” The digest is an independent rating service that has tracked investment newsletters for the past 30 years.

[Read more…] “Dust off your Dow 10,000 cap again”