Personal Finance Blog for Retirement and Investment Advice

No new taxes?!?

Did you know that the U.S. income tax was first instituted in 1913?

I recently came across a copy of the very first IRS Income Tax Form 1040 our forefathers were required to file and wanted to share it with you.

1913 Form 1040 Tax Return
1913 Form 1040 Tax Return

But BEFORE I show you the rest of it, take a guess at the answers to these four questions:

  1. What percentage of taxable income do you think the average family paid back then?
  2. What was the top percentage paid by the very wealthiest Americans?
  3. How many pages long do you think that first tax return was?
  4. How many pages were the instructions needed to complete the form?

The answers to these questions may shock you!

[Read more…] “No new taxes?!?”

Martin Weiss says Bank On Yourself "is a great book"

Martin Weiss, Ph.D.
Martin Weiss, Ph.D.

Finance and investment expert and New York Times best-selling author, Martin Weiss, Ph.D., recently interviewed me. You can listen to this fast-paced and timely interview by just turning up your speakers and click here.

Dr. Weiss wrote the subscribers to his “Money and Markets” newsletter about how he had just read my book and felt it has excellent advice on “coping with low investment income in tough times.”

So, I hope you enjoy our 35-minute interview.

You can get your personal copy of my book at a 35% discount here.

An alternative to an active retirement?

Humorist Dave Barry proposed one possible solution to the retirement crisis:

The key to eliminating retirement uncertainty is to plan carefully, save as much as possible, invest wisely, and then, at age 65, get hit by a bus.”

A rather grim solution, to be sure, although one subscriber to my Bank On Yourself Ezine did write me to explain that his retirement “plan” was to make sure he died on the day he retired.

Just when I thought I’d heard every possible bizarre way to ensure retirement security at a time when most people’s nest-eggs have been scrambled, I got an email that flabbergasted me…

[Read more…] “An alternative to an active retirement?”

Government Motors?

Remember the old jokes about what it would be like if Microsoft built cars?

government-motors
government-motors

For no reason whatsoever, your car would crash twice a day… the airbag would say “are you sure?” before going off… executing a maneuver would occasionally cause your car to stop and fail to restart and you’d have to re-install the engine…

Now imagine what it’s going to be like when the government makes your car… coming soon to a dealership near you!

Bank On Yourself book hits major bestseller lists: Wall Street Journal, #1 USA Today, #1 Amazon

On The Air

The secret is out: Pamela Yellen’s first book on the Bank On Yourself concept is a major best seller, hitting #1 on the USA Today and Amazon best-seller lists, and is also a New York Times, Wall Street Journal and Publishers Weekly best seller.

On The Air

The book is flying off the shelves, and the publisher rushed to print more copies, which will soon flood all the major book sellers, as well as Target, Costco, Wal-Mart and other outlets to fill demand for the book. [Read more…] “Bank On Yourself book hits major bestseller lists: Wall Street Journal, #1 USA Today, #1 Amazon”

What would it be like to not even care what the stock market is doing?

Here’s a few of the comments I’ve recently received from folks who use Bank On Yourself to reach a wide range of financial goals and dreams.

The first comes from Devin Smith, a subscriber from Colorado who sells advertising (reprinted with his permission):

The Bank On Yourself program is fantastic! I received my first (annual) statement this month and couldn’t believe the growth in the policy is UP, not DOWN! And my policy has been in place during one of the worst stock market/financial meltdowns in history! I am absolutely sick when I receive my quarterly statements for my 401(k) – I’m down almost 50% in the past year.

I plan to start another Bank On Yourself plan as soon as I can. Thanks for introducing me to this wonderful financial tool.”

[Read more…] “What would it be like to not even care what the stock market is doing?”

Stock market investing myth exploded!

Do you believe it’s true that you have to risk your money in order to grow a sizable nest-egg?

If so, you’re not alone – that’s the conventional thinking we’ve long been brainwashed to believe. But a shocking new study reveals just how fundamentally flawed this belief is…

For the last 40 years, ordinary long-term treasury bonds have outpaced investing in the stock market! This is according to a just-released study in the Journal of Indexes (May/June 2009 issue) by Robert Arnott.

So, what does that mean?

It means that for the past four decades, the only “rewards” investors have received for taking the extra risk of stocks and equity mutual funds are sleepless nights and broken dreams of retirement”

Other revelations in the study include…

[Read more…] “Stock market investing myth exploded!”

Bank On Yourself featured on nationally syndicated TV

I was recently interviewed about Bank On Yourself on the nationally syndicated TV Show, Daytime.

Check it out – it’s only 4 minutes long. My friends have been known to call me “motor mouth”, and I can tell you that paring the message down to fit into a two-to-four minute time frame for the many TV and radio interviews I’ve been doing isn’t easy, but I’m getting better at it. Check it out here and let me know what you think:

Think you have to risk your money to get big returns? Hogwash!

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.”

InflationThe 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.

[Read more…] “Think you have to risk your money to get big returns? Hogwash!”

What the financial gurus think they know about Bank On Yourself that just ain’t so

Dan Kennedy

One of my most influential mentors (Dan Kennedy) says,

If you don’t offend somebody by noon each day, you’re not doing much.”

So I want to thank Danny Snyder, whose post to this blog you’ll find below (exactly as he submitted it), for confirming that I am indeed doing something:

First of all using the words “money on steroids” immediatly [sic] puts you in the liar and non-trustworthy category. If you put in $5314.44 and your cash value is $2937.18 you need some ritilin, you are A.D.D. Dave Ramsey (who is in a category way above the likes of you and Suze Boreman) knows of what he speaks. Millions of people have changed their lives due to Dave’s advice. You need to tread very lightly, if you want to succeed and prove yourself. Think… before you tear down people you do not know. I do actually Bank on Myself.

Your [sic] a scam!

Danny Snyder

On this website, I have stated that I agree with many of the basic principles taught by the financial “gurus” like Dave Ramsey and Suze Orman.  And I know they have helped turn around the financial lives of many.

However, there are two critical areas we differ on…
[Read more…] “What the financial gurus think they know about Bank On Yourself that just ain’t so”