We received dozens of insightful entries for our “Bank On Yourself vs. savings account” contest. They confirmed – once again – that we have a whole bunch of very smart subscribers!
The contest even inspired one reader to write a poem!
I’ve been studying these topics full time for nearly a decade now, and even I learned some new things. So, whether you use the Bank On Yourself method or not, or you consider yourself to be an expert or a novice at understanding money and finances, you should read this!
You will undoubtedly learn some things you didn’t already know!
There were so many great contest entries, it was really tough for our team to single out only the five best entries, and the winners of the iPod Touch, Amazon.com gift certificate and more are listed below.
There have been a spate of articles in the financial media recently encouraging retirees to catch up on savings shortfalls by investing as much as 40-60% of their nest egg in the stock market.
These “experts” promote the concept as if it makes perfect sense to make up for your gambling losses by doubling your bets.
To me, it’s appalling that anyone would advise those who are already retired to gamble their life’s savings on the volatile, risk-filled world of Wall Street.
But my message – that Wall Street is unstable and potentially as explosive as nitroglycerin – is really not age specific. The stock market can (and will) blow up in your face at any age.
For most Americans – and Wall Street goes to great lengths to hide this truth – the stock market is a promise unmet.
The success myth hyped by the financial services industry is like a casino showcasing its big winners, without mentioning that the prize pool derives from the much larger pool of losers who generate huge profits for the operators, but who themselves walk away worse off than if they had stayed at home.
Money isn’t the only price that the Wall Street casino extracts from most investors
James Rick, also known as “Mr. Full Potential,” is the founder of FullPotential.com and author of “Unleash Your Full Potential.” James is a lifestyle strategist for living your best life, cutting costs and building wealth through what you love! So check out his other terrific interviews!
There is something occurring right now that concerns me… and ought to concern you, too. So I urge you to pay close attention to this blog post…
Individual investors are moving into stocks and riskier investments
Since the financial crisis, and until very recently, individual investors (that’s you and me) largely avoided stocks. But now, as the stock market continues on a sharp rise that is already one of the steepest in history, people begin to fear they will miss out. According to a recent article in the Wall Street Journal1….
Stock-market fever is one of your biggest enemies as an investor… It’s pure instinct. We’re hard-wired to run with a stampeding herd and to seek safety in numbers.”
The article advises that you shouldn’t trust the crowd, because, “they’re usually wrong. Time and time again, studies show the public invests at the wrong time – they get bullish and buy after shares have risen, and then panic and sell after they have fallen.”
Just as they did before the housing bubble burst and just like they did before the dot.com crash. And just like they have done throughout history.
The article notes that, “too many TV market pundits talk like they’re on ESPN. It gives the stock market a phony air of urgency and excitement.” And it reminds us that, “if you’re buying, higher stock prices are bad, not good.”
Wall Street lost more than 40% of our money -TWICE – in the past decade
How can you be sure they’re not about to do it again?
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
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.
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.
The Dow has dropped below 10,000 several times recently – a level it first reached more than eleven years ago and has since bounced over and back an astonishing 63 times!
Millions of people who were counting on their homes to help fund their retirement now have no equity to count on, because they owe more than their homes are worth.
Credit is still extremely tight for both businesses and consumers, underscoring just how little control we have when we have to rely on other people’s money.
As we face continuing economic challenges, many people are wondering… what does the future hold?
Ever hear the old saying, “Change is the only constant?” Today that is clearly true more than ever! Stephen Covey, author of the run-away best seller, Seven Habits of Highly Effective People, tells the following story:
A question we are getting frequently right now is how safe is your money in a Bank On Yourself plan if the debt crisis in Europe continues and spreads to the United States?
Let’s start by answering the question…
Life insurance companies are highly regulated and required to maintain sufficient reserves to ensure they can pay all future claims.
They are regularly audited by the state insurance commissioners’ offices, and sometimes by dozens of states, to ensure they are on solid financial ground. And a multi-layer safety net exists to assure your money in a life insurance policy is secure.
You may be wondering, “What about AIG?” Many people missed the fact that AIG’s problems were caused by a holding company, not its life insurance subsidiaries. Their insurance companies were walled off from the problems, have always been solvent and did not receive a bailout.
They enjoy some of the strongest surplus positions in the industry, approximately double the industry average.
These companies are, in essence, owned by policyowners, rather than stockholders, which allows them to focus on the long-term interests of policy holders, rather than the short-term demands of Wall Street.
Here’s what the companies used for Bank On Yourself invest in:
If there’s a different financial product or strategy that you think can match or beat the Bank On Yourself method, I encourage you to take the $100,000 Challenge. If you’re right, you could pick up an easy $100K!
FAQ #2: How does Bank On Yourself let you recapture every penny you pay for major purchases like cars, vacations, business equipment or a college education?