The Secret to Making Your Financial New Year’s Resolutions Stick – You!

By Pamela Yellen and Dean Rotbart

Perhaps this year, finally, you will get your financial house in order.  That means roping in spending, slashing debt, maximizing income and choosing investment and savings vehicles that actually deliver what they promise.

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Even if you’ve fallen back on your New Year’s Resolutions, it’s not too late to get back on track. Learn how by watching this fascinating interview of Pamela Yellen on Good Day New Mexico
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Even if you’ve fallen back on your New Year’s Resolutions, it’s not too late to get back on track. Learn how by watching this fascinating interview of Pamela Yellen on Good Day New Mexico

Hardest of all, it means sticking to your New Year’s resolutions beyond Valentine’s Day, past Mother’s Day and July 4th, all the way through Labor Day, Thanksgiving, and yes, New Year’s Day 2012.

Remember, past failures are no guarantee of future failures!  In fact, before they ever succeeded, research shows that most successful New Year’s goal-setters faltered for five consecutive years or even more.

You are far more likely to be successful if your resolve comes from within, instead of being imposed on you by outside forces.

This could be the year that you surprise everyone – perhaps most of all, yourself – by keeping and maintaining your New Year’s resolutions.

New Year's Resolutions
New Year's Resolutions

For the roughly 45% of us who determinedly set off on January 1st with a full head of steam, but run out of inspiration before February 14th, a subset of Americans – about one out of every five – do push ahead and do achieve their stated goals.

Whether the resolution is to lose weight, exercise more, quit smoking, drink less or spend less, for a small percentage of the population, New Year’s Day is the very trigger they require to set off on their final journey towards – or away from – a lifelong pattern of behavior that previously seemed unattainable.

7 Secrets to Get Your Financial House in Order – Permanently

  1. We all have it within us to modify our behavior
  2. Real, permanent change is usually driven by your own desire, rather than by the pressure others exert on you
  3. Have a heart-to-heart talk with yourself. Where are you right now… and where do you want to be?
  4. Enlist the support of one or more allies or a coach to encourage you and help keep you on track
  5. Consider using websites that give incentives – and disincentives – for sticking to or breaking your commitments (such as a GoalPay.com)
  6. Don’t wallow in self-blame when you fail – put aside your emotions and plot a logical pathway back
  7. Don’t set yourself up for failure by insisting on an all-or-nothing change. Learn from the past, realize where you made errors and build on them like stepping-stones

What does it take to be one of the successful few?

[Read more…] “The Secret to Making Your Financial New Year’s Resolutions Stick – You!”

Sure-Fire Results: How Old Sensibilities Are Proving a Potent Balm for Modern Personal Finance Ailments

The ’10/10/10′ Formula of Savings Rescues Many Overstretched Family Budgets

Executive Summary: Most modern Americans overspend, assume too much debt, and fail to invest wisely for retirement.  Tim Austin, a leading proponent of ‘old-fashioned’ spending and savings strategies, recommends a time-tested 10/10/10 financial formula: saving 10% of gross income for the near-term; 10% for the mid-term; and setting aside 10% for the long-term.  Austin’s favorite savings tool is specially-designed dividend-paying whole life insurance policies such as those structured by Bank On Yourself’s specially trained and Professionals.

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By Pamela Yellen and Dean Rotbart

Even back in 1975, the year comedian Woody Allen wrote, directed and starred in the movie Love and Death, the perception of whole life insurance as a savings instrument designed for fuddy-duddies and masochists was already commonplace.

There are some things worse than death”

…deadpans the film’s protagonist, Boris Grushenko, played by Allen…

If you’ve ever spent an evening with an insurance salesman, I’m sure you know what I mean”

[Read more…] “Sure-Fire Results: How Old Sensibilities Are Proving a Potent Balm for Modern Personal Finance Ailments”

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”

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”