When the stock market is going up, investors love it. When it’s going down, not so much.
Many investors lie awake at night wondering, “Is there any good alternative to this crazy roller coaster? Is it possible to successfully and confidently grow my nest egg without playing in the Wall Street Casino?”
If you’re one of those folks who thinks saving for retirement shouldn’t have to be so unpredictable, read on! There is a safe and proven alternative to Wall Street. It offers guaranteed growth, a predictable income stream, tax advantages, and very little in the way of government interference.
Millions have found their investment alternative of choice in high cash value dividend-paying whole life insurance.
Huh? Life Insurance as an Investment Alternative to Wall Street?
Some financial advisors say whole life insurance is complicated, and that “you should never invest in something you don’t understand.” … Then they try to sell you stocks, bonds, mutual funds, and EFTs that most laypeople can only begin to truly grasp!
The Simplicity of Dividend-Paying Whole Life Insurance
The concept behind a dividend-paying whole life insurance policy is extremely simple. It’s based on five easy-to-understand ideas:
1. Your Risk Is Minimized by the “Pooled Risk” Approach of Insurance
This timeless concept is at the foundation of all forms of insurance. In its simplest form, policy owners pay an insurance company a relatively small sum of money in advance. This is called a “premium.” In exchange, they are covered for a potentially much large expense later. In this case, they receive an agreed-upon amount to cover the costs and loss of income related to the death of the insured, which is called the “death benefit.”
2. You’re Guaranteed to Have “Level-for-Life” Premiums with a Whole Life Insurance Policy
People need to save between 10% and 17% of their income if they plan to retire at 65 but are putting away only 6-8% of their income, according to a new study by the Stanford Center on Longevity. That’s only half of what they should be saving.
What percent of your household income are you saving? It’s important to be brutally honest with yourself because a shortfall of the magnitude most Americans will experience means more than just not being able to live the retirement lifestyle you dreamed of. It may mean…
Having to choose between putting food on the table and the medical care you need
Not being able to afford to pay for heating and air conditioning
Having to rely on the charity of your children
Foregoing travel and even life’s little luxuries
I doubt you worked hard all your life so that you can scrimp and sacrifice just to get by in retirement.
They are the ultimate conspiracy theories – the beliefs that the earth is flat and that economies are not cyclical.
The Flat Earth Society (a movement that is active and growing today) finds the notion of a horizontal earth far more plausible than a round planet perched on an axis. To their members, gravity is an illusion and objects are not pulled down, but rather continually accelerate upward.
Adopting this notion requires one to reject all prevailing scientific wisdom and research. And despite centuries of empirical evidence, some Flat Earthers believe that one could literally walk off the end of the world.
Those who think the current bull market will continue to rise without a crash or major correction are equally illogical. Despite generations of economic theory, Blind Faith Bulls have sunk most of their net worth into equities on the unquestioning belief that stocks will climb unabated.
Flat Earthers and Blind Faith Bulls Share a Common Suspension of Disbelief…
Do “Bank On Yourself” and “scam” even belong in the same sentence? To read or listen to some self-appointed experts, yeah, they do belong in the same sentence. It’s difficult for the naysayers to recognize such traits as patience, discipline, and self-restraint – the very traits that are prized by those who use and benefit from the Bank On Yourself method of safe wealth-building.
The naysayers would rather say, “It sounds too good to be true, therefore it is too good to be true.” But if something is “too good to be true” just because it sounds “too good,” then what about radio and television, motion pictures, airplanes, and even ballpoint pens? At one time or another, every one of those sounded too good to be true.
When something sounds too good to be true, examine it carefully and thoughtfully. That’s much smarter than running away from it with a closed mind.
Why Do Some People Dismiss Bank On Yourself As a Scam?
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!
It caused quite a stir when the man who is credited with being the “father of the 401(k),” Ted Benna, recently announced that he’s put a substantial part of his own money – “probably the biggest part of my wealth” – into what is most commonly known as a Bank On Yourself plan.
Benna is credited with finding a way to capitalize on the tax code to create a way for working men and women to supplement the pension plans that many workers used to have. Those pensions plans have been disappearing, and 401(k)s were created to hopefully help pick up the slack.
But over the years, Benna watched Wall Street and Big Business pervert the 401(k) in ways he couldn’t possibly predict.
In a recent interview, Ted Benna discussed three reasons why we should be very leery of 401(k)s and IRAs:
The government may repeal the 401(k) and IRA, so you won’t be able to put any more money pre-tax into these accounts, or the amount you can put in will be drastically reduced (Congress considered doing that again last year!)
Benna believes the next stock and bond market crash is imminent and could wipe out 40% of the typical portfolio
A balance sheet shows you at a glance what you own, what you owe, and what the difference is. The difference is your “net worth” – and the greater your net worth, the more you’re in a position to meet life’s financial uncertainties.
If you owe more than you own, your net worth is a negative number, and that’s an early indication of possible financial problems or bankruptcy in your future.