Financial Planning

Should You “Ride Out” the Volatile Stock Market?

June 8th, 2023 by Pamela Yellen | Leave a Comment

Both the Dow and the S&P 500 were back to where they were more than two years ago, as of May 31st. It’s been a stomach-churning roller coaster ride along the way.

The S&P 500, however, has been on a tear, up 10% this year. Maybe you’ve been looking at your investment and retirement account balances and wondering why you’re not seeing that kind of gain.

That’s because just five technology companies drove 96% of those gains!

According to the Motley Fool, nearly half of the stocks in the index were negative for the year on May 31. (MarketWatch just called the S&P 500 “ridiculous” and questioned whether you should bet your retirement on the fortunes of a small handful of stocks.)

Of course, the financial “experts” insist that the only way to grow a sizable nest egg is to invest in the stock market over the long term.

But is that really true?

If it was, how do you account for the typical equity mutual fund investor earning a meager 4.3% annually for the past 30 years after adjusting for inflation?

Yet most people we’ve surveyed say they wouldn’t endure the ups and downs of the market for less than a 7% annual return.

Investors who use asset allocation – long considered a strategy that gives you the best chance of coming out ahead – have had essentially no growth over the last 30 years after adjusting for inflation.

And if you thought fixed income investments were a safe bet, think again – they’ve actually lost ground even before factoring in inflation.

These statistics from the Dalbar 2023 Quantitative Analysis of Investor Behavior paint a sobering picture. It’s a stark reminder that the stock market is a dangerous place for money you’re counting on for a secure retirement, funding a college education, or other financial goals you have.

Volatility May Be Here to Stay Thanks to the Economic Headwinds We’re Facing

To list just a few…

Publicly traded companies’ revenues are sliding
Inflation remains stubbornly high
Lending conditions have tightened significantly, and recessions over the past 30 years have closely tracked banks’ willingness to lend money
China’s economic troubles can have significant consequences for the markets and growth in the US

I bet you can add one or two to this list.

At the same time, consumer debt has skyrocketed, averaging $101,915 per household! Meanwhile, the savings rate has dropped precipitously.

Don’t Let Market Volatility Dictate Your Destiny – You Have the Power to Take Control of Your Financial Future!

The Bank On Yourself safe wealth-building strategy puts the lie that you must risk your money to grow a sizable nest egg to rest.

It’s a supercharged variation of an asset that’s grown in value every single year for more than 160 years, including during every pandemic, the Great Recession, and the Great Depression. It comes with an unbeatable combination of advantages and guarantees, including:

Your money is guaranteed to grow by a larger dollar amount every year – regardless of what happens in the market or the economy
You can even know how much money you’d have at any point in time – guaranteed – before you decide if you want to move forward with this strategy. Just request a FREE, no-obligation Analysis here:

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Both your principal and growth are locked in, and don’t go backward when the market tumbles
You’ll enjoy growth that’s significantly greater than you could get in a CD or money market account, but without taking on greater risk to do it
You have complete control of and access to your equity in the plan to use however and whenever you choose, so you can weather the challenges life unexpectedly throws at you (try doing that with your 401(k) or IRA!)
You can access both your principal and growth with ZERO taxes due under current tax law, which lets you avoid unpleasant tax surprises later
You can use your money in the plan to eliminate banks and finance companies from your life and become your own source of financing

Does Adding the Bank On Yourself Strategy to Your Financial Plan Make Sense for Your Situation?

To find out how to reach your financial goals without taking any unnecessary risks, request your free Analysis here now.

There’s no cost or obligation, and you’ll get a referral to a Bank On Yourself Professional who can answer any questions you may still have.

Now is the perfect time to truly diversify your retirement savings strategy and explore alternatives that give you guaranteed growth, safety, liquidity, tax advantages, and financial certainty.

In a world of uncertainty, knowledge truly is power. So request your free Analysis here NOW, while you’re thinking of it:

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Is There a Safer Place for Your Money Than in a Bank?

March 21st, 2023 by Pamela Yellen | Leave a Comment

The problems at Silicon Valley Bank, Credit Suisse, and First Republic Bank are fueling anxiety for people who want to make sure their money in banks and money market funds is safe.

Adding to the fear that this may just be the tip of the iceberg is that banks borrowed a record amount from the emergency last-resort support the Federal Reserve set up in the last week.

So, it’s not surprising people want to know how safe their money is in a Bank On Yourself plan. Read on for the answer. And, since you must “park” your money someplace, I’ll also explain why 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 plan. [Read more…] “Is There a Safer Place for Your Money Than in a Bank?”

Why “10 Times Your Income” Isn’t a Smart Retirement Goal

February 22nd, 2023 by Pamela Yellen | Leave a Comment

ChatGPT has been making headlines since it launched last year and gained 1 million users in the first week.

If you’re not familiar with ChatGPT, it’s an artificial intelligence computer program that generates human-like answers to almost any question you ask.

So I decided to conduct a little experiment and ask it a simple question:

How much do I need to retire?”

Here’s what the “robot” told me:

The 5 Biggest Financial Threats You Face in 2023

January 9th, 2023 by Pamela Yellen | Leave a Comment

As the New Year gets underway, it’s good to set goals and make plans – but it’s also important to review the biggest threats you face.

Here are the top 5 threats to your financial future in 2023…

Threat #1: 2023 Recession

If you had money in the stock market, you know how bad 2022 was. The S&P 500 lost nearly 20%, and the average 401(k) lost 22.9%. Seeing one-fifth of your life savings vaporize in a single year is a hard pill to swallow.

And after having the worst year in the markets since the 2008 financial crisis, it’s only natural to want to put that behind us and move on. However, what we want to happen and what is happening are two different stories. Economists surveyed by Bloomberg see a 70% chance of a recession in 2023 – which means it’s very likely things will get worse before they get better.

Threat #2: High-Interest Rates

The Secret to Eliminating Your Financial “Icks” in 2023

December 12th, 2022 by Pamela Yellen | Leave a Comment

Two-thirds of Americans intend to make a financial New Year’s resolution for 2023, but only 20% are confident they’ll be able to keep their resolution.

That’s according to a new survey from The Ascent, a Motley Fool service. It’s not surprising why. It’s been a very challenging year, and everybody’s got a case of the financial “icks.”

In a year that many would just as soon forget, a few of the “low lights” include…

Inflation hit a 40-year high
Americans have gotten themselves into a savings crunch with mounting piles of debt
The Federal Reserve continues raising interest rates at a dizzying pace, and market volatility has spiked as investors try to second-guess the Fed’s next move
The stock market entered its longest bear market since the 2007-2008 crash
The once-hot housing market has fallen off a cliff
The crypto bubble has popped
The war in Ukraine has gone on longer than anyone expected, impacting supply chains and more

A Majority of People Worry about Money Daily, and Many Lose Sleep Because of It

Are “Termites” Destroying Your Financial Foundation?

August 24th, 2022 by Pamela Yellen | Leave a Comment

Chomp… Chomp… Chomp…

That’s the sound of termites destroying your financial foundation.

But most people aren’t aware it’s happening. And it’s claiming more victims than you might think.

Of course, you’re aware of how inflation is eating away at the value of your dollars. You feel it at the grocery store, the gas station, when you pay rent, and just about everywhere you look.

But, if, like many Americans, you own a term insurance policy, personally or through your workplace, it might not even be worth the paper it’s printed on when you need it.

Inflation has been running at a 40-year high, currently around 9% per year. But let’s say the Federal Reserve gets it right and brings inflation down to 4% annually in the next few years.

Imagine that you have a $500,000 20-year term policy. In the event of your death, the benefit your loved ones would receive will lose up to 56% of its purchasing power.

Shaky Economy Stressing You Out? Here’s What to Do…

July 8th, 2022 by Pamela Yellen | Leave a Comment

Feeling like a deer in the headlights right now? You’re not alone! Soaring inflation, stock market crashing, a pandemic that just won’t go away – and the only light at the end of the tunnel looks like the oncoming train of recession! We’re all getting squeezed from both ends…

It’s costing you 60% more than last year to fill up your gas tank.

Last month, you thought about buying a new home. This month mortgage rates have priced you totally out of the market.

Global supply chain glitches mean that things you bought all the time are almost impossible to find. (Seriously, a sriracha hot sauce shortage?!?)

Your low-interest charge cards are projected to average 20% in a couple of months – and the high-interest rate ones will be off the charts.

A few months ago, you were sitting on your big, juicy 401(k) or IRA and thinking of early retirement. Now, you’re praying they’ll let you keep your job when you’re 82.

Not long ago, you looked at your retirement account balance and felt euphoric. A humongous asteroid could be heading toward earth and the market would still go up! I can relate. [Read more…] “Shaky Economy Stressing You Out? Here’s What to Do…”

How to Shield Yourself from Market Volatility, Inflation and Interest Rate Woes

March 9th, 2022 by Pamela Yellen | Leave a Comment

Stock market volatility has returned with a vengeance, as this chart of the Dow over the last 3 months starkly illustrates.

We’re facing a whirlwind of economic challenges we have little or no control over. Here are the top 5 currently contributing to the volatility:

Challenge #1: Inflation has hit a 40-year high

That’s hammering consumers, wiping out pay raises, and reinforcing the Federal Reserve’s decision to rip off the band-aid and raise borrowing rates multiple times this year alone, which some economists fear will trigger a recession.

Challenge #2: The pandemic and rock bottom interest rates pushed home prices up at a head-spinning rate

How to Avoid Depleting Your Retirement Nest Egg

November 23rd, 2021 by Pamela Yellen | Leave a Comment

The #1 retirement fear of Americans is running out of money. AARP reports that 50% of Americans share that fear.

And with good reason, because the average 65-year-old (the average retirement age in the US is 61) will outlive his or her savings by almost a decade, according to the World Economic Forum. Unfortunately, many will be forced to choose between putting food on the table or paying for life-saving medicine and may end up being dependent on their children.

We spend our working years hustling to build up our retirement nest egg. We assume that when we retire, we’ll supplement Social Security by withdrawing some of the principal. But no one can give us surefire guidance on how much we can safely take from our nest egg each year. In fact, William Sharpe, winner of the 1990 Nobel Prize in Economic Sciences, said retirement income planning is “the hardest and nastiest problem in finance.”