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
“Bank On Yourselfers” Joni and Dave Schultz
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.
“Bank On Yourselfers” Joni and Dave Schultz
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.
Scary Fact #1: 40 percent of all workers plan to delay retirement
61% blamed the decline in their 401(k) for this. And a majority said they’re prepared to spend less in retirement according to a new survey by Towers Watson.
A recent study revealed Boomers and Generation X’ers are coming up frighteningly short on their retirement savings.
And when nursing home and home health care costs are added in, that shortfall doubles, according to a study released this month by the Employee Benefit Research Institute (EBRI).
Nearly half of both Baby Boomers and Gen X’ers won’t have enough funds to cover living expenses, according to an EBRI report released earlier this year.
Scary Fact #3: New 401(k) disclosure rules don’t put a lid on fees
New regulations announced this month by the Department of Labor will require better disclosure of all the hidden fees you’ve been paying in your 401(k), starting in January, 2012.
But, for all the noise on Capitol Hill about this horrifying issue, NO regulations have been proposed or even discussed to reduce the confiscatory fees you pay!
Even a one percent higher fee can cost an employee $64,000 or more in realized savings by age 65, according to the DOL’s own estimates.
The 401(k) situation is so bad that you will probably need to get an average annual return of 8% to 10% – just to break even!
Not convinced? Check out the shocking exposé Pulitzer Prize-nominated journalist Dean Rotbart and I recently co-wrote on this.
Scary Fact #4: Hope is not a strategy
We’re headed for a retirement train wreck, and it’s going to get really ugly over the next 15 years” – Rob Arnott, a widely respected market strategist
In a well-researched article in this month’s Fundamentals Index Newsletter, the authors point out that the return assumptions built into pension and retirement plans today assume that “everything will go right.” They’ve relied on unrealistic assumptions. The authors also go on to demonstrate why returns are likely to be much lower in the future.
We’re relying on hope. But hope is not a strategy; hope will not fund secure retirements. We’re planning for the best and denying that worse can happen. It makes far more sense to hope for the best, with plans for realistic outcomes – and contingency plans for worse ones.”1
Scary Fact #5: 40 percent of retirees were forced out of work early
Remember the scene from the 1983 movie classic, “The Big Chill,” where the character played by Jeff Goldblum asks…
Have you ever gone a week without a rationalization?”
Well, many boomers today are trying to rationalize away the fact that they won’t be able to retire when and how they had planned by trying to convince themselves that retirement is overrated. They now talk about continuing to work in some capacity as long as they can.
While there’s no question that this can give you more of a sense of purpose and fulfillment and keep you from dying of boredom, the reality is that many people are being forced to retire earlier than they can afford to. Job layoffs and health issues are the primary reasons for this.
I love what I do, and I hope to be doing it for a long time. But shouldn’t the decision to retire – or not – be a matter of choice, not necessity?
The reality is that you may not have a choice. Nearly four in ten retirees say they were forced out of work earlier than they’d planned because of layoffs, poor health or the need to take care of a loved one, according to EBRI.
Scary Fact #6: All Bank On Yourself policy owners received a guaranteed increase and a dividend – again
I was just checking to see if you were paying attention! That’s not a scary fact (unless you’ve been procrastinating on starting to Bank On Yourself).
Whole life insurance is an asset class that has increased in value during every stock market decline and every period of economic boom and bust for more than a century.
A dividend-paying whole life policy grows by a guaranteed and pre-set amount every year. In addition, the growth is exponential, meaning it gets better every single year with no luck, skill, or guesswork required to make that happen.
A Bank On Yourself-type policy includes an option that turbo-charges the growth of your cash value in the policy.
You can know (rather than hope) the minimum guaranteed income you can take from the policy in retirement.
And, you can access the money in retirement with little or no tax consequences, under current tax law.
You can also have access to capital when you want it and for whatever you want. No nosey credit apps or pledging your first born.
So, if you haven’t added Bank On Yourself to your financial plan yet, doesn’t it make sense to request a free Analysis and find out what your bottom-line numbers and results could be?
There’s no obligation, it’s not scary, and no one’s going to twist your arm! If you haven’t already started to Bank On Yourself, please take the first step today and take back control of your financial future! REQUEST YOUR FREE ANALYSIS!
1. “Hope is Not a Strategy,” Fundamentals Index Newsletter, October 2010 Issue
What started in 2002 as a quest to educate Americans and help them achieve financial security and peace of mind using the Bank On Yourself method came to uncover an all-American treasure more exquisite than I ever imagined.
The revelation was gradual.
At first, my concentration was tightly focused on helping people reach their savings and retirement planning goals and objectives using a seldom-trumpeted, but proven variety of whole life insurance. After laborious and extensive research, a system was created that would permit almost anyone – rich and poor, young and old – to wean themselves from dependence on banks, credit cards, auto leases, mortgage companies and the risks and volatility of the stock and real estate markets and traditional retirement plans.
People could sleep well at night knowing that their savings were growing – safely and predictably – even when the markets tumbled.
Soon, the American public began to come around to my way of thinking – or at least that’s what I believed at the time. People from all walks of life made initial inquiries, read up on Bank On Yourself materials, met with the specially trained financial representatives and then made the choice to bank on themselves.
Clients became our most potent marketing tool, as they began sharing the Bank On Yourself concept with their family, friends, neighbors and colleagues, as well as increasing their own commitment to this proven savings and money management philosophy.
I’ll admit I was pretty pleased with myself…
To be honest, I was pretty self-satisfied both by the consistent growth in the number of folks who were using the concept, and by what we professed to be our innovation. There was no question that our Bank On Yourself precepts were changing how people viewed investing and financial planning.
A couple months ago, I interviewed Dan Proskauer. Dan lives below his means and has significant savings discipline. But after decades of saving and investing and “doing all the right things” we’ve been taught to do, he realized he had nothing to show for it.
Dan is a vice president of technology engineering, very analytical, and he has spent hundreds of hours investigating .
His conclusion? “The more I look into Bank On Yourself, the better it looks,” says Dan. And he has implemented it for his family in a big way.
Dan shared the findings and conclusions of his research in a fast-paced interview. I encourage you to check it out now, if you haven’t already done so.
But what if you’re in debt?
Dan told me he was talking to a friend who was complaining that he and his wife were always in debt and confessed, “There are things we want to do – we don’t want to deprive ourselves of life. We can’t really afford them, but we do them anyway.”
Maybe you can relate to Dan’s friend’s situation. It’s a seemingly endless cycle of living beyond your means, using high-cost borrowing, which means you have interest to pay – leaving that much less for everything else.
C. Northcott ParkinsonPerhaps surprisingly, it has little to do with how much you make – people of all income levels suffer from this. After all, as the late British economist, C. Northcote Parkinson noted…
Expenses rise to equal income”
It’s part of “Parkinson’s Law.” He also said that, “a luxury, once enjoyed, becomes a necessity.” I can definitely relate to that, can’t you?
When Dan described to his friend how Bank On Yourself could be used to become his own source of financing and help free him from the endless cycle of debt, his friend’s first reaction was, “Yeah, it sounds great, but we could never do it – we have to get ourselves out of debt first.”
But as Dan explained more about it, his friend realized he didn’t have to wait. He could start now and reduce or eliminate debt while at the same time increasing savings. He realized Bank On Yourself could help his family “move to the right side of the line.”
What side of the “line” are you on now?
If you’re on the “wrong” side of the line, you know it. You’ve probably tried to get to the other side of the line, but it’s not an easy journey to make.
The good news is that if you’re truly fed up with your situation and ready to make a change, Bank On Yourself can help you get there. My New York Times best-selling book, is filled with stories of folks of all ages and incomes who have done just that.
One woman who shared her story in the book is Rose Hillbrand (Chapter 8). Rose knew the feeling of hopelessness that came with the crushing debt she had incurred. The video below updates her inspiring story of how Bank On Yourself helped her move to the other side of the line. It was filmed when I was in Ohio speaking to a standing-room-only crowd of over 250 people…
And, if you’d like to get a no-obligation Analysis and a referral to a knowledgeable Bank On Yourself Professional like the one Rose got referred to, who can show you how much your financial picture could improve if you added Bank On Yourself to your financial plan, simply request a free Analysis here.
Most financial experts say that the way to avoid getting into debt is to save up and pay cash for things.
They are wrong! There is actually a better way to purchase things. I call it the “better than debt-free” method, and it actually beats paying cash.
How is that possible?!? The conventional wisdom says that paying cash for things is the answer. But this ignores an important, but little-known principle of finance…
What do I mean by that? Let’s say you’ve decided you’re going to beat the financing and leasing rackets by paying cash for major purchases. So you start putting money aside into a savings or money market account. When you hit your savings target, you pull your money out to pay cash for that item.
Now how much interest are you earning on that money?
You’re earning ZERO interest, of course. Which is why financing, leasing and paying cash are all losing scenarios.
Fact: You’re either going to pay interest to others to finance things, or you’re going to lose the interest or investment income you could have earned, had you kept your money invested instead.
When you Bank On Yourself, you do pay interest on your policy loans. But the interest you pay ends up in your policy, as I explain in detail on pages 100-102 of my book.
But far more important, as Dan Proskauer puts it…
The Bank On Yourself method offers something you truly deserve, but may not have – financial security and peace of mind. With Bank On Yourself, you can sleep well knowing your savings can only grow, never shrink. With Bank On Yourself, you know, rather than hope.”
Bonus: Some companies have a feature that allows you to continue to earn the exact same interest and dividends – even on the money you’ve borrowed!
However, only a handful of companies offer a dividend-paying whole life policy that meets all the requirements to maximize the power of this concept AND pay you the same interest and dividends, regardless of whether you’ve borrowed from your policy .
And if your policy isn’t structured properly, your cash value won’t grow nearly as fast, you could lose the tax advantages, or both.
So, whether you’re on the side of the line that Dan Proskauer is on, and you want to strengthen your financial position and have predictability and peace of mind… or you want to be on that side of the line, chances are excellent that Bank On Yourself can help!
As I write this, the Dow is flirting yet again with the 10,000 level – something it has done dozens of times since it first closed above that threshold more than 11 years ago!
People are understandably nervous, as evidence abounds that the economic recovery is faltering.
An astonishing fact was revealed in a cover story in “The Hulbert Financial Digest” July issue, titled, “Slow and steady wins the race.” The digest is an independent rating service that has tracked investment newsletters for the past 30 years.
It was almost two years ago that Dan Proskauer – a Vice President of technology engineering for a major health care company who holds three U.S. patents – first heard of Bank On Yourself.
Dan lives below his means, has significant savings discipline, and is a sophisticated investor. But when the financial crisis hit, Dan realized he had nothing to show for decades of saving and investing his hard-earned money and “doing all the right things” we’ve been taught to do.
Dan Proskauer
He felt angry, betrayed… and willing to open his mind and find out if there was something better out there.
Dan is very analytical and has since spent literally hundreds of hoursinvestigating Bank On Yourself. He has already started seven Bank On Yourself-type policies because, as he puts it, “the more I look into Bank On Yourself, the better it looks.”
Dan recently contacted me and generously offered to share his findings with you. Whether you already use Bank On Yourself, or you’ve been considering adding it to your financial plan, you’ll learn something of value from this interview. You can listen to the interview by pressing the play button below, or you can download the entire interview as an MP3 and listen on your own player or iPod…
The surprising result of Dan’s research into the rate of return of a Bank On Yourself-type policy – and why he feels the additional “intangible” benefits make it the best way to build a financial foundation in both good times andbad
Why Dan has seven different policies – and is getting ready to start more
Why Bank On Yourself will hold its own against things people worry about – including inflation, deflation and fluctuating interest rates
The two downsides to Bank On Yourself that Dan found
Why Dan believes it’s critical to use a Bank On Yourself Professional to set-up your policy… and how getting knowledgeable, on-going coaching and advice can result in your having far more wealth over your lifetime, while ensuring you don’t lose the tax advantages of Bank On Yourself
Why Dan – like hundreds of thousands of others who use the Bank On Yourself method – says the onlyregret he has is that he didn’t know about this sooner
Dan’s advice to anyone who’s still sitting on the fence and hasn’t started yet
You can listen to the interview by pressing the play button below, or you can download the entire interview as an MP3 and listen on your own player or iPod…
The more I look into Bank On Yourself, the better it looks.”
– Dan Proskaur
The ultimate financial security blanket
If you haven’t started to Bank On Yourself yet, it’s free and there’s no-obligation to request an Analysis and find out what your bottom line numbers and results could be if you added Bank On Yourself to your financial plan. REQUEST YOUR FREE ANALYSIS!
When you request your Analysis, you’ll also get a referral to one of only 200 financial representatives in the country who have taken the rigorous training and meet the requirements to be a Bank On Yourself Professional, like the one Dan is working with.
Request your free Analysis now, so you can have the peace of mind that comes with knowingyour financial future will be one you can predict and count on!
We want your feedback! Tell us what below what YOU think of Dan’s interview below…
If what they say about the long-term returns you should be able to get in the stock market is true, how come I’m not rich?!?”
Please pay particular attention to…
Myth #1: “This is a good time to invest in the stock market”
Myth #2: “Stocks on average make about 10% a year”
And the article author’s insight into Myth #10: “Stocks outperform over the long term” is priceless.
I’ve quoted many sources confirming what this Wall Street Journal articlesays. How many more sources do you need to hear it from, before you request a free Analysis that will show you how much your financial picture could improve if you added Bank On Yourself to your financial plan? REQUEST YOUR FREE ANALYSIS!
I just came across these four surprising new facts that affect your money and finances…
Fascinating Fact #1: 61% of boomers fear outliving their money in retirement more than they fear death
That’s according to a new study.1
Maybe you’re one of them. It appears that lots of boomers should be scared out of their wits – almost half of them could run out of money in retirement, according to a new study by the Employee Benefit Research Institute.
In fact, most employees recently surveyed – regardless of age – say they aren’t saving enough money for retirement.2
Many people are adjusting to “the new normal” by postponing retirement.
But you may not have a choice: Nearlyfour in ten retirees say they were forced out of work earlier than they’d planned, because of layoffs, poor health, or the need to take care of a loved one.3
And, for those already retired, 60% say they have been forced to do without things they had taken for granted, to make ends meet.4
Things like meals out, new books and movies, travel, new clothes and home improvement projects.
Can you live without those things? Sure.
But why should you have to, after a lifetime of hard work and sacrifice?!?
There’s one surprising thing Walt Disney, J. C. Penney and the Pampered Chef have in common – they all used the Bank On Yourself method to start, grow and/or finance their businesses!
Walt Disney borrowed from his life insurance in 1953 to help fund Disneyland, his first theme park, when no banker would lend him the money.1
Following the 1929 stock market crash, famous retailer J. C. Penney borrowed from his life insurance policies to help meet the company payroll.2 Had he not had ready access to capital, the company probably would have been forced to close its doors, adding even more people to the unemployment line.
In 2002, Doris Christopher sold her kitchen tool company, the Pampered Chef to Warren Buffett for a reported $900 million. Seven years earlier, she launched the company with a life insurance policy loan.3
Foster Farms was founded in 1939 when Max and Verda Foster borrowed $1,000 against their life insurance policy to buy an 80-acre farm near Modesto, CA.4
Senator John McCain secured initial campaign financing for his presidential bid by using his life insurance policy as collateral.3
So-called “permanent” or cash value life insurance (versus term insurance, which is like renting insurance) builds up cash value that policy owners can use in difficult times as a ready source of money to cover personal or business expenses for emergencies and even to cover insurance costs.
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:
Whole life insurance is an asset class that has increased in value during every stock market decline and every period of economic boom and bust for more than a century.
adjusting to “the new normal” by postponing retirement.
