Bank On Yourself Round-Up for Week of May 18, 2011

I hope you enjoy these short summaries of four of the most interesting and thought-provoking items that have crossed my desk this week…

Bank On Yourself in the News

401(k) savings reach a 12-year high

However, half of all workers aren’t confident about their retirement future. No wonder, considering 56% say they’ve saved less than $25,000.1

According to an article in USA Today2, many 401(k) participants increased their contribution some this past year.  If you’re one of them, or are considering doing that, here are some things to think about:

  • After a “lost” decade for stocks, before the market turned around in 2009, the 10-year returns of the S&P 500 were negative. Even after a near-record recovery, the 10-year returns remain meager – just 2.7% on an annualized basis for the ten years ending in April.3

That just about equals the inflation rate for that period, wiping out any real gain you might have had for the decade.  It also assumes you have no fees or costs (401(k)’s have some of the highest costs) AND assumes you’ll pay no taxes!

  • And speaking of taxes… what direction do you think tax rates are going over the long term?

If you think they’re going up, as most people we’ve surveyed do, and you’re successful in growing a nest-egg in your 401(k), you’re only going to pay higher taxes on a bigger number!
[Read more…] “Bank On Yourself Round-Up for Week of May 18, 2011”

When opportunity knocks, will you be ready?

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.

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.

Opportunity knocks…

[Read more…] “When opportunity knocks, will you be ready?”

Bank On Yourself under the microscope

Dan Proskauer
Dan Proskauer

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
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 hours investigating 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…

You can also download a transcript of the interview here.

In this fascinating interview, you’ll discover…

    Bank On Yourself under a microscope
  • Why Dan has cut back his 401(k) contribution to what his employer matches… and why he’s considering stopping funding it altogether
  • What he discovered were the problems with traditional college savings plans, and why he believes Bank On Yourself is a better option
  • Bank On Yourself under a microscope
  • 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 and bad
  • Why Dan has seven different policies – and is getting ready to start more
  • Where Dan found the money to fund his policies
  • 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 Authorized Advisor 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 only regret 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…

You can also download a transcript of the interview here.

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 Analysis Button

When you request your Analysis, you’ll also get a referral to one of only 200 financial advisors in the country who have taken the rigorous training and meet the requirements to be a Bank On Yourself Authorized Advisor, like the one Dan is working with.

Request your free Analysis now, so you can have the peace of mind that comes with knowing your 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…

Dow 11,000: Déjà vu all over again?

Bill Clinton was President, the world awaited the potentially disastrous consequences of the Y2K computer bug, and – oh, yeah – the Dow closed above 11,000 for the first time in history.

Yogi Berra

The date was May 3rd, 1999, and to quote Yogi Berra, nearly eleven years later,

This is like deja vu all over again”

Yogi Berra

The Wall Street spin-makers are pointing out what a “big accomplishment it is for a measure that was below 7,000 only a year ago” to recapture the 11,000 level.

Before we pop the cork on a bottle of champagne, here’s a few sobering questions to ask yourself…

[Read more…] “Dow 11,000: Déjà vu all over again?”

No new taxes?!?

Did you know that the U.S. income tax was first instituted in 1913?

I recently came across a copy of the very first IRS Income Tax Form 1040 our forefathers were required to file and wanted to share it with you.

1913 Form 1040 Tax Return
1913 Form 1040 Tax Return

But BEFORE I show you the rest of it, take a guess at the answers to these four questions:

  1. What percentage of taxable income do you think the average family paid back then?
  2. What was the top percentage paid by the very wealthiest Americans?
  3. How many pages long do you think that first tax return was?
  4. How many pages were the instructions needed to complete the form?

The answers to these questions may shock you!

[Read more…] “No new taxes?!?”