I have written at length about my research into the wealth-killing traps of 401(k)s, IRAs, 403(b)s, and Roth plans… and how to avoid them.
In this post, I’m going to talk about the trap of retirement plan unpredictability, and I’ll start by asking you a critical question:
Do you know what the value of your retirement account(s) will be on the day you plan to tap into them… and in 20 or 30 years?
If your answer to that question is “no,” then you don’t have a plan – you’re gambling.
Yet isn’t the money you’ve earmarked for retirement money you can’t afford to lose? On top of all of life’s stresses, do you really want to have to worry about when the next market crash could wipe out 50% or more of your life’s savings – as has happened twice just since the year 2000?
Market Volatility Has Proven to be a Cause of Health Problems and Even Early Death
[Read more…] “Retirement Plan Unpredictability is a Major Wealth Killer”
A new survey from Highland Solutions revealed some startling stats about Americans’ spending habits during the pandemic. How many of these describe your situation?
- 63% are living paycheck to paycheck
- 47% have run out of their emergency savings
- More than one-third have opened up a new credit card since the pandemic to help cover expenses
- 42% have taken on more debt than normal, and nearly a third have racked up over $10,000 in new debt (a recipe for disaster)
- 82% could not cover a surprise $500 expense
- 67% regret not having enough savings before the pandemic hit
So How the Heck Did We Dig Ourselves into this Debt Hole?
For starters, you only need to look no further than the conventional advice about emergency funds. [Read more…] “New Survey Reveals Majority of Americans Now Live Paycheck-to-Paycheck Due to COVID-19 Pandemic… Here’s How to Avoid That”
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?
[Read more…] “Read Reviews for Using Bank On Yourself as an Investment Alternative”
According to the Federal Reserve, credit card debt in the U.S. is at its highest level ever. In December 2018, credit card debt was $26 billion higher than it was just three months earlier.
Americans over age 60 hold nearly one-third of all credit card debt in the country – and they’re seeing their accounts go delinquent at an increasing pace.
We’re not surprised. Eighteen months ago, we at Bank On Yourself bemoaned the fact that household debt at the end of 2017 was at a then all-time high of more than $13 trillion. Now credit card debt is poised to overtake auto debt as one of the “big three” consumer debt millstones (after mortgages and student loans).
Carrying significant credit card debt can cause serious problems
Living with a large balance on your card(s) can be like trying to cross Niagara Falls on a tightrope: You hope and pray nothing goes wrong.
What could go wrong while your cards are maxed out? [Read more…] “Record-High Credit Card Debt Promises Problems for Many”
Some financial representatives 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!
Dividend-paying whole life insurance is so simple an average 10-year-old can understand the concept in 10 minutes. We’ll prove it to you now …
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
[Read more…] “How Complex Is Dividend-Paying Whole Life Insurance?”
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.
Fully 60% of U.S. households are at risk of not having enough money to make ends meet in retirement – even if they cut back to spending just 75% of pre-retirement levels – according to a 2018 study from the Center for Retirement Research.
The Rule of 25 for Determining How Much You’ll Need to Have Saved
[Read more…] “How Much Money Do You Need to Save for 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…
[Read more…] “Flat Earthers and Blind Faith Stock Market Bulls – What Do They Have in Common?”
Scam (noun): a dishonest or illegal plan or activity, especially one for making money
Bank On Yourself (proper noun): A wealth-generating system using dividend-paying whole life insurance policies with riders that supercharge the growth of the policies. These policies are protected by a multi-layer safety net, and the companies recommended for the Bank On Yourself concept are audited by regulators in all 50 states.
Through every economy imaginable, from the terrible Great Depression of the 1930s to the “boom days” of the 1990s, to the Great Recession of 2007 – 2010, the Bank On Yourself strategy has demonstrated unfailing success for well over 160 years.
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?
[Read more…] “Is Bank On Yourself a Scam? Read These Reviews and Decide for Yourself”
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!
You can see Bank On Yourself video reviews on YouTube. Bank On Yourself really does continue to change lives, as folks of all ages and incomes have discovered.
More than half a million families and businesses use the Bank On Yourself strategy – based on using super-charged dividend-paying whole life insurance – to reach their short-term and long-term financial goals, without taking any unnecessary risk. Read what real people are saying about this strategy in these Bank On Yourself reviews.
Drew Wilder Reviews Bank On Yourself
Drew Wilder’s family has been using the Bank On Yourself safe wealth-building strategy since 2006. In this review of the Bank On Yourself method, Drew shares how he’s relying on Bank On Yourself as a safe way to build financial stability … providing a source of funds for needs ranging from home repair to paying for college. See why Drew trusts dividend-paying whole life insurance to safely grow his nest egg.
Phil and Marge Owens Recommend Bank On Yourself
[Read more…] “More Reviews About Bank On Yourself Changing Lives!”
Middle-aged Americans who experience a major economic blow are more likely to die during the years that follow than those who don’t.
That’s according to a new study published in the Journal of the American Medical Association.
Shockingly, those who experienced a devastating financial loss – called a “wealth shock” – have a 50% greater risk of dying early. And it doesn’t matter how much money you had to start.
How likely are you to experience a wealth shock?
About 1 in 4 people in the study have had a wealth shock, averaging a loss of about $100,000. Often it was a result of a drop in the value of retirement investments or a home foreclosure.
Some shocks happened during the Great Recession of 2007-2009. Some happened before or after that.
But it didn’t matter if the economy was good or bad – a wealth shock still increased the chance of dying early.
The findings suggest a wealth shock is as dangerous as a new diagnosis of heart disease, says Dr. Alan Garber of Harvard University. Another expert noted that,
We should be doing everything we can to prevent people from experiencing wealth shocks.”
[Read more…] “The Financial Shock that Can KILL You”