Should You Treat Your 401(k) Like a Bank?

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A recent article in the Wall Street Journal says it’s time to consider borrowing money from your 401(k). These loans have become more popular as more Americans get deeper into debt at high interest rates.

Most 401(k) plans offer participants the option to borrow from their plan. No credit check or collateral is required.

The IRS requires a mandatory repayment schedule of principal plus interest, currently 9.5% in many plans. That interest rate is lower than personal loans and significantly lower than the average credit card interest rate, making it appealing in today’s climate.

The article went on to explain the significant downsides of these loans. That got me thinking about how a 401(k) loan differs from a loan from your Bank On Yourself plan. So, let’s compare…
[Read more…] “Should You Treat Your 401(k) Like a Bank?”

How to become your own “banker”

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Over the holidays, I received a number of emails with good wishes for the New Year from subscribers who use the Bank On Yourself method to grow their wealth safely. Many also told me how they’re using their plans.

Derek Logan with his newborn granddaughter
Derek Logan with his newborn granddaughter
Derek Logan with his newborn granddaughter
Derek Logan with his newborn granddaughter

One of those emails came from Derek Logan, a corporate accountant who is the textbook “poster boy” for someone who did all the right things we were taught to do financially, who decided to stop feeding the insatiable Wall Street Casino with his hard-earned dollars after seeing his retirement account value slashed in half several times.

Derek started his first Bank On Yourself plan about four years ago and wanted to update me on how he’s been able to actually use his plans to become his own “banker” during that time. Derek said he’d be happy to share his experience with subscribers to this newsletter, because…

It’s not about what I have done, but about what Banking On Yourself can do for anyone.”

This could be you… [Read more…] “How to become your own “banker””

Why do so many people prefer THEIR facts to THE facts?

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As Mark Twain noted…

Most people’s egos prefer THEIR facts to THE facts.”

Facts

And I’ll bet you can think of several people who are guilty of that right off the top of your head, can’t you?

Facts

One of my mentors, Dan Kennedy, also noted, “People are quick to dispense advice on any subject, regardless of their qualifications. Most people don’t even distinguish between ‘opinion’ and ‘knowledge.’ That’s why you must.”

When it comes to Bank On Yourself, there’s a lot of opinion being dispensed as fact… and I thought I’d help you sift through three common misconceptions about Bank On Yourself in this blog post…

Myth #1: The commissions paid on Bank On Yourself plans are high

Often, this accusation is made by financial representatives who profit from investing your dollars on Wall Street. They even say agents only sell these policies because of the high commissions.

What they don’t realize is that Bank On Yourself Professionals receive 50-70% less commission than financial representatives who structure policies the traditional way.

And the shocking fact is that the financial representative who manages your money in the stock market is making at least ten times more than the Professional, if you contribute the same amount of money each year! [Read more…] “Why do so many people prefer THEIR facts to THE facts?”