Bank On Yourself: A financial plan you can count on

Oh what a roller-coaster year this has been!  Our entire financial system and economy almost fell off a cliff.

Bailout

And while there are some hopeful signs of new life in the economy, this year has also brought us:

  • Massive bailouts
  • A tripling of an already-bloated federal deficit
  • A falling dollar
  • Rising foreclosures (and likely to spike as billions of dollars in ARM’s are now coming up for adjustment)
  • Major banks and investment houses taking on three times (!) the risk they were before the collapse
Bailout

So what do you think next year has in store for us?

No one really knows for sure.  (Well, except maybe the folks at the Psychic Hotline.)  So how do you prepare for a very uncertain future?

Here’s a quick quiz that may reveal an answer for you…

What’s the one financial asset that increased in value during the market crash of 2008?  And in 1929?  And in every period of economic boom and bust in between?

Answer:  The product used for Bank On Yourself:  Cash-value life insurance.

As I’ve mentioned, my husband Larry and I now have 18 Bank On Yourself policies.  I’ve picked one of them to show you how a dividend-paying whole life policy like this can grow over time – even when the markets are plummeting.  It’s a great example of how Bank On Yourself gives you the peace of mind that lets you sleep at night.

Here’s how much this plan has grown each year since the beginning of 2000, a period that includes not one, but TWO devastating market crashes.  In four of these years, the S&P 500 was down for the year, as you can see in this side-by-side comparison:

chart
chart

If you had put $10,000 into an S&P 500 Index fund at the beginning of 2000, how much do you think it would be worth today?

Take a guess before you read on.

[Read more…] “Bank On Yourself: A financial plan you can count on”

Video Overview: Bank On Yourself in a Nutshell

We just completed a short, fast-paced video explaining what Bank On Yourself is and how it works, that I think you’ll find very helpful.

Click on the play button to discover…

  • How Bank On Yourself grows your savings both predictably and guaranteed… even when stocks, real estate and other investments tumble
  • How it can beat the pants off your best saving or investing method
  • How the kind of policy used for Bank On Yourself is different from the ones Suze Orman, Dave Ramsey and 99.9% of all financial representatives talk about
  • Why it’s an excellent alternative to traditional retirement plans
  • How you can use it to get back what you pay for major purchases
  • Where to find the money to get started
upA_I_2ctEY

After you watch the video, I’d love to hear your thoughts and feedback – so please speak your mind below.

Think you have to risk your money to get big returns? Hogwash!

According to a recent comment on this blog, I’m full of it. Apparently, the author thinks I pulled the following statement out of my butt…

The reality is that the typical mutual fund investor has actually been losing 1 percent per year over the last 20 years, after adjusting for inflation.”

InflationThe statistic comes from the respected research firm, Dalbar, Inc., in its 15th annual study of mutual fund investor behavior. The study measures the returns investors actually get, not the returns they wished they got.

According to Lou Harvey, the president of Dalbar, the study once again revealed that

“investor returns lag what performance reports and prospectuses would lead one to believe is achievable. While those returns are theoretically achievable, the reality is that investors are not rational, and make buy and sell decisions at the worst possible moments.”

Let me paint a picture of how this happens: Lets say you do what the author (who calls himself “David K.”) of the rather nasty blog comment suggests and buy “simple index funds” and hold them for twenty years.

[Read more…] “Think you have to risk your money to get big returns? Hogwash!”

How financially secure are you? Take the 3 question test…

I often get asked by subscribers if they should sell some of their investments and put those funds in a Bank On Yourself plan.

Of course, everyone’s situation is different, and I can’t make that call for you.

But I can suggest a few questions to ask yourself, that can help guide you to a decision:

[Read more…] “How financially secure are you? Take the 3 question test…”

Wall Street fails those planning to retire next year…

Have you noticed that every day it seems we get a new reminder of just how badly Wall Street has failed us?  One of the latest reminders is simply astonishing.

Do you know what a “Target Fund” is?  This increasingly popular choice for 401(k) plans is a mutual fund billed as a one-stop solution for investors saving for retirement.  You put your money in a single fund linked to the year in which you plan to retire, and the fund company does the rest.

The idea is that the company invests your nest-egg more conservatively every year, so that when you’re ready to retire, your money will be there for you.

So how well do you think that strategy worked last year, for investors who pinned their hopes on retiring next year? [Read more…] “Wall Street fails those planning to retire next year…”