Because the Bank On Yourself wealth-building method lets people bypass Wall Street to grow wealth safely and predictably every year – regardless of “whether the market goes up, down or sideways”™ – we’ve taken a lot of nasty flak from financial “gurus” and investment advisors over the years. That seems to be heating up as individual investors continue to flee the stock market in droves, which is having an impact on many advisors’ livelihoods.
Allan Roth – a financial planner and blogger for CBSNews.com MoneyWatch – has written an article about why he believes this tried-and-true strategy is “snake oil.” But Allan Roth is not an investigative reporter. Allan Roth is an investment advisor with some very strong opinions. Of course, we understand that Mr. Roth is entitled to his opinions, however, his article about Bank On Yourself is filled with numerous misstatements of fact and misquotes. When I sent a detailed accounting of his blunders to the legal department of CBSNews.com, it got routed to an editorial “executive producer” who refused to correct the record.
Therefore I am taking this to the court of public opinion and giving you the facts so you can decide for yourself. We really want to hear from you, so we’re going to pick 10 of the most interesting or insightful comments made on this blog and award posters valuable gifts. (Details at end of this post.)
I’ll address just one of Roth’s misstatements in this post. In a nutshell, Allan Roth’s argument is that using a Bank On Yourself policy to finance something like a car and following the strategy laid out in my best-selling book is a losing strategy. But the “logic” Mr. Roth uses is flawed: Allan Roth was comparing the total cost of purchasing a car and financing it through a Bank On Yourself-type policy to the total cost of not buying a car at all!
How did he arrive at the “well, duh” conclusion that at the end of the day you’ll have more money if you don’t buy things than if you do? And how did Allan Roth completely miss the boat on what Bank On Yourself is all about? Read on to find out…
After a number of Roth’s clients asked him about adding more guarantees and predictability to their financial plan with Bank On Yourself, Roth contacted one of the Bank On Yourself Authorized Advisors to determine if the book’s claims were true. Roth was particularly interested in knowing if the process described in the book for becoming your own source of financing for major purchases worked as claimed.
[Read more…] “Response to Allan Roth CBSNews.com MoneyWatch Review of Bank On Yourself”