Smartest financial move ever made?

Recently, a senior editor of the respected personal finance publication, Kiplinger, described the best financial move he’s ever made:

My wisest move was buying whole life insurance in the 1990s, precisely when countless books and articles mocked whole life as obsolete. My wife, Debbie, did the same. In the ten-plus years that we’ve paid $5,000 a year combined into our policies, both from extremely sound mutual-insurance companies, we’ve built substantial five-figure cash values, can borrow from them instantly at virtually no cost and haven’t paid a cent of tax on the earnings.”1

Like most people who have Bank On Yourself plans, Jeff’s only regret is probably that he didn’t put more into the policies!

It’s a virtual certainty that Jeff and Debbie’s policies are traditional dividend-paying whole life policies, rather than the specially-designed, super-charged variation used for the Bank On Yourself method.

Had Jeff and Debbie’s policies been designed the Bank On Yourself way, they’d have significantly more cash value now.

As the Dow moved through the 10,000 mark this week, a dose of reality is in order…

[Read more…] “Smartest financial move ever made?”

Bank On Yourself featured in Chicago Sun Times

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The Chicago Sun Times recently spotlighted Bank On Yourself in a special supplement on “Money Management: Your Educational Guide to Achieve Personal Financial Stability.”

Click here to read the article

Pamela Yellen was one of a panel of four experts profiled in the supplement.

The article about Bank On Yourself was titled, “A New Approach to Personal Financial Security.”

After reading the article, if you want more details about what Bank On Yourself is and how it works, you can get Pamela Yellen’s free Special Report here… or get Pamela’s best-selling Bank On Yourself book at a 35% discount here.

Chicago Sun Times Sidebar

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!”

What the financial gurus think they know about Bank On Yourself that just ain’t so

Dan Kennedy

One of my most influential mentors (Dan Kennedy) says,

If you don’t offend somebody by noon each day, you’re not doing much.”

So I want to thank Danny Snyder, whose post to this blog you’ll find below (exactly as he submitted it), for confirming that I am indeed doing something:

First of all using the words “money on steroids” immediatly [sic] puts you in the liar and non-trustworthy category. If you put in $5314.44 and your cash value is $2937.18 you need some ritilin, you are A.D.D. Dave Ramsey (who is in a category way above the likes of you and Suze Boreman) knows of what he speaks. Millions of people have changed their lives due to Dave’s advice. You need to tread very lightly, if you want to succeed and prove yourself. Think… before you tear down people you do not know. I do actually Bank on Myself.

Your [sic] a scam!

Danny Snyder

On this website, I have stated that I agree with many of the basic principles taught by the financial “gurus” like Dave Ramsey and Suze Orman.  And I know they have helped turn around the financial lives of many.

However, there are two critical areas we differ on…
[Read more…] “What the financial gurus think they know about Bank On Yourself that just ain’t so”

Dave Ramsey and Suze Orman on Whole Life Insurance: Let’s Debate!

UPDATED August 2022:  It’s been more than a decade since I challenged Suze and Dave to a debate, but they haven’t taken me up on it yet.  This post sparked some very lively debate and insightful comments, so be sure to read those, too.

Suze Orman, Dave Ramsey and many other financial advice-givers tell you to avoid whole life insurance. However, the policies used for the Bank On Yourself strategy are dramatically different in three key ways from the kind of whole life insurance that Suze, Dave and others talk about. Here, I reveal these key differences and prove their validity by showing you examples of my own policy statements.

What’s more, my readers have alerted Suze and Dave. But sadly, both have chosen to ignore the facts I reveal below. I’m sure neither Suze nor Dave relish the idea of having to rewrite all their books and materials. But once YOU learn the critical key differences between Bank On Yourself policies and the ones Suze and Dave mention, I’m confident you’ll be asking the same question we hear Bank On Yourself policyholders mention repeatedly: “How come no one’s ever told me about this before!?”

Here are the three key differences:

Suze Orman & Dave Ramsey
Suze Orman & Dave Ramsey

Key difference imageKey Difference #1: These experts say the money you can have access to in the plan (your “cash value”) grows too slowly in a whole life policy, and say you typically won’t have any cash value at all in the first few years.

Suze Orman & Dave RamseySuze Orman & Dave Ramsey

A Bank On Yourself-type policy, however, incorporates a special – and little-known – rider or option that turbo-charges the growth of your money in the policy so you have up to 40 times more cash value, especially in the early years of the policy. This allows you to use it as a powerful financial management tool from Day One.

Don’t take our word for it – here’s a statement from a Bank On Yourself-designed dividend-paying whole life policy, at the end of just one year.

But each policy is different, so to find out how much cash value you’ll have each year – guaranteed – request your FREE Analysis here.Request Your Analysis Button

Key difference image

Key Difference #2: Most financial experts, including Suze and Dave, talk about policies where your death benefit stays level for the life of the policy.

However, in a dividend-paying whole life policy, dividends can be left in the policy to purchase additional coverage, while at the same time growing your cash value in the most efficient way possible. This policy statement shows you how the death benefit keeps growing, and proves these policies are different from the ones Suze and Dave talk about.

Please note that this statement is from a policy I started before I learned about Bank On Yourself, and it has grown much more slowly than a policy designed to maximize the power of the Bank On Yourself concept.

Even so, this policy has left my mutual funds and real estate investments in the dust.

Key difference image

Key Difference #3: The financial experts often rant about how, when the policy owner dies, the insurance company “only” pays you the death benefit and keeps your cash value.

But with a Bank On Yourself policy it’s very different, as you can see on this policy statement. It shows you how, had I died on the date this statement was issued, my family would have received a check for more than the original death benefit AND the cash value in the policy… combined!

So I am throwing out the gauntlet to Suze, Dave or any expert who wants to challenge me. Just name the time and place!”

And keep in mind that Bank On Yourself will beat anyone’s best financial strategy or we’ll pay you $100,000!

No two policies are alike, because each one is tailored to the client’s unique situation. So your results will be different. To find out what your bottom-line numbers could be, and how much your financial picture could improve if you added Bank On Yourself to your financial plan, request a free Bank On Yourself Analysis. There’s no obligation.Request Your Analysis Button

Update! Our hidden video camera captured Suze Orman and Dave Ramsey discussing Bank On Yourself…

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If Bank On Yourself is so good, why isn’t everyone already doing it?

If you browse the personal finance section of any bookstore, turn on the TV or open a magazine on finance, you’ll discover that 99 out of 100 financial “gurus” will insist that whole life insurance is a lousy place to put your money. Most will recommend you buy term life insurance instead and invest the difference in mutual funds.

Part of the problem is these financial experts know nothing about the specially designed type of dividend-paying whole life policy used for the Bank On Yourself method, as I’ve demonstrated above. [Read more…] “Dave Ramsey and Suze Orman on Whole Life Insurance: Let’s Debate!”