SuperMoney Interviews Personal Finance Expert Pamela Yellen on Savings and Investing Strategies

Pamela Yellen, Founder of Bank On Yourself
Pamela Yellen, Founder of Bank On Yourself

I was recently interviewed by SuperMoney, a website that rates various financial products and the companies that provide them.

In this wide-ranging interview, I answered questions like these:

Why did you decide to start Bank On Yourself?

I reveal the frustrations my husband and I experienced following the conventional wisdom about investing and retirement planning. Maybe you can relate…

If someone were to say to you, “I don’t have the expertise to handle my finances. I’ll just hire some investment firm to deal with them,” how would you respond?

Here I discuss how and why 80% of all mutual funds, financial advisors and investment advisory services underperform the overall market. If the experts can’t even do it well, how can we regular folks be expected to? [Read more…] “SuperMoney Interviews Personal Finance Expert Pamela Yellen on Savings and Investing Strategies”

Is it Too Late? Am I Too Old to Benefit from Bank On Yourself?

One of the most-asked questions we got on our recent “Ask the Bank On Yourself Advisors” live online event was when is it “too late” to start a Bank On Yourself plan?

A number of people said things like…

I’m only 10 years away from retiring. Can I still benefit from this?”

In most cases, the answer is “yes.” In fact, one of the Advisors who presented during the event walked us through a case study of a couple who became Bank On Yourself policy owners at the ages of 59 and 60.

Happy Retirement
Is it too late for a comfortable retirement?

I started my own biggest plan yet last year when I was 61. (Oops! I just gave away my age!) And people older than I start new Bank On Yourself plans, as well.

The Bank On Yourself Authorized Advisors are masters at structuring plans to meet their clients’ unique situation and goals – and they have a LOT of flexibility in plan design.

But there’s also a different kind of Bank On Yourself dividend-paying whole life insurance policy that I call a “Bank On Yourself for Seniors plan.”

This involves a one-time lump-sum premium payment, and then you pay no more premiums – ever.

These plans are available for people up to age 85, and even come with a FREE long-term care benefit for stays in a long-term care facility or for home health care, in most states. [Read more…] “Is it Too Late? Am I Too Old to Benefit from Bank On Yourself?”

Scratchy toilet paper, lattes and retirement

My husband Larry and I hate scratchy toilet paper so much that when we travel, we pick up some “Charmin Ultra Soft” at a local store.

Larry, who likes to be prepared for any emergency, even keeps a roll of his preferred cushy paper in the trunks of both of our cars.

Larry says…

You just never know when it’ll come in handy”

(There are some questions you learn to stop asking…)

So why am I telling you about our personal hygiene preferences?
[Read more…] “Scratchy toilet paper, lattes and retirement”

The good, bad and the ugly of the new myRA

You’ve probably been hearing about the new “myRA,” a new government-run retirement account that President Obama unveiled at his State of the Union address and plans to create with a stroke of his pen.

Obama State of the Union Address

Its primary purpose is to offer a savings option to the 50% or so of U.S. workers who have no access to employer-sponsored retirement plans and have little saved for retirement.

Obama State of the Union Address

The appeal is that it “guarantees a decent return with no risk of losing what you put in,” according to Obama.

Sounds okay so far, right?

I did some digging into the details to understand more about how this program will actually work… and to help you sort through the pros and cons of programs like this.

Below I’ve listed the good, the bad, and the ugly about this new program. But really, most of the bad and the ugly points apply to all government-run retirement accounts, including 401(k)’s, 403(b)’s, IRA’s, etc. So if you have one of these plans, I urge you to read this today.

The good…

[Read more…] “The good, bad and the ugly of the new myRA”

How to become your own “banker”

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””

How bloodthirsty bank vampires drained me of 1,693% interest

Yep – I got charged an annual interest rate of 1,693% on a card I don’t even run a balance on! This will spook the living daylights out of you, so keep reading and find out how to make sure this doesn’t happen to you!

The Bank On Yourself Method Lets You Bypass Banks Altogether

The Bank On Yourself method lets you have access to the money you need, when and for whatever you need it. There are no applications to fill out and no qualifying.

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Watch the video to the right to learn how it works.

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Watch the video to the right to learn how it works.

You can pay your loans back on your own terms and you don’t have to worry about late fees, collections calls if you’re late or you miss some payments.

Check out our helpful Consumers’ Guide to Policy Loans here.

Did you know the typical family can potentially increase their lifetime wealth by hundreds of thousands of dollars by financing their major purchases through a Bank On Yourself plan? Find out how much bigger your nest egg could grow (without the risk or volatility of traditional investments) when you add the Bank On Yourself method to your financial plan. Just request your free Analysis here now (if you haven’t already).

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Financing things through a Bank On Yourself plan even beats directly paying cash for things for several reasons.

You may not realize it, but you finance everything you buy, because you either pay interest when you finance or lease things… or you lose interest and investment income you could have had if you’d kept your money invested. Saving money in a Bank On Yourself policy first – and then using it to make major purchases – allows your money to continue growing as though you had never touched a dime of it.

growth of your money

I know of no other financial vehicle that gives you that same advantage, do you?

And not only do you get that advantage when you Bank On Yourself, it also lets you beat the banks at their own game, while providing you with a guaranteed, safe, predictable way to grow your nest egg.

Tale of a Savvy Consumer

Scissors cutting a credit cardFormer teacher Ed Ingle and his wife decided to take a policy loan to do some home improvements soon after starting a Bank On Yourself policy, “Just to see how this whole loan thing worked. It was so easy that now we laugh at the idea of trying to understand the process. There is no process. It’s our money!”

In the first two years, Ed and his wife put the policy to work in several ways. They are putting their son through a private college through the plan. “No money goes to the bank,” Ed notes.

He purchased a car using the policy… and “no money goes to the bank!”

He also financed his wife’s graduate school through the plan. (“And no money goes to the bank!”)

Ed says he no longer worries when the stock market rises and falls. He no longer worries about the interest rates banks are charging. He’s in charge of his own finances from here on out. (And no money goes to the bank!)

An Interest Rate of Almost 1,700% Per Year?

My husband Larry and I haven’t run a balance on a card in years. We have a handful of cards we use for convenience and to get points and airline miles. We get our statements emailed to us, then pay them off in full online each month.
vampire

Last month, Larry realized we didn’t get the statement for the card we use for personal expenses. When he checked the account, he realized it was one day past the due date, so he immediately paid it. We discovered there would be a late fee and some interest due. The balance was around $3,500, so we figured the interest would be maybe a few bucks, right? Wrong!

A week later we got an email that floored us. It notified us of a $15 late fee, PLUS a $162.30 interest charge for being one day late with our payment! That’s 4.64% interest per day – 1,693% interest per year! 

A whole page of fine print on the statement tried to explain all the “gotchas.” But it’s a fact that banks and finance companies are gonna get you one way or another. Why? Because they can. 

Isn’t it time we used banks for our convenience, and not for theirs?

Of course, we now have this credit card set up for automatic payment in full each month.  And if you have cards you pay in full each month, I suggest you do the same (if you haven’t already), to make sure this never happens to you.

You can fire your banker when you join the Bank On Yourself Revolution

It’s fast and easy to get started. Just request a free Analysis here, if you haven’t already, and find out how much more lifetime wealth you could have when you tell banks to go take a hike and become your own source of financing. But please do it today while it’s fresh on your mind!
Request Your Analysis Button

Are you putting your retirement savings in prison?

Ted Benna, "Father of the 401(k)"

Ted Benna is known as the “Father of the 401(k).” In the late ‘70’s, he worked as a consultant to business owners whose main agenda was “How can I get the biggest tax break, and give the least to my employees, legally?”

Ted Benna, "Father of the 401(k)"

Tax nerd that he was, Benna discovered an obscure part of the tax code – section 401(k). Voila! By 2012, nearly 75% of all company pension plans had disappeared!

What does Mr. Benna say about his beautiful 401(k) baby today?

If I were starting over from scratch today with what we know, I’d blow up the existing structure and start over!”1

Uh oh.

Per the US Senate Committee on Health, Education, Labor, & Pensions: “After a lifetime of hard work, many seniors will find themselves forced to choose between putting food on the table and buying their medication.” The U.S. Census Bureau says the average value of 401(k) accounts of pre-retirees between 55 and 64 is only $170,645; the average value of their IRAs is only $147,345. And half of all those close to retirement age have less than $50,000 in these plans.

Something went horribly wrong. Actually, several things went horribly wrong, not only with 401(k)’s but also their kissing cousins: IRA’s, Roth Plans, 403(b)’s, SEP-IRA’s and so on.

And the problems with these government-controlled plans are in these five key areas:
[Read more…] “Are you putting your retirement savings in prison?”

Retirement confidence hits record low

Here’s what to do…

Americans’confidence in being able to retire comfortably is at a record low, despite the economy showing signs of improvement and the stock market hitting record highs.

Senior Worker - Coffee Server
To compensate for their lack of retirement funds, more people are planning to postpone retirement.

That’s according to the just-released annual study by the Employee Benefit Research Institute.

The statistics are bleak:

  • 57% of those surveyed report having less than $25,000 in total household savings and investments. Only 24% reported savings of $100,000 or more
  • Only 24% are very confident they’ll be able to live comfortably in retirement
  • Only half said they could definitely come up with $2,000 to cover unexpected expenses within the next month

How long do you think $25,000… or even $100,000 in savings will last a person in retirement? On average, a man turning 65 this year will live another 20 years, and a woman that age will live another 23 years.

To compensate for their lack of retirement funds, more people are planning to postpone retirement. That strategy may not work very well, since more than 47% of current retirees were forced into retirement sooner than planned.
[Read more…] “Retirement confidence hits record low”

Shouting about Bank On Yourself from the rooftops

Dan Proskauer recently sent me a chart showing how his family’s net worth has grown since he started his first Bank On Yourself plan 3 1/2 years ago, and how that compares to the previous 10 years.

When Dan saw this chart on his financial tracking software program, he said his jaw dropped so hard it left a dent on his keyboard and that “we should be shouting about this from the rooftops.”

They say a picture is worth a thousand words, so take a look for yourself and note how you’ll see a more detailed version of the chart when you place your mouse over it…

Bank On Yourself

Why would Dan be willing to reveal and discuss something as personal as his net worth for the whole world to see? Because, in Dan’s words…

[Read more…] “Shouting about Bank On Yourself from the rooftops”

Bank On Yourself: The Ultimate Wealth-Building Strategy Video

Do you know what your retirement account will be worth on the day you plan to tap into it? If you’re like most people, you don’t have a clue. Well, here’s a reality check – that’s not a plan; it’s gambling.

Because people have blindly followed the conventional wisdom about investing and retirement planning advice, most baby boomers have been forced to postpone retirement an average of five years…and nearly half aren’t expected to have enough money in retirement to cover even basic living expenses, like food and medical care.1

At Bank On Yourself, we believe the decision of whether and when to retire – or not – should be a matter of choice, not necessity. If that makes sense to you, we urge you to watch this fast-paced video revealing seven reasons to consider using the Bank On Yourself method as a safe and proven alternative to traditional retirement plans.

Click the play button in the video below and see how many of these seven advantages you’d like to have in your financial plan…

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Bank On Yourself gives you guarantees, predictability, control, tax advantages and peace of mind missing from traditional financial planning

Want to find out how much money you could have – guaranteed – in 10 years, 30 years, and at any point along the way if you added Bank On Yourself to your financial plan?

It’s easy to find out! Just request your FREE, no-obligation Analysis that will show you how a custom-tailored plan can help you reach your short-term and long-term goals and dreams in the shortest time possible.
Request Your Analysis Button

1. Center for Retirement Research at Boston College, March 2012 Report