Will the Government’s new plan to increase Americans’ retirement security work?

With much fanfare, the White House has announced the highlights of what they are recommending to help you save for a secure retirement.  Will it help you… or hurt you?

Let’s take a look at the major provisions…

1.  More Americans will be herded into a retirement plan system that most experts agree is broken


According to a newly released White House Fact Sheet, the administration wants to force many of the 78 million working Americans not currently covered by employer-based retirement plans into them.  They will do this by requiring employers to enroll their employees in automatic direct-deposit IRAs, unless the employee opts out.


Experience shows most employees do not opt out.  The result?  Many more people will be relying on the same investment strategies that have lined the pockets of Wall Street and dashed the retirement hopes and dreams of millions of Americans.

On the other hand, those who use the Bank On Yourself method have been able to move closer to their financial goals and dreams each and every single year. To find out how you could turn your back on the stomach-churning ups and downs of stocks, real estate, and other investments, request a free, no-obligation Analysis today.

2.  Proposed tax credits for retirement savings contributions mean you will be paying for other people’s investment mistakes!

Even millions of Americans who pay no taxes will receive these credits, under the administration’s proposal.

3.  Employers will be expected to do what even the experts can’t

Stock Market Plunging

Employers who offer so-called “target-date” mutual funds will be expected to “evaluate their suitability for their workforce.”

These funds, which automatically shift assets over the individual’s lifetime to lower risk as the person approaches retirement age, failed miserably to accomplish that goal during the 2008 crash.

In addition, studies consistently show that 80% of all investment advisors and 80% of all mutual funds underperform the overall market1.  Yet employers with no training or experience will somehow be expected to determine which funds will do well.

Stock Market Plunging

4.  The government wants to “promote” the availability of annuities and other forms of guaranteed lifetime income in 401(k) plans

Unfortunately, the growth and returns of some of these products may not even keep up with inflation.

5.  Beleaguered small business owners will face new costs and administrative burdens

Buried in Paperwork

According to the National Small Business Association, 64 percent of small business owners surveyed said revenues declined in the past 12 months.

When small businesses are struggling to stay afloat, we oppose mandates such as this that stand to create a new administrative burden” – Molly Brogan, vice president of public affairs for the NSBA

Buried in Paperwork

6.  The government controls your money in retirement plans, not you

The government determines when and how much you can take out of your retirement plan, and can change the rules any time they want.

Proposals to do just that have already been floated through Congress.

And if the government wants to force you to buy Treasury debt with part or all of their retirement plan money, because China and Brazil won’t take the risk any more, they can do it.

7.  While expert after expert agree that the current systems of saving for retirement are broken, few offer any viable alternatives

Broken savings

Yet hundreds of thousands of people who use the Bank On Yourself method did not lose a penny during the market crash of 2008, or during the “lost decade” of the 2000’s.

Their plans have all continued growing – safely and predictably,  and without the risk or volatility of stocks, real estate and other investments.  Which may explain why my offer to pay $100,000 to the first person who uses a different strategy that can match or beat Bank On Yourself remains unclaimed.

Broken savings

Bank On Yourself isn’t a magic pill.  It takes a little patience and discipline.  But if you have those traits, it pays a lifetime of benefits.

To find out what your bottom-line numbers and results could be, and how much income you could count on at retirement, just request your free, no-obligation Analysis.

If you take the first step now, you could start taking back control of your money and your future financial security in as little as 60 days!

1. Hulbert Financial Digest, The Motley Fool


  1. The most ridiculous political environment in “generations” has determined that America and American’s are moving so quickly to keep up with the pace of LIFE, that they are ignoring things that do not affect their “immediate” situation. To a very significant degree, they are right. BUT, perhaps this is EXACTLY what was needed to “awaken a sleeping giant.” America cannot afford to fall into the hands of a very few (misguided) political idealists, at the expense of 300+ millions citizens.

    Three-Cheers for Bank on Yourself and personal responsibility!

  2. Once again, Pam, thank you for your insight into the Obamanation.

    I, for one, will continue to use my B.O.Y. plan to pay off debt and to do other wonderful things…all while building for the future of my family and me.

    Ah, contentment.

  3. Pamela, my wife and I have started making BOY a part of our lives.
    Monday I will get my phyical and soon after I will be part of your
    wise people.
    I just wish I could roll over my 401k from Vanguard without getting
    burned in taxes and fines.
    Maybe someday we will be able to put our money anywhere we want.

  4. Hi Pamela and team,

    Mark here, thanks for the update for todays financial news , its so important. I keep hearing were all doomed plz help to keep us energized with this great plan.

  5. Has there ever been an American government that worked so well that it’s citizens insisted on it remaining the same? Where each citizen benefited no matter what their status? Will there ever? Not in our lifetime!

  6. I enjoy reading this blog and the comments that follow and I have certainly learned a lot. My question is about using a policy loan versus other sources of financing. If I can get a loan at a lower interest rate than the insurance company is offering, wouldn’t that make sense because my cash value is going to grow either way? Again, this site is very informative and I appreciate your feedback.

    • It may make sense to do that. However, it may be hard to get a lower interest rate.

      And consider that when you pay cash, you can often negotiate a better price. In fact, when a low or “teaser” interest rate is offered, you may have the option of foregoing it for a lower price.

      Maybe that’s why they say “Cash is King.”

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