Category: Bank On Yourself

The Surprising Truth About What Happens to the Cash Value of Your Life Insurance Policy When You Die

by | 6 Comments

In Part 1 of this two-part series, I proved the media’s financial gurus are wrong when they claim that it takes years to build cash value in a whole life insurance policy.

In this second part of the series, I’ll show you why all the self-proclaimed experts miss the boat when they claim that whole life insurance policies are a rip-off because you build up all that cash value, then the insurance company keeps it when you die and only gives your heirs the death benefit.

It doesn’t have to be that way, my friend!

Life insurance annual policy statement
Click on the policy statement above to see a larger version

Here’s an actual whole life insurance policy annual statement. (This is a different policy than the one I showed you in Part 1.)

Life insurance annual policy statement
Click on the image to open as a pdf

This is a whole life insurance policy purchased on my life in 1992. The statement I’m showing you, issued 17 years later, makes some astounding revelations. [Read more…] “The Surprising Truth About What Happens to the Cash Value of Your Life Insurance Policy When You Die”

Here’s Proof That the Financial “Experts” Don’t Know About Bank On Yourself Whole Life Insurance Policies

by | 6 Comments
Policy Statement Showing How Whole Life Policies Designed the Bank On Yourself Way are Different From the Policies Most Financial "Gurus" Talk About
Click on the policy statement above to see a larger version

Take a look at this life insurance policy statement. It’s for a policy I took out on September 15, 2002. I’m showing it to you because I want put to rest the misconceptions and untruths the so-called financial “gurus” are spreading about the cash value growth of well-designed dividend-paying whole life insurance policies.

Policy Statement Showing How Whole Life Policies Designed the Bank On Yourself Way are Different From the Policies Most Financial "Gurus" Talk About
Click on the image to open as a pdf

The financial gurus tell you not to buy whole life insurance because your equity in the policy—your cash value—grows too slowly, and you won’t have any equity for the first few years.

This is simply not true of Bank On Yourself-type whole life insurance policies!

You’ll have cash value in the first year with a whole life insurance policy designed the Bank On Yourself way!

[Read more…] “Here’s Proof That the Financial “Experts” Don’t Know About Bank On Yourself Whole Life Insurance Policies”

Bill Williams’ AHA Moment: How Bank On Yourself Freed Him from 401(k) Loans and Mutual Funds

by | Leave a Comment

Bill Williams is an enthusiastic believer in the Bank On Yourself concept because of how it has helped his family financially. He wrote to me several years ago, and I included his letter on page 228 of my 2014 New York Times best-selling book, The Bank On Yourself Revolution:

Thanks for all the good things you are doing, Pamela. I am working with my Bank On Yourself Professional to set up my third policy, and I am so appreciative of her guidance and expertise. She has been tremendously supportive.

The real “snake oil” is all of the purported advice about savings and investing we have been fed by the “experts” in the past. I get so upset by the advice to invest with before-tax dollars into 401(k)s or 403(b)s.

I’m over sixty years old and know when I turn 70½, I’m going to have to take required withdrawals from my plans and have the added burden of paying taxes on them. After all, the IRS wants to get its hands on the taxes they let me avoid paying all those years.

I wish not only that I had learned about Bank On Yourself earlier, but that the concept could be taught to the masses when they are young enough to get the maximum benefit from it.

Here’s why I say that: I think of all of the purchases I’ve made through the years where Bank On Yourself would have been a much better means to fund them. As an example, my son’s college expenses, which I paid every cent by selling stock and mutual funds and taking a loan from a 401(k).

Needless to say, my son received a great education (to his credit), but dear old dad has nothing to show for it. I had to put money into the stocks, 401(k), and mutual fund, so I had the resources—which could have been so much more powerful in a Bank On Yourself policy! It’s as simple as that. If I had done that, I would now still have the policies, which would have even more value.

I am depleting an IRA to fund my third policy and to help fund my first two Bank On Yourself-type policies. I just hope I live long enough to enjoy all the benefits.

Bill Williams writes again, about Bank On Yourself, tax-free retirement, and dividend-paying whole life insurance

[Read more…] “Bill Williams’ AHA Moment: How Bank On Yourself Freed Him from 401(k) Loans and Mutual Funds”

The Ticking Tax Time-Bomb of Conventional Retirement Plans

by | Leave a Comment

One of the biggest selling points of 401(k) and IRA retirement plans is that the money you put into them isn’t taxed right away. Bring out the bubbly to celebrate, right?!

Not so fast.

First of all, some people – hopefully not you! – mistakenly believe money placed into these retirement plans is “tax free.” It isn’t. It is “tax deferred,” meaning that you will pay tax on that money when you withdraw from your retirement plan down the line.

Deferred taxes might sound good, but deferring your taxes is like putting off a visit to the dentist. The problem compounds and will only get worse.

Deferring taxes creates a dangerous potential tax time bomb because you don’t have the answers to two critical questions…

First, what will the tax rates be when you retire? And what will they be 20 or 30 years later?

[Read more…] “The Ticking Tax Time-Bomb of Conventional Retirement Plans”

Vacations are for People, NOT Your Retirement Plan

by | Leave a Comment

Do you remember how much value the stock market lost in the crashes of 2000 and 2007? I’m talking about what percent the market lost during each of those crashes.

If you’re not sure, take a guess before you read on.

The tech crash happened just 15 years ago. The S&P 500 lost 49% from March, 2000 to October, 2002. Many investors – myself included – had moved their money into NASDAQ tech stocks, which plunged 78% during that same 2-1/2-year period.

Then the S&P 500 peaked again in 2007 – just a few years later. By March of 2009, it had plunged 57%.

That makes two heart-stopping losses of more than 49% just in the last 15 years. [Read more…] “Vacations are for People, NOT Your Retirement Plan”

Expert Interview: Cultivating an Attitude of Gratitude

by | 4 Comments

Did you know there is scientific evidence that gratitude can lower your blood pressure, improve your digestion, reduce your stress and boost your immune system?

And it can have an amazing impact on how you respond to events, people and situations… and how they in turn respond to you.

The wonderful thing is that it can be cultivated and nurtured.  Result:  You bring out the very best in yourself and your life and the best in those whom you love, work and play with.

Buy Catherine Price's book, Gratitude: A NovelIn my 30-minute interview with best-selling author Catherine Price, you’ll discover some practical tips for cultivating an attitude of gratitude – and multiplying your blessings.

Catherine is the author of Gratitude: A Journal (available here on our Amazon store).  It’s a perennial best-seller that gives you a great way to keep a daily record of life’s little blessings, and it’s filled with a year’s worth of insights, prompts and inspiring quotes. [Read more…] “Expert Interview: Cultivating an Attitude of Gratitude”

How to Raise Financially Savvy Kids, Teens and Grandkids

by | Leave a Comment

Welcome to part three of our Your Money Revolution video training series.

I hope you enjoyed the first two installments on how to spend less without feeling deprived, and “the silent enemy” in your retirement account that could be costing you hundreds of thousands of dollars in stealth fees.

And thank you for all your notes and emails on how much you enjoyed them!

Today, we’re going to talk about one of the biggest money drains on the planet… our children.

Do your kids think money grows on trees? Are you tired of saying “no” to the constant requests for the latest “must have” electronics, gadgets, sneakers, and more? I’ve been hearing for years from readers who say this is a big challenge they face.

If you can relate, you’re going to love this 5-minute video clip that reveals two of eight key money lessons we cover in the Your Money Revolution course that will empower your kids (and grandkids) to be financially responsible for life. [Read more…] “How to Raise Financially Savvy Kids, Teens and Grandkids”

The Secret to Living a Richer Lifestyle while Spending Less [Video]

by | Leave a Comment

We had such a great response to the video clip from my new Your Money Revolution financial transformation program I posted a few days ago that I just couldn’t resist giving you another one.

The first clip showed you how the fees charged even by supposedly low-cost mutual funds and ETF’s can devour up to 37% of your account value – and what to look out for.

Today’s video clip will give you an idea of the wide range of strategies and tools we provide you in the Your Money Revolution coaching program for taking back control of your money and finances.

This video clip is less than 5 minutes and shows you one of a dozen ways we cover for spending less – without feeling deprived. In fact, you’ll experience a much deeper level of happiness and contentment. [Read more…] “The Secret to Living a Richer Lifestyle while Spending Less [Video]”