Category: Financial Planning

The Checklist: What You Need to Know Before You Commit to a Financial Product or Plan

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People are quick to dispense advice on any subject, regardless of their qualifications. Most people don’t even distinguish between ‘opinion’ and ‘knowledge’. That’s why you must.”
— Dan Kennedy

Your Uncle Vinnie corners you at the Sunday barbeque: “You got to get on board! It’s like buying into Microsoft in the ’80’s.” Your dentist tells you to open wide and “You gotta check out this once in a lifetime opportunity. It’s the mother lode!” Your golf buddy swears she’s found the “ultimate tax shelter.” Your financial representative calls with an exciting new financial product “that will get you 15% plus annual returns with little or no risk!”

Whatcha gonna do?

Hey, I’ve spent 25 years investigating over 450 financial products and vehicles. The research was intense and required sleuthing skills that probably qualify me for CSI. I can tell you that, though these products were sparkly and seductive on paper, 99.9% of them didn’t stand up to scrutiny!

I’m guessing you don’t have the time or inclination to put in that kind of effort. But to protect your family’s financial future, you need to get answers to at least a few basic questions before you (and your money) jump in: [Read more…] “The Checklist: What You Need to Know Before You Commit to a Financial Product or Plan”

It’s National Financial Literacy Month – Do You Know Your Financial IQ?

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April is National Financial Literacy Month, and here at Bank On Yourself, we’re doing our part to give Americans the knowledge and skills they need to make smarter financial decisions.

As President Obama noted in a 2011 Proclamation supporting National Financial Literacy Month, “We must strive to ensure all Americans have the skills to manage their fiscal resources effectively and avoid deceptive or predatory practices.”

And the Senate resolved in 2012 that “increased financial literacy empowers individuals to make wise financial decisions and reduces the confusion caused by an increasingly complex economy.”

Wow! I think “complex economy” may be an understatement!

So we’ve put together a quick 20-question quiz here that increases your understanding of the most critical things you need to know about managing your money, investing, and planning for a secure retirement. [Read more…] “It’s National Financial Literacy Month – Do You Know Your Financial IQ?”

Can You Put a Lump Sum into a Bank On Yourself Plan?

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Updated April, 2020

One of the most-asked questions we get is about whether you can pay a larger amount of premium into a Bank On Yourself policy in the early years, to supercharge the growth.

The answer is “yes,” and the big advantage is that it allows you faster access to a higher amount of cash value that you can use for a variety of purposes.

Here are three common situations where people do “lump sum” funding of their plans…

Situation #1: A Better Place for Your “Safe Money”

[Read more…] “Can You Put a Lump Sum into a Bank On Yourself Plan?”

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

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One of the most-asked questions we got on our recent “Ask the Bank On Yourself Professionals” 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 Bank On Yourself Professionals 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 Professionals 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?”

Can you Roll Over your 401(k) or IRA into a Bank On Yourself Plan?

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Updated April, 2020

One common question we get is…

“Can I roll over funds from my 401(k)/IRA/403(b)/TSA into a Bank On Yourself policy – and what are the tax consequences?”

Moving money from a conventional tax-deferred retirement account into a Bank On Yourself policy is a common method people use to fund a policy.  It’s not technically a “rollover,” since you can only do that from one 401(k) or IRA to another.  Here’s how it works… [Read more…] “Can you Roll Over your 401(k) or IRA into a Bank On Yourself Plan?”

How Sequence of Return Risk Can Devastate Your Retirement Lifestyle

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There are three words that could have the biggest impact on whether you enjoy a comfortable retirement… or you have to struggle and forego life’s luxuries – and even life’s necessities.

But almost no one is talking about these three words. And there’s a good chance you’ve never even heard of them.

These three words could have more impact on your retirement lifestyle than living longer than you expected… or than being forced to retire sooner than you planned (which happens to nearly 50% of Americans, according to the Employee Benefit Research Institute).

The three words may sound a little technical, but I’m going to make them brain-dead simple to understand. [Read more…] “How Sequence of Return Risk Can Devastate Your Retirement Lifestyle”

Slacker’s Guide to Goal Setting

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Many of us spend half our time wishing for things we could have if we didn’t spend half our time wishing.”
– Alexander Woollcott

It’s still early in the year and time to set our bright and shiny new goals for the next twelve months, often with the grand title of “New Year’s Resolutions.”

Give me a break!

Aren’t we busy and stressed enough just trying to keep up with where and what we are without the added effort of trying to make our lives better? Why waste our time going after goals when we can put our feet up and watch new episodes of The Good Wife?

Besides, if we set goals, our lives might actually change – and who likes change? We’re all comfy cozy with our current problems and headaches. Why rock the boat?

However, you might be surrounded by obnoxiously chipper goal setters and goal getters harassing you to join them. Ugh!

To keep them off your back so you can join that happy 40% of people who set New Year’s Resolutions and fail within the first month, I’ve come up with some sure-fire tips:

The Slacker’s Guide to Goal Setting

Follow these pointers and you’ll never, ever have to worry about goals mucking up your perfect life! [Read more…] “Slacker’s Guide to Goal Setting”

How to Raise Financially Savvy Kids, Teens and Grandkids

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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]

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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]”