There’s a lot of uncertainty today about where you can safely store your money. Here’s what Pamela Yellen has to say about Bank on Yourself:

Consider these four reasons why a Bank On Yourself policy may be the best place to park money you want to keep safe and liquid:

1. You could get substantially better growth on your money than a CD or savings or money market account. And you will be growing a retirement fund you can predict and count on.

The 4-5% return mentioned above is based on the current dividends, which are at historic lows. As interest rates rise (as they will sooner or later), the dividends typically rise, too.

2. You can access your principal AND gains in a Bank On Yourself plan with no taxes due, under current tax laws. So that 4-5% return is equivalent to a much higher taxable return you’d have to get in a tax-deferred account – like a 401(k) or IRA – or a taxable savings or money market account.

And what direction do you think tax rates will go over the long term?

3. You can use the equity in your policy whenever you want and for whatever you want – no questions asked! And you can pay it back (if you choose) on YOUR schedule, not someone else’s.

4. When you borrow your cash value – whether you use it for purchases or investments – your plan can continue earning the exact same interest and dividends just as if you never took it out. Try
doing that with your 401(k) or IRA!

As I’ve said many times, Bank On Yourself is NOT a “get rich quick” scheme or a bunch of pie-in-the-sky promises. It’s about REAL wealth and financial security for as long as you live.

Slow and steady wins the long-term race (which is what saving for retirement is) every time.

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