Personal Finance Blog for Retirement and Investment Advice

President Reagan’s Secret 702(j) Retirement Plan – What it Is and How it Works

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President Reagan’s Secret 702(j) Retirement Plan is yet one more name that the Palm Beach Group has given to the Bank On Yourself method, which relies on a super-charged variation of an asset that’s never had a losing year in it’s 160+ year history.

Here’s a spoiler alert: The 702 J Retirement Plan is not an investment and not technically a retirement plan. It’s a specialized type of high cash value dividend-paying whole life insurance that enjoys tax advantages spelled out in IRS Section 7702 of the US tax code.

It’s a wonderful retirement plan alternative that has none of the volatility and unpredictability of traditional investing strategies.

So why didn’t The Palm Beach Group call it a “7702 J plan” instead of a “702 J plan”?

[Read more…] “President Reagan’s Secret 702(j) Retirement Plan – What it Is and How it Works”

6 Costly Retirement Plan Traps and How to Avoid Them

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If you’re like most people I talk to, you’re making several critical mistakes with your retirement accounts.

These mistakes could cost you literally hundreds of thousands of dollars over your lifetime.

But what’s worse is how these retirement plan traps can cost you your family’s well-being, and mean the difference between having to struggle to get by during what should be your golden years … and being able to enjoy life’s luxuries.

With all the economic uncertainties and worldwide turmoil that have been churning the markets, it is vitally important that you know how to avoid these costly retirement plan pitfalls today.

That’s why I’m urging you to join me and our Director of Education, Lee McIntyre, for this special online event. You’ll discover which retirement plan mistakes you are making and how to avoid them.

Space on this online event is limited, and there is no cost to attend.

Here’s What You’ll Discover During This Online Event…

[Read more…] “6 Costly Retirement Plan Traps and How to Avoid Them”

Vacations are for People, NOT Your Retirement Plan

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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”

The REAL Reason Forbes Got Too Scared to Publish the Article They Asked Pamela Yellen to Write

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As you can probably imagine, I felt honored when Forbes asked me to write an article for them. Wouldn’t you be flattered if Forbes wanted you to write an article?

It was one of their regular columnists who requested the article, who I’ve called “Pat” to protect the guilty.

Pat had asked me to answer ten questions for publication. The questions indicated Pat knew I have a contrarian take on Wall Street and that I’m a consumer advocate.

I was eager to answer Pat’s questions and tell the world about the scams in the mutual fund industry and expose the wealth-killing truths about 401(k)s and IRAs.

And I supported every statement I made with impeccable and unimpeachable sources, from Morningstar to the Securities and Exchange Commission.

But two days after receiving my article, Pat declined to run it “because there’s just too much controversy.”

So I Published the Article Myself

[Read more…] “The REAL Reason Forbes Got Too Scared to Publish the Article They Asked Pamela Yellen to Write”

The Article Forbes Asked Pamela Yellen to Write – But Got Too Scared to Publish

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Recently I was asked to write a full-length article for the Forbes website by one of their regular columnists, who I’ll call “Pat” to protect the guilty.

Pat had taken my Financial IQ Quiz and found it very insightful. So Pat asked me to answer ten questions in writing for publication in Pat’s column.

The questions indicated Pat knew full well that I have a contrarian take on Wall Street and that I’m an advocate for consumers and investors.

They included questions like…

  • “What are some of the scams in the mutual fund industry?”
  • “What’s the shocking truth about 401(k)s and IRAs?”
  • “How can investors protect themselves?”

So I painstakingly answered Pat’s questions, supporting each statement with highly credible, unimpeachable sources including Morningstar, the Securities and Exchange Commission, Government Accounting Office and the Department of Labor.

As requested, I made no mention of Bank On Yourself or the asset it is based on (super-charged dividend-paying whole life insurance).

About two days later, Pat thanked me for sending the article, but declined to run it “because there’s just too much controversy” surrounding my work.

Pat even suggested I repurpose the content for my blog (a good case for “be careful what you wish for”…).

So below are Pat’s questions with my answers in full, which I think you’ll find very interesting. Some of these questions I’ve never addressed publicly before. (Check out question #5 about “what mutual funds do you recommend?”) [Read more…] “The Article Forbes Asked Pamela Yellen to Write – But Got Too Scared to Publish”

A 9.94% Annual Return Without Market Risk? [Video Proof]

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What if I told you that it’s possible to get an effective annual return of nearly 10% over time – without the risk of stocks, real estate or other volatile investments?

NeTIuNRIoCk

Watch the Video above to see proof of the return of Bank On Yourself (then click on the icon in the lower right to enlarge)

I’m pretty sure you’d wonder what I’ve been smoking!

But I’m going to prove to you how you would have to get a 9.94% return every year in a tax-deferred account like a 401(k) or IRA to equal the return of a Bank On Yourself Plan over the last half century.

NeTIuNRIoCk

Watch the Video above to see proof of the return of Bank On Yourself

To quickly recap, Bank On Yourself relies on a super-charged variation of an asset that has increased in value every single year for more than 160 years – dividend-paying whole life insurance. It’s never had a losing year – EVER – including during the Great Depression. [Read more…] “A 9.94% Annual Return Without Market Risk? [Video Proof]”

Get all your questions about Bank On Yourself answered – Live Webinar

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You’ve been reading about Bank On Yourself. You may have thought about trying the program. But you might have questions like…

  • “I don’t totally get how the concept works.”
  • “How can I be sure this is really legitimate?”
  • “Could this really work for me in my situation? How can I find out, without actually meeting with an Advisor or feeling obligated?”

That’s why I’d like to invite you to join me and three of the most experienced Bank On Yourself Professionals in the country (learn why only 200 Advisors have met the rigorous requirements) for a no-holds-barred online event where you can get all your questions answered anonymously.

Space on this online event is limited, so reserve your spot here now. [Read more…] “Get all your questions about Bank On Yourself answered – Live Webinar”

5 Financial Myths that Are Destroying Your Wealth

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The problem isn’t so much what people don’t know, the problem is what people think they know that just ain’t so.”
— Will Rogers

Remember when you were absolutely certain about something that turned out to be false? Like Santa Claus or the Tooth Fairy. Or how about the witch that hides under your bed waiting to attack so you have to flip the light switch then spring into your bed before she gets you? (Okay, maybe that one’s just me.)

In honor of National Financial Literacy Month, let me just debunk a few “things you know that just ain’t so”:

1. You’ll come out ahead by deferring your taxes, and that’s one of the prime benefits of retirement plans such as 401(k)s and IRAs

[Read more…] “5 Financial Myths that Are Destroying Your Wealth”