Category: Financial Literacy

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”

Why a Little Financial Information is Dangerous

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Just cuz you’re following a well-marked trail doesn’t mean that whoever made it knew where they were goin’.”
— Texas Bix Bender

I respect people who are self-educated, and I respect people who continue to educate themselves about various topics, even after they’ve finished their degrees. As legendary basketball coach John Wooden used to say, “It’s what you learn after you know it all that really matters.”

That said, a little financial self-education can go a long way – toward completely destroying your financial future!

Why? Because when you cobble together your financial education with bits and pieces of advice you see on the internet, read in articles or hear on TV, you’re not really building a strong foundation of financial literacy. It’s like that old story of the 12 blind monks and the elephant. Each monk felt a different part of the elephant and used just that part to figure out what the whole animal looked like!

So one blind monk tells you to pay off all your credit debt ASAP, while another tells you that you need to build up a rainy day fund. One insists that you max out your 401(k), while another says to secure your future by paying off your mortgage. And the blind monk standing at the elephant’s tail thinks the economy stinks – so you need to get yourself a stash of precious metals!

When it comes to personal finances, you really need to see the whole elephant

[Read more…] “Why a Little Financial Information is Dangerous”

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 advisor 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 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”

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”

Fed says most Americans “extraordinarily vulnerable” to financial setbacks

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A comment last week by Federal Reserve Chair Janet Yellen (read Is Pamela Yellen Related to Janet Yellen?) sent my inquiring mind down an investigative rabbit hole. (Update: Janet Yellen was replaced by Jerome Powell in January, 2018.)

Janet Yellen and Pamela Yellen

Janet stated that the Great Recession showed that a large number of American families are “extraordinarily vulnerable” to financial setbacks because they have few financial assets to fall back on when the you-know-what hits the fan.

Janet Yellen and Pamela Yellen

She cited a new study showing that an unexpected expense of just $400 would force the majority of American families to borrow money or to have to sell something to cover it.

Just $400! Yikes! What is that? A minor car or appliance repair or a small medical or dental expense?

That stat came from a survey released by the Federal Reserve this summer that was so ignored by the media that it even escaped my notice.

When I finally tracked down that Federal Reserve survey (Report on the Economic Well-Being of U.S. Households in 2013), I could see why the media wanted to keep it under wraps.

Here are a few startling revelations from this Report…

[Read more…] “Fed says most Americans “extraordinarily vulnerable” to financial setbacks”