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Bank On Yourself

bank on yourself book review

This review was written past times times Linda A Stortz. Linda is a CPA inward Florida together with too a budget/debt coach with Crown Financial Ministries. Find her at LStortzcpa.com as well as FinancialPeace4You.com.

I read the book, Bank On Yourself: The Life-Changing Secret to Protecting Your Financial Future, by Pamela Yellen. The author has been a consultant to financial advisors for twenty years. She has investigated hundreds of savings and investing strategies as good as vehicles before learning unopen the “Bank on Yourself (or B.O.Y.)” strategy. Her mission is to promote the message of “Bank on Yourself,” which she believes is the most powerful fiscal cloak-inwards improver to-dagger for all.

The book was written to those who are tired of gambling with their financial future but instead would like a secure and predictable financial future. It reveals the strategy for taking back control of one’s financial future that Wall Street, banks, and credit nib of fare companies don’t wishing people to know.

The writer states that the “Bank on Yourself” strategy isn’t something novel but has existed for to a greater extent than 1 hundred years. The run is to allow people acquire back the money that they give on big-ticket items plus the interest that they pay to financial institutions. In the lite of the volatility of today’s stock marketplace topographic point, the writer presents this strategy as a certain means to fund a retirement conception that 1 tin truly count on.

This strategy requires a person to purchase a special whole life insurance policy that has cash value. It must pay out dividends too must include a paid-upwardly plus rider. These ii features volition significantly accelerate the growth of the cash value of the conception. By adding the paid-upwardly additions passenger, ane could stimulate got every flake much every chip 40 times more cash value at the cease of the firstly twelvemonth than a traditional whole life policy could render.

How the strategy plant

The policyholder takes out such a life insurance policy and pays the policy premiums when due. The value of the policy increases due to the benefits of the dividends and paid-up additions. When the policyholder has a need for money, he/she takes a loan from the policy from its cash value. At present, the IRS doesn’t assess taxes on a policy loan from a life insurance policy, thence this loan would be a taxation-gratuitous loan. Then, the policyholder tin give the axe set upwardly a repayment conception to pay himself/herself back the amount of the policy loan with involvement to the insurance policy. For instance, instead of going to a bank for a auto loan for $20,000 in addition to so paying the $20,000 dorsum to the bank plus $5,000 involvement, a policyholder would borrow the money from his/her cash value of his/her whole life insurance policy as good as thence pay dorsum $20,000 master copy plus $v,000 inward interest. Instead of the $25,000 beingness paid to an outside lender, he/she would usage $20,000 of his/her ain money to prepare another $five,000. Of course, the offset pace would live to build upwards cash value inward the policy to start with, but 1 time this is done, the policyholder would live able to get through life never having to pay interest to an exterior lender ever ane time to a greater extent than than.

The author points out several benefits of this strategy to the reader to help command your money:

  1. It will help to create your own financing system, so that you can get back the entire purchase price of everything that you buy such as cars, vacations, home repairs, concern startups, college instruction, medical expenses, as good as retirement funds.

  2. It will help to grow your nest-egg safely every solar twelvemonth without losing whatsoever slumber over watching the stock marketplace.

  3. It will assist to acquire a niggling-known strategy that America’s wealthy create used to legally trim back their taxes.

  4. It testament help furnish a solid fiscal estimator programme for the hereafter amongst no guesswork required.

  5. It will help to plant an emergency fund.

  6. It leaves more than wealth to your heirs than you lot could exercise otherwise too leave of absence of absence a legacy for futurity generations yesteryear teaching the “Bank on Yourself” strategy to your children too grandchildren to top on.

  7. It allows yous to concluding your receive origin of financing as good as recapture the involvement that yous used to pay to lending institutions, but at introduce to yourself.

  8. It helps yous to create a tax-unloose retirement income fund.

  9. It helps yous to grip your transactions individual, known solitary betwixt yous as well as your insurance provider.

  10. It presents a strategy that anyone sack benefit from, regardless of historic menstruation or income.

The author then presents several chapters of first-person testimonials which attest to the success of using this “Spend and Grow Wealthy” strategy. These testimonials supposedly give real-life examples (but who knows?) of how everyday people reached their short in addition to long-term goals past times using this strategy.

After reading skillful-nigh this strategy, most readers would typically produce got questions such as…

1. “How do I acquire money to start on a “Bank on Yourself” strategy?”

The writer inwards add-on to so discusses 8 ways to exercise this, such as restructuring debt, using your existing retirement funds, using your taxation refund, making lifestyle changes, converting your existing life insurance policies, in addition to to a greater extent than.

2. “How do I respect out to a greater extent information nigh this?”

This program trains “Bank on Yourself” Certified Advisors (insurance agents and fiscal advisors) who are available across the U.S. to do a personal financial analysis, to answer any questions, and also to present advantages and guarantees of the program. More information is available on their website at: BankonYourselfInfoCenter.com.

H5N1 give-in addition to-Pb of caution

As a CPA and also a follower of personal finance topics, I have my doubts about the validity of this particular financial strategy. Up to this point, I had never heard of it. Upon researching it further on the Internet, several people have questioned it as to whether or non it’s a scam. The author repeatedly mentions how Suze Orman and Dave Ramsey aren’t familiar amongst this specific type of whole life insurance policy, which I detect hard to believe. However, I would recommend this volume to others solely for the run of existence aware of the Bank on Yourself strategy but would strongly caution them to inquiry it inward depth earlier pursuing it.

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