Table of Contents
For Larry Hayward,
my husband, best friend, and the greatest love of my life
A NOTE FROM PAMELA YELLEN
When the original manuscript of this book was completed just over one year ago, both our financial system and the entire economy were falling off a cliff. As I write this Note in mid-December 2009two weeks before a tumultuous decade comes to a close during which our nation suffered through two devastating market crashesthere are a few tentative signs that a recovery may be at hand. But financial stability is anything but certain, as government spending soars, unemployment remains stubbornly high, tax hikes loom, and the dollar declines.
And while the S&P 500 may have rebounded by a dizzying 64 percent after the worst stock market meltdown since the Great Depression, it is still almost 25 percent below where it was nearly a decade ago. And that doesnt even factor in 28 percent inflation during this period! You could have done better stuffing your money in your mattress and skipped the sleepless nights.
Many people were also counting on the equity in their homes to help fund their retirement. Yet today, the average home price is down almost 30 percent from its peak in 2005, foreclosures are at record highs, and 16 million homeowners have no equity to count on, because they owe more than their homes are worth.
The idea of having a comfortable, worry-free retirement has become a distant dream for manyeven for those who did all the right things that Wall Street and the financial gurus told them to do.
In a desperate search for investments that might help them recoup their losses, some people are buying gold, currency, and commodities. Most have no idea that, historically, these assets have jumped up and down like a ten-year-old on a new trampoline. Case in point: Gold has been hitting record highs, yet most people Ive surveyed arent aware that it would have to rise by another $1,000 an ounce, just to have the same purchasing power that it had 30 years ago.
How quickly we forget that todays hot investment is almost always tomorrows loser.
While the experts lamented that there was no place to hide during the financial crisis, none of the hundreds of thousands of people who use Bank On Yourself lost a penny in their plans when the stock and real estate markets crashed. Their plans never skipped a single beat as both their principal and gains not only remained intact, but also continued growing by a guaranteed and predictable amount. (To see proof, visit: www.BankOnYourself.com)
Credit is still extremely tight for both businesses and consumers, underscoring just how little control we have when we have to rely on other peoples money. Yet, for those who are using the Bank On Yourself methodwhich has enabled them to become their own source of financingthe only question they need to answer to gain access to capital is, How much do I want?
The $100,000 cash reward I offered to the first person who could show they use a different product or strategy that can match or beat Bank On Yourself still remains unclaimed. If you think youre up to the eye-opening $100,000 Challenge, visit www.BankOnYourself.com.
Bank On Yourself is a turbo-charged variation of a financial asset that has increased in value during every single market crash and in every period of economic boom and bust for more than a century.
For these reasonsand many more you will discover in these pagesBank On Yourself may well be the ultimate financial security blanket in both good times and bad. Read on to discover how this time-tested method is helping folks of all ages, incomes, and backgrounds reach a wide variety of short-term and long-term personal and financial goals and dreams. And find out how you, too, could have a nest-egg you can predict and count on.
PREFACE
Its been said that if you do what everyone else is doing, you will achieve only average results.
As I write this in late 2008, its become increasingly clear that, when it comes to financial and retirement planning, following the crowd simply isnt working. You neednt look very far for proof of that.
As a consultant to tens of thousands of financial advisors, I have been exposed to literally hundreds of financial products, strategies, and concepts, many of which were touted as sure bets for growing wealth. After careful investigation, most proved to be worthless, or even hazardous to my financial health.
However, I continued searching for a way to grow wealth predictably, without losing sleep, and without having to worry that our investments might tank just when my husband and I were ready to retire. Or worse, discovering after wed already retired that the interest and investment income we were counting on had been drastically reduced.
I came to the conclusion that an appropriate financial product or method had to meet three basic criteria: it had to be brain-dead simple simple to implement, and pretty much able to operate on autopilot. After all, I already have a more-than-full-time job I love; I have no interest in spending my leisure time analyzing stock charts or pounding the pavement searching for the perfect real estate investment.
My second requirement was that it had to be virtually foolproof and require no luck, skill, or guessworksomething almost anyone can do.
My third and final criterion was that it must actually workso wed have confidence that our nest egg would grow safely every year and wouldnt go backward.
I found this combination of requirementsand so much morewhen I finally learned about Bank On Yourself . The surprise was that the financial tool used for it had been right under my nose all along. This book is about a unique and little-known twist on a financial vehicle thats existed for more than one hundred years that, when combined with a mind-bending financial principle, lets you get back the money you spend on big-ticket items, plus the interest you pay to financial institutions. All those dollars you recapture can create a richer lifestyle for you now and, at the same time, fund a retirement you can truly count on.
I believe Bank On Yourself is the most powerful money secret of all. But Ill let you be the judge of that.
PART ONE
Financial Secrets They Dont Want You to Know
CHAPTER 1
Myths, Lies, and a New Way to Prosperity
The problem in America isnt so much what people
dont know; the problem is what people think they
know that just aint so.
WILL ROGERS
Im going to make a very bold statement that I canand willback up in this book: the American public has been brainwashed into believing they must accept risk, volatility, and unpredictability to grow wealth and have a comfortable lifestyle in retirement.
There is a proven financial vehicle that can give you the peace of mind you seek and deserve, and provides a solution to most of the financial challenges and crises we face in our country today.
Furthermore, the financial vehicle that makes this possible comes with an extraordinary combination of advantages and guarantees, not the least of which is that it allows you to get back every penny you pay for major purchases, so you can enjoy lifes luxuries
