Why Bank on Yourself (R) Anyway?

by Kristin Colca
Living Wealthy Financial Group
Authorized Bank On Yourself Advisor

As a Bank on Yourself authorized advisor, I often find myself playing apologist for the system.

Regaining the use, liquidity and control of one's finances is, for many people, a concept that is far removed from all that they have learned about money.  Switching over to BOY requires a drastic shift away from traditional money wisdom and the willingness to objectively consider the claims made by BOY advisors.

I've put together a few of the most common objections, along with my responses to those objections, to give a better base from which to explore Bank On Yourself.  

If you'd like to learn more or receive our free, no obligation, no annoying sales calls information packet, contact me directly.

Kristin Colca
kristin@livingwealthyfinancial.com
(512) 308-6658

Bank on Yourself frequently asked questions

Question :"No pain, no gain.  Isn't the stock market is the best, most reliable place to park your money?"

Kristin's response: 

When you look at the total return of the S&P 500 (including reinvested dividends), the real (inflation-adjusted) purchasing power of your investments remains negative after thirteen years. (referring to the graph on page 23 of The Bank on Yourself Revolution.

Question: How can you say there is "no risk" for BOY policyholders?  Isn't it an investment?

Kristin's response:

A whole life insurance policy is not an investment. In fact is is illegal to refer to it as an investment in most states. Per the Texas Department of Insurance, "Life insurance isn't an investment. An investment is a financial risk- you might make money, but you might also lose some or all of your money. In contrast, life insurance pays a guaranteed death benefit."

Question: How does BOY save you money off your taxes?  Isn't it taxed just like an IRA?

Kristin's response:

You will owe taxes on every penny you take from traditional retirement accounts in retirement. If someone retires at an effective tax rate of 20% or 25%, the 5.38% return is reduced to 4.30% or 4.03% respectively. Add that to the 1% minimum account fee and the 5.38% return is likely to be close to a 3% annual return. 

Question: If this is so great, why don't I know more people who are using it?

Kristin's response:

Leveraging the power of permanent life insurance is a wealth preservation and growth technique that has been used by business owners and upper class individuals for years.  Many people have used this method, including Walt Disney, J.C. Penney, and Doris Christopher, who launched The Pampered Chef with a whole life insurance policy loan.

 

For more questions and answers about Bank On Yourself, check out my recent interview on Living Wealthy Radio. Go here to listen now:

http://livingwealthyradio.com/?p=1628