In sum, gold and silver provide zero certainty, especially for individual investors hoping to shield their savings from volatility and risk. History has proven that chasing rising gold prices is a fool’s errand. Folks rush to metals when times are tough as a predictable savings vehicle, yet gold is one of the most volatile investments of all. To really build your nest egg safely, you need a strategy that allows you to chart exactly how much your money will appreciate year after year, no matter what. That’s truly the gold standard of building wealth.
Pundits Tell Us Not to Worry
From articles and columns in the Wall Street Journal and Financial Times to the madcap commentary and analyses of CNBC’s Jim Cramer, talking heads and financial “gurus” keep spouting the same old platitudes to reassure investors—despite all evidence to the contrary. Consider these widely accepted beliefs about personal finance:
1. Over time, the stock market has consistently proven the best and most reliable investment vehicle for the vast majority of Americans. (Not.)
2. You won’t require as much income when you retire as you do while working.
(Hey, old age isn’t a prison sentence! After working and sacrificing for most of your adult life, retirement should be a reward. With proper planning, the vast majority of people can live wealthy lives in their golden years.)
3. You’ll retire in a lower tax bracket. (Does anybody believe tax rates are going to go down over the long term?)
4. No worthwhile investment is free of volatility and uncertainty. (Keep reading!)
I can personally attest that many hundreds of thousands of people—folks just like you and me—have beaten the system by shunning uncertainty and volatility in exchange for guaranteed annual growth of their financial portfolio. These savvy savers have never had a losing year or even a single losing day.
Yet the financial gurus—whose advice got us into this mess in the first place!—are telling us to “take more risk,” “keep working until you drop,” and “plan on living on a lot less in retirement.”
To which I say, “Phooey!” Join the Bank On Yourself Revolution, and see that disastrous conventional wisdom turned on its head!
Where the Smart Money Goes
Many people have bought into Wall Street’s mantra that “investing pays off over the long haul” and try to just shrug off their losses. Wall Street has been very successful in brainwashing us into accepting the dubious insight that the market will experience ups and some downs, “but if you just hang in there, it’ll all work out in the end.” Really? Hey, I’m sixty now, and I no longer have decades to wait around for my investments to recover!
The chart on the next page shows the growth pattern of one of my Bank On Yourself–type policies. It displays the growth I’ve had so far, along with the growth I’ll have if I continue paying the level premium and the dividends stay where they are today. Right now dividends, like interest rates, are at historic lows. If they increase, the growth will be even greater.
(Keep in mind that no two plans are alike, so your plan won’t look like mine. Yours would be custom-tailored to your unique situation and your short-term and long-term goals. But unlike traditional investing and saving strategies, you can actually know the bottomline guaranteed amount you’ll have in your plan at every point along the way, before you decide if you want to move forward with Bank On Yourself. To find out what your numbers and results could be if you added Bank On Yourself to your financial plan, request a free Analysis at www.BankOnYourselfFreeAnalysis.com or by completing and submitting the form on page 265.)
If you want a growth curve that just keeps increasing at a steeper pace—no luck, skill, or guesswork required—take a look at Bank On Yourself. That’s how these policies are engineered to grow.
GROWTH CHART
Growth Pattern of Cash Value Over Thirty Years, in One of My Properly Structured Dividend-Paying Policies
And that’s why Larry and I have built our financial foundation on Bank On Yourself. After researching over 450 financial products and strategies, I found only one that allows people to bypass Wall Street, fire their bankers, and take back control of their own financial futures. In the next chapter we will look at exactly what Bank On Yourself is and how it works. That’s your first step toward joining the Revolution and growing your wealth safely and predictably.
On the other hand, if you still believe that Wall Street holds the key to your financial security and that the economic challenges that have caused the volatility in the markets are over, keep doing what you’ve been doing. Cross your fingers and hope that, against all odds, it will still work out.
But ask yourself: “Will continuing to invest the same way I’ve been investing get me the financial peace of mind I want?”
Once you’ve made the decision to stop wandering down the same blind alley, you need to take action. You need to take the proper steps and use the financial vehicles that will give you a solid financial foundation and ensure you never again suffer a “lost decade”—or even another lost year.
KEY TAKE-AWAYS
1. You can’t count on paper profits. We’ve been seduced into believing we have real wealth by eye-popping numbers on pieces of paper. Whether that’s your brokerage account or 401(k) statement, a home appraisal, or the price today of an ounce of gold, those numbers are meaningless unless you sell the asset and (hopefully) lock in a gain. That’s called market timing, and most people and experts fail miserably at it.
Bank On Yourself–type policies are different. The numbers on your annual statement represent real wealth that doesn’t disappear when the markets crash.
2. What the stock market gives, it takes away. The wild swings we’ve witnessed in this age of electronic trading prove that Wall Street is not the smart choice for the twenty-first century. Your bets are not going to regularly beat the market. In fact, the only thing Wall Street guarantees is that they, the money managers and brokers, get paid, whether you win or lose. Can you really afford to risk your financial nest egg? Would you plunk it all down in Vegas? If you might need that money in the next twenty years for any purpose, you can’t afford to entrust it to the Wall Street Casino either.
3. Nothing in life is free. When you entrust your nest egg to financial professionals, the fees you pay for their services are compounded year after year and can take an enormous bite out of your savings. But with Bank On Yourself, all of the fees and costs have already been taken into account in the bottom-line results you are guaranteed before you even begin your plan. There are no nasty surprises.
4. CDs, savings, and money market accounts have trouble just beating inflation. Being conservative by keeping your money in cash keeps you at the mercy of a bank, and banks are not in the habit of being generous.
5. The sobering lesson of the Great Recession is that real estate prices do not only go up. Over the long term, home values have appreciated by only 1 percent more than inflation. Live in your home, enjoy your home, but don’t expect to cash out big when you sell it.
6. There is no pot of gold at the end of the rainbow. With their wild price gyrations and high tax rates, you’d have