Tweet
I am hoping that you will be able to help me. I was recently talking to a friend who had just finished reading the book Bank on Yourself. Have you ever heard of this book? Have you ever heard of the Bank on Yourself method for financial planning? After talking to my friend, I am interested in learning more about it, but I want to hear from somebody who has tried the Bank on Yourself method before I jump into it with two feet. Do you think that this would be a good way to set up my financial planning? Any help that you can give would be greatly appreciated. Thank you very much.
-
-
Never heard of the book before. But I looked at some of the reviews on Amazon, and here's what I found:
The system is essentially a sale of whole life insurance, designed to let you 'borrow' against the cash value once it's built up. (nevermind that it's your own cash you paid in that you're 'borrowing')
The problem with that is that the cash value in a whole life policy doesn't grow as fast as buying a term life policy and investing the difference. Plus the term and invest doesn't charge you any commissions.
So why buy a whole life policy wait for the cash to build up, so you can borrow against it... when you could just save up in your investments instead and pay cash?? No commissions, no interest charges, no hassles, no credit inquiries, no nothing.
Not impressed with the book from what I read of the reviews.
If you'd like a better book, try the Total Money Makeover by Dave Ramsey link. Or How to get out of debt, stay out of debt, and live prosperously link
Best of luck! -
High net worth/high income individuals who are financially disciplined, understand how whole life works and can see its pros and cons, have no debt, save more money than they know what to do with, are funding their retirement goals with stocks/bonds, and want a safe place to put money they won't need for the short term, might benefit with this strategy. Is this you? It sure isn't many people.
Very, very rich people can make "be your own bank" work for them.
The average person who tries to over fund permanent life insurance lapses the policy and loses money within 5 years of starting the policy.
Looking at your posting history, you seem to be trying to get on track with your personal finances. I would stick with the basics -- reduce your expenses, get out debt, increase your savings rate, fund retirement with index funds, etc.
There are hundreds of books out there promising the secret to building wealth. A lot of these books are not worth their purchase price.Last edited by Robert742; 04-22-2011, 06:25 PM.Comment
-
Every person seems to have a book or system these days.
If it is all so great why arn't these people as wealthy as Warren Buffet?Comment
-
There is a misconception that financial planning applies only to a small target group of super wealthy people. This is the first myth you have to overcome if you want to experience financial security especially in this economic environment. Whenever you seek help there are various software’s, they'll give you many choices, will give you a direction for making financial decisions, they may permit you to know how each financial decision will affect other important areas of finance happening,Comment
-
-
"questions" is an account that Jeffrey (the owner of this site) uses to post questions he gets in email. (He isn't asking for himself, he is asking for someone else, who may have wanted to stay anonymous.) You won't get any response from this poster, and if you look at the previous posts, you will find that "person" schizophrenic...Originally posted by Robert742 View PostComment
-
Bank on Yourself Method Financial Planning
I believe the books written about financial planning are sort of tools that we can use for our own planning. What is important is that we understood the principles presented and apply it according to our own particular situation. There is no perfect plan. It is how we apply them. Our experiences are good balancing factors.Comment
-
LOL, thanks, I should have figured this out on my own from the user name & signature.Originally posted by cptacek View PostComment
-
Bank on Yourself Method Financial Planning
Thanks for sharing this information with us. The post is really interesting. It seems this method of financial planning in "Bank on Yourself" is pretty interesting i'll look forward to it. Keep up the good work.Comment
Comment