Bank on Yourself

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Bank On Yourself

How to Pocket the Interest You NowPay to Banks, Credit Card and FinanceCompanies... and Get Back the Entire

Purchase Price of Your Cars,Vacations and Other Big-Ticket Items

By Pamela G. Yellen, PresidentBank On Yourself

Discover how to... Finance a car, home, credit card

debt, home theater, boat or RV,vacation of a lifetime, businessequipment or a college educationand pocket the interest you wouldotherwise give to banks and financecompanies

Get back the entire purchase priceof your cars and other big-ticketitems, over a reasonably shortperiod of time

Benefit from this strategy even if you typically pay cash for major purchases

Grow your wealth each and every year, risk-free and potentially tax-free, nomatter what's happening in the stock or real estate markets

Spend or invest your money and still have it growing for you as though you nevertouched it (your money will literally work twice as hard for you)

Create a tax-free stream of income with no government limits on how much youcan contribute... and no restrictions on when or how much you can take outpenalty-free (you control your money... not the government)


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Important Notice

While a great deal of care has been taken to provide accurate and current information, the ideas,suggestions, general principles and conclusions presented here are subject to local, state andfederal laws and regulations and revisions of same, and are intended for informational purposesonly. The author is not engaged in rendering legal, accounting or other professional servicesand accepts no liability or responsibility with respect to any reader's decisions or actions thatmay be based on information or interpretation of information contained in this Report. Alwaysconsult with qualified accounting, financial, legal or tax counsel regarding current laws andregulations and how they apply to your situation. All figures and examples shown here arebased on 2003 rates and assumptions, which, of course, are subject to change. Individual resultsmay vary based on a number of factors unique to each person's situation.

Copyright Notice

2004, 2005, 2006, 2007 Pamela G. Yellen. All Rights Reserved. No part of this publicationmay be reproduced, translated or transmitted in any form or by any means, mechanical orelectronic, including photocopying and recording, or by any information and retrieval system,without express permission in writing from the publisher. Requests for permission or furtherinformation should be addressed to: Pamela Yellen, 39 Vista Estrella South, Lamy, NM 87540USA. Email: [email protected]

NOTE: Distribution, duplication or transmission of this Report by any financial advisor whodoes not have written authorization to do so, and has not undertaken the rigorous, advancedtraining required to become a Bank On Yourself Certified Advisor, and whose certification isnot current, is in violation of copyright and subject to fines and penalties.

To verify if your financial advisor is a current Bank On Yourself Certified Advisor, pleaseemail: [email protected] , and include their name and state.

Acknowledgements

I wish to acknowledge my financial advisor client who first brought this Concept to myattention, Nelson Nash, my mentor and author of the book, Becoming Your Own

Banker, who has made it his life's mission to explore and expand on this Concept, andthe late John Savage, the internationally respected financial planner who taughtthousands of clients and colleagues a better way to leverage money and financepurchases.


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Congratulations!

You're about to change your lifefor the better! The information in this Guide willrevolutionize the way you think about money. You're going to learn how to stop theflow of money AWAY from you and turn the tide so that the revenue stream comes TOyouin a tidal wave.

It's not magic. It's not voodoo. And more than 100,000 smart Americans havealready put the information in this Report to work for them. So what IS it? It's a little-known, but time-tested strategy that's been proven to...

Recapture the Interest You've Been Paying to Banks,Credit Card and Finance Companies... and Get Back the Entire Purchase Price

of Your Cars and Other Big-Ticket Items!

Pretty exciting, isn't it? Instead of wondering if your investments will pay off, if you'll achieve the income you're hoping for, if you'll have the money you need to do the

things you want, you can have an income stream you can count on. You won't bevictimized by a rocky stock market or real estate market, low interest rates on savings andmoney market accounts, or any of the other uncontrollable "ifs, ands, or buts" that canchange your financial forecast from sunny to gloomy. Instead, you'll be in charge,

directing the course of your financial future.

Win the Money Game!

I'll also show you how to eliminate banks and finance companies from your lifeand gain control over your money ! Soon, all the money you've been sending to those"wolves in lenders' clothing" will stay in your pocket at least until you use it to make

your dreams come true with...

A new car, SUV or truck Your dream home or a second home A college educationfor your kids,

grandkidsor you The vacation of a lifetime A zero balance on all your credit cards A state-of-the-art home theatre A boat or an RV A computer That home improvement or addition

you've been thinking about Business equipment or machinery


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And if you usually pay cash for major purchases , here's some great news: Youcan still benefit from this powerful wealth-building strategy! Plus, regardless of whetheryou usually finance large purchases or pay cash, here's yet another benefit: We live in anincreasingly uncertain world. Imagine what a relief it will be to know you can use thisinformation to...

How much of a difference can the strategy I'm about to reveal to you make in yourfinancial picture? Let me whet your appetite a little...

If you buy and pay for just one of your family's cars the way I'm going to show you,and you buy a brand new $25,000 car every 4 years for 40 years...

You Could Have $751,059.00 More Wealth than You Would Have if YouFinanced those Cars through a Bank or Car Finance Company!

And if you normally pay cash for your cars, you could have at least $711,139.00more wealth paying for those same cars the way Im about to describe, instead!

I realize this may sound too good to be true. How could changing the way you payfor a car possibly make that big of a difference? However, I will prove it to you in thisReport.

So, I urge you to find a quiet spot, hang a "Do Not Disturb" sign on the door and

read this Report today. Because, if you're like most folks I've shared this with, your only regret will be...

"I Wish I'd Known About this Years Ago!"

By now, you're probably wondering who I am... and what makes me qualified toteach you how to build wealth?

I don't blame you one bit for being skeptical. There are plenty of "self-appointed"financial experts out there. So...

Who the Heck am I... and Why Should You Let Me Be Your Guide?

Increase Your Wealth Each and Every YearWith Absolutely No Risk!

I'm Pamela Yellen and for the last 17 years,I've been a successful consultant to financialadvisors. It was one of my clientsa professional inthe "money game"who introduced me to therevolutionary approach to money that I'm about toshare with you.


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I was so blown away by what a consistent, risk-free technique I had stumbled uponto grow wealth and achieve financial security and independence, that I was compelled tomake it my life's mission to educate as many people about this strategy as possible.

Although it may seem newand it was certainly new to me when I first heard

about itI was astonished to find that this strategy is more than a century old. For morethan 100 years (and that's in people years, not dog years!), there has been a gold minewaiting to be tapped. And not just any old gold mine the mother lode!

It was a way to enable people to grow wealthy on the interest and financecharges that would otherwise go to line the pockets of banks, credit card companiesand finance companies... and to make major purchases withOUT robbing their nest-eggs.

And I soon realized that this safe and proven strategy does MUCH more than that,as I reveal in this Report.

I Can Tell You from Personal Experience this System WORKS!

I know this System is effective because I've used it successfully myself. And sohave more than 100,000 others. The strategy I'll teach you is the same one that I use tofinance both of my family's cars myself .

Not only am I able to put all the interest that I used to pay to banks and leasing

companies to finance my cars into my own pocket, but also, over a reasonably short periodof time, I am getting back the entire cost the finance charges and the principal of both of our cars! I will never again pay a penny of interest to a bank or financialinstitution to buy our cars! And, since both of our cars happen to be owned by mycorporation, I am also able to take tax write-offs for the interest expense and depreciation.

A few years ago, I bought three timeshare weeks at luxury resorts around thecountry the same way. Not only are the interest payments that I would normally have made

As I continued "prospecting"this gold mine, and analyzing thisconcept in greater depth, I realizedhow it could benefit almost anyone Harvard MBAs and graduates of the

"School of Hard Knocks," empty-nesters and families, captains of industry and single moms, small andlarge business owners, experiencedinvestors and financial novices.


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to a bank going into my own pocket instead, over time, I will get back the entire cost of these part-time vacation homes ... and then some (this is in addition to what I can resellthe timeshares for)! Recently we put in the home theatre that my husband had beendreaming about for years, and financed it the same way. We're not paying one singlepenny of interest to a bank or credit card company for it, and we're getting back the entire cost of it, too.

What Works for Me Can Work for You , Too!

Are you thinking: "Oh, she's not talking about me or my situation"? Oh, but I am!I've watched this strategy help men and women of all ages and incomes do things they hadonly dreamed about, never believing that they could achieve the financial freedom andsecurity they needed to turn their dreams into reality.

I've seen people from all walks of life with faces lit up like the Fourth of July whenthey realized they could afford to buy a shiny new car every four years, a boat or an RV,send their kids to the best colleges, or finally purchase that little house in the country with a

picket fence, rose garden, and rocking chairs on the wrap-around porch.

I've seen the looks of relief on theirfaces when they discover how easy it is toensure a worry-free, comfortable retirementand a predictable, reliable income stream thatwill last as long as they do (no matter what happens in the stock or real estate markets).

I'd like to see that same smile and look of relief on your face, too.

The Four Wealth Destroyers thatCan Threaten Your Financial Future...

When it comes to finances, the best-laid plans of mice and men (and women) arefrequently derailed by the four biggest wealth destroyers we face todayzappers that takea tremendous bite out of the money you've worked so hard to earn.

Being aware of these wealth destroyers is the first step towards taking control of

your financial future. Conquering them can mean the difference between being able toenjoy the good life on a daily basis or having to deny yourself life's luxuries. It can alsospell the difference between a comfortable, worry-free retirement and having to give upthings you once considered essential.


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Many retirees are watching their golden years tarnish as they are forced to put off vacation travel, limit their social activities, and eat out less. Some have had to sell theirdream homes. Many are postponing retirement or are being forced to come out of retirement and go back to work. (And, according to the March 2007 AARP Magazine,77% of workers today expect to hold a job after "retiring"!)

And tragically, AARP says most retirees have had to put off filling prescriptions,take smaller doses than prescribed to make costly medicines last longer, and see doctors ordentists only when absolutely necessary, because their interest and investment income hasdisappeared.

Most Investors Don't Come Close toEqualing or Beating the MarketHere's Why...

This sobering fact was reported in the January 2004 issue of Bottom LineTomorrow : Even though a broad index of the market returned an annualized 12.2% from1984 through 2002, according to a study done by Dalbar, Inc., a leading market research

firm:

In other words, when you factor in inflation, the average investor actually lost money during the longest-running bull market in history! Most people make lousy"market-timers"research shows even most professional market-timers can't do itsuccessfully on a consistent basis.

You Can Do Things Differently!

Even if you are making money in the stock market, are you able to do it withoutworrying or losing sleep? Can you accurately predict how much money youll have whenyou need it? There is a different way... one that makes your money grow each and everyyear, in bull markets and bear markets, so you can sleep well at night! True financialdiversification isn't just about putting your money in a mix of equities. To have stability,you need to diversify beyond the stock market.

"The average investor earned only2.6% annually, even less than theinflation rate of 3.1% . Main reason:Investors "chase performance" by buyingthe best-performing investments of the pastfew monthsafter their hot run is over.Then when they find themselves in a lowperforming investment, they do it again.

And with each switch, they incur extraexpenses."


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Wealth Destroyer #2:Your Pension Benefit May Be in Danger!

Once upon a time in the bygone "good old days," when an employee gave a lifetimeof service to "The Company," the reward was traditionally a gold watch and a pension

benefit that would make the employee's retirement years truly golden.

Well, if you haven't noticed (but I bet you have!)times have changed. Corporategreed has taken its toll on pension funds, as has the poor performance of the stock market.

In a shocking precedent, many large companies eliminated or drasticallyreducedthe amount of money they match in their employees' 401(k) plans, includingPrudential Securities, Goodrich, Ford and Charles Schwab.

Will You Be Able to Count on Your Employerto Fund Your Pension When the Time Comes?

The Pension Benefit GuarantyCorporation (PBGC)the federal agency thatinsures the pensions of more than 44 millionAmerican workersannounced its $8 billionsurplus in 2001 had disappeared, replaced by an$18.8 billion deficit in 2006! The head of thePBGC told Congress that the agency wouldsoon have to cut off benefit payments to

retirees unless a fix is found... fast.

Can you imagine what it would be like to have to retire on only 30 or 40% of whatyou thought you had coming?

Take Control!Don't Trust Your Financial Future to "Them"

Many Pensioners Are Now Lookingat Losing Up to 70% of Their Promised Benefits,

According to the AARP Bulletin


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Wealth Destroyer #3:Social Security and Medicare Forecast to Go Broke!

Have you been a "solid citizen," making your Social Security and Medicarepayments faithfully, funding today's system confident in the knowledge that the system will

be there for you tomorrow? You may be in for an unpleasant surprise.It's not the gloom-and-doomers who are predicting it. It's not the "spin" of a

political candidate. The Social Security Administration in its own Board of TrusteesReport says...

That's pretty scary when you consider that the majority of people over 65 rely onSocial Security for at least half of their income. And Social Security contributes 90% ormore of income for almost one-third of the beneficiaries and is the only source for 20% of them.

Medicare will be exhausted evensooner2019!and healthcare costs are stillskyrocketing out of control. Will you be ableto count on the government to provide yourfinancial security? In the words of the Magic8 Ball: "My sources say no."

According to a 2006 study by theEmployee Benefit Research Institute, " manyretirees will have inadequate income tofund a basic lifestyle ." They may not be ableto afford a car. They won't be able to use airconditioning, to save on electric bills. They'llhave to give up their cell phones and skipdoses of life-saving medicines.

The question is: How likely is it that you will be able to retire comfortably? Willyou have the money you'll need to live where you desire, to do all the things you've

planned for your whole life, to ensure you won't end up being a burden to your family inyour later years, or end up in a poorly staffed federally underfunded nursing home? Willyou be able to provide educational assistance to your children and grandchildren? Don'tworry. You may not realize it yet, but...

You Have Everything You Need to SucceedYOU are the Key to a Secure Financial Future

Social Security is Predicted to Go Broke In 2041!


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Wealth Destroyer #4:Consumer Debt

If you read the newspaper, listen to the radio, or watch television, you know thecold, hard truth: America is suffering from a credit epidemic that's affecting almost everysegment of our society with seemingly no cure in sight.

The AARP reports that for middle-income earners,median debt jumped from $10,500 to $22,000 over a recent 10-year period. For those in the top 25% income-wise, it zoomedfrom $43,000 to $80,000.

For people 50 and older , debt nearly doubled during arecent 9-year period. If you're the average baby boomer ,your unsecured debt has risen to 50% of your income .

And here's a real shocker: On a home mortgage, after you factor in closing costs,approximately 86% of every dollar you pay goes to the cost of financing !

However, in Spite of what I've Been Talking About,This is NOT a Lecture on the Importance of Staying Out of Debt...

If your plan is to eliminate your debt, you'll discover how to put those interest

payments into your own pocket instead and leverage them to create personal wealth andfinancial security.

And, if you have relatively little debt or typically pay cash for major purchases,"Bravo!" You're well ahead of most people and are already half way to making thisProgram work for you.

Of course, I believepeople should live within (oreven below) their means. I alsounderstand how easy it is to"buy into" our society's buynow/pay later "for a smallfinance charge," mentality. SoI'm going to show you how to

harness debt and make it work for you, instead of against you!

Someone's Getting Rich Here But it Isn't You!


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Financial security is a powerful thing and may mean more than you realize.Financial security means that you can...

Instead of lining the pockets of banks and finance companies, you could turninterest payments into tax-free income that will buy you more of what you're living for:security, comfort, joy, and peace of mind.

How to Pocket the Interest You Now Pay to Banks, Credit Cardand Finance Companies, Turn it into a Tax-Free Income Stream... and

Get Back the Entire Purchase Price of Things You Buy...

Now that we've looked at the four biggest Wealth Destroyers and potential threatsto your best-laid plans for a secure financial future, you might think things look prettybleak. What can you count on? Is there any way to ensure financial security that will letyou sleep well at night?

The answer is a resounding " YES! "

And it's Easy to Get Started...

I call the strategy I'm now going to share with you "Bank On Yourself". It can beused for many things, but the easiest place for many people to start "Banking OnThemselves" is at the car dealership when you buy an automobile.

If you're going to open the "You Finance Yourself Company"and that'sessentially what this strategy is aboutyou need to run it like a business. And, as with anynew business, the "You Finance Yourself Company" is going to go through a start-up orcapitalization phase.

Reality Check: Unfortunately, there's no suchthing as a "magic bullet" in life or in finance. If someone tries to tell you there is, start runningaway from them as fast as you can. I can show you

how to become your own financing source for yourcar in a few short years, but I can't show you howto do it starting tomorrow.

Spend with Confidence, Stop Worrying about Money,and Know your Money Will Last as Long as You Do

Help is on the Way!


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Don't let the start-up phase derail your plans! Capitalization is just a phase aninitial phase. It's a one-time requirement that provides a lifetime of benefits. You're in thisfor the long run, right? Because it really IS possible to finance your own car purchase in

just a few short years. And once you do that, you'll never have to go back to doing it theold way the old, financially draining way. Instead...

In fact, as strange as this may sound, with the strategy Im going to show you now, youll actually look forward to making payments on your cars and other purchases since they're all going into the "You Finance Yourself Company" instead!

Most people approach their car purchase with one of three financing strategies in

mind. Naturally, a variety of factors can affect the purchase price, so we're going to keepthis illustration as simple as possible and "level out the playing field." In order to do that...

I am not factoring in a down-payment, trade-in value, or inflation I'm going to assume you will buy a new $25,000 car every 4 years, from ages

40-80 I assumed a conservative historical interest rate on your car loan or lease of

7.5%. (For some perspective, in 1997, the average car loan interest rate was7.99%, in 1994, it was 8.5%, and in 1991, it was 11%.)

Of course, you may spend more on your car, or less, than in the example here. And

you may be older or younger than 40. Just keep in mind that this example gives you a starting place to understand the power and consequence of financing your own purchases,instead of giving away your money to finance institutions...

You'll Never Have to Throw Your MoneyAway Leasing or Financing Your Car Again! And, if

You Normally Pay Cash for your Cars, Keep ReadingYou're in for a Very Pleasant Surprise, Too...

"Common Wisdom"TheThree Ways Most People

Buy a Car


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Option #1: Please Re-Lease Me(Car Leases)

Reasonable Rob picked out aconservatively colored, average-sized WidgetWonder SUV and decided to lease it directlyfrom Widget Motors.

Rob was pleased with the monthly leasepayment$416and didn't think much aboutthe 7-1/2% interest portion$57.56 everymonththat was also part of that payment. A"youthful" baby-boomer, who's just turned 40,Rob was looking forward to maintaining a"lifetime" relationship with Widget and leasinga new SUV every four years until he's 80 (andhe can't see to drive anymore!)

Rob doesn't realize that Widget Motorsis going to do a lot better in this arrangementthan he is. Here's why:

Widget Motors will require Rob tomake a large down payment

The Widget Motor lease specifies thatRob must pay extra for depreciation,wear and tear, and high mileage

Rob has no equity in his car and getsnothing back at the end of each lease!

And now let's fast-forward to the future and look at the dollars and cents of thematter as Rob celebrates his 80 th birthday after four decades of income-killing leaseagreements.

It isn't pretty, so get out your handkerchiefs, because Rob's Total Cash Outlay was$199,680 .

Now what if you financed the cars through a bank or dealer instead? Let's take alook

-300000

-250000

-200000

-150000

-100000

-50000

0

50000

TotalCashOutlay

Loss


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Option #2: Loan Wolf (Bank or Dealer Financing)

Miss Melanie was a Southern belle who knew what she wanted and what she didn't:She wanted a cool lemonade on a hot summer day, and she wanted a brand new shinyconvertiblea Widget Speedywith a rag top and leather interior every four years. And

she didn't want to wait until she could pay cash.

Miss Melanie was very 'old school'and thought of Mr. Anthony, her banker, asher trusted advisor as well as her friend. Andwhen it came time to finance her new Speedy,she took out a bank loan.

Miss Melanie didn't bat an eye whenthe bank manager told her that the monthlypayment would be $604, of which $84 would

be interest. "Fiddle-dee-dee," she said."That's nothing to me." Well, forty yearslater when Miss Melanie's fortunes had takena turn for the worse, she realized that whatstarted out as "nothing" had grown into agaping hole in her finances! Let's run thenumbers:

Miss Melanie's Total Cost was$289,920

With "friends" like Mr. Anthony, who needs enemies? When it comes to carfinancing, Miss Melanie needs to be her own best friend and trusted advisor and to bank on herself , too!

So maybe you don't like either of these first two options (leasing and bank financing), and figure paying cash for the cars is the solution. Turn the page and let's take alook

-400000

-300000

-200000

-100000

0

100000

Total CashOutlay

Loss


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Option #3: Show Me the Money(Pay Cash)

Slick Slater didn't have a huge income, but he liked luxurythe limited editionWidget Wunderbar Carand he was determined to have it. He knew about the high"price" of financing a car purchase through a bank or car dealership and decided he wasn'tgoing to get suckered into doing that for the rest of his life. So he figured out a way to beatthe systemhe'd pay cash.

Every four years for 40 years, on January 1 st, Slater took $25,000 out of his savingsaccount to buy the latest Wunderbar Car off the assembly line. He congratulated himself on his taste in cars, and his "smarts" in financing. But how smart was Slick Slater, really?

Slater's Total Cash Outlay was$250,000

Slater's true cost was actuallymore than that, because he

gave up the interest he could have earned on his money, hadhe invested it, instead of paying cash

If Slater was disciplinedenough to make monthly paymentsinto a savings account to accumulate$25,000 over 4 years to pay cash foreach car he bought, he wouldn't loseas much interest. However , he'll payincome taxes on the growth of thatmoney in a taxable savings account ormoney market fund, at a rate equal tohis combined Federal and Stateincome tax bracket. Which meanshe'd be losing 35% or 40% or more of that growth right out of the gate!

Slater was on the right track, but he'd missed one very significant concept:

Whether You "Buy on Time" or Pay Cash,You Finance Everything You Buy!

That's because you either pay interest to a bank or finance company OR you giveup the interest you could have earned on your money had you invested it, instead of payingcash. In economics, it's called the "Lost Opportunity Cost."

-400000

-300000

-200000

-100000

0

100000

TotalCashOutlay

Loss


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Building the Better MousetrapFinding a Better Way to Purchase Things

Are you sensing a pattern here? Leasing, bank loans, and paying cash may be thethree most common choices for purchasing cars (and other large purchases), but they're notnecessarily the best strategies.

There's a fourth option a very intriguing option that I want to tell you about.

I'm going to show you how to harnessthe incredible power of an extraordinarystrategy that's been around for more than 100years. It's not what most people are talkingabout; the average financial advisor hasn't evenheard of it (I know this because I worked as aconsultant to more than 15,000 financialadvisors for 12 years before one of thembrought this to my attention), and most "moneypros" haven't got a clue about it.

But you're not "most" people. I'm pretty sure of that, because you've read this far inmy Special Report. You already knewor suspectedthat following "conventionalwisdom" wasn't getting you the financial results you want.

And all you need to do is read or watch the news to confirm this. Almost everyexpert is now saying the financial planning, investment and retirement strategies peoplehave been using aren't working in the world we find ourselves in today.

Headlines Like, "Will You EVERBe Able to Retire?" Now Appear Daily

You're probably someone who's been dreaming of the best things in life and you'redetermined to make them yours. You're someone who's willing to do what it takes to getwhere you want to go, and once you've arrived at your destination, you plan to enjoy it.And all it takes is a simple, effective strategy. An "anyone-can-do-it" technique foreliminating the high-cost of financing from your life FOREVER... and taking control of your financial future.

If you've got thewill let me show

you the way...


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Option #4: Cut Out the Middle Man(Become Your Own Financing Source and Bank On Yourself)

All those "interest dollars" flying around.Instead of watching them touch down at the financecompany or bank, why not wave them in for "happylandings" closer to homeinto your pocket.

So how do you do it? Remember, there's nosuch thing as a "magic bullet." But there is this: Astrategy for practical people (like you, I hope!)willing to make a change in how they manage theirfinances, so they can grow wealthy on the interestand finance charges they used to pay to bankinginstitutions... and create a lifetime of financialsecurityno matter what happens in the stock orreal estate markets.

As I wrote earlier, when you start a finance company or any other kind of business,there's always a "capitalization" phase. So, since the "You Finance Yourself Company" isbrand spanking new, a "start-up phase" is the first step to success. Remember, it's a one-

time requirement that provides a lifetime of benefits.

Here's How It Works...

Reality Check: This is serious stuff. We'retalking about transforming your money from "cashout " to "cash in ," and then some. We're talkingabout letting you reap the rewards of holding on tothousands of dollars, tens of thousands of dollars,even hundreds of thousands of dollars thatwould otherwise slip through your fingers into thehands of creditors.

Using the same variables as in the carpurchase example I just went through, thecapitalization phase will take 5 years. So, for thefirst 5 years, you're going to make the same $604 a

month payment to your Bank On YourselfAccount (the "You Finance Yourself Company") asyou would if you had taken out a bank loan instead .

Keep in mind this is for a $25,000 car, withno trade-in value factored in. If the car you plan tobuy costs more, or less, your monthly payment willbe more, or less, of course.


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And, if you have a car to trade in, your monthly payment will be less... or you'll beable to shorten the "start-up phase," so you can start "Banking On Yourself sooner . Infact, if you factor in the average trade-in value of a 4-year-old $25,000, you could haveenough in your Bank On Yourself Plan to become your own financing source for your nextcar in the fourth year instead of at the end of the fifth year!

Now hang in there with me for a minute, because I'm sure you're chomping at the bitto find out what kind of financial vehicle, account or plan enables you to accomplish this. I'lltell you soon enough.

Okay, let's get back to our example. After the fifth year (start-up phase)and every4 years after thatthere's enough in your "account" to take out $25,000 and pay cash foryour next car. Now here's where things get interesting...

To Make this Work, You Must Make a Commitment to Yourself to Makethe Same Payment Directly to the "You Finance Yourself Company," that You Would

Have Been Required to Make to an Outside Banker or Lender

This is the key to making this strategywork. This is how you use it to get all thebenefits I've been telling you about. (Andthink about it: If you had a choice of makingpayments to your own finance company,instead of someone else's, who would yourather make them to?)

Now turn the page to get the whole picture...

Key Concept :

Once you've gone through the one-time "start-up" phase, you'll be ableto pull out enough money every four years (in this example), to pay cashfor your next car and all the cars you buy for the rest of your life, if youwant! And, in the process, you'll be recapturing the interest paymentsyou would have otherwise paid to an outside finance company (and

never see again). Plus, you'll get back the entire purchase price of yourcars, as I'm about to demonstrate.


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Here's What Happens When You Bank On Yourself to Finance Your Car...

Your Total Cash Outlay for 10 cars over 40years is $289,920 (the same as if you financed yourcar through a bank loan or dealer). But instead of paying more than a quarter of a million dollars to abanker or loan financer...

The Money is all Going into YourBank On Yourself "Account"

Since the money stays with youanassetit's shown as a "positive" in this diagram.But that's just the beginning. Your little$289,920 "nest egg" will...

Grow to a Total Value of $461,139 in 40years (in this example) and...

You win three ways...

Triple Play

Key Concept :

How much did all those cars really cost you?

They really cost you nothing you recaptured every pennyby Banking on Yourself... and then some! You turned

what would have been a $289,920 loss into a $461,139 gain !

When you Bank On Yourself, your moneygrows three ways: First, you get growth on the

principal you pay in to your Bank On YourselfAccount. Second, you're earning money on theinterest you would have otherwise paid to a financeinstitution. And third, you're earning interest on that interest!

It's A Win-Win-WIN Situation!

0

100000

200000

300000

400000

500000

GrowthOver 40Years

TotalCash

Outlay--but goesinto yourown"financecompany"

Gain


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Now, if you still think paying cash is the solution, consider this: Even if you don't factor in any "Lost Opportunity Cost" (what you could have earned on your money had youinvested it instead of paying cash), ten $25,000 cars are still going to take $250,000 out of your pocket (not factoring in a trade-in). That means the difference between paying

cash for the cars and the gain you'd get ($461,139) by financing them yourself byBanking On Yourself is still a whopping $711,139! ($250,000 + $461,139 =$711,139.)

It's like getting free cars for the rest of your life! And this is all because yourmonthly payment is now going to your Bank On Yourself "Account," instead of to anoutside finance company.

Do you understand now how you can get your cars and other "stuff" for FREE,when you build up your Bank On Yourself "account," borrow from it to pay cash forthings, and then pay your account back with interest, just as an outside lender would haverequired?

Key Concept:

You have a choice: You can have the cars and themoney... OR just the cars. Which would you rather have?

Key Concept:

After the "start-up" phase, the monthly payments you used to sendto an outside finance company will all go to the "You Finance

Yourself Company" instead . From then on, you can use the moneythat accumulates in your Bank On Yourself "Account" to pay

cash for your cars. And, by paying your own Bank On Yourselfplan back, instead of an outside finance company, you'll continuousl y recapture the full cost of your cars, so you can turn around and usethose funds for your next car, and your next car after that, and for

all the cars you buy for the rest of your life!

But this is only part of the story : The principal and interestyou're now recapturing in your Bank On Yourself "Account" willgrow continuously for you, risk-free (even though you're using it to buycars). You'll be able to use these funds how and when you want, tax-

free, if you do it right. The more you use the Bank On Yourselfstrategy to finance purchases yourself, and the longer you do it, themore wealth you will have.


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If not, let me quickly summarize it again, since this piece is critical tounderstanding this strategy. It doesn't matter whether you normally lease, finance or paycash for a car. Based on our example of ten $25,000 cars, it's going to cost you anywherefrom $199,680 to $289,920 to get those ten cars, right?

But when you buy the cars through your Bank On Yourself plan, instead of being$199,680 to $289,920 in the hole , you're up $461,139! So you not only got those ten carsfor FREE, you actually made money on the deal!

And it Doesn't Matter if the Dealership Offers You aLow Interest RateYou Can't Get a Better Deal than "Free"!

But if you aren't 100% sure you understand how Banking On Yourself enablesyou to get stuff for free, please review the last four pages again.

And if you do understand this part, then let me answer a question I know somereaders will have at this point

Are You Wondering Where You'll Get the Money for the Start-Up Phase?

But let me ask you this: If you knew that if you put aside something each month fora few years, you could have free cars for the rest of your life (and/or free vacations, boats,home theatres, home remodels, etc.), would you be willing to make a few changes in yourspending habits, if necessary, to make it happen?

I know you're dying to find out what type of financial vehicle or plan gives you this seemingly magicalway of turning ordinary purchases into a bigger nest-egg

for you and your family. And I promise I'll tell you in aminute.

Don't get discouraged! Thereare 7 places you can look to find the"seed money" to fund this strategy to getyou started... and many involverestructuring your finances to free upcash flow at no additional out-of-pocketexpense to you. Many people have beenable to get started with this who alwaysfelt like they had "more month thanmoney."

I'll explain more about this laterin this Report, so stick with me.


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The Four or Five-Year "Freedom Plan"

And no more sleepless nights...

Every month, Monica held her breath. She had a good job as an editor, but themagazine she worked for was downsizing. What would happen if she were fired? She'dnever be able to keep up on her car payments if she lost her job and Monica was terrifiedher car would be repossessed by the Dewey Cheatem & Howe Finance Company. If thathappened, she'd be left without a job, without a car, without her good credit standing, andwith a very bleak future.

Bert was having trouble breathing, too. He and his partner Ernie were self-employed graphic artists who often couldn't predict their monthly income. Some monthsthey made thousands other months, the financial cupboard was bare. Often they had toskip credit card payments for months at a time. They had to pay terrible penalties and dealwith disturbing collection calls.

Alexander was the most worried of all. A recent father with a new home and steepmortgage payments, Alex was a dance instructor with a tricky knee. One little slip and he'dbe unable to work for weeks, perhaps months. He was frequently up all night, unable tosleep and constantly worried that the bank would foreclose on his home and that he, hiswife, and young daughter would be out on the street.

The Best "Sedative" Ever

If worrying about how you'd pay the money you owe in case of illness, a job layoff or another unexpected problem is keeping you awake, try being your own "financecompany" for nights of sweet dreams of a safe financial future. When you Bank OnYourself to finance purchases, and your income stops for a few months, you cansimply skip some payments or pay less for a while. No one is going to repossess yourcar or home, no collection agency will come after you, and no one can ruin your creditrating. When you Bank On Yourself, you're in the driver's seat.

Now That's the Way to a Good Night's Sleep!

Financing purchases by Banking OnYourself gives you an unbeatable trio of benefits :

1. Flexibility2. Peace of mind3. Control over your own money

When You Bank On Yourself, after 5 Years, You'll be Free! You MayNever Have to Go to an Outside Finance Company Again to Finance your Car!


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Immediate Gratification...

Unlike the money you put into a taxable savings account or retirement fund, youhave access to the equity in your Bank On Yourself Plan anytime you want tax-free , if you do it right!

Toni's TaleToni, a former competitive ice skater and now a successful skating instructor, spent

most of her life on the ice. She longed to go to some place sunny and warm. When shewas surfing the Internet one day, Toni saw an incredible deal on an irresistible trip to Tahitioffered by an online travel company. The trip was expensive and had to be paid forimmediatelythe special "deal" expired at midnight the next day.

No problem for Toni! She and her husband,John, had been acting as their own "financecompany" and financing their car purchases

themselves for a while. When Toni had a need forcash, she was able to transfer funds quickly andeasily from their Bank On Yourself "Account."Toni and John's dream trip turned into reality, thanksto a little bit of planning, a little bit of discipline, anda lot of money that would have otherwise gone intothe pockets of a finance company or bank .

Before Toni learned how to "Bank On Herself," she would have paid for the tripon a credit card, and it would have taken her two or three years to pay it back. Maybelonger. But since Toni and John had been financing both of their cars for years by"Banking On Themselves" and putting every penny of interest (and principal!) theywould have lost to finance companies into their own pockets, they had an extra cushion of cash they could use when the opportunity came up.

Toni and John Made the "Bank On YourselfCommitment" to Themselves

They would pay their Bank On Yourself "Account" back each monthwithinterestuntil it was paid off. Just as the credit card company would have required. Thatwould ensure they'd have the money available whenever it came time to trade in their cars,or for when the next "incredible deal" came up.

Toni didn't have to wait until retirement to get her hands on her money. Whyshould you? She and John financed all their cars themselves... not to mention being able topounce on a chance-of-a-lifetime vacation opportunity! And because of this, when theyturn 80, they'll still have close to $1 million in their Bank On Yourself planthat theycan get their hands on whenever and however they want, NOT just tax-deferredtax-free!


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Financing Your Cars is Just the Beginning!

If you're like most Americans, you're financing more than just your car. I used a carpurchase to illustrate the tremendous amount of money that you can keep for yourself (andyour loved ones) when you decide to Bank On Yourself because almost everyone has acar (or 2 or 3).

But the beauty of this incredible risk-free wealth-building technique is that it can beused to make a variety of purchases , such as...

A home or a vacation home To pay off credit card debt A college education for your kids or grandkids (avoid the trap most people fall into

of paying for a college education with funds that could have been used to enrichyour retirement instead)

The ultimate home theatre A boat or RV The vacation of a lifetime Remodeling your home or adding a room Business equipment and company cars Donations to your favorite charities Any small or large purchase you would typically finance

And You Can Use it as an Equity Line of Credit to Finance Things YouWant to Buy, or to Fall Back on in the Event of a Financial Emergency!

All the things you used to think of as expenses slowly eating away at your hard-earned cash, will suddenly become income-builders , working for younot the other wayaround.

The heart of the matter is simple: Theinterest (and over time the principal as well)you would normally pay to some greedycorporate money machine will go into your

own pocket instead.

Key Concept:

The average person can typically increase their monthly cashflow by an average of 20-30%, simply by changing the way they

buy and pay for thingswithout "giving up" anything!


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Which of these Options Makes the Most Sense to You?

For better or for worseand usually for worsepeople have been financing theirpurchases for centuries.

Year in and year out, without giving it a second thought, people give their money tobanks, finance, credit card, or leasing companies, never to see it again. Or , they pay cashand give up all the growth they would have gotten on their money if they had invested itinstead.

Which purchasing option makes sense to you?

Option A - Use a credit card, bank,finance or leasing company to pay for yourpurchase and say good-bye to your moneyforever

Option B - Pay cash and say good-bye to all the interest and growth youwould have received had you invested themoney

or

New and Improved Option C -

This is the choice that may spell the difference between jeopardizing your healthbecause you can't afford needed prescriptions or medical care, having to pass on vacationsyou've been planning on for years, being forced to go back to work just to make endsmeet... OR having the money to do what you want to do, when you want to do it, andhaving freedom from financial pressures and control over your money.

The Choice is Yours!

Close the Door Now , Stop All

that Money (Principal, Interestand Growth) from Flying Away,Get Back the Entire Purchase

Price of Big-Ticket Items... andGrow Your Nest-Egg Each and

Every YearGuaranteed!


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And Now, for the $64,000 Question(Drum Roll, Please!):

How in the World Do We Accomplish This?

Now you understand how important it is to Bank On Yourself and be your ownsource of financing, and how much you'll benefit from recapturing the interest dollars thatused to go flying out of your home into the hands of the money people.

But what you still don't knowand are probably getting impatient to hear aboutiswhat financial vehicle or strategy we use to make this happen. Hang on to your hatshere it comes:

We Use a Specially-Designed,Dividend-Paying Whole Life Insurance Policy

If the words "life insurance" turn you off, you can call it anything you like, if itmakes you feel better"The Snickerdoodle Savings Account" or "Our Piggy Bank" or"The Johnston Family Financial Freedom Fund."

To accomplish this, you must use a special, little-known type of life insurancepolicy sometimes referred to as a "substantially over-funded policy." Furthermore, it

must be a policy issued by certain dividend-paying whole life insurance companies thathas been specifically designed to turn a traditional life insurance policy upside down bygoing for maximum cash accumulation , while minimizing the death benefit.

Added Bonus: The strategy we use to help you become your own financing source also happens to come with a death benefit... on top of all the other benefits I just discussed.If for some reason you don't want or need the death benefit, you can always give it to yourfavorite charity, church or temple.

Key Concept:

It really doesn't matter what you call it. What matters is that this specialkind of life insurance policy is the only vehicle I've found that enables youto grow wealthy on the interest and profits you would otherwise be payingto banks and finance companies! And it is the only strategy I know of thatenables you to get back the entire purchase price of things you buy, while

rowin our wealth in the rocess, withOUT risk or worr !

Stop! Wait! Please don't tune me out now!You probably think you know about life insurance, butI'm NOT talking about the kind of life insurance policiesmost people are familiar with (including most insuranceagents, CPA's and financial advisors)! Keep reading! Don't let the words "life insurance" get in your way.


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With this Kind of Specially-Designed Policy,You Don't Have to Die to Win!

Most life insurance is really sold as "death" insurance, meaning that people buy itfor the death benefit. Usually, the conversation with the insurance agent goes somethinglike this: "Well, Joe and Sally, you need to have $500,000 of life insurance coverage ordeath benefit, in case something happens to you."

Joe and Sally then want to know what's the least they can pay to get that amount of insurance coverage. Like most people, they want to pay the minimum premium possibleand get the largest death benefit possible.

That's fine if the main reason you're buying the policy is for the death benefit. Butwhat most people don't realize is that buying a policy this way causes your equity in thepolicy to grow at the slowest possible rate.

It's interesting to note that the insurance company sets the minimum amount youcan pay per dollar of death benefit coverage.

The Question You Should be Asking When You Buy a Life InsurancePolicy for the Purpose of Banking On Yourself Is...

"What is the maximum amount of premium the IRS will let me pay for a givenamount of death benefit coverage?" When the policy is designed this way, your equity inthe policy grows at the fastest possible rate! Of course, this is the total opposite of howmost people buy life insurance.

And, the faster your equity grows, the more ways (and the sooner) you can use it toBank On Yourself, so you can transform interest payments into personal wealth and startgetting back the full cost of things you buy. You control the policy and the equity in yourpolicy. You don't have to wait 'til you die to benefit from it. And you don't have to wait'til you reach a certain age to get your hands on it.

The important thing to remember is that when you buy life insurance for thepurpose of Banking On Yourself, you don't have to die to win!

Howeverand most people aren't awareof thisthere's also a maximum amount of premium per death benefit dollar you can payinto an insurance policy. And that's set by theIRS. After all, the IRS knows this is a gooddeal, and if there were no limits, wealthy peoplewould be stuffing every dollar they possiblycould into these policies and never paying a

penny of tax.


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In Order to Understand the Power of thisFinancial Vehicle and Strategy, it Helps to Know a Little

about How a Life Insurance Policy Works...

Now stick with me, because I promise to keep this simple. If you read a lifeinsurance contract, you'll discover that...

You are the owner of the contract, not the life insurance companytheyare simply the administrator

The insurance company must put the money in your policy to work bylending it out or investing it, in order to produce the benefits they promisedpolicyholders

You (as the owner of the contract) outrank every potential borrower in

access to the money that must be lent or invested! You get "first right of refusal"!

The insurance company can lend the money to other places only if youthe policyownerdo not exercise your option to use the money instead. And, unlike borrowingfrom a bank or finance company...

You Can NOT Be Turned Down for a Loan andNO Credit Application is Ever Required!

And You Have Access to Your MoneyExactly When You Need It

This amounts to absolute controlover the investment and loaningfunction. You're the driving force...

you call the shots! You can borrow100% of your equity in the contractto do what's important to youbuya car, make some much-neededhome improvements, send yourchild to college, pay off yourmortgage...


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How to Guarantee You'll GrowWealthier Every YearRisk-Free...

In addition to all the benefits I've just described, certain types of life insurancecompanies pay dividends that can get very significant over time. Here's how it works...

If the policy is designed correctly , for the purposes of Banking On Yourself, the cash value of your policy is guaranteed to increase by a contractually set amount everysingle year . The guaranteed cash value increases you receive are based on the "worst-case" income and expense scenario projected by the company. When their investmentsperform better than that, you also receive a dividend, if the policy is from a dividend-paying whole life insurance company.

The Unbeatable Track Record of Dividend-Paying Whole Life Insurance Companies...

Although you are not guaranteed to receive a dividend every year, it's important tonote that, unlike stocks, most, if not all, dividend-paying life insurance companies havepaid dividends to policy-holders EVERY single year, in bull markets and bearmarkets even during the Great Depression ! (And I only recommend companies thathave paid dividends every year for at least 100 years.) Of course, as they say, pastperformance is no guarantee of future performance... but "every single year" sounds like adarn good track record, doesn't it?

And, once issued, a dividend can not be taken away from you.

And, remember your cash value is guaranteed to increase every single year, if the policy is designed properly and it's the right kind of policy. The dividend is theicing on the cake!

Compare that with the stock market. Many

investors had terrific gains during the last bull market, butmuch (and sometimes all) of that gain was taken awayfrom them in three bad years. Not to mention the stressand sleepless nights caused by that kind of volatility.

With this special kind of life insurance, you don't pin yourhopes on an unpredictable stock or real estate market and you don't

have to worry if you picked the "right" stock, fund or investment.You don't depend on luck with this approach to wealth-building.

When You Bank On Yourself Bull Market or Bear MarketYou'll Wake Up atthe Beginning of Each and Every Year with More Money than You Had the Year

Before! You Can't Go Backwards! Both your Principal and Gains Are Guaranteed!


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And now I'm going to reveal how you can increase your wealth even more , bycashing in on the kind of tax breaks that are usually available only to the wealthy...

At Last! A Tax Break Anyone Can

Benefit from... Not Just the Wealthy...

I'm going to let you in on a little secret now, so I hope you're paying close attention.A lot of folks think only the very wealthy get the great tax breaks. But the kind of little-known and specially-designed life insurance policies I've been talking about here enjoysome unique tax advantages... and you don't have to be rich to qualify for them.

According to Judge Learned Hand (US Tax Court of Appeals)...

"There are Two Systems of Taxation in Our CountryOne for the Informed and One for the Uninformed"

The IRS isn't going to go out of their way to "inform" you about this, of course. So,I'm going to "spill the beans!" Again, I promise to keep this simple...

1. According to current tax law, dividends you receive that you leave in your policyto buy additional insurance are not taxable.

As an added benefit, dividends that are left in your policy and used to buy what'scalled "fully paid-up" insurance (which is life insurance you'll never have to pay anotherpremium on), will increase your cash value in the most efficient way possible , because it'sbuying the lowest death benefit possible.

2. Dividends you take out of your policy are not taxed until they exceed the amount you paid intothe policy (your cost basis), at which point you cansimply switch to borrowing your cash values , whichyou can do tax-free .

Key Concept:

When you build a "financing system" using this specially designedkind of life insurance, make loans to yourself to finance purchases,

and pay the same amount back to your policy that you would havehad to pay to an outside finance company, then you keep what thebanking institution would have made off you. In other words...

YOU Get What the Bankers GetRich as Midas!


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3. If you pass on with a policy loan outstanding, it gets paid off by reducing yourdeath benefit by the amount of the loan. Rememberyou are buying this policy for thecash accumulation feature, not the death benefit.

In addition, if your policy is designed improperly for this strategy, or if thewrong company or product is used for it, the cash value of the policy won't grow

nearly as fast. It could even lose value, if the wrong product is used. At the end of thisReport, I'll explain how you can get a referral, to a qualified Bank On Yourself CertifiedAdvisor who's had advanced training, and how you can receive a FREE, no-obligationBank On Yourself Analysis that will show you how you could benefit from a Bank OnYourself program tailored to your unique financial situation, goals and dreams.

What If the Tax Laws Change?

Of course, tax laws can change. But the beauty of Banking On Yourself is that this Strategy stands on its

own . Even if the tax laws did change and the taxadvantages I just told you about disappeared, thisStrategy still would enable you to pocket the interest younow pay to financial institutions. And, it would stillallow you to get back the entire purchase price of big-ticket items over time! Plus it would still allow you togrow wealthier each and every year without risk orworry!

"I love Banking On Myself! We just used the money in our plan to remodelour home. By paying our Bank On Yourself policy back, instead of a credit card company, we'll have enough to remodel our home every few years from now on

without ever having to put aside another penny to do it!

It feels great to be able to buy things we want now , but know that we're still putting money away for our future. If I could turn the clock back, I would have put asmuch money into my policy as I possibly could and I would have started a lot sooner!"

- Joni Schultz, Hospital Department Director, Arizona

What this means is that it is possible to get your hands on the equity in your policy without paying a pennyin taxes, if you do it right. This is one important reason Irecommend you do this with the guidance and coaching of an advisor who has received at least one year of advanced training in the Bank On Yourself strategy. Because if your policy is designed improperly, or you access yourequity the wrong way, you could end up losing some or allthe wonderful tax benefits I've described.


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Why Haven't You Ever HeardAbout this Strategy Before?

You're probably wondering why a strategy that's so effective, so tried-and-true, andso simple is being kept under wraps. Why aren't people talking about it? Why isn't it the

"Top Story" on MSNBC?

Essentially, there are three reasons:

1. No Training Most insuranceagents, financial advisors and CPA'sas wellas the mediahave never been trained on thisuse of this little-known type of life insurance,and don't have access to the handful of companies that do offer this special type of policy.

As I mentioned before, I've specializedin working with these folks for 17 years andhave over 22,000 insurance agents, CPA's andfinancial advisors as clients. It took 12 yearsand 15,000 advisors before one of thembrought this to my attention! So, it's apretty good guess that your agent or advisorhas never heard of it either.

2. No Awareness It may surprise

you to learn that most life insurancecompanies are not even aware of this potentialbenefit of their own product!

3. No Profit Motive In order to turbo-charge and accelerate the process of helping you become your own financing source and Bank On Yourself, I recommendyou incorporate a "Paid-Up Addition Rider" (PUA) into your policy. This Rider

significantly accelerates the growth of the cash value in your plan, which is great for you .But, PUA's pay virtually no commission to the insurance agent or financial advisor,which gives them little incentive to tell you about it.

Note: This is another reason you should only do this with the help of an advisorwho has received advanced training in this strategy and is a Bank On Yourself CertifiedAdvisor. Most advisors do not have access to companies that offer the Paid-Up AdditionRider I just described, or the companies they work with do not give you the flexibility youneed and want when borrowing (or withdrawing) and paying back your PUA's. (I'll showyou how to get a referral to a qualified Bank On Yourself Certified Advisor at the end of this Report.)


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And What about the Talk Show ExpertsWho Say Whole Life Insurance is a "Lousy Investment"?

On top of that, you've got Mary Moneypants and other financial "gurus" saying,"Don't buy whole life insurance! It's a lousy investment! You should only buy terminsurance."

Here's the part these financial "gurus" don't tell you about term insurance...

Why Life Insurance Companies Love ItWhen You Buy Term Insurance Instead of Whole Life

The premium for a term insurance policy is set to increase periodically (someincrease every 5, 10 or 20 years, and some as often as every year), until eventually itbecomes so expensive that most policyholders are forced to drop it. (It has to becomemore expensive with timethe company knows you are that much closer to the pointwhere deathand a payoutis certain, unless you're Elvis!)

The life insurance companies know this. They know that very few people who buya term policy have it in force when they die. In fact, a survey by the Life InsuranceManagement and Research Associates (LIMRA), found that less than 1% of all term lifepolicies remained in force for 20 years. Another survey from Joseph Belth at IndianaUniversity found that less than 1% of all term life policies paid a claim!

And, if you decide you still want insurance after you're forced to drop your ever-more-expensive term policy, you may have become uninsurable and can no longer qualify for life insurance coverage of any kind . (By the way, being uninsurable or in poor healthdoes not necessarily prevent you from Banking On Yourself, as I'll explain in a bit.)

Reality Check : So, term insurancehas a 99% chance of being moneydown the drain, with no realfinancial benefit to you or yourfamily!

Term insurance is simply "renting" apolicy. Much like renting a home,

you'll never see the money again thatyou pay to "rent" a term insurancepolicy.


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in 4 or 5 years you'll have enough saved up to pay cash for your next car, you'll only startearning interest again incrementally .

How is this Possible!?!

Hey, I know... we've all heard that old saying, "If it sounds too good to be true, itprobably is." So I don't blame you for being skeptical about this. But there's a simpleexplanation for it...

Life insurance dividends are paid on the face amount (death benefit) of your policy,not the cash value. When you borrow your cash value, it comes out of the insurancecompany's reservesyou are simply pledging any remaining cash value in the policy, oryour death benefit, as collateral. If you pass on with a loan outstanding, it gets paid off byreducing the death benefit by the amount of the loan.

Key Concept :

Are you sitting down? Because this is going to blow your mind! Perhapsone of the most exciting and unique benefits of Banking On Yourself isthis: If you have $25,000 in your policy available for you to borrow, andyou pull it out to pay cash for a car, or to invest in something, you'llcontinue to earn dividends as though you had never borrowed a singlepenny!* Please tell me what other financial vehicle gives you this amazingbenefit? (And, unlike a brokerage margin account, they can't call yourloan or liquidate your investments for any reason.)

*Applies to policies from "non-direct recognition" life insurance companies onlymanyinsurance agents and advisors do not work with these types of companies, so be sure to consult

an advisor who specializes in the Bank On Yourself

strategy and is a Bank On YourselfCertified Advisor. (At the end of this Report I explain how to get a referral to a qualifiedadvisor with access to the right companies.)

Key Concept:

This means you can borrow your equity out of your policy, put it inthe highest paying investment you can find, or use it to buy things, and

your policy will continue earning dividends as though you neverborrowed any money out! This is the ultimate money leverage! Your

money literally does double-duty for you! (Again, this applies topolicies from "non-direct recognition" companies only.)


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Sure, you'll pay interest to the company on the cash value you borrow. But, in adividend-paying whole life policy, that interest ultimately goes to increase the value of your policy, just like the interest earnings from other investments the insurance companymakes on behalf of all of its policy owners!

And, as I've just discussed, if you buy a policy from certain life insurance

companies, called "non-direct recognition," there is no penalty or deduction at all for takingloans. (I recommend you avoid "direct-recognition" companies, which do credit you adifferent dividend on any outstanding policy loans you have.)

The Life Insurance Policy that Couldn't Stop Growing(While I was Losing My Shirt in the Stock Market)...

The guaranteed cash value increases anddividends paid by many life insurance companies oftenexceed what you can earn in a CD, money-market orsavings account. My husband and I now own 15policies between us. I bought the first one in 1992. In2002, that policy paid me an 8.2% dividend, risk-free . While I sweated over the money I (and everyoneelse) was losing in 2002 in the stock market (that wasthe year 90% of all equities lost an average of 19.22%), I made money in my insurance policy, whileI slept.

That was also a year you were lucky to get % to 2% on your money markets, CD'sand savings accounts.

I've already discussed the tax advantages of growing wealth in life insurance

policies. But, it gets even better: Myequity

in that same policyincreased by 2 times

the premium I paid that year (2002)! And that increase cannot be taken away fromme, even if the bottom falls out of the stock or real estate markets. Also, I bought thatpolicy before I discovered the Bank On Yourself strategy and it had not beenstructured to maximize the cash accumulation! The numbers would have been farbetter, if it had been designed for that purpose.

And the rate of growth on this policy keeps increasing every year. Eventually thepolicy will increase every year by 10 times my premium, then by 12 times my premium,and more. That's because this kind of policy is engineered to become more efficient every year and there's nothin' you can do about that!

Ill give you one guess what thought ran through my mind when it really hit me justhow quickly (and risk-free) the growth in a policy like this accelerates over time. Its thesame thought youre likely to have when you implement this strategy

Why the Heck Didnt I Buy More of this Stuff and Why

Didnt I Start Sooner?


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I know that what I'm talking about here requires a shift in thinking. It's differentfrom "how we've always done it." So, you may still be wondering why some of thetraditional ways we've been taught to save and invest money can't be used to accomplishthe same thing as Banking On Yourself.

For example, you may be wondering...

"Why Can't I Invest in the Stock Market, and Usethat Money to Buy a Car, Home or Other Large Purchase?

Wouldn't that Work as Well or Better?"

After all, we've all been taught that, over the long haul, staying invested in themarket gives you a good rate of return, right? The answer is simple. Over the long haul ,the market can produce a nice rate of return for you (assuming you avoid the trap the"average" investor falls in of chasing performance, as we discussed earlier). However, thevery nature of what I've been talking about in this Report requires reliability in the short-term .

I'd like to be able to buy a shiny new car every 4 years. Wouldn't you? Especiallyif you know that doing so will grow your wealth more efficiently over the long haul andthat you'll be getting back the entire purchase price over time, if you finance the car byBanking On Yourself, rather than through an outside finance company or by payingcash. There's no reason to deny ourselves these pleasures!

You need to be able to 100% count on it and know the money will always be therewhen you need it! Banking On Yourself allows you to do that. Remember that if youhad money in the stock market in 1929, and then went into the stock market crash, it took 12 years to get back to where you were. Not much help to you if you wanted to financeyour own car in 1930 or 1934, or 1938... or 1987, or 2001 or 2002... well, you get the idea.(And, as of January 1, 2007, most investors still hadn't recouped their losses from when the

bull market screeched to a halt 7 years earlier, because most were invested in tech stocksand funds, which were still more than 50% below their March 10, 2000 highs.)

Not only do you lose the predictability you need for Banking On Yourself whenyou invest in the stock market, there are tax consequences as well. You'll pay long-termcapital gains taxes or ordinary income taxes when you sell them (depending on how longyou held them). Plus, you must pay income taxes each year on the dividends or interestearned on stocks, bonds and mutual funds, if they're not held in a tax-deferred account.

Key Concept:

That means the money needs to be there when you're ready to buy a new car, every 4 years . You don't want to get to the time you had planned to

buy your next car, and find out that a pullback or correction in themarket wiped out part or all of the money you were going to use, do you?


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When Compounded Growth Equals Compounded Taxes...

And, if you're investing in the market within a tax-deferred retirement account,401(k) or IRA, if your money grows as planned , you'll pay taxes on a much largernumber when you start taking distributions. The "experts" always seem to forget to warnyou about that, when they tout the advantages of tax-deferred plans!

When You Bank On Yourself , You Can Create aTax-Free Stream of Income for Your Retirement... and You Dont

Even Have to Wait til You Retire to Get It...

Unlike traditional retirement plans, there are no government penalties forwithdrawing funds before you turn 59, no penalties for not taking distributions after youturn 70, and no government limitations on how much you can take each year.

(Note: Please don't confuse borrowing the equity in your policy with"surrendering" the policy, which terminates it and does trigger taxes. There should be noreason for you to terminate a well-designed Bank On Yourself policy.)

Equally important to consider is this: If your predictions of how fast your moneywill grow in the stock market are wrong , you'll have to work longer before you can retire,or you'll have to live on less during your retirement, or you'll be forced to go back to work.

"Okay, Why Can't I Bank On Myself using CD's, Money Marketor Savings Accounts which are Guaranteed?"

There are several key benefits of using dividend-paying whole life insurance toBank On Yourself over using CD's, money market or savings accounts:

1. If you want to get access to your money in a CD, you can only do it withoutpenalty when your CD's mature. However, you have total flexibility, control over, andaccess to, the equity in your whole life policies.

When you Bank On Yourselfthrough the special kind of life insurancepolicies I've been talking about, you avoidthese taxes. There are no taxes due on thedividends you receive and leave in yourpolicy to buy additional insurance, and notaxes due on dividends you take out of yourpolicy, until you exceed the amount youpaid for the policy, at which point you canswitch to borrowing the cash value in yourpolicy tax-freehowever and wheneveryou want, according to current tax law.


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"What About Using My 401(k) orRetirement Plan to Accomplish This?"

Okay, so maybe you have money in a 401(k) or other retirement account that allowsyou to borrow from it. And, in spite of everything I've just explained, you're stillwonderingwhy not just use your retirement account to Bank On Yourself?

Forget about the fact that the Pension Benefit Guaranty Corporation has beenwarning Congress that they may have to cut off benefit payments for retirees.

And forget about the fact that you won't earn interest on any funds you borrow.There are Four Additional Problems with Attempting

to Use Your Retirement Plan this Way:

1. Most 401(k) retirement and pension plans have strict and fairly low limits onhow much you can contribute each year. However, most people are allowed to sock awaya much larger amount into Bank On Yourself life insurance policies each year.

Each company sets a limit on how much death benefit coverage they will let youbuy, based on your income and other factors. But remember, when you buy a policy for

the purpose of Banking On Yourself

, you want to keep the death benefit low, so you canmaximize the cash accumulation feature. This enables you to put a lot more money intothe policy, before you hit the maximum death benefit the companies will allow. Once youhit that limit, you can switch to buying policies on people you have an "insurable interest"in.

2. Many retirement plans severely limit the amount you can borrow (some dontallow you to borrow at all), and what you can borrow it for. And all plans specify that you

Forget about the fact that you'regoing to pay taxes on your money inretirement accounts when you takedistributions (other than a ROTH IRA).And since the money hopefully willgrow to a substantial sum, your tax billis gonna be a whopper!

2. With CD's, money-markets and savingsaccounts, you pay income taxes on the interestearned in your account. That instantly slashes your

return. If you're in the 32% tax bracket, forexample, that means almost $1 out of every $3 youearn is going to taxes! As I just explained, you canavoid these taxes by Banking On Yourself andwithdrawing or borrowing your equity in your policythe way I've described.


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must pay that money back within 5 years, or it becomes taxable. The IRS doesn't allowyou to borrow from IRA's at all.

Trap: Whatever the amount youre allowed to borrow from your 401(k), you mustpay it back within 5 years, or it is considered taxable income and is also subject topenalties .

Trap : You are required to make minimum monthly payments on your loan... andif they stop for any reason , the IRS gives you only 60 days from the time you made yourlast payment to pay the entire loan back, or you'll have to pay taxes and penalties!

Trap : If you borrow money from your retirement plan when the market is low andthe market goes up while you're paying the loan back, you've just broken "Rule #1 of Investing" by buying high and selling low.

3. You can't start taking distributions until you turn 59, without paying penalties.(There is one way to take early distributions and not pay penalties, but it involves jumpingthrough a lot of hoops and a loss of control over how much you take each year.)

And, you must start taking distributions by the time you reach 70, whether youwant or need to, or not. There are no such restrictions when you Bank On Yourself.

4. When you pass on, the beneficiary of your retirement plan will have to payincome taxes on the money they receive (exception: "Stretch" IRA's). However, the deathbenefit on your life insurance policy will pass on to your loved ones income tax-free .

Key Concept:

You have none of these limitations and a whole lotof flexibilitybecause you are in control when using

our life insurance olicies to Bank On Yourself!

Trap : What if you become toosick or hurt to work for a while andcan't make your loan payments? As if that's not enough of a challenge to dealwith, you'll have the IRS knocking onyour door, requiring you to pay taxes

and penalties !

Trap : If you leave the company, youonly have 60 days to pay the entire loanbalance back, or it's taxed and you'll have topay penalties on it!


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It all goes back to what I talked about at the beginning of this Report. I'm not suggesting you stop investing in the market, real estate or other things. I'm not telling youto get rid of your retirement plan. What I'm saying is...

It's About Diversification

Although I own a lot of this special kind of life insuranceand plan to buy a lot moreI also have a pension plan, invest in the stock market, real estate and more. AddingBanking On Yourself to a financial plan that may include stocks, real estate and apension plan just makes sound financial sense. Its what real diversification is all about.

That said, I will tell you thisof all of the financial vehicles I've used, over time,my Bank On Yourself life insurance policies have given me the most consistent, worry-free growth on my money. My only regret is that I did not buy more sooner .

So maybe what I've been saying makes sense, but you're thinking there's not much

point in Banking On Yourself

because...

You're Going to Rely on the Equityin Your Home for Your Retirement

Many people like the feeling of security that comes with building up equity in theirhome, or owning it free and clear. Some people make extra mortgage payments, orrefinance to a 15-year mortgage, even if it makes them feel financially pinched.

And, as I mentioned, if you're like mostpeople I know who've discovered the power of theBank On Yourself strategy for growing wealthand creating financial security, that will be your only regret, too.

" After working for 25 years, I feel for the very first time that my retirement is properly squared away . I no longer have to worry about where to put my savings tochase a higher return. Bank On Yourself takes all the gut-feeling worry of, Am I

doing the right thing away , and allows me to focus on other, more fun things in my life.

Yes, I do wish Id started earlier, but I suppose it just took this long for me tomake enough of the financial mistakes Ive made to allow this strategy to reveal itself tome as the gem it really is.

Thank you so much for bringing Bank On Yourself to my attention. This is thebest financial lesson Ive ever been taught. I feel completely at peace with my decision tomove forward with this.

- Mike LaPlante, FL


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But lets take a look at the bigger picture, and then Ill show you how, byBanking On Yourself , you can achieve the same end result and the same sense of security far more efficiently.

The Four Dangers of Having "Too Much" Equity in Your Home...

Now you're probably thinking I've lost it. After all, how can having equity in yourhome be a bad thing? So let's look at four things most people don't consider, whenbuilding equity in their home...

All of those bucks that you're sending to your mortgage company (that the mortgage company is investing to make money for itself ) could be making money for you in your Bank On Yourself policy, instead.

Important: The money in your Bank On Yourself policy grows continuously and you can spend that money on anything you want and still have it working for you, as I'veexplained in this Report! In fact, you could use the equity in your policy to pay off yourmortgage, and your policy will continue earning dividends as though you never borrowed adime!

2. The equity in your home is not liquid. This is a key consideration. Have youthought about how you'll get your hands on the equity in your home, if you need or want it?Of course, you could borrow your equity, by refinancing or taking out a home equity loan.However, if you lose your job, or become disabled, you probably wont be able to qualifyfor a loanand your money will be locked up in your home!

What do you think your mortgage banker's going to say if you become disabled orlose your job, and you beg him to give you a break because you made all those extrapayments, or because you demonstrated how responsible you are by paying your mortgage

over 15 years instead of 30?

1. Payments of principal you make into your homedo not make money for you. How can that be!? Let meexplain...

Your home is going to appreciate at the exact same rate whether you own it free and clear... or you're mortgagedto the hilt. Your home won't be worth more when you go tosell it, just because you've paid your mortgage down, or paid

it off. Which means... the money you sink into your homeisn't working for you at all! Your equity is earning you a 0% rate of return!

All that begging and a quarter won't even buy you a cupof coffee. Your next payment is still going to be duein fullin 30 days. And if you can't make your payments for 90 days,the bank will foreclose on you and you'll most likely lose all theequity you sweated so hard to build up in your home!


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The other way to get at the equity in your home is to sell your house. However, youmay be in for an unpleasant surprise, because...

4. There is no tax benefit to having equity in your home. You get a tax break for the interest that you pay, but not for the principal that you pay. The faster you pay yourmortgage down, the less interest you pay, and the lower your tax benefit. Given that this is

the only real tax break consumers get for paying interest, why give it up if there's a betteralternative?

In addition, you have no guarantee that the market will be up when youre ready tosell, and you have no way of knowing how long it will take to sell.

Given these four considerations, if I told you I had a great investment for you thathas no growth, no guarantees, no tax break, and no liquidity

How Much Would You Want?

On the other hand, your Bank On Yourself policy is guaranteed to grow every single year , your equity is liquid (you can get your hands on it whenever you want or needit and no credit app is ever required), and it comes with phenomenal tax advantages ...

Plus, in Many Cases, You Can use the Equity in Your Bank On Yourself Policy to Pay Off your Mortgage in Full in an Average of 7-18 Years, if You

Choose, and Still Have the Use of (and Control Over)Your Money toSpend or Invest in Other Things!

As I mentioned, I bought my first policy in 1992 and I've bought 14 more policiessince then. Even though Ive used the equity in my policies to purchase and finance

3. The equity in your home is not

guaranteed. Real estate markets go up, but theyalso go down, as many people have been findingout. And, if interest rates go sky high, the valueof your property may go down and wipe out yourequity. It's happened in the past. Real estatemarkets are cyclical, so it could happen again inthe future.

It doesnt sound like such a good deal, whenyou think about it. But thats the problempeopledont really think it through. And it breaks my heartto see it, because these are well-intended people,trying to pay off their mortgage faster, often whilestruggling to pay bills each month and carrying creditcard balances and other debt.


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several big-ticket items, including our cars, a home theatre and our luxurytimeshares, I still have enough equity in my policies to pay off our mortgage in full,today, if I choose!

Added Bonus : If I did borrow from my policies to pay off my mortgage, I'dcontinue receiving dividends on my policies as though I never borrowed a dime!

I put the equity I was able to pull out of our home into a Bank On Yourselfpolicy. Plus, I'm putting the difference between what my monthly payment would havebeen if I'd gone the route of a 15-year mortgage, and the lower payment I ended up with,into the policy. And, over time, I will end up with far more wealth than if I had plowedthat money into my home. Plus, knowing I have the ability to pay off my home any time Iwant, using the equity in my Bank On Myself policy, makes me feel much more secureand in control than having my money locked up inside my home. Does this make sense?

Many people find that by restructuringtheir mortgage, and other aspects of their finances,they can free up more "seed money" to help fundtheir Bank On Themselves policies and reallymake their money work hard for them .

Okay, maybe you're convinced Banking On Yourself makes sense. But you'renot sure you'll be able to do it because...

You're Uninsurable or "Too Old" to Buy Whole Life Insurance

That's not a problem, for two reasons:

1. A good insurance agent knows which companies will insure you, even if you

have health problems, and may be able to find a company that will insure you, even if you've been told you're "uninsurable."

Bank on Yourself

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