Financial Book Review: The Bank On Yourself Revolution by Pamela Yellen
“The Bank On Yourself strategy gives you a rare combination of collateral, security, liquidity and control. Your money grows by a guaranteed and predictable amount each year, and that growth improves with each year that you have it.” Pamela Yellen- “The Bank on Yourself Revolution“
Several years have passed since the publication of “Bank On Yourself”, Pamela Yellen’s first attempt to articulate to a wide audience the benefits of using specially designed comprehensive life insurance in financial planning. Since then, the ever-fluid and chimerical world of personal finance has become even more unfathomable and unpredictable.
As an authorized advisor to Bank On Yourself, I believe a sequel to the original Bank On Yourself book was long overdue. This is why I was so pleased to learn of the publication of this second more comprehensive discussion of a truly unique cash management system.
In the aftermath, The Bank On Yourself RevolutionYellen has gone to considerable effort to deconstruct the Bank On Yourself method in a way that makes it even more accessible and understandable to the average person. She makes a concise, solid, but still passionate case for the use of specially designed dividend-paying comprehensive life insurance policies as vehicles for preserving and increasing wealth. When combined correctly, he says, these policies build cash value as quickly as possible and provide unmatched security and protection.
Yellen explains that a person can make tax-free withdrawals and loans from the cash value accumulated in the policy to finance large purchases such as college tuition, cars, and cash-producing real estate. You use your policy and can pay for yourself, with the loan secured by the death benefit. This idea, which has been around in various forms for more than 150 years, is known to some as “becoming your own finance company.” Yellen does a good job of explaining the ideas behind Bank On Yourself without losing the reader in a fog of insurance hype or publicity.
Implicit in their explanations is the understanding that anyone wishing to use BOYR’s established system must do their own due diligence. It is definitely not for everyone.
In The Bank On Yourself Revolution Clearly, Yellen has put much more thought and effort into the content and design of the book, making it easier to navigate from topic to topic and keeping her comments focused and free of anything that might be perceived as excessive verbiage. She does an admirable job of making the ideas presented clear and easy to understand, even for those with little financial education.
The Bank On Yourself Revolution introduces us to some old-school financial concepts that Yellen admits aren’t “hot” but work, like the “10-10-10” money management method and the common-sense idea of not having a lot of debt. She is a strong champion of designer full life sources in both term insurance and indexed universal life (IUL) policies, always in style.
Good additions to this volume are the “conclusions” at the end of the chapters that provide the reader with small amounts of information designed to be easy to understand, retain, and implement. Yellen also includes stories from real users of the system ranging from housewives to entrepreneurs to train professional athletes. Obviously, these anecdotes have value, especially for financial professionals who are introducing the concept to their clients for the first time.
People feel better knowing that “real people” like them are succeeding with Bank On Yourself.
The Bank On Yourself Revolution is entertaining read and is a valuable contribution to a growing body of evidence supporting the wisdom of using permanent life insurance in financial planning. If you are someone who is looking for alternatives to banks, Wall Street, and finance companies, this book will help you understand one of those alternatives: Bank On Yourself.