So...How About That 8% Business

[BNTRS]

I found this super interesting when I stumbled upon it the other day:

Why you need Dow 27,000 today from BankonYourself.com

I've often been a bit dismissive of Pam Yellen as I thought her book was way too emotive and the end was too much of a sales pitch to agents to become certified BOY agents. But, I think there are some hidden gems in the blog that they maintain, and I recently discovered there's a somewhat active discussion going on over on their Facebook page.

This piece in particular got me thinking about the stock market and especially the DJIA and how it has moved historically.

This in particular speaks volumes about the booms and stagnation of the Dow. And if history repeats itself, we're due for another 10 years of going basically nowhere.

Also, it interesting to consider that the post above from Yellen's web site is almost a year old. The Dow closed today at 11,577. So, we're currently 577 points above that 1999 close.

 

[0b1kanobee]

So you have any ideas?

 

[Mr. Bill]

Oh man, that is so Dan Kennedy school of marketing:

Is there a list of Bank On Yourself Advisors?

That’s a question we get from time to time, and we have asked the Authorized Advisors if they would be willing to be listed in a public directory, so that people could contact them, interview them and so on.
They have declined to do that because they prefer to focus all of their time and efforts on designing the most effective plans for their clients and working with clients on a continuous basis to ensure they reach as many of their short-term and long-term goals and dreams as possible.
This also leaves them time to take the continuing education classes that keep them on the leading edge of this very specialized field.

Too funny, eh?

 

[BNTRS]

So you have any ideas?

Several, number one: don't get drunk on stocks, they typically won't back you up when all else fails.

But to be more specific and get into the sort of conversation I'm sure you'd be more interested in having...

All good savings plan should have a stable cash rich permanent (and I stress this) life insurance policy at their foundation. We know I prefer WL over UL, but to each his own.

I'd then like to see a stable savings plan focusing on fixed or indexed annuities or maybe bonds (bonds are tough right now so that's something I'd shy away from).

50 to 70% of the savings plan grounded in this approach isn't going knock their socks off, but is there really any arguing with the results?

They can take the remainder and gamble if they want, with someone else though, I'll let that person waste a colossal amount of time making mostly useless "investment" strategies and then having to explain why his/her predictions never came true.
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Oh man, that is so Dan Kennedy school of marketing:

Is there a list of Bank On Yourself Advisors?

That’s a question we get from time to time, and we have asked the Authorized Advisors if they would be willing to be listed in a public directory, so that people could contact them, interview them and so on.
They have declined to do that because they prefer to focus all of their time and efforts on designing the most effective plans for their clients and working with clients on a continuous basis to ensure they reach as many of their short-term and long-term goals and dreams as possible.
This also leaves them time to take the continuing education classes that keep them on the leading edge of this very specialized field.

Too funny, eh?

Like I said, she's really pitchy in my opinion, to a very lame degree. But there is some good to what she does once you cut through the crap.

 

[0b1kanobee]

All good savings plan should have a stable cash rich permanent (and I stress this) life insurance policy at their foundation.

I'm going to have to learn more about this. Where is the best place and I'm not talking TGP to learn about this?

 

[Sales71]

Well the theory of life ins as an investment never comes true. Sine cost of ins eat up most of the gain. Will not follow that. Since u can purchase much higher face amount with term.

Also what return are u going with. U have to factor inflation. Gas use to cost .99 back in 1984 now it's 3.90.

U must have a good mix of investment option to reach ur goal what ever that is.

Now if ur talking about a full blown financial plan we must look at the client in every area. Insurance, retirement accounts, education if there is kids, debt service and mortgage balance and so on.

 

[Bobrobb]

Well the theory of life ins as an investment never comes true. Sine cost of ins eat up most of the gain. Will not follow that. Since u can purchase much higher face amount with term.

Also what return are u going with. U have to factor inflation. Gas use to cost .99 back in 1984 now it's 3.90.

U must have a good mix of investment option to reach ur goal what ever that is.

Now if ur talking about a full blown financial plan we must look at the client in every area. Insurance, retirement accounts, education if there is kids, debt service and mortgage balance and so on.

You're kidding. Yeah?

 

[scagnt83]

I'm going to have to learn more about this. Where is the best place and I'm not talking TGP to learn about this?

The LI section of this forum has a lot of info, but you have to wade through all the bs to find it... pp

 

[BNTRS]

The LI section of this forum has a lot of info, but you have to wade through all the bs to find it... pp

Yeah and don't pay any attention to this one tool bag from South Carolina who talks about UL all the time...
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Well the theory of life ins as an investment never comes true. Sine cost of ins eat up most of the gain. Will not follow that. Since u can purchase much higher face amount with term.

Also what return are u going with. U have to factor inflation. Gas use to cost .99 back in 1984 now it's 3.90.

U must have a good mix of investment option to reach ur goal what ever that is.

Now if ur talking about a full blown financial plan we must look at the client in every area. Insurance, retirement accounts, education if there is kids, debt service and mortgage balance and so on.

What?


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[scagnt83]

Yeah and don't pay any attention to this one tool bag from South Carolina who talks about UL all the time...

What is UL???????????????
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Going back to the OP.

Out of the 14 largest world & domestic indices; only 3 of them have a 10 year average of over 8%
(Barclays Corporate High Yield, NAREIT equity REIT, MSCI Emerging Markets)

Notice that all of those are high risk!


Only 5 out of 14 have performed over 7% for the past 10 years.


If you had missed the 3 best trading days of 2011 (in a S&P 500 indexed MF), you would currently be down 12.7%!!!
Only 3 days out of 365 accounted for the majority of the gain!

Is this the type of consistency that makes for a secure retirement? I think not.



There are very few MFs that have averaged over 8% for the past 10 years.... even over the past 15 or 20 years.
And most of the ones that have are higher risk funds that have much more fluctuation.