My question is how do the fee-based planners get off trying to come across as holier than thou? First off, from an insurance stand point, if a fee-only planner sells a policy they will still receive a commission. Apart from one or two companies, the “fee-only planner” will get paid twice on insurance business. Charging the hourly rate is a ridiculous way increase ones compensation in regards to insurance planning.

Second, fee-based planners make MUCH more on investments than commission only sales reps. The charge a fee (typically .5% to 1.5%) EACH YEAR on assets under management. This is on top of the operating costs that the mutual fund company charges. Now if individual stocks are used the client can avoid that, but all stock portfolios are rare these days.

Finally, anyone the degrades designations such as CLU and ChFC probably does not know much about the accreditation process. I was surprised the read this comment from Mr. MBA, CFP, CPA, etc. Most with their CLU are qualified to sit for the CFP exam based on their course work to get the CLU. Those with a ChFC have taken the course work even farther. I would trust a CLU/ChFC over a MBA/CPA any day when it comes to financial planning.

Bottom line is that it is not about the products or the way the planner gets compensated that creates the problem. It is the planner. Unethical people exist in all worlds. Saying that a commission only life insurance agent that sells a lot of whole life is inherently bad because the product is “no good” or “never needed” is the approach of an ignorant person that is just trying to justify his existence in his profession by degrading others because of a lack of confidence in his own integrity.

that article actually makes no sense. The math is completely wrong. His theory is that while you save x dollars in taxes you will eventually pay x+y dollars in retirement where y is the taxes on the extra money you made. While that is true, if you dont save in a tax deffered or other retirement vehicle you not only miss saving out on X dollars in taxes you still pay x+y in the end. So

tax deffered = x+y
non tax deferred = 2x+y

Qualified plans ‑‑ the ‘grand illusion’
http://www.worldchiropracticalliance.org/tcj/2006/jul/i.htm

(Note that this is not a financial website, though I don’t know much about the author of the article, but he brings up some very interesting points.)

There are several things that Ms. Yellen says to look for in a Whole Life policy/company – Direct vs. Non-direct recognition, riders, etc.

Can you recommend a few companies and products that would work well with the Bank on Yourself concept?

Thank you, sir.

At least with a traditonal whole life contract you get contractual guarantees backed up by a regulated insurance company (I’d like to see you put your net worth up against theirs) and your beneficiaries get a tax free death benefit. Dont be so quick to knock others, any 3rd grader can do that.

Sorry, mis-clicked before I finished … now where was I? Oh yeah,

Visit a fee-only Certified Financial Planner (TM) practitioner who will give you the facts on these schemes. Pay him/her an hourly rate and you will keep your wealth working for you and not a salesman. Stay realistic, stay reasonable, stay away from scams, and you will get rich slowly and retire comfortably.

As a fee-only CPA, MBA and CFP (TM) I am appalled at the effort put into this discourse by Mr. Acevedo regarding Bank On Yourself POLICIES (yes, these are insurance policies). As any informed adult is aware, whole life insurance policies are sold, and not bought, and this is simply another scheme to sell whole life insurance and enrich the salesperson.

Mr. Kindall: a “lens” is a term coined by the self-promotional “Squidoo” site Mr. Acevedo invites his prey to visit. And you are correct sir: this concept is “completely full of BS” and they are “trying to sell something.” Something that the majority of us simply do not need: a whole life insurance policy that does nothing more than siphon assets from productive, tax-saving saving and investment opportunities into the coffers and pockets of big insurance companies and their salesforce.

“If something sounds too good to be true, it probably is.” Warning signs: 1) the salesperson has no meaningful credentials other than insurance industry education (CLU, ChFC); 2) the salesperson is commission-based and not FEE-ONLY; 3) this is a once-in-a-lifetime opportunity that the mainstream financial advisor community is too uninformed and ill-educated to pick up on, but YOU, yes only YOU, can be the smart one and get into this private club with your secret password and then gain access to the protected, for-your-eyes-only special report (I’m getting ill); 4) of course let’s bring in tax saving opportunities and mis-represent conventional retirement planning as “only tax deferred.”

The facts are that two plus two actually do equal four. Mr. Acevedo is promoting a scheme that will entice you into purchasing a whole life insurance contract (and yes, Virginia, term-life is cheaper and better … look up Low Load). You will then put your capital to work by borrowing against your home (going into debt) to in effect take your equity from one pocket and put it into another. The problem is that Mr. Acevedo and his cohorts will be dipping into that other pocket to help themselves to ever-higher insurance premium payments.

Yes, you can safely make 8-10% annual returns long-term. Yes, most retirement plan investments are “only” tax deferred BUT THAT IS THE BEAUTY: tax deferral means you have use of the money and not the Federal government who will only spend it (and certainly Mr. Acevedo will not have it to buy more gas for his Porsche). There is a wonderful mathematical concept that these salesmen conveniently avoid: the TIME VALUE OF MONEY. The money that you tax defer is at work for you making far more in LONG-TERM CAPITAL GAINS (which are taxed at a maximum of 15%) than you will ever, ever pay out in taxes. Plus you get company matches, plus Roth IRA’s grow tax free forever (including in the hands of your heirs), plus …. oh I could go on for hours… I am steaming.

This is nothing more than a get rich quick scheme, and the person getting rich is Mr. Acevedo. Do yourselves a big favor and schedule a free, one hour initial consultation with a FEE-ONLY CERTIFIED FINANCIAL PLANNER:

Might I respectfully suggest in the future you take the time to read all previous posts prior to submitting a post?

The previous posts above should have been enough to clarify your confusion; however in view of your incomprehension here I go again…

Bank on Yourself(TM) is a financial strategy offered to the general public by way of our radio ads and other marketing venues.

It is ALSO offered to the Financial Planning/Insurance industry as an alternative planning system that may be incorporated into their practice.

Only HIGHLY trained and EXPERIENCED Financial Planners and Insurance agents qualify to become Bank on Yourself(TM) Certified Advisors. Most of our current advisors have more than 20 years of Professional Financial Planning experience and most possess advanced degrees such as CPF(TM), MBA, CPA, ChFC and CLU (myself being one of the rare exceptions to this fact- I only have 6 years experience in the industry).

The radio ads ARE MOST CERTAINLY NOT designed to get anyone to “become an insurance agent”. They are designed to bring to light one very simple fact being ignored by the entire Financial Planning industry, and that is: the LACK OF CAPITALIZATION is the crux to ALL financial disarray.

I would like to advise you to go to the website you were directed to in the radio ad you heard; and enter the pass code provided to you- this will allow you to download an INVALUABLE report outlining the concept (I PROMISE there will be no information advising you to become an insurance agent!).

For another detailed overview of this strategy, provided by a Infinite Banking/Bank on Yourself(TM) CLIENT you may visit the following link which is also available on my lens:

http://www.infinitebanking.info/IBC%20-%20How%20It%20Works.pdf

There are no pop-ups, sales or gimmicks- JUST PLAIN, GOOD, SIMPLE and LIFE CHANGING information.

I hope this helps your confusion.