Get rich quick plans always sound too good to be true and they usually turn out to be even an higher risk than investing in the stock market. A new book, Bank on Yourself (Vanguard Press, 2009) by financial advisor consultant, Pamela Yellen explains a financial plan called Bank on Yourself (B.O.Y.).
While the author has a reputable background as a consultant to financial advisors for over 20 years, this book reads as one long, carefully scripted infomercial. Yellen waits to explain how to finance the B.O.Y. plan until page 36 where readers find out the plan is based on an insurance policy.
The B.O.Y. Plan
Yellen uses case study after case study to show how individuals can turn their finances into financial security and personal wealth. There are fourteen chapters in the book and starting with chapter three all the way through chapter twelve are all sample stories of people using this plan.
The main case study involves a B.O.Y. advisor working with a married couple. “The kind of policy we use for B.O.Y.,” Jack began, “is a whole life insurance contract with some special features. For one thing, it has to be a dividend-paying policy. And then we add what’s called a paid-up additions rider, or PUAR, to the policy. This significantly accelerates the growth of the cash value in your plan, which is great, of course,” wrote Yellen.
The story continued with, “Jack paused for a moment as if uncertain. “I can explain how adding the PUAR makes that happen, if you want. It’s actually a pretty simple explanation.””
Eight Common Ways to Find Money for Your Plan
At the end of the book, Yellen provides eight ways to find money to feed the Bank on Yourself plan. The first four are listed below:
