Archives For Paul Nick

If you want a good chuckle, watch this video:

First off, this insurance policy DID NOT have an annual return of 9.94%! It was more like 6%. It’s fine if you want to add hypotheticals in order to draw comparisons to other investments, but you can’t claim that those numbers represent YOUR return. They do not. How it is legal for them to make this claim is beyond me.

That’s not all…

Pay particular attention to the part where Paul Nick addresses “what if you invested in the stock market instead…” (10:17 in the video).

NOTE: He mentions a few times in the video that he’s “bringing some truth to the matter…” Gag!

He simply takes the annual price returns for the S&P 500 Index and plugs them into his spreadsheet and claims that’s what an investor would have received. HE CONVENIENTLY LEFT OUT DIVIDENDS! On top of that, he THEN adds a bogus 1% management fee (who pays 1% for an index fund) AND he taxes annual returns at 25%. His ending balance before the fees and taxes was $223,442. Take a wild guess what that number would have been had he been honest and used the S&P 500 Index Total Return?

Paul Nick's Example from Bank on Yourself

$749,628!!!!!!

That’s over $500,000 more than Paul shows in his example.

As you can see from the following graphic, DIVIDENDS MATTER!

S&P 500 Total Returns vs. Price Returns

I find it funny that he mentions dividends when showing how the insurance cash value balance grew, but left dividends completely out of the equation when he talked about the S&P 500 Index.

Here’s the deal: I know very little about the Bank on Yourself strategy. It could be the best thing since sliced bread (I doubt it). What I do know is that if the people behind it have to lie—and cling to their lies when confronted—in order to make their strategy look better, I don’t want any part of their strategy.