Ferndale, WA (PressExposure) May 28, 2009 -- Many people believe they must risk their money in order to grow a sizable nest-egg. That's the conventional thinking, but a surprising new study reveals that this belief is fundamentally flawed. For the last 40 years, ordinary long-term treasury bonds have outpaced investing in the stock market. This is according to a just-released study in the Journal of Indexes (May / June 2009 issue) by Robert Arnott.
According to Pamela Yellen, President of Bank On Yourself and author of a best-selling new book by the same title, "It means that for the past four decades, the only 'rewards' investors have received for taking the extra risk of stocks and equity mutual funds are sleepless nights and broken dreams of retirement." Yellen adds, "What more proof do we need that most of us will never get decent long-term gains in the stock market?"
Other revelations in the article (titled "Bonds, Why Bother?") include...
* During the 20th century, there was a 77-year span with no price appreciation in U.S. stocks, after adjusting for inflation
* Out of the past 207 years, stocks have spent 173 years - more than 80% of the time - either faltering from old highs or clawing back to recover past losses
The author notes that 80-90% of the offerings provided to employees in 401(k) plans - which hold the majority of Americans' retirement savings - are based on equities.
As a result, he asks, "Is it any surprise that 80-90 percent of most people's assets are invested in stocks? And is it any surprise that they now feel angry and misled?"
Arnott concludes, "As investors become increasingly aware that the conventional wisdom of modern investing is largely myth and urban legend, there will be growing demand for new ideas and more choices."
"Such a choice already exists, but Wall Street, banks and finance companies are desperately hoping you don't find out about it," says Yellen. "It's called Bank On Yourself and more than 100,000 Americans already use it. Not a single one of them lost a penny in their plans when the stock and real estate markets crashed and, in fact, their plans have all continued growing safely and predictably."
Yellen says the Bank On Yourself method ( http://www.bankonyourself.com/ ) is safe because the plan grows each year by a guaranteed amount, and both principal and gains are fixed and not lost in a market decline.
"It gives you peace of mind for retirement planning, because you can predict the minimum income you can take from the plan and for how long you can take it, unlike a stock market timeline ( http://sn.im/stock-market-timeline )," Yellen says, adding, "If you don't have a clue how much your retirement account will be worth when you're ready to tap into it, you don't have a financial plan. That's called gambling, not planning."
Bank On Yourself: The Life-Changing Secret to Growing and Protecting Your Financial Future is available in book stores or by visiting http://www.bankonyourself.com
About Pamela Yellen: Pamela Yellen ( http://sn.im/pamela-yellen ) has been interviewed on numerous TV and radio programs, and has written numerous articles and been featured in hundreds of publications, including USA Today and Fortune Small Business. She is a professional speaker who has addressed more than 1,000 audiences throughout the US, Canada, Asia and Europe.
Yellen has also co-authored several books, including "Zero-Resistance Selling," which she co-authored with Maxwell Maltz, M.D., the author of the best-selling book (more than 30 million copies sold worldwide), "Psycho-Cybernetics."
She is dedicated to educating the American public about Bank On Yourself, a powerful, proven, but little-known strategy that has existed for more than 100 years.