It's that time of the year again when most people's thoughts are focused on one of our least favorite topics – taxes.

That's why I thought you might appreciate a little relief – both comic and financial. (Bank On Yourself has numerous tax advantages I'll explain in a moment.)

Let's start with the comic relief first – a few snippets of advice and wisdom from humorist Dave Barry:

Question: Tax day is here. Is it too late to save on our tax returns? If not, what can still be done?

Answer: The key is to avoid common taxpayer mistakes, such as letting the IRS know how much money you made, what your name is, or where you live.

Question: Some people consider playing lotteries a key part of a financial plan. What's your view?

Answer: People who buy Lotto tickets at least have some slim hope of winning, unlike people who, for example, invest in stocks.

Question: You describe saving for retirement as challenging but essential. How can we ensure our golden years will pass comfortably?

Answer: The key to eliminating retirement uncertainty is to plan carefully, save as much as possible, invest wisely, and then, at age 65, get hit by a bus.

Of course, Bank On Yourself is a safe and proven 100-year-old method of building your nest egg predictably, and without the nail biting and sleepless nights of stocks, real estate and other investments.

Beats the heck out of Dave Barry's suggested retirement plan, don't you think? (Strange thing – one person actually DID write me to tell me he thought his only hope was making sure he died before he ran out of dough.)

It's Been Said There are Only Two Things that
Are Certain in Life: Death and Taxes

But what they DON'T mention is that, according to Judge Learned Hand (US Court of Appeals):

"There are TWO systems of taxation in our country – one for the informed and one for the UNinformed."

I'm going to "spill the beans" here, so you can join the ranks of the informed. (To make my stuffy attorneys happy, let me remind you I am not an accountant or CPA. I have, however, done extensive research into this topic and verified the details with several CPAs.)

According to current tax laws, there are MANY advantages to Bank On Yourself that most people aren't aware of, including:

1. You get back every penny of capital you put in – tax-free AND you can also access the growth in a Bank On Yourself plan with little or no tax consequences, if you do it correctly. (Caution: Don't do this without the guidance of a trained, knowledgeable advisor, or you may end up losing these benefits.)

Contrast this with tax-deferred 401(k)s and traditional "qualified" pension and retirement plans (not including Roth plans). All of the distributions you take are taxable. And, if your plan grows as you had hoped, you'll be paying taxes on a MUCH larger number!

What Direction Do You Think Tax Rates
Will Go Over the Long Term?

If you answered "down," I've got a Rolex watch I'll sell you for ten bucks. Given our country's staggering budget deficit, aging demographics, skyrocketing medical expenses, and the impending bankruptcies of Social Security and Medicare, most experts are predicting taxes can only go up.

Keep in mind that if you are in the 32% tax bracket, you'd need to pull out $147,058 each year from a tax-deferred retirement plan, in order to equal $100,000 you take from a Bank On Yourself plan.

2. When you pass on, the beneficiary of your traditional retirement plan will have to pay income taxes on the money they receive (exception: "stretch" IRAs). However, the full value of a Bank On Yourself plan will pass on to your loved ones or favorite charities income-tax free, under current tax law. That will typically be an amount many times greater than the current value of your plan.

3. Bank On Yourself gives parents of college-bound children an edge, too: The equity in your plan does not count against you for the purposes of judging whether you qualify for college financial aid or scholarships. The same amount of assets in regular savings accounts, 529 plans, UGMA accounts, stock market accounts or real estate could make your youngster ineligible.

4. The income you take from a Bank On Yourself plan is not considered "ordinary income," and thus does not count against your Social Security and overall taxes.

5. If you're a business owner or professional, you may be able to finance business equipment and cars using a Bank On Yourself plan, and get a tax write-off for the interest and depreciation (consult a Bank On Yourself Authorized Advisor and professional tax advisor first).

6. There are also tax write-offs if you use the equity in your plan to invest elsewhere.

Perhaps You're Wondering if Bank On Yourself Would Still be
an Effective Strategy if the Tax Laws Changed?

The answer is a resounding "yes."

Here's why…

The beauty of Bank On Yourself is that it stands on its own. Even if the tax laws were to change and all the tax benefits I just told you about disappeared, this strategy would STILL give you MANY other advantages, including:

1. Neither your principal nor your gains are lost when the market crashes. That's why not one of more than 100,000 people who use Bank On Yourself has lost a single penny in their plans. In fact, their plans have continued to grow – safely and predictably.

2. You can use Bank On Yourself to recapture every penny you pay for your cars, vacations, business equipment, a college education and other major purchases!

3. You could recapture tens or even hundreds of thousands of dollars of interest you would otherwise pay to banks and financial institutions over your lifetime.

4. You could spend or invest your money, and still have it working for you, growing as though you never touched a dime of it. (Note – only a few companies offer this benefit and meet all the other qualifications that make your plan grow fast, while giving you flexibility.)

5. Your plan grows by a guaranteed amount every year. This growth is not only guaranteed, it's exponential, meaning it gets better every year simply because you stuck with it, rather than jumping from one investment, stock or mutual fund to another.

6. You could predict the minimum income you can take from your plan in retirement each year, and for how long you'll be able to take it.

7. You can move closer to your financial goals and dreams every year, with no skill, luck or guesswork required to do so. It's the ultimate financial security blanket in both good times and bad.

There Are Many Other Advantages and
Benefits of Bank On Yourself I Haven't Mentioned

Which brings me to an important point. Frustrated by all the ignorance and misinformation out there about Bank On Yourself, I rolled out a "Challenge." It's very simple: I will pay $100,000 to the first person to show they use a different financial product or strategy that can match or beat Bank On Yourself.

If you're still skeptical, I encourage you to take the Challenge and compare your BEST saving or investing strategy against the 18 key advantages and guarantees of Bank On Yourself at:

So, while the conventional wisdom may say the only two things certain in life are death and taxes, Bank On Yourself can help you with both.

Author's Bio: 

As a consultant to financial advisors, author and financial security expert, Pamela Yellen investigated more than 450 savings and retirement planning strategies before learning about Bank On Yourself. This approach uses specially designed dividend-paying cash value whole life insurance policies to create secure savings plans for families who want to protect their financial future. Pamela spent five years investigating and implementing the Bank On Yourself method for her own family before offering it to others as a secure and proven alternative to the risk, volatility and unpredictability of other savings plans. She has helped train 200 Bank On Yourself Authorized Advisors throughout the US and Canada to help their clients implement this strategy properly. Pamela is the author of BANK ON YOURSELF: The Life-Changing Secret to Growing and Protecting Your Financial Future. Learn more at