Thrifty Thinking: Questions to ask before you commit your money

Americans are stressed out by financial anxiety, according to new results of the American Psychiatric Association’s annual survey. Here's a checklist from Financial Security Expert and two-time New York Times Bestselling Author Pamela Yellen people should consider before investing their hard-earned money. 

"I’ve spent 25 years investigating over 450 financial products and vehicles,” Pamela Yellen says. “I can tell you that, though these products were sparkly and seductive on paper, 99.9% of them didn’t stand up to scrutiny.”

To protect your family’s financial future, you need to get answers to at least a few basic questions before you (and your money) jump in:

1. What is this product’s true track record over the long run? “Get performance figures verified by a third party, not claims in sales literature from sales literature.”
2. What guarantees does this product or vehicle offer? “If the answer is ‘None,’ run for the hills – unless you’re a thrill-seeker who’s prepared to lose his or her shirt.”
3. What fees are involved? “Even seemingly nominal fees can eat up much of your account value. According to the Department of Labor, fees of only 1% will devour 28% of your nest egg over 35 years, assuming a 7% annual return. But most people are paying more than 1% in fees in their 401(k)s, IRAs, and so on. The key is not to underestimate the long-term impact of fees, and to make sure you are aware of all fees you’re being charged.”
4. Who is recommending this to you? “Does your advisor have some vested interest in getting you involved in certain financial products? (And if so, did she disclose it up front?) Even if you’re dealing with someone who is financially savvy, do they really know your particular needs and situation well enough to be advising you?”

“To protect yourself and your family, I urge you to do your own due diligence before jumping on the bandwagon of any financial vehicle or product,” Pamela says. She also recommends asking these overarching questions when considering any financial product or advice:

• Will this advice or vehicle give me peace of mind and let me sleep at night?
• Will it help me get where I want to go without taking unnecessary risk?
• Will it allow me to be in charge of my money?

Pamela shares a time-tested saving strategy that allows people to answer yes to those three all-important questions. This method, known as Bank On Yourself, provides guaranteed growth, pays taxes in advance, and gives people access to their savings without restrictions or penalties whenever they need it. Most importantly, it allows people to know exactly how much money they will have upon retirement and every step of the way.

About the Author: Pamela Yellen is founder of Bank On Yourself, a financial investigator and the author of two New York Times best-selling books, including her latest, "The Bank On Yourself Revolution: Fire Your Banker, Bypass Wall Street, and Take Control of Your Own Financial Future." Pamela investigated more than 450 financial strategies seeking an alternative to the risk and volatility of stocks and other investments, which led her to a time-tested, predictable method of growing wealth now used by more than 500,000 Americans.

For more information visit her online press kit at www.pamelayellen.onlinepresskit247.com and her public site www.BankOnYourself.com.