I'm going to make a very bold statement that I can – and will – back up: Americans have been brainwashed into believing they must accept risk, volatility, and unpredictability to grow wealth and have a comfortable lifestyle in retirement.

But don’t fall for it! There are proven and time-tested ways to grow a substantial nest egg – without the risk or volatility of stocks, mutual funds, real estate, and other investments.

For example, there is an asset class that has increased in value during every stock market decline and every period of economic boom and bust for more than a century.

That asset is dividend-paying whole life insurance and here’s how you can use it to combat the four biggest wealth-destroying lies Wall Street is telling you:

Wall Street Lie #1: You can come close to getting the long-term return of the overall stock market

Fact: The typical equity mutual fund investor hasn't even been able to eke out a one percent a year gain for the past 20 years, after adjusting for inflation, according to the well-respected research firm, DALBAR.

The study found that while the returns touted in fund prospectuses "are theoretically achievable, the reality is that investors are not rational, and make buy and sell decisions at the worst possible moments."

Another fact that may shock you is that, for the last 40 years, ordinary long-term treasury bonds have outpaced investing in the stock market, according to a study in the Journal of Indexes May/June 2009 issue.

Long-term treasury bonds are what grandma buys so she can sleep at night! That means that the only "rewards" investors have received for taking the extra risk of stocks and mutual funds for the past four decades are sleepless nights and broken retirement dreams.

Fight Back: A dividend-paying whole life policy grows by a guaranteed and pre-set amount every year. In addition, the growth is exponential, meaning it gets better (more efficient) every single year you have the policy, simply because you stick with it.

Furthermore, there are little-known options that can be added to the policy which turbo-charge the growth of your equity ("cash value") in the policy.

Once credited to your policy, both your guaranteed annual increases, plus any dividends you may receive, are locked in. They don't vanish due to a market correction.

Wall Street Lie #2: Rate of return matters

Fact: Wall Street would have you believe that rate of return is the holy grail of investing. But here's a revealing little quiz…

Do you think it's possible to invest $50,000, get a 25% average annual return on your money every year for four years… and end up with only the $50,000 you started with?
If you answered "no," you're in for a real surprise!

Let's assume your money increases by 100% the first year, and then goes down by 50% in the second year. But you do really well in the third year, because your money increases by 100% again. Unfortunately, however, you take a 50% hit in the fourth year.

If you add those four annual percentages together and divide by four, you have a 25% annual return.

Not bad, huh?

But let's see how much money you actually have in your account…

You started with $50,000 and your 100% increase in the first year doubled your money to $100,000. Then you lost 50% in year two, giving you a balance of $50,000.

You did great in year three, when your 100% increase doubled your balance to $100,000. But the 50% decline in the fourth year leaves you with… the same $50,000 you started with four years earlier!

Fight Back: A dividend-paying whole life policy gives you peace of mind for retirement planning, because you'll know the minimum guaranteed income you can take in retirement, and for how long you can take it.

Wall Street Lie #3: Hire an expert for better results

Fact: Eighty percent of investment advisors and mutual funds underperform the overall market – and many do so by a significant margin and with considerably more risk. (Source: The Hulbert Financial Digest, The Motley Fool)

Fight Back: Paying for "expert" advice that misses the mark most of the time is a mistake. Adding "super-charged" dividend-paying whole life insurance to your financial plan gives you guaranteed, predictable growth with no luck, skill or guesswork required to make that happen.

Wall Street Lie #4: "Saving" and "investing" are essentially the same thing

Fact: Most people today "invest to save," and as a result, have no idea what their nest egg will be worth when they plan to tap into it.

Fight Back: Don't put money you can't afford to lose into stocks, real estate or other traditional investments. Before investing, ask yourself if your money didn't grow for 20 or more years, or even went backwards, could you live with that?

Author's Bio: 

About Pamela Yellen: 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 the New York Times best-selling book, BANK ON YOURSELF: The Life-Changing Secret to Growing and Protecting Your Financial Future. Learn more at www.BankOnYourself.com.