On the Borrowing Calculator, just left of the first loan, there is a blank white space where you can place your mouse and it will switch to a hand. If you click on this, you’ll see the IRR on the entire deal you are looking at on that calculator.
The Life Expectancy tables in the Truth Concepts Calulators “Tools” section show the AVERAGE number of years a particular person will live. You can choose the age, male/female, standard/preferred, smoker/non-smoker and joint/single. Then remember that the number of years you see in the L.E. column is an average. For example, when a 35 year old male, preferred, non-smoker turns 65, there are 20.78 years of his life remaining on average. This means 50% of the people will live longer than 20.78 years and 50% of the people will live less than 20.78 years.
When in Financial Calculators, Double Click on the word of the second calculator you want and it will come up. For example, if you have the Rate Calculator up and now you want Future Value, just click on “Future” inside of the Rate Caclulator and you’ll get the Future Value Calculator.
Additional Income Definition: “Net after taxes but before qualified plan deduction”. For example, if someone is earning $150,000 they have $30,000 of mortgage interest deductions and $10,000 of charitable deductions, then Additional Income is $110,000 for the Qualified Plan Calculator and if they are putting $15,000 into their QP, then Additional Income is $95,000 for Accumulation and Distribution Calculator. Another way to put this is “gross taxable income minus deductions plus qualified plan contribution”. For example: $150,000 of gross income minus $30,000 of deductions plus $16,500 of qualified plan contribution means you’d put $136,500 in the “additional income” box.
Want to increase your productivity by 30%? Purchase a second monitor so you can use two screens with your computer. You’ll want to have a video card for a lap top or a USB to VGA adapter…then select properties and “extend windows” onto that second screen so you can run your illustration software on one screen and the Truth Concepts calculator on the other.
Two screens make presentations more effective, save delays on jumping between applications which add up to alot of time when you repeat them multiple times per day. With dual displays, your mouse sweeps from one screen to the other, allows for multitasking and side by side comparisons. A second screen is a cost effective, easy way to boost productivity.
When importing the values from the tool to the Internal ROR calculator, take note that the IRR calculator AUTOMATICALLY adjusts the number of years for the illustration period. This is because the values in the IRR calculator are all beginning of year and the values on the illustration are all end of year.
For example, you’ll see in your Life Insurance Values a table running 30 years, but it will show up as only 29 years under the IRR calculator.
The descriptions of the 4 “loan/withdrawal” source drop downs are as follows:
ACT CASH: removing money from the account via withdrawl
ACT LOAN: borrowing against the account itself
ALT LOAN: borrowing against another asset outside of the account
MKT LOAN: borrowing from the market place, home equity, car dealership etc
When working with the Distribution Calculator, once you’ve pushed either the “Interest Only” or “PayDown” button, it turns blue (meaning it is on) and puts the correct withdrawal amount in the withdrawal field. Then, if you make a change to the Earnings Rate, Illustration Period, or Present Value, it will automatically re-calculate the Withdrawal amount. If you press the button again (no color) it will turn off the automatic function and subsequent changes to other fields will have no impact upon the Withdrawal amount. This can be helpful if you want to calculate a Withdrawal amount based upon a certain Earnings Rate, Illustration Period, and/or Present Value but then see the effects of varying those items and keeping the same Withdrawal amounts.
For example:If You want to do a Paydown on the account for the first 20 years and then do something else for the next 20 years. You would calculate the Paydown (by pressing the PayDown button) using “20″ in the Illustration Period. Then, press the PayDown button again (turning it off) and then change the Illustration Period to 40. You will see the account being consumed in the first 20 years. You could then show additional income from year 21 to 40 from other sources (such as Life Insurance withdrawals) by inputting that information after pressing the “PLI Inputs” button.
In order to replace the Annual Earnings Rate column with the Market History, click the Earnings Rate button on the top left first, then copy and paste the Market History into the Annual Earnings Rate column.
Remember to cut off the term premiums by filling in the Year to Cancel that comes up in the middle of the page after you’ve put in your Term Insurance DB.
When running a 41 year analysis, say from 65 to 105, yet you want a paydown for only 20 years, se the illustration period to 20, click the paydown button, then click it again (turns it off) then change your illustration period to 40 so you can see the 20 year paydown. Then, in the Other Net Income section you could add Reverse Mortgage Income or Dividend Income from age 86 to 105.
Definition of “Additional Income” is “net after taxes but before qualified plan deduction”. For example, if someone is earning $150,000 they have $30,000 of mortgage interest deductions and $10,000 of charitable deductions, then Additional Income is $110,000 for the Qualified Plan Calculator and if they are putting $15,000 into their QP, then Additional Income is $95,000 for Accumulation and Distribution Calculator