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Borrowing Strategy

The Myth of Zero Percent Financing for Cars (John & Jane Jones Pt. 2 of 7)

The Myth of Zero Percent Financing for Cars (John & Jane Jones Pt. 2 of 7)
Both Jane and John Jones were smiling as they walked into my office for the second meeting with them.  The first meeting had gone well and I was excited to meet with them. After a few minutes of catching up and pleasantries, I asked John, “If you were talking to a good friend and they asked what our office was doing for you, what would you tell them?” John was cont… Continue Reading

Borrowing Calculator Tutorial 9m 43s Transcript

So let’s look at something a little different here, and let’s go to the borrowing strategy, here if we take the borrowing strategy and let’s look out over 30 years, no present value dollars, let’s put in 10,000 dollar a year. Okay, so what we see over this time is $300,000   so let’s start with understanding the shoe box for just a minute and if we have this shoe b… Continue Reading

Truth Tip on Borrowing Calculator

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.… Continue Reading

Truth Tip, Borrowing Strategy 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… Continue Reading

Borrowing Strategy Calculator Tutorial

This Todd Langford  going  over the Truth Concepts calculator called the borrowing strategy.   What we are going to be showing today is the power of having the client pay themselves, just like they would the bank.  We’ll use a car loan as an example that is borrowed against the savings account and take a look at that versus marketplace loans like you’d receive fro… Continue Reading

Truth Tip Borrowing Strategy

The Truth Concepts Borrowing Strategy Calculator illustrates the principles of banking with varying interest rates strategies and money sources.  Here’s a tip for that calculator: Toggle off or on the “Future Account Value with NO Loans” by clicking on it.  Top middle also has an ROR feature that is OFF but can be turned on by clicking in the grey space to t… Continue Reading

How do I figure out if I can get ahead by earning 6% if I have an 8% cost?

How do I figure out if I can get ahead by earning 6% if I have an 8% loan? At first glance, the answer is obvious, you don’t get ahead.  However, sometimes we get confused and think that since an account (say at 6%) has an increasing balance while a loan (say at 8%) has a decreasing balance, we might be able to get ahead.  Let’s look at it to see the whole truth of the matter. T… Continue Reading