The Truth Concepts Blog
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Welcome to the Truth Concepts Blog. We’re delighted you are here! You’ll find many examples and tips for using Truth Concepts in our posts, along with other helpful information you can use in your business. Have you heard about our Free Thirty-Day Trial? Click here for details. Looking for something in particular? Check out the Categories in the Menu on the right-hand side of the blog page. Click on a Category to view posts relating to that topic or Truth Concepts calculator. For example, the “Funding” category will have all posts relevant

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5 Funny Financial Literacy Videos

If you’ve attended a Truth Training, you know we like to share some videos along the way. Rather than strictly educational, we aim for some comedic relief with an honest punchline. It helps to break up the long days while still being valuable. We’ve compiled our favorite funny financial literacy videos here. That way you can share with family, friends, clients, or anyone else you can think of. In particular, we think these videos can be useful to share with clients to break the ice on tough-to-discuss topics, like college

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How to Use a Financial Calculator as a Trusted Advisor

What is the purpose of the Truth Concepts calculators? On the surface, the answer to this question may seem simple enough. The purpose is to mathematically prove financial concepts and strategies. Yet there is a deeper application and use that we find to be just as crucial. If you want to learn how to use a financial calculator as a trusted advisor, read on.  The Purpose of Truth Concepts The primary purpose of Truth Concepts is to show the mathematical proof of certain financial strategies. Todd noticed that many financial

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Truth Tip, Summary and Interpolate in Life Insurance Values

The Life Insurance Values tool (or simply Life Values) is one of the most valuable tools in the Truth Concepts suite. With it, you can upload your life insurance illustrations and use that data in other calculators such as Asset Flow, Diversification, Funding, and more.  You may not know that there are some interesting things you can do in the Life Values tool directly that may help you with your behind-the-scenes work. Using the Summary Button in Life Insurance Values Life Values allows you to input up to 6 permanent

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How to Make a Desktop Shortcut for Truth Concepts Academy

Truth Concepts Academy is an invaluable resource included in all TC 360 memberships. With TCA, you can access tutorials, training videos, and all previous monthly training calls with Todd. It’s a perfect way to brush up on your favorite calculators and keep your skills sharp. And we want to help you navigate to it with as much ease as possible by showing you how to make a desktop shortcut! Following this tutorial will help you to either create an icon for TCA on your computer’s Desktop, or add it to

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Never Retire: 5 Values to Help Clients Love Their Working Years

87 is the new 65… However, while human longevity is improving, people’s conception of retirement is not. Many people continue to operate as if 65 is the ideal age to retire. Yet this utopian ideal of retirement simply doesn’t align with reality: people are not saving enough to retire for 30+ years. That’s why we think it’s time for people to consider working with this goal: to never retire. Does it sound extreme? Without context, sure, it may seem like a farfetched idea to simply never retire. However, when you

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Inflation-Proof Your Money: The Power of Measuring Backwards

Is it possible to completely inflation-proof your money and assets? Inflation is the “silent tax” that affects everyone’s money in some capacity. Because inflation represents the purchasing power of money, it’s an economic phenomenon that doesn’t discriminate. By this, we mean that there’s no way to come out unaffected. It is, however, possible to run (or even outpace) inflation.  What does this mean? If you want your dollars to have more impact, you have to have more dollars. The answer to the problem of inflation is simply to earn more

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The Basic Limitations of Financial Planning and Forecasting

The numbers don’t lie, or so the saying goes. While this is the simplest turn of phrase, it’s not exactly the whole truth. It’s not necessarily the numbers that are the issue, but the interpretation and application of the numbers. This just so happens to be one of the primary limitations of financial planning and forecasting, in general.  Financial Planning Issues to Consider The thing about the typical financial planning industry is that projections and math are used to show people idealistic scenarios without all the proper contexts. For example,

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Should You Take Social Security Early and Invest It?

Should you take social security early and invest it? This question can come up often when helping clients secure their financial future. However, the answer is a resounding no in most cases. Taking an early social security benefit only works to remove dollars from your client’s future assets, when the future assets are less certain.  Social Security benefits can supplement income, yet should not be considered the bread and butter. In general, we recommend delaying benefits for the optimal impact and finding other ways to supplement income. This includes working

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Truth Quotes, Part 5

The time has come for another round-up of quotes from Todd Langford, and some others, that we’ve gathered during our last Truth Training and TC 360 in 60 sessions. We hope these quotes inspire you on your journey to seek the Truth, and help clients do the same with their finances. (Quotes are from Todd Langford unless otherwise noted.) Quotes on Financial Math “If the numbers are right, they don’t matter. If the numbers are wrong, they don’t matter.” “The point is, calculators can calculate numbers, but they cannot calculate

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5 Cognitive Biases in Behavioral Finance and Entrepreneurship

If you’re a financial advisor, you are also likely an entrepreneur on some level. Entrepreneurs are innovators, problem solvers, and highly motivated business people: these are just a few of the characteristics that make an entrepreneur stand out. Often, entrepreneurs are driven to stay at the cutting edge of their industry, through reading or listening to books and podcasts, or by attending summits and events. Yet in this pursuit of knowledge and growth, we can often get in our own way. That is, the cognitive biases in behavioral finance or

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6 Ways to Prepare for Truth Training in Houston

Truth Training can be an incredible time to learn the Calculators directly from Todd, as well as benefit from a room of like-minded people. It’s for this reason that we decided to include an annual Truth Training ticket with your TC 360 membership: because it gives you every opportunity to get in the room and make major progress.  We also recognize that Truth Training can still take some time and preparation, even WITH a ticket. So we want to make that prep work as streamlined as possible. That way, on

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Is Convertible Term Life Insurance Worth It?

In the life insurance space, we spend a lot of time talking about whole life insurance vs. term insurance, or whole life vs. universal life insurance. We spend so much time, in fact, that we forget to talk about convertible term insurance. As whole-life-friendly advisors, of course, we know that there’s tremendous value in that asset. However, many people are asking: Is convertible term life insurance worth it? And to that, we want to offer a resounding YES. The Importance of Human Life Value The human life value approach to

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The Human Life Value Approach and the Fallacy of “Needs Analysis”

It’s not uncommon for the Human Life Value approach to be written off as “overkill.” Clients either believe that buying insurance up to their full human life value (HLV) is simply too much money for their heirs, or the number doesn’t seem real. This approach, however, is actually incredibly important for your clients.  Consider this: Would you buy a $50,000 car yet only insure it for $30,000 because you only NEEDED a $30,000 car? No, you wouldn’t dream of doing so–you’d be shortchanging yourself.  And yet, this happens in the

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The New OCR File Converter

Introducing the newest feature to our beta software, Truth Concepts 3.0: the OCR File Converter. It’s not as complicated as it sounds. In fact, this feature may make inputting your life insurance values easier than ever. This new feature will allow you to turn pictures and scans into copyable PDFs, right from the Truth Concepts software. No more difficult formatting, or even inputting illustrations by hand simply because your PDF won’t allow you to copy. One great example of this type of file is a PDF you may get from

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IRS Rule 7702 Updates, and Whole Life Insurance

At the beginning of the year, the tax law surrounding life insurance policies was shifted. Now, as we approach 2022, all life insurance companies will be shifting new policies to reflect these changes to IRS rule 7702. We’re here to break down what’s happening, and how it will affect the business you write. MEC Limits and Section 7702 7702 refers to the section of the IRS tax codes enacted in 1984, that outlines how life insurance should be treated from a tax standpoint. The most important point of the code

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No Deals in the Life Insurance Industry

“There are no deals in the life insurance industry…” This quote, more perhaps than any other, is something we must take to heart when we work with clients. Not because it’s “sexy,” but because it’s true. The more we try to glamorize the life insurance industry, the greater disservice we do to what life insurance can do—and the more we risk confusing clients. The truth is that there’s no magic. Life insurance doesn’t grow money out of thin air, nor does it eliminate interest, or allow you to pay yourself

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Can Clients Actually Benefit from Inflation?

Merriam-Webster defines inflation as the continuing rise in prices, usually caused by an increasing volume of money in the economy. This means that purchasing power decreases over time. Gas and groceries are time-tested examples. In the 1950s, a gallon of gas or a loaf of bread cost under a dollar. Now, a dollar simply does not buy the same volume of goods as it used to. Inflation can, unfortunately, be considered an inevitable part of the economy. This is one reason that as financial advisors it’s crucial to look at

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Rising Tuition Costs: Involving Kids in the Discussion

It’s no secret that getting a college education is still widely considered the “best next step” for high school graduates. And while there’s much to be said about higher education, many families treat college as a given for their children. What’s more, they don’t consider that one day their child may not want to go to college… and that that is okay.  With rising tuition costs and crippling student debt, the more important question is: who should be at the table when discussions about education and savings are happening? What

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The Whole Truth About Direct Recognition vs. Non-Direct Recognition

When trying to explain policy loans, and Direct Recognition vs. Non-Direct Recognition life insurance companies, we like to begin with a discussion of ownership. In a mutual insurance company, policyholders are the owners of the company. Whole life insurance is not like car insurance, home insurance, or other types of property insurance where you funnel money in and may never see it again. Yet life insurance frequently gets lumped together with all other insurance by agents and clients alike.  Helping a client to understand that they’re an owner of the

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How Do You Calculate the Rate of Return on a Real Estate Deal?

One of the great benefits of using the Real Estate Calculator is that it automatically calculates the Net Cash Out, as well as the resulting Rate of Return. All you or the client must do is plug in the numbers, and you’ll see how good your deal is.  However, there’s a difference between seeing the results for yourself and verifying them through your own analysis. One of my favorite ways to demonstrate this in Truth Training is using the Rate Calculator. This simple calculator allows you to plug in variables

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The Huebner Foundation: Foundational Life Insurance Education

“There is nothing more uncertain than life, and nothing more certain than life insurance.” Solomon Huebner It’s easy to get caught up in the more exciting parts of life insurance, like the infinite banking concept. After all, it’s exciting to think about leverage and cash flow and building your own “bank.” Yet it’s important that we don’t neglect the foundation of life insurance, which is protection and certainty. Whole life insurance is foremost, insurance. And it is the only type of insurance that is guaranteed to pay out—which is one

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3 Non-Financial Assets Clients Can Pass Down

Different stages of life mean different stages of financial advice. And while many advisors do a great job of educating clients on financial products and assets, there’s something to be said about the “non-financial” assets that clients can accumulate. As an advisor, speaking with your clients about their desires can go a long way in building a financial mindset beyond dollar signs. We want to take it a step further. You can help your clients live a richer life and pass down a legacy in a way that transcends money. 

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How to Build Trust and Make Sales

Dan Sullivan of Strategic Coach recently posted on LinkedIn:  “My definition of selling is two-fold. The First part is that you intellectually engage the person you’re selling to with a future desirable result, something that would be an improvement or achievement in their life. And it’s not what you want for them—it’s what they want for themselves.  The second part is that you then enable them to emotionally commit to that goal and then to courageously take action to move forward and achieve the goal. And if you do both

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