The Truth Concepts Blog
(New to TC? Click Here!)

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

Read More

Average Does Not Equal Actual

Average Rates of Return are often touted by financial experts, and yet simple math can show us that Average does not equal Actual. Pretend that you invested $100,000 into a mutual fund that had promised an average rate of return of 25% if you left the money alone for 2 years. In the first year it earned 100%. After the first year, the investment would look like this: In the second year, the fund earned -50% (that is a negative 50%) and so now your investment looks like this: While your

Read More

Using Funding to Compare Whole Life Insurance IRR to Other Assets

Is a whole life insurance IRR comparable to other assets? Using the Funding calculator, we can actually show why the comparison takes more time and nuance than you might expect, as well as the additional benefits of a life insurance policy. Getting Prepared Since this case study is going to use the Funding calculator, it involves loading data from Life Insurance Values. To learn how to upload your own data, view our earlier post on copy and pasting illustrations or view our “Life Insurance Values” category in the blog,  Once

Read More

An Emotional Recession Is the Best Time to Grow Your Practice

The Emotional Recession Is Optional In 2023, a complex macro backdrop challenged our economy, stirring fear and anxiety, and spurring an emotional recession. This presents unique challenges and opportunities for financial advisors to retain their clients’ trust and gain clients who are seeking new answers. Yet as of Q3 2023, the financial recession has not hit. By the end of July, Federal Reserve Chair Jerome Powell stated he believes the United States will avoid the 2023 recession economists have predicted since 2022.   Regardless, the idea and threat of a recession

Read More

Can You Sell Life Insurance on a Stay-at-Home Mom or Dad?

Because we often talk about HLV as a multiple of income, this leaves a considerable demographic out of the conversation: non-working spouses. Many families choose to have a spouse at home for various reasons—to homeschool kids, save on daycare costs, and much more. Just because these spouses don’t earn an income doesn’t mean they don’t have a Human Life Value from an insurance standpoint. There are just different ways to go about this conversation. Life insurance on a stay-at-home mom or dad is just as important as life insurance on

Read More

TC Column Colors: Building a Cohesive Visual Language

In our last post, we discussed how you can now customize the color scheme of your Truth Concepts calculator. It’s important to be able to create an aesthetic you enjoy looking at, and that you feel is aesthetically easy to work with. In addition, it’s helpful to be sure that you can read all of the charts and graphs you create when using the software. We also recognized the value in having the color scheme of the numbered charts stay the same across every calculator so you can build a

Read More

The Whole Truth About Indexed Universal Life: 10 Facts About IUL

In part one of this discussion, we discussed 10 myths about IUL. Now that we’ve dissected those myths, we can get to the truth of why you shouldn’t buy (or sell) indexed universal life insurance. Insurance companies have put many pages in the front of Equity Indexed Universal Life (EIUL) illustrations that describe the issues we’re going to discuss, yet most people (by design) will not take the time to read and understand what these pages are saying. Unfortunately, this is where much of the misinformation stems from. People insist that

Read More

The Whole Truth About Equity Indexed Universal Life Insurance: 10 Myths About IUL

One of the major problems with the agents and the companies that sell EIUL (Equity Indexed Universal Life, which is what it was originally called) or IUL (Indexed Universal Life, which is what the industry is now calling it to avoid SEC scrutiny) is the gross negligence in conveying the risks to the clients. All one has to do is carefully read the full insurance illustration or proposal to find these out. The insurance companies have avoided liability by spelling out the risks in very specific, albeit confusing and overwhelmingly

Read More

Proving the Power of Savings in the Maximum Potential Calculator

The Currence App is going to be a game changer for clients and advisors alike. Not only does the app teach people how to save first using a financial “reservoir,” it positions advisors as the go-to when a client has reached their target. That means they’ll look to you to help them make money moves and create even greater protection, liquidity, and cash flow.  How Does Currence Work as the Client? When a client enrolls in Currence, they are prompted to establish a new, secure, and interest-bearing bank account. Then,

Read More

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

Read More

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

Read More

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

Read More

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

Read More

Get the Most from Truth Concepts Tools

Are you getting the most out of your Truth Concepts tools? Let’s take a tour of the tools, and how to use them to optimize the effectiveness of your illustrations. Income Tax Chart The income tax chart can be useful for several reasons. The first and most obvious use of this tool is to know which tax bracket to use for your clients. The second use is to help discuss taxes with your clients. For many, taxes are more abstract than they should be–after all, taxes aren’t in school curriculums.

Read More

Can Socialism Save Capitalism?

Bill Ackman, chairman of Pershing Square Capital Management, recently proposed an idea to “save” capitalism. Framed as a panacea for growing disillusionment with capitalism, he recommends that every child have a sum of money invested on their behalf. The idea is that an 8% annual return should make them millionaires by retirement. So is this idea viable? Can socialism save capitalism? And is it really the best way to “encourage greater financial literacy”?  Probably not.  Financial literacy is an admirable goal, yet there are a multitude of ways to reach that end.

Read More

Finding the Best Deal in Real Estate Analysis

Whether you’re an amateur or long-time veteran, a smart real estate deal always starts with research. So how do you properly analyze a real estate deal? Whether you’re looking at a residential property, or an investment, don’t go in without doing your due diligence. That’s where the Real Estate Analysis calculator comes in.  Let’s start with a real world example. A couple, after making some wise decisions about their financial strategy, had some available capital to do with what they liked. And when you’re in a position of cash, opportunity

Read More

How-To: Monte Carlo Simulations in Accumulation

The Accumulation calculator has always been particularly useful in depicting how the stock market can affect your assets, but now it’s even better. A few updates ago, Todd introduced a feature that can reverse or randomize the S&P rates, so that you can more effectively show “Monte Carlo” scenarios.  If you haven’t tried it yet, I’ll show you how.  The benefits? Not only can you back up your knowledge with how the market has performed in the past—you can demonstrate how slippery it can be to rely on chance. Because

Read More

Prosperity Proof #2: Choosing the Right Mortgage

When choosing a mortgage loan, it’s essential to look at all of the facts. Buying a home is a huge financial decision. Being equipped with the right knowledge will ensure you and your clients have the right strategy. A 15-year mortgage has the appeal of a quick payoff, but is it better than a 30-year mortgage? Some people would say yes. We’ll show you how to figure it out. In this installment of Prosperity Proofs, we’ll compare a “typical financial planning mortgage” to a mortgage in line with the Prosperity

Read More

Truth Quotes, Part 2

We published some “Truth Quotes” awhile back… comments and sayings compiled from a Truth Training (mostly Todd Langford’s). At a recent training in Salt Lake City, a new list of quotes heard at a Truth Training was compiled. Unless otherwise noted, the quote came from Todd Langford (although we don’t guarantee that he was the source of every quote!) “There is usually some basis of truth in what is said about money, but the analysis of the data is skewed.” “What should the average person do? All they can.”

Read More

With Gratitude – Remembering Norman Baker

“Computers are smart but they have no imagination.” – Norman Baker It’s been just over 6 years since we lost Norman Baker unexpectedly at the age of 73. Norman was a truly great financial advisor, our partner in “telling the whole truth about money”, the co-founder of Truth Concepts, and our friend. This month as we focus even more so on what we are grateful for, we wanted to use our blog to put the spotlight on one of “the greats” in our industry: Norman Baker. We are truly fortunate

Read More

Truth Concepts is Busting the Retirement Lies!

When you think about it, isn’t the concept of retirement just ABSURD!? It’s absurd to think that making a growing segment of our population LESS productive (through forced or expected retirements), that there will somehow be more for everyone. It’s absurd for 95% of Americans to believe they can work and save for 40 years, then expect to live off of their savings and investments – in the manner to which they’ve become accustomed – for another 20, 30, even 40 years. We know that for most Americans, the math

Read More

Do PUAs Grow Less Efficient Over Time?

As you know, in the early months and years of a whole life policy, the PUAs are more efficient than the base premium as far as generating cash value for the policy. While the base premium alone can take years to generate a positive internal rate of return where cash value is concerned, the PUAs are converted to cash value right away, which increases the efficiency of the policy overall.

However, after 5-7 years of funding a whole life policy, the impact of the PUAs appears to lessen. Illustrations of a policy funded with maximum PUAs vs. no PUAs at all show that, several years into the policy, the PUAs no longer have a dramatic affect on the internal rate of return of the policy.

Read More

Truth Tip, Tax Chart

In the upper middle of the Income Tax Chart is the “Federal Income Tax / Gross Income %”  Since this is mathematically correct but not technically accurate, you can click on it to hide. The reason it is not technically accurate is that our income tax does not change up or down based on averages but instead on last dollar earned or marginal rates.  

Read More

Life Expectancy

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

Read More

How do I tell about the Dow in 100 years?

How do I tell about the Dow in 100 years? In the year 1900 the Dow Jones Industrial Average was 65.29. One hundred years later it was 11,600. Using a Rate Calculator from Truth Concepts we can see that 65 (the calculator doesn’t round internally but it prints that way) growing to 11,600 over 100 years is 5.32%. So the Dow has averaged 5.32% over those 100 years.   What if we looked at the next 100 years? Now we use a Future Value Calculator, put 11,600 in as the

Read More

Truth Concepts Tutorial Automobile Purchase

To open the automobile purchase calculator double click on the TC icon.  This gives you a menu bar which you can move to another screen if using multiple screens or place it where is most convenient.   You can also resize calculators as you open them to view them comfortably.  To do so, click on the calculator and move cursor to bottom pull down and drag to make the box a larger size.   Select Automobile Calculator.  There are a couple ways to use this calculator:   put in value of a person’s current assets or

Read More