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

Read More## 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 from a bank and help the client understand the best place to borrow money. Let’s look at this out over a 30 year time frame, so

Read More## Truth Tip on Diversification

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.

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 Tip on Distribution Calculator

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

Read More## How do I tell if my Real Estate deal is a “good one”?

You’ve got to learn how to analyze the ROI of a real estate deal! Inside www.truthconcepts.com software is a one page Real Estate Analysis Calculator that enables you to put in simple information and get a ROR on your invested dollars. It does require you to set a time frame and you’ll want to know some detail. So let’s look at a $200,000 deal that we actually bought for $200,000. Remember the price and the value are not always the same. We’ll identify $5000 for closing costs, a land value (since only

Read More## How can I get an amortization schedule?

How can I get an amortization schedule? We’ll use the Loan Analysis calculator in the www.truthconcepts.com software to print a 48 month amortization schedule for a $35,000 loan to be paid back at 6.5%. The picture below only shows until month 24, but the rest is there below in the actual software when you click the scroll bar. Next, we’ll select the from the Alternate Payback section a button to the right of Annual Loan Rate to see what happens if we paid the loan back at 10% instead of

Read More## Truth Tip Definition of Additional Income

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.

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## Financial Calculators Tutorial

Financial Calculators Tutorial by Norman Baker: Here is a short tutorial on the financial calculators in Truth Concepts. Future Value, Present Value, Payment, Interest Rate and Time Period Calculator. I can size the calculator by moving my cursor to the edge bottom or side and stretching. I can make it as big as I want to or reduce to an icon. I can memorize the short cut keys. Rate Calculator: We’re looking for a future value of $1,000,000 as hypothetical suppose we have a $100,000 of cash to start

Read More## The Whole Truth About Qualified Plans

Welcome to this tutorial on the Qualified Plan Calculator inside the Truth Concepts Software. What Todd will be going over below is how to use the calculator to show the whole truth around this arena. Could be a 401k plan, an IRA, a SEP IRA, simple, the 403b, Profit Sharing Pension Plan, anything that falls under the government’s domain in the Qualified Plans. This calculator will tell the whole truth about the money inside this plan. You can view the visual tutorial by clicking on the Tutorials tab on title menu

Read More## Steps for the First Truth Concepts Meeting with a Client

Bold italics are the client’s answers I’m glad we get some time together today. We are going to be using software to numerically prove the truth about how money works as it grows and to discover the most efficient way to get your money to work as hard as it can. Before we begin I have a few questions. If we were meeting here 3 years from today, what has to have happened for you to feel pleased with your progress? I’d like to have my money working harder for

Read More## Truth Tip Qualified Plan

The Truth Concepts Qualified Plan calculator gives a graphic overview of the whole truth about qualified plans. It shows clients why not maxing out their qualified plan may be the best strategy. In this calculator the Rate of Return box on top right toggles On and Off.

Read More## Truth Tip Accumulation

The Accumulation Calculator shows the effectiveness of money growing (taxable, tax deferred, tax deductible and/or tax free) and it has multiple variable payment and withdrawal columns, the ability to vary the earnings rate, and to add term insurance and other costs. In this calculator you can create an exact copy of existing information currently in the calculator by pushing the “Duplicate” button on the top left. PINK box means column showing but no #’s. YELLOW box means #’s but no column showing. BLUE box means #’s in the column and its

Read More## Truth Tip Loan Analysis

Truth Concepts Loan Analysis calculates amortization schedules and the benefit of paying back loans under various scenarios and different rates and compare two loans for deductible and non-deductible loans. Here is a tip for the Loan Analysis Calculator: Always put the lower interest rate payback first in the “Annual Loan Rate” box as that reflects the actual loan information, then put in the alternate rate, time period or payment amount in the “Alternate Payback” panel on the right of each “loan box”. Click “Period Number” Box to change from sequential

Read More## 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 the right of the clear button. Right Click on the 5 “Loan/WD” buttons at the top to re-title them for example: 1. Cars 2. Wedding 3. Child’s Credit

Read More## Truth Tip Funding

The funding illustration allows you to compare life insurance illustrations (with or without loans) to an alternate investment. For this calculator, you can: Toggle off or on the “Interest Rate on Savings Account to Match PLI” at bottom left corner.

Read More## Truth Tip All Calculators

All calculators: to switch from positive to negative numbers or vice-versa, highlight the numbers to change in one column and right click, select change sign. To put the same # or formula in multiple cells, enter the # or formula in the top cell, highlight the cells you want filled starting w/ that top one, select ALT + DOWN ARROW or right click and select “fill down”. Anywhere there are cells underlined in blue inside the spreadsheets you can enter numbers or formulas in place of what is there,

Read More## 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. Take a $100,000 account earning 6% over 20 years. Future Value: $320,714.

Read More## Truth Tip All Calculators

Financial calculators: switch from annual to monthly mode or any other mode and it will ask you if you want to adjust the existing amounts to match. Pushing the “TOP” button: causes the calculator to stay on top of anything you are doing. Double clicking on any of the labels for the inputs in the calculator brings up that (other) financial calculator.

Read More## How Can We Prove a 15% Flat Tax is the Most Efficient?

Let’s use a Cash Flow Calculator from www.truthconcepts.com to tell the whole truth about what happens to an account when it gets taxed. We’ll put in $20 in 1913, the year the tax system started. We’ll show the account earning 20% per year. We can see below that the account has $798,784,476 (that’s $798 million) in it. This assumes no taxes or management fees were taken out during this time. If we adjusted the account for inflation, assuming a 4% annual rate, it would have $18,502,442 ($18 million) in

Read More## How to Calculate the Lost Opportunity Cost of the Typical way to Educate Kids.

How to Calculate the Lost Opportunity Cost of the Typical way to Educate Kids. A college education that cost $30,000 per year in today’s dollars with a 6% inflation for a 4 and a 6 year old will remove $2,187,493 from the parents wealth by the time they are 68 years old. How? The actual cost of the school plus the opportunity cost of the money removed from the parents’ estate assuming it was earning 5%. We’ll use a Cash Flow Calculator from www.truthconcepts.com to tell you the whole truth

Read More## How To Get One Dollar To Do Many Jobs

First let’s define what a job is. Any time a dollar buys an asset, pays an insurance premium, reduces tax, increases cash flow, leverages itself, improves protection, recaptures opportunity cost, improves liquidity, recovers control, enables tax benefits, builds confidence, gains movement or lowers restrictions, that dollar is doing one job. And in many products it can do 2 or 3 (products are things you buy). In many strategies it can do 5 or 6 additional (strategies are things you do.) So many people limit their prosperity potential by having

Read More## Calculating Internal Rate of Return

How do you calculate the internal rate of return on an investment when the cash flows vary and you can’t use a typical financial calculator that only functions with the same stream of payments, not a varying stream? For example, you invest in an oil well where you contribute $100,000 the first year and the second year there is a $20,000 capital call (meaning you contribute $20,000 more). Then in the third year, there wasn’t any income but starting in the fourth year, you received the following stream, $30,000, $25,000,

Read More## How To Figure Out If 12% Annually Is The Same As 1% Monthly?

How do you figure out if 12% annually is the same as 1% monthly? First take a Future Value Calculator on “annual” and put in $100,000 at 12% for 1 year, and it shows the FV to be $112,000. Then take another Future Value Calculator set on “monthly” and put in $100,000 at 12% for 12 months, and it shows the FV to be $112,683. Most banks compound monthly, a few savings and loans compound quarterly, yet it is common to express interest rates

Read More