We had the privilege of conducting a Truth Training in Salt Lake City hosted by Paradigm Life. Jay Gentry of Chandler Advisors, LLC compiled his favorite quotes from the training. (Thanks Jay!) We hope you’ll enjoy (and maybe even repeat) some of these “Truth Quotes”: “Eliminate ‘government’ from our vocabulary and replace with ‘taxpayers.’ ” “#1 job of a life insurance company is to be profitable.” “FDIC money doesn’t actually exist.” “Carriers ‘earmark’ interest up front.” “Banking is simply doing the same as all other retail – they are

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## Are Your Clients READY for the Unexpected?

You work hard to prepare your clients financially, with insurance policies, savings, investments, education, and more. You may assume – along with your clients – that a life insurance policy, a will, and a durable power of attorney constitute “preparedness.” But those are just part of the puzzle. The fact is that even the people who have taken such steps usually fail to leave instructions for their loved ones about dozens of seemingly small, but essential details. When a personal emergency strikes, few people know what to actually DO in

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, All Calculators

All Calculators can have individual numbers changed inside the calculator when there is a bold blue line or a blue dotted line.

Read More## Truth Tip, Maximum Potential

You can use Max Potential to prove the value of an income stream when talking about Disability Income insurance.

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## Truth Tip, Amortization Schedule

For an Amortization Schedule on the Loan Analysis Calculator, you can switch the “Period Number” to “Start Date” by clicking on it and then your amortization schedule will have payments dates on it which you can adjust based on when you want the first payment to be.

Read More## Truth Tip, Loan Analysis

On the Loan Analysis Calculator, if you want to show skipping a payment on the loan payback, go the the middle and click the “compare” button, then you skip payments or change them on the blue lines.

Read More## Truth Tip, Distribution

You can change the “year” on the left to an “age” by clicking on “year” and typing in the age

Read More## Truth Tip, Distribution

You can toggle on the “tax payment” button on the left to have it show the “tax ratio” instead.

Read More## The Whole Truth about Indexed Universal Life, Part 2

By Todd Langford, www.truthconcepts.com Mt. Enterprise,Texas The Whole Truth about Indexed Universal Life, Part 2 Why not sell (or buy) IUL/EIUL? How is it different from Whole Life? Insurance companies have put numerous pages on the front of Equity Indexed Universal Life (EIUL) illustrations that describe the issues below, but most people (by design) will not take the time to read and understand what these pages are saying. I would encourage you to read those pages thoroughly before depending on an EIUL policy to increase your assets or protect your

Read More## The Whole Truth on Equity Indexed Universal Life Part I

The Whole Truth about EIUL Part I By Todd Langford Go here for Part Two of this blog post: https://truthconcepts.com/the-top-10-reasons-not-to-buy-equity-indexed-universal-life 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

Read More## 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 box and we’re putting in10,000 ayear into it for 30 years at the end of the time frame we’re going to

Read More## Truth Tip Loan Analysis Calculator

On the Loan Analysis calculator, you can title each of the loans (in addition to changing the title on the title bar) by right clicking on “loan 1” or “loan 2” and typing in 30 year mortgage and 15 year mortgage etc.

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 the Loan Analysis Calculator to show difference between a 15 and a 30 year mortgage payment if applied to PUA.

How do we show what the difference between a 15 and a 30-year mortgage payment would look like if applied to a PUA (paid up addition) on a life insurance policy? Using the Loan Analysis Calculator we can see that when the savings rate and loan rate are the same, the gross costs of each mortgage are identical to each other when properly measured over the same time frame. However, when the mortgage interest deduction is taken into account, the longer mortgage has less cost. In order to show the difference

Read More## Manifesto on Solutions for the College Education Dilemma

Our kids are too important to sacrifice to the status quo! Download a free version of Seth Godin’s manifesto on solutions for the college education dilemma, here is the link: https://seths.blog/wp-content/uploads/2019/05/stop-stealing-dreams6print.pdf

Read More## How do I explain the difference between Total IRR and Annual ROR on Life Values?

How do I explain the difference between Total IRR and Annual ROR on Life Values? The Total Internal Rate of Return is based on the cash value (and we also have one based on the death benefit) and it starts very low and increases over time. It usually shows a negative 100% first year because we have zero cash value in the first year but the IRR appreciates and increases over time. It is however, weighed down by the early years as IRR is a “cumulative” column as opposed

Read More## How to tell the whole truth about Direct Recognition.

How to tell the whole truth about Direct Recognition. There are two different methods insurance companies use to handle the loaned cash value — direct recognition and non-direct recognition. In a non-direct recognition company, the earnings rate on cash value is totally unaffected by any loans against cash value. In a direct recognition company, the earnings rates on loaned cash value are affected both positively and negatively when the cash value is used as collateral. Generally, the loaned cash value has a dividend rate that is a certain number of

Read More## 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.

Read More## Life Insurance Loans, Simple or Compound Interest?

The Whole Truth about Life Insurance Loans, Simple or Compound Interest? Investopedia explains Compound Interest as “The more frequently interest is added to the principal, the faster the principal grows and the higher the compound interest will be. The frequency at which the interest is compounded is established at the initial stages of securing the loan.” Investopedia explains Simple Interest by saying “Simple interest is called simple because it ignores the effects of compounding. The interest charge is always based on the original principal, so interest on interest is

Read More## Life Insurance Loans, In advance or Arrears?

Life Insurance Loans, In Advance or in Arrears? The Whole Truth An issue that is often incorrectly talked about as an advantage, is the idea that the insurance company charges a lower interest when interest is paid up front (in advance) versus at the end (in arrears). The whole truth is that there is a different factor (not a different interest rate) used to calculate the amount of up front interest that has to be paid. This factor can be calculated by reducing the Annual Interest Rate by the

Read More## Life Insurance Loans: Where does the interest go?

Life Insurance Loans: Where does the interest go? The Whole Truth: Life insurance companies charge interest when we borrow their money just like banks and credit unions and other financial institutions do. Many statements are made in the market place about how we borrow our cash value. This is incorrect. The whole truth is we borrow against our cash value, or to be more specific we borrow the insurance companies’ money and use our cash value as collateral. They charge us interest for this privilege because we have now

Read More## Gold Confiscation Requirement

A Recreation of the 1933 Gold Confiscation Requirement Document Could something like this happen again?? It’s a bit shocking to thin that less than 100 years ago, the U.S. government saw confiscation of it’s citizen’s wealth as an option! Click on the red link directly below to download a full-size PDF: —>> Gold Confiscation Requirement

Read More