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## How Much Interest Do I Save By Paying My Life Insurance Premium Annually?

How do you calculate the cost of paying a life insurance premium monthly instead of annually? Get a Rate Calculator from www.truthconcepts.com. Put the annual premium in the Present Value as a negative number (which changes it to Loan Balance) since the insurance company is loaning you the annual premium and you pay them back monthly. Then make the mode “monthly” and “beg” for beginning of year since the insurance company loans you money at the beginning of the period. Put the monthly premium payment in Monthly Payment box and

Read More## How Do You Know Which Is More Important In Building Wealth, Money Saved Or The Rate Of Return?

How do you know which is more important in building wealth, money saved or the rate of return? From www.truthconcepts.com in the calculator called Maximum Potential we can see that it is the money you save and the reduction of costs that matter, not the rate of return. We’ll look at a Period of 35 years with a personal example where you said your income was $100,000. It should increase at least 4% a year if not more and for starters we’ll set an after tax Earnings rate of 5%.

Read More## Financial Planning vs. Prosperity Economics

Financial Planning vs. Prosperity Economics Meets needs and goals only Maximizes every dollar Retirement oriented Abundant/Freedom oriented Product oriented (only what you buy) Strategy oriented (what you do) Accumulate money Accelerate money Rate of return focuses Opportunity cost recovery focused Institutions control your money You control your money Uncoordinated Integrated Micro (vacuum) based Macro (big picture) based Net worth is measurement Cash flow is measurement Money stays still Money moves Dollars do only one job Dollars do many

Read More## How 0% Financing On A Car Isn’t Always 0%!

Since we are writing this in 2009, there are some true 0% car loans in the market place due to the economy in general and the condition of the automobile industry in particular. However, knowing the whole truth about your money is critical in knowing how best to finance a car and there is much misinformation around this area. Don’t be sucked into making higher payments because it’s only 0%! What happens to car buyers is they get focused on the payment. A car dealership has a different price for

Read More## Human Life Value And The Fallacy Of “Needs Analysis”

Would you buy a $50,000 car yet only insure it for $30,000 because you only NEEDED a $30,000 car? NO! and yet the life insurance industry does this all the time with people by completing a “needs analysis” to determine how much life insurance you “need”. YOU don’t “need” any, but you family may. However, trying to figure out how much THEY need is an exercise in futility. Oh, and the thought that single people don’t NEED life insurance? It’s as correct as saying they aren’t worth anything. So, how

Read More## How Can Borrowing At 4% And Investing At 5% Be A 25% Return?

Do you know the whole truth about how interest rates work? Did you know borrowing money at 4% and investing at 5% is not a 1% difference but a 25% return? It may be a 1% spread, but the reason most people cannot identify the 25% return is we don’t typically use financial calculators (like an HP-12c ). If we do use them, it is still hard to tell what is going on because we can not see all the numbers at one time since the screen only shows the

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