Category: Automobile Purchases

Automobile Purchases and Opportunity Cost

Have you ever tried explaining a concept like opportunity cost to a client that just doesn’t click? Chances are, the answer is yes. As financial professionals, it’s easy to fall into a routine because we understand the principles. For a client, however, this could be their FIRST introduction to a concept. So how do you demonstrate a concept in a way your client can understand? Our last post discussed opportunity costs, and why the concept is crucial to your client’s finances. The difficulty lies in the education of opportunity costs—it

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Should I Borrow Against My Life Insurance Policy?

“Should I borrow against my life insurance policy?” Are you ever asked that question? I bet you are. Recently we conducted an annual review with a client.  This client is a transfer client.  They moved to our town about 8 years ago.  About the same time, their other advisor retired so we were lucky.  The conversation was very informative and because of the Truth Concepts calculators, the whole truth was easily demonstrated.  Let’s join the conversation partly through the review….. “I am going to purchase a new car this summer,”

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The Myth of Zero Percent Financing for Cars (John & Jane Jones Pt. 2 of 9)

Both Jane and John Jones were smiling as they walked into my office for the second meeting with them.  The first meeting had gone well and I was excited to meet with them. After a few minutes of catching up and pleasantries, I asked John, “If you were talking to a good friend and they asked what our office was doing for you, what would you tell them?” John was contemplative for a moment and then started to speak. “Well the first thing I would tell them is that you

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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

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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

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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.  

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