Category: Borrowing Strategy

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.

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Truth Tip, Borrowing Strategy Calculator

The descriptions of the 4 “loan/withdrawal” source drop downs are as follows: ACT CASH: removing money from the account via withdrawl ACT LOAN:  borrowing against the account itself ALT LOAN:  borrowing against another asset outside of the account MKT LOAN:  borrowing from the market place, home equity, car dealership etc

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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

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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

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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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