With interest rates at what they are, you may be tempted to take up an offer of a 0% car loan without hesitation. However, it’s important to take all the information into consideration before you make a decision. Not all 0% car loans are actually 0%, and you may find you could have made a better decision in the end. Remember: the interest rate is only a piece of the puzzle. You must also consider how much you’ll be paying each month, and what a lower payment could do forRead More
Category: Financial Calculators
Understanding Interest Rates: Is 12% Annually the Same as 1% Monthly?
Many people have trouble understanding interest rates and how to calculate them, which can lead to an incorrect interpretation of financial information. Fortunately, TC Financial Calculators can make rate calculations simple. The Financial Calculators in Truth Concepts include Future Value, Present Value, Interest Rate, Payment, and Time Period. You’ll find them in the toolbar by clicking Calculators, then hovering over Financial in the drop-down menu. For this particular example, let’s answer the question: How do you calculate if 12% annually is the same as 1% monthly? Step 1: Grab theRead More
Can You Get Ahead with a Loan Balance?
If you’re at all familiar with whole life insurance strategies, you may think it’s possible to get ahead while carrying a loan balance. We won’t say it’s impossible (especially with the right strategies), however, we would challenge you to think a little bit deeper about the numbers at play. Let’s say your clients are earning about 6% net in an account, and they take a policy loan at 8%. You may, at first, think that it’s obvious that they won’t be able to get ahead. However, there’s a common misconceptionRead More
How to Use a Financial Calculator as a Trusted Advisor
What is the purpose of the Truth Concepts calculators? On the surface, the answer to this question may seem simple enough. The purpose is to mathematically prove financial concepts and strategies. Yet there is a deeper application and use that we find to be just as crucial. If you want to learn how to use a financial calculator as a trusted advisor, read on. The Purpose of Truth Concepts The primary purpose of Truth Concepts is to show the mathematical proof of certain financial strategies. Todd noticed that many financialRead More
Inflation-Proof Your Money: The Power of Measuring Backwards
Is it possible to completely inflation-proof your money and assets? Inflation is the “silent tax” that affects everyone’s money in some capacity. Because inflation represents the purchasing power of money, it’s an economic phenomenon that doesn’t discriminate. By this, we mean that there’s no way to come out unaffected. It is, however, possible to run (or even outpace) inflation. What does this mean? If you want your dollars to have more impact, you have to have more dollars. The answer to the problem of inflation is simply to earn moreRead More
Can Clients Actually Benefit from Inflation?
Merriam-Webster defines inflation as the continuing rise in prices, usually caused by an increasing volume of money in the economy. This means that purchasing power decreases over time. Gas and groceries are time-tested examples. In the 1950s, a gallon of gas or a loaf of bread cost under a dollar. Now, a dollar simply does not buy the same volume of goods as it used to. Inflation can, unfortunately, be considered an inevitable part of the economy. This is one reason that as financial advisors it’s crucial to look atRead More