Category: Prosperity Economics

5 Cognitive Biases in Behavioral Finance and Entrepreneurship

If you’re a financial advisor, you are also likely an entrepreneur on some level. Entrepreneurs are innovators, problem solvers, and highly motivated business people: these are just a few of the characteristics that make an entrepreneur stand out. Often, entrepreneurs are driven to stay at the cutting edge of their industry, through reading or listening to books and podcasts, or by attending summits and events. Yet in this pursuit of knowledge and growth, we can often get in our own way. That is, the cognitive biases in behavioral finance or

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What is Velocity Banking and Does It Work?

What is velocity banking? Velocity banking goes by many names and is a much-debated concept by both financial advisors and their clients. So what is velocity banking? Is the velocity banking strategy a good idea for your clients? And where’s the numerical proof?  Fortunately, the Truth Concepts calculators are primed to tell this story and give you the whole truth about velocity banking as any velocity banking calculator really should–no gimmicks, just numbers. What is Velocity Banking? People typically employ a velocity banking strategy to pay down mortgages faster. Unfortunately,

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No Deals in the Life Insurance Industry

“There are no deals in the life insurance industry…” This quote, more perhaps than any other, is something we must take to heart when we work with clients. Not because it’s “sexy,” but because it’s true. The more we try to glamorize the life insurance industry, the greater disservice we do to what life insurance can do—and the more we risk confusing clients. The truth is that there’s no magic. Life insurance doesn’t grow money out of thin air, nor does it eliminate interest, or allow you to pay yourself

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3 Non-Financial Assets Clients Can Pass Down

Different stages of life mean different stages of financial advice. And while many advisors do a great job of educating clients on financial products and assets, there’s something to be said about the “non-financial” assets that clients can accumulate. As an advisor, speaking with your clients about their desires can go a long way in building a financial mindset beyond dollar signs. We want to take it a step further. You can help your clients live a richer life and pass down a legacy in a way that transcends money. 

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How to Build Trust and Make Sales

Dan Sullivan of Strategic Coach recently posted on LinkedIn:  “My definition of selling is two-fold. The First part is that you intellectually engage the person you’re selling to with a future desirable result, something that would be an improvement or achievement in their life. And it’s not what you want for them—it’s what they want for themselves.  The second part is that you then enable them to emotionally commit to that goal and then to courageously take action to move forward and achieve the goal. And if you do both

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The Truth About Whole Life Insurance Taxation

Tax language—you’ll often hear talk about tax loopholes, tax breaks, tax shelters. All have a negative implication and show a fundamental misunderstanding of why tax advantages exist in the first place. Whole life insurance taxation is another beast altogether. With whole life insurance, I often hear people talk about how it’s tax free, which is equally misleading. While the death benefit is tax free and there are ways of accessing cash value without causing a taxable event. To say it’s entirely tax free is incorrect.  And yet (outside of one area)

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