Category: Prosperity Economics

Can You Save More with a 30-Year Mortgage, Refinanced Every 10 Years?

What’s the major reason that people want to have their house paid off? In most cases, people fear a scenario where they can’t pay their mortgage, so they spend more money up front. Too often, this puts them in the scenario they were trying to avoid. It all comes down to control, and a 30-year mortgage simply gives you more control.  We’re going to run an experiment here, and see how you can actually save more money in your own pockets. Setting Up in Loan Analysis To begin, pull up

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Retirement: How 87 is the New 65

How much do you really know about retirement? It’s commonly practiced throughout the world that, at a certain age, it’s time to leave the workforce. Yet do you know why it exists, or how it came to be? And does retirement as we perceive it even work anymore?  The Beginning of Retirement as We Know It The roots of modern retirement can be traced back to 1881, and Otto Von Bismarck. The Prussian prime minister posited an idea—government-backed support for the older members of society. This was a radical idea

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Can Socialism Save Capitalism?

Bill Ackman, chairman of Pershing Square Capital Management, recently proposed an idea to “save” capitalism. Framed as a panacea for growing disillusionment with capitalism, he recommends that every child have a sum of money invested on their behalf. The idea is that an 8% annual return should make them millionaires by retirement. So is this idea viable? Can socialism save capitalism? And is it really the best way to “encourage greater financial literacy”?  Probably not.  Financial literacy is an admirable goal, yet there are a multitude of ways to reach that end.

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Debunking the Myth of the Policy Loan

It’s critical that, as advisors, we maintain the integrity of the trade by representing our products acurately. Let’s analyze the myth of the policy loan.

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How-To: Monte Carlo Simulations in Accumulation

The Accumulation calculator has always been particularly useful in depicting how the stock market can affect your assets, but now it’s even better. A few updates ago, Todd introduced a feature that can reverse or randomize the S&P rates, so that you can more effectively show “Monte Carlo” scenarios.  If you haven’t tried it yet, I’ll show you how.  The benefits? Not only can you back up your knowledge with how the market has performed in the past—you can demonstrate how slippery it can be to rely on chance. Because

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Tackling Fear (And Taxes): 4 Steps to Controlling Your Mindset

There’s a lot going on this season that can feel overwhelming—not only is there fear and anxiety surrounding COVID-19, but we’re seeing a tumultuous stock market. AND it’s tax season.  With fear on the minds of many, it’s important to assuage that fear wherever possible. We’ll use tax season as an example since it hits close to home: The home office deduction. To this day, there are still accountants that will encourage entrepreneurs not to take the home office deduction—usually because they’re worried that it will raise red flags.  The

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