Category: Prosperity Economics

Average Does Not Equal Actual

Average Rates of Return are often touted by financial experts, and yet simple math can show us that Average does not equal Actual. Pretend that you invested $100,000 into a mutual fund that had promised an average rate of return of 25% if you left the money alone for 2 years. In the first year it earned 100%. After the first year, the investment would look like this: In the second year, the fund earned -50% (that is a negative 50%) and so now your investment looks like this: While your

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The Top 10 Reasons NOT to BUY Equity Indexed Universal Life

By Todd Langford, www.truthconcepts.com Mt. Enterprise,Texas   The Whole Truth about Indexed Universal Life, Part 1 Why not sell (or buy) IUL/EIUL? How is it different from Whole Life? Insurance companies have put numerous pages on the front of Equity Indexed Universal Life (EIUL) illustrations that describe the issues below, but most people (by design) will not take the time to read and understand what these pages are saying.  I would encourage you to read those pages thoroughly before depending on an EIUL policy to increase your assets or protect your

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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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Favorite Links

Visit some of our favorite links as we will update the list below with our favorite links: www.401kfeesandexpenses.com    The Economic Value of Certainty-LIS Article Les McGuire   Washington Post Mensa   New Stock Market Terms   www.bigeye.com/griffin.htm scroll down for a talk by G. Edward Griffin author of The Creature from Jekyll Island   www.dalbar.com for their Quantitative Analysis of Investor Behavior reports   From Bloomberg TV- The Truth Behind Hidden Fees   You Tube Videos – Get the Whole Truth Part 1   http://www.youtube.com/watch?v=08UPQ3JaRek Part 2   http://www.youtube.com/watch?v=94eDjL4ciVE Part 3   http://www.youtube.com/watch?v=x1NPUf2Q-sw   Fee

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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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How do I tell about the Dow in 100 years?

How do I tell about the Dow in 100 years? In the year 1900 the Dow Jones Industrial Average was 65.29. One hundred years later it was 11,600. Using a Rate Calculator from Truth Concepts we can see that 65 (the calculator doesn’t round internally but it prints that way) growing to 11,600 over 100 years is 5.32%. So the Dow has averaged 5.32% over those 100 years.   What if we looked at the next 100 years? Now we use a Future Value Calculator, put 11,600 in as the

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