How do you calculate the cost of paying a life insurance premium monthly instead of annually? Get a Rate Calculator from www.truthconcepts.com. Put the annual premium in the Present Value as a negative number (which changes it to Loan Balance) since the insurance company is loaning you the annual premium and you pay them back monthly. Then make the mode “monthly” and “beg” for beginning of year since the insurance company loans you money at the beginning of the period. Put the monthly premium payment in Monthly Payment box and
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How Do You Know Which Is More Important In Building Wealth, Money Saved Or The Rate Of Return?
How do you know which is more important in building wealth, money saved or the rate of return? From www.truthconcepts.com in the calculator called Maximum Potential we can see that it is the money you save and the reduction of costs that matter, not the rate of return. We’ll look at a Period of 35 years with a personal example where you said your income was $100,000. It should increase at least 4% a year if not more and for starters we’ll set an after tax Earnings rate of 5%.
Read MoreFinancial Planning vs. Prosperity Economics
Financial Planning vs. Prosperity Economics Meets needs and goals only Maximizes every dollar Retirement oriented Abundant/Freedom oriented Product oriented (only what you buy) Strategy oriented (what you do) Accumulate money Accelerate money Rate of return focuses Opportunity cost recovery focused Institutions control your money You control your money Uncoordinated Integrated Micro (vacuum) based Macro (big picture) based Net worth is measurement Cash flow is measurement Money stays still Money moves Dollars do only one job Dollars do many
Read MoreHow 0% Financing On A Car Isn’t Always 0%!
Since we are writing this in 2009, there are some true 0% car loans in the market place due to the economy in general and the condition of the automobile industry in particular. However, knowing the whole truth about your money is critical in knowing how best to finance a car and there is much misinformation around this area. Don’t be sucked into making higher payments because it’s only 0%! What happens to car buyers is they get focused on the payment. A car dealership has a different price for
Read MoreHow Can Borrowing At 4% And Investing At 5% Be A 25% Return?
Do you know the whole truth about how interest rates work? Did you know borrowing money at 4% and investing at 5% is not a 1% difference but a 25% return? It may be a 1% spread, but the reason most people cannot identify the 25% return is we don’t typically use financial calculators (like an HP-12c ). If we do use them, it is still hard to tell what is going on because we can not see all the numbers at one time since the screen only shows the
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