Qualified plans like the 401k are like “sacred cows,” as Garrett Gunderson so aptly calls them in his book. Since the 401k was established, it’s been the darling of the financial media. It’s the “one-size-fits-all” solution to retirement planning… if typical finance is to be believed. However, when you take a Prosperity Economics approach, the 401k and other qualified plans fall apart. And with the TC Qualified Plan calculator, you’re positioned to share the whole truth about qualified plans. While we’re going to focus on the 401k for this demonstration,
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The Basic Limitations of Financial Planning and Forecasting
The numbers don’t lie, or so the saying goes. While this is the simplest turn of phrase, it’s not exactly the whole truth. It’s not necessarily the numbers that are the issue, but the interpretation and application of the numbers. This just so happens to be one of the primary limitations of financial planning and forecasting, in general. Financial Planning Issues to Consider The thing about the typical financial planning industry is that projections and math are used to show people idealistic scenarios without all the proper contexts. For example,
Read MoreProsperity Proof #5: The Truth About Qualified Plans
In this final prosperity proof, we’re going to cover one of the most misunderstood financial vehicles: qualified plans. Job seekers today are taught to look for companies that offer qualified plans with an employer match–“It’s free money!” Plenty of financial advisors advocate for qualified plans, and plenty of clients funnel as much money as they can into said plans. While qualified plans are not bad, they cannot be considered a savings vehicle, or even the most viable retirement plan, when you consider the facts. When you look at the facts,
Read MoreTruth Tip: Comparing Taxable vs. Tax-Deferred Accounts
We received this excellent question from a Truth Concepts user this week: Q. I am trying to do a comparison between using a qualified plan and a non-qualified plan. I understand pretty well how to use the Qualified Plan calculator, however I want to show an “apples to apples comparison” assuming everything else is equal i.e. ROR, management fee, etc., but with the client paying taxes each year on their investment gains, so that at retirement the money they have to spend is tax free. A. That will be easiest
Read MoreTruth Tip, Qualified Plan
To get spread sheet detail, turn on “term ins. and emp. cost” button. (This works whether or not you have term insurance or employee costs that you wish to add.) Close anytime (top left corner of spreadsheet) and to view again, click button again and then “inputs.”
Read MoreTruth Concepts on YouTube.com
New Truth Concepts Client Presentations! We’ve been busy loading up our Truth Concepts YouTube channel with videos for you! Now there are 15 videos featuring Todd Langford and/or Truth Concepts software. The YouTube channel houses our Truth Concepts, Truth Concepts Academy, and Summit videos, as well as several presentation videos and Banking for Life excerpts and outtakes with Todd Langford. Eight of the newer videos are from a client event at a local insurance brokerage. We recorded and “screen captured” Todd’s presentations and divided it up by topic. (FYI, Todd’s
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