How do you calculate the cost of monthly life insurance premiums instead of paying annually? The answer isn’t quite as simple as dividing by 12, because as you know, paying a premium at an annual rate actually saves you some costs. That’s why, to be more precise, we use a Rate Calculator to find the “hidden” costs” of monthly debit charges. Using the Rate Calculator to Find the Costs Once you have your Rate Calculator, put the annual premium in the Present Value as a negative number (which changes itRead More
Category: Rate Calculator
How Do You Calculate the Rate of Return on a Real Estate Deal?
One of the great benefits of using the Real Estate Calculator is that it automatically calculates the Net Cash Out, as well as the resulting Rate of Return. All you or the client must do is plug in the numbers, and you’ll see how good your deal is. However, there’s a difference between seeing the results for yourself and verifying them through your own analysis. One of my favorite ways to demonstrate this in Truth Training is using the Rate Calculator. This simple calculator allows you to plug in variablesRead More
Analyzing Interest Rates: When Is 2.99% More Than 5%?
When analyzing deals, you must pay attention to more than the interest rates alone. In the past few weeks, GM published an offer for a 2020 Escalade. The offer was either for 2.99% APR, or a $9,500 rebate. Is the offer all it’s cracked up to be? Let’s find out. The MSRP, or sticker price, of the Escalade is $76,490. The Dealer was offering it at a $1,500 discount. So $74,934. In order to get a full understanding of the difference between these two deals, we’ll use the Loan AnalysisRead More
What’s the Difference Between IRR and ROR?
Many advisors focus on the internal rate of return when analyzing a policy, but it neglects the whole truth. So what’s the difference between IRR and ROR, and why does it matter?Read More
Using the Truth Concepts App
The new Truth Concepts app has launched, providing an opportunity for anyone to make financial calculations at their fingertips. The beauty of the app is that you can use it on the go, which means you’ll have easy access to it when you’re buying a car, looking at loan options, or making other big financial decisions. This is an app that empowers anyone making financial decisions and is available to everyone. The new app carries our five basic financial calculators: Present Value, Future Value, Periods, Payments, and Interest Rates. We’reRead More
7 Blind Spots of Financial Advisors
Even a seasoned financial advisor can be vulnerable to certain blind spots within the field, what matters is recognizing and learning from these blind spots. Here we have gathered a list of the seven major areas in which advisors can falter, to save you from the same oversights. 1. Forgetting Time Value of Money As an advisor, the time value of money must be applied to every calculation, and any calculation that does not take this into account is not accurate. Every dollar has a value that increases over time,Read More