All Present Value dollars in our calculators are assumed to be old money—dollars that the client already has access to when beginning an illustration. If an asset is then added as a Present Value, without that money being pulled from existing dollars, data will appear skewed. When illustrating a client’s
When state tax is entered into Asset Flow, the calculator assesses a tax on Social Security. This tax is based on the benefit amount that is subjected to tax on the Federal Side. If you don’t want this to occur, leave out the state tax rate. Currently, the calculator adds the
When using the Asset Flow calculator, it is important to calculate for COLA (cost of living adjustment) when determining Social Security income. The Future Value calculator is a handy tool in this case. To set this up properly, fill in the fields as such: Present Value; the annual payment (multiply
In Asset Flow, we chose to treat each individual asset viewed as the last dollar added or withdrawn in the tax bracket (at the margin). This is because any changes made will impact the overall taxation in that regard. However, when you view all the assets in the summary page,
Do you know how much of your Social Security can be taxed? Up to 85% of Social Security Benefits can be subject to income tax, though it can be confusing to understand exactly how to calculate. First, your Modified Adjusted Gross Income (MAGI) must be calculated, which determines the amount
In the Asset Flow calculator, you can roll a tax-advantaged account into a new account (like a spouse’s account) at death. It must be done manually, as the calculator is designed to show what happens at liquidating. In Asset Flow, show the principal amount distributed at death going into another
Though the calculators are the meat of the Truth Concepts software, the tools included are an invaluable time-saving resource. In calculators such as Funding, Borrowing, Diversification, Accumulation, Distribution, and Asset Flow, the Life Insurance Values tool cuts the workload significantly. Rather than continually copying & pasting life insurance values, you
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”
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.”
To enter in an interest only loan in the real estate analysis calculator, set the months to “3000.”