Category: Truth Tips

Truth Tip, Borrowing Strategy Calculator

The descriptions of the 4 “loan/withdrawal” source drop downs are as follows: ACT CASH: removing money from the account via withdrawl ACT LOAN:  borrowing against the account itself ALT LOAN:  borrowing against another asset outside of the account MKT LOAN:  borrowing from the market place, home equity, car dealership etc

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Truth Tip, Distribution

When working with the Distribution Calculator, once you’ve pushed either the “Interest Only” or “PayDown” button, it turns blue (meaning it is on) and puts the correct withdrawal amount in the withdrawal field.  Then, if you make a change to the Earnings Rate, Illustration Period, or Present Value, it will automatically re-calculate the Withdrawal amount. If you press the button again (no color) it will turn off the automatic function and subsequent changes to other fields will have no impact upon the Withdrawal amount. This can be helpful if you want to calculate a Withdrawal amount based upon a certain

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Truth Tip on Diversification

In order to replace the Annual Earnings Rate column with the Market History, click the Earnings Rate button on the top left first, then copy and paste the Market History into the Annual Earnings Rate column.  Remember to cut off the term premiums by filling in the Year to Cancel that comes up in the middle of the page after you’ve put in your Term Insurance DB.

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Truth Tip on Distribution Calculator

When running a 41 year analysis, say from 65 to 105, yet you want a paydown for only 20 years, se the illustration period to 20, click the paydown button, then click it again (turns it off) then change your illustration period to 40 so you can see the 20 year paydown.  Then, in the Other Net Income section you could add Reverse Mortgage Income or Dividend Income from age 86 to 105.  Definition of “Additional Income” is “net after taxes but before qualified plan deduction”.  For example, if someone

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How can I get an amortization schedule?

How can I get an amortization schedule?  We’ll use the Loan Analysis calculator in the www.truthconcepts.com software to print a 48 month amortization schedule for a $35,000 loan to be paid back at 6.5%.  The picture below only shows until month 24, but the rest is there below in the actual software when you click the scroll bar. Next, we’ll select the from the Alternate Payback section a button to the right of Annual Loan Rate to see what happens if we paid the loan back at 10% instead of

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Truth Tip Definition of Additional Income

Definition of “Additional Income” is “net after taxes but before qualified plan deduction”. For example, if someone is earning $150,000 they have $30,000 of mortgage interest deductions and $10,000 of charitable deductions, then Additional Income is $110,000 for the Qualified Plan Calculator and if they are putting $15,000 into their QP, then Additional Income is $95,000 for Accumulation and Distribution Calculator.

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