PFF GPS Part 2 now breaks down where your payments go when you pay off a debt: how much covers insurance premium, interest, and principal. The demo shows that in year one, you might generate $2,900 in extra interest while returning roughly $30,000 to the insurer at their rate.
11 months of $36
Rounded to the nearest $5
$2,900
Approximately $30,000
You. Hello. This is an update to part two on the right hand side of the PFF gps. This is a new feature that we've included in all our latest GPSs to try to help the client know, you know, how much money to pay the insurance company at their rate and how much money to pay themselves and then what the difference is so they know how much is extra interest that they want to get into premium. So anyway, I'm just going to show this one part here. Let me get the mouse to work. And the, this particular debt. So what we do is once the debt is paid off, you see the red zero, just like on the previous video. But what we've incorporated is three lines below it we highlighted in yellow. We put how much of this payment is going to the segregated. And then from the segregated, how much is being sent back to the insurance company at the insurance company's interest rate. And then it calculates how much is the extra interest per month. So we have every time there's a red zero, there'll be these three lines below it. And, and underneath, down below on the spreadsheet is where we do the calculations. You can see we use the formula to get the interest payment per month. This is to the segregated, this one is the interest payment to the policy. And then this calculates the difference. And then depending on when it happens, we have to figure, okay, this is per month. So how much money is in year one. In this case, there were 11 months of $36 per month that were saved to go into premium. And this is year two and year three. So we calculate that for each particular debt that is taken over. And you know, it's taken over because there's the red zero. And the other thing that we do is we look at the whole set and calculate how much is saved totally for the whole time period. This is year one, year two, year three. And just for simplicity, we rounded off to the nearest $5. And this cell here, the rounded number is what gets captured. And I'll get to it captured in the red part right here. So in year one of this money that's going into the segregated, 2,900 is extra interest that the client wants to get into, extra premium if, if the policies will allow it without becoming a mec. Year two, the number is bigger because we've taken over more debt. And year three, it's, it's bigger in this particular case. So this is directly linked to the summation that's down below. And so this now tells the client, okay, here's how much extra interest I'm paying my segregated and how much I want to try to get into premium each year. And the other money of this 30,000 in this case was principal payment back to the insurance company. It was principal payment and interest that would be owed the insurance company at their rate. So this completes the the update to the part two and hope you find this helpful.
