TRAK’s Interest Calculator

In 2016 we added a new feature to our popular and powerful Interest Calculator tool. This new feature will allow you to illustrate an Accumulation and Distribution scenario where you can show a client how deposits over a period of time will accumulate and then illustrate how that account can create monthly income in retirement. Especially powerful with younger clients!



Welcome to this short video introducing a brand new feature we brought out this year in 2016. It’s a very powerful feature for engaging younger audiences and helping them understand what does a little bit of money really mean in retirement. Hello, my name’s Ed Dressel, President and Owner of Trust Builders. Our focus, our goal at Trust Builders is to help you engage and to help people for retirement in a meaningful way so that they understand what they’re doing and they make decisions today that help them out in the engagement process.

I’m going to come up here and start one of the calculators that’s very popular. Right before this video started I created a new client, Casey Smith, under the File menu and we’re going to run an Interest Calculator for Casey. This is a great tool for working, very popular for helping clients both individually and on a group level. The features that I’m showing you today highlight just a few of the very popular features of the Interest Calculator. The Interest Calculator’s been around a long time; it’s a light and easy tool but allows you to do a lot of analysis very quickly.

Before we get started in here, I’m going to change the appearance. I’m going to hide the calculator header and the tabs and the ribbon bar, and then we can get started. The calculation type that we’re going to do that we introduced this year is the Accumulation and Distribution and it changes the input. It’s going to illustrate both the accumulation of a deposit and the distribution of the account balance over a specified number of years. So we’re going to assume that we’re starting with a younger audience, somewhere between 25 and 35, and they have a number of years to save. Typically they’ll buy some frou-frou coffee if you live in the Northwest or some places throughout the country. Buy lunches a few times a week and we’ll talk to them about what if they could give up $50 a week and deposit that into their retirement. Is that really going to have any impact on their retirement account? So I’ll walk through here and we’ll assume an interest rate of 6% over 30 years. We’re going to change it to weekly deposit and we’ll assume that we can find $50 per person. Is that going to help them out? We’re going to change it from level deposits, we’re going to go to annual increasing by a percent. I will select that. And we’ll come in there and select an annual increase in the deposit of 3%. We’ll make the deposits to the end of the period. That $50 a week over 30 years means almost $300,000 to that individual.

What does $300,000 mean over 30 years in distributions? We have the distribution values on the bottom. We’re going to assume a 5% rate of return over the distributions. 30 years over the same thing, we’ll take monthly distributions. We can leave level withdrawals. And we can show them that that $295,000, almost $300,000, is going to produce over $1500 a month of income for them. If we wanted to add a COLA to that we can come here and say annually increase those deposits by 3% and even now it’s going to produce almost $1100 worth of monthly income with a 3% COLA over 30 years. So a really powerful tool for talking about how $50 a week in coffee and lunches is really costing them significantly in their retirement income.

We can look over at the charts and see over here the accumulation of the assets and the distribution and here we can see that they have almost $100,000 in deposits producing $600,000 worth of income. And if you want to look at the grid, here’s the grid right here, showing the accumulation of the assets and at the bottom the distributions of the assets. So $125,000 of deposits produces $625,000 worth of distribution.

A very powerful tool for connecting with especially younger audiences who may think “Why do I need to start today?” If you wanted to show them what’s the difference of waiting a year, I can come in here and we could change this to 29 years over here and show them that by waiting just 1 year it reduces the income by almost $100, $85 worth of loss if they wait one year. We can show them exactly why they need to start today and the deposits this year have the most significant impact.

My name is Ed Dressel. I’m the President and Owner of Trust Builders. We make a suite of tools for helping advisors really connect to their clients and move them forward. You can see I introduced the Interest Calculator, just one of many tools, over 20 illustration tools. It’s one of the lighter tools in TRAK but powerful in helping you engage, connect and move people forward to making decisions today. That’s our goal and we’re glad to provide that. If you’d like to download the demo of the software, you can visit our website at I appreciate your time and I wish you the best in today’s marketplace.