... reserve account ...It struck me that I might be looking at this from a differerent perspective than Dave. I've been looking at it as a standard 50/50 asset allocation where the sub-accounts are rebalanced monthly.Maybe Dave is looking at it as two sub-accounts that are never rebalanced, and the deposits are split evenly to each. That's a reasonable way, although cetainly non-standard.Here's what these two different ways come out:Jan-73 to Jan-13$15K initial, $150/moIUL fee: 22 bps 5.5% loan rateS&P: 9 bps 50/50 asset allocation, monthly rebalanceStandard 50/50 rebalanced monthlyFinal Values:IUL: $586,000S&P 50/50: $1,023,000S&P independent half-subaccounts. $7500/$75 each, no rebalancingFinal Values:IUL: $586,000100/0 (S&P500): $750,0000/100 (10 yr Tbill): $288,000Ttl: $1,038,000**************Make a large one-time draw on Dec-1983, at the bottom of the bear market.$67,000 draw, which is about 80% of the IUL value at that time.Final Values:IUL: $322,000S&P 50/50: $581,000Withdrawn entirely from the S&P500 sub-account. IUL: $322,000100/0 (S&P500): $97,0000/100 (10 yr Tbill): $288,000Ttl: $382,000Withdrawn entirely from the T-bill sub-account. IUL: $322,000100/0 (S&P500): $750,0000/100 (10 yr Tbill): $27,000Ttl: $777,000
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