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... 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/mo
IUL fee: 22 bps 5.5% loan rate
S&P: 9 bps 50/50 asset allocation, monthly rebalance

Standard 50/50 rebalanced monthly
Final Values:
IUL: $586,000
S&P 50/50: $1,023,000

S&P independent half-subaccounts. $7500/$75 each, no rebalancing
Final Values:
IUL: $586,000
100/0 (S&P500): $750,000
0/100 (10 yr Tbill): $288,000
Ttl: $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: $322,000
S&P 50/50: $581,000

Withdrawn entirely from the S&P500 sub-account.
IUL: $322,000
100/0 (S&P500): $97,000
0/100 (10 yr Tbill): $288,000
Ttl: $382,000

Withdrawn entirely from the T-bill sub-account.
IUL: $322,000
100/0 (S&P500): $750,000
0/100 (10 yr Tbill): $27,000
Ttl: $777,000
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