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URL:  http://boards.fool.com/what-do-you-need-the-insurance-company-for-30460792.aspx

Subject:  Re: Retirement, college, and Obamanomics Date:  1/1/2013  9:10 PM
Author:  Dwdonhoff Number:  71179 of 75335

What do you need the insurance company for?

Ultimately boiled down, just 2 things;
1) the superior new money safe return rate from their old money positions, (about 6.5% @ insurance companies, versus 1% DIY,) to anchor the high growth leg of the trade, and
2) the much higher allowable contribution limits on inbound tax-sheltered capital (over IRS qualified schemes,) and no timing nor amount demands nor restrictions on tax-free funds distributions.

A distant #3 reason;
3) the best performing index blends require bank-traded, non-retail option spreads... you can't get them done at CBOE, and a DIY investor is extremely unlikely to have the volume & capacity to get executions through the bank structured-options trading desks.

Other than that, Mrs. Lincoln, you can DIY... you just can't meet performance (due to #1.)

Cheers,
Dave
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